Toyota Production System

45 results back to index


pages: 167 words: 44,104

Toyota Production System: Beyond Large-Scale Production by Taiichi Ohno, Norman Bodek

business cycle, inventory management, Toyota Production System

In fact, it is certainly this diversity that has reduced the effectiveness of mass production in the automobile industry. In adapting to this diversity, the Toyota production system has been much more efficient than the Ford-style mass-production system developed in America. Toyota's production system was originally conceived to produce small quantities of many types for the Japanese environment. Consequently, on this foundation it evolved into a production system that can meet the challenge of diversification. While the traditional planned mass-production system does not respond easily to change, the Toyota production system is very elastic and can take the difficult conditions imposed by diverse market demands and digest them. The Toyota system has the flexibility to do this. After the oil crisis, people started paying attention to the Toyota production system. I would like to make clear that the reasons lie in the system's unsurpassed flexibility in adapting to changing conditions.

In a severe recession or slow-growth economy, private enterprises must persevere by whatever means they can. The Toyota production system has been thorough in removing waste, inconsistency, and excess from production. It is by no means a passive or defensive management system. The Toyota production system represents a revolution in thinking. Because it requires us to change our way of thinking in fundamental ways, I hear strong support as well as strong criticism. I find that the cause of such criticism is insufficient understanding of what the system is. Of course, we have not made a big enough effort to teach people about the nature of the Toyota production system. However, it would not be an exaggeration to say that it has already gone beyond Toyota, the company, to become a uniquely Japanese production system. 4 Genealogy of the Toyota Production System A Global World Around Us IT IS SAID Toyoda Kiichiro once told Toyoda Eiji,' current president of Toyota, that in a comprehensive industry such as automobile manufacturing, the best way to work would be to have all the parts for assembly at the side of the line just in time for their use.

By this, the management work force is also reduced drastically. And kanban is the means used for conveying information about picking up or receiving the production order. Kanban will be described later in detail. Here, I want the reader to understand the basic posture of the Toyota production system. The system is supported by the just-in-time system, already discussed, and autonomation, described in the next section. The kanban method is the means by which the Toyota production system moves smoothly. ► Give the Machine Intelligence The other pillar of the Toyota production system is called autonomation - not to be confused with simple automation. It is also known as automation with a human touch. Many machines operate by themselves once the switch is turned on. Today's machines have such high performance capabilities, however, that a small abnormality, such as a piece of scrap falling into the machine, can damage it in some way.


pages: 284 words: 72,406

Scrum: The Art of Doing Twice the Work in Half the Time by Jeff Sutherland, Jj Sutherland

Baxter: Rethink Robotics, business cycle, call centre, clean water, death of newspapers, fundamental attribution error, knowledge worker, meta analysis, meta-analysis, Milgram experiment, minimum viable product, pets.com, RAND corporation, rent-seeking, Richard Feynman, Rodney Brooks, Shai Danziger, Silicon Valley, Tony Hsieh, Toyota Production System

As Jeff Johnson put it, “I handled impediment removal.” An “impediment” is an idea that comes from the company that first formed a lot of the ideas Scrum is based on: Toyota. And, more specifically, Taiichi Ohno’s Toyota Production System. I won’t go into all the details here, but one of the key concepts that Ohno introduced is the idea of “flow.” That is, production should flow swiftly and calmly throughout the process, and, he said, one of management’s key tasks is to identify and remove impediments to that flow. Everything that stands in the way is waste. Ohno gives waste a moral, as well as a business, value in his classic book, The Toyota Production System: It is not an exaggeration that in a low-growth period such waste is a crime against society more than a business loss. Eliminating waste must be a business’s first objective.4 Ohno talks a lot about the different kinds of waste and impediments that can get in the way of production.

., 3.1, 3.2 Product Owner and, 8.1, 8.2 size of, 3.1, 3.2 Team WIKISPEED, 4.1, 4.2, 8.1 teamwork, at Zappos technical risk “Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades, A,” (Bikhchandani, Hirshleifer, Welch) Therapeutic Resource Centers, 6.1, 6.2 Thorndike, Edward Lee 3M, 2.1, 3.1 thrivers time defects and as finite time boxes titles, elimination of, 4.1, 9.1 To Do, 7.1, app.1 Toyota, 1.1, 3.1, 5.1, 5.2, 6.1, 6.2, 7.1 Chief Engineers (Shusas) at continuous improvement (kaizen) at NUMMI and Prius and workers’ empowerment at Toyota Production System, 2.1, 3.1 Toyota Production System (Ohno), 1.1, 5.1 transcendence, 2.1, 3.1, 3.2, 3.3 transparency, 7.1, 7.2, 7.3, 7.4, 8.1, 9.1 Twitter, 1.1, 1.2, 9.1 Udorn Royal Thai Air Force Base Uganda, poverty in, 9.1, 9.2 Unreasonable Expectations USAF Weapons School Utah, University of value accountability for early termination and prioritization by in product development, 8.1, 8.2, 8.3, 192, 193, 8.4 and speed value curve, 191 Valve Valve Handbook, velocity, 3.1, 3.2, 6.1, 7.1, 7.2, 8.1, 9.1, app.1 happiness and, 153 venture capital, 1.1, 3.1 revenue as metric of success for videogames, 9.1, 9.2 alpha access to Vietnam War, 2.1, 2.2, 8.1, 8.2 Wake, Bill Wall Street, 6.1, 6.2, 6.3, 6.4 warrior spirit Washington, D.C.

Since its inception, the Scrum framework has become the way the tech industry creates new software and products. But while Scrum has become famously successful in managing software and hardware projects in Silicon Valley, it remains relatively unknown in general business practice. And that is why I wrote Scrum: to reveal and explain the Scrum management system to businesses outside the world of technology. In the book I talk about the origins of Scrum in the Toyota Production System and the OODA loop of combat aviation. I discuss how we organize projects around small teams—and why that is such an effective way to work. I explain how we prioritize projects, how we set up one-week to one-month “sprints” to gain momentum and hold everyone on the team accountable, how we conduct brief daily stand-ups to keep tabs on what has been done and on the challenges that have inevitably cropped up.


pages: 278 words: 83,468

The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses by Eric Ries

3D printing, barriers to entry, call centre, Clayton Christensen, clean water, cloud computing, commoditize, Computer Numeric Control, continuous integration, corporate governance, disruptive innovation, experimental subject, Frederick Winslow Taylor, Lean Startup, Marc Andreessen, Mark Zuckerberg, Metcalfe’s law, minimum viable product, Mitch Kapor, Network effects, payday loans, Peter Thiel, pets.com, Ponzi scheme, pull request, risk tolerance, selection bias, Silicon Valley, Silicon Valley startup, six sigma, skunkworks, stealth mode startup, Steve Jobs, the scientific method, Toyota Production System, transaction costs

I struggled to explain the practices to new employees, investors, and the founders of other companies. We lacked a common language for describing them and concrete principles for understanding them. I began to search outside entrepreneurship for ideas that could help me make sense of my experience. I began to study other industries, especially manufacturing, from which most modern theories of management derive. I studied lean manufacturing, a process that originated in Japan with the Toyota Production System, a completely new way of thinking about the manufacturing of physical goods. I found that by applying ideas from lean manufacturing to my own entrepreneurial challenges—with a few tweaks and changes—I had the beginnings of a framework for making sense of them. This line of thought evolved into the Lean Startup: the application of lean thinking to the process of innovation. IMVU became a tremendous success.

A startup’s earliest strategic plans are likely to be hunch- or intuition-guided, and that is a good thing. To translate those instincts into data, entrepreneurs must, in Steve Blank’s famous phrase, “get out of the building” and start learning. GENCHI GEMBUTSU The importance of basing strategic decisions on firsthand understanding of customers is one of the core principles that underlies the Toyota Production System. At Toyota, this goes by the Japanese term genchi gembutsu, which is one of the most important phrases in the lean manufacturing vocabulary. In English, it is usually translated as a directive to “go and see for yourself” so that business decisions can be based on deep firsthand knowledge. Jeffrey Liker, who has extensively documented the “Toyota Way,” explains it this way: In my Toyota interviews, when I asked what distinguishes the Toyota Way from other management approaches, the most common first response was genchi gembutsu—whether I was in manufacturing, product development, sales, distribution, or public affairs.

Whenever that feature was ready to be tested with customers, they immediately would release a new version of the product, which would go live on our website for a relatively small number of people. The team would be able immediately to assess the impact of their work, evaluate its effect on customers, and decide what to do next. For tiny changes, the whole process might be repeated several times per day. In fact, in the aggregate, IMVU makes about fifty changes to its product (on average) every single day. Just as with the Toyota Production System, the key to being able to operate this quickly is to check for defects immediately, thus preventing bigger problems later. For example, we had an extensive set of automated tests that assured that after every change our product still worked as designed. Let’s say an engineer accidentally removed an important feature, such as the checkout button on one of our e-commerce pages. Without this button, customers no longer could buy anything from IMVU.


pages: 401 words: 119,488

Smarter Faster Better: The Secrets of Being Productive in Life and Business by Charles Duhigg

Air France Flight 447, Asperger Syndrome, Atul Gawande, Black Swan, cognitive dissonance, Daniel Kahneman / Amos Tversky, David Brooks, digital map, epigenetics, Erik Brynjolfsson, framing effect, hiring and firing, index card, John von Neumann, knowledge worker, Lean Startup, Malcom McLean invented shipping containers, meta analysis, meta-analysis, new economy, Saturday Night Live, Silicon Valley, Silicon Valley startup, statistical model, Steve Jobs, the scientific method, theory of mind, Toyota Production System, William Langewiesche, Yom Kippur War

They just wanted to get as many cars out as they could.” When Madrid showed up for this interview, however, he suspected things might be different this time. GM was partnering with the Japanese automaker Toyota to reopen the Fremont plant. For Toyota, this was a chance to build cars inside the United States and expand the company’s sales in America. For General Motors, it was an opportunity to learn about the famed “Toyota Production System,” which was producing cars of very high quality at very low costs in Japan. One hitch in the partnership was that GM’s agreement with the UAW dictated that the plant had to hire at least 80 percent of its workers from employees who had been laid off two years earlier. So Madrid and his friends were showing up, one by one, to interview with New United Motor Manufacturing, Inc., or NUMMI.

Nobody ever asked him his opinion or cared what he thought. He expressed all these frustrations to his interviewers and then kicked himself on the long drive home. He really needed this job. He should have kept his mouth shut. A few days later, Madrid got the call. The Japanese executives had appreciated his honesty and were offering him a job. First, though, he would have to go to Japan for two weeks and learn about the Toyota Production System. Sixteen days later, NUMMI flew Madrid and about two dozen other workers to the Takaoka auto plant outside Toyota City, Japan, the first in a series of trips nearly every employee at NUMMI would take. When Madrid walked into the Japanese factory, he saw familiar assembly lines and heard the recognizable sounds of pneumatic tools hissing and buzzing. Why had they bothered flying him across the world to train inside a factory just like the one at home?

One day he shadowed a worker who, midway through a shift, told a manager he had an idea for a new tool that would help him install struts. The manager walked to the machine shop and returned fifteen minutes later with a prototype. The worker and manager refined the design throughout the day. The next morning, everyone had their own versions of the tool waiting at their stations. Madrid’s trainers explained that the Toyota Production System—which in the United States would become known as “lean manufacturing”—relied on pushing decision making to the lowest possible level. Workers on the assembly line were the ones who saw problems first. They were closest to the glitches that were inevitable in any manufacturing process. So it only made sense to give them the greatest authority in finding solutions. “Every person in an organization has the right to be the company’s top expert at something,” John Shook, who trained Madrid as one of Toyota’s first Western employees, told me.


pages: 414 words: 101,285

The Butterfly Defect: How Globalization Creates Systemic Risks, and What to Do About It by Ian Goldin, Mike Mariathasan

"Robert Solow", air freight, Andrei Shleifer, Asian financial crisis, asset-backed security, bank run, barriers to entry, Basel III, Berlin Wall, Bretton Woods, BRICs, business cycle, butterfly effect, clean water, collapse of Lehman Brothers, collateralized debt obligation, complexity theory, connected car, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deglobalization, Deng Xiaoping, discovery of penicillin, diversification, diversified portfolio, Douglas Engelbart, Douglas Engelbart, Edward Lorenz: Chaos theory, energy security, eurozone crisis, failed state, Fellow of the Royal Society, financial deregulation, financial innovation, financial intermediation, fixed income, Gini coefficient, global pandemic, global supply chain, global value chain, global village, income inequality, information asymmetry, Jean Tirole, John Snow's cholera map, Kenneth Rogoff, light touch regulation, Long Term Capital Management, market bubble, mass immigration, megacity, moral hazard, Occupy movement, offshore financial centre, open economy, profit maximization, purchasing power parity, race to the bottom, RAND corporation, regulatory arbitrage, reshoring, Silicon Valley, six sigma, Stuxnet, supply-chain management, The Great Moderation, too big to fail, Toyota Production System, trade liberalization, transaction costs, uranium enrichment

“Lean Management” and “Just-in-Time” Production Although one best practice is the outsourcing of production, another crucial operation is that of lean management. We saw that the Toyota production system aimed at reducing muri (overburden), mura (inconsistency), and muda (waste). According to Toyota engineer and visionary Taiichi Ohno, muda can be broken down into six subcategories: 1. Waste of time on hand (waiting) 2. Waste of transportation 3. Waste of processing itself 4. Waste of stock at hand 5. Waste of movement 6. Waste of making defective products29 An investigation of these apparent wastages, however, shows that management just might be too lean. What the Toyota production system labels “waste of stock at hand” might also be thought of as buffer stock. What Ohno called “waste of overproduction” might ensure that supply chains do not experience gaps if one element in the supply chain fails or delivery is delayed.

Businessmen in Japan, led chiefly by innovators such as Taiichi Ohno, began to develop new practices focused on efficiency and the elimination of economic waste, which is known as muda.17 Toyota was one of the first companies to implement these practices, and it correspondingly achieved rapid success. It more than doubled its production, from just over 4 million cars in 1990 to nearly 10 million in 2009, eventually overtaking General Motors as the world’s largest car manufacturer. Toyota’s profits grew accordingly, from around US$1 billion in 1990 to over US$17 billion in 2008.18 The ideas that enabled this growth were famously embodied in the Toyota production system, whose main objectives were to eliminate three unwanted inefficiencies: muri (overburden), mura (inconsistency), and muda (waste).19 The system became known as “lean management” as an excoriation of these three Ms stripped down supply chains ever further. Toyota relied on efficient transportation platforms and data exchange networks to deliver parts when they were needed but not before.

