Finance

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Abstract:

The case looks at how Kaizen was adopted by Toyota Motor Corporation to improve productivity and efficiency in its production systems. The case examines in detail the labor crisis faced by Toyota in the early 1990s and how the company used Kaizen to modify its assembly line and wage systems in order to make them human friendly. The case also details the concept of Kaizen and the pre-requisites for its successful implementation in an organization. | |

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Issues:

» Understand the concept of Kaizen and pre-requisites for its implementation in an organization

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Contents:

  | Page No. |

Toyota Reinvents the Need for Kaizen | 1 |

Background Note | 2 |

About Kaizen & The Toyota Experience | 3 |

The Modification | 7 |

Exhibits | 10 |

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Keywords:

Kaizen, Toyota Motor Corporation, productivity, efficiency, production systems, labor crisis, Toyota, 1990, assembly line, wage systems, human friendly, pre-requisites, successful implementation

"Human beings think our way is the best, but at Toyota, we are told we have to always change. We believe there is no perfect way, so we continue to search. The goal is to break the current condition through Kaizen."

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Toyota Reinvents the Need for Kaizen

In the early 1990s, the Japanese automobile major, Toyota Motor Corporation (Toyota) was facing acute labor shortage. The emergence of high wage jobs and a shortage of young workers due to the low birth rates in Japan in the previous two decades were the primary reasons for this. The number of women and aged people was increasing in the country's labor pool. These people avoided heavy manufacturing work. 

Toyota's strong focus on improving productivity and production efficiency over the decades had created strained work atmosphere...