HOW TOYOTA BECAME #1:

Leadership Lessons from the World’s

Greatest Car Company
by DAVID MAGEE

BOOK REVIEW

SUBMITTED BY:

JUSTINE ANNE MARIEL A. GARCIA

2021
 Introduction

How Toyota Became No. 1 is written by Mr. David Magee. He's a writer and publisher

who's authored eight books, including Turnaround and The John Deere Way. He is the co-owner

of Point Rock Books, an independent bookstore, as well as the founder and president of Jefferson

Press. In 1998, Mr. Magee graduated from the University of Mississippi and was named one of

Mississippi's finest business leaders under 40 years old. His works has published in the Wall

Street Journal, New York Times, Boston Globe, Orlando Sentinel, and Kiplinger's Personal

Finance, among many other national and international publications. Mr. Magee has been on

Bloomberg Television, the Discovery Channel, the BBC, and Mississippi Public Television.

On my point, I haven’t read any other works of David Magee. This is the first time and

first book I have read from him. But the first time is not bad. The book is so interesting, full of

knowledge, strategies, and determination not only for the business but for life. Toyota’s story is

the best picture and role model to those start up business who wants to be successful and

recognize by everyone. Also, for those entrepreneurs who are aspiring to be the future’s business

tycoons. They create a successful corporate environment wherein they consider what are the

customers’ needs rather than what are they capable of making. They also respect each employee

regardless of their position. Like in life, we should not just focus on what our minds dictate us,

instead, seek for more information and decisions that will lead us to be better.

In addition, the purpose of the book is for the readers to learn about leadership, equality,

efficiency, and continuous improvement. Kiichiro Toyoda shows how to be a true leader by

making quality everyone’s responsibility. For Toyota, all people must think and act as quality

control inspectors at every level to avoid revisions and mistakes that can affect the production
cost. Leadership comes from the leader’s characteristics on how they can contribute to the

development and welfare of the organization. At the same time, being practical, serious, and

dedicated to every task are the keys to have good performances and best outcome for the

company. Accordingly, this book will teach people how to become efficient in all ways and

things. Also, business owners will be educated on treating just and fair all of their employees

with mutual respect. Toyota explained how they manage their employees to utilize their strengths

rather than criticize their shortcomings. Besides, the book's goal is to serve as an eye-opener for

anybody aiming for continual development; staying ahead of the trend through constant

innovation and curiosity. Everything at Toyota, from assembly line processes to corporate

policies, is always being polished.

This book is a biography where it falls into the nonfiction category of the book. The

people who would like to read this book are those who will start up a business, who are in the

business world and business-minded persons, and those people who have an interest in

nonfiction books. Honestly, I rarely read nonfiction books, yet, when I have the chance to read it,

I will eventually like it because it was a true-to-life story and so many moral lessons and

knowledge that will you get.

The title “How Toyota Became #1: Leadership Lessons from the World’s Greatest Car

Company” is very catchy in the eyes and interesting when you hear. It will create sparks of

interest to every people. The title totally fits well the content of the book because the author well

narrates the beginning of Toyota until how it became successful against all odds. Also, the title

fits well the purpose of the book which is about the good leadership that can turn out to have a

successful organization. To aim for success and fame, leader should possess hard work, seek for
continuous improvement, and humility. All in all, having a righteous leader is the solution to

have a successful company.

Chapter 1

As we all know, Toyota is the world's largest automaker, but its path to success hasn't

been as smooth as we had imagined. Sakichi Toyoda, the son of a low-income carpenter who

lives in a slum in Tokyo, is at the center of it all. When he witnessed his mother struggling with

hand-operated wooden looms, he had an idea. He simply built an upgraded loom that only

required a simple hand motion to operate because he was a natural and self-taught innovator.

Then he files his first improved loom patent in the United States, alongside Ransom Olds' steam

engine car. But it doesn't stop there; he's still looking for ways to make people's lives easier with

his innovations. He flew to Europe to research how he could improve the efficiency of his self-

invented looms for his fellow citizens. He became one of the country's most remarkable

entrepreneurs; he was already making a lot of money, but instead of abandoning his staff and

inventions, he continued to explore. Then Kiichiro Toyoda, his son, took over the company.

In running the firm, his son continues his father's principles of valuing people and

striving for constant improvement. Kiichiro was captivated with the vehicle, a product of the

American industrial revolution. At the time, Japan was hit by a devastating earthquake, making

transportation difficult, and it was then that he came up with the idea of designing an automobile

that was twice as efficient as what he saw in American automobiles, and he would provide an

affordable vehicle that would make long-distance transportation feasible for all citizens. Kiichiro

Toyoda's Automatic Loom Works was sold, providing him with the cash to start making

Japanese automobiles. They went on to create the first automotive prototype and launch the first

vehicle. The company changed its name to Toyota and chose a Chinese language symbol as its
official badge at that time. This was Toyota's first invasion into the automobile industry. Later,

under the leadership of Jim Press, the first Toyota Motor branch in North America is established.