On the industry level, however, such behavior reduces resilience and generates systemic instabilities in the same way that it drove the financial system into a state of homogeneity (with banks trading in similar assets using similar business models and making the same underlying assumptions) and complexity (with markets becoming increasingly opaque due to the high volume of complex securities traded). To see one manifestation of the risk ensuing from best practices, consider the case of a car manufacturer that profitably outsources the production of one of its key components, for instance, the steering system. We saw earlier how this practice formed a key part of the revolutionary Toyota production system. If only the industry leader delegates its production, there does not seem to be a sizable systemic risk. A failure at the production plant will affect the supply chain of the outsourcer but will leave the chains of its competitors intact. The industries dependent on the manufacturer (for example, logistics firms), as well as consumers, will have the opportunity to substitute the missing goods for competing products, leaving the market largely unaffected.


pages: 394 words: 57,287

Unleashed by Anne Morriss, Frances Frei

"side hustle", Airbnb, Donald Trump, future of work, gig economy, glass ceiling, Grace Hopper, Jeff Bezos, Netflix Prize, Network effects, performance metric, race to the bottom, ride hailing / ride sharing, Silicon Valley, Steve Jobs, TaskRabbit, Tony Hsieh, Toyota Production System, Travis Kalanick, Uber for X, women in the workforce

That’s what Toyota did when it decided to cooperate with its suppliers rather than compete with them. Toyota broke from the auto industry’s norm of brutalizing OEM suppliers and committed to making them better off instead.22 The calculation was simple, clear-eyed, industrial math: more efficient suppliers would mean lower costs for Toyota. And so Toyota gave its suppliers access to the wisdom of its famed Toyota Production System (TPS). Suppliers got to learn from TPS how to lower their own operating costs, while Toyota got a progressively lower price on parts. This extraordinary learning partnership gave suppliers the chance to expand their surplus not only with Toyota, but also with every other client they served. Again, we challenge you to bring this type of thinking to your relationships with all of your stakeholders.

Casey Newton, “TaskRabbit Is Blowing Up Its Business Model and Becoming the Uber for Everything,” The Verge, June 17, 2014, https://www.theverge.com/2014/6/17/5816254/taskrabbit-blows-up-its-auction-house-to-offer-services-on-demand. 20. Lee, “On the Record: TaskRabbit’s Stacy Brown-Philpot.” 21. James K. Willcox, “Cable TV Fees Continue to Climb,” Consumer Reports, October 15, 2019, https://www.consumerreports.org/tv-service/cable-tv-fees/. 22. Steven J. Spear and H. Kent Bowen, “Decoding the DNA of the Toyota Production System,” Harvard Business Review, September 1, 1999. 23. Shawn Achor et al., “9 Out of 10 People Are Willing to Earn Less Money to Do More-Meaningful Work,” Harvard Business Review, November 6, 2018. 24. Brittain Ladd, “Amazon CEO Jeff Bezos Believes This Is the Best Way to Run Meetings,” Observer, June 10, 2019, https://observer.com/2019/06/amazon-ceo-jeff-bezos-meetings-success-strategy/. 25.

., 167, 168, 177 Scooby Snacks, 78 Scrub Daddy, 157 self-distraction, 6–8, 18–19 self-improvement, 20–21 self-trust, 56–57 severity, 61, 63, 64–65, 66, 67, 77 sexual harassment, 106 Shark Tank, 156–157 “sink or swim” approach, 109, 112 SMART goals, 79 Smith, Fred, 166 social media, 52 Southwest Airlines, 136–138, 161 standards-devotion matrix, 62–67, 70–87 standard setting, 78–80 Starbucks, 168 Stonewall, 110 strategic confusion, 135 strategic value stick, 145, 150, 151, 155 strategic wedge, 152–153, 154–156, 191 strategy, 12–14, 132, 135–163 changing, 162 communication of, 156–161 defined, 136–138 growth, 152–154 planning, 154–156 strategic trade-offs, 136–141 suppliers and, 144–148 value-based, 135–136 value creation and, 141–144 writing about, 158 Stripe, 14 Su, Lisa, 62 Sulla, 72, 73 Super Pumped (Isaac), 172–173 Super You, 139 suppliers, 144–148, 153–154 talent attracting diverse, 95–104 retaining, 120–122 task forces, 92 TaskRabbit, 5, 148–152, 161 Tatum, Lisa Skeete, 14 teams building, 54 diverse, 48–49 leadership of, 13 terminations, 84, 85–86 360-degree reviews, 117–119 “toe-stepping,” 178–179 Ton, Zeynep, 147–148 tough love, 62, 86–87 toxic employees, 123 Toyota, 153–154 Toyota Production System (TPS), 153–154 trade-offs, 136–141 Trader Joe’s, 44 trust, 12, 13, 31–58 attributes of, 34, 36 authenticity and, 34–37, 47–54, 57 diagnosing your own level of, 35–39 empathy and, 34–41, 51, 57 as foundation of leadership, 33–34 logic and, 41, 45–46, 51, 57 rebuilding, 1, 55–56 in yourself, 56–57 trust anchor, 35, 37 trust drivers, 34, 35 trust triangle, 34, 36–37 trust wobble, 35–39, 42–44 Twitter, 102 Uber, 31–32, 51, 54–56, 114, 172–174, 178–179 United States Army, 16–18 USAID, 43 US Soccer Federation (USSF), 121–122 ValMax.


pages: 297 words: 93,882

Winning Now, Winning Later by David M. Cote

activist fund / activist shareholder / activist investor, Asian financial crisis, business cycle, business process, hiring and firing, Internet of things, Parkinson's law, Paul Samuelson, Silicon Valley, six sigma, Steve Jobs, Toyota Production System, trickle-down economics

“From Bitter to Sweet.” 3.Shawn Tully, “How Dave Cote Got Honeywell’s Groove Back,” Fortune, May 14, 2012, http://fortune.com/2012/05/14/how-dave-cote-got-honeywells-groove-back/. 4.Joe DeSarla (manufacturing head of Honeywell’s Automation and Control Solutions business unit), interview with author, November 5, 2018. 5.“Toyota Production System,” Toyota, accessed October 8, 2019, https://www.toyota-global.com/company/vision_philosophy/toyota_production_system/origin_of_the_toyota_production_system.html. 6.Joe DeSarla, interview with the author, November 5, 2018. 7.“Honeywell Performance,” Annual Report (2006): 10. 8.Joe DeSarla, interview with the author, November 5, 2018. 9.“Honeywell Performance,” 17. Chapter 5: Build a High-Performance Culture 1.Mark James, senior vice president of Human Resources, Security, and Communications at Honeywell, interview with the author, March 18, 2018. 2.Mark James, interview with the author, March 18, 2018. 3.Darius Adamczyk (CEO of Honeywell), interview with author, March 18, 2018.

“We’d never make progress because we just kept churning,” DeSarla said.4 If we could implement a uniform system for continuously improving operations in all of our plants, and if we could design that system to engage the brainpower of thousands of people in process change rather than relying on the weekend reading habits of individual managers, we could make sustained progress and over a period of years shift the entire company’s fortunes. But how, I asked myself, should we go about devising such a system? I thought immediately of the Toyota Production System (TPS), the automaker’s legendary system for improving processes at its plants to reduce waste and improve efficiency and effectiveness.5 I’d been reading about it for years, and from what I knew, this system wasn’t just about running plants better; rather, it was a way of structuring the workdays of managers and employees so that they would interact regularly. When issues arose, employees could immediately bring them to managers’ attention and be assured that managers would take those issues seriously and work to resolve them.


pages: 372 words: 101,678

Lessons from the Titans: What Companies in the New Economy Can Learn from the Great Industrial Giants to Drive Sustainable Success by Scott Davis, Carter Copeland, Rob Wertheimer

3D printing, activist fund / activist shareholder / activist investor, additive manufacturing, Airbnb, airport security, barriers to entry, business cycle, business process, clean water, commoditize, coronavirus, corporate governance, COVID-19, Covid-19, disruptive innovation, Elon Musk, factory automation, global pandemic, hydraulic fracturing, Internet of things, iterative process, low cost airline, low cost carrier, Marc Andreessen, megacity, Network effects, new economy, Ponzi scheme, profit maximization, random walk, RFID, ride hailing / ride sharing, risk tolerance, shareholder value, Silicon Valley, six sigma, skunkworks, software is eating the world, strikebreaker, Toyota Production System, Uber for X, winner-take-all economy

He eventually returned to the United States, settled in Bloomfield, Connecticut, and took a job at Jacobs. As the Jake Brake grew in popularity, Koenigsaecker rose to head the Bloomfield facility. He became frustrated with its low productivity, subpar product quality, and delays in getting product to customers. He believed the company needed a desperate change or it would fail. In 1988, as he struggled to control Jacobs’s spiraling problems, he learned that two architects of the Toyota Production System were in nearby Hartford for a guest lecture. Their names were Yoshiki Iwata and Chihiro Nakao, two of the most well-regarded factory experts in Japan. Koenigsaecker attended their lecture and convinced them to meet for dinner. He desperately sought their advice, and as the wine poured, the men became curious about this mess of a factory they were hearing about. Though they spoke little English and traveled with a translator, the two men and the general manager hit it off immediately.

Stock/option payouts were sized accordingly to drive buy-in from employees across the enterprise. If the company delivered on its financial goals, business unit presidents, corporate executives, and numerous other senior managers stood to make a lot of money. GOING LEAN Beyond talent, David also saw the need to make bigger moves with regard to manufacturing. During his time at Otis, David came to appreciate the power of Lean manufacturing and the Toyota Production System (TPS) after Otis had a falling out with its Japanese joint venture partner, Matsushita. Matsushita uncovered flaws in Otis’s quality control systems that were leading to frequent breakdowns of Otis elevators installed at Matsushita’s headquarters. The Japanese were appalled. Otis was an elevator company without working elevators. David flew to Japan, where his Japanese counterparts gave him a crash course on Lean/TPS.

Those are the ones we characterize as having factory floor excellence at a differentiated level. These companies are almost always far along the Lean manufacturing journey, and they benchmark internally and externally to best-in-class organizations. The best of the best go beyond the factory floor. They apply systematic tools to all their functions, including R&D, sales, purchasing, distribution, and back office. Danaher, for example, customized the Toyota Production System and created (or borrowed) more than a dozen tools to focus its employees. Each function has its own toolkit and is empowered to lever that toolkit to its fullest. Increasingly, we see these best-in-class organizations also utilize metrics around employee engagement and turnover. They focus as much on filtering out bad managers as they do on elevating good ones. The same principle holds true for those providing services rather than physical goods, or even software, healthcare, and other high-margin-type offerings.


pages: 232 words: 71,024

The Decline and Fall of IBM: End of an American Icon? by Robert X. Cringely

AltaVista, Bernie Madoff, business cycle, business process, cloud computing, commoditize, compound rate of return, corporate raider, full employment, if you build it, they will come, immigration reform, interchangeable parts, invention of the telephone, Khan Academy, knowledge worker, low skilled workers, Paul Graham, platform as a service, race to the bottom, remote working, Robert Metcalfe, Robert X Cringely, shareholder value, Silicon Valley, six sigma, software as a service, Steve Jobs, Toyota Production System, Watson beat the top human players on Jeopardy!, web application

Decisions about who to fire reportedly had been made; senior managers had been under orders to keep the news from their affected employees. I suggested at the time that if you worked at IBM Global Services, you should have asked your boss outright if you were on the list to be fired. It would have put the boss in a bind, sure, but might have led to a sort of Alice's Restaurant effect in which hypocrisy was confronted and exposed. The Toyota Production System—more magical thinking: IBM’s LEAN was supposed to have been based on another program called Lean (not LEAN) that characterized the Toyota Production System (TPS)—Toyota Motors’ answer to Henry Ford’s method of mass production. Academics from MIT had studied how Toyota became such a successful car company and discovered TPS, which they relabeled Lean Manufacturing, and described to the world. Lean was Toyota’s approach to almost every aspect of its business with the idea of continual quality improvement through the refinement of process.

When I implement lean with organizations, we do NOT lay off people as a result of any efficiency improvement. We create new opportunities by letting "extra" people work on continued lean efforts in other departments or we grow the business to create more work. As Jim Womack says, "Lean is about doing more with less, not doing less with lots less (people)." It's very sad for the IBM employees. I'm sorry you have lousy management. Don't blame this on real Lean, the Toyota Production System. Mark Graban | May 04, 2007 | 5:35PM IBM’s Lean a ‘perversion’ Lean works. Period. What IBM is doing is not lean. It is a perversion given an honorable name to make it appear more honorable. Lean is about removing waste--whether that's scrap, unnecessary motion, or wholly ineffective management. It's a shame actually. Had IBM really wanted to implement Lean (which, interestingly, is a service they offer their customers), they could have really saved the company.


pages: 406 words: 105,602

The Startup Way: Making Entrepreneurship a Fundamental Discipline of Every Enterprise by Eric Ries

activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, Airbnb, autonomous vehicles, barriers to entry, basic income, Ben Horowitz, Black-Scholes formula, call centre, centralized clearinghouse, Clayton Christensen, cognitive dissonance, connected car, corporate governance, DevOps, Elon Musk, en.wikipedia.org, fault tolerance, Frederick Winslow Taylor, global supply chain, index card, Jeff Bezos, Kickstarter, Lean Startup, loss aversion, Marc Andreessen, Mark Zuckerberg, means of production, minimum viable product, moral hazard, move fast and break things, move fast and break things, obamacare, peer-to-peer, place-making, rent-seeking, Richard Florida, Sam Altman, Sand Hill Road, secular stagnation, shareholder value, Silicon Valley, Silicon Valley startup, six sigma, skunkworks, Steve Jobs, the scientific method, time value of money, Toyota Production System, Uber for X, universal basic income, web of trust, Y Combinator

Given Toyota’s legendary status and business performance, it would have been perfectly understandable for them to reject The Lean Startup as something “not invented here.” Certainly my lack of a manufacturing background or formal training in “the Toyota way” might have given them pause. But in the open culture at Toyota, these issues never came up. As we worked together, several early adopters within the company revealed why they thought Lean Startup could be beneficial when added to Toyota Production System (TPS). Toyota has become world-leading in its ability to mass-produce high-quality products on time, on budget, and with industry-leading cost. The company has had some very successful innovations, like the Prius hybrid drive technology, but at the time of my meeting, they had not had the same level of success incorporating digital platform–style innovations into their products. As consumer preferences and autonomous vehicle technology both evolve, this threatens to become a company-defining vulnerability.

We spoke at great length and in great detail about The Lean Startup and about how it might apply at Toyota. Clearly, somebody in the entourage had read it—it had just been translated into Japanese. But Tomoyama-san himself did not speak at first; I couldn’t read his body language to tell what he thought. When he finally broke his silence, he said something I will never forget: “This is the missing half of the Toyota Production System. We have a system that is outstanding at producing what we specify, with high quality, but we don’t have a corresponding system for discovering what to produce in the first place.” He explained that Toyota had become so advanced in its ability to efficiently produce existing products that it had lost something of its early innovative spirit. Certainly the company had a method for discovering new ideas, but it was in need of improvement and integration with the company as a whole.

We took the best of what was brought to us and adapted it, and I think that’s part of the story, too. We added other tools, like a more disciplined growth-board process inspired by venture capital funding and cultural sayings. I think if you judge a culture by their communication, by the words they use, that’s how you know you’ve had a change.” Remember, it’s not even called “lean manufacturing” at Toyota—it’s the Toyota Production System. Learning to work in this new way is not about the rigid adoption of a series of practices; it’s about finding the ways the tools can be adapted and applied to each specific company. When people go to Intuit looking for a model of how to bring innovation into their companies—the company’s Design for Delight innovation process has been hugely successful—Bennett Blank, innovation leader at Intuit, explains, “They say ‘What can we replicate?’ 


pages: 123 words: 37,853

Do Improvise: Less push. More pause. Better results. A new approach to work (and life) (Do Books) by Poynton, Robert

Berlin Wall, complexity theory, Hans Rosling, iterative process, off grid, Skype, Toyota Production System

It also means being willing to let go of your own agenda and ego. Not only does everyone have an opportunity to lead, but if the group is to fulfil its potential everyone has the obligation to lead, when required. This isn’t unique to the stage. I once had a former soldier in a workshop. He observed, wryly, that in combat ‘the person leading is the person who can see best’. The same idea is in play in the famous Toyota Production System where any worker can stop the line. Every individual, at whatever level, is given the chance to lead and the power to exercise it. The person who sees best, leads. If this is an advantage in manufacturing, in a knowledge business it is vital. There is more information than anyone can absorb, so you need to be able to take advantage of many points of view. If leadership is concentrated in one individual, or even a few, you become vulnerable.

