The effects of the Toyota Way on agile manufacturing: an empirical analysis

Abstract

Purpose: The purpose of this research is to examine the impact of the Toyota Way (TW), TW pillars (i.e. continuous improvement, and respect for people), and TW elements (i.e. challenge, kaizen, genchi-genbutsu, respect, and teamwork) on agile manufacturing (AM) and AM elements (i.e. responsiveness, capability, speed and flexibility). Design/methodology/approach: Data were collected from 216 automotive parts manufacturers. Multiple and linear regressions were used to test the hypotheses. Findings: The study found that overall TW and both pillars have significant effects on overall AM and all AM elements, except for the influence of continuous improvement on speed and flexibility. No individual TW element can improve every AM element. TW and AM are not mutually exclusive. To improve AM, managers should apply TW as a set of integrated technical and personnel elements rather than as isolated elements. Originality/value: This study is one of the first to hierarchically explore the effects of socio-technical TW, TW's individual pillars and elements on overall AM and each AM element in the automotive parts industry. Findings from this research can be used to develop a socio-technical lean system to be integrated with AM more effectively leading to successful leagile manufacturing.