The key point of this chapter is how Sakichi adhered to his idea of being able to provide

the highest quality goods to the public while still seeking improvement and solutions to the

challenges that humans face in their daily lives. Also the goal is to build, build and build, so the

goal of the company is a never ending process because as long as there is a problem, their duty is

to seek for a sustainable solution that will last for a long period of time. The company’s top

priority is the need of the people and how they can serve a good quality product that will greatly

help them in their everyday lives. For them, success doesn’t just end by attaining the top spot or

by possessing luxurious items. Success for them is about giving value to what people needs the

most at present and also continuous innovation that will help build a better world in the future.

The organization was able to meet the needs of the people while still providing a cost-effective

and efficient product. The dedication of all of the company's leaders, as well as how they were

able to retain solid relationships with people despite their industry's prominence, amaze me the

most. I feel it is the primary reason why the company has risen to the top of the global rankings.

We, industrial engineers are natural born innovators, personally I choose engineering because

building things and creating useful products or services satisfies me as to how it satisfies a

customer. Improvement or innovation is a never-ending process. As long as there is a problem to

solve, there will be engineers that will help humanity solve problems in an efficient and

sustainable way. Engineers really do contribute in building a better future and it makes me proud

because I choose to be a part of it just like how Toyoda choose to contribute for the betterment of

his country.
 Chapter 2

Toyota Production System, aims to improve product quality and profitability through

creative employee contributions. This principle states that just-in-time reducing wasteful

inventory by using only “what is needed, when it is needed and, in the amount, needed” and

Jidoka. They also value “Kaizen” a principle that states to change for the better. They still

practice Kaizen principle at present where employees of the company work together to achieve

regular, incremental improvements to manufacturing process. It applies in all employees of the

company. this value has steps to follow specially in a workplace; to identify trouble, determine

the root cause and lastly, develop a solution. The characters involve in this chapter was Gary

Convis member of Toyota Motor Incorporation inner management circle and executive vice

president of Toyota Motor Engineering and Manufacturing North America. He states that a

leader at Toyota Company must always be working on day-to-day excellence. Developing new

ways to improve human life is continuous and is a never-ending process that a leader must keep

in mind. Eiji Toyoda nephew of Sakichi Toyoda, Dennis Cuneo former Toyota Motor North

America executive and current legal and site advisor for the company. Shoichiro Toyoda the son

of Kiichiro Toyoda a Toyota Director and Honorary Chairman. W. Edward Deming which

influenced the leaders of Toyota company to manifest his principle “Plan-Do-Check-Act” cycle.

Which serves as the core of the management. Demings principle has still and always been being

observed in the company which help in continuous rising and providing continual improvement

not just for the management in the company but also to the product that is being launch every

time. Manifesting this principle led the company to its success and continuous growth.

The key point for this chapter is how to continuously strive for development despite that

fact there at the peak of company’s popularity. It shows that striving for improvement must start
with the leader himself and followed by each and every employee of the company. Their

employees are given chance to unleash their potential by unleashing the best in each of them.

Because the leaders of this company that every employee must keep the pace of improving not

just for self-development but also for the betterment of the company. Pull system of production

meaning products are pulled from assembly by demand. Products are built according to how

much the company hopes to sell rather than how much demand actually exists for those products.

“Good can be better and even great can even be greater”. The quotation for this chapter

signifies the belief of the leaders of this company. The principle of Deming and Toyoda in terms

of leadership should remain the same but the method for attaining the goal should constantly

change. The line at the end of the chapter says it all “what works today can always be improved

upon”. In terms of time management in the office, the products serve to the customers, good

communication, accepting feedbacks and the organization itself. Everything can be improved as

to what it was before. Similar to innovation, once it is applied in a productive process, there will

always be a place to keep improving and allowing the company to analyze the performance, the

present product and seek for improvement or new innovation. As we encounter problems, we

must formulate a solution, an efficient one.

Chapter 3

This chapter talks about what leadership was and how the company sustain its excellent

performance as time passed by.

The chapter shows how Gray Convis live with his principle and how he manifests it as a

part of his everyday life. He lives with the philosophy of respect for people. “You respect people.
You listen to them, you work together.” Respect for people in his principle means

acknowledging an individual’s strengths and weaknesses and helping them solve such mistakes

and urge them to do better. Part of the approach that he implements is he engage and trust his

employees to participate in solving problem and eliminating waste. Respect comes with enabling

the employees to grow and avoid them from getting frustrated in their jobs. Turning their job into

something that they can be passionate about. Convis saves respect from his employees and other

people within automotive industry not because of his position in the company but because of his

excellent performance, his knowledge and his dedication in his work and how he instills his own

principle not just to himself but also to every employee.

He became popular for his “lean” management style. It's anything but a benefit

misfortune investigation, however is a technique to coordinate one's exercises to offer some

incentive to people and advantages to society which has the regular outcome of lessening or

killing waste. Lean reasoning adjusts the fulfillment of the client to representative

fulfillment.  The outcome would be developments in how to oversee exercises and to make new

items, which would expand productivity while diminishing expenses for the client, providers and

the climate. Undeniably the achievement of business would be the immediate after effect of a

groundbreaking course of self-investigation and mindfulness which creates a more effective

workplace that is better receptive to accomplishing the most ideal outcomes in each human

movement which prompts the business objective of lessening waste and expanding benefits.