48–9 your own baggage (shadow story) and 42 complexity theory 118 ‘connective tissue’ 99 control: changing attitudes towards 116–17 companies which give employees 121–3 exerting influence without 31 imposing in areas where it isn’t appropriate 9, 11 as neither sensible or desirable 30 new ideas and 79§ paying attention to what you can 12, 52, 113–14 creativity 65–88 all creativity is co-creativity 85–6 and solving future world problems 66 creative doing, not creative thinking 72–6 creative process 67 ‘creativity is the new literacy’ 85 embracing constraint and 80–6 Game: Object Taps 87–8 importance of 66, 85–6 importance of play 69–72 ‘last letter, first letter’ 80, 81 popular image of 66–8 putting flow first 77–80 sets humans apart 85 Csikszentmihalyi, Mihaly 66 ‘Dance Your Ph.D’ (TED talk) 76 discomfort, accepting 10, 94, 96 eatbigfish 20, 138 Edison, Thomas 102 education 30, 114 either/or, seeing things as 114 Everything’s An Offer (EAO) 17, 18 ‘Facebook effect, the’ 23 ‘fit and well’ 35, 102 Fleming, Alexander 70 flexibility 90–1, 107, 121 future-proof 30, 101 games, killer 12–13, 27–8, 32, 33–8, 59–64, 78, 79, 81–2, 87–8, 99, 108–11, 112, 117, 118, 120, 125–37, 138 see also under individual game name General Motors 103 Gore Associates 121 Heifetz, Professor Ronald 107 Hirsch, Gary 27, 38, 45–6, 49, 61, 71, 88, 111, 118 Hollywood 67, 89, 93–4 Honda 122–3 ideas, generating new 10, 12, 70, 87, 88, 113 acting first 72–6 constraint and 80–6 creating a flow of 31 finding in areas your competitors don’t notice 20, 21, 22–5 flow and 77–80 games and see games in spite of how things are organised, not because of them 116 leaders and see leadership new ideas as combinations of old ones, re-expressed 14 play and 69–72 practice and 94, 95, 96 re-designing organisations and 121 using other people’s 98–100 IDEO 75 IKEA 28, 102–3, 111 image bank 85 improv in action 112–24 analysis, nature of 113–15 building into the design of an organization 119–23 education and 114 either/or ‘yes, and...’ 114 enthusiasm for taking things to pieces and 115–16 journeys and 115 order without control 113, 116–17 planning and 114–15 improv theatre 31, 112, 119 improvisation, nature of 8–13 incorporations (game) 135–7 intuition/hunch 30, 100, 101, 115, 123 journeys, improv and 115 Kamprad, Ingvar 28, 102–3 Keating, David 42–3 Kelleher, Herb 85 knee-jerk conclusions/reaction, resisting 18, 23–4 Kranz, Gene 100 leadership 89–111 accepting discomfort and 94, 95 distributed 91–2 ‘fit and well’ 102 flexibility and 107 fluid approach to 90–1 focus on your own experience 93 Game: Swedish Story 108–11 intuition/hunch and 100, 101, 123 level of trust in 99 looking for offers 101–3 mistakes and 93–4, 95, 102–3 new ideas and 98–9 no single leader 89–92 paying attention to others and 97–8, 99–100 practice and 93, 94–6 presence and 96–7 status and 104–6 value ‘connective tissue’ 99 Let Go 15, 16, 17, 18, 22–5, 29, 34–5, 55, 56, 70, 84, 91, 96, 101, 117, 119, 122, 125, 127, 129 listening 20, 21, 29, 41, 42, 44, 45, 47, 48, 49, 55–6, 60, 62, 81, 96–8, 107 Mandela, Nelson 97 Michelangelo 79 mistakes 26, 27, 54, 93–4, 95, 101, 102–3, 105, 113, 114–15, 123, 127 Morgan, Adam 20, 42, 51 Morning Star 121–2 Nike 48 ‘no’, saying 28, 42, 51, 54 Notice More 15, 16, 17, 18–22, 35, 81, 96–7, 119 Object Taps (game) 87–8 offer/offers: blocking 37, 40–2, 54, 56–7, 58, 59, 61, 62, 63, 64, 76, 78–80, 103, 120 errors and mistakes as 26–8, 103 Everything’s An Offer (EAO) 16, 17, 18, 26, 102–3 failure and breakdowns as 28–9 seeing objections as 56–7, 101–3 On Your Feet 38, 49, 71, 82, 84, 119, 122 One to Twenty (game) 125, 131–4 Pascale, Richard 122–3 paying attention 19, 22, 24, 96–8, 99–100 Pert, Candace 22 planning 9, 51–2, 62, 63, 81, 113, 114–15 practice, improvisational 12, 13, 14–31 Let Go 15, 16, 17, 18, 22–5, 29, 34–5, 55, 56, 70, 84, 91, 96, 101, 117, 119, 122, 125, 127, 129 Notice More 15, 16, 17, 18–22, 35, 81, 96–7, 119 Presents (game) 33–8, 62, 63, 111, 129 Use Everything 15–16, 17, 18, 26–9, 96, 119 presentations 39, 44–58 Presents (game) 33–8, 62, 63, 111, 129 Robinson, Sir Ken 85, 86 Rodriguez, Robert 28 Roshi, Suzuki 27 Rosling, Hans 53 SCRUM 119 Semco 121 senses 18–21, 76, 96 shadow story 24–5, 42, 56 Sloan, Alfred 103 software engineers 119–20 Southwest Airlines 85 status 49, 104–6, 107 storyteller improv games 27–8, 99, 108–11 Swedish Story (game) 108–11 taking things to pieces, enthusiasm for 8, 18, 29, 30, 113, 115–16 TED talks 53, 76 3M 121 Toyota Production System 91 Twain, Mark 54 Use Everything 15–16, 17, 18, 26–9, 35, 96, 119 Wake Wood (film) 42–3 weak signals 99–100 ‘whites of the eyes’ 46 ‘Yes, and’ (game) 59–64, 78 ‘yes, and...’, seeing things as 11, 42, 98, 114, 120 Published by The Do Book Company 2013 Works in Progress Publishing Ltd www.thedobook.co Text copyright © Robert Poynton 2013 Illustrations copyright © Andy Smith 2012 The right of Robert Poynton to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988 All rights reserved No part of this publication may be reproduced, stored in or introduced to a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of the publisher.


pages: 410 words: 114,005

Black Box Thinking: Why Most People Never Learn From Their Mistakes--But Some Do by Matthew Syed

Airbus A320, Alfred Russel Wallace, Arthur Eddington, Atul Gawande, Black Swan, British Empire, call centre, Captain Sullenberger Hudson, Checklist Manifesto, cognitive bias, cognitive dissonance, conceptual framework, corporate governance, creative destruction, credit crunch, crew resource management, deliberate practice, double helix, epigenetics, fear of failure, fundamental attribution error, Henri Poincaré, hindsight bias, Isaac Newton, iterative process, James Dyson, James Hargreaves, James Watt: steam engine, Johannes Kepler, Joseph Schumpeter, Kickstarter, Lean Startup, mandatory minimum, meta analysis, meta-analysis, minimum viable product, publication bias, quantitative easing, randomized controlled trial, selection bias, Shai Danziger, Silicon Valley, six sigma, spinning jenny, Steve Jobs, the scientific method, Thomas Kuhn: the structure of scientific revolutions, too big to fail, Toyota Production System, US Airways Flight 1549, Wall-E, Yom Kippur War

Toyota has a rather unusual production process. If anybody on the production line is having a problem or observes an error, that person pulls a cord that halts production across the plant. Senior executives rush over to see what has gone wrong and, if an employee is having difficulty performing her job, she is helped as needed by executives. The error is then assessed, lessons learned, and the system adapted. It is called the Toyota Production System, or TPS, and is one of the most successful techniques in industrial history. “The system was about cars, which are very different from people,” Kaplan says when we meet for an interview. “But the underlying principle is transferable. If a culture is open and honest about mistakes, the entire system can learn from them. That is the way you gain improvements.” Kaplan has bright eyes and a restless curiosity.

Errors can be thought of as the gap between what we hoped would happen and what actually did happen. Cutting-edge organizations are always seeking to close this gap, but in order to do so they have to have a system geared up to take advantage of these learning opportunities. This system may itself change over time: most experts are already trialing methods that they hope will surpass the Toyota Production System. But each system has a basic structure at its heart: mechanisms that guide learning and self-correction. Yet an enlightened system on its own is sometimes not enough. Even the most beautifully constructed system will not work if professionals do not share the information that enables it to flourish. In the beginning at Virginia Mason, the staff did not file Patient Safety Alerts. They were so fearful of blame and reputational damage that they kept the information to themselves.

Great coaches are not interested in merely creating an environment where adaptation can take place, they are focused on the “meta” question of which training system is the most effective. They don’t just want players to improve, but to do so as fast and as profoundly as possible. In a similar way, in health care, there are debates about whether the Virginia Mason System creates the most effective method of reducing medical errors, just as there are discussions about whether the Toyota Production System is the best way of improving efficiency on a production line. But both models will eventually be superseded. We will learn to create more effective evolutionary systems, not just in health care and manufacturing, but in aviation, too.* How, then, to select between competing evolutionary systems? A good way is to run a trial. In the case of soccer, for example, you could randomly divide a squad of youngsters with similar ability into two groups, then train them for a few weeks using different drills, then bring them back together and measure who has improved faster.


pages: 252 words: 78,780

Lab Rats: How Silicon Valley Made Work Miserable for the Rest of Us by Dan Lyons

Airbnb, Amazon Web Services, Apple II, augmented reality, autonomous vehicles, basic income, bitcoin, blockchain, business process, call centre, Clayton Christensen, clean water, collective bargaining, corporate governance, corporate social responsibility, creative destruction, cryptocurrency, David Heinemeier Hansson, Donald Trump, Elon Musk, Ethereum, ethereum blockchain, full employment, future of work, gig economy, Gordon Gekko, greed is good, hiring and firing, housing crisis, income inequality, informal economy, Jeff Bezos, job automation, job satisfaction, job-hopping, John Gruber, Joseph Schumpeter, Kevin Kelly, knowledge worker, Lean Startup, loose coupling, Lyft, Marc Andreessen, Mark Zuckerberg, McMansion, Menlo Park, Milgram experiment, minimum viable product, Mitch Kapor, move fast and break things, move fast and break things, new economy, Panopticon Jeremy Bentham, Paul Graham, paypal mafia, Peter Thiel, plutocrats, Plutocrats, precariat, RAND corporation, remote working, RFID, ride hailing / ride sharing, Ronald Reagan, Rubik’s Cube, Ruby on Rails, Sam Altman, Sand Hill Road, self-driving car, shareholder value, Silicon Valley, Silicon Valley startup, six sigma, Skype, Social Responsibility of Business Is to Increase Its Profits, software is eating the world, Stanford prison experiment, stem cell, Steve Jobs, Steve Wozniak, Stewart Brand, TaskRabbit, telemarketer, Tesla Model S, Thomas Davenport, Tony Hsieh, Toyota Production System, traveling salesman, Travis Kalanick, tulip mania, Uber and Lyft, Uber for X, uber lyft, universal basic income, web application, Whole Earth Catalog, Y Combinator, young professional

During the Second World War, the U.S. Department of War created a methodology called Training Within Industry to help overburdened defense contractors. Just like Taylor with his pig iron lifters, the idea of Training Within Industry was to get factory workers to crank out more stuff in less time. After the war, Japanese companies refined Training Within Industry into what came to be known as the Toyota Production System, which then evolved into Lean Manufacturing and just-in-time manufacturing. In the 1980s, two engineers at Motorola, the American consumer electronics giant, dreamed up a manufacturing system called Six Sigma, which big companies around the world spent the next two decades adopting. And so it goes. For the past hundred years, since the days of Frederick Taylor, companies have been latching on to new management fads, and each new fad runs its course, and then everyone leaps onto the next one, believing—like Charlie Brown running for the football in Lucy’s hands—that this time things will be different.

For the past hundred years, since the days of Frederick Taylor, companies have been latching on to new management fads, and each new fad runs its course, and then everyone leaps onto the next one, believing—like Charlie Brown running for the football in Lucy’s hands—that this time things will be different. Management Science Meets the Information Age Twentieth-century Taylorite methodologies like Six Sigma, Lean Manufacturing, and the Toyota Production System were developed for manufacturing physical things—cars, airplanes, lawn furniture, whatever. But now we’re in the Information Age, and most of us work with our brains, not our hands. Of course, with the rise of the Internet, clever management consultants started wondering if you could create a system that would optimize the productivity of knowledge workers and impose rigor and discipline on tasks like writing software code.

After graduation he worked for a Silicon Valley company that developed an online virtual world. In 2004, he and four others split off and built a new virtual world, a place where people create avatars to socialize and play games. They called the company IMVU. Ries was the chief technology officer. Ries stayed at IMVU for four years, and during his time there he became fascinated with the Toyota Production System and Lean Manufacturing. He theorized that you could take the principles that Toyota uses to assemble a Corolla and apply them to developing new software products, or even to the process of building a company. IMVU, his start-up, provided a real-life laboratory for testing his theories. In 2008, after leaving IMVU, Ries started writing a blog and giving speeches, laying out his theories.


pages: 199 words: 43,653

Hooked: How to Build Habit-Forming Products by Nir Eyal

Airbnb, AltaVista, Cass Sunstein, choice architecture, cognitive bias, cognitive dissonance, en.wikipedia.org, framing effect, game design, Google Glasses, IKEA effect, Inbox Zero, invention of the telephone, iterative process, Jeff Bezos, Lean Startup, Mahatma Gandhi, Mark Zuckerberg, meta analysis, meta-analysis, Oculus Rift, Paul Buchheit, Paul Graham, Peter Thiel, QWERTY keyboard, Richard Thaler, Silicon Valley, Silicon Valley startup, Snapchat, TaskRabbit, telemarketer, the new new thing, Toyota Production System, Y Combinator

Dorsey believes a clear description of users—their desires, emotions, the context with which they use the product—is paramount to building the right solution. In addition to Dorsey’s user narratives, tools like customer development,11 usability studies, and empathy maps12 are examples of methods for learning about potential users. One method is to try asking the question “Why?” as many times as it takes to get to an emotion. Usually, this will happen by the fifth why. This is a technique adapted from the Toyota Production System, described by Taiichi Ohno as the “5 Whys Method.” Ohno wrote that it was “the basis of Toyota’s scientific approach . . . by repeating ‘why?’ five times, the nature of the problem as well as its solution becomes clear.”13 When it comes to figuring out why people use habit-forming products, internal triggers are the root cause, and “Why?” is a question that can help drill right to the core.

