The development of Lean at Toyota—and its subsequent influence on Agile—was a groundbreaking journey that revolutionized not only manufacturing but also modern project management and software development. Toyota’s assembly lines in post-World War II Japan. Toyota’s journey to efficiency, adaptability, and continuous improvement didn’t just transform manufacturing—it planted the seeds for Lean principles, which would later inspire Agile methodology.
Here’s how Toyota’s revolutionary ideas laid the foundation for the Agile practices we know today.
The Post-War Challenge: A New Way to Compete
In the aftermath of World War II, Toyota faced enormous challenges. Resources were scarce, and Japan’s economy was struggling. Toyota couldn’t compete with American automakers like Ford, which thrived on mass production. Instead, the company needed a system that was efficient, adaptable, and customer focused.
Enter Kiichiro Toyoda, Taiichi Ohno, and Shigeo Shingo, the visionaries behind what would become the Toyota Production System (TPS). Their approach wasn’t just about making cars; it was about revolutionizing how work was done.
The Birth of Lean: Toyota’s Breakthroughs
Toyota’s innovations culminated in the Toyota Production System (TPS), a groundbreaking framework designed to maximize efficiency and eliminate waste. Here are the core principles they developed:
1. Just-In-Time (JIT): Produce What’s Needed, When It’s Needed
Inspired by American supermarkets, Toyota adopted a system where parts were only produced as needed. This eliminated excess inventory and ensured a steady, demand-driven workflow.
2. Kaizen (Continuous Improvement): Small Changes, Big Impact
Toyota empowered every worker to identify and solve problems. Small, incremental improvements made every day created a culture of excellence and innovation.
3. Respect for People: Empowering the Team
Unlike traditional top-down management, Toyota trusted and respected its workers. Teams could stop the production line if they noticed a defect, ensuring quality remained a top priority.
4. Eliminate Waste (Muda): Focus on What Adds Value
Toyota systematically identified and reduced waste—whether it was excess production, unnecessary movement, or defective products. The focus was always on delivering value to the customer.
Lean Principles Beyond Manufacturing
Toyota’s approach was so effective that its ideas quickly spread beyond the factory floor. Researchers in the 1990s began formalizing these principles as Lean Thinking, which emphasized:
- Delivering value efficiently.
- Minimizing waste.
- Continuously improving processes.
Lean’s adaptability made it relevant to industries like healthcare, education, and eventually, software development.
The Connection to Agile: How Lean Inspired a Revolution
By the late 1990s, software development was facing its own crisis. Traditional methods like the Waterfall model were too rigid and slow, leading to failed projects, missed deadlines, and dissatisfied customers. Developers started looking for better ways to work—and they found inspiration in Lean principles.
Key Lean Principles That Shaped Agile
- Iterative Progress (Kaizen → Sprints):
Lean’s emphasis on continuous improvement inspired Agile’s use of short iterations or sprints, where teams deliver incremental progress. - Customer-Centric Approach:
Just like Lean prioritizes customer value, Agile focuses on delivering working software that meets customer needs, even as they evolve. - Team Empowerment:
Toyota’s culture of empowering workers directly influenced Agile’s focus on self-organizing teams that make decisions collaboratively. - Minimizing Waste:
Agile eliminates waste by prioritizing simplicity, avoiding unnecessary documentation, and focusing on delivering what matters most.
The Agile Manifesto: Lean Principles Formalized for Software
In 2001, 17 software thought leaders gathered at a ski resort in Snowbird, Utah, to create the Agile Manifesto. While Toyota wasn’t directly mentioned, Lean’s influence was clear in Agile’s core values:
- Individuals and interactions over processes and tools.
- Working software over comprehensive documentation.
- Customer collaboration over contract negotiation.
- Responding to change over following a plan.
These values echoed Toyota’s adaptability, efficiency, and customer-first mindset.
Toyota’s Enduring Legacy in Agile and Beyond
Toyota’s innovations weren’t just about building cars—they were about creating systems that adapt to change, empower people, and focus on delivering value. While Agile evolved in a different context, its DNA can be traced back to Toyota’s assembly lines and the groundbreaking philosophy of the Toyota Production System.
Today, Agile isn’t just for software development. From marketing to education, its principles are transforming how we work and think. And it all started with Toyota’s quest to do more with less, turning challenges into opportunities for innovation.
Final Thoughts: A Timeless Philosophy
Toyota’s story is a testament to the power of continuous improvement, teamwork, and customer focus. Whether you’re building cars, writing code, or running a business, the principles behind Lean and Agile remind us that great results come from adapting, collaborating, and always striving for better.
Toyota didn’t just inspire Agile—it showed the world that even in the face of scarcity, ingenuity and collaboration can lead to extraordinary success.