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The Toyota Way

the toyota way, the toyota way pdf
The Toyota Way is a set of principles and behaviors that underlie the Toyota Motor Corporation's managerial approach and production system Toyota first summed up its philosophy, values and manufacturing ideals in 2001, calling it "The Toyota Way 2001" It consists of principles in two key areas: continuous improvement, and respect for people123

Contents

  • 1 Overview of the principles
  • 2 The 14 Principles
    • 21 Section I — Long-Term Philosophy
    • 22 Section II — The Right Process Will Produce the Right Results
    • 23 Section III — Add Value to the Organization by Developing Your People
    • 24 Section IV — Continuously Solving Root Problems Drives Organizational Learning
  • 3 Research findings
    • 31 Long-term philosophy
    • 32 Right process will produce right results
    • 33 Value to organization by developing people
    • 34 Solving root problems drives organizational learning
  • 4 Translating the principles
  • 5 Results
  • 6 See also
  • 7 References
  • 8 Further reading

Overview of the principlesedit

The Toyota Way has been called "a system designed to provide the tools for people to continually improve their work"4 The 14 principles of The Toyota Way are organized in four sections:

  1. Long-Term Philosophy
  2. The Right Process Will Produce the Right Results
  3. Add Value to the Organization by Developing Your People
  4. Continuously Solving Root Problems Drives Organizational Learning

The two focal points of the principles are continuous improvement and respect for people The principles for a continuous improvement include establishing a long-term vision, working on challenges, continual innovation, and going to the source of the issue or problem The principles relating to respect for people include ways of building respect and teamwork

The 14 Principlesedit

The system can be summarized in 14 principles5 The principles are set out and briefly described below:

Section I — Long-Term Philosophyedit

Principle 1

  • Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals

People need purpose to find motivation and establish goals

Section II — The Right Process Will Produce the Right Resultsedit

Principle 2

  • Create a continuous process flow to bring problems to the surface

Work processes are redesigned to eliminate waste muda through the process of continuous improvement — kaizen The seven types of muda are:

  1. Overproduction
  2. Waiting time on hand
  3. Unnecessary transport or conveyance
  4. Overprocessing or incorrect processing
  5. Excess inventory
  6. Motion
  7. Defects

Principle 3

  • Use "pull" systems to avoid overproduction

A method where a process signals its predecessor that more material is needed The pull system produces only the required material after the subsequent operation signals a need for it This process is necessary to reduce overproduction

Principle 4

  • Level out the workload heijunka Work like the tortoise, not the hare

This helps achieve the goal of minimizing waste muda, not overburdening people or the equipment muri, and not creating uneven production levels mura

Principle 5

  • Build a culture of stopping to fix problems, to get quality right the first time

Quality takes precedence Jidoka Any employee in the Toyota Production System has the authority to stop the process to signal a quality issue

Principle 6

  • Standardized tasks and processes are the foundation for continuous improvement and employee empowerment

Although Toyota has a bureaucratic system, the way that it is implemented allows for continuous improvement kaizen from the people affected by that system It empowers the employee to aid in the growth and improvement of the company

Principle 7

  • Use visual control so no problems are hidden

Included in this principle is the 5S Program - steps that are used to make all work spaces efficient and productive, help people share work stations, reduce time looking for needed tools and improve the work environment

  • Sort: Sort out unneeded items
  • Straighten: Have a place for everything
  • Shine: Keep the area clean
  • Standardize: Create rules and standard operating procedures
  • Sustain: Maintain the system and continue to improve it

Principle 8

  • Use only reliable, thoroughly tested technology that serves your people and processes

Technology is pulled by manufacturing, not pushed to manufacturing

Section III — Add Value to the Organization by Developing Your Peopleedit

Principle 9

  • Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others

Without constant attention, the principles will fade The principles have to be ingrained, it must be the way one thinks Employees must be educated and trained: they have to maintain a learning organization

Principle 10

  • Develop exceptional people and teams who follow your company's philosophy

Teams should consist of 4-5 people and numerous management tiers Success is based on the team, not the individual

Principle 11

  • Respect your extended network of partners and suppliers by challenging them and helping them improve

Toyota treats suppliers much like they treat their employees, challenging them to do better and helping them to achieve it Toyota provides cross functional teams to help suppliers discover and fix problems so that they can become a stronger, better supplier

Section IV — Continuously Solving Root Problems Drives Organizational Learningedit

Principle 12

  • Go and see for yourself to thoroughly understand the situation Genchi Genbutsu

Toyota managers are expected to "go-and-see" operations Without experiencing the situation firsthand, managers will not have an understanding of how it can be improved Furthermore, managers use Tadashi Yamashima's President, Toyota Technical Center TTC ten management principles as a guideline:

