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The Toyota Way Jeffrey Liker McGraw-Hill (2003) To understand Toyota’s success, first understand its DNA I read this book when it was first published in 2004 and recently re-read it, curious to know how well Jeffrey Liker’s explanation of Toyota’s management principles and leanproduction values have held up.
After a decade of painstaking research, we have concluded that American firms are on average the best managed in the world. But while Americans are bad at football (or soccer, as it's known as locally), they are the Brazilians of Management. This has allowed us to create the first global database of management practices.
Traditional mass manufacturing is based on principles of “Scientific Management” that date back to the 19th century. Workers specialize in simple, highly routinized operations. They are incentivized to complete operations as quickly as possible. Managers hold virtually all decision-making authority.
The organizational and operational benefits of targeted testing are not. At one telecoms company with a disappointing history of troubled upgrades and delayed rollouts, I saw a key innovation team present its testing program and testing reviews to senior management. These pathologies are nothing new. Jaws dropped.
While in Kansai, Japan's second economic engine based around the city of Osaka, I found things operating pretty much as normal. Japan is famous for its leanproduction systems and efficient supply chains. The most serious failure, though, has been the management of TEPCO. Which cycle will emerge next?
companies were making progress on the operations front, but now they seem to have lost their way—and business schools are in a position to help set them right again. In the 1980s, our organizations learned a great deal about how to improve productivity, quality, and costs from Japanese practices. A few decades ago, U.S.
The most important way to mitigate risk is to become excellent at either engineering, product, selling, or operations and management. LeanProduct Development and Customer Development processes) decreases the chance of a startup’s failure. Develop deep expertise — your best risk-mitigation strategy .
A conglomerate, by definition, is a large corporation with diversified product lines , owned and run by the same management. As many economists have argued, the burden of proof is on the company's management to show that these diverse businesses are better off together than they would be independently.
Managers constantly try to fit new market needs to existing processes and routines. The Future of Operations. automakers took decades to adopt leanproduction methods despite the obvious benefits from increased productivity and lower work-in-process inventory. Sometimes they are a fit, but often they are not.
Generally, what we see is the country where the final assembly of a product took place. Almost every sophisticated manufacturer uses some kind of leanproduction system that pulls raw materials in from a warehouse. Availability and challenges of managing labor. By that argument, Malaysia today would look pretty favorable.
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