Mark Field the president of Ford’s North American Automotive Division who had a

major problem with putting his company back into its stable position. Katsuaki Watanabe, top

executive of Toyota has also been mentioned in this chapter. Jim Press is still on this chapter

stating “We are all kind of at the same level” meaning no favoritism or unfairness in the
company. Each and every employee are considered as important as another even if he/she is at

the lowest ranking position. It is because everyone in the company contributes to the betterment

of the company and a role of an individual is no more meaningful than another. He even made a

security guard Bobby Patterson an example of how all employees contribute to the greater good

of the company. And humility takes place, the idea of being modest and respectful. Respect will

always be one of the major principles in this company and this I believe is one of the main

reasons why Toyota is one of the most successful company in the automobile industry all over

the world.

Koki Konishi made recommendations in preserving Toyota’s culture; maintain historical

perspective, assess with global perspective and rely on ethics. First is to maintain historical

perspective, which only means that looking back in the past won’t do any harm but if we look

back we’ll be able to determine the progress that we made, and from that we may be able to

identify strategies to do better at present and to prepare for the future. Assess with global

perspective is by being knowledgeable enough on what is happening around the world. Being

updated enough and knowing how to adapt to sudden changes would greatly help in maintaining

a good status of the company. Lastly is to rely on ethics, by seeing not only through actions but

by knowing its impact to the world. By living through values and providing the best quality

products that will greatly affect human lives in a positive way.

Toyota remains one of the best automotive makers in the industry with a heart, serving

the customers the best and home like automobile that satisfies the needs of the consumers. The

company itself keep its feet on the ground while still able to aim for something greater each day.

Keeping humility and respect for others close to the core. As an industrial engineer, it helps me

think on how I will be able to contribute to the possible company that I might be working at. It
helps me generate positive perspective as an employee and think of a better way on not just to do

well in my job but to maintain a healthy relationship with my co-workers.

Chapter 4

“Progress comes not just from moving forward but also from removing hindrances along

the way”. Muda Japanese term for waste—Toyota focuses on removing waste in all aspect of the

business, from reducing number of steps team members take on assembly-line floors, to

eliminating excess inventory, to reducing the amount of extraneous packaging material in parts

shipments. “If a process or an activity does not add value, get rid of it” meaning if it is not

beneficial for the company and it takes space without serving its purpose, it should automatically

be eliminated. Toyota’s manufacturing plant are considered as the cleanest automotive

manufacturing plant in the industry. It is because of a made to order policy which has to do with

elimination of waste to support continuous improvement. The company also made a commitment

to the environment by producing less waste and contributing to a cleaner environment. 90% of

the parts are returnable, and mostly reusable packaging. Everything is in order and waste is

highly discouraged in any manufacturing plant of Toyota Company.

Plant cleanliness is sustainable and 0 waste in any branch of Toyota manufacturing plant.

They aim to be the best environmental company in the world. They even put up a recycling plant

which obtains 0% landfill nonhazardous waste facility for years. Not only they serve the best

quality products but they also prioritize environmental safety by providing a total waste

management system in every manufacturing plants. According to this chapter, in order to

eliminate waste, members must be willing to accept that the current way is not the best way.
Humility also comes in way in order to perform kaizen in the field of work. Aiming for

continuous improvement means knowing how to respect and value employees, the idea, and also

by reducing waste in order to provide an improvement that will also be beneficial for the

environment. Taiichi Ohno’s division of waste into seven categories was also mentioned;

overproduction, waiting, excess conveyance, over processing, excess inventory, unnecessary

motion and defects and correction.

TPS relies on 3 components: takt time, working sequence and standard in-process stock.

The company impart this value in order for the employees to be disciplined enough and strive to

do better with only what is needed and precisely. They are encouraged to be creative and go

beyond by reaching the impossible and making it possible. Katsuaki Watanabe became the

president of the company in year 2005. He has been chosen because of his sympathy to every

employee, valuing all employees’ voice and comments and attaining the same goal as the goal of

all the past leaders of the company. He made a great impact by involving massive elimination of

waste and became one of the most effective cost-cutting initiatives ever recorded in the global

company. Toyota was able to conquer all odds and continue to reach the top while holding onto

its core founding principle.

The main point of this chapter is to look beyond. Not just to follow guidelines or by

simply manifesting it, an individual must think beyond it and other possible ways that are not

being addressed in the stated guidelines. It is like a student simply memorizing a verse and not

able to understand the meaning behind it. Without understanding and creative thinking,

continuous improvement won’t be possible.

It is one of the best principles and this company really deserves to be on top, serving

consumers the best quality service at the same time contributes to a zero-waste environment and
also more importantly treating employees as one and giving them chance by showing the best in

them. This chapter enables me to understand the real meaning of good quality service. That good

quality service shouldn’t just provide the best product or service but it should have a positive

impact to the world and to humanity.

Chapter 5

“The world-class quality we have built is our lifeline”—Katsuaki Watanabe. The

company has been working through years in order to build the best quality product and service

that they can offer to the consumers. This job doesn’t only require time but also 101% effort and

dedication in order to attain success. There are steps to quality; speak up, ask why and go to the

source of the problem. Speak up immediately when problems are recognized no matter what.

