The current financial crisis is hitting many companies now. Demand is decreasing at sometimes alarming rates. Some plants could actually temporarily stop their production. Toyota is no exception to this. What may be different at Toyota however, is how one reacts to such quiet crisis times.
Toyota’s Tundra Pickup Truck was developed for the American market: big, strong, powerfull and not exactly with a fuel economic engine. Fully alligned with the Toyota Way philosophy, the truck was assembled at a specially built new plant in San Antonio, Texas: in the heartland of its’ most important market.
The demand for this truck went rapidly down. In july it was at 40% below the already adjusted sales plan. So, Toyota decided to concentrate the production of this truck in Princeton, Indiana. And to stop the San Antonio line for a period of four months.
Contracts of temporary workers were interrupted. Long term team members were deployed to do loads of kaizen workshops and to engage in all sorts of skill training. Things the plant management had been eager to accomplish for several months. Having accomplished this, the plant is now prepared to quickly respond to new and rising demand. And to accomodate an adjusted production schedule –taking over some of the work from other plants-.
And this is exactly what one should do when facing a period of crisis: Ride the waves of the economy. Make use of great periods of calm. To improve and to be ready when the going gets tough again. That’s what long term Toyota Way thinking is all about.