Perhaps the most famous example of TQM is Toyota's implementation of the Kanban system. A kanban is a physical signal that creates a chain reaction, resulting in a specific action. Toyota used this idea to implement its just-in-time (JIT) inventory process.

To make its assembly line more efficient, the company decided to keep just enough inventory on hand to fill customer orders as they were generated. Therefore, all parts of Toyota's assembly line are assigned a physical card that has an associated inventory number. Right before a part is installed in a car, the card is removed and moved up the supply chain, effectively requesting another of the same part. This allows the company to keep its inventory lean and not overstock unnecessary assets. Effective quality management resulted in better automobiles that could be produced at an affordable price.