Learn to communicate with the team in order to easily address the problem. “Questions are

gateways to truths” asking why helps in reaching the root cause and lastly is to go straight to the

source of the problem for you to be able to determine its impact to the company. Through

thorough investigation and observations, they were able to identify the root cause and possibly

answer the questions such how, why, and when the problem starts to occur. It is usually done

through formulating “The five Whys”. “Genchi genbutsu” seeing the problem immediately will

help you create a solution that will solve it permanently. Digging straight to the source of the

problem and experiencing it personally will help in a quicker and effective way to solve it.

Before problems to be fixed it must first be identified. As to what Jim Press proclaimed

“If there is a problem, stop the train; do not let it go an inch farther”. It simply says that if we

encounter a certain difficulty, the first thing to do is to stop the process because continuing it

without addressing the flaws will eventually lead to a worse output or scenario. It doesn’t matter

if it takes time to solve the problem, what’s more important is the quality of service that you will
provide to the consumers because if there is a single flaw to the service or product produced it

will largely affect the whole company in a worst way possible.

Despite being popular in automobile industry, Toyota still experienced problems,

Japanese authorities suspected of failing to disclose a potentially faulty steering part in some

vehicles they produced, as a result, the company was formally reprimanded by the Japanese

government. The company responded aggressively by taking responsibility for the troubles and

fault that they have done. Instead of covering things up they unveil the truth to the humanity and

accept feedbacks and criticism. After that they continue to provide a better solution and a

maintainable one in order to still aim for excellence. The company impart new and improved

policies and procedures intended to make sure that these setbacks won’t happen again.

Andon cord or pulling the cord is one of the effective ways to clear the road to success.

This is a manifestation of the principle of the leaders of the company. The process to be done is

when the problem is properly identified, the manufacturing process should be paused and stop

from producing and the problem will be the main priority for the moment. The management

should also be requiring to contribute in solving the problem and once the solution is formed it is

when it will be applied and the production process will resume. By admitting the flaws,

accepting feedbacks and recommendation from the consumers and the employees and improving

not just the production process but also the whole management. This has led to Toyota’s strong

value reputation with consumers. The policy is simple, if there is a problem no matter how big or

small, always learn to pull the cord.

The point for this chapter is that finding and pointing out problems is a good thing even if

it stops the process or it may interfere in the time of manufacturing process. This company

always disregard how heavy or how small a problem was. Because they believe that even small
problems can lead to large consequences that if allowed to continue without solving might lead

to massive dilemma that is more difficult to handle. Identifying the problem will greatly help the

company because it provides a mechanism for discovering these issues, establishing why they

are broken, and deciding how to resolve them. It will support us in understanding interactions

and implementing the necessary advancements to compete and survive in an ever-changing

environment. Engineers are known to be problem solvers and as an industrial engineer, it gives

me knowledge on how I will address a problem if ever I encounter it in my career. Since my

profession requires a lot of optimization process and organizing and manufacturing, it helps me

formulate possible method on how I will be able to address a problem.

Chapter 6

By giving the consumers more than they expect is the best advertising Toyota Company

can do. They don’t just made promises, they apply it and make it possible. This is why the

company makes its customers smile long after a long drive in their newly bought vehicles.

Toyota make sure to give them best quality product and experience more than what other

company can offer and also in a more reasonable price. Jim Press says “we don’t have to tell

people; they see it.” More likely proving that action speaks louder than word. They prove them

that they don’t have to make petty promises as an advertisement, they visualize it and apply it in

their product and let the customers experience these improvements that they wouldn’t expect.

The challenge present in this chapter was producing the best vehicle with the same

quality, same performance as to those well- known luxurious automobile brands. Their objective
was clear; to build the best luxury vehicle in the world. With the help of the chief engineer Ichiro

Suzuki, they studied their competitors in luxurious class like Mercedes, BMW, and Audi. Then

they build a one-of-a-kind car. By analyzing the flaws and advantages of these luxurious brands

they were able to come up and exceed the original challenge laid down by Eiji Toyoda. By

investing over $1 billion, they have produce LS400 that will probably raise the bar. Then Robert

McCurry takes place, the company relies on his marketplace expertise. He then proposed to

establish a separate brand for luxurious vehicles and was launch in US in late 1989 with 2

official models. Within couple of years, this new brand became the largest car import in sales

with more than 70,000 units sold. At present, Lexus is the largest luxury brand in US with

300,000 vehicles sold per year. Toyota really set the bar high and reach it with no doubt. Their

cars were widely seen as sensible and highly functional. Then Camry takes place which quickly

gained popularity as a front-wheel drive compact sedan and as a hatchback. But on its third

release, McCurry and Press aren’t satisfied so on the next years they made Camry more

powerful, safer and efficient for a luxurious type of car. Dick Landgraff former vice president of

Ford Company was amaze on how Toyota maintain a successful path and continuous

development and how they manifest their lifetime goal which is to be the best and still at present.

It is still evident on how successful they are in automobile industry.

