The Toyota Way

THE TOYOTA WAY An Abridged Version Philosophy (Long-Term Thinking) Process (Eliminate Waste) People & Partners (Respect, Challenge & Grow Them)) Problem Solving (Continuous Improvement & Learning) Challenge Kaizen Respect & Teamwork Genchi Genbutsu Leveled Production (Heijunka) Stable & Standardized Process Visual Management Toyota Way Philosophy TPS Best Quality – Lowest Cost – Shortest lead Time – Best Safety – High Morale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Continuous Improvement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Group Facilitator “ You are Empowered” Bureaucratic Manager “ Follow the Rules” Builder of Learning Organizations “ Here is Our Purpose and Direction, I will Guide and Coach” Task Master “ Here is what to do and how – Do It!” TOYOTA LEADERS Top-Down (Directives) Bottom-up (Development) General Management Expertise In-Depth Understanding Of Work

Sneaks ……. The Toyota Way can be briefly summarized through two pillars that support it : “ Continuous Improvement ” and “ Respect for People ”. ,[object Object],[object Object],[object Object],[object Object],They “ designed-in quality ” and “ built-in quality ” at every step of the process, and they did it with remarkably few labor hours. There was a sense of partnership between Toyota and its suppliers … the top tier suppliers were all integrally part of the product development process. “ The key to Toyota Way and what makes Toyota stand out is not any of the individual elements … But what is important is having all the elements together as a system . It must be practiced everyday in a very consistent manner --- not in spurts” … … … Fujio Cho, President of Toyota Motor Company. Its success is derived from balancing the role of people in an organizational culture that expects and values their continuous improvements, with a technical system focused on high-value-added “flow ”. Long-term Philosophy The Right Process will produce the Right Results Add Value to the Organization by Developing your People and Partners Continuously Solving Root Problems Drives Organizational Learning

“ 4P” model of the Toyota Way ……. Philosophy (Long-Term Thinking) Process (Eliminate Waste) People & Partners (Respect, Challenge & Grow Them)) Problem Solving (Continuous Improvement & Learning) Challenge Kaizen Respect & Teamwork Genchi Genbutsu Toyota’s Terms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The Toyota Production System ……. Leveled Production (Heijunka) Stable & Standardized Process Visual Management Toyota Way Philosophy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Continuous Improvement Best Quality – Lowest Cost – Shortest lead Time – Best Safety – High Morale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 1 … Base Your Management Decisions on a Long-Term Philosophy, Even at the Expense of Shot-Term Financial Goals ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],GUIDING PRINCIPLES AT TOYOTA MOTOR CORPORATION

Principle 2 … Create Continuous Process Flow to Bring Problems to the Surface ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],BENEFITS OF ONE-PIECE FLOW ,[object Object],[object Object],[object Object],4. Frees up Floor Space 5. Improves Safety 6. Improves Morale 7. Reduces Cost of Inventory

Principle 3 … Use “Pull” Systems to Avoid Overproduction ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 4 … Level Out the Workload (Heijunka) ,[object Object],[object Object],Unleveled Schedule Disadvantages Leveled Schedule Advantages ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],BATCH PROCESSING Economies of Scale foe Each Individual Piece of Equipment MIXED-MODEL PROCESSING Leveling Customer Demand to a Predictable Sequence KEY FEATURE Large Batches of Product before Changeover MIXED-MODEL PROCESSING Elimination of Set-up Time for Changeover ,[object Object],[object Object],[object Object]

Principle 5 … Build a Culture of Stopping to Fix Problems, to Get Quality Right the First Time (Jidoka) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 6 … Standardized Tasks are the Foundation for Continuous Improvement and Employee Empowerment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 6 … Standardized Tasks are the Foundation for Continuous Improvement and Employee Empowerment 5. Coercive vs. Enabling Design of systems and Standards: Coercive Systems and Procedures Enabling Systems and Procedures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],6. Coercive vs. Enabling Bureaucracies: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],SOCIAL STRUCTURE TECHNICAL STRUCTURE Low Bureaucracy High Bureaucracy Coercive Enabling

