The difference is worker motivation.

• Position: Views of Fujio Cho, President and CEO of Toyota Motor Manufacturing U.S.A. Inc. - Special Section: Being a Global Leader

The Difference Is Worker Motivation

At Toyota, we have four principles that guide us in our actions and decisions: * To produce America's No. 1 quality car based on "customer first" philosphy. * To contribute to the quality of life, as well as to the economic growth, in the communities we serve. * To promote stable employment and improved well-being of employees through steady growth of the company. * To develop unique, innovative production and management systems by combining the best ideas of two countries.

The three main factors for plant operation in a manufacturing company are often expressed with three m's - man, machinery, and material. Let us consider the relative importance of these three factors in the success of present-day manufacturing industries. (In order to succeed, of course, all three must be working well.)

As technology advances, and communication and distribution systems become well developed on an international scale, all plants can have the same level of technology. In other words, in any manufacturing industry, a new technology becomes common knowledge in a very short time, and all companies will certainly incorporate the new technology in their operation. The same is true with newly developed material. As the saying goes, good news travels fast. The same goes for technological advances.

The same is true for machinery. As long as the money is available, anyone can buy state-of-the-art automated machines. Mass media are still paying a great deal of attention to robotics and to automation in a plant, but I suspect that the extent of automation and the use of robots in any automobile plant in North America is more or less the same. I do not think automation and robots are the deciding factors in the difference in quality or productivity among various auto plants.

Machines and material, then, are no longer decisive factors in determining success of the present-day manufacturing operation. I would like to rephrase the question of why a certain plant succeeds as follows: "Why are there differences in quality and productivity when everyone uses similar machinery and material?" The difference is man - i.e., the difference is employee motivation.

Our emphasis on respect for the individual worker and the success of good team management is exemplified through the Toyota production system. This system is not a Japanese system but, rather, one that is unique to Toyota. It is not just a production system but is a method for...