They believe that being the best in their field is about giving more, in all aspect in the

industry. To exceed the expectation of the consumer is one of their priority. Providing

remarkable products and giving them a home like but cozy feeling once they invest in a car made

by the company. Instead of using up the profits made, the company continuously reinvest into

something more profitable and providing the customers more. They keep on reinvesting in

research and development because it helps increase market participation, provide cost
management benefits and advancements in marketing and manufacturing abilities. This helps the

company follow ahead market trends and keeping the company relevant and stay on being the

best automobile company.

The lesson that I can conclude in this chapter is actions are more relevant than spilling

random promises. What the customers really needed is a visual representation of the application

of what a company keeps on promising. By providing a quality service which exceeds their

expectation, it will surely leave a great impression from the consumers. Investing in research and

development is a great strategy in order to keep the phase in continuous development in the

company. It is a valuable tool for growing and improving the company to the next level.

Chapter 7

The chapter provides information regarding importance of long-term strategies over

short-term. Gary Convis states that “Our foundation is stability. Our stability comes from a long

term approach”. It helps you to budget for new initiatives over a longer period of time. By

budgeting a percentage of your sales or profits over multiple years, one may adequately support

change developments without jeopardizing the ongoing operations or financial situation.

Organizations that are focused on long-term value creation and effectively manage material

sustainability challenges have been found to outperform their competitors in terms of resilience

and innovation. Setting long-term goals forces one to structure the strategies and goals. It will

help to design potential bottlenecks and prepare the company accordingly. Convis is trying to

imply that stability will be possible if the company was able to establish a long term goal.
Hiroshi Okuda is also involve in this chapter, former Toyota president who took charge of the

company in the midst of Prius project. This project received the car of the year award.

The company then initiated a project named Global 21. To develop small sedan with

unprecedented fuel efficiency for a mainstream consumer vehicle. Make the car environmental

friendly. Create more interior space than previously offered in compact cars and lastly maintain

consumer affordability so the vehicle is not merely a corporate talking point. Its goal is to offer

highly talented global employees with information appropriate for global Toyota leaders,

allowing them to maximize their talents in their areas of responsibility. It involves indication of

management philosophy and expectations of executives, human resource management and

training deployment and training programs for employees in every department of the company.

Toyota has almost complete ownership of hybrid technology and is widely regarded as

the automobile industry's leader in alternative technologies and goods in the 21st century. Toyota

isn't interested in achieving a short-term goal. They want to be successful in the long run, so they

need a long-term goal that will keep them at the top while offering the greatest service possible.

But it was never uncomplicated in terms of a long-term strategy. Working for the long term

demands a positive mindset and a clear knowledge that what is good for tomorrow is also good

for today. Prioritizing goals is crucial, as is realizing that the most important goal isn't to beat the

previous sales record.

I have learned that in success isn’t the end of the road, after you attain a certain goal the

next step is on how to maintain the position and to strive to a more improved outcome that will

not just satisfy the need of the customer but to exceed their expectations.
 Chapter 8

The problem in this chapter is “hubris”. It is a trait of conceit or excessive confidence that

leads a person to assume that they can do no wrong. The overabundance of pride generated by

hubris is frequently viewed as a character defect. Ignorance of corporate executives and dealers

may become a burden to their companies. A management or a trader may begin to make business

decisions without fully considering the consequence, or a trader may begin to take on excessive

risk. Clearly demonstrating how arrogance and disrespect toward customers can sink any

business, regardless of size or competitive position. Like former Ford executive Dick Landgraff,

who spared no expense in pursuing after the Camry and was pressed to price the car over initial

projections without considering the car's affordability. When Toyota had setbacks like these, it

has been a part of their success. They created new items without enough client input, which

resulted in unexpected failure. Jim Press was a driving force behind Scion’s creation. Scion were

sold by young hip salespeople. Scion project was done by simply observing young people in

Southern California. They observe the wants and need and style preference of their intended

consumers.

Toyota was able to integrate customer feedback into improved products with long market

life cycles by constantly listening and learning, being willing to adapt, and retaining a long-term

perspective. The company has been driven by necessity to be more customer-sensitive through

years. However, they have accepted client criticism throughout the years and have recognized

the vehicle's flaws, but they have been able to overcome them and change and make it into what

the customers desire. Listening to and responding to the consumer, rather than telling them what

they need or should want, is the key to success. Interacting with the customer is what Jim Press

and the company prioritize. Learn, live and empathize with the customer. In order to know what
the customer wants, they need to observe the customer themselves and identify the needs, wants

and how it will affect them. What’s amazing about the company is their entire structure was

based on serving the customer. In 2007, Toyota entered a full-sized pick-up truck business. They

claim that this truck is just a part of their effort to offer a full line up to its customers.

But it's a struggle every day because what works today might not work tomorrow, and

what's trendy now might be unfashionable tomorrow. When it comes to launching products,

management tends to think about a lot of things.

In this chapter, Toyota shows that being number one isn’t their goal because as they have

reached the no. 1 ranking globally as automaker and corporation, they only lead the rankings of

size, profit but the customer satisfaction is never constant. The company's purpose is to deliver

client satisfaction, and customers don't stay to one set of desires or needs; their needs and wants

are always changing as time goes by. “The customer is a moving target,” said Tomoni Imai, a

firm employee. “The customer is always asking for more.” They claim that their goal is

unattainable. Customers may need something more and even better tomorrow, therefore they

must continue to improve their product, conduct research, observe, and solicit feedback.