“The Power of User Narratives: Jack Dorsey (Square),” video, Entrepreneurial Thought Leaders Lecture (Stanford University, 2011), http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2644. 11. Eric Ries, “What Is Customer Development?,” Startup Lessons Learned (accessed Nov. 12, 2013), http://www.startuplessonslearned.com/2008/11/what-is-customer-development.html. 12. Rich Crandall, “Empathy Map,” the K12 Lab Wiki (accessed Nov. 12, 2013), https://dschool.stanford.edu/groups/k12/wiki/3d994/Empathy_Map.html. 13. Taiichi Ohno, Toyota Production System: Beyond Large-scale Production (Portland, OR: Productivity Press, 1988). 14. For more on the need for social belonging, see: Susan T. Fiske, Social Beings: A Core Motives Approach to Social Psychology (Hoboken: Wiley, 2010). Chapter 3: Action 1. “What Causes Behavior Change?,” B. J. Fogg’s Behavior Model (accessed Nov. 12, 2013), http://behaviormodel.org. 2. Edward L. Deci and Richard M.


pages: 624 words: 127,987

The Personal MBA: A World-Class Business Education in a Single Volume by Josh Kaufman

Albert Einstein, Atul Gawande, Black Swan, business cycle, business process, buy low sell high, capital asset pricing model, Checklist Manifesto, cognitive bias, correlation does not imply causation, Credit Default Swap, Daniel Kahneman / Amos Tversky, David Heinemeier Hansson, David Ricardo: comparative advantage, Dean Kamen, delayed gratification, discounted cash flows, Donald Knuth, double entry bookkeeping, Douglas Hofstadter, en.wikipedia.org, Frederick Winslow Taylor, George Santayana, Gödel, Escher, Bach, high net worth, hindsight bias, index card, inventory management, iterative process, job satisfaction, Johann Wolfgang von Goethe, Kevin Kelly, Kickstarter, Lao Tzu, lateral thinking, loose coupling, loss aversion, Marc Andreessen, market bubble, Network effects, Parkinson's law, Paul Buchheit, Paul Graham, place-making, premature optimization, Ralph Waldo Emerson, rent control, side project, statistical model, stealth mode startup, Steve Jobs, Steve Wozniak, subscription business, telemarketer, the scientific method, time value of money, Toyota Production System, tulip mania, Upton Sinclair, Vilfredo Pareto, Walter Mischel, Y Combinator, Yogi Berra

SHARE THIS CONCEPT: http://book.personalmba.com/scale/ Accumulation Sometimes when I consider what tremendous consequences come from little things, I am tempted to think: there are no little things. —BRUCE BARTON, ADVERTISING EXECUTIVE BEST KNOWN FOR CREATING THE BETTY CROCKER BRAND At this very moment, a Toyota engineer somewhere in the world is making a very small change to the Toyota Production System, one of the most efficient manufacturing Systems in the world. Alone, the change may not look like much—a small tweak, a slight restructure, a bit of material or effort saved. Taken together, however, the effects are huge—Toyota employees implement over 1 million improvements to the Toyota Production System every year. It’s little wonder that Toyota is now the world’s largest and most valuable automotive manufacturer.4 Small helpful or harmful behaviors and inputs tend to Accumulate over time, producing huge results. According to Lean Thinking by James P.

Understanding what your offer’s Value Stream looks like is critically important if you want to be able to deliver value to your customers quickly, reliably, and consistently. You can think of the Value Stream as a combination of your Value Creation and Value Delivery processes. Very often, your offer moves directly from the first into the second. Even though the purposes of these core processes are very different, treating them as one big process can help you improve your ability to deliver the value you create. The Toyota Production System (TPS) was the first large-scale manufacturing operation to systematically examine its entire Value Stream on a regular basis. Analyzing the production system in great detail paved the way for an ongoing series of small, incremental improvements: Toyota engineers make over 1 million improvements to the TPS each year. As a result, the company consistently reaps huge rewards in speed, consistency, and reliability, which has greatly improved Toyota’s Reputation as a company with very high-quality products—that is, until the Paradox of Automation (discussed later) destroyed that Reputation.

See Systems improvement recommended reading second-order effects selection test slack stock uncertainty Systems analysis analytical honesty confidence interval context correlation and causation deconstruction garbage in, garbage out humanization key performance indicator mean, median, mode, midrange measurement norms proxy ratios recommended reading sampling segmentation Systems improvement automation cessation checklist critical few diminishing returns experimental mind-set fail-safe friction middle path optimization recommended reading refactoring resilience scenario planning standard operating procedure (SOP) stress testing Take the puppy home strategy Target monthly revenue (TMR) Taylor, Frederick W. Teamwork. See Working with others Tesco Testimonials Testing Tharp, Roland Third parties, as buffers Threat lockdown, mental Throughput Time, as universal currency Time value of money Tools, as force multipliers Toyota Production System (TPS) Trade-offs creating, example of incremental degradation as relative importance testing understanding, importance of between universal currencies in value creation Transactions, completing. See Sales Travel Web sites Trust background checks increasing, with damaging admission and sales transaction See also Reputation Tversky, Amos Ultradian rhythm Unbundling.


pages: 309 words: 114,984

The Digital Doctor: Hope, Hype, and Harm at the Dawn of Medicine’s Computer Age by Robert Wachter

"Robert Solow", activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, AI winter, Airbnb, Atul Gawande, Captain Sullenberger Hudson, Checklist Manifesto, Chuck Templeton: OpenTable:, Clayton Christensen, collapse of Lehman Brothers, computer age, creative destruction, crowdsourcing, deskilling, disruptive innovation, en.wikipedia.org, Erik Brynjolfsson, everywhere but in the productivity statistics, Firefox, Frank Levy and Richard Murnane: The New Division of Labor, Google Glasses, Ignaz Semmelweis: hand washing, Internet of things, job satisfaction, Joseph Schumpeter, Kickstarter, knowledge worker, lifelogging, medical malpractice, medical residency, Menlo Park, minimum viable product, natural language processing, Network effects, Nicholas Carr, obamacare, pattern recognition, peer-to-peer, personalized medicine, pets.com, Productivity paradox, Ralph Nader, RAND corporation, Second Machine Age, self-driving car, Silicon Valley, Silicon Valley startup, six sigma, Skype, Snapchat, software as a service, Steve Jobs, Steven Levy, the payments system, The Wisdom of Crowds, Thomas Bayes, Toyota Production System, Uber for X, US Airways Flight 1549, Watson beat the top human players on Jeopardy!, Yogi Berra

Studies have found that one important cause of errors is interruptions, so clinicians at UCSF and elsewhere have been counseled to avoid them, particularly when their colleagues are performing critical and exacting tasks like giving children potentially dangerous medications. In some hospitals, nurses now mix or collect their medications wearing vests that say “Don’t Interrupt Me,” or stand inside a “Do Not Interrupt” zone marked off with red tape. But there was probably something else—more subtle and more cultural—at play. Today, many healthcare organizations study the Toyota Production System, which is widely admired as a model for safe and defect-free manufacturing. One element of the TPS is known as “Stop the Line.” On Toyota’s busy assembly line, it is every frontline worker’s right—responsibility, really—to stop the line if he thinks something may be amiss. The assembly line worker does this by pulling a red rope that runs alongside the entire line. When a Toyota worker pulls the cord for a missing bolt or a misaligned part, a senior manager scrambles to determine what might be wrong and how to fix it.

Coiera, “A Systematic Review of the Psychological Literature on Interruption and Its Patient Safety Implications,” Journal of the American Medical Informatics Association 19:6–12 (2012); and J. Craig, F. Clanton, and M. Demeter, “Reducing Interruptions During Medication Administration: The White Vest Study,” Journal of Research in Nursing 19: 248–261 (2014). 161 One element of the TPS is known as “Stop the Line” See C. Furman and R. Caplan, “Applying the Toyota Production System: Using a Patient Safety Alert System to Reduce Error,” Joint Commission Journal on Quality and Patient Safety 33:376–386 (2007). 162 In a seminal 1983 article, Lisanne Bainbridge L. Bainbridge, “Ironies of Automation,” Automatica 19:775–779 (1983). 162 In a famous 1995 case, the cruise ship Royal Majesty National Transportation Safety Board, Grounding of the Panamanian Passenger Ship Royal Majesty on Rose and Crown Shoal Near Nantucket, Massachusetts, June 10, 1995 (Washington DC: National Transportation Safety Board, 1997). 162 In a dramatic study illustrating the hazards K.

See regional health information exchanges (RHIOs) Rock Health, 237–240 Röntgen, Wilhelm, 50 Rothman, David, 30 Royal Majesty, 162 satisficing, 161 Schiff, Gordon, 87–88 Schmidt, Eric, 185 Schumpeter, Joseph, 250–251 Schwab, Robert, 65–66 scribes, 75, 82 The Second Machine Age (Brynjolfsson and McAfee), 94, 244 Semmelweis, Ignaz, 23 Septra, 128, 136–137 See also Pablo Garcia medical error case Shenkin, Budd, 174 Shorter, Edward, 30 Shortliffe, Ted, 102 shovel ready, 14–15 Siegler, Eugenia, 39 simple transforms, 5, 113 Sinsky, Christine, 75, 78–79, 83–86, 87, 210 Sixth International Conference on AIDS, 195 Slack, Warner, 93, 276 Slack’s Law, 276 Smart Patients, 179–180, 196–200 Smarter than You Think (Thompson), 276 Smith, Mark, 108, 113, 122–123, 183–185, 188 SOAP note, 46 social media, 177–178 Stack, Steve, 73 stacking, 53 standardization, 41–42, 244 hospital standardization, 36 standards, 13 See also Meaningful Use Sterile Cockpit, 83 stethoscopes, 32, 33 Stoller, James, 77 Stop the Line, 161 Strangers at the Bedside (Rothman), 30 Sullenberger, Chesley “Sully”, 147, 270 supervised learning, 112 Swiss cheese model, 131–132 Sydenham, Thomas, 31 Szolovits, Peter, 100–101, 110, 112 Tecco, Halle, 238–239 teleradiology, 60–61 See also radiology televisits, 261 tethered personal health records, 185 See also PHRs third-party payers, and medical records, 37–39 Thompson, Clive, 276 Tillack, Allison, 55, 56–57, 58 Top 100 lists, 40 Toyota Production System, 161 trimethoprim-sulfamethoxazole. See Septra Tsoukas, Hari, 56 UCSF Medical Center Benioff Children’s Hospital, 127–130 computer systems, 132–134 Epic Systems, 224–225 MyChart portal, 133 universal patient identifiers, 190 upcoding of diagnoses, 81–83 See also kwashiorkor usability, 74, 214–215, 249 user-centered design, 269 lack of, 76–77 vendor lock, 217 vendors, and Meaningful Use, 212–213 Verghese, Abraham, 27–28, 45, 77, 93, 113, 273 Vioxx, 183 Wah, Robert, 17, 246 Walker, Jan, 175, 176 Warner, David, 174 Watson supercomputer, 94, 108–109 in healthcare, 103–104, 105–106, 118 on Jeopardy, 95, 102 therapies, 111–113 Weed, Larry, 45–46 Weiner, Michael, 105 WellPoint, 17 work flow, 243–244 See also productivity paradox x-rays, 32 See also radiology Zeiger, Roni, 76, 179–181, 186, 196, 199–200 About the Author Robert Wachter is professor and associate chair of the Department of Medicine at the University of California, San Francisco, where he directs the 60-physician Division of Hospital Medicine.


pages: 252 words: 70,424

The Self-Made Billionaire Effect: How Extreme Producers Create Massive Value by John Sviokla, Mitch Cohen

business cycle, Cass Sunstein, Colonization of Mars, corporate raider, Daniel Kahneman / Amos Tversky, Elon Musk, Frederick Winslow Taylor, game design, global supply chain, James Dyson, Jeff Bezos, John Harrison: Longitude, Jony Ive, loss aversion, Mark Zuckerberg, market design, old-boy network, paper trading, RAND corporation, randomized controlled trial, Richard Thaler, risk tolerance, self-driving car, Silicon Valley, smart meter, Steve Ballmer, Steve Jobs, Steve Wozniak, Tony Hsieh, Toyota Production System, young professional

Most ideas will be small, but they can empower people to embrace changes that redirect the business and make people at all levels feel that their contributions mean something, a seemingly minute action that can embolden people to present even more radical ideas. Students of the “Lean” approach to change management will rightly see our encouragement for Lean-supported modes of thinking in these recommendations. Continuous improvement, one of the central tenets of the Toyota Production System from which Lean is derived, instills an organizational belief that processes and approaches can always get better, and that the people employed to do the work are in the best position to see opportunities in their zone of influence and act on them. In the realm of Empathetic Imagination, continuous improvement creates an environment in which small ideas have the potential to snowball into big ones, with the added benefit that it helps reveal the emergent Producers in your midst and gives them the opportunity to implement ideas.

., 71, 72, 120, 216 Student, 100 Summers, Larry, 213 SunAmerica, 200 Sun Life Insurance, 200 Sun Life Stadium, 213 Sun Microsystems, 183, 214 Suzuki, 64, 210 Sviokla, John, 10 Swensen, David, 102, 103 Sydney Opera House, 140 Sze Man Bok, 45–46, 204 Taiwan, 204 talent, 14 reshifting balance of, 21–24 Tampa Bay Buccaneers, 34 Target, 55 Taylor, Frederick Winslow, 77 Taylor, Glen, 37, 48–51, 52, 75, 216–17 Taylor Corporation, 48, 217 technology, 11–12 TechShop, 179 TED, 178 Telecom Italia, 210 Teleflora, 21, 152, 212 Tesla, 211 Tesla, Nikola, 178 Teva Pharmaceuticals, 203 Texas, University of, at Austin, 202 Thailand, 7 Thaler, Richard, 117 Third Wave, The (Toffler & Toffler), 68 time: duality of, 60–62 imagination and, 73–77 time management, individual, 80–81 Time Warner Center, 107, 123, 127, 213 timing, 25, 82–83 fast and slow, 62–63 lessons in, 63–71 Toffler, Alvin and Heidi, 68 Toyota, 53 Toyota Production System, 54 Trader Joe’s, 196 Trans International Airlines, 207 Treasury Department, U.S., 213 Tufts University, 211 Tversky, Amos, 115 Twain, Mark, 1 20th Century Fox, 211 Twitter, 63 Undercover Boss, 53, 225n Unilever, 209–10 Union Pacific Railroad, 196 Uniqlo, 65–66, 219 Unique Clothing Warehouse, 219 United Nations, 199 United States, 8, 65, 66 USAID, 174, 175 Vancouver, Canada, 38, 39, 217 Vatera Healthcare Partners, 85, 206 Vidal Sassoon, 144 Villette, Michel, 121–22 Virgin Group, Ltd., 114, 130, 199 Vuillermot, Catherine, 121–22 Vulcan Ventures, 196 Wagner, Todd, 154, 201 Wall Street, 103, 107–8, 124, 126, 198 Wall Street Journal, 34, 211 Walmart, 55 Warhol, Andy, 59 Warner Bros.


pages: 86 words: 27,453

Why We Work by Barry Schwartz

Atul Gawande, call centre, deskilling, Frederick Winslow Taylor, future of work, if you build it, they will come, invisible hand, job satisfaction, meta analysis, meta-analysis, Silicon Valley, The Wealth of Nations by Adam Smith, Toyota Production System

In what has become a famous example of the benefits of organizing production in a way that engages employees, Toyota, whose system of production gives workers a great deal more autonomy and variety in what they do than a typical assembly line, took over a failed General Motors plant in California in 1984. They didn’t change the workforce. They didn’t change the equipment. All they changed was the production system. The result was a dramatic improvement in both productivity and quality. When you create an environment in which workers are respected, they want to be there and they want to work. The labor costs associated with the production of vehicles dropped almost 50 percent under the Toyota production system. There is little reason to believe that we as a society have learned Toyota’s lesson. Indeed, we seem to have moved in the opposite direction, turning jobs that demand judgment, flexibility, challenge, and engagement into the white-collar equivalent of factory work. Consider education. There is much hand wringing about the failures of American education, which seem to be pervasive.


