Knowledge@Australian School of Business

Driving Down Costs: Toyota Takes Lean Efficiencies Beyond Japan


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Until recently, Toyota had long been the world's top car-maker and it

rose to that position by using lean production methods. Its Toyota
Production System, which pivots on continuous improvement and respect
for people, became a best-practice management phenomenon, copied by many
in a wide range of sectors. But questions have arisen over such
silver-bullet theories of business excellence. And what happens when a
proven and spectacularly successful method is moved to a different
business environment outside Japan? Researchers from the Australian
School of Business have been exploring the upshot of Toyota's
manufacturing shift to Thailand, a lower-wage economy with less
consideration for its labour force.

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