Tesla v Toyota| How Lean Manufacturing Transformed the Auto Game
The automotive industry was transformed by Toyota using Lean in the 1950’s, now undergoing major transformation with Tesla implementing comparable str

Tesla v Toyota| How Lean Manufacturing Transformed the Auto Game

Imagine a world where cars roll off the assembly line like perfectly baked cookies — crispy, delicious, and with zero chance of burning. Now, what if we told you that this level of precision was something Toyota mastered decades ago, thanks to a revolutionary concept called Lean? Fast forward to today, and Tesla is facing similar hurdles, though in a very different world.

Buckle up, because we’re about to take a joyride through history, comparing how Toyota’s Lean journey stacks up against Tesla’s modern-day challenges.


Toyota’s Lean, Mean, Manufacturing Machine

Toyota implemented Lean in the famous Toyota Production System to revolutionise automobile manufacturing in the 1950’s (photo by Yen Duong, Bloomberg)

Picture this: It’s the 1950s, and Toyota is the new kid on the block, trying to compete with the big dogs of the auto world. But there’s a problem — or three:

  • Resource Squeeze| Post-war Japan wasn’t exactly swimming in resources. Toyota had to get creative, finding ways to do more with less.
  • Quality Woes| Toyota needed to prove it could build cars that weren’t just good, but great — otherwise, why would anyone choose them over the established giants?
  • Customer Cravings| The market wasn’t just asking for cars; they wanted options — different models, features, colours. Toyota had to figure out how to meet these demands without breaking a sweat.


The Lean Revolution Begins

It only takes one bright spark to start a fire. Toyota transformed its industry by applying Lean practices (Photo by

Faced with these challenges, Toyota went all-in on Lean manufacturing, a game-changing approach that focused on efficiency, quality, and, above all, keeping customers happy:

  • Just-In-Time (JIT) Production| Toyota realised that sitting on piles of inventory was a no-go. Instead, they only brought in materials when they were needed, cutting down on waste and keeping things fresh.
  • Jidoka (Automation with a Human Touch)|Robots are cool, but Toyota knew that humans needed to be part of the equation to catch mistakes before they turned into big problems. Jidoka gave machines a brain and workers the power to stop the line if something looked off.
  • Kaizen (Continuous Improvement)| Think of Kaizen as the ultimate life hack. Toyota encouraged every employee to find ways to make things better, no matter how small the change. Over time, these little tweaks added up to massive gains.
  • Heijunka (Levelling Production)| Instead of cranking out a bunch of cars all at once and then hitting the brakes, Toyota levelled out their production flow. This kept things running smoothly and meant customers got their cars on time, every time.


Enter Tesla: A Modern-Day Lean Challenger

Tesla has taken the world by storm, addressing modern challenges by using strategies that bear an uncanny resemblance to Toyota’s Lean Production System (Photo by

Fast forward to today, and we’ve got Tesla — innovative, ambitious, and a little bit rock-and-roll. But Tesla’s not immune to challenges:

  • Supply Chain Scramble| Tesla’s got a thirst for batteries and semiconductors, but supply chain hiccups have made these precious resources harder to get than front-row seats at a rock concert.
  • Scaling Up Without Falling Down| Tesla’s known for pushing boundaries, but as they ramp up production, maintaining reputable quality has been a bit like trying to juggle flaming torches.
  • Meeting the Tech-Hungry Crowd| Tesla fans are tech-savvy, and they want the latest, greatest features yesterday. Tesla has to keep innovating without missing a beat in production.

Tesla’s Lean Moves Tesla’s been taking notes from Toyota’s playbook — while adding its own spin to the mix:

  • Gigafactory Magic| Tesla’s Gigafactories are built for speed and scale, designed to cut down on waste and boost efficiency. It’s like Just-In-Time on steroids, making sure Tesla can keep up with demand without drowning in inventory.
  • Automation Meets Human Ingenuity| Tesla’s learned the hard way that robots can’t do it all. By blending automation with human oversight (sound familiar, Jidoka?), they’re finding that sweet spot where tech and talent work hand in hand.
  • Relentless Improvement| Tesla’s all about innovation, and that’s where Kaizen comes in. They’re constantly tweaking and improving, whether it’s in production techniques or new vehicle features, keeping them ahead of the curve.
  • Flex Production| Tesla’s ability to quickly shift gears in production — whether ramping up a hot new model or tweaking designs — mirrors Toyota’s Heijunka strategy, keeping things balanced and customers happy.


The Road Ahead

While the future is unpredictable, Lean methodologies which offer key tools and core principles are proving to withstand the tests of time — and industries (Photo by

While Toyota and Tesla come from different eras, the challenges they face aren’t so different. Toyota’s Lean transformation turned them into a global powerhouse, and Tesla is following a similar path, using Lean principles to navigate the fast-paced, high-stakes world of modern manufacturing.

So, what’s the takeaway? Lean isn’t just a buzzword or a quick-fix bandage; it’s a way of thinking that can transform companies, whether you’re trying to conquer the post-war auto market or lead the charge in electric vehicles. And for both Toyota and Tesla, it’s clear that a commitment to efficiency, quality, and continuous improvement isn’t just a strategy — it’s the engine that drives them forward.


Embrace the Power of Lean

The 9-Step Change Cycle for successful business process improvement is a hybrid of Lean and Change Management methodologies. CCS Consultants are battle-worn Lean Sigma Black Belts bringing over 30 years of experience in Business Process Improvement and Change Management (picture by Change Consulting Scotland)

While Lean originated in manufacturing, today the methodologies have evolved to be applied across more and more industries with great impact: MacDonald’s, Nike, Amazon, the NHS are just a few. Our consultants are Lean Black Belts (read “masters of Lean”) and come armed with over 30 years of Project and Change Management experience across a variety of industries and sizes of companies. We apply Lean across your business processes — think Digital Transformations and the end of death-by-Excel!

Imagine if you could get most of your tasks complete and important information reported at the click of a button. Repeatedly. Imagine if you could trust your business process so much that you only needed to approve an expense once. What else could make your work-life ridiculously simple?

Book a free 30-minute chat with us to get started. Or, get started on your own with our free DMAIC Playbook.

Happy Lean-ing into change!

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