pages: 327 words: 103,336

Everything Is Obvious: *Once You Know the Answer by Duncan J. Watts

active measures, affirmative action, Albert Einstein, Amazon Mechanical Turk, Black Swan, business cycle, butterfly effect, Carmen Reinhart, Cass Sunstein, clockwork universe, cognitive dissonance, coherent worldview, collapse of Lehman Brothers, complexity theory, correlation does not imply causation, crowdsourcing, death of newspapers, discovery of DNA, East Village, easy for humans, difficult for computers, edge city, en.wikipedia.org, Erik Brynjolfsson, framing effect, Geoffrey West, Santa Fe Institute, George Santayana, happiness index / gross national happiness, high batting average, hindsight bias, illegal immigration, industrial cluster, interest rate swap, invention of the printing press, invention of the telescope, invisible hand, Isaac Newton, Jane Jacobs, Jeff Bezos, Joseph Schumpeter, Kenneth Rogoff, lake wobegon effect, Laplace demon, Long Term Capital Management, loss aversion, medical malpractice, meta analysis, meta-analysis, Milgram experiment, natural language processing, Netflix Prize, Network effects, oil shock, packet switching, pattern recognition, performance metric, phenotype, Pierre-Simon Laplace, planetary scale, prediction markets, pre–internet, RAND corporation, random walk, RFID, school choice, Silicon Valley, social intelligence, statistical model, Steve Ballmer, Steve Jobs, Steve Wozniak, supply-chain management, The Death and Life of Great American Cities, the scientific method, The Wisdom of Crowds, too big to fail, Toyota Production System, ultimatum game, urban planning, Vincenzo Peruggia: Mona Lisa, Watson beat the top human players on Jeopardy!, X Prize

Subsequently, the bright-spot approach has been used successfully in developing nations, and even in the United States where certain hand-washing practices in a small number of hospitals are being replicated in order to help reduce bacterial infections—the leading cause of preventable hospital deaths—throughout the medical system.28 The bright-spot approach is also similar to what political scientist Charles Sabel calls bootstrapping, a philosophy that has begun to gain popularity in the world of economic development. Bootstrapping is modeled on the famous Toyota Production System, which has been embraced not only across the Japanese automotive firms but also more broadly across industries and cultures. The basic idea is that production systems should be engineered along “just in time” principles, which assure that if one part of the system fails, the whole system must stop until the problem is fixed. At first, this sounds like a bad idea (and it has led Toyota to the brink of disaster at least once), but its advantage is that it forces organizations to address problems quickly and aggressively.

Gawande cautions that it is still uncertain how well the initial results will last, or whether they will generalize to other hospitals; however, a recent controlled experiment (Marra et al. 2010) suggests that they might. 29. See Sabel (2007) for a description of bootstrapping. See Watts (2003, Chapter 9) for an account of Toyota’s near catastrophe with “just in time” manufacturing, and also their remarkable recovery. See Nishiguchi and Beaudet (2000) for the original account. See Helper, MacDuffie, and Sabel (2000) for a discussion of how the principles of the Toyota production system have been adopted by American firms. 30. See Sabel (2007) for more details on what makes for successful industrial clusters, and Giuliani, Rabellotti, and van Dijk (2005) for a range of case studies. See Lerner (2009) for cautionary lessons in government attempts to stimulate innovation. 31. Of course in attempting to generalize local solutions, one must remain sensitive to the context in which they are used.


Data and the City by Rob Kitchin,Tracey P. Lauriault,Gavin McArdle

A Declaration of the Independence of Cyberspace, bike sharing scheme, bitcoin, blockchain, Bretton Woods, Chelsea Manning, citizen journalism, Claude Shannon: information theory, clean water, cloud computing, complexity theory, conceptual framework, corporate governance, correlation does not imply causation, create, read, update, delete, crowdsourcing, cryptocurrency, dematerialisation, digital map, distributed ledger, fault tolerance, fiat currency, Filter Bubble, floating exchange rates, global value chain, Google Earth, hive mind, Internet of things, Kickstarter, knowledge economy, lifelogging, linked data, loose coupling, new economy, New Urbanism, Nicholas Carr, open economy, openstreetmap, packet switching, pattern recognition, performance metric, place-making, RAND corporation, RFID, Richard Florida, ride hailing / ride sharing, semantic web, sentiment analysis, sharing economy, Silicon Valley, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, smart contracts, smart grid, smart meter, social graph, software studies, statistical model, TaskRabbit, text mining, The Chicago School, The Death and Life of Great American Cities, the market place, the medium is the message, the scientific method, Toyota Production System, urban planning, urban sprawl, web application

In many ways, the workers’ experiences are situated in a particular epoch of transition for the automobile industry as linear car production began to struggle, and companies looked to Japan for a solution. The result was a move from Henry Ford’s never-ending production line as a linear production ledger to the Toyota model in which production contained a reflexivity much closer how we might understand the blockchain; that is, how people become part of these systems and could develop practices within them. In 1970, Toyota launched the Toyota Production System (TPS), a method that managed car manufacture and employees more effectively than the failing Fordist model, which had struggled in 1950s and 1960s in Japan. ‘Just-In-Time’ was the title of the manufacturing and conveyance model that informed the demand of car parts in terms of which part was needed, when it was needed, and how many were required. Just-In-Time used a Toyota model for time ‘Takt-Time’ that was used to monitor the production time against the volume required (Ohno 1995: 29).

Harvey, D. (1990) The Condition of Postmodernity. Cambridge, MA: Blackwell. Harvey, D. (1996) Justice, Nature & the Geography of Difference. Oxford: Blackwell. Maurer, B. (2006) ‘The anthropology of money’, Annual Review of Anthropology 35: 15–36. Maurer, B., Nelms, T.C. and Swartz, L. (2013) ‘“When perhaps the real problem is money itself!”: the practical materiality of Bitcoin’, Social Semiotics 23(2): 261–277. Ohno, T. (1995) Toyota Production System: Beyond Large-Scale Production. Portland, OR: Productivity Press. Parkes, D. and Thrift, N. (1980) Times, Spaces and Places, A Chronogeographic Perspective. Bath: Pitman Press. Pialoux, M. (1999) ‘The old worker and the new plant’, in P. Bourdieu et al. (eds), The Weight of the World. Stanford, CA: Stanford University Press, pp. 267–281. Rohter, L. (2014) ‘Respect and awards, but still no Oscar, the Dardenne brothers discuss “Two Days, One Night”’, New York Times.


pages: 326 words: 106,053

The Wisdom of Crowds by James Surowiecki

AltaVista, Andrei Shleifer, asset allocation, Cass Sunstein, coronavirus, Daniel Kahneman / Amos Tversky, experimental economics, Frederick Winslow Taylor, George Akerlof, Howard Rheingold, I think there is a world market for maybe five computers, interchangeable parts, Jeff Bezos, John Meriwether, Joseph Schumpeter, knowledge economy, lone genius, Long Term Capital Management, market bubble, market clearing, market design, Monkeys Reject Unequal Pay, moral hazard, Myron Scholes, new economy, offshore financial centre, Picturephone, prediction markets, profit maximization, Richard Feynman, Richard Feynman: Challenger O-ring, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, shareholder value, short selling, Silicon Valley, South Sea Bubble, The Nature of the Firm, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Toyota Production System, transaction costs, ultimatum game, Yogi Berra, zero-sum game

Similar results from both experimental and empirical studies show that allowing people to make decisions about their own working conditions often makes a material difference in how they perform. The second thing decentralization makes easier is coordination. Instead of having to make constant resort to orders and threats, companies can rely on workers to find new, more efficient ways of getting things done. That reduces the need for supervision, cuts transaction costs, and allows managers to concentrate on other things. The supreme example of this kind of approach is the Toyota Production System, Toyota’s legendarily efficient system for making cars. At the core of TPS is the idea that frontline workers should be trained to have a wide range of skills and that they have to understand how the production process works from the bottom up if they are to take best advantage of it. At the same time, Toyota has eliminated the classic assembly line, in which each worker was isolated from those around him and, often, worked on a single piece of a vehicle, and substituted for it teams of workers who are effectively put in charge of their own production process.

For a defense of the bottom-up model see Joseph Blasi and Eric Kruse, In the Company of Owners (New York: Basic Books, 2003); and for a critique of it see James Hoopes, False Prophets (Cambridge: Perseus Publishing, 2003). See also William Joyce, Nitin Nohria, and Bruce Roberson, What Really Works: The 4 + 2 Formula for Sustained Business Success (New York: HarperCollins, 2003). Alfred P. Sloan, My Years with General Motors (New York: Doubleday, 1964). The definitive Western account of the Toyota Production System can be found in James P. Womack, Daniel T. Jones, and Daniel Roos, The Machine That Changed the World: The Story of Lean Production (New York: HarperCollins, 1991). Keller, Rude Awakening: 101. Frederick Winslow Taylor is cited in Stephan H. Haeckel, Adaptive Enterprise (Boston: Harvard Business School Press, 1999): 30. Rakesh Khurana, Searching for a Corporate Savior (Princeton: Princeton University Press, 2002).


pages: 379 words: 113,656

Six Degrees: The Science of a Connected Age by Duncan J. Watts

Berlin Wall, Bretton Woods, business process, corporate governance, Drosophila, Erdős number, experimental subject, fixed income, Frank Gehry, Geoffrey West, Santa Fe Institute, industrial cluster, invisible hand, Long Term Capital Management, market bubble, Milgram experiment, MITM: man-in-the-middle, Murray Gell-Mann, Network effects, new economy, Norbert Wiener, Paul Erdős, peer-to-peer, rolodex, Ronald Coase, scientific worldview, Silicon Valley, supply-chain management, The Nature of the Firm, The Wealth of Nations by Adam Smith, Toyota Production System, transaction costs, transcontinental railway, Vilfredo Pareto, Y2K

Churning out many of the world’s best-engineered cars at prices that made even their European competitors wince, year after year Toyota was making Detroit look like an eight-hundred-pound gorilla trying to do aerobics. It might come as a surprise then that the industrial behemoth that produces Toyota cars and trucks is much more than a single company. In actuality, it is a group of roughly two hundred companies integrated by their common interest in supplying the Toyota company itself with everything from electronic components to seat covers, and also by what is known as the Toyota Production System. TPS is a collection of the same kinds of manufacturing and design protocols that have been adopted by most Japanese (and these days American) industrial firms, so in a way it’s nothing special. What makes it unique is the almost religious zeal with which it is implemented inside the Toyota group. Companies in the group, even those companies that compete with each other for Toyota’s business, cooperate to an extent that almost seems counter to their interests.

And finally, in the whirlwind of the crisis, Aisin became extremely difficult to contact. Even after installing thousands of additional phone lines, so much information was flowing in and out in the form of queries, suggestions, solutions, and new problems, that the company was often unreachable, leaving the cavalry largely to its own devices. This, however, is where all the training kicked in. After years of experience with the Toyota Production System, all the companies involved possessed a common understanding of how problems should be approached and solved. To them, simultaneous design and engineering was an everyday activity, and because Aisin knew this, they were able to specify their requirements to a minimum level of detail, allowing potential suppliers the greatest possible latitude in deciding how to proceed. Even more important, while the particular situation was unfamiliar, the idea of cooperating was not.


Seeking SRE: Conversations About Running Production Systems at Scale by David N. Blank-Edelman

Affordable Care Act / Obamacare, algorithmic trading, Amazon Web Services, bounce rate, business continuity plan, business process, cloud computing, cognitive bias, cognitive dissonance, commoditize, continuous integration, crowdsourcing, dark matter, database schema, Debian, defense in depth, DevOps, domain-specific language, en.wikipedia.org, fault tolerance, fear of failure, friendly fire, game design, Grace Hopper, information retrieval, Infrastructure as a Service, Internet of things, invisible hand, iterative process, Kubernetes, loose coupling, Lyft, Marc Andreessen, microservices, minimum viable product, MVC pattern, performance metric, platform as a service, pull request, RAND corporation, remote working, Richard Feynman, risk tolerance, Ruby on Rails, search engine result page, self-driving car, sentiment analysis, Silicon Valley, single page application, Snapchat, software as a service, software is eating the world, source of truth, the scientific method, Toyota Production System, web application, WebSocket, zero day

Start by Leaning on Lean If you are going to transform how your operations organization works, you might as well leverage a proven body of transformational knowledge. The Lean manufacturing movement has produced a wealth of design patterns and techniques5 that we can apply to improve any work process. In particular, it is the principle of Kaizen (which roughly translates to “continuous improvement”), born from the Toyota Production System, that speeds transformations and drives an organization’s ability to learn continuously. To bring Kaizen to an organization, there is a method called Kata, also based on Toyota Production System. Kata is an excellent methodology to apply to the challenge of eliminating toil, silos, and request queues. Kata encourages organizations to look at the end-to-end flow of work and methodically experiment until the desired outcome is reached. Teams are encouraged to see beyond their work silo and think holistically about problems.

indirect impact of downtime, Indirect impact LinkedIn case study, Project Operating Expense and Abandonment Expense negotiating SLAs with vendors, Negotiating SLAs with vendors running the black box like a service, Running the Black Box Like a Service SLIs, SLOs, SLAs, Service-Level Indicators, Service-Level Objectives, and SLAs-Negotiating SLAs with vendors SLOs, SLOs working with, Working with Third Parties Shouldn’t Suck-Closing Thoughts third-party integrationsautomation, Automation communication, Communication contract termination, Decommissioning decommissioning, Decommissioning disaster planning, Disaster planning LinkedIn case study, Testing and staging logging, Logging monitoring, Monitoring-Uses for RUM playbook for, Playbook: From Staging to Production-Closing Thoughts reporting APIs, Logging synthetic monitoring, Uses for synthetic monitoring testing and staging, Testing and staging tooling, Tooling Three Mile Island nuclear disaster, Critical Decisions Made Under Uncertainty and Time Pressure Cannot Be Scripted, Every Incident Could Have Been Worse throttling, Getting Clever with State ticket-driven request queues, Silos Get in the Way-Silos Get in the Way time quanta, Time Quanta time to detect (TTD), The Virtuous Cycle to the Rescue: If You Don’t Measure It…, Surrogate Metrics time to engage (TTE), The Virtuous Cycle to the Rescue: If You Don’t Measure It…, Surrogate Metrics time to fix (TTF), The Virtuous Cycle to the Rescue: If You Don’t Measure It… Todd, Chad, Replies toilas enemy of SRE, Toil, the Enemy of SRE-Toil, the Enemy of SRE defined, Toil, the Enemy of SRE engineering work vs., Toil, the Enemy of SRE-Toil, the Enemy of SRE enterprise operations model–SRE transition, Toil Limits privacy engineering and, Reducing Toil-Frameworks self-service capabilities and, Self-Service Helps SREs in Multiple Ways tooling, third-party integrations and, Tooling Toyota Production System, Start by Leaning on Lean trainingfor persons with mental disorders, Training on-call, Training transactions, as availability metric, Transactions transgender inclusivity, Benefits Treat, Robert, Replies Treynor Sloss, Benjamin, Leverage Existing Enthusiasm for DevOps, SRE Patterns Loved by DevOps People Everywhere triage, First, Do No Harm trust, forgiveness as corollary to, The corollary to trust is forgiveness 2001: A Space Odyssey (movie), The Awakening of Applied AI U unknown-unknowns, software failure and, Underlying Assumptions Driving On-Call for Engineers, On-Call Is Emergency Medicine Instead of Ward Medicine US Digital Service, Elegy for Complex Systems user error, data loss and, User error V vacation time, Benefits van Zijll, Robin, Replies velocity of change, Provisioning, Change Management, and Velocity vendor lock-in, Project Operating Expense and Abandonment Expense verificationcoverage, Verification Coverage-Storage Watcher data durability engineering and, Verification-Watching the Watchers testing the verification system, Watching the Watchers zero-errors system, The Power of Zero virtual repair debt, Virtual Repair Debt: Exorcising the Ghost in the Machine virtuous cycle, The Virtuous Cycle to the Rescue: If You Don’t Measure It…-The Virtuous Cycle to the Rescue: If You Don’t Measure It… visual analysis, Start by Leaning on Lean W wages (see compensation) Watson, Coburn, Context Versus Control in SRE, Context Versus Control in SRE-Context Versus Control in SRE Wheel of Misfortune (game), Active Learning Example: Wheel of Misfortune Willis, John, SRE Patterns Loved by DevOps, SRE Patterns Loved by DevOps People Everywhere-Conclusion window of vulnerability, Window of Vulnerability Woods' Theorem, Mental Models work-life balance, Developers’ Productivity and Health Versus the Pager-Developers’ Productivity and Health Versus the Pager(see also psychological safety) Y you build it, you run itat Soundcloud, You Build It, You Run It-Introducing Production Engineering deployment platform, The Deployment Platform Production Engineering team and, Introducing Production Engineering-Introducing Production Engineering SysOps and code deploys, Closing the Loop: Take Your Own Pager Yust, Amber, The Intersection of Reliability and Privacy, The Intersection of Reliability and Privacy-Conclusion Z zero-errors systems, The Power of Zero Zhang, Yichun agentzh, Scriptable Load Balancers: The New Kid on the Block Zwieback, Dave, Approaching Operations as an Engineering Problem About the Editor David N.