Principle 7 … Use Visual Control So No Problems are Hidden ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 8 … Use Only Reliable, Thoroughly Tested Technology that Serves Your People and Processes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 9 … Grow leaders who Thoroughly Understand the Work, Live the Philosophy, and Teach it to Others ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],PEOPLE Long-Term Asset  Learned Skills Machinery Depreciates  Loses Value People Appreciate  Continue to Grow ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 9 … Grow leaders who Thoroughly Understand the Work, Live the Philosophy, and Teach it to Others ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Center 1 Center 2 Center 3 Power train Engineering Division Program Planning Division Cost Management Division Body Engineering Division Chassis Engineering Division Vehicle Evaluation and Engineering Division Component and System Development Center Head Chief Engineer Functional General Manager TOYOTA’S PRODUCT DEVELOPMENT MATRIX ORGANIZATION

Principle 9 … Grow leaders who Thoroughly Understand the Work, Live the Philosophy, and Teach it to Others ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Group Facilitator “ You are Empowered” Bureaucratic Manager “ Follow the Rules” Builder of Learning Organizations “ Here is Our Purpose and Direction, I will Guide and Coach” Task Master “ Here is what to do and how – Do It!” TOYOTA LEADERS Top-Down (Directives) Bottom-up (Development) General Management Expertise In-Depth Understanding Of Work

Principle 10 … Develop Exceptional People and Teams who Follow Your Company’s Philosophy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 10 … Develop Exceptional People and Teams who Follow Your Company’s Philosophy 5. The TOYOTA ORGANIZATION (Assembly Operation), Roles and Responsibilities: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],TEAM MEMBER (Associate) TEAM LEADER (Associate Leader/Line keeper) GROUP LEADER (Supervisor) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Team Size Team Member 5 ~ 8 Team Leader 3 ~ 4 Group Leader 5 ~ 8 Assistant Manager 4 - 10 Manager PTMSB Working Group Associate Associate Leader/ Line Keeper Supervisor Executive Head Of Department

Principle 11 … Respect Your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 11 … Respect Your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Learning Enterprise Enabling System Clear Expectations Stable, Reliable Processes Fair & Honorable Business Relations Progressing Need of Satisfaction Regressing Need of Satisfaction Next Level Of Improvement Stability SUPPLY CHAIN NEED OF HIERARCHY

Principle 12 … Go and See for Yourself to Thoroughly Understand the Situation (Genchi Genbutsu) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Genchi Genbutsu

Principle 12 … Go and See for Yourself to Thoroughly Understand the Situation (Genchi Genbutsu) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 13 … Make Decisions Slowly by Consensus, Thoroughly Considering All Options; Implement Rapidly ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 13 … Make Decisions Slowly by Consensus, Thoroughly Considering All Options; Implement Rapidly 4. Alternative Toyota Decision Making Methods: 5. Communicate visually on one piece of paper to arrive at decisions. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Decide & Announce Seek Individual Input, then Decide and Announce Seek Group Input, then Decide and Announce Group Consensus, Management Approval Group Consensus, With Full Authority Preferred Fallback Fallback Time Level of Involvement ,[object Object],[object Object],[object Object],2. PROPOSAL 3. ANALYSIS 4. PLAN 5. IMPLEMENTATION 6. CONTROLS 7. TIMELINE Grasp The Situation TITLE Background (Existing Value, Expectation, Policy, Goal or Plan) Current Situation (Analysis of Need and Contributing Conditions) Recommendations (cost/Benefits) Implementation (Details of the Plan) Follow-up (Expected Results – When, How they will be checked) PLAN-DO-CHECK-ACT in the proposal process PLAN DO CHECK & ACT

Principle 14 … Become A Learning Organization through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Principle 14 … Become A Learning Organization through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen) “ Practical Problem Solving” in Seven Steps Direct Cause Cause Cause Cause Cause ,[object Object],[object Object],2. Clarify the Problem The “Real” Problem 3. Locate Area/Point of Cause POC Grasp the Situation Cause Investigation Why? Why? Why? Why? Why? Basic Cause and Effect Investigation 4. Five (5) Why? Investigation Of Root Cause Root Cause 5. Countermeasure 6. Evaluate 7. Standardize

Principle 14 … Become A Learning Organization through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Target for Organization Time Quality Cost Innovation EXECUTIVE STAFF High Level Plan Improvement? Who? Method? Target? Time? MANAGER/SUPERVISOR Plan - Do Work plan by item Action Measurement Countermeasure WORK TEAM Check Improvement? Method? Result? C/Measure? Target & Time? ALL 3 LEVELS POLICY DEPLOYMENT PROCESS (HOSHIN KANRI)

The Toyota Way

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The Toyota Way