  1. Always keep the final target in mind
  2. Clearly assign tasks to yourself and others
  3. Think and speak on verified, proven information and data
  4. Take full advantage of the wisdom and experiences of others to send, gather or discuss information
  5. Share information with others in a timely fashion
  6. Always report, inform and consult in a timely manner
  7. Analyze and understand shortcomings in your capabilities in a measurable way
  8. Relentlessly strive to conduct kaizen activities
  9. Think "outside the box," or beyond common sense and standard rules
  10. Always be mindful of protecting your safety and health

Principle 13

  • Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly nemawashi

The following are decision parameters:

  1. Find what is really going on go-and-see to test
  2. Determine the underlying cause
  3. Consider a broad range of alternatives
  4. Build consensus on the resolution
  5. Use efficient communication tools

Principle 14

  • Become a learning organization through relentless reflection hansei and continuous improvement kaizen

The process of becoming a learning organization involves criticizing every aspect of what one does The general problem solving technique to determine the root cause of a problem includes:

  1. Initial problem perception
  2. Clarify the problem
  3. Locate area/point of cause
  4. Investigate root cause 5 whys
  5. Countermeasure
  6. Evaluate
  7. Standardize

Research findingsedit

In 2004, Dr Jeffrey Liker, a University of Michigan professor of industrial engineering, published The Toyota Way In his book Liker calls the Toyota Way "a system designed to provide the tools for people to continually improve their work"4 According to Liker, the 14 principles of The Toyota Way are organized in four sections: 1 long-term philosophy, 2 the right process will produce the right results, 3 add value to the organization by developing your people, and 4 continuously solving root problems drives organizational learning

Long-term philosophyedit

The first principle involves managing with a long-view rather than for short-term gain It reflects a belief that people need purpose to find motivation and establish goals

Right process will produce right resultsedit

The next seven principles are focused on process with an eye towards quality outcome Following these principles, work processes are redesigned to eliminate waste muda through the process of continuous improvement — kaizen The seven types of muda are 1 overproduction; 2 waiting, time on hand; 3 unnecessary transport or conveyance; 4 overprocessing or incorrect processing; 5 excess inventory; 6 motion; and 7 defects

The principles in this section empower employees in spite of the bureaucratic processes of Toyota, as any employee in the Toyota Production System has the authority to stop production to signal a quality issue, emphasizing that quality takes precedence Jidoka The way the Toyota bureaucratic system is implemented to allow for continuous improvement kaizen from the people affected by that system so that any employee may aid in the growth and improvement of the company

Recognition of the value of employees is also part of the principle of measured production rate heijunka, as a level workload helps avoid overburdening people and equipment muri, but this is also intended to minimize waste muda and avoid uneven production levels mura

These principles are also designed to ensure that only essential materials are employed to avoid overproduction, that the work environment is maintained efficiently the 5S Program to help people share work stations and to reduce time looking for needed tools, and that the technology used is reliable and thoroughly tested

Value to organization by developing peopleedit

Human development is the focus of principles 9 through 11 Principle 9 emphasizes the need to ensure that leaders embrace and promote the corporate philosophy This reflects, according to Liker, a belief that the principles have to be ingrained in employees to survive The 10th principle emphasizes the need of individuals and work teams to embrace the company's philosophy, with teams of 4-5 people who are judged in success by their team achievements, rather than their individual efforts Principle 11 looks to business partners, who are treated by Toyota much like they treat their employees Toyota challenges them to do better and helps them to achieve it, providing cross functional teams to help suppliers discover and fix problems so that they can become a stronger, better supplier

Solving root problems drives organizational learningedit

The final principles embrace a philosophy of problem solving that emphasizes thorough understanding, consensus-based solutions swiftly implemented and continual reflection hansei and improvement kaizen The 12th principle Genchi Genbutsu sets out the expectation that managers will personally evaluate operations so that they have a firsthand understanding of situations and problems Principle 13 encourages thorough consideration of possible solutions through a consensus process, with rapid implementation of decisions once reached nemawashi The final principle requires that Toyota be a "learning organization", continually reflecting on its practices and striving for improvement According to Liker, the process of becoming a learning organization involves criticizing every aspect of what one does

Translating the principlesedit

There is a question of uptake of the principles now that Toyota has production operations in many different countries around the world As a New York Times article notes, while the corporate culture may have been easily disseminated by word of mouth when Toyota manufacturing was only in Japan, with worldwide production, many different cultures must be taken into account Concepts such as "mutual ownership of problems", or "genchi genbutsu", solving problems at the source instead of behind desks, and the "kaizen mind", an unending sense of crisis behind the company’s constant drive to improve, may be unfamiliar to North Americans and people of other cultures A recent increase in vehicle recalls may be due, in part, to "a failure by Toyota to spread its obsession for craftsmanship among its growing ranks of overseas factory workers and managers" Toyota is attempting to address these needs by establishing training institutes in the United States and in Thailand6

