Toyota's Importance

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Importance to Toyota

The Toyota Way includes was implemented for long term management to encourage team work and be sure that their values were implemented of which safety and quality being very important factors of the three. There are fourteen management principles in four broad categories that are laid out specifically in how to be guided through the growth and stability of the business. Incorporated in the Toyota Way is the Toyota Production System (TPS). The TPS, commonly referred to as the precursor of “lean manufacturing” principles, was originally called “Just-in-Time” production, and is undergirded by the philosophy that “Good Thinking Means Good Product” (Greto, Schotter, Teagarden, 2010). After the recalls of The Accelerator Crisis, Toyota found that they had strayed from their core values and needed to get back to the principles that so many other businesses were following.

Scope: Breadth of its reach

2009, Toyota had found themselves a new president, Akio Toyoda. With the decline in sales they needed someone in there with fresh ideas to get thing moving again. The company was on the verge of being the largest in the automotive industry however, with the economic crisis and company efficiencies and began working in crisis mode. They began by laying off thousands of temporary employees, cutting bonuses, and even turning down thermostats. These actions may have taken place due to the implementation of the 2005 Vision, which was a program of “Top of Construction of Cost Competitiveness for the 21st Century” which took lean manufacturing to extreme levels.  The pressure was to cut costs at every stage to cut the number of components in a car by 50%, (Greto, Schotter, & Teagarden, 2010, p. 5). 

 Toyota went even further with their program of “Value Innovation” which would make the entire development process cheaper and faster, further trimming parts, production costs, and time...