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Turning Adversity into Opportunity at Toyota
by Adam Cort
October 30, 2008

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“Toyota plant resumes making V-8 engines,” read the headline. But what really caught my eye was the pull quote immediately below. “Employees use 3-month break to improve processes.”

On August 8, in an unprecedented move, Toyota Motor Corp. suspended all V-8 engine production at its plant in Huntsville, AL, due to weakening demand. The engines are used to power Toyota’s Sequoia sport utility vehicles and Tundra pickups. Sales of these vehicles have plummeted in recent months in response to spiking gasoline prices.

Instead of simply sending its full-time workers home, though, Toyota, in accordance with company policy, kept them on the payroll. Not only that, it kept them hard at work, improving both the plant and themselves.

“It was the first time for [the company] to go through this nonproduction process," says Toyota general manager Mark Brazeal, as reported in The Huntsville Times. But “we looked at it as an opportunity…. The overall theme has been to improve our organization."

According to The Times, the plant adopted a “three-pillar approach” to filling the 500 idled workers' time—implementing daily kaizan, continuous improvement activities, focusing more on training and development, and encouraging self-reliance activities.

In all, employees invested some 45,000 labor hours in general skills and shop-floor training. Morale reportedly remains high.

Compare this to the way things are done at the Big Three, as well as countless other companies in the United States. Everyone go home and watch TV. We’ll give you a call, if and when we need you.

Study after study has shown that wages are only part of what attracts and retains good workers. Far more important is the feeling that they have a stake in the place where they are employed, that the company regards them as an integral part of their joint future, that it is willing to invest in them and sees them as a resource and not just an expense.

Imagine how those 500 Toyota workers feel now that they’re back on the job. Imagine how those GM workers are feeling right now in Janesville, WI.
 
There’s a good reason many Americans are reluctant to choose a career manufacturing—not to mention why GM and the rest of the Big Three continue to lose market share to the Japanese.



Adam Cort
corta@bnpmedia.com
Senior Editor

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  Comments (11)Post a Comment
Title: True Leaders


As a former employee of the Toyota MFG Plant in Huntsville I must say that Toyota truly stand on their word of taking care of their employees and running an organization that leads and not follow (GM,FORD and Chrysler) Great Job Toyota- keep moving foward


Title: good job


Congratulations Toyota, you are an example for many manufacturing companies!


Title: Role Model


This is another example of the mindset of a company that is run by engineers instead of bean counters. I think this is an outstanding approach by Toyota. I prefer to by American, but Toyota has repeatedly proven that it's a leader in manufacturing. Perhaps the bean counters that manage GM and Ford should have studied Toyota's practices instead of laughing at them in the late 80's. Instead, they lay off the engineers and beg for money from the government (and the tax payers).


Title: Atta Boy


This should be on the national news, every day for a month....


Title: Toyota


Two comments: American companies have no problem paying non-working employees as long as they are top management.

Also,buying a Toyoda truck is buying American! Who cares which jackass owns the company. Where are it's workers is what counts. One owner or top manager can visit only so many stores or cafe's. But 500 local employees keep a regional economy humming.


Title: Leaders are the problem at the Big 3


The work ethic of the Japanese and "honor" of doing the right thing rather than just accumulating "money" are what separate Toyota from the (once were) Big 3 in America. I have watched a former executive from one of the American automobile manufacturers step in to (ruin) run our company. He continually fills his own pocket first at the expense of employees, before any net results are realized. Japanese management on the other hand, take take pride in running a successful company for the honor and then humbly accept compensation after they have demonstrated consisten results. It's greedy, incompetent executives in America's big three that have created a culture of "me first" within this industry and poisoned it, likely beyond the ability to recover. I have watched the same mentality in our former automotive executive, and who is slowly poisoning this company while sucking everything he can before it dies.


Title: The long haul


Don't forget that Toyota got some nice tax breaks from the state of Alabama to build there. Bean counters or Engineers? Doesn't matter when you are working to satisfy the stockholders for this quarter. The advantage is that Toyota has a vision that is many years out and they have a realistic expectation of their workforce. If you are not willing dto do this job you are gone and I have a list of people who are willing to take your place. The unions work with these Japanese companies because they have no other choice, survival. People are willing to work at these plants because they have no other choice. Is the work hard? Yes! Do they get paid well? Yes! Do they have a sense ownership and responsibility? It appears so! The big three are not the only ones suffering from the American way of doing business. It seems that nearly all American managers have gone to the same school. We are more interested in protecting ourselves than figuring a new way of doing the "same old thing".


Title: where are you in the food chain


As supplier who is forced to cut margins to the bone to secure business from OEMs, keeping empoyees on with no income would be nice but is financialy impossible if you want to survive as a business.


Title: UAW


Ford has a program where UAW workers are not sent home for lack of production. It's called GEN for Guarenteed Employment Numbers. Employees come to the plant to put their time in watching TV, playing cards then go home early. Most of us know the average UAW employee believes they are owed a job. This type of program fosters the UAW work ethic.


Title: Toyota does it again


Toyotas shows why they are number 1 carmaker. But to GM and Fords situation you couldn't do this in a place where the older UAW type deals are in place even if you wanted to because the Union bosses would not permit it- its not their job. No manufacturer can afford to do this for long, but its a good thing and I think the workers morale is high not only because they were not sent home but because they see THEIR ideas being put to action.
An analogy exists in R&D--development spending is usually the first thing cut in lean times, but its been shown that forward looking businesses that even increase R&D investment in bad times often benefit greatly when the economy turns around because they are ready to take advantage


Title: Simply GREAT..!!!!


In mathematics, we learn double negative is positive...
But in Toyota, it seems that it is always positive, regardless the number of negatives...
They simply turn anything into positive...
Hurray to Toyota Emplyees - Top to Bottom,,,,


 
 


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