The Power of 1%
I came across a note
about how Toyota continually improves itself. The concept of "1%
improvement" at Toyota isn't just a formal slogan; it reflects their core
principle of Kaizen. This philosophy emphasizes continuous, incremental
improvements in all aspects of their operations. Deeply ingrained in the Toyota
Production System (TPS), it drives employees at all levels to constantly seek
ways to optimize processes, reduce waste, and enhance efficiency.
While this idea
originates from a production environment, it can also serve as a universal
principle for individuals, companies, and nations alike. A 1% improvement might
seem small, but it's relative. For example, a 1% increase on an investment of
INR 10 is just 0.1, but on a company making INR 100 crores, it translates to
one crore—a significant amount that can be invested in banks, bonds, or used
for research and development.
Consider an
individual who walks 10000 steps a day and increases their daily steps by 1%
each day for 30 days. By the 30th day, they would have walked a total of 13478
steps.
Similarly, if a
salesperson sells products or services worth 25000 each day and increases their
sales by 1% every day while working 300 days a year, their total sales on the
300th day would be 494750.
We all have the
choice to either maintain our current efforts or strive for a 1% improvement in
everything we do. Today, Toyota sells 1.08 crore cars a year despite tough
competition.
In a world where AI
is increasingly taking over many jobs, it's crucial to focus on continuous
improvement rather than waiting for miracles to happen.
M.L.Narendra Kumar
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