Taiichi Ohno Quotes and Insights from “The Birth of Lean”

February 24, 2023 bizpi

From the book description: “There are a lot of books that describe the Toyota Production System, but most do so in a way that implies that there was a master plan to create a company-wide improvement system. But as the pioneers in The Birth of Lean explain, there was no master plan—TPS came about through experimentation, trial and error, and an evolution of ideas that shaped Toyota’s structure and management system. This is an honest look at the origins of Lean, written in the words of the people who created the system.”

One of the stories I liked was how Toyota decided they needed to move away from efficiency as the core metric (like most companies focus on). Toyota was trying to attempt to close the gap in automobile production efficiency between Japan and US (estimated to be about 10 times better in the US). They increased 5-6 times efficiency and were closing the gap, but they didn’t have enough customers to buy the cars, so Toyota nearly collapsed. This led to job cuts and worker unrest, and ultimately to the commitment for lifetime employment. But most importantly, it led to a focus on not overproducing, which they say is the worst type of waste.

There is a lot of focus on Taiichi Ohno (chapter 1 is an interview with him), and he has some excellent quotes that I liked:

“We learned to design systems that could be operated by anyone – amateurs – with a minimum of training. That’s what standardized work is all about.”
“The Toyota Production System is one and the same with (Total Quality Control) TQC and with its principle of zero defects. They’re simply different names for the same basic approach.”
“Make do with the equipment you’ve got.”
“Don’t automate anything.”
“Don’t spend any money.”
“Limit your production output to the numbers in the sales plan.”
“Your costs will eat up all your profit if you don’t watch out, so don’t hire more people.”
“When you go into the workplace, you should be looking for things that you can do for your people there. You’ve got no business in the workplace if you’re just there to be there. You’ve got to be looking for changes you can make for the benefit of the people who are working there.”
“As much as possible, get the opinions of the people who are actually doing the work. Wisdom is born from the ideas of novices. The veterans will spout off about what’s possible and what’s not possible on the basis of their experience and a tiny bit of knowledge. And when the veterans speak, everyone else keeps quiet. So kaizen can’t even get started.”
“You need to staff your line at a level where the line stops about 10% of the time. That’s the only way to make sure of getting problems out into the open. People think that everything’s great if the line keeps moving. But that’s wrong.
“It’s a good sign if your maintenance guys can sit around and play mahjong. You’re in trouble if they’re busy running around.”

Here is a summary of the chapters of the book

Chapter I: How It All Began (An Interview with Taiichi Ohno)
Taiichi Ohno describes the origins of the Toyota Production System (TPS) through his early work at Toyoda Boshoku and his subsequent transition to vehicle production during and after World War II. He applied principles from the textile industry to automobile manufacturing, establishing the “two pillars” of just-in-time and jidoka to catch up with U.S. productivity. Ohno details his initial experiments with leveling production, standardized work, and optimizing factory layouts to replace traditional “push” dynamics with a more efficient “pull” system.

Chapter II: What I Learned from Taiichi Ohno (A Talk by Michikazu Tanaka)
Michikazu Tanaka shares his experience implementing TPS at Daihatsu under Taiichi Ohno’s rigorous guidance, focusing heavily on the human element of manufacturing. He reveals that Ohno’s ultimate aim was not just technical efficiency or inventory reduction, but helping employees assert their full potential through creative tension and a relentless commitment to the gemba (workplace). Tanaka highlights that while many saw Ohno as an enemy of labor, he actually prioritized making work easier for operators and insisted on “acting on the spot” to resolve problems.

Chapter III: Putting a Pull System in Place at Toyota (Two Talks by Kikuo Suzumura)
Kikuo Suzumura explains the practical steps taken to implement pull systems throughout Toyota’s internal machining and assembly shops. Using colorful metaphors like the “Tokaido Line” train and the “bucket system” for heat treatment, he describes how he synchronized part delivery with assembly needs. Suzumura emphasizes the struggle of working across divisional boundaries and his efforts to create “iron computer” signaling systems that managed complex production flows long before the advent of modern electronic computers.

Chapter IV: The Evolution of Buffering at Toyota (Remarks by Kaneyoshi Kusunoki)
Kaneyoshi Kusunoki discusses the strategic use of production buffers, specifically between welding, painting, and assembly lines. He explains that while inventory is generally seen as a “necessary evil” to be minimized, small buffers are essential to insulate labor-intensive assembly work from mechanical breakdowns and the re-sequencing necessitated by complex painting specifications. Kusunoki highlights Toyota’s unique approach of increasing buffer stock when needed without expanding physical storage sites, thereby maintaining the pressure for continuous kaizen (improvement).

Chapter V: Total Quality Control and the Toyota Production System (A Talk by Masao Nemoto)
Masao Nemoto explores the vital role of Total Quality Control (TQC) as an indispensable counterpart to the technical efficiencies of TPS. He details how Toyota used policy management (hoshin kanri) and systematic PDCA (Plan-Do-Check-Act) cycles to build quality directly into production processes rather than relying solely on end-of-line inspections. Nemoto also stresses the importance of interdivisional cooperation, teaching managers to view the “following process as the customer” to effectively resolve the root causes of quality issues.

Chapter VI: The Guiding Management Perspective (Two Interviews with Eiji Toyoda)
Eiji Toyoda provides a senior management perspective on Toyota’s growth, emphasizing the company’s philosophy of in-house technological development. He discusses the strategic “gambles” taken in constructing major passenger car plants like Motomachi and Takaoka to leapfrog competitors despite uncertain demand. Toyoda reflects on the importance of the employee suggestion system (soikufu) and his conviction that management must remain flexible and committed to the workplace to successfully master the company’s destiny.