Origins

At the end of World War II, Japan found itself a defeated nation, paying a heavy toll in both lives and infrastructure. However, in this challenging climate, the need to resume production and work was paramount. Rebuilding not only the industries but also starting afresh from the basics was necessary to rebuild life after the war.

Interestingly, the origins of this methodology drew inspiration from one born in the USA. In the 1930s, engineer Walter Shewhart invented the “Plan-Do-Study-Act,” a simple yet effective approach to production.

The steps were as follows:

1. Plan: Plan and understand how to address a problem.
2. Do: Tackle the problem following your plan.
3. Study: Analyze what you’ve done and identify areas for improvement.
4. Act: Implement the plan if it worked; otherwise, restart the cycle.

A first evolution

The advantage of such an approach lies in increasing employees’ awareness and fostering a critical approach to problem-solving rather than a mechanical one.

Deming refined this concept by introducing “Total Quality Management,” emphasizing the need to understand both “special” and “common” causes of changes.

Special causes may be external to production, such as a natural disaster, while common causes consist of the everyday details that change, making identification challenging.

Initially, Deming’s approach did not gain traction in the USA, as the focus was on producing as much as possible to meet post-war consumption booms.

Arrival in Japan

Deming was sent, among others, to help revive Japan after its heavy defeat in World War II. Visionaries and intellectual leaders were needed to put the nation back on track.

Within a few decades, Japan’s GDP began to grow significantly, becoming the world’s second-largest economy in the 1970s. The country had successfully recovered. While the quality of the country’s manufacturing was already well-known, improvements were also attributed to figures like Deming, who received one of Japan’s highest honors.

Toyota: a striking example

Toyota applied this philosophy exceptionally well, competing in the automotive market even in the strong tradition of the American home market with prestigious brands.

Success resulted from:

• Reducing waste and activities deemed unproductive.
• Simplifying operations.
• Reducing production costs through the aforementioned points.

In the 1980s, vehicle production skyrocketed, and in 1986, Toyota became the first foreign brand in the USA to sell a million cars in a year, an extraordinary achievement for that era. This success was attributed to iconic models like the Toyota Corolla FX16.

Another pillar of Toyota’s automotive production was the Just-In-Time system: parts are delivered when needed, neither before nor after. This allowed cost containment and made the product much more competitive.