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6. Case: Toyota’s Kaizen Experience

Question (a)

The answer is required to cover a brief description of the concept of Kaizen, and a detailed explanation of how Kaizen can be useful to organizations in improving their operational efficiency and competitive edge, drawing from the experience of Toyota.

The answer briefly describes the concept of Kaizen as well as that of Shojinka along with the activities that go into it.

While the answer has some relevant points, how the concept helped Toyota is not coming out clearly. Similar to the time and cost targets that have been explained, the pre-requisites of Kaizen, the wastes identified at Toyota, and how the Kaizen activities were largely aimed at eliminating wastes should have been detailed. How the Kaizen had helped Toyota to improve its operational efficiency and competitive edge in concrete terms has not been dealt with fully.

Question (b)

The answer is required to cover a detailed explanation of Kaizen costing for cost reduction, a discussion on how a labor crisis had arisen in Toyota, and an examination of what steps an organization should take to avoid such problems.

The answer has detailed the modifications Toyota had effected in the calculation of production efficiency, workers’ wages etc. These measures have been suggested as means of overcoming the problems that have arisen in Toyota.

But the impact of this apt explanation has been lost as the reason for the problems has not been brought out well. Kaizen, though very effective in achieving objectives, put a great deal of pressure on workers in terms of efficiency and rewards. This led to serious crisis, which should have been detailed to make the answer comprehensive.