Japan is one of the most developed countries in the world, despite being geographically located in the area that often suffers from natural disasters such as earthquakes, tsunamis, etc. The reasons for their great development are based on the life philosophies that have been turned into production philosophies that have managed to push the Japanese economy toward the most developed world economies. Those philosophies creates a set of Japanese production philosophies, mostly designed in Toyota motor factory. They are based on waste reducion and constant improvement. Today, they are successfully implemented in many of the world's largest companies and they are also represented in Croatia. The paper deals with the history of the Japanese economy, philosophies and a Toyota's production system. Toyota production system is based on philosophies that are desribed in paper. Except from above mentioned, last two chapters deals with differences between western and japanese philosophies and the implementation of those philosophies in Croatia and describing the current situation and possibilities.