Toyota Production System: Beyond Large-Scale Production by Taiichi Ohno by Taiichi Ohno

Author:Taiichi Ohno
Language: eng
Format: mobi, epub, pdf
Published: 2012-02-07T15:58:05.818000+00:00

IE results in cost reductions and profit increases, I think it is meaningless.

There are various definitions of IE. A former head of the American Steel Workers' Union defined its function as that of entering a plant to improve methods and procedures and to reduce costs. And this is exactly so.

"IE is the use of techniques and systems to improve the method of manufacturing. In scope it: ranges from work simplification to large-scale capital investment plans."'

"IE has two meanings. One aims at improving work methods in the plant or in a particular work activity. The other one means the specialized study of time and action. However, this is the work of a technician. Essential y, an industrial engineer studies systematic approaches to improvements. "z I would like to add a definition from the Society for Advancement of Management (SAM), an organization that succeeded the Taylor Society: Industrial engineering applies engineering knowledge and techniques for the study, improvement, planning, and iniplenienta- tion of the fol owing: 1. method and system,

2. qualitative and quantitative planning and various standards including the various procedures in the organization of work, 3. measuring actual results under the standards and taking suitable actions.

This is al done to exercise better management with special consideration for employee welfare, and it does not restrict business to lowering the cost of improved products and services.'

I have listed various IE definitions, each saying good things, because they are useful references. However, in private business, implementing IE

effectively is not easy.

The reason I cal Toyota's industrial engineering profitmaking IE is my wish that the Toyota production system born and raised at Toyota Motor Company be comparable or superior to the American IE's business management and manufacturing system.

We are very happy that the Toyota production system has become, as I intended, a company-wide manufacturing technology directly tied to management. And, fortunately, it is extending to the outside cooperating firms as wel .

► Surviving the Slow-Growth Economy

I have said before that I calmly accept the words "slow growth. "

Over 5 percent macro-economic growth would be regarded as prosperity rather than recession, and we would consider 3 to 5 percent growth normal. Because future cycles may bring zero or negative growth, we must be prepared.

The Japanese automobile industry experienced negative growth immediately after the oil crisis and, at one time, fel into a slump. After that, however, exports improved and, compared to the sluggish state of other industries, the automobile industry alone seemed to enjoy good fortune.

The actual situation, however, is not necessarily optimistic.

Domestic demand has matured fol owing a cycle and, presently, a large demand cannot be hoped for. Export expansion wil also slow down as a matter of course. In Europe and the United States, political and emotional resistance against Japanese cars has gradual y risen. With the rising yen, the international market can also be expected to reflect a declining competitiveness of Japanese cars. Also, U. S. firms have entered into smal -car manufacturing, negatively affecting Japanese exports.

The automobile industry may have been endowed with too much good fortune.

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