Wastage - Case study of Toyota

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Wastage - Case study of Toyota

Postby Mustafa » Tue May 20, 2014 4:23 pm

Resources must be disposed of in such a way as to protect everyone’s
well-being (AlFaruqi, 1976). No one is authorized to destroy or waste God-given
resources. This is very relevant to ethics concerning business and the environment:

when Abu Bakr, the first ruler of the Islamic state after Muhammad, sent someone on
a war assignment, he exhorted him not to kill indiscriminately or to destroy vegetation
or animal life, even in war and on enemy territory. Thus there was no question of this
being allowed in peacetime or on home territory.

There shouldn’t be wastage in terms of: material, human capital, energy,
machine utilization, or processing time, Wastage is as a result of inefficiencies
resulting in the increase of costs and consequent decrease in profits. Continuous and
aggressive pursuit of wastage elimination led Toyota to become one of the most
efficient manufacturing organizations in the world. The Holy Quran had already spoken against wastage and lavish expenditures in sternest of words:, it says:

[17:26] “And render to the kindred their due rights, as (also) to those in want, and
to the wayfarer. But waste not (your wealth, time, health, talents, opportunities etc) in
the manner of a spendthrift.”

[17:27] “For the wasteful are the brothers of Satan; and Satan is ungrateful to his

[7:31] “O Children of Adam! wear your beautiful apparel at every time and place of
prayer: eat and drink: But waste not by excess, for Allah loveth not the wasters.”

It was Toyota who first understood and implemented this golden rule in business.
Their success is thus based on two principles:

1. Complete Elimination of Wastage; and

2. Equal Level of Respect for All Continuous and aggressive pursuit of wastage
elimination led Toyota to become one of the most efficient manufacturing
organizations in the world. The company is now able to produce the best quality of
automotive products at the least possible cost while maintaining the highest pay-scale
for its employees. Their success-story has inspired many companies throughout the
globe, including those in Pakistan and adoption of these principles and
methodologies in these companies concerning continuous elimination of waste
A Muslim must also strive to eliminate any wastage around him, at home, workplace,
or in society even when faced with resistance.

A very common example would be to control the use of water, food, and electricity according to the needs. Wastage of resources such as material in the workplace, man-hours, machine-hours,
human potential, and time should also be minimized. While 100% elimination is not
possible we should still try to get as close to it as possible, and this can only be
achieved through continuous struggle (Jihad). Muslims would find this easier to do
than non-Muslims because they have been explicitly instructed by the Holy Quran.
Continuous striving is the only way available to achieve minimum possible wastage
or maximum possible efficiency, which is nothing but Jihad in Arabic.
The Holy Quran confirms this fact:

[5:35]“You who believe! Have fear of Allah and seek the means of drawing near to
Him, and strive in His Way, so that hopefully you will be successful.”


Wastage minimisation subsequently leads to less environmental pollution. Businesses
must dispose of waste materials in the right way so in order not to harm especially
Muslims and everyone else. Others this would lead to ‘zulm’ which is severely
condemned in the holy Quran.

The concept of Just-in-Time which has been invented by Toyota has revolutionized
the Inventory Management Systems in the manufacturing organizations throughout
the world. It is based on the golden principle of keeping only that much amount of
inventory that is needed and that too in continuous movement in order to avoid inprocess
buffer inventory as much as possible until it is completely transformed into
the finished good.

A Muslim should be a born JIT expert. The Holy Quran instructs him in 2:219 that he
should spend on himself only as much as he needs and to give away the excess in the
way of Allah.

[2:219] “… They ask thee how much they are to spend in the way of Allah; Say:
‘What is beyond your needs.’”

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