{"id":26945,"date":"2025-07-05T00:10:39","date_gmt":"2025-07-04T17:10:39","guid":{"rendered":"https:\/\/dps.media\/kaizen-nghe-thuat-va-triet-ly-quan-tri-cua-toyota\/"},"modified":"2025-07-05T00:10:42","modified_gmt":"2025-07-04T17:10:42","slug":"kaizen-the-art-and-philosophy-of-toyota-management","status":"publish","type":"post","link":"https:\/\/dps.media\/en\/kaizen-the-art-and-philosophy-of-toyota-management\/","title":{"rendered":"Kaizen \u2013 The Art and Philosophy of Toyota Management"},"content":{"rendered":"

Kaizen<\/strong> What is it? And how does it have the power to help Toyota survive and develop for nearly 150 years without almost ever laying off an employee? If you are looking for answers to the above question, let's find out through the following article!<\/span><\/p>

In this article, DPS<\/a> will explain in detail the issues surrounding Kaizen<\/strong> in the following order:<\/span><\/p>

    \n
  1. Kaizen<\/strong> What is it?<\/span><\/li>\n
  2. C\u00e2u chuy\u1ec7n th\u1ef1c t\u1ebf \u2013 Toyota \u00e1p d\u1ee5ng Kaizen<\/strong> to administration.<\/span><\/li>\n
  3. What benefits do businesses gain when applying Kaizen<\/strong>?<\/span><\/li>\n
  4. Implementation steps Kaizen<\/strong>.<\/span><\/li>\n
  5. Factors that determine success when implementing the philosophy Kaizen<\/strong>.<\/span><\/li>\n
  6. The principles of Kaizen<\/strong> What does it mean when applied?<\/span><\/li>\n<\/ol>

    1. What is Kaizen?<\/span><\/h2>
    \"What
    Kaizen means \u201cchange for the better\u201d or \u201ccontinuous improvement.\u201d.<\/figcaption><\/figure>

    When it comes to quality improvement, you cannot ignore Japan. This is a leading country in this capability. Many businesses in Japan have successfully applied philosophies and business cultures. And Kaizen<\/strong><\/span> is one of them. So Kaizen <\/strong><\/span>What is it?<\/p>

    Kaizen is actually an economic term originating from Japan. It is formed by combining two words. While \u201cKai\u201d means change and \u201cZen\u201d means better. In summary, Kaizen<\/strong><\/span> it means \u201cchange for the better\u201d or you can understand it as \u201ccontinuous improvement\u201d.<\/p>

    This is one of the famous business philosophies in the land of the rising sun since the 1950s (\u00c1lvarez-Garc\u00eda, 2018). Kaizen<\/strong><\/span> not only successfully applied by businesses in Japan but also used worldwide. Therefore, this term is translated into English as \u201dcontinuous improvement\u201d (Carnerud, 2018) \u2013 \u201ccontinuous improvement\u201d.<\/p>

    Many people still mistakenly believe Kaizen<\/strong><\/span> with the term \u201cInnovation\u201d in Western countries. In reality, the change of Kaizen<\/strong><\/span> focuses on people, with improvements on a rather small scale that gradually increase and achieve goals over a long period of time. This is completely different from the \u201cInnovation\u201d applied in the West.<\/p>

    2. C\u00e2u chuy\u1ec7n th\u1ef1c t\u1ebf \u2013 Toyota \u00e1p d\u1ee5ng Kaizen v\u00e0o qu\u1ea3n tr\u1ecb.<\/span><\/h2>
    \"Kaizen:
    Kaizen was adopted by Toyota to overcome difficulties and maintain the successful policy of \u201cno employee layoffs\u201d.\u201d<\/figcaption><\/figure>

    Throughout its history of formation and development, Toyota has faced numerous upheavals and challenges. Notable examples include the 2008 financial crisis and the severe impacts from the devastating earthquake in Japan and the historic tsunami in Thailand. However, even in the most difficult times and when facing the risk of bankruptcy, Toyota was determined to maintain the \u201cno employee layoffs\u201d policy.\u201d<\/p>

