How Toyota Successfully Implemented Change Process Principles to Improve Production
Executive Summary
Change is about survival, change management is about modifying or transforming organisations in order to maintain or improve their effectiveness. Change is especially necessary in organisations that aim to prosper in a volatile, uncertain, complex and ambiguous environment. Change is also known to be a key source of competitive advantage. This case study will focus on Toyota and how they implemented different techniques to improve their production process and working environment for their employees. The main focus in this case study will describe how they used the ‘Just-in-Time’ concept to reduce waste and upgrade the quality of its products. It will then go into describe in detail how Toyota focused the planned change into four distinct areas which are product design, process design, employee involvement and planning and control in manufacturing. Then the conclusion will sum up the strategies used by Toyota and to what degree they were successful.
CONTENTS
Executive Summary………………………………………………………………………………………………………………. 2
Introduction…………………………………………………………………………………………………………………………… 3
Total Production System (including diagram)……………………………………………………………………………………………….. 3
Product Design…………………………………………………………………………………………………………………………………….. 4
Rate of Improvement Vs Time (including graph)…………………………………………………………………………………………… 4
Process Design……………………………………………………………………………………………………………………………………….. 5
Employee Involvement (Kurt Lewis Three step change theory)……………………………………………………………………….. 5
Planning and Control…………………………………………………………………………………………………………………………………6
Conclusion……………………………………………………………………………………………………………………………. 6
Bibliog...
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The three stages of the change theory model are unfreezing, change and refreezing (Petiprin, 2015). The unfreezing process is letting go of old information and introducing change. The method to achieve unfreezing “is to increase the driving forces that direct behavior away from the existing situation or status quo. Second, decrease the restraining forces that negatively
Kurt Lewin, a social psychologist developed this theory in the early 20th century. He was the first to recognize that change should be planned and not allowed to happen by chance or haphazardly. There are three stages of change according to Lewin’s theory.
One of the change models of Organizational Development was created by Kurt Lewin. It includes three phases: unfreeze, move or change, and refreeze (Lewin, 1951, 1958). Lewin’s model recognizes the impormance of changing the people in organization and the role of top management involvement to overcome the resistance of change.
Toyota Motor Manufacturing, U.S.A. (TMM) is deviating from the standard assembly line principle of jidoka in an attempt to avoid expenses incurred from stopping the production line for seat quality defects. This deviation has contributed to the inability to identify the root cause of the problem, which has led to decreased run ratios on the line and an excess of defective automobiles in the overflow lot for multiple days. If this problem isn’t fixed quickly, an increased amount of waste will continue to be incurred and customer value will be threatened.
Since more than 40 years, Toyota Company was thinking how to develop the traditional process costing system and the production system. Some of the companies believe that the increasing of the production is a big profit, while Toyota proved the opposite. The more you increase the products out of the need of the market, the more losses you are going to gain. This kin...
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A theoretical framework provides guidance as a project evolves. The end results will determine whether the knowledge learned from implementing a project should create a change in practice (Sinclair, 2007). In this project is relied on the Kurt Lewin’s Change Theory. Burnes (2004) states that despite the fact that Lewin built up this three-step model more than 60 years prior, it keeps on being a commonly referred framework to support effective change projects. The three steps are unfreezing, moving and refreezing. Lewin decided in Step 1, unfreezing, that human conduct is held in balance by driving and limiting powers. He trusted this equilibrium should be disrupted with the end goal for change to happen (Burnes, 2004). Step 2 or moving, includes learning. Learning incorporates knowledge of what the conceivable alternatives are and proceeding onward from past practices to new practices which will...
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Its objective is to integrate people, process, and technology. Toytoa’s product development procedure is essentially different from a manufacturing process. Its backbone is not visible, but knowledge and information which are untouchable. The product development’s cycle time is much longer than hours. It usually takes weeks or even months. The production chains are non-linear and multi-directional. Workers are no longer manufacturing workers but specialists with high diverse technology. This product development strategy is viable for Toyota. This is because this strategy does help Toyota to prolong the life cycle of current product. For instance, Toyota Camry is a very successful current product which is prolonged its life. Camry has been made since 1980s. Camry is set at an middle-high level of family veichle. After 30 years development, Camry is still very famous all over the world. This cannot be separeted by Toyota’s successful product development strategy. One of the key features of the Toyota product development system is functional engineering managers. They are primarily teachers in the Toyota system, who are the most technically competent engineers, with the highest levels of experience. Toyota’s management group is consist of high educated experts. They were all engineers and their technical excellence is very famous. But recently, Toyota’s product development system does not work very well. In
All employees of Toyota are satisfied with lower level needs, they make great wages, they have job stability, and the job sites are full of safety initiatives and well planned (Liker, 2004, p.210). Toyota also provides family benefits to help with raising children and the wellbeing and health while at work, with all these benefits employees are content and can focus on big picture ideas. Toyota promotes a strong team mood and a sense
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Toyota has implemented many different systems such as performance monitoring software, the Just in time (JIT) inventory system, electronic quality control system, communication system and information system thought out their value chain which enable to make correct decision during the manufacturing process. They have identified that having large inventories of spares cost them extensive capital and they have implemented the Just in time (JIT) inventory system which advices the suppliers the exact spares that the product line required and provides a time frame. Toyota adopted continuous learning and embraces change allowing their staff to research and innovation (Toyota
Toyota’s new structure introduced in 2003 reduced the number of directors, and introduced senior managing directors, who link management with on-site operations. This has led to prompt decision making that also reflects the opinions of on-site personnel.
In 1950s, Toyota has developed lean thinking. The Toyota Production System aspires to minimize waste and increase efficiency while at the same time enhances its product quality. From this initiative, Toyota managed to widen its competitive edge by employed fewer employees in the car production with a small number of flaw products.