Continually striving to enhance the next generation and client fulfillment.

Chapter 9

Making choices isn't nearly as crucial as making the best choices. Toyota is under as

much pressure as any global firm to meet rising global product demand with plants throughout

the world running at near capacity. Toyota, on the other hand, bases its judgments more on

gathered facts than on individual opinions, and facts take time to gather and examine properly.
They are thought to be hesitant in making judgments and do not proceed aggressively, but once

they have made a decision, they move faster than any other competitor in the industry. Slowly

but steadily, by thoroughly analyzing all options and affecting factors and avoiding unrealistic

concepts.

Toyota’s commitment to the constant pursuit of improvement made the once-small

Japanese company a fierce global competitor, and many American industry watchers began to

speculate that the Toyota Way might one day overtake the ways of the Big Three. Toyota

decided to investigate before plunging into United States manufacturing. Meaning they will still

have to be cautious in getting involve diving into certain decisions, by founding out reaction in a

certain decision or action before releasing it to the target consumers.

On the other hand, Toyota aims to see if TPS could successfully be implemented in

America and to learn more about the customs, difficulties, and opportunities and manufacturing

in United States. Because of this, top level managers and executives from the company were sent

to NUMMI to help the former employees have a job again. Steve Bera one of the original

managers of GM company knew that he saw an opportunity when he saw it. He saw the problem

with his company and how much TPS could potentially help them regain its reputation in the

industry. Also, he wanted to learn new management techniques that will be more efficient in

handling their company. On the next launch of GM all reviews were unusually impressive. To

sum it up, Americans were able to learn the systems that Japanese have thought them.

What makes Toyota rise to the top is its speed in execution, the decision-making process

might take some time but once it was executed the whole process will flow smoothly and leading

to efficient and smooth execution. They still experience delays in launching like how new

Corolla was delayed due to quality concerns but this didn’t hinder them from being on top,
instead they move much quicker and with absolute planning and best decision analyzation they

have come up into a better plan and the process of continuous improvement have been resumed

efficiently.

This chapter thought me about in-depth decision making in a faster and more efficient

way. By taking a holistic approach and employing cross functional teamwork, keeping the

customer at the lead of decisions and progress simultaneously from fact-based platforms. It will

be much quicker decision-making process because it might take some time in analyzing possible

solutions but once it was implemented, it will continue to proceed smoothly aiming for success.

Chapter 10

Toyota’s culture readily accepts that greatest companies are also flawed companies that

commonly make mistakes. From the chapter’s title “Let failure be your teacher” as long as you

found the perfect equation in a certain error and accept it as a challenge the company will

certainly grow. Just like the pulling the cord rule in the company, that whenever someone notices

a problem, urgently pull the cord, work together and fix the mistake in order for the quality to be

easily restored. Also, to avoid finger pointing and emphasize problem solving, team members

make an effort and reach the root cause through strategies as the five whys. “You don’t blame

anyone. Maybe the process was not set up well, so it was easy to make a mistake”, says Gary

Convis. Blaming cannot solve anything, so instead of pointing out who made the mistake better

if the whole team work as one and solve the problem in a professional way.

One remarkable mistake of the company was the launching of 2 nd generation Camry

which was detected to have a major safety defect. Electrical malfunction that disabled the power

windows and locks. After admitting the mistakes that they have done, the company accept all the
feedbacks from the media and the consumers and the 3rd generation of Camry was made better

and maybe even the best at that specific time. The problem was taken seriously and with good

decision-making skills and accepting it as a part of the process, they have made a better solution.

“You don’t learn from success; mistake is what shapes us. We treasure mistakes”

according to Jim Press. Example is the public embarrassment and bad image on the consumers,

instead of taking things negatively, they accept that they have made a mistake and prove that

they can clear those mistakes and use it as a pathway for a better and more efficient product.

Those mistakes might probably mark their reputation, but by intelligently making decision and

identifying the root cause of the problem, they were able to understand what happened and how

they will address it in a professional manner. Wiseman, a Kentucky native learned that

automaker operated differently. Cho a student of Toyota system believed in conservatism,

humility and never covering up one’s mistakes. Watanabe have encountered both good and bad

news and instead of enjoying what’s good, he first addressed the bad one and focus on how it

will be resolved. For he believed that they have come so far to rich to top and they can’t afford to

lose their reputation by just simply letting small problems slip just because they are not visible.

His way of facing the problem was to apologize first then address the problem. Think what and

why it occurs and how it should be fixed.

In this chapter, I have learned that in order to innovate we can’t just stick to the plan.

Because as we go along the way we may encounter different problems that the plan won’t be

useful, so adding new ways to improve and pass through the problems will be much helpful. For

Toyota, the principles have remained the same, from striving for continuous improvement,

taking time to study and eliminating waste. But now, more tools have been added because this

ever-changing world is never the same, as time pass by it will continue to change and provide
different challenges that we need to encounter in order for us to grow and learn more. Just like

what Watanabe says that he believes that it is good that they manifest and hold onto their beliefs

that no growth can come without improving quality. By setting goals, focusing on a certain part

and always consider the consumers, because they will be the one who will mostly be affected by

the decisions that the company has to make.

