History of Toyota Motors

In the beginning was Sakichi Toyoda, who was followed by Kiichiro Toyoda. Sakichi Toyoda began his entrepreneurial activities during the 19th century, but he established the basic philosophy for Toyota and some of its longstanding principles. Sakichi developed the first pillar of the Toyota production system, while Kiichiro developed its second pillar (see Chart I).

It was Sakichi who developed the principle of autonomation, which he initially applied to the textile industry. His focus was learning how to apply human intelligence to machines so that machines would function more effectively in service to people. He developed his ideas by watching, observing the way that women in his village operated handweaving machines. Sometimes he would spend all day watching people weave, learning more about how the machine operated.

This observation was eventually applied to the development of the Toyoda Spinning and Weaving company, which operated until the second World War. Sakichi had visualized the development of an automated loom in 1901, building upon his early observations, and it was perfected in Japan in 1926 and used by Toyoda Spinning and Weaving.

The Toyota Motor Company was established during the early part of th

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ion lagged until the late 1940s, although truck production reached high levels by the war years. Kiichiro Toyoda envisioned the second pillar of the Toyota production system, the justintime philosophy. He believed that the most effective way to work in an industry like the auto industry was to have all the parts needed for assembly t the line just in time for their use. In other words, he did not think a large inventory was efficient or productive. Kiichiro Toyoda did not live long enough to see fullscale production of Toyota automobiles. There were restrictions on smallcar production until 1949 and price controls. After these restrictions were abolished in 1949, Toyota moved toward fullscale production and independent sales. However, Kiichiro was not able to benefit from this. His last years were sad for him, because he took responsibility for a labor dispute occurring during early 1950 and resigned from the company, turning it over to Eiji. He died in 1952, just before fullscale operation began. So it is Eiji, Kiichiro's nephew, that took the Toyota Motor Company to its position of dominance in the world market. By the time Eiji took control, the Toyota Motor Company had produced fewer than 3,000 passenger cars,
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