Masaya Hanai, the fourth chairman of Toyota, delivered a speech on cost reduction. The speech was published in the September 1978 issue of Kansai Keikyou magazine. In it, he emphasizes the importance of sustaining costs (not the cost of sustaining). Hanai highlights four pillars of cost reduction. Target costing Investment planning for equipment Sustaining cost Kaizen of cost Of the four, Hanai states that maintaining costs at the current level is the basis for all other acti

Masaya Hanai. The fourth chairman of Toyota. Not necessarily the friend of Taiichi Ohno. Or the rival. Both were coached by Taizo Ishida . Both became directors of Toyota in 1959. Hanai was responsible for finance, accounting, and purchasing. Ohno was responsible for production. And many saw the two arguing¹. But these arguments were important. This is not resistance. Such internal competition strengthens the organization. One of the arguments between Ohno and Hanai happened

“Profit-making Industrial Engineering.” That’s how Taiichi Ohno described the Toyota Production System. “Profit-making”? What’s so special about this? In the end, we are all seeking profit? The Japanese word Taiichi Ohno used here is “Moukeru,” which has a different meaning. Those meanings are; Prepared. Developing future leaders. Taiichi Ohno called the Toyota Production System “Profit-making Industrial Engineering.” What is the difference between traditional IE and the Toyo

Happy New Year! 2026 is the Year of the Fire Horse. The Chinese Zodiac indicates high energy and many movements this year. This post is about the horse. Horses came to Japan around the 4th century. They became a critical resource for the country, serving as essential military and civilian assets. You might imagine a samurai riding a horse from movies, but those are Thoroughbreds. Japanese horses, until the arrival of Thoroughbreds, were fat and small. A purebred of such a hor

“Repetition, Continuation, Conscientious” feels good. Sinsuke Kita (Haikyu!) Manga. A critical part of modern Japanese culture. The topics manga covers are broad, and some feature fascinating themes. The quote above is from Sinsuke Kita, a character in the manga “Haikyu!” “Haikyu!” is a volleyball manga and one of the best sports manga. This character is the captain of the opposing team to the main characters and was the semi-champion of the previous tournament. The team is f

On LinkedIn, you see many posts about Muri, Mura, and Muda that use a truck as an example. When the truck's capacity is 1.5t, always load 1.5t. That is push. What matters is market needs. Loading the truck to full capacity while ignoring market needs is a push. This is the same logic as production. Consistently producing at a process's maximum capacity is a push. We need to pace production to market demand. Muda of Transportation. Many Japanese words can be translated as 'tra

“Copy Toyota.” “Don’t copy Toyota.” There are posts on this topic. For the Japanese, “copy” or “imitate” is closely associated with learning. One of these words is “Manabu 【学ぶ】.” It means to study. You get coached or learn from your experiences. This word comes from “Mane-bu,” which means to copy, mainly just the motion or behaviors. “Maneru 【真似る】” is another word that comes from the exact origin, meaning to simulate, copy, imitate, follow, or emulate. There is another word c

“If you are prepared, you will have no worries.” A saying in Japan, originally from China. Question: As a manager, how much of your work is about preparation? The morning begins with the daily production meeting. Each team reports on their KPIs from the previous day. During the meeting, you experience a Déjà vu, asking yourself, “Didn’t we have this problem before?” But you look around, and nobody seems concerned. You don’t want to disrupt the atmosphere. Besides, this is wha

“The best good is like water.” Laozi Another quote from Laozi. It continues: “water helps everything, doesn’t conflict with anything, and flows to the lowest place.” This phrase embodies Laozi's philosophy. While this philosophy is known for accepting things as they are and for its passive nature, we can apply it in various ways. 1️⃣ Standardized workf low like water “People don’t follow the standardized work,” is a comment we often hear. Responding to such comments frequentl

"A journey of a thousand miles begins with a single step.” Laozi The wisdom of Laozi remains valuable in many ways. How do you interpret his teachings? The original lesson of this phrase is as follows; “Even if something is going to be a big problem, it is easier to deal with it early.” This is a surprising but original lesson. It’s because the original phrase doesn’t say “single step.” Instead, it says “beneath the foot.” 【千里之行始于足下】 So, to solve a big problem like a thousand

神出鬼没 Sinshutukibotu. A phrase we use to describe how our boss appears and disappears suddenly at the Genba. Taiichi Ohno was such a person. He would show up at the Genba without warning. Sometimes he would stand right behind you without notice. He was famous for these behaviors, and many people remembered his episodes. My coach was the same way. One day, my cell phone rang, and I answered it. The coach said, “I’m outside.” He was outside the factory without giving any notice.

While working in the factory, you might hear comments like “we didn’t hit the target because of the new hire.” That's not an issue. Why do we blame the new hire? Isn't the real problem elsewhere? 1. Problems Are Systemic, Not Personal “People do not fail — processes do.” A new hire operates within the system provided, including training, tools, supervision, and established standards. If a mistake occurs, it’s usually because the system failed, not the person. 🔹 Incomplete or

Flow works or operations—the core principle of Just In Time. The root of “flow operations” is Ford’s conveyor assembly line, which is undisputed. Toyota learned from Ford about the use of conveyor lines. However, the conveyor line spread to Germany, and the concept of “Fliessarbeit” or “Fliessende Arbeit” emerged. The idea is that by connecting the workstations and not using the conveyor, we can create a smooth flow works without stagnation. In 1930, this concept was introduc

5S outside Japan is often mistranslated and misleading. Especially, translating Seiketu as Standardization is frustrating. It's impossible to translate it that way. More importantly, why does standardization appear so late? In the early seventies, there was such thinking: “Standardize before Seiri Seiton.” At the start of the 5S activities in Japan during the mid-1970s, there was a man named Kameo Aoki. In 1976, Aoki wrote a series of monthly articles for the magazine “Manage

We learn something new every day. Our brain doesn’t switch from learning mode to any other mode. We keep learning all the time. If so, we must not send conflicting messages about what has been trained and daily practices. Otherwise, what has been taught becomes just a waste. A factory held a training on Muda, especially “Over-production.” The next day, a worker ignored a Kanban and kept running the machine. Since the machine kept operating, the OEE increased. He received a co

In the Toyota Production System, Andon is the light that turns on when a worker needs assistance. The yellow lamp signals for help, while the red lamp indicates that the line has stopped. The andon is a lamp that originated in China and came to Japan. It had a plate to hold the oil and a core to place the fire for lighting. As the lamp became popular in Japan during the Edo era, the Japanese began to surround it with paper to protect it from the wind, which could extinguish t

When we talk about flow, we refer to “one-piece flow” or “continuous flow.” Reading articles by Kaneyoshi Kusunoki, the second head of...

Taiichi Ohno said someone was “scolded.” You’ll probably see a sentence like this in many publications. The Japanese word behind "scold”...

In my last post, I shared the phrase, “Manufacturing is about human development.” 【ものづくりは人づくり】 When people hear this phrase, they often...

ものづくりは人づくり Mono-dukuri Wa Hito-dukuri. Manufacturing is about human development. This is a core philosophy of Toyota, but it was...