    2.1. Accepting to pay an extra 220 million USD\/year in loan interest and preferring to cut costs rather than lay off employees.<\/h3>

    During the Asian financial crisis in 1997, Toyota Thailand experienced four consecutive years of losses without cutting any jobs.<\/p>

    Quy\u1ebft \u0111\u1ecbnh n\u00e0y \u0111\u01b0\u1ee3c \u0111\u01b0a xu\u1ed1ng t\u1eeb ng\u01b0\u1eddi n\u1eafm gi\u1eef c\u01b0\u01a1ng v\u1ecb cao nh\u1ea5t c\u1ee7a Toyota l\u00fac b\u1ea5y gi\u1edd. \u0110\u00f3 l\u00e0 ch\u1ee7 t\u1ecbch Hiroshi Okuda. \u00d4ng Okuda \u0111\u00e3 ra l\u1ec7nh: \u201cC\u1eaft gi\u1ea3m t\u1ea5t c\u1ea3 c\u00e1c chi ph\u00ed, nh\u01b0ng kh\u00f4ng \u0111\u01b0\u1ee3c ch\u1ea1m v\u00e0o b\u1ea5t k\u1ef3 ng\u01b0\u1eddi n\u00e0o\u201d.<\/p>

    It was also because of this policy that in August 1998, Moddy<\/a> downgraded Toyota's credit rating to AA1<\/a> from AAA<\/a>. This means that Toyota has to borrow at higher interest rates and spend up to 220 million USD annually. Nevertheless, Toyota does not commit to abandoning its policy of job security for its employees.<\/p>

    2.2. Explaining why Toyota has existed for nearly 150 years without almost ever firing anyone?<\/h3>

    Kaizen<\/strong><\/span> applied by Toyota. This is originally a system born at the production site. But this philosophy is also seen as a system for training people to think. Through this, Toyota creates opportunities for employees to utilize their intelligence.<\/p>

    For someone to take action, they must be the one to contribute ideas. When they come up with ideas themselves, they will be confident and know how to act positively.<\/p>

    C\u00e2u h\u1ecfi \u0111\u1eb7t ra l\u00e0 l\u00e0m th\u1ebf n\u00e0o \u0111\u1ec3 m\u1ed9t ng\u01b0\u1eddi \u0111\u00f3ng g\u00f3p \u00fd ki\u1ebfn? \u0110\u01a1n gi\u1ea3n, ng\u01b0\u1eddi l\u00e3nh \u0111\u1ea1o h\u00e3y c\u1ed1 t\u00ecnh \u201cl\u00e0m kh\u00f3\u201d h\u1ecd m\u1ed9t ch\u00fat. M\u1ed9t khi \u0111\u1ed1i di\u1ec7n v\u1edbi th\u1eed th\u00e1ch hay kh\u00f3 kh\u0103n th\u00ec con ng\u01b0\u1eddi bu\u1ed9c ph\u1ea3i suy ngh\u0129 v\u00e0 \u0111\u01b0a ra c\u00e1ch gi\u1ea3i quy\u1ebft v\u1ea5n \u0111\u1ec1.<\/p>

    2.3. An interesting story about the birth of the Soluna car line<\/h3>
    \"The
    The fascinating birth of the Soluna - Toyota car line in Thailand<\/figcaption><\/figure>

    When starting to design and build the strategic car line in Asia, the Tercel line (also known as Soluna in Thailand). Mr. Takeshi Yoshida, the chief engineer, came up with the following interesting approach:<\/p>

    The Soluna line was intended to be sold in Thailand. The requirement for the engineers was to design a model with a contemporary selling price lower than the Corolla line. However, in the perception of many employees, Corolla was considered the lowest tier among Toyota's car lines.<\/p>

    Therefore, employees could not imagine what kind of vehicle would be produced if it were below even the Corolla line. So when asked: \u201dCan any part of the Corolla be removed?\u201d everyone answered that it was impossible.<\/p>