pages: 207 words: 57,959

Little Bets: How Breakthrough Ideas Emerge From Small Discoveries by Peter Sims

Amazon Web Services, Black Swan, Clayton Christensen, complexity theory, David Heinemeier Hansson, deliberate practice, discovery of penicillin, endowment effect, fear of failure, Frank Gehry, Guggenheim Bilbao, Jeff Bezos, knowledge economy, lateral thinking, Lean Startup, longitudinal study, loss aversion, meta analysis, meta-analysis, PageRank, Richard Florida, Richard Thaler, Ruby on Rails, Silicon Valley, statistical model, Steve Ballmer, Steve Jobs, Steve Wozniak, theory of mind, Toyota Production System, urban planning, Wall-E

Drucker structures this book around a number of key principles about the sources of innovation and entrepreneurship, such as: systemic opportunity analysis, starting small, the importance of simplicity, alignment with incentive and rewards systems, and building from one’s personal strengths. That this was written near the outset of the fields is a testament to how rigorously and deeply Drucker wrestled with these questions. Liker, Jeffrey. The Toyota Way. New York: McGraw-Hill, 2004. University of Michigan Professor Jeffrey Liker is a long-time student of Toyota’s processes and culture. This book provides an excellent overview of the Toyota Production System, otherwise known as lean production. Elements include: problem solving and continuous learning (genchi and genbutsu), respect for people and partners (kaizen), flow processes and pull systems to eliminate waste (kaizen), and long-term thinking. This book presents interesting case studies, such as the creation of the Prius, to illustrate fourteen Toyota operating principles. (Dr. W. Edwards Deming, the American management thinker, helped Toyota to develop these principles in post–World War II Japan, at a time when resources were sparse in Japan.)


pages: 187 words: 62,861

The Penguin and the Leviathan: How Cooperation Triumphs Over Self-Interest by Yochai Benkler

business process, California gold rush, citizen journalism, Daniel Kahneman / Amos Tversky, East Village, Everything should be made as simple as possible, experimental economics, experimental subject, framing effect, informal economy, invisible hand, jimmy wales, job satisfaction, Joseph Schumpeter, Kenneth Arrow, knowledge economy, laissez-faire capitalism, loss aversion, Murray Gell-Mann, Nicholas Carr, peer-to-peer, prediction markets, Richard Stallman, Scientific racism, Silicon Valley, Steven Pinker, telemarketer, Toyota Production System, twin studies, ultimatum game, Washington Consensus, zero-sum game, Zipcar

It has forced organizational sociologists and management scientists across the country to rethink the long-standing assumption that the practices of Toyota and the other major Japanese automobile manufacturers were some quirky extension of unique Japanese culture, born out of traits so uniquely Japanese they couldn’t be replicated. After all, these were American autoworkers responding to changes negotiated with an American union. The only thing that wasn’t American was the management. How can we account for such an incredible and rapid turnaround? The answer is basically that Toyota Production System incorporates the very elements of a successful cooperative system that we have been examining in the past five chapters. As a result, it has been able to harness precisely the kinds of intrinsic motivations and dynamics that make workers not only more innovative and more productive, but also happier with their work and workplace. The NUMMI plant story is simply the starkest, cleanest real-world “experiment” showing that top-performing companies—or what management science calls “high-commitment, high-performance” organizations—are those that fit the model of a functioning cooperative system.


pages: 548 words: 174,644

Boyd: The Fighter Pilot Who Changed the Art of War by Robert Coram

desegregation, inventory management, Iridium satellite, Joseph Schumpeter, lateral thinking, Mason jar, RAND corporation, Ronald Reagan, Thomas Kuhn: the structure of scientific revolutions, Toyota Production System, traveling salesman

During his last years, Boyd’s two great professional delights were the work of Chet Richards and a book being researched by Dr. Grant Hammond at the Air War College. Richards was the mathematical whiz who came to the Pentagon in 1973, the man whom Christie assigned the job of finding a place for happy hour. Richards had reviewed all of Boyd’s briefings. He later went to work for Lockheed and began studying the fabled Toyota production system, which he found “frighteningly familiar” from his study of maneuver conflict. But the Toyota production system began in the 1950s, about two decades before Boyd began work on “Patterns of Conflict.” The underlying ideas of mutual trust, mission orders, and individual responsibility, and the concepts of “harmony” and “flow” and—most of all—the manipulation of time as a production tool were central ideas in both the Toyota system and the strategy of maneuver conflict.


pages: 272 words: 71,487

Getting Better: Why Global Development Is Succeeding--And How We Can Improve the World Even More by Charles Kenny

"Robert Solow", agricultural Revolution, Berlin Wall, British Empire, Charles Lindbergh, clean water, demographic transition, double entry bookkeeping, experimental subject, Fall of the Berlin Wall, germ theory of disease, Gunnar Myrdal, income inequality, income per capita, Indoor air pollution, inventory management, Kickstarter, Milgram experiment, off grid, open borders, purchasing power parity, randomized controlled trial, structural adjustment programs, The Wealth of Nations by Adam Smith, total factor productivity, Toyota Production System, trade liberalization, transaction costs, very high income, Washington Consensus, X Prize

He argues that systems like Walmart’s management of inventory data have had a bigger impact on economic growth than inventions such as the transistor, for example. Or take the example of Toyota, until recently (when some drivers started to find its accelerator technology a little too sticky) the auto industry’s most profitable firm. Toyota does not produce the most innovative or exciting cars (compare the Tercel to the Mustang). But it does have the Toyota Production System, which reorganized factory floors and pioneered just-in-time parts delivery, among other things.18 There is strong evidence to support Romer’s contention that process technologies are more important to per capita income growth than “traditional” invented technologies. Not least, there is no relationship between a country’s research and development expenditures in “traditional” or invented technologies, on the one hand, and growth rates, on the other.


pages: 757 words: 193,541

The Practice of Cloud System Administration: DevOps and SRE Practices for Web Services, Volume 2 by Thomas A. Limoncelli, Strata R. Chalup, Christina J. Hogan

active measures, Amazon Web Services, anti-pattern, barriers to entry, business process, cloud computing, commoditize, continuous integration, correlation coefficient, database schema, Debian, defense in depth, delayed gratification, DevOps, domain-specific language, en.wikipedia.org, fault tolerance, finite state, Firefox, Google Glasses, information asymmetry, Infrastructure as a Service, intermodal, Internet of things, job automation, job satisfaction, Kickstarter, load shedding, longitudinal study, loose coupling, Malcom McLean invented shipping containers, Marc Andreessen, place-making, platform as a service, premature optimization, recommendation engine, revision control, risk tolerance, side project, Silicon Valley, software as a service, sorting algorithm, standardized shipping container, statistical model, Steven Levy, supply-chain management, Toyota Production System, web application, Yogi Berra

The result of the DevOps approach is higher uptime and lower operational costs. 8.2 The Three Ways of DevOps “The Three Ways of DevOps” is a strategy for improving operations. It describes the values and philosophies that frame the processes, procedures, and practices of DevOps. The Three Ways strategy was popularized by Kim et al.’s (2013) book The Phoenix Project. It borrows from “Lean Manufacturing” (Spear & Bowen 1999) and the Toyota Production System’s Kaizen improvement model. 8.2.1 The First Way: Workflow Workflow looks at getting the process correct from beginning to end and improving the speed at which the process can be done. The process is a value stream—it provides value to the business. The speed is referred to as flow rate or just simply flow. If the steps in the process are listed on a timeline, one can think of this as improving the process as it moves from left to right.

http://research.google.com/pubs/pub41684.html Seven, D. (2014). Knightmare: A DevOps cautionary tale. http://dougseven.com/2014/04/17/knightmare-a-devops-cautionary-tale Siegler, M. (2011). The next 6 months worth of features are in Facebook’s code right now (but we can’t see). http://techcrunch.com/2011/05/30/facebook-source-code Spear, S., & Bowen, H. K. (1999). Decoding the DNA of the Toyota production system, Harvard Business Review. Spolsky, J. (2004). Things you should never do, Part I, Joel on Software, Apress. http://www.joelonsoftware.com/articles/fog0000000069.html Stevens, W. (1998). UNIX Network Programming: Interprocess Communications, UNIX Networking Reference Series, Vol. 2, Prentice Hall. Stevens, W. R., & Fall, K. (2011). TCP/IP Illustrated, Volume 1: The Protocols, Pearson Education.


pages: 242 words: 245

The New Ruthless Economy: Work & Power in the Digital Age by Simon Head

Asian financial crisis, business cycle, business process, call centre, conceptual framework, deskilling, Erik Brynjolfsson, Ford paid five dollars a day, Frederick Winslow Taylor, informal economy, information retrieval, medical malpractice, new economy, Panopticon Jeremy Bentham, shareholder value, Shoshana Zuboff, Silicon Valley, single-payer health, supply-chain management, telemarketer, Thomas Davenport, Toyota Production System, union organizing

In the auto industry, the UAW has been carrying on the fight against speed up since the 1930s. I myself only fully grasped the importance of this union role when I visited the joint GM-Toyota assembly plant in Fremont, California, in November 1997. Named New United Motor Manufacturing Inc., (NUMMI), the Fremont plant is a former GM plant that has become a manufacturing showcase in which GM executives and workers can THE ECONOMICS OF UNFAIRNESS learn firsthand how the Toyota production system works. At first glance, the assembly line at Fremont did not look very different from what I had seen at Nissan. Workers performed their repetitive tasks as car bodies moved slowly down the line. At rest areas, there were the familiar plastic-covered worksheets specifying tac for each worker on the line, down to the nearest fraction of a second. But the atmosphere of the plant was quite different from what I had found at Nissan.


pages: 249 words: 73,731

Car Guys vs. Bean Counters: The Battle for the Soul of American Business by Bob Lutz

corporate governance, creative destruction, currency manipulation / currency intervention, flex fuel, medical malpractice, Ponzi scheme, profit maximization, Ralph Nader, shareholder value, Steve Jobs, Toyota Production System, transfer pricing, Unsafe at Any Speed, upwardly mobile

Lingering in the minds of the general public are outdated images of dark, rundown, smoky Detroit factories, peopled by lazy, alcoholic, or even drug-abusing workers who, rather than pursuing quality, would actually sabotage the product in order to hurt their employer. (We’ve all heard tales of Coke bottles being deliberately left in doors to produce a severe rattle later on.) I suppose some of this existed in the bad old days many decades ago, but today’s reality is the exact opposite: gleaming buildings, well-landscaped grounds, brilliantly lit inside, with a level of cleanliness that would rival many hospitals.All of the fabled “Toyota Production System” methods were learned and incorporated over the years. Modern equipment, a positive change in union-management working relationships, a union-shared focus on quality, a massive investment in ongoing training, and a relentless drive for greater efficiency had made GM manufacturing in the United States as good as, and often better than, the best of the Japanese automotive manufacturing facilities.


pages: 309 words: 81,975

Brave New Work: Are You Ready to Reinvent Your Organization? by Aaron Dignan

"side hustle", activist fund / activist shareholder / activist investor, Airbnb, Albert Einstein, autonomous vehicles, basic income, Bertrand Russell: In Praise of Idleness, bitcoin, Black Swan, blockchain, Buckminster Fuller, Burning Man, butterfly effect, cashless society, Clayton Christensen, clean water, cognitive bias, cognitive dissonance, corporate governance, corporate social responsibility, correlation does not imply causation, creative destruction, crony capitalism, crowdsourcing, cryptocurrency, David Heinemeier Hansson, deliberate practice, DevOps, disruptive innovation, don't be evil, Elon Musk, endowment effect, Ethereum, ethereum blockchain, Frederick Winslow Taylor, future of work, gender pay gap, Geoffrey West, Santa Fe Institute, gig economy, Google X / Alphabet X, hiring and firing, hive mind, income inequality, information asymmetry, Internet of things, Jeff Bezos, job satisfaction, Kevin Kelly, Kickstarter, Lean Startup, loose coupling, loss aversion, Lyft, Marc Andreessen, Mark Zuckerberg, minimum viable product, new economy, Paul Graham, race to the bottom, remote working, Richard Thaler, shareholder value, Silicon Valley, six sigma, smart contracts, Social Responsibility of Business Is to Increase Its Profits, software is eating the world, source of truth, Stanford marshmallow experiment, Steve Jobs, TaskRabbit, the High Line, too big to fail, Toyota Production System, uber lyft, universal basic income, Y Combinator, zero-sum game

When Henry Ford introduced his moving assembly line in 1913, he changed the flow of work through the factory. The process was divided into eighty-four discrete steps, and none other than Frederick Taylor himself helped to optimize each of them. The build time of a Model T went from twelve hours to just two hours and thirty minutes. Nearly half a century later, Taiichi Ohno and the Toyoda family developed the Toyota Production System, a just-in-time approach to manufacturing that sought to eliminate muri (overburden), mura (inconsistency), and muda (waste). Once again, automotive workflow was forever changed for the better, and not just in the factory but throughout the entire organization. Improving workflow, the way value is created, is a continual source of advantage for the firms that do it. They gain speed, quality, efficiency, and in many cases simplicity.


