I know they are having a few problems presently but there is an interesting article in the new APICS SMR References Sourcebook. It’s a rather large book but very useful if you are sitting the SMR exam or want a book full of Strategic principles. Here is the last part of the Toyota case study, page 28 article V-2.
“People often ask us, tell me one thing I should learn from Toyota. That misses the point. Emulating Toyota isn’t about copying any one practice; it’s about creating a culture. That takes time. It requires resources. And it isn’t easy. First, companies have no choice but to embrace contradictions as a way of life. Most enterprises stop growing because they stick to processes and practices their past successes have generated. However, old methods also lead to institutional rigidities. Companies can overcome them by trying to reach new markets or by tackling fresh challenges. Second, companies must develop routines to resolve contradictions.
Toyota uses numerous tools such as the Plan-Do-Check-Act model, the A3 reporting system, and the widely known ask-why-five-times routine. Unless companies teach employees how to deal with problems rigorously and systematically, they won’t be able to harness the power of contradictions. Third, companies must encourage employees to voice contrary opinions. Top Management must be open to criticism and hearing opposing viewpoints if they want new ideas.
Should companies try to do as Toyota does? We believe they should. Toyota’s culture of contradictions places humans, not machines, at the centre of the company. As such, the company will be imperfect, and there will always be room for improvement. In that sense, Toyota’s model mirrors human creativity. Can you say the same about your company?
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On March 14 & 15 in Sydney we will be holding a 2 Day “Breakthrough” S&OP course for senior executives.
This interactive workshop will provide you with practical tools and insights to improve your S&OP process and use the process to execute your company strategies.
Click on the link for more information.
A One Day Workshop will be held at the North Melbourne offices of apicsau on January 24, 2012. Yes, I know January is a tough time but on the other hand while customers are screaming and lost sales are occurring due to out of stock maybe it’s a great time to bring along your current strategies and review alternative approaches. Then take home this knowledge and simulate using our free software. Alternatively we can come to you and tailor the course to your company requirements.