    Not long after, Mr. Yoshida deliberately created a very cheap and poor-quality car to show them. When they \u201cadmired\u201d this \u201cragged\u201d car, a series of opinions were given.<\/p>

    From Mr. Yoshida's bad idea, many good ideas were generated by everyone. As a result, the Soluna model was born.<\/p>

    Toyota-style Kaizen is fundamentally based on human intelligence. The role of the leader is to create an environment to \u201cdraw out and gather\u201d that intelligence. Accumulating small Kaizens will yield surprising long-term results.<\/p>

    3. What benefits do businesses gain from applying Kaizen?<\/span><\/h2>
    \"Benefits
    The tangible and intangible benefits that Kaizen brings to businesses.<\/figcaption><\/figure>

    When Kaizen<\/strong><\/span> when flexibly and reasonably applied to a business, it will bring many tangible as well as intangible benefits. So what are the benefits Kaizen<\/strong><\/span> What are they? Let's find out with DPS!<\/p>

    3.1. Tangible benefits for businesses<\/h3>

    There are 2 most typical tangible benefits for businesses when successfully applying Kaizen.<\/p>

    Firstly, your business will reduce waste; at the same time, it will increase productivity for your company. In Toyota's case, Kaizen<\/strong><\/span> it helped the company cut down on wastes such as: inventory, waiting time, transportation, and excessive production at the workshops.<\/p>

    Secondly, the business can also improve its operations during the process. In fact, at Toyota's production workshops, workers do not waste time sorting parts. They simply use plastic baskets for sorting. Additionally, they even build their own transport vehicles from available parts on the line and just need to install the engine. Thanks to this, Toyota was able to save about $3,000 on the cost of purchasing transport vehicles.<\/p>

    It can be seen that the business will be able to accumulate even the smallest improvements over a long period of time; thereby creating greater results.<\/p>

    3.2. Intangible benefits for the development of businesses<\/h3>

    Not only does it bring tangible benefits, but Kaizen<\/strong><\/span> it also brings three outstanding intangible benefits to the business.<\/p>

    First, each employee is encouraged and motivated to come up with good ideas that bring effective improvements to the company.<\/p>

    The second benefit is enhancing the team spirit of all employees. At the same time, it also increases internal unity within the business.<\/p>

    Finally, it is about building a culture of saving and continuous improvement in the business.<\/p>

    4. Steps to implement Kaizen.<\/span><\/h2>

    \u00a0<\/p>

    \"Plan
    Kaizen is implemented based on the PDCA cycle and is encapsulated in 8 steps.<\/figcaption><\/figure>

    By now, you probably have a basic understanding Kaizen<\/strong><\/span> of what it is, right! Next, DPS will introduce how you can effectively apply this philosophy to your business!<\/p>

    Kaizen<\/strong><\/span>is implemented based on the cycle PDCA<\/a> (Plan \u2013 Do \u2013 Check \u2013 Action). And it is encapsulated in 8 steps. Specifically, the steps include Kaizen<\/strong><\/span> include:<\/p>

    Step 1: Select the scope of Kaizen application.<\/h3>

    Businesses should pay attention when choosing the scope to apply. Kaizen<\/strong><\/span>. Here, the scope can be a production line or a specialized department. And you should ensure feasibility when implementing improvements.<\/p>

    To achieve greater certainty, try testing this philosophy at a specific point; then you can gradually expand until you reach the scale of the entire business.<\/p>

    Step 2: Understand the current situation and set goals for the business.<\/h3>

    Before developing a communication strategy IMC<\/a> or any other strategy, you always need to understand and assess the actual situation of your business. From there, you can set a unified, well-founded, and more feasible goal.<\/p>

    This will help your business avoid waste, make effective use of resources, and prevent unfinished plans.<\/p>

    You should remember that Kaizen<\/strong><\/span> is a philosophy, not a tool. Therefore, it requires a long-term commitment and effort from every member and every level within the business.<\/p>

