By: Greg Hutchins
03/17/2010
Toyota is in the news daily for its safety-related recalls. It’s sad… no, tragic. How could a company’s quality reputation be diluted so quickly? The pundits are saying that it will take many years to regain its lost quality reputation.
For Toyota, its reputation was its most important asset—not its property, plants, and equipment; not its Toyota Production System (lean management); not its quality tools nor its just-in-time processes. Toyota’s most important asset was its goodwill or brand equity. This is now history.
What happened?
Toyota invented the Toyota Production System (TPS), which incubated the lean industry, including just-in-time, quality processes, and countless improvement tools such as kanban. Toyota epitomized quality, not only in the auto industry, but globally. But something tragic happened.
According to news sources, Toyota wanted to overtake General Motors Co. to be the No. 1 auto manufacturer in the world. The New York Times reported: