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14 Toyota Way Principles

• Long – Term Philosophy
 Base your Management Decisions on a Long-Term Philosophy, even at the Expense of Short-Term Financial Goals

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14 Toyota Way Principles
• The Right Process Will Produce the Right Results
 Create Continuous Process Flow to Bring Problems to the Surface  Use “Pull” Systems to avoid Over Production  Level out the Work Load (Heijunka)  Build a Culture of Stopping to Fix Problems, to get Quality Right the First Time  Standardised Tasks are the foundation Improvement and Employee Empowerment  Use Visual Control so no Problems are Hidden  Use Only Reliable, Thoroughly Tested Technology that Serves your People and Processes
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.14 Toyota Way Principles • Add Value to the Organisation by Developing Your People and Partners  Grow Leaders who thoroughly understand the Work. Live the Philosophy and Teach it to Others  Develop Exceptional People and Teams who follow your Company’s Philosophy  Respect your Extended Network of Partners and Suppliers by Challenging them and Helping them Improve Continue …….

Implement Decisions Rapidly  Become a Learning Organisation through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen) . thoroughly Considering all Options.14 Toyota Way Principles • Continuously Solving Organisational Learning Root Problems Drives  Go and See for Yourself to thoroughly Understand the Situation  Make Decisions Slowly by Consensus.

implement rapidly People and Partners (Respect. challenge. Challenge and Grow Them) •Grow leaders who live the philosophy •Respect. thoroughly tested technology Philosophy (Long-term Thinking) •Base management decisions on a long-term philosophy. develop.“4 P” Model of The Toyota Way Problem Solving (Continuous Improvement & Learning) •Continual organizational learning through Kaizen •Go see for yourself to thoroughly understand the situation (Genchi Genbutsu) •Make decisions slowly by consensus. and challenge your people and teams •Respect. thoroughly considering all options. even at the expense of short-term financial goals . and help your suppliers Process (Eliminate Waste) •Create process “flow” to surface problems •Use pull systems to avoid overproduction •Level out the workload (Heijunka) •Stop when there is a quality problem (Jidoka) •Standardize tasks for continuous improvement •Use visual control so no problems are hidden •Use only reliable.

and challenge your people and teams •Respect. thoroughly tested technology ge Ch all en Philosophy (Long-term Thinking) •Base management decisions on a long-term philosophy. challenge. thoroughly considering all options. and help your suppliers Process (Eliminate Waste) •Create process “flow” to surface problems •Use pull systems to avoid overproduction •Level out the workload (Heijunka) •Stop when there is a quality problem (Jidoka) •Standardize tasks for continuous improvement •Use visual control so no problems are hidden •Use only reliable. Challenge and Grow Them) •Grow leaders who live the philosophy •Respect.“4 P” Model – Most Companies Ge Ge nch i nb uts u Problem Solving (Continuous Improvement & Learning) •Continual organizational learning through Kaizen •Go see for yourself to thoroughly understand the situation (Genchi Genbutsu) •Make decisions slowly by consensus. even at the expense of short-term financial goals . develop. implement rapidly Ka ize n Re Te spec am t & wo rk Where Most “Lean” Companies are People and Partners (Respect.

and challenge your people and teams •Respect. even at the expense of short-term financial goals . Challenge and Grow Them) Ka ize •Grow leaders who live the philosophy •Respect. implement rapidly Re Te spec am t & wo rk People and Partners (Respect. thoroughly tested technology ge Ch all en Philosophy (Long-term Thinking) •Base management decisions on a long-term philosophy. develop.“4 P” Model of The Toyota Way Ge Ge nch i nb uts u Toyota’s Terms Problem Solving (Continuous Improvement & Learning) •Continual organizational learning through Kaizen •Go see for yourself to thoroughly understand the situation (Genchi Genbutsu) •Make decisions slowly by consensus. and help your suppliers n Process (Eliminate Waste) •Create process “flow” to surface problems •Use pull systems to avoid overproduction •Level out the workload (Heijunka) •Stop when there is a quality problem (Jidoka) •Standardize tasks for continuous improvement •Use visual control so no problems are hidden •Use only reliable. challenge. thoroughly considering all options.

Toyota Production System House Best Quality – Lowest Cost – Shortest Lead Time – Best Safety – High Morale Through shortening the production flow by eliminating waste Just-in-Time Right Part. Right Amount. Right Time Take Time Planning Continuous Flow Pull System Quick Changeover Integrated Logistics • • • • • People & Teamwork Selection Common Goals Ringi Decision Making Cross – Trained • • • • • • • Jidoka (In-station Quality) Make Problems Visible Automatic Stops Andon Person – Machine Separation Error Proofing In-station Quality Control Solve Root Cause of Problems (5 Why’s) Continuous Improvement Waste Reduction Genchi Genbutsu 5 Why’s Eyes for Waste Problem Solving • • • • Leveled Production (Heijunka) Stable and Standardized Processes Visual Management Toyota Way Philosophy • • • .

Deming Cycle Plan Across Companies Plan Company Plan Group Plan Act Act Act Act Project Do Do Do Do Check Check Check Check .

Creating Flow and PDCA Create Flow (Act) Evaluate Results (Check) Eliminate Waste Surface Problems (Plan) Counter Measures (Do) .