    Step 3: Analyze the collected data and identify the root cause.<\/h3>

    After collecting all relevant and necessary data, the leadership should meet to review and assess the current state of the business. Most importantly, they can work together to identify the root causes of the problem.<\/p>

    Step 4: Based on data analysis, determine the implementation measures.<\/h3>

    Once the root cause of the issue is found, the next step is to propose solutions. Alongside the solutions are the criteria and tools to measure the achieved results.<\/p>

    Step 5: Implement Kaizen measures.<\/h3>

    This is the step where the philosophy Kaizen<\/strong><\/span> is applied according to the initial plan set out. During implementation, the leadership should create an environment that encourages employees to contribute ideas. At the same time, they are also responsible for gathering suitable suggestions, conducting regular checks, and supervising the practical application within the business.<\/p>

    Step 6: Confirm the results of the measures implemented.<\/h3>

    Once the measures have been implemented, the business needs to collect relevant data. The purpose is to measure and evaluate the results. At this step, you will use appropriate tools to compare the achieved results with the criteria set in Step 4.<\/p>

    Step 7: Establish or revise standards to overcome shortcomings.<\/h3>

    Once the results have been evaluated, the business may identify some shortcomings or areas that are not suitable when applying Kaizen<\/strong><\/span> to the practical operations of the business. Immediately, the leadership can make adjustments or adopt more appropriate measures to avoid applying Kaizen<\/strong><\/span> mechanically into your business.<\/p>

    Step 8: Review the above processes and determine the next project<\/h3>

    As DPS emphasized above, Kaizen<\/strong><\/span> is a philosophy that requires a relatively long time to see results. Keep that in mind and the business should not be impatient but must patiently carry out even the smallest things and deeply learn from each implementation. By doing this, surely in the long run, the business can achieve even greater accomplishments.<\/p>

    5. Factors that determine success when implementing the Kaizen philosophy.<\/span><\/h2>
    \"3
    3 factors greatly influence the success or failure of applying Kaizen to each business.<\/figcaption><\/figure>

    Understanding Kaizen<\/strong><\/span> what it is is one thing. But applying it in practice and succeeding is another matter. Because this philosophy is also affected by the following 3 crucial factors:<\/p>

    5.1. Commitment from top leadership<\/strong><\/h3>

    In the philosophy Kaizen<\/strong><\/span>, the role of the leader is especially emphasized. Because the leader is the one who steers the \u201cboat.\u201d They need to create an environment where employees can generate ideas such as:<\/p>

      \n
    • Teamwork.<\/li>\n
    • Network-based management.<\/li>\n
    • Invest in intellectual capital.<\/li>\n
    • Employee training.<\/li>\n<\/ul>

      5.2. The role of managers and team leaders<\/strong><\/h3>

      For team leaders or managers, they need to continuously maintain and improve current standards in technology as well as production management. This is aimed at achieving higher labor productivity. As a result, business outcomes improve.<\/p>

      5.3. Efforts and contributions from everyone<\/strong><\/h3>

      The success of the application Kaizen<\/strong><\/span> in the business is greatly determined by the participation and contribution of all employees. Regardless of their level, they must all recognize the importance of this philosophy. Every employee in the organization strives to participate and contribute ideas to establish a new mindset system and unite in building a proper business environment. The saying: \u201cIf you want to go fast, go alone. If you want to go far, go together\u201d is very true in this case.<\/p>

      6. What are the principles of Kaizen when applied?<\/span><\/h2>
      \"10
      10 unchanging principles of Kaizen over time.<\/figcaption><\/figure>

      Therefore, philosophy Kaizen<\/strong><\/span> has become as widely popular as it is today because it possesses timeless principles. Once a business has adopted it Kaizen<\/strong><\/span> it must be strictly adhered to. Regardless of whether your business is small or large. More specifically, Kaizen has the following 10 principles:<\/p>

