Supply Chain the Missing Link
I was researching post-World War II Sarashon and CCS contributions to Japan this morning based on this paper (https://www.jstor.org/stable/27919728). In addition, I listened to Katie Anderson's excellent book Learning to Lead, Leading to Learn this morning while working out. Then it hit me, Toyota's success can be traced back to a very recognizable thread—supply chain.
Supply Chain during World War II
To develop statistical sampling methods, the US War Department formed a committee from 1940 to 1942. The committee set Z1.1, Z1.2, and Z1.3 standards. MIL-STD-105 would be adopted as the military standard. From bombers and Band-Aids to M&Ms and MREs, you had to follow these rules if you wanted to sell to the armed forces. One of the six members of the committee was Dr. Deming. War training classes were developed using these standards. Representatives from the war industries and armed services procurement agencies attended the Stanford University courses on statistical quality control. Over 2,000 men and women from 700 industries participated in these courses. With the trainers training new trainers, over 31,000 engineers, supervisors, managers, and workers completed the course to create better weapons and supplies for the war effort. A total of 27 classes were taught by Deming, who contributed to the course design.
Development of Statistical Quality Control in Post-War Japan
Deming taught the same material at Stanford to Japanese students through JUSE courses starting in 1950. Denso, a Toyota supplier, developed a Total Quality Control (TQC) philosophy based on Deming's lectures, classes, and ideas during the 1960s. Denso was awarded the Deming prize in 1961. With the third-generation Corona, Toyota, impressed by Denso's TQC philosophy, brings Deming student Kaoru Ishikawa on board. One of the most substantial aspects of Toyota's success has always been its supply chain model and how they work with vendors. The Toyota Supply Chain model plays a significant role in the Toyota Way. Its success can be traced back to Deming's contributions to working with vendors on quality during the war.