Three M’s Muda Waste Mura Unevenness Muri Overburden .

apparent) Condition • Total (vs.Toyota Leader’s View Management AN M • • • • JIT Jidoke Kaizen Heijunka NI Technical • Stability L PEOPLE Long – term Asset –> Learned Skills Machinery Depreciates -> Loses Value People Appreciates -> Continue to Grow • True North • Tools to Focus Management Attention • Go and See • Problem – Solving • Presentation Skills • Project Management • Supportive Culture CA AG EN EM TE CH T PHILOSOPHICAL Philosophy / Basic Thinking • • • • Customer First People are most Important Asset Kaizen Go and See -> Focus on Floor • Give feedback to Team Members and Earn Respect • Efficiency Thinking • True (vs. Individual) Team Involvement .

Supply Chain Need Hierarchy Learning Enterprise Re io n Next Level of Improvement gr es ct si ng tis fa Enabling Systems Ne Sa ed ed Sa Ne ti s g c fa in re ss Clear Expectations t io n Pr og Stability Stable. Reliable Processes Fair and Honorable Business Relations .

With Full Authority Time • Decision Making is Highly Situational • Philosophy is to seek Maximum Involvement for Each Situation . Management Approval Group Consensus. then Decide and Announce Decide and Announce Seek Group Input.Alternative Toyota Decision Making Methods Level of Involvement Seek Individual Input. then Decide and Announce Group Consensus.

Disciplined Workplace • Evolutionary .Myth Vs. Reality Myth What TPS is Not • A Tangible recipe for Success • A Management Project or Program • A set of Tools for Implementation • A system for Production Floor only • Implementable in a Short or Mid-term Period Reality What TPS Is • A Consistent way of Thinking • A Total Management Philosophy • Focus on Total Customer Satisfaction • An Environment of Teamwork and Improvement • A Never-ending Search for a Better Way • Quality Built in Process • Organised.

Visual Management. Continuous Measurements relative to Targets. Train & Reward with Money Performance relative to Standards. Safe Working Conditions satisfy Lower Level Needs Culture of Continuous Improvement supports Growth towards Self Actualization 5S. HR Policies address Hygiene Factors. Reinforce Behaviour on the spot when the Behaviour Naturally Occurs Set Specific. Good Pay. Eliminate “Dissatisfiers” (Hygiene Factor) and Design Work to Create Positive Satisfiers (Motivators) Toyota Approach Job Security. All Scientific Management Principles followed but at the Group Level rather than Individual Level and based on Employee Involvement Continuous flow & andon creates short-lead times for Rapid Feedback. Achieveable Challenging Goals and Measure Progress. Leaders constantly on the floor and Providing Reinforcement. Design Standardized Jobs.Motivation Theories & The Toyota Way Internal Motivation Theories Maslow’s Need Hierarchy Concept Satisfy Lower Level Needs and Move Employees up the Hierarchy toward Self Actualization. Herzberg’s Job Enrichment Theory External Motivation Theories Taylor’s Scientific Management Scientifically Select. Behaviour Modifications Goal Setting . Job Rotation and Build -in Feedback Support Motivators. Ergonomics Programs. Continuous Improvement. Measurable. Sets Goals that meet these Criteria Through Hoshin Kanri (Policy Deployment).

Enabling Bureaucracy SOCIAL STRUCTURE Coercive Bureaucracy • Rigid Rule Enforcement • Extensive Written Rules and Procedures • Hierarchy Controls TECHNICAL STRUCTURE High Bureaucracy Enabling Bureaucracy • Empowered Employees • Rules and Procedures as Enabling Tools • Hierarchy Supports Organisational Learning Autocratic Low Bureaucracy • Top Down Control • Minimum Written Rules and Procedures • Hierarchy Controls Organic • Empowered Employees • Minimum Rules and Procedures • Little Hierarchy Coercive Enabling .Coercive Vs.

5 S’s Sort Clear out rarely used Items by Red Tagging Sustain Use Regular Management Audits to Stay Disciplined Eliminate Waste Straighten Organise and Label a Place for Everything Standardise Create Rules to Sustain the first 3 5’S Shine Clean It .

Waste in a Value System Casting Time Transportation Staging Machining Setup Inspection Staging Assembly Raw Material Value – Added Time Non-Value-Added Time (Waste) Time Finished Parts • Value-added Time is only a Small Percentage of the Total Time • Traditional Cost Savings focuses only on Value-adding Items • Lean Thinking Focuses on the Value Stream to Eliminate Non-Value-Adding Items .

Initial Problem Perception (Large. Evaluate 7. Standardise . Locate Area / Point of Cause POC Why? Why? Why? Why? Why? Cause Investigation Direct Cause Cause Cause Cause Cause Basic Cause and Effect Investigation 4. Clarify the Problem The “Real Problem Grasp the Situation 3. Complicated Problem) 2. Vague. Countermeasure 6.Practical Problem-Solving Process 1. 5 – Why? Investigation of Root Cause Root Cause 5.

The Andon System .

Waste in a Truck Chassis Assembly Line .

TPS Flow Environment .

Product Development Matrix .

Team & Batch Production Vs. On-Piece Flow .