Chapter 11

You must be willing to develop in order to grow efficiently. “Something is wrong if staff

don't look around each day, find things that are laborious or dull, and then redo the procedures,”

says Taichi Ohno. Even the instructions from last month should be outdated. To evolve in the

corporate world, one must formulate a unique plan. Because, as we all know, time and people

change. So, in order to adapt to what people want, we need to come up with a better and more

unique technique to satisfy them, because what works in one area may not always work in

another. It demonstrates that goal for continual improvement necessitates flexibility and change

by its very nature.

It was a new and fair game for everyone in the organization, as well as other companies

involved, such as NUMMI and GM, because they promote fairness and discourage favoritism.

Regardless of their position in the organization, all employees are required to wear a same

uniform. Instead of constructing exclusive parking spaces for higher-ranking employees, the

plant parking lot was made first-come, first-served, and desks were lined up in huge rooms so

that all employees were treated equally in the workplace.

 This time, their key strategy that greatly aids them in managing the company is their

capacity to adapt to a variety of communities with varying demands, styles, and trends. “They

look at things to adapt and saw what needed to be done,” Dennis Cuneo said. That is the beauty

of the Toyota system: treating people with respect, regardless of what that means in a particular

culture.”

The best classroom teachers are learners as well. They work to ensure that principles are

applied consistently so that justice prevails in the end. Before they can teach the right thing to the

employees, they must first go through failures and imperfections that shape who they are now,

and those failures and flaws are what they are passing on to the employees. Toyota doesn’t only

utter but also act on their vision for the future.

As a student, knowing all of these and learning new things about business is a lot to take

but it gives me big idea on how can I be able to survive in my future career and apply all these

learnings. Just like what this chapter is all about, adapting to changes and turning change into a

road for development.

Chapter 12

The world's most famous structures were constructed one stone at a time, much like a

vehicle is put together one element at a time. Toyota's respect for people lies at the basis of the

philosophy of adapting to serve individuals and communities. One of the company's main pillars.

Kiichiro Toyoda places a high value on contributing to the country's welfare and development,

and the corporation invests a significant amount of time and money in the communities

surrounding its operating and manufacturing facilities, treating each as a small corporate
headquarters. The goal is to not neglect anything and to pay equal attention to each individual

component in order to prevent the structure from becoming weak or failing. The company's

purpose is to create a product that can be sold in the market. When volume levels permit capital

investment, build products regionally and contribute to the community as a local citizen. That is,

they must be a member of the community rather than merely a foreign brand. Be a member of a

society that responds to the needs of the people who live there. That is why Toyota has

manufacturing plants in San Antonio, Texas, Kentucky, and Princeton, Indiana, as well as

Tupelo, Mississippi. Within the facility, they all have the same value and regulations, but they all

have various adjusting mechanisms and each has its own identity and contribution to the

community. The corporation has thrived as a result of this policy of encouraging local

involvement and investment while also allowing each facility to develop its own character within

the larger Toyota system. The company now sells more than $200 billion in products yearly in

more than 100 countries.

Establishing operations isn't enough; you also need to form commercial and community

partnerships. The procedure must be approved by the consumer in order for it to be successful.

They must ensure that it is exactly what the customers required and that they will be satisfied

with the operation after it is completed. “The task of assisting one's self in the highest sense

encompasses the aiding of one's neighbors,” Samuel Smiles said. The principle of the company

is that in every new venture in a new community they are intended to respect the local customs

and the community itself. They based their approach into the beliefs and living of the people in a

certain community that they want to invest in. For example, is on how they adapt in an Indian

civilization where Indians are often quite sensitive to criticism and we all know how globally
competitive the Toyota company was so they find way to adapt and work on Indian-built

vehicles and apply it on their own product but with an improved quality.

“To sustain growth, each region needs to be self- reliant” says Mitsuo Kinoshita. It means

to continue a stable growth a region must depend on its own strength and take the weaknesses as

a part of challenge and path to success. The chapter itself is entitled “plan big, execute small”, a

great entrepreneur like Toyota company has the ability to dream high while sticking to the

basics. They think large and are constantly coming up with new and better ways to do things.

They also understand that anything worthwhile requires focus, devotion, and persistence.

Consider the big picture while focusing on the details.

Chapter 13

Manager like you have no power, to be a great leader, one has to be more of an educator

than a dictator. Supervisors with both authority and power settle figuratively and literally high

above the people who do the actual labor in numerous organizations across the world, including

Toyota's biggest competitors. Inefficiency will result from a lack of communication with staff.

Those in charge of action do not fully comprehend the goal or the implications; they are simply

carrying out orders. Similarly, those in positions of power are too separated from the real labor to

comprehend the significance or effectiveness of their commands. This chapter uses a typical

family as an example of a leading system in which parents have complete control over their

children, commanding what they must and must not do, and believing that nagging will improve

their children if their children break the rules.

