Discourse on Management Strategies (Part 2): Mastery of On-Site Management and Digitalization Advances Critical to Business Expansion and Optimization

In a series of management discussions, Toyota Motor Corporation (TMC) has been focusing on digitalization and internalization, aiming to enhance productivity and competitiveness.

The recent changes in production at Toyota have been remarkable, with the company exceeding expectations even during the COVID-19 pandemic. This success has been attributed to a shift towards digitalization, a move that has been met with joy from team members involved in the internalization of engine control units.

Operating Officer Keiji Yamamoto has pledged to make bold investments in IT tools, considering the needs of the younger generation of digital natives. James Kuffner, Toyota's Chief Digital Officer, is spearheading this transformation, promoting a "cloud-first" approach for digital transformation.

One of the challenges Toyota faces in the digital domain is the IT infrastructure, with concerns about schedule sharing among group companies and an overall IT/digital working environment. These issues are being addressed to ensure that IT infrastructure supports productivity rather than slowing it down.

Masahiko Maeda, the Operating Officer in charge of technology, discussed the loss of control over processes due to outsourcing technologies. To counter this, Toyota is making efforts to regain control and "internalize" certain processes, such as the development of engine control units. This internalization has resulted in reduced development lead time and increased competitiveness.

Yoshihiro Nakata, Toyota's Senior General Manager in charge of overseas sales and business, mentioned efforts to streamline operations by eliminating coordination tasks aimed at obtaining upper-level approval and shifting towards a framework in which decision-making is based on direct dialogue between in-house company presidents and regional CEOs.

The next part of the management discussion series will focus on the Toyota Production System (TPS). The discussion between management and employee representatives at TMC, held on March 3, focused on the topic of 'growth and performance'.

However, concerns have been raised by young workers in technical/production fields and office staff (engineers and administrative members) about difficulties in advancing in their careers and contributing to customer happiness due to coordinating many tasks.

Koji Sato, president of GAZOO Racing Company, emphasized the importance of taking a comprehensive view of car making, rather than subdividing processes, in order to make ever-better cars.

Woven Planet, a Toyota subsidiary, is experimenting to develop state-of-the-art processes and security policies. The search results do not explicitly state the name of the person at Toyota responsible for improving collaboration between the headquarters and regional subsidiaries.

Chairperson Mitsuru Kawai reaffirmed the importance of taking on challenges for personal growth, job satisfaction, and industry trust. The discussions and initiatives at TMC aim to ensure that Toyota continues to be a leader in the automotive industry, adapting to the digital age while maintaining its commitment to quality and customer satisfaction.

Discourse on Management Strategies (Part 2): Mastery of On-Site Management and Digitalization Advances Critical to Business Expansion and Optimization