Toyota first caught the worlds attention in the 1980s whenconsumers started noticing that Toyota cars lasted longer andrequired fewer repairs than American cars. Today, the company istheworldsmostprofitablecarmanufacturer,consistentlyproducinghigh-quality cars using fewer man hours and less on-handinventories. To this day, Toyota continues to raise the bar formanufacturing,productiondevelopmentandprocessexcellence.explains the management principle and businessphilosophy behind Toyotas success. It narrates Toyotas approachto Lean Production (known as the Toyota Production System) andthe 14 principles that drive Toyota towards quality and excellence.The book also explains how you can adopt the same principles toimproveyourbusinessprocesses,whilecuttingdownonoperationsandproductioncosts.Toyota invented in the 1940s and 50s. Thecompany focused on eliminating wasted time and material fromeverystepoftheproductionprocess(fromrawmaterialstofinishedgoods).

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The Toyota Way

TheToyotaProductionSystem (TPS)andLeanProductionLean Production

OYOTA

Author:Publisher:Date of Publication:ISBN:Number of Pages:

JeffreyK.Liker McGrawHill20033300071392319pages

About theAuthor

bouttheAuthor

The Big Idea

heBigIdea

JeffreyLiker

Dr. Jeffrey K. Liker

is Professor of Industrial and Operations Engineeringat the . He is theDirector of the J(JTMP) and co-Director of the lean manufacturingprogram at the University of Michiganthatoffersa10-dayleanmanufacturingcertificate and a five-day lean productdevelopment certificate. Dr. Liker hasauthored or co-authored over 65articles and book chapters and fivebooks. He is also the Editor of (Productivity Press,1997), winner of the 1998 Shingo prize(for excellence in manufacturingresearch). He is active as a keynotespeaker,speakerforexecutiveretreats,and lean consultant, independently andthrough a company he cofounded --Optiprise, Inc. Recent clients includeG.M., Ford, Intier, PPG Industries,JohnsonControls,TennecoAutomotive,Framatome Technologies, NorthropGrumman Ship Systems, JacksonvilleNaval Air Depot, and Portsmouth NavalShipYard.

University of Michigan apan Technology Management Program Becoming Lean: Experiences of U.S.Manufacturers

JeffreyLiker

Published by BusinessSummaries, Building 3005 Unit 258, 4440 NW 73rd Ave, Miami, Florida 33166 ©2003 BusinessSummaries All rights reserved. No part of this summary may be reproduced or transmittedin any form or by any means, electronic, photocopying, or otherwise, without prior notice ofBusinessSummaries.com

The World Class Power of the Toyota Way

heWorldClassPoweroftheToyotaWay

The Toyota Way: Using Operational Excellence as a StrategicWeapon

TheToyotaWay:UsingOperationalExcellenceasaStrategicWeapon

14ManagementPrinciplesfromtheWorld’sGreatestManufacturer

4ManagementPrinciplesfromtheWorld’sGreatestManufacturer

The result was a fast and flexible process that gives the customers what they want,when they want it, at the highest quality and most affordable cost. Toyota improvedproductionby:Eliminatingwastedtimeandresources.Buildingqualityintoworkplacesystems.Findinglow-costandyetreliablealternativestoexpensivenewtechnology.Perfectingbusinessprocesses.Buildingalearningcultureforcontinuousimprovement.Toyota developed the after World War II. WhileFord and GM used mass production and economies of scale, Toyota faced verydifferentbusinessconditions.Toyota'smarketwasverysmallbutithadtoproduceavariety of vehicles on the same assembly line to satisfy customers. The solution:makingtheoperationsflexible. ThisresultedinthebirthofTPS.TPS borrowed some of its ideas from the United States.The core idea of thecamefromtheconceptofthe“pull-system”,whichwasinspiredbytheAmerican supermarkets. In the pull system, individual items are replenished aseachitembeginstorunlowontheshelf.AppliedtoToyota,itmeansthatthefirststepintheprocessisnotcompleteduntilthesecond step uses the materials or supplies from Step 1.AtToyota, every step of themanufacturing process uses to signal to the previous step when its partneedstobereplenished.ThecompanywasalsoinspiredbyW.EdwardsDeming.Asidefrombroadlydefiningcustomers to include internal and external clients, he also encouraged Toyota to

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Toyota Production System (TPS)

Just in Time(JIT)system Kanban

[2]

The “4P” Model of the Toyota Way

he“4P”ModeloftheToyotaWay

How Toyota Became the World’s Best Manufacturer

owToyotaBecametheWorld’sBestManufacturer

Philosophy:LongtermthinkingTheRightProcessWillProducetheRightResults

AddValuetotheOrganizationby

DevelopingYourPeopleandPartnersContinuouslySolvingRootProblemsDrivesOrganizationalLearning

TheToyotaWaybyJeffreyK.Liker

heToyotaWaybyJeffreyK.Liker

adopt a systematic approach to problem solving, which became a cornerstone forcontinuousimprovement(knownas )The point of the TPS is to minimize time spent on non-value adding activities bypositioningthematerialsandtoolsascloseaspossibletothepointofassembly.Theare:1. Overproduction.2. Waitingortimeonhand.3. Unnecessarytransportorconveyance.4. Overprocessingorincorrectprocessing.5. Excessinventory.6. Unnecessarymovement.7. Defects.8. Unusedemployeecreativity.TheToyotamessageisconsistent:This long-term philosophy is the guidingpost of the company in its continuous quest to offer the best in quality and service toitscustomers,employeesandstockholders..Develop, work, grow and align the company towards a common goal that is biggerthanmakingmoney.Yourphilosophicalmissionisandshouldbethefoundationofallyourotherprinciples.Toyotaisalignedaroundsatisfyingthecustomer.Itbelievesthatasatisfiedcustomercomes back and gives more business through referrals. It generates value for thecustomer,thesocietyandtheeconomy.One of the keys to success ofToyota is that it lives by the philosophy of self relianceanda“let'sdoitourselves”attitude.Thiscanbebestillustratedwhenitventuredintothe luxury car industry. It did not buy a company that already made luxury cars.Rather, it created its own luxury division - the Lexus - from scratch in order to learnandunderstandtheessenceofaluxurycar.The mass production system used by many manufacturers assures overproductionin large batches which in turn guarantees inventory being idle and taking up a lot of