The Machine That Changed the World: Does Toyota Use Scientific Management?

The term 'scientific management' is often associated with efficiency, productivity, and process optimization, all of which are core to Toyota's manufacturing processes. In my tenure as a tier 1 and tier 2 supplier in the automotive industry during the 1990s and early 2000s, I had close interaction with automotive giants like General Motors, Ford, and DaimlerChrysler. As a supplier of plastic interlayers for windshields, I observed significant differences in management practices across various plants. This article explores these differences, particularly focusing on how Toyota implemented scientific management principles, which greatly influenced not just its own operations but the entire automotive industry.

The Hierarchical Loop of Automotive Production

Working for a supplier that directly served brands like Toyota, Honda, and Mazda, it became evident that the quality of production and implementation of management practices had a significant impact on the end product. In the 1990s, the automotive industry was dominated by large plants with older machinery. While the equipment used by different plants was largely similar, the results and output were vastly different. The difference was not merely due to the efficiency of machinery, but also the management practices and the mentality of employees at the plants.

Union vs. Management Practices

One significant factor that contributed to the difference in performance was the role of labor unions. As a tier 1 and tier 2 supplier, I observed instances where unionized workers in some plants, particularly during breaks, would ignore quality issues on the production line, leading to critical safety hazards. For instance, I witnessed an operator at one plant who deliberately allowed windshields to fall onto the ground without reporting, as the operator was on break. However, this issue was often more a result of poor management practices rather than union interference.

The Toyota Edge

In contrast, Toyota plants stood out. Operators at Toyota plants were empowered to shut down the production line if they found any deviation from established standards. They were not just following a set of instructions but actively participating in the quality assurance process. This empowerment extended to maintaining detailed statistical process control (SPC) charts and conducting their own quality checks, unlike at other plants where quality assurance was left to external supervisors. The result was a consistently high quality of production, even in hot and potentially messy environments such as windshield production.

Lean Practices and Beyond

The layout, lighting, ergonomics, and clean room practices were all better in Toyota plants, which extended the principles of lean production beyond the factory floor. Toyota's lean management approach extends to every level, from the factory floor to upper management. While this may sometimes result in a slightly more pedestrian final product, Toyota's focus on reliability and efficiency is indisputable. Unlike Ford, which adopted its 8D (Eight Disciplines) process for root cause analysis and corrective actions but did not fully empower its operators, Toyota took a holistic approach to process management.

A Case for Lean Documentation

The book The Machine That Changed the World by James P. Womack, Daniel T. Jones, and Daniel Roos provides a detailed account of Toyota's journey in implementing scientific management principles across its production lines. Toyota does not just display these principles on charts; it lives lean from the factory floor to the top management. For a comprehensive understanding of how these principles are implemented in real-world settings, I highly recommend reading this book.

Conclusion and Final Thoughts

While the automotive industry has evolved significantly since the 1990s, the core principles of lean production and scientific management remain crucial. Toyota's approach, which emphasizes the involvement of all stakeholders in the process, offers a model for continuous improvement and efficiency. As the industry looks to the future, the lessons from Toyota's approach to scientific management will undoubtedly continue to inspire and guide.