What Toyota knows that GM doesn’t

[ImUrOBGYN]

(Edit: This should be in the Passing Lane. My bad.)

 

http://edgehopper.com/what-toyota-knows-that-gm-doesnt/

 

I think I'm going to go work for Toyota.

 

Do you know how many hourly jobs GM has laid off from 2006 to July 2008? Take a guess. How about 34,000? And now, they’re talking about another 5,500 layoffs. And now they’re asking you and your government for a bailout to end their troubled, outdated, low quality, wasteful production system. But, let’s not focus on fixing GM’s problems with an infusion of cash. There’s something even deeper going on here that’s really wrong.

 

OK, here’s a better question. How many hourly jobs has Toyota’s American production system laid off in the same time frame? Zero. That’s right. ZERO. How? Isn’t Toyota experiencing the same slow down in auto sales as GM is? Yes, it is. And yes, Toyota has halted production at its Texas and Indiana plants for the past 3 months. But the 4,500 people who work at those plants have not been laid off. What!?!?! How? Why?

 

 

The answer: Toyota has a special culture, deep-rooted values, and respect for their workforce. Toyota’s tradition is to NOT lay off employees during hard times. This tradition hasn’t really been put to the test until now. And Toyota has stuck to its guns and its values.

 

“This was the first chance we’ve really had to live out our values,” says Latondra Newton, general manager of Toyota’s Team Member Development Center in Erlanger, Ky. “We’re not just keeping people on the payroll because we’re nice. At the end of all this, our hope is that we’ll end up with a more skilled North American workforce.”

 

Interesting. But what does that last line mean? “At the end of all this, our hope is that we’ll end up with a more skilled North American workforce.” It means that while these employees were not manufacturing automobiles, they were in training. They were doing safety drills, participating in productivity improvement exercises, attending presentations on material handling and workplace hazards, taking diversity and ethics classes, attending maintenance education and taking a stream of online tests to measure and record their skill improvements. Toyota is shifted the Texas and Indiana workers temporarily to Toyota plants whose assembly lines were moving at full speed, such as the Camry assembly plant in Georgetown, Ky. In addition to all of this, the workers also spent some time painting the plants and even helped build Habitat for Humanity homes. And they were getting paid.

 

Wow! So what is this costing Toyota? The estimate is at least $50 million dollars, plus the loss of revenue of shutting down production. Why is this value and tradition worth so much to Toyota? Why would they be willing to spend $50 million rather than lay people off? It’s because Toyota believes that its people, yes, its PEOPLE are its greatest investment and its greatest asset. You hear so many companies say that, but would they really put their money where their mouths are when the rubber hits the road (no pun intended)? In Toyota’s case, the answer is yes they would.

 

So what does Toyota get out of this? When, not if, the plants return to full production, Toyota will have well trained employees on the front line, ready and able to meet the demand for their vehicles. And not only will they be well trained, they’ll be happy and motivated to work. Because Toyota is willing to go to the mat for their people, their people will be willing to do the same for Toyota.

 

The lesson here: Unlike their counterparts GM and Ford, Toyota has always taken a long-term strategic view about their employees. Toyota understands that laying off thousands of employees for slowdowns or plant retooling is counter productive. They wisely utilize the time to redistribute their workforce to understaffed plants, provide additional training for the new products, and leverage their workforce to speed the transition for newer products. Their philosophy has avoided labor disputes and staffing shortages. It has kept the company as a leader in quality and profitability over its shortsighted competitors.

 

So, the message for you in all of this: Really commit to upholding the value that your people, let me repeat that, your PEOPLE are your greatest asset. Treat them with respect and dignity. Do everything in your power and your imagination to keep them on the payroll during the rough times. If you don’t, you may not find those people again on the upside of the downturn. And if you do, you’ll have hyper-productive, motivated teams delivering quality because they’re committed on a deeper level to your company.

 

Note 1: If you really want to understand why the Big 3 are losing big time compared to Toyota in terms of market share, take a listen to Public Radio International’s “The World” report from last Friday (Nov. 14, 2008) describing why Toyota and other Japanese manufacturers seem to have a leg up on their American counterparts. After reading this post, you might not be so surprised when you hear that the employees being laid off by the Big 3 are now working at Toyota. Click here to listen to the report.

[CRed05]

http://i120.photobucket.com/albums/o176/roccus45/applause.gif

[wnaplay1647545503]

Big business is driving this country into the ground. The me me me attitude is costing alot of hard working americans alot of money and the rich get richer.

[Drewhop]

Where is the Tigers woods celebration pic it belongs in here.

[Wease]

I've heard this a few times lately:

 

1. File bankruptcy

2. Disolve unions

3. Restructure

4. Profit

 

Thoughts on that?

[Dammit Charlie]

I work at Lexus of Akron/Canton, and all I can say is good things about how well Toyota Motors take care of thier employees. Toyota has a Japanese saying call ''Kaizen'', which is Japanese for "Continous Improvement". They are an extremely motivated company, and only train the best. We are always improving and impleneting new ideas on ways to become more effcient.

 

Toyota also hasn't laid anyone off in over 50 years too. To bad we can't say the same for Ford, Gm, and Chrysler... . They are making great cars once again, however they need to rework some things.

[T Rex]

I've heard this a few times lately:

 

1. File bankruptcy

2. Disolve unions

3. Restructure

4. Profit

 

Thoughts on that?

 

I like it, but im not an economist or anything.

[wagner]

I've heard this a few times lately:

 

1. File bankruptcy

2. Disolve unions

3. Restructure

4. Profit

 

Thoughts on that?

 

I think that is the plan but they are not going to come out and say it.

[Clifford Automotive]

That article didn't tell you about the people in japan that were layed off to help support the American production lines. Toyata had a 19% decrease in sales this year. They also inacted a hiring freeze that started in September. It didnt tell you that either.

[SpaceGhost]

I've heard this a few times lately:

 

1. File bankruptcy

2. Disolve unions

3. Restructure

4. Profit

 

Thoughts on that?

 

+1 Let the fuckin' company die and be reborn.

[tripleGmax]

That article didn't tell you about the people in japan that were layed off to help support the American production lines. Toyata had a 19% decrease in sales this year. They also inacted a hiring free that started in September. It didnt tell you that either.

yeah i believe it was the lexus plant that people were let go at. im pretty sure there isnt a lexus that rated at over 30mpg so you can see why.

[Adam]

hiring freeze sounds like a good idea to me

[Casper]

That article didn't tell you about the people in japan that were layed off to help support the American production lines. Toyata had a 19% decrease in sales this year. They also inacted a hiring freeze that started in September. It didnt tell you that either.

 

90% of the world is in a hiring freeze right now.

[Casper]

I've heard this a few times lately:

 

1. File bankruptcy

2. Disolve unions

3. Restructure

4. Profit

 

Thoughts on that?

 

:thumbup:

 

If it weren't for the UAW, nobody would've been way fucking overpaid, and layoffs probably wouldn't have happened.

[Clifford Automotive]

90% of the world is in a hiring freeze right now.

 

90.00000000000001% you forgot about me.

[Clifford Automotive]

Oh yeah...the UAW...how a guy that puts a clip in a door make 80g a year always amazed me. That guy should have been making 19g

[Science Abuse]

The answer: Toyota has a special culture, deep-rooted values, and respect for their workforce.

 

Gunna stop you right there. Though Toyota posses this, so do other companies that are less successful.

 

I've actually been studying Toyota's means of success quite allot. I'm actually being paid to study it, they're so good that it has spawned a class that employers pay to have taught to their employees.

 

The reason Toyota is successful is very simple: They produce better cars.

That's it

Period

End of story.

 

Do they produce faster cars? Do they produce nicer cars?, Do they produce the highest quality cars (anymore)?

No, they don't.

They produce cars that people want to buy, and most importantly, CAN buy.

 

Their product development system is far superior to any GM focus group BS. A survey will not tell you what people want because people are stupid and don't know what they want.

 

Here's a neat story. Toyota wanted to refine a new minivan for the US market (Sienna). The result: "Sienna is arguably the best minivan ever to grace the segment..." A wicked success.

The Project manager dug up his family and moved their asses to the US for most of a year. He didn't rip up a Camry and start bolting panels on it. He didn't conduct a survey, he didn't read Car'n'Driver. He and his family drove around the states for a bit, and it was well worth the cost. He didn't ask what we wanted, he found out himself.

