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indeed more or less suggest that this was the case (Cusumano 1985;
Fujimoto 1999). Low levels of demand prevailed even before the war.
The early car market in Japan was affected by  small land space, bad road
conditions, and low income levels , all of which increased demand for
small cars rather than large ones (Shimokawa 1994, p. 226). Initially,
98 Institutions, Communication and Values
however, Toyota, was not particularly responsive to these market condi-
tions. In the 1930s Kiichiro Toyoda, driven by his ambition to compete
head-on with US car makers, unlike Nissan opted for a 3000cc  people s
car  which had to be large enough to cater to the US market  instead
of a small car (Wada and Yui 2002, pp. 239 41). His first prototype auto-
mobile was based on American models (Odaka et al. 1988, p. 125; Wada
and Yui 2002, p. 247) and only once car production was re-established
after the war did Kiichiro define the production of a small car, of between
1000 and 1500cc, as an aim for his company (Toyota 1988, pp. 100 1).
Ohno is emphatic that the post-war fragmented demand for many prod-
uct varieties required JIT production (Ohno 1988, p. xiii). However, in the
first years following the defeat of Japan, Japanese car makers mainly pro-
duced trucks for civilian purposes and demand for private cars remained
low. The Japanese government was subject to the authority of the US
Supreme Commander of Allied Powers (SCAP) or General Headquarters
(GHQ) between 1945 and 1952. In a continuation of wartime policy,
scarce resources were to be directed to necessary goods, in particular
toward the revitalization of heavy industry. GHQ moderated the ban
on domestic production of passenger cars in June 1947 (raising allow-
able production slightly to a maximum of 300 cars per year) and lifted
the ban altogether only in October 1949. Moreover, Japanese car mak-
ers were not protected against imports of US cars that were far superior
in quality (Cusumano 1985, p. 7). Post-war demand was thus indeed
initially low, but it was not particularly diverse. Toyota produced some
20,000 trucks and buses and a few hundred passenger cars between 1947
and 1949 (Toyota 1988, p. 461); overall, production consisted mainly
of one type of truck for the depressed civilian market (Cusumano 1985,
p. 266). Thus the combination of both low and fragmented demand to
imprint Toyota s lean production between 1947 and 1949 did not exist,
an argument reinforced by the fact that Toyota s first application of JIT
by Kiichiro Toyoda was not to diverse vehicle production but was almost
exclusively concerned with manufacturing standard military trucks.
Availability of material and financial resources
The same qualification applies to a frequent suggestion in the literature
that an initial scarcity of material resources imprinted on the Toyota
Production System. For instance, a group of Toyota officials has labelled
the lack of natural resources as  the most distinctive feature of Japan
(Sugimori et al. 1977, p. 553) and claimed that this focused Japanese
industries  more closely than industries in other countries  on minimiz-
ing costs while still maintaining the production of high quality goods.
Path Dependence, Initial Conditions and Routines 99
More specifically, Coriat (2000, p. 218) identifies the lack of raw mater-
ials as a circumstance peculiar to the early post-war years, stimulating
Japanese companies to search for material-saving working methods. In
fact, scarcity of raw materials plagued the Japanese economy, including
Toyota (Toyota 1988, pp. 75 6 and 99 100), from 1941, when the allied
forces blocked shipments to Japan, through the initial post-war years
when the victors put the Japanese economy on short rations (Cohen
1949). Nonetheless, the literature does not contain any references to
specific empirical data indicating that scarcity of raw materials actually
stimulated or even necessitated the (re)introduction of JIT production at
Toyota in the first post-war years. Around 1948, when Ohno was begin-
ning his experiments, Toyota often had to wait for parts from its suppliers
until the middle of the month, forcing it to realize its planned monthly
production in just two weeks (Cusumano 1985, p. 278). Shortage of mat-
erials thus prevented JIT-production, as Kiichiro Toyoda had experienced
in 1939. Cusumano (1985, p. 264) offers a more plausible version of
an explanation in terms of material resources:  The Japanese, reacting
originally to shortages of space and low production volume, developed
the practice of consolidating various shops under one roof rather than
building separate facilities for casting, body stamping, final assembly, or
other distinct operations (italics added). Still, consolidation does not
necessary imply JIT production. A lean production system character-
ized by multi-purpose equipment, low intermediate inventories and a
minimum of warehouse space, makes at least as much sense from a per-
spective of limiting investments as of minimizing the use of materials.
More relevant therefore were perhaps the limited financial means avail-
able to Toyota that  like Nissan  had great difficulty during this period
in remaining in business (Fujimoto 1999; Cusumano 1985).
Availability of labour resources
Characteristically, Ohno himself stressed the importance of JIT for the
identification and avoidance of  waste  in the shape of idle labour rather
than of raw materials (Ohno 1988, p. 13; Shingo 1989; Williams et al.
1994). This despite the abundance of labour in the first post-war years,
when production for the military had stopped and many skilled workers
were on the labour market (Gordon 1985, pp. 334 and 346). It should be
noted that, on the other hand, the auto workers position was strength-
ened considerably by the democratization policy of GHQ in the first
post-war years. Japanese union membership grew from negligible roots
to more than 6.5 million in June 1948 (Okayama 1987, p. 171) and
an industry-wide car workers union was formed in 1947. In the same
100 Institutions, Communication and Values
year, Ohno introduced the practice of workers handling more than one
machine each in the so-called L-layout in Toyota s machine-shop (Ohno
1988, p. 11). Multi-machine handling, a prime example of what was
later denoted by the company as  autonomation ( automation with a
human face ), became a central element in Toyota s lean production
system. To save labour, Toyota increasingly used multi-functional work-
ers, restructuring jobs so that operations became more versatile, but also
demanded less skill than before. The craft element of production that had
prevailed in Japanese car production until then was abandoned (Daito
2000, pp. 147 9; Okayama 1987, pp. 178 9; Fujimoto, 1999, p. 64).
Toyota s first post-war application of lean production thus owed more to
a strategic decision to reduce dependence on skilled labour than to any
 imprinting by the external condition of scarcity in material resources.
8.5 Meta-routines as selection mechanism
The common focus on specific external economic initial conditions as
the main imprinting factor on the emergence of lean production at
Toyota does not pass the empirical test. The adoption of JIT has also been
related, however, to an economy-wide  wartime passion for avoiding the [ Pobierz całość w formacie PDF ]
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