Good story in the Wall Street Journal last week on how Toyota’s continued growth is putting some strains on the systems and methods that had made it the world leader in quality. It contains some points of interest not only for those in the automotive industry, but any interested in lean production methods.

Toyota has enjoyed tremendous success. As the article notes, the company has “nearly doubled its revenue in the past decade, and redefined competition in key parts of the automotive business.” Toyota’s profits last year exceeded those of GM and Ford combined.

But the growth, especially that driven by production outside of Japan, has come at a cost in terms of the quality that was key to the company’s market success and production efficiency. It’s Georgetown, KY plant has slipped badly in ratings from JD Power and Associates, and quality ratings on several individual models have also fallen from the top ranks.

What’s happened? The article suggests that with growth, there has been a watering down in both knowledge and belief in the famed “Toyota Production System” that not only led to the company’s own success but really is the foundation for much of today’s “lean” thinking across thousands of manufacturers.

Growth has sometimes put more focus on getting cars out the door than adherence to TPS principles. There has been a lack of TPS experts from Japan to train North American supervisors. Language barriers have played a role. There has been a much higher level of turnover in North America, both at the floor level, leading to training issues, as well as at the executive level as TPS experts went to Toyota rivals.

All this led executives from Japan to find that “some hourly workers began ignoring standardized work processes – considered one of the biggest sins inside Toyota plants because of the impact on the consistency and accuracy of manufacturing.”

The company is taking action, of course. More experts from Japan have been sent to Georgetown and other plants, and there is a new training program to develop more non-Japanese experts. Managers have been dragged down to the factory floor and supplier plants to gain a better understanding of real production issues. And in the company’s flagship operations in Toyota City in Japan, where a new generation of TPS innovations are delivering benefits, will soon be “exported” to other plants. These include, for example, having “kits” of parts delivered by suppliers and placed into the car as it moves down the assembly line, so that operators don’t have to look for the right parts in kanban bins – which both takes time and adds risk the wrong parts will be selected. Toyota calls it “error proofing,” or “poke yoke.”

As always with WSJ articles, we can’t provide a direct link, but please email us if you would like a copy of this article.

Are you surprised Toyota has had some troubles maintaining its TPS disciplines as it expands production globally? What lessons does the Toyota experience have for other manufacturers?