pages: 365 words: 88,125

23 Things They Don't Tell You About Capitalism by Ha-Joon Chang

"Robert Solow", affirmative action, Asian financial crisis, bank run, banking crisis, basic income, Berlin Wall, Bernie Madoff, borderless world, Carmen Reinhart, central bank independence, collateralized debt obligation, colonial rule, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deindustrialization, deskilling, ending welfare as we know it, Fall of the Berlin Wall, falling living standards, financial deregulation, financial innovation, full employment, German hyperinflation, Gini coefficient, hiring and firing, Hyman Minsky, income inequality, income per capita, invisible hand, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, labour market flexibility, light touch regulation, Long Term Capital Management, low skilled workers, manufacturing employment, market fundamentalism, means of production, Mexican peso crisis / tequila crisis, microcredit, Myron Scholes, North Sea oil, offshore financial centre, old-boy network, post-industrial society, price stability, profit maximization, profit motive, purchasing power parity, rent control, shareholder value, short selling, Skype, structural adjustment programs, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, Tobin tax, Toyota Production System, trade liberalization, trickle-down economics, women in the workforce, working poor, zero-sum game

So, starting with the Human Relations School that emerged in the 1930s, which highlighted the need for good communications with, and among, workers, many managerial approaches have emerged that emphasize the complexity of human motivation and suggest ways to bring the best out of workers. The pinnacle of such an approach is the so-called ‘Japanese production system’ (sometimes known as the ‘Toyota production system’), which exploits the goodwill and creativity of the workers by giving them responsibilities and trusting them as moral agents. In the Japanese system, workers are given a considerable degree of control over the production line. They are also encouraged to make suggestions for improving the production process. This approach has enabled Japanese firms to achieve such production efficiency and quality that now many non-Japanese companies are imitating them.


pages: 374 words: 89,725

A More Beautiful Question: The Power of Inquiry to Spark Breakthrough Ideas by Warren Berger

Airbnb, carbon footprint, Clayton Christensen, clean water, disruptive innovation, fear of failure, Google X / Alphabet X, Isaac Newton, Jeff Bezos, jimmy wales, Joi Ito, Kickstarter, late fees, Lean Startup, Mark Zuckerberg, minimum viable product, new economy, Paul Graham, Peter Thiel, Ray Kurzweil, self-driving car, sharing economy, side project, Silicon Valley, Silicon Valley startup, Stanford marshmallow experiment, Stephen Hawking, Steve Jobs, Steven Levy, Thomas L Friedman, Toyota Production System, Watson beat the top human players on Jeopardy!, Y Combinator, Zipcar

Jessica Salter, “Airbnb: The Story behind the $1.3bn Room-letting Website,” Telegraph, September 7, 2012. 25 “it creates dissonance,” notes Paul Bottino . . . From my interview with Bottino. 26 Why can’t India have 911 emergency service? . . . From my interview with Jacqueline Novogratz of the Acumen Fund; plus, Shaffi Mather’s November 2009 TED Talk, “A New Way to Fight Corruption.” http://www.ted.com/talks/shaffi_mather_a_new_way_to_fight_corruption.html 27 The five whys methodology originated . . . Taiichi Ohno, Toyota Production System: Beyond Large-Scale Production (Portland, OR: Productivity Press, 1988). Also, Eric Ries, The Lean Startup (New York: Crown Business, 2011). 28 IDEO example of five whys . . . From the company’s “Method Cards,” published by William Stout, November 2003. 29 character actor and author Stephen Tobolowsky . . . From my interview with Tobolowsky, February 17, 2013. 30 Why isn’t the water reaching the people who need it?


pages: 323 words: 92,135

Running Money by Andy Kessler

Andy Kessler, Apple II, bioinformatics, Bob Noyce, British Empire, business intelligence, buy and hold, buy low sell high, call centre, Corn Laws, Douglas Engelbart, family office, full employment, George Gilder, happiness index / gross national happiness, interest rate swap, invisible hand, James Hargreaves, James Watt: steam engine, joint-stock company, joint-stock limited liability company, knowledge worker, Leonard Kleinrock, Long Term Capital Management, mail merge, Marc Andreessen, margin call, market bubble, Maui Hawaii, Menlo Park, Metcalfe’s law, Mitch Kapor, Network effects, packet switching, pattern recognition, pets.com, railway mania, risk tolerance, Robert Metcalfe, Sand Hill Road, Silicon Valley, South China Sea, spinning jenny, Steve Jobs, Steve Wozniak, Toyota Production System, zero-sum game

From what I could gather, General Motors had built this factory years ago and was losing its shirt keeping it open, shipping thousanddollar bills out with every car it made. It tried to close down but couldn’t. Smelled like the United Auto Workers union had a veto, but somehow our guide skipped the reason. In 1984, Toyota, looking for a U.S. presence, cut a deal with GM to co-own the factory, but only if it was operated under the rules of the Toyota Production System and their culture of a “teamwork-based working environment.” Phil leaned over and whispered, “Are we going to have to do calisthenics before the tour?” Our guide had been promoted off the floor and was singing the benefits of TPS. “It used to be thought that the biggest problem for an assembly line was when the line came to a stop. It’s a problem, to be sure, but in Detroit the culture was ingrained in workers’ minds; ‘Don’t stop the line at all costs.’


pages: 372 words: 89,876

The Connected Company by Dave Gray, Thomas Vander Wal

A Pattern Language, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, Atul Gawande, Berlin Wall, business cycle, business process, call centre, Clayton Christensen, commoditize, complexity theory, creative destruction, David Heinemeier Hansson, disruptive innovation, en.wikipedia.org, factory automation, Googley, index card, industrial cluster, interchangeable parts, inventory management, Jeff Bezos, John Markoff, Kevin Kelly, loose coupling, low cost airline, market design, minimum viable product, more computing power than Apollo, profit maximization, Richard Florida, Ruby on Rails, self-driving car, shareholder value, side project, Silicon Valley, skunkworks, software as a service, South of Market, San Francisco, Steve Jobs, Steven Levy, Stewart Brand, The Wealth of Nations by Adam Smith, Tony Hsieh, Toyota Production System, Vanguard fund, web application, WikiLeaks, Zipcar

Earl Sasser, and Leonard A. Schlesinger, Free Press, 1997. The Seven-Day Weekend: Changing the Way Work Works By Ricardo Semler, Portfolio Hardcover, 2004. Simply Complexity: A Clear Guide to Complexity Theory By Neil Johnson, Oneworld, 2009. Steve Jobs By Walter Isaacson, Simon and Schuster, 2011. Structural Holes: The Social Structure of Competition By Ronald S. Burt, Harvard University Press, 1995. Toyota Production System: Beyond Large-Scale Production By Taiichi Ohno and Norman Bodek, Productivity Press, 1988. The Ultimate Question: How Net-Promoter Companies Thrive in a Customer-Driven World By Fred Reichheld, Harvard Business School Press, 2006. A Vision So Noble: John Boyd, the OODA Loop, and America’s War on Terror By Daniel Ford, CreateSpace, 2010. What Matters Now: How to Win in a World of Relentless Change, Ferocious Competition, and Unstoppable Innovation By Gary Hamel, Jossey-Bass, 2012.


pages: 321 words: 92,828

Late Bloomers: The Power of Patience in a World Obsessed With Early Achievement by Rich Karlgaard

Airbnb, Albert Einstein, Amazon Web Services, Apple's 1984 Super Bowl advert, Bernie Madoff, Bob Noyce, Brownian motion, Captain Sullenberger Hudson, cloud computing, cognitive dissonance, Daniel Kahneman / Amos Tversky, deliberate practice, Electric Kool-Aid Acid Test, Elon Musk, en.wikipedia.org, experimental economics, fear of failure, financial independence, follow your passion, Frederick Winslow Taylor, hiring and firing, Internet of things, Isaac Newton, Jeff Bezos, job satisfaction, knowledge economy, labor-force participation, longitudinal study, low skilled workers, Mark Zuckerberg, meta analysis, meta-analysis, Moneyball by Michael Lewis explains big data, move fast and break things, move fast and break things, pattern recognition, Peter Thiel, Sand Hill Road, science of happiness, shareholder value, Silicon Valley, Silicon Valley startup, Snapchat, Steve Jobs, Steve Wozniak, theory of mind, Tim Cook: Apple, Toyota Production System, unpaid internship, upwardly mobile, women in the workforce, working poor

Then admit, That wasn’t your best effort, Lisa. Next time, you prepare smarter. Post facto framing is an incredibly powerful tool for late bloomers, as well as everyone else. Smart framing is good for you and your organization. Cognitive psychologists have shown that effectively reframing challenges is a key to organizational success, in settings ranging from automotive manufacturing on the Toyota Production System (TPS), to pet adoption in shelters in Los Angeles, to hospital operating rooms across the country. People who learn to reframe are better able to solve problems, face challenges, and effect significant change, making them better team members. Even more, skilled reframers make better leaders. Leaders are spokespeople: They create shared awareness, build consensus, focus attention, and motivate action.


pages: 330 words: 99,044

Reimagining Capitalism in a World on Fire by Rebecca Henderson

Airbnb, asset allocation, Berlin Wall, Bernie Sanders, business climate, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, collaborative economy, collective bargaining, commoditize, corporate governance, corporate social responsibility, crony capitalism, dark matter, decarbonisation, disruptive innovation, double entry bookkeeping, Elon Musk, Erik Brynjolfsson, Exxon Valdez, Fall of the Berlin Wall, family office, fixed income, George Akerlof, Gini coefficient, global supply chain, greed is good, Hans Rosling, Howard Zinn, Hyman Minsky, income inequality, index fund, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, Kickstarter, Lyft, Mark Zuckerberg, means of production, meta analysis, meta-analysis, microcredit, mittelstand, Mont Pelerin Society, Nelson Mandela, passive investing, Paul Samuelson, Philip Mirowski, profit maximization, race to the bottom, ride hailing / ride sharing, Ronald Reagan, Rosa Parks, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Snapchat, sovereign wealth fund, Steven Pinker, stocks for the long run, Tim Cook: Apple, total factor productivity, Toyota Production System, uber lyft, urban planning, Washington Consensus, working-age population, Zipcar

They moved to a system under which the Augusta plant was run entirely by “technicians” organized into teams, each of whom was expected to develop a wide range of skills and to actively contribute to the continual improvement of the plant. The plant had no job classifications and no production quotas. Its employees spent four hours a week in training and an additional two hours meeting together to solve problems. In short, the plant invented something remarkably close to the Toyota production system years before Toyota would first make waves in the United States. Augusta was so successful that by 1967 every new P&G plant was required to use the system. The first plant designed from the ground up to use the new techniques was built in Lima, Ohio. Under the leadership of Charlie Krone—an unconventional plant manager who had studied not only Trist but also Tibetan and Sufi mysticism and the work of the spiritual teacher George Gurdjieff—the Lima plant was designed to “embody learning” and to integrate emotional and psychological factors directly into the design of the work.


pages: 377 words: 110,427

The Boy Who Could Change the World: The Writings of Aaron Swartz by Aaron Swartz, Lawrence Lessig

affirmative action, Alfred Russel Wallace, American Legislative Exchange Council, Benjamin Mako Hill, bitcoin, Bonfire of the Vanities, Brewster Kahle, Cass Sunstein, deliberate practice, Donald Knuth, Donald Trump, failed state, fear of failure, Firefox, full employment, Howard Zinn, index card, invisible hand, Joan Didion, John Gruber, Lean Startup, More Guns, Less Crime, peer-to-peer, post scarcity, Richard Feynman, Richard Stallman, Ronald Reagan, school vouchers, semantic web, single-payer health, SpamAssassin, SPARQL, telemarketer, The Bell Curve by Richard Herrnstein and Charles Murray, the scientific method, Toyota Production System, unbiased observer, wage slave, Washington Consensus, web application, WikiLeaks, working poor, zero-sum game

Rick Perry and his Eggheads by Sasha Issenberg Sasha Issenberg is a miracle worker. This book (really an excerpt from his forthcoming book) is so very, very good that it just blows me away. Issenberg tells the tale of everything I’ve been trying to say to everyone in politics, but he does it in a real-life three-act morality play that’s so good it could be a model on how to tell a story. The Lean Startup by Eric Ries Ries presents a translation of the Toyota Production System to start-ups—and it’s so clearly the right way to run a start-up that it’s hard to imagine how we got along before it. Unfortunately, the book has become so trendy that I find many people claiming to swear allegiance to it who clearly missed the point entirely. Read it with an open mind and let it challenge you, so you can start to understand how transformative it really is. CODE: The Hidden Language of Computer Hardware and Software by Charles Petzold A magnificent achievement.


pages: 455 words: 116,578

The Power of Habit: Why We Do What We Do in Life and Business by Charles Duhigg

Atul Gawande, Checklist Manifesto, corporate governance, cuban missile crisis, delayed gratification, desegregation, game design, haute couture, impulse control, index card, longitudinal study, meta analysis, meta-analysis, patient HM, pattern recognition, randomized controlled trial, rolodex, Rosa Parks, Silicon Valley, Stanford marshmallow experiment, telemarketer, Tenerife airport disaster, Toyota Production System, transaction costs, Walter Mischel

We emphasized, however, that when that happens, the actual routine that emerges, as opposed to the nominal one that was deliberately designed, is influenced, again, by a lot of choices at the individual level, as well as other considerations (see book [Evolutionary Theory of Economic Change] p. 108).” 6.17 These organizational habits—or “routines” For more on the fascinating topic of how organizational routines emerge and work, see Paul S. Adler, Barbara Goldoftas, and David I. Levine, “Flexibility Versus Efficiency? A Case Study of Model Changeovers in the Toyota Production System,” Organization Science 10 (1999): 43–67; B. E. Ashforth and Y. Fried, “The Mindlessness of Organisational Behaviors,” Human Relations 41 (1988): 305–29; Donde P. Ashmos, Dennis Duchon, and Reuben R. McDaniel, “Participation in Strategic Decision Making: The Role of Organisational Predisposition and Issue Interpretation,” Decision Sciences 29 (1998): 25–51; M. C. Becker, “The Influence of Positive and Negative Normative Feedback on the Development and Persistence of Group Routines,” doctoral thesis, Purdue University, 2001; M.


pages: 372 words: 152

The End of Work by Jeremy Rifkin

banking crisis, Bertrand Russell: In Praise of Idleness, blue-collar work, cashless society, collective bargaining, computer age, deskilling, Dissolution of the Soviet Union, employer provided health coverage, Erik Brynjolfsson, full employment, future of work, general-purpose programming language, George Gilder, global village, hiring and firing, informal economy, interchangeable parts, invention of the telegraph, Jacques de Vaucanson, job automation, John Maynard Keynes: technological unemployment, knowledge economy, knowledge worker, land reform, low skilled workers, means of production, new economy, New Urbanism, Paul Samuelson, pink-collar, post-industrial society, Productivity paradox, Richard Florida, Ronald Reagan, Silicon Valley, speech recognition, strikebreaker, technoutopianism, Thorstein Veblen, Toyota Production System, trade route, trickle-down economics, women in the workforce, working poor, working-age population, Works Progress Administration

