Taichi Ohno invented modern, just-in-time manufacturing at Toyota. Near the end of his career, Ohno gave up his entire playbook in one slim volume, The Toyota Production System.
So when I found an antiquated looking copy in a Little Free Library near my home, I had to give it a read.
Whether or not you’re in manufacturing, Ohno’s lessons can help your business perform at a higher level.
Waste is the Enemy
“The basis of the Toyota Production System is the absolute elimination of waste.” – Taichi Ohno
For generations, manufacturing had worked the same way. Create parts, assemble them into finished goods, sell the goods.
How else can you do it, right?
But as an engineer at Toyota, Ohno couldn’t afford to buy huge numbers of parts he might not use. The Japanese market was small and people couldn’t afford to buy as many cars as Americans could.
For Toyota to keep its head above water, it had to eliminate waste. So instead of pushing parts through the assembly line, Ohno did it backwards.
Once Toyota had an order for a car, each station would ask the station before it for parts. This made sure that Toyota only created the parts it would actually use.
They called it “just-in-time.”
At the time, it was a fringe idea. Today, factories all over the world use Ohno’s system.
Staying Close to the Product
“Stand on the production floor all day and watch — you will eventually discover what has to be done.” – Taichi Ohno
Ohno wasn’t some MBA recruited into a management training program. He started out on the shop floor and even as a top executive, he spent much of his time there.
The best founders today operate just like Ohno. Elon Musk spends lots of time on the factory floor at Tesla and SpaceX, even sleeping there during busy periods.
Sticking close to the product is critical outside manufacturing as well. Brian Chesky obsesses over every screen of the Airbnb app, even though he has countless engineers working for him.
Listen to Employees
People often think assembly line employees just turn the same screw all day. Not at Toyota, they don’t.
Every single employee has the authority to stop the production line. They use an “andon cord,” a cord they pull that stops the line when a problem arises.
At Toyota, everyone is responsible for quality, not just top managers.
Ohno didn’t just trust employees to spot defects. He also relied on them for new ideas on how to improve Toyota’s manufacturing process.
In any business, the frontline employee knows more about what’s happening at the company than anyone else does.
Good managers listen to them. Rotten managers dismiss them, certain they know better.
Wrap-Up
You’re probably not making cars like Ohno. But those of us in tech have a lot to learn from Toyota.
We love to pile on the perks. Ohno, on the other hand, was laser focused on eliminating waste.
We burn a lot of time in meetings. Ohno spent his time on the factory floor.
We bury ourselves in layers of management — Ohno preferred to learn from the workers on the line.
Ohno stayed focused because he was devoted to the mission: making a great car and advancing Japanese industry. How many of our companies in tech have such a clear purpose?
I can think of a few: Tesla, SpaceX, Anduril. And they’re some of the most successful companies in the world.
Drop Taichi Ohno into any of them today, and I think he’d feel at home.
More on tech:
Three Green Flags I Look For in Founders
Tesla Model Y: A Case Study in Product Design
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