Resultsedit

Toyota Way has been driven so deeply into the psyche of employees at all levels that it has morphed from a strategy into an important element of the company's culture7 According to Masaki Saruta, author of several books on Toyota, "the real Toyota Way is a culture of control"89 The Toyota Way rewards intense company loyalty that at the same time invariably reduces the voice of those who challenge authority1011 "The Toyota Way of constructive criticism to reach a better way of doing things 'is not always received in good spirit at home'"12 The Toyota Way management approach at the automaker "worked until it didn't"7

One consequence was when Toyota was given reports of sudden acceleration in its vehicles and the company faced a potential recall situation There were questions if Toyota's crisis was caused by the company losing sight of its own principles13 The Toyota Way in this case did not address the problem and provide direction on what the automaker would be doing, but managers instead protected the company and issued flat-out denials and placed the blame at others14 The consequence of the automaker's actions led to the 2009–11 Toyota vehicle recalls Although one of the Toyota Way principles is to "build a culture of stopping to fix problems to get quality right the first time," Akio Toyoda, President and CEO, stated during Congressional hearings that the reason for the problems was that his "company grew too fast"15 Toyota management had determined its goal was to become the world's largest automotive manufacturer16 According to some management consultants, when the pursuit of growth took priority, the automaker "lost sight of the key values that gave it its reputation in the first place"17

See alsoedit

  • The India Way - a modern management book, after the Toyota Way18
  • Kanban: a workflow management system also pioneered at Toyota
  • Karoshi death from overwork
  • 2009–11 Toyota vehicle recalls

Referencesedit

  1. ^ "Environmental & Social Report 2003" PDF Toyota Motor p 80 Retrieved 26 March 2012 
  2. ^ Toyota Motor Corporation Annual Report, 2003, page 19 "The Toyota Way, which has been passed down since the Companyʼs founding, is a unique set of values and manufacturing ideals Clearly, our operations are going to become more and more globalized With this in mind, we compiled a booklet, The Toyota Way 2001, in order to transcend the diverse languages and cultures of our employees and to communicate our philosophy to them" Mr Fujio Cho, President, Toyota Motor Corporation
  3. ^ "Sustainability Report 2009" PDF Toyota Motor p 54 Retrieved 26 March 2012 
  4. ^ a b Liker, Jeffrey 2004 "The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS" PDF University of Michigan p 36 Retrieved 26 March 2012 
  5. ^ Liker, Jeffrey K 2004 The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer McGraw-Hill ISBN 978-0-07-139231-0 
  6. ^ Fackler, Martin February 15, 2007 "The 'Toyota Way' Is Translated for a New Generation of Foreign Managers" The New York Times Retrieved 26 March 2012 
  7. ^ a b Heskett, James L 2012 The culture cycle : how to shape the unseen force that transforms performance FT Press p 130 ISBN 9780132779784 Retrieved 29 January 2014 
  8. ^ Glionna, John M 24 March 2010 "Toyota’s rigid culture criticized in light of recalls - Automaker’s Toyota Way handbook dictates details of employees’ lives, even in their off time" Chicago Tribune Retrieved 29 January 2014 
  9. ^ Hino, Satoshi 2006 Inside the mind of Toyota : management principles for enduring growth Productivity Press p 65 Retrieved 29 January 2014 
  10. ^ "Relations with Employees" Toyota Motors Retrieved 29 January 2014 
  11. ^ "Toyota Code of Conduct" PDF Toyota Motor Europe October 2006 Retrieved 29 January 2014 
  12. ^ Stanford, Naomi 2013 Corporate culture: getting it right Wiley p 130 ISBN 9781118163276 Retrieved 29 January 2014 
  13. ^ Tseng, Nin-Hai 10 March 2010 "Can the Toyota Way survive Toyota's ways" CNN Money Retrieved 29 January 2014 
  14. ^ Ordonez, Edward 1 December 2010 "When the Toyota Way Went Wrong" Risk Management Retrieved 29 January 2014 
  15. ^ "Hearing before the Committee on Oversight and Government Reform: Toyota gas pedals: is the public at risk" US Government Printing Office, Serial No 111-75 24 February 2010 Retrieved 29 January 2014 
  16. ^ Harden, Blaine 13 February 2010 "'Toyota Way' was lost on road to phenomenal worldwide growth" The Washington Post Retrieved 29 January 2014 
  17. ^ Harrison, Denise "Success Sows the Seeds of Failure - Toyota's Complacency Causes Reputation to Crash" Center for Simplified Strategic Planning Retrieved 29 January 2014 
  18. ^ Choudhury, Uttara 10 April 2010 "Jugaad enters management jargon" DNA India Diligent Media Corporation DNA Retrieved 26 March 2012 

Further readingedit

  • Hino, Satoshi 2005 Inside the Mind of Toyota: Management Principles for Enduring Growth Productivity Press ISBN 978-1-56327-300-1 
  • Liker, Jeffrey K; Meier, David 2005 The Toyota Way Fieldbook: A Practical Guide for Implementing Toyota's 4Ps McGraw-Hill ISBN 978-0-07-144893-2 

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The Toyota Way


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