/japan Comparison of Strategy and Organization (New York: North-Holland, 1985), pp. 112-113. 21. Lincoln, James, Hanada, Mitsuyo, and McBride, Kerry, "Organizational Structures in Japanese and U.S. Manufacturing." Administrative Science Quarterly, voL 31, 1986, pp. 338-364; Kenney, Martin, and Florida, Richard, Beyond Mass Production: The Japanese System and Its Transfer to the US. (New York: Oxford University Press, 1993), pp. 42, 105, 107. 22. Ohno, Taiichi, Toyota Production System (Cambridge, MA: Productivity Press, 1988), pp. 25-26. 23. Womack et aL, pp. 71-103. 24. Cited in Davidow and Malone, p. 126. 25. Kenney and Florida, p. 54. 26. Womack et aL, p. 12; also cited in Technology and Organizational Innovations, Production and Employment (Geneva, Switzerland: International Labor Office, July 1992), p. 33. 27. Interview, March 21, 1994. Like others, Loveman's studies indicate "an increasing bifurcation of the labor market" with "highly skilled, highly educated people doing rather well, while those in lower skill occupations [including middle management] are getting trounced."


pages: 667 words: 149,811

Economic Dignity by Gene Sperling

active measures, Affordable Care Act / Obamacare, autonomous vehicles, basic income, Bernie Sanders, Cass Sunstein, collective bargaining, corporate governance, David Brooks, desegregation, Detroit bankruptcy, Donald Trump, Double Irish / Dutch Sandwich, Elon Musk, employer provided health coverage, Erik Brynjolfsson, Ferguson, Missouri, full employment, gender pay gap, ghettoisation, gig economy, Gini coefficient, guest worker program, Gunnar Myrdal, housing crisis, income inequality, invisible hand, job automation, job satisfaction, labor-force participation, late fees, liberal world order, longitudinal study, low skilled workers, Lyft, Mark Zuckerberg, market fundamentalism, mass incarceration, mental accounting, meta analysis, meta-analysis, minimum wage unemployment, obamacare, offshore financial centre, payday loans, price discrimination, profit motive, race to the bottom, RAND corporation, randomized controlled trial, Richard Thaler, ride hailing / ride sharing, Ronald Reagan, Rosa Parks, Second Machine Age, secular stagnation, shareholder value, Silicon Valley, single-payer health, speech recognition, The Chicago School, The Future of Employment, The Wealth of Nations by Adam Smith, Toyota Production System, traffic fines, Triangle Shirtwaist Factory, Uber and Lyft, uber lyft, union organizing, universal basic income, War on Poverty, working poor, young professional, zero-sum game

See economic change Technology Trap, The (Frey), 128, 130 tech platforms, 117–18 Terkel, Studs, 223, 237 Tesler, Michael, 292 Thaler, Richard, 3 Theory of Justice, A (Rawls), 224, 225, 228 Thirteenth Amendment, 67, 260–61 three pillars of economic dignity, xviii, 29–32, 296 care for family, xviii, 30, 33–43 economic respect, xviii, 30, 63–85 pursuit of potential and purpose, xviii, 30, 44–62 thrift savings plans (TSPs), 204 Tiananmen Square protests, 248 Title IX, 31 Tocqueville, Alexis de, 49–50 Tough, Paul, 289 Toyota Production System, 238–39 Trade Adjustment Assistance (TAA), 142–43, 165–66, 329n trade policies, 122–26, 135, 144–46 Trebesch, Christoph, 295 Triangle Shirtwaist Factory fire, 69–70 Triumph of Injustice, The (Saez and Zucman), 123, 124 Triumph Services, 214 Truman, Harry S., 29 Trumka, Richard, 250, 251 Trump, Donald, (Trump Administration) divisive dignity and, 170, 291–92, 293 farming industry, 118 for-profit colleges, 114 poultry processors, 81 regulations, 107 science and technology public investments, 99 Tax Cuts and Jobs Act of 2017, 124–25, 168 work requirements, 91 trust gaps, 282–84 Tubman, Harriet, 149 U-6 (unemployment) rate, 8 Uber drivers, 9–10, 192, 230, 252 UBI.


pages: 807 words: 154,435

Radical Uncertainty: Decision-Making for an Unknowable Future by Mervyn King, John Kay

"Robert Solow", Airbus A320, Albert Einstein, Albert Michelson, algorithmic trading, Antoine Gombaud: Chevalier de Méré, Arthur Eddington, autonomous vehicles, availability heuristic, banking crisis, Barry Marshall: ulcers, battle of ideas, Benoit Mandelbrot, bitcoin, Black Swan, Bonfire of the Vanities, Brownian motion, business cycle, business process, capital asset pricing model, central bank independence, collapse of Lehman Brothers, correlation does not imply causation, credit crunch, cryptocurrency, cuban missile crisis, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, demographic transition, discounted cash flows, disruptive innovation, diversification, diversified portfolio, Donald Trump, easy for humans, difficult for computers, Edmond Halley, Edward Lloyd's coffeehouse, Edward Thorp, Elon Musk, Ethereum, Eugene Fama: efficient market hypothesis, experimental economics, experimental subject, fear of failure, feminist movement, financial deregulation, George Akerlof, germ theory of disease, Hans Rosling, Ignaz Semmelweis: hand washing, income per capita, incomplete markets, inflation targeting, information asymmetry, invention of the wheel, invisible hand, Jeff Bezos, Johannes Kepler, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Snow's cholera map, John von Neumann, Kenneth Arrow, Long Term Capital Management, loss aversion, Louis Pasteur, mandelbrot fractal, market bubble, market fundamentalism, Moneyball by Michael Lewis explains big data, Nash equilibrium, Nate Silver, new economy, Nick Leeson, Northern Rock, oil shock, Paul Samuelson, peak oil, Peter Thiel, Philip Mirowski, Pierre-Simon Laplace, popular electronics, price mechanism, probability theory / Blaise Pascal / Pierre de Fermat, quantitative trading / quantitative finance, railway mania, RAND corporation, rent-seeking, Richard Feynman, Richard Thaler, risk tolerance, risk-adjusted returns, Robert Shiller, Robert Shiller, Ronald Coase, sealed-bid auction, shareholder value, Silicon Valley, Simon Kuznets, Socratic dialogue, South Sea Bubble, spectrum auction, Steve Ballmer, Steve Jobs, Steve Wozniak, Tacoma Narrows Bridge, Thales and the olive presses, Thales of Miletus, The Chicago School, the map is not the territory, The Market for Lemons, The Nature of the Firm, The Signal and the Noise by Nate Silver, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Bayes, Thomas Davenport, Thomas Malthus, Toyota Production System, transaction costs, ultimatum game, urban planning, value at risk, World Values Survey, Yom Kippur War, zero-sum game

., ‘UK Household Water Consumption 2015: Facts & Figures’, Hope Spring (12 Oct 2015) < https://www.hopespring.org.uk/uk-household-water-consumption-2015-facts-figures/ > (accessed 25 Oct 2018) Office for National Statistics, ‘Appendix Tables: Homicide in England and Wales’ (2018) Office for National Statistics, ‘English Life Tables No. 17: 2010 to 2012’ (2015a) Office for National Statistics, ‘Infant Mortality (Birth Cohort) Tables in England and Wales’ (2015b) Office for National Statistics, ‘Population of the UK by Country of Birth and Nationality, June 2016 to June 2017’ (2017) Ohno, T., Toyota Production System: Beyond Large-scale Production (New York: Productivity Press, 1988) Ohuchi, N. et al., ‘Sensitivity and Specificity of Mammography and Adjunctive Ultrasonography to Screen for Breast Cancer in the Japan Strategic Anti-Cancer Randomized Trial (J-START): A Randomised Controlled Trial’, The Lancet , Vol. 387, No. 10016 (2016), 341–8 O’Neil, C., Weapons of Math Destruction: How Big Data Increases Inequality and Threatens Democracy (London: Penguin, 2016) Orange, V., Tedder: Quietly in Command (Abingdon: Frank Cass, 2012) Ortiz-Ospina, E. and Roser, M., ‘Trust’ (2019) < https://ourworldindata.org/trust > (accessed 25 Apr 2019) Oxford Dictionary, ‘Rationality’ < https://en.oxforddictionaries.com/definition/rationality > (accessed 14 Jan 2019) Oxford Dictionary, ‘Risk’ < https://en.oxforddictionaries.com/definition/risk > (accessed 16 Jan 2019) Oxford Dictionary, ‘Uncertainty’ < https://www.lexico.com/en/definition/uncertain > (accessed 30 Aug 2019) Pardo, M.


pages: 719 words: 181,090

Site Reliability Engineering: How Google Runs Production Systems by Betsy Beyer, Chris Jones, Jennifer Petoff, Niall Richard Murphy

Air France Flight 447, anti-pattern, barriers to entry, business intelligence, business process, Checklist Manifesto, cloud computing, combinatorial explosion, continuous integration, correlation does not imply causation, crowdsourcing, database schema, defense in depth, DevOps, en.wikipedia.org, fault tolerance, Flash crash, George Santayana, Google Chrome, Google Earth, information asymmetry, job automation, job satisfaction, Kubernetes, linear programming, load shedding, loose coupling, meta analysis, meta-analysis, microservices, minimum viable product, MVC pattern, performance metric, platform as a service, revision control, risk tolerance, side project, six sigma, the scientific method, Toyota Production System, trickle-down economics, web application, zero day

Bhansali, “Searching for Build Debt: Experiences Managing Technical Debt at Google”, in Proceedings of the 3rd Int’l Workshop on Managing Technical Debt, 2012. [Nar12] C. Narla and D. Salas, “Hermetic Servers”, blog post, 2012. [Nel14] B. Nelson, “The Data on Diversity”, in Communications of the ACM, vol. 57, 2014. [Nic12] K. Nichols and V. Jacobson, “Controlling Queue Delay”, in ACM Queue, vol. 10, no. 5, 2012. [Oco12] P. O’Connor and A. Kleyner, Practical Reliability Engineering, 5th edition: Wiley, 2012. [Ohn88] T. Ohno, Toyota Production System: Beyond Large-Scale Production: Productivity Press, 1988. [Ong14] D. Ongaro and J. Ousterhout, “In Search of an Understandable Consensus Algorithm (Extended Version)”. [Pen10] D. Peng and F. Dabek, “Large-scale Incremental Processing Using Distributed Transactions and Notifications”, in Proc. of the 9th USENIX Symposium on Operating System Design and Implementation, November 2010.


pages: 1,205 words: 308,891

Bourgeois Dignity: Why Economics Can't Explain the Modern World by Deirdre N. McCloskey

Airbnb, Akira Okazaki, big-box store, Black Swan, book scanning, British Empire, business cycle, buy low sell high, Capital in the Twenty-First Century by Thomas Piketty, clean water, Columbian Exchange, conceptual framework, correlation does not imply causation, Costa Concordia, creative destruction, crony capitalism, dark matter, Dava Sobel, David Graeber, David Ricardo: comparative advantage, deindustrialization, demographic transition, Deng Xiaoping, Donald Trump, double entry bookkeeping, en.wikipedia.org, epigenetics, Erik Brynjolfsson, experimental economics, Ferguson, Missouri, fundamental attribution error, Georg Cantor, George Akerlof, George Gilder, germ theory of disease, Gini coefficient, God and Mammon, greed is good, Gunnar Myrdal, Hans Rosling, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, Hernando de Soto, immigration reform, income inequality, interchangeable parts, invention of agriculture, invention of writing, invisible hand, Isaac Newton, Islamic Golden Age, James Watt: steam engine, Jane Jacobs, John Harrison: Longitude, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kenneth Arrow, knowledge economy, labor-force participation, lake wobegon effect, land reform, liberation theology, lone genius, Lyft, Mahatma Gandhi, Mark Zuckerberg, market fundamentalism, means of production, Naomi Klein, new economy, North Sea oil, Occupy movement, open economy, out of africa, Pareto efficiency, Paul Samuelson, Pax Mongolica, Peace of Westphalia, peak oil, Peter Singer: altruism, Philip Mirowski, pink-collar, plutocrats, Plutocrats, positional goods, profit maximization, profit motive, purchasing power parity, race to the bottom, refrigerator car, rent control, rent-seeking, Republic of Letters, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scientific racism, Scramble for Africa, Second Machine Age, secular stagnation, Simon Kuznets, Social Responsibility of Business Is to Increase Its Profits, spinning jenny, stakhanovite, Steve Jobs, The Chicago School, The Market for Lemons, the rule of 72, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, total factor productivity, Toyota Production System, transaction costs, transatlantic slave trade, Tyler Cowen: Great Stagnation, uber lyft, union organizing, very high income, wage slave, Washington Consensus, working poor, Yogi Berra

Lionel Giles (1910). http://chinapage.com/sunzi-e.html. Suprinyak, Carlos Eduardo. 2011. “Trade, Money, and the Grievances of the Commonwealth: Economic Debates in the English Public Sphere during the Commercial Crisis of the Early 1620’s.” Universidade Federal de Minas Gerais. http://econpapers.repec.org/paper/cdptexdis/td427.htm. Surowiecki, James. 2008. “The Open Secret of Success: Toyota Production System.” New Yorker, May 12. Sutch, Richard. 1991. “All Things Reconsidered: The Life-Cycle Perspective and the Third Task of Economic History.” Journal of Economic History 51 (June): 1–18. Swedberg, Richard. 2009. Tocqueville’s Political Economy. Princeton, NJ: Princeton University Press. Sylla, Richard, and Gianni Toniolo, eds. 1992. Patterns of European Industrialization: The Nineteenth Century.


pages: 1,073 words: 314,528

Strategy: A History by Lawrence Freedman

Albert Einstein, anti-communist, Anton Chekhov, Ayatollah Khomeini, barriers to entry, battle of ideas, Black Swan, British Empire, business process, butterfly effect, centre right, Charles Lindbergh, circulation of elites, cognitive dissonance, coherent worldview, collective bargaining, complexity theory, conceptual framework, corporate raider, correlation does not imply causation, creative destruction, cuban missile crisis, Daniel Kahneman / Amos Tversky, defense in depth, desegregation, Edward Lorenz: Chaos theory, en.wikipedia.org, endogenous growth, endowment effect, Ford paid five dollars a day, framing effect, Frederick Winslow Taylor, Gordon Gekko, greed is good, information retrieval, interchangeable parts, invisible hand, John Nash: game theory, John von Neumann, Kenneth Arrow, lateral thinking, linear programming, loose coupling, loss aversion, Mahatma Gandhi, means of production, mental accounting, Murray Gell-Mann, mutually assured destruction, Nash equilibrium, Nelson Mandela, Norbert Wiener, Norman Mailer, oil shock, Pareto efficiency, performance metric, Philip Mirowski, prisoner's dilemma, profit maximization, race to the bottom, Ralph Nader, RAND corporation, Richard Thaler, road to serfdom, Ronald Reagan, Rosa Parks, shareholder value, social intelligence, Steven Pinker, strikebreaker, The Chicago School, The Myth of the Rational Market, the scientific method, theory of mind, Thomas Davenport, Thomas Kuhn: the structure of scientific revolutions, Torches of Freedom, Toyota Production System, transaction costs, ultimatum game, unemployed young men, Upton Sinclair, urban sprawl, Vilfredo Pareto, War on Poverty, women in the workforce, Yogi Berra, zero-sum game

Having spent the Second World War building military vehicles, the company struggled after the war to get back into the commercial market. Hampered by a lack of capital and technical capacity and by a strike-prone, radicalized work force, Toyota would probably have gone bankrupt were it not for the Korean War and large orders to supply the American military with vehicles. It then began to put together what became known as the Toyota Production System. The starting point was a solution to labor unrest by a unique deal which promised employees lifetime employment in return for loyalty and commitment. Together they would work to establish a system which would reduce waste. Ideas for improving productivity could be raised and explored in “quality circles.” As this was a country where everything was still in short supply, a visit to a Ford plant in Michigan in 1950 left an abiding impression of the wastefulness of American production methods.