Toyota’s origins lie in the Japanese weaving industry when Sakichi Toyoda invented the world’s first automatic loom and, subsequently, set up the Toyoda Spinning and Weaving Company in 1918. His invention reduced defects and increased yields since a loom stopped and would not go on producing imperfect fabric and using up thread after a problem occurred. This principle of designing equipment to stop automatically and call attention to problems immediately (jidoka) remains crucial to the Toyota Production System today.