      Principle 1: Always focus on customer benefits<\/strong><\/h3>

      All products or services created by the business must meet the needs of the target customers. Therefore, businesses need to focus on continuously improving the quality of their products or services, even if only slightly. At the same time, increase the benefits brought by the product; with the ultimate goal of achieving maximum customer satisfaction and delight.<\/p>

      Principle 2: Continuous improvement<\/strong><\/h3>

      Achieving the initial goal does not mean the improvement process is over. This is only the end of one phase; before moving on to the next phase.<\/p>

      Because customer needs will continue to increase in the future. Therefore, if a business does not want to be eliminated from the market, it must continuously improve to enhance product quality. This not only helps the business save time and costs, but also allows it to stay ahead of trends or even create new ones. That is, to create demand for customers even before they realize their own needs.<\/p>

      Principle 3: Build a no-blame culture<\/strong><\/h3>

      Each employee is assigned a specific task. When mistakes are made or tasks are not completed, responsibility must be assigned to the right person. Do not blame others or give unjustified excuses.<\/p>

      Principle 4: Promote an open corporate culture<\/strong><\/h3>

      An open corporate culture here means that employees dare to face their own mistakes and shortcomings. If an employee needs help from colleagues or superiors, they should proactively seek help from everyone.<\/p>

      Therefore, businesses need to establish an internal communication network where employees can help, learn from, and share experiences with each other.<\/p>

      Principle 5: Encourage teamwork based on the Kaizen philosophy<\/strong><\/h3>

      Businesses should aim to build a personnel structure based on effective working teams, instead of individual work.<\/p>

      When forming teams, clear delegation of authority is necessary. At the same time, they need to have agreements in place to resolve conflicts that arise within the team.<\/p>

      In this, the team leader needs to have leadership skills, while each team member needs to respect the agreements and each other's personalities.<\/p>

      Principle 6: Integrate multiple departments and functions in the same project<\/strong><\/h3>

      When carrying out any project, businesses should allocate and combine human resources from different departments. If necessary, you can also take advantage of external resources.<\/p>

      Principle 7: Establish proper relationships among all employees<\/strong><\/h3>

      To avoid creating adversarial or hostile relationships, businesses need to invest in communication skills training programs for staff. Additionally, businesses can organize team-building sessions to strengthen relationships among employees.<\/p>

      Building relationships among employees is also similar to building the culture of your business.<\/p>

      Principle 8: Foster discipline and self-awareness<\/strong><\/h3>

      Develop and train employees to have a sense of discipline as well as the spirit of self-awareness in complying with company rules.<\/p>

      Besides, employees also need to put work interests first. From there, they can self-assess and review themselves. This is aimed at helping them improve and overcome their own weaknesses.<\/p>

      Principle 9: Communicate information to all levels and employees<\/strong><\/h3>

      If you want to achieve high results at work, businesses should be transparent with their employees.<\/p>

      Because information is the most important factor that permeates and \u201cflows\u201d throughout the business process. Well-communicated internal information is the perfect way for businesses to share common difficulties and challenges with every employee in the organization.<\/p>

      Principle 10: Promote productivity and work efficiency<\/strong><\/h3>

      Simultaneously implement and consolidate internal training methods across all departments in the business.<\/p>

      In each project, it is necessary to assign specific and clear roles to each position for every team member. Each individual must utilize their abilities, proactively contribute ideas, and provide feedback.<\/p>

      When achievements are made, businesses need to promptly recognize and reward all team members. This will stimulate capabilities and enhance work efficiency across the entire company.<\/p>

      Hopefully, the above article has provided you with useful information regarding the philosophy. Kaizen<\/strong><\/span>. Wish you success in applying this philosophy to your business!<\/p>

      References:<\/h2>

      \u00c1lvarez-Garc\u00eda, J. D.-S. (2018). Systematic bibliometric analysis on Kaizen in scientific journals. The TQM Journal<\/em>.<\/p>

      Carnerud, D. J. (2018). Kaizen and continuous improvement\u2013trends and patterns over 30 years. The TQM Journal<\/em>.<\/p>\n