 

Now, compare the sales of the Sienna to the sales of the focus-group designed Venture... yeah, no competition.

 

The Toyota design process is more efficient and draws on real consumer need.

Their manufacturing process is efficient in a way the GM could never hope to be.

The cars they produce are actually wanted by the same people that can afford them. Unlike certain Pontiac's that appealed to millions of people who couldn't afford them.

 

They're better at what they do because they've got a process that is better than everyone else's. They can afford to do what they're doing. They also don't have a union workforce, in which such activities would be unthinkable.

 

But that's just Toyota. Why they are better than GM has less to do with their qualities than it does with GMs faults.

 

 

P.S. If you commit your workforce to charitable acts, are the wages that you pay them considered a donation on your taxes?

[Zach1647545520]

Good shit! Toyota is a great company to do this for their emplyees.

[Wonderboy]

Jap companies are great to work for. My mom has worked for a Jap company for over 10 years now and its been awesome for her. They give crazy amounts of vacation and personal days plus you get off work for EVERY holiday even some of the Jap ones.

 

It seems to me that toyota has always had their shit together since the beginning. Their quality is awesome and their values and practices seem to be in the right place. And I have to pay respect to the old 22r family of engines. Those things are damn near indestructible.

 

I hope toyota takes over GM's place in the automotive world.

[TTQ B4U]

Jap companies are great to work for.

 

QFT. I really enjoyed my time at Panasonic. Panny and Toyota are tight partners and both kick ass in terms of manufacturering superiority over even other Japanese companies.

 

If you've not read the respective books behind the them, I highly suggest it. The Toyota Way is great as is the Transformation of Panasonic.

[ImUrOBGYN]

Gunna stop you right there. Though Toyota posses this, so do other companies that are less successful.

 

I've actually been studying Toyota's means of success quite allot. I'm actually being paid to study it, they're so good that it has spawned a class that employers pay to have taught to their employees.

 

The reason Toyota is successful is very simple: They produce better cars.

That's it

Period

End of story.

 

Do they produce faster cars? Do they produce nicer cars?, Do they produce the highest quality cars (anymore)?

No, they don't.

They produce cars that people want to buy, and most importantly, CAN buy.

 

Their product development system is far superior to any GM focus group BS. A survey will not tell you what people want because people are stupid and don't know what they want.

 

Here's a neat story. Toyota wanted to refine a new minivan for the US market (Sienna). The result: "Sienna is arguably the best minivan ever to grace the segment..." A wicked success.

The Project manager dug up his family and moved their asses to the US for most of a year. He didn't rip up a Camry and start bolting panels on it. He didn't conduct a survey, he didn't read Car'n'Driver. He and his family drove around the states for a bit, and it was well worth the cost. He didn't ask what we wanted, he found out himself.

 

Now, compare the sales of the Sienna to the sales of the focus-group designed Venture... yeah, no competition.

 

The Toyota design process is more efficient and draws on real consumer need.

Their manufacturing process is efficient in a way the GM could never hope to be.

The cars they produce are actually wanted by the same people that can afford them. Unlike certain Pontiac's that appealed to millions of people who couldn't afford them.

 

They're better at what they do because they've got a process that is better than everyone else's. They can afford to do what they're doing. They also don't have a union workforce, in which such activities would be unthinkable.

 

But that's just Toyota. Why they are better than GM has less to do with their qualities than it does with GMs faults.

 

 

P.S. If you commit your workforce to charitable acts, are the wages that you pay them considered a donation on your taxes?

Let me stop you right there.

[OGRE]

<---- Honda Employee. Not too worried but crossing fingers. Honda talks the same talk as Toyota pretty much, but no major action has occured yet.

 

About the Big three . . . the Union has become the things that they were supposed to protect the workers from.

[2 Sweet]

About the Big three . . . the Union has become the things that they were supposed to protect the workers from.

 

true story

[HAOLE]

A survey will not tell you what people want because people are stupid and don't know what they want.

 

Strangely enough, that sounds like a democrat speaking.

[Science Abuse]

Strangely enough, that sounds like a democrat speaking.

Strange in that I've posted a fact that GM has proven through their failure to bring a desirable bread'n'butter car to market?

 

Surveys don't work, people don't know what they want.