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The problem isn't with the methodology itself but with how it's implemented in practice. Lean makes your buffers a lot more visible to management, and if you co

The problem isn't with the methodology itself but with how it's implemented in practice. Lean makes your buffers a lot more visible to management, and if you combine that with a culture of short-sighted cost-cutting, you run into issues. The problem isn't lean; it's a management culture of short-sighted cost-cutting.

wongarsu 5y ago
And that management culture is an effect of how compensation works. Cut costs, put "reduced overhead by X Million" on resume, either get promoted or switch jobs before negative impact happens.
- philwelch 5y ago
  Which might explain how Toyota has less of these problems. I don't think Toyota executives are the type of people to make these kinds of moves and hop jobs. Ted Ogawa, President and CEO of Toyota North America (https://pressroom.toyota.com/biographies/tetsuo-ogawa/ https://pressroom.toyota.com/biographies/tetsuo-ogawa/): > After joining Toyota in 1984.... Mark Templin, President and CEO of Toyota Financial Services(https://pressroom.toyota.com/biographies/mark-templin/ https://pressroom.toyota.com/biographies/mark-templin/): > Since joining Toyota Motor Sales (TMS) in 1990, Templin has held a number of positions. Chris Nielsen, Executive Vice President, Product Support & Chief Quality Officer (https://pressroom.toyota.com/biographies/chris-nielsen/ https://pressroom.toyota.com/biographies/chris-nielsen/): > Nielsen joined Toyota in 1987 as a buyer at its Georgetown, Kentucky, plant Toshio Niimi, Executive Vice President, Production Engineering and Manufacturing (https://pressroom.toyota.com/biographies/toshio-niimi/ https://pressroom.toyota.com/biographies/toshio-niimi/): > Niimi joined TMC in 1984 and has held positions in the company’s engineering and manufacturing divisions. Takeshi Uchiyamada, Chairman of the Board of Directors (https://global.toyota/en/company/profile/executives/board-of-director/takeshi_uchiyamada.html https://global.toyota/en/company/profile/executives/board-of...): > Takeshi Uchiyamada was born on August 17, 1946. He graduated from Nagoya University with a degree in applied physics in March 1969, and joined Toyota Motor Corporation (TMC) in April the same year. Shigeru Hayakawa, Vice Chairman of the Board of Directors (https://global.toyota/en/company/profile/executives/board-of-director/shigeru_hayakawa.html https://global.toyota/en/company/profile/executives/board-of...): > Shigeru Hayakawa was born on September 15, 1953. He graduated from the University of Tokyo with a bachelor's degree in economics in March 1977, and joined Toyota Motor Corporation (TMC) in April of the same year. Akio Toyoda, President (https://global.toyota/en/company/profile/executives/board-of-director/akio_toyoda.html https://global.toyota/en/company/profile/executives/board-of...): > He joined Toyota Motor Corporation (TMC) in April 1984. (He also happens to be the grandson of the founder of Toyota.) Koji Kobayashi, Member of the Board of Directors (https://global.toyota/en/company/profile/executives/board-of-director/koji_kobayashi.html https://global.toyota/en/company/profile/executives/board-of...): > He graduated from Shiga University with a bachelor's degree in economics in March 1972, and joined Toyota Motor Corporation (TMC) in April of the same year. I can see how that would discourage short-term decision-making.

wongarsu 5y ago

And that management culture is an effect of how compensation works. Cut costs, put "reduced overhead by X Million" on resume, either get promoted or switch jobs before negative impact happens.

philwelch 5y ago
Which might explain how Toyota has less of these problems. I don't think Toyota executives are the type of people to make these kinds of moves and hop jobs. Ted Ogawa, President and CEO of Toyota North America (https://pressroom.toyota.com/biographies/tetsuo-ogawa/ https://pressroom.toyota.com/biographies/tetsuo-ogawa/): > After joining Toyota in 1984.... Mark Templin, President and CEO of Toyota Financial Services(https://pressroom.toyota.com/biographies/mark-templin/ https://pressroom.toyota.com/biographies/mark-templin/): > Since joining Toyota Motor Sales (TMS) in 1990, Templin has held a number of positions. Chris Nielsen, Executive Vice President, Product Support & Chief Quality Officer (https://pressroom.toyota.com/biographies/chris-nielsen/ https://pressroom.toyota.com/biographies/chris-nielsen/): > Nielsen joined Toyota in 1987 as a buyer at its Georgetown, Kentucky, plant Toshio Niimi, Executive Vice President, Production Engineering and Manufacturing (https://pressroom.toyota.com/biographies/toshio-niimi/ https://pressroom.toyota.com/biographies/toshio-niimi/): > Niimi joined TMC in 1984 and has held positions in the company’s engineering and manufacturing divisions. Takeshi Uchiyamada, Chairman of the Board of Directors (https://global.toyota/en/company/profile/executives/board-of-director/takeshi_uchiyamada.html https://global.toyota/en/company/profile/executives/board-of...): > Takeshi Uchiyamada was born on August 17, 1946. He graduated from Nagoya University with a degree in applied physics in March 1969, and joined Toyota Motor Corporation (TMC) in April the same year. Shigeru Hayakawa, Vice Chairman of the Board of Directors (https://global.toyota/en/company/profile/executives/board-of-director/shigeru_hayakawa.html https://global.toyota/en/company/profile/executives/board-of...): > Shigeru Hayakawa was born on September 15, 1953. He graduated from the University of Tokyo with a bachelor's degree in economics in March 1977, and joined Toyota Motor Corporation (TMC) in April of the same year. Akio Toyoda, President (https://global.toyota/en/company/profile/executives/board-of-director/akio_toyoda.html https://global.toyota/en/company/profile/executives/board-of...): > He joined Toyota Motor Corporation (TMC) in April 1984. (He also happens to be the grandson of the founder of Toyota.) Koji Kobayashi, Member of the Board of Directors (https://global.toyota/en/company/profile/executives/board-of-director/koji_kobayashi.html https://global.toyota/en/company/profile/executives/board-of...): > He graduated from Shiga University with a bachelor's degree in economics in March 1972, and joined Toyota Motor Corporation (TMC) in April of the same year. I can see how that would discourage short-term decision-making.