 Decision making is slow and inflexible as information must travel through mazes of

approval and authorities just like what happened to Ford Company when the people and system

gets bigger than the entity and its goals. Wherein the Bill Ford and the company lose more than

$12 billion in a single year of operation due to misconnection with the people and inefficient

goal. Alan Mullaly was mentioned in this chapter. Toyota has become the top carmaker in the

world because of a management philosophy that encourages leaders to empower participants to

think and act independently. In contrast to Ford's reputation heading downhill under the weight

of its inadequate framework, Toyota has progressively ascended marked by security,

development, and evolution built on the strength of a leadership structure that empowers

employees, transforming managers into trusted facilitators and coaches rather than bosses and

dictators.

Convis' approach to becoming an effective leader is to "manage as if you have no power."

He avoids being a dictator by allowing the entire community to speak and unite as one without

him interfering. Act as an educator who is always involved and present in decision-making rather

than a boss who imposes orders. This strategy was taken in order for leaders to recognize that

they, too, need to learn despite their position in the firm, as well as the willingness to put ego

aside and continue to dig into new learnings. Because all people are encouraged to share

knowledge and data in an equal societal structure, avoid using "I" and instead use "we." In his

book The Toyota Way, Jeffrey Liker defines "formal authority" as the ability of the person in

charge to act as an empowered decision maker rather than an arrogant authoritarian.

This chapter presents the idea of striving for greatness without using dictatorship in the

equation. Striving for lean and avoiding authority is the goal, generating core principles and lean
structure which effectively empowers the partners. It will help to maximize delivered value

through continuous improvement and minimal waste.

Chapter 14

The tradition in Japanese business has long been to hire candidates who best fit the

company. The company deeply rooted in hiring method because it works well enabling them to

find new employees who respect people and are willing to improve on the job. Despite Toyota’s

growth and popularity in the business industry, they have not abandoned their lifetime principle

and goal. They focused on employee’s improvement so they always held extensive training and

mentoring program to shape their people to be the best that they can be and contribute to the

betterment of the company.

The company has been and always been more focused on human resource development

rather than aiming for being the company that has the highest sales or profit. They believe that

those people will help them lead the way to the road that they want to take for a lifetime. And it

has helped fuel up company’s success over the years. They manage to maintain its experience

through sustainability and by seeking out new team members who best reflect the principles of

the company’s philosophy which include practicality, inquisitiveness, respect, a desire to

improve, and dedication to contribute to the welfare of people and community.

This chapter taught me that Toyota's beliefs, which emphasizes unleashing employees'

creativity and contribution over collecting certain equipment and traditions, has lead them to

where they are now − the top. Manifesting their basic principles from the beginning to the

present is their ace in the hole for reaching the top and continuing to perform even better things
and contribute to society's benefit. Furthermore, by not hurrying things, particularly during the

planning process, they are able to listen and collaborate in order to establish a common

understanding, and by studying the facts and observations acquired, they will arrive at a better

and more comprehensive conclusion.

Chapter 15

The company's strengths and disadvantages are discussed in this final chapter. “I believe

that success can make us arrogant and make us want to stay in our comfort zones. This is the

danger.” Katsuaki Watanabe agrees. Meaning, when people go from having nothing to having

everything, they begin to believe in their fate and believe they are deserving of everything. They

forget that what appears today was once a luxury, and as a result, they stop appreciating life in

search of something greater, which is how their fall in begins. The keys to long-term success are

humility and consistency.

To be the best, you must believe that failure is the enemy, which manifests itself as self-

satisfaction, waste, haughtiness, and a wrong focus. But, of course, one of the natural attributes

that has made all the difference for Toyota during its decades-long continuous climb in

efficiency, service strength, and power is the fear of failure.

This chapter simply lays out their path to success, a never-ending journey that will allow

them to continue to master new skills that will help them grow in a positive way. One of the most

important lessons I've learned from this book is that respect is the most important factor in

achieving success. Respect, I realize, is a crucial life skill for coexisting with others in our

modern culture. Respect for other people and the profession itself will also contribute to a good
life and high performance at work. The organization instilled good ideals and taught essential

ideas that are critical to their current success.

Conclusion

Working for the proper reasons, such as determining the main cause for which they built

the firm and the organization, motivates people to work even harder to achieve their goals. “Our

mission is to make life easier,” Jim Press once said. Sakichiro Toyoda's values were carried

down through the generations, and they were crucial in the company's evolution into a strong

multinational corporation. Toyota Company has made consistent and significant growth since the

1950s by sticking to the same key foundation ideas for more than 80 years while constantly

updating the specific methods and processes.

After reading the entire book about Toyota's rise to the top, I was able to conclude that

keeping humble, valuing employees, turning mistakes into challenges, and adjusting to change

were all important factors in their success. They have become the top firm in the world in the

automobile and corporation industries because they are the most empathetic and loyal to their

customers. The company that is continually thinking about world-changing items that will

benefit not only its customers, but the entire community and, of course, the entire global.

Undoubtedly, the path to the top does not end with being the most significant and best

corporation with the biggest profit and sales, but their goal is constant progress, which simply

means that this is a lifelong journey to innovating better and even best products.

As an individual living in this ever changing world, it is a must for us to keep updated

and adapt to those changes. I choose Industrial Engineering as a lifetime profession because I
want to be part of this constantly changing world. I want to take part and share my knowledge,

acquire new learnings and innovate new things that will positively affect our way of living.