Business operation management is the engine that drives the entrepreneurial idea of a corporation. Each day, every decision made emanates from a concept of management adopted. Numerous management theories have been published and used by thousands of thousands of business entities. It is important to note that different business entities operate within unique landscapes and they face varied challenges. Consequently, they prefer customized principles and concepts of doing business. These principles are always multifaceted, influencing every aspect of management. An example is Toyota Corporation, a Japanese multinational automotive manufacturer that uses 14 customized principles of business operation management. The principles have wide ramifications on managing aspects from human resources to marketing, operation management, among other important areas. The Toyota Way by Jeffrey K. Liker is writing that explicates these principles and the reasons for continued global automobile industry dominance by Toyota Corporation. The following paper explores the 14 set principles that define Toyota’s concept of managerial approach and production system in detail.
Liker (2004) gives deep insight and understanding of the basis of the glorious success of Toyota Corporation in the automobile industry. The book also describes a raft of practical steps and ideas inherent in the principles for general business development. Among the highlights of the success of the strategies are few man-hours, high-quality products (cars) with few defects, and less inventory. For all intents and purposes, Toyota products have earned their household names in every part of the world.
The author explains that the principles are divided/classified into four sections. The first segment, long-term philosophy, has the first principle requiring the setting of long-term goals. It states that long-term goals should be set even if it is done at the expense of short-term financial aims. The goals give a sense of direction even in the face of short-term setbacks in achieving temporary objectives. It helps a firm not to deviate from its foundational aims.
The second section, founded on the idea that the right processes produce the right results, has seven principles. The first theory exposes establishing a continuous process flow to unearth the operation problems. Liker (2004) explains that the continuously flowing process is attained by the timely evaluation of the production chain and redesigning. It helps to reduce the wastages that could result from the clogged and unchecked process. Some of the wastes the principle seeks to avoid in management include an unnecessary delay in the conveyor belt, time wastage, over-processing, inventory, and so on. Evidently, fundamental strides that an entity must make towards business success are the reduction of wastages. The loopholes for leakages must be well sealed through the enhanced process management. Consequently, a firm can enjoy a competitive edge on its market.
The third principle carries a similar theme to the preceding principle. It requires the use of a pull system to manage the production process. In essence, it seeks to reduce overproduction. The strategy entails the installation of a system approach, where a mechanism is built within the system to signal the predecessor if the material is needed. Only the required amount of output is achieved. It helps regulate the wastage of the raw materials. Further, the fourth principle encourages the harmonizing of the production process rate. It requires leveling the production speed so that that there are no wide gaps in the production chain. The machines should not supersede the people controlling it. The next principle demonstrates the weight the Toyota Corporation puts on the quality of their products. The law emphasizes that one should stop the process to get the quality right. Employees are empowered to stop the process when any quality issue occurs. It could explain why the Toyota vehicles are of high quality and with little defects. The sixth principle requires striking a balance between the process chain and employee engagement. The process must be standardized through continuous improvement. Moreover, it should empower the employees to take part in the company bureaucracies.