The Toyota Management System has long been recognized as the gold standard and the most effective business system in the world. Its origins and evolution are a fascinating lesson in agile adaptation and visionary leadership. To truly understand it, it is worth looking at the two pillars that together built the global success of the Japanese company.
Toyota Management System – TPS and TQC as Two Starting Points
TPS – The Response to Limited Resources
In the early 1950s, Toyota’s leadership set an ambitious vision: to become the global leader in the automotive industry, despite the fact that Japan had no natural resources. High import costs forced the company to look for savings elsewhere. The solution became the Toyota Production System (TPS) – a production model built on the rigorous elimination of waste and cost rationalization.
TPS not only reduced costs but also became the foundation of the modern approach to production, known today as lean manufacturing.
TQC – Competitive Advantage Through People
The second pillar of Toyota was the awareness that its greatest asset was its people. Trusting employees and making full use of their skills allowed the company to produce cars of ever higher quality and added value. This gave rise to Total Quality Control (TQC) – a system of comprehensive quality management.
TQC is not only about quality tools but also about practices that support continuous learning and adaptation. A key role here is played by the routines described by Mike Rother: improvement kata and coaching kata. They make it possible to move from solving immediate problems to achieving long-term challenges.
Toyota Management System – Improvement Kata and Coaching Kata at the Heart of the Culture
Improvement Kata
A structured practice of systematically solving problems and learning on the way to achieving the company’s “True North” – its strategic vision.
Coaching Kata
A process of developing leaders who can support their teams in building these habits. Thanks to this, the culture of continuous improvement is not just a project but a permanent element of everyday work.
Toyota’s Success – More Than Just Production
Toyota consistently integrates TPS and TQC, which is why in 2020 it was the world’s largest automotive brand, selling 9.5 million cars. It is worth emphasizing that while TPS has been widely documented (e.g., in The Machine That Changed the World), TQC and kata are often overlooked, even though they are crucial for adaptability and innovation.
As Masao Nemoto pointed out – TPS alone is not enough to build long-term competitive advantage. It is the combination of the production system with a culture of quality and kata habits that enabled Toyota to achieve its ambitious goals while maintaining its ability to continuously learn.
Summary – Toyota Management System
The Toyota Management System is more than lean manufacturing. It is the integration of two systems – TPS and TQC, reinforced by improvement kata and coaching kata. Thanks to them, Toyota not only achieved its vision of becoming a global leader but also maintained its adaptability and capacity for innovation.
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Psychologist, consultant, trainer, and executive mentor with over twenty years of managerial experience. He specializes in developing leadership competencies in the areas of personal effectiveness and leadership, building functional teams, as well as organizational transformation, relationship psychology, and performance management.
He is an Assessment and Development Center (AC/DC) assessor and a lecturer at WSB University in Wrocław. Author and co-author of numerous articles in his fields of expertise.
