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

Continue …….
 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 for Continuous

Improvement and Employee Empowerment

 Use Visual Control so no Problems are Hidden

 Use Only Reliable, Thoroughly Tested Technology that Serves your

People and Processes
Continue …….
 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 …….
 14 Toyota Way Principles
• Continuously Solving Root Problems Drives
Organisational Learning

 Go and See for Yourself to thoroughly Understand the Situation

 Make Decisions Slowly by Consensus, thoroughly Considering all

Options, Implement Decisions Rapidly

 Become a Learning Organisation through Relentless Reflection

(Hansei) and Continuous Improvement (Kaizen)
“4 P” Model of The Toyota Way

•Continual organizational learning through Kaizen

•Go see for yourself to thoroughly understand the
Problem situation (Genchi Genbutsu)
Solving •Make decisions slowly by consensus, thoroughly
(Continuous considering all options; implement rapidly
Improvement
& Learning)

•Grow leaders who live the philosophy

•Respect, develop, and challenge your
People and people and teams
Partners •Respect, challenge, and help your suppliers
(Respect, Challenge
and Grow Them)

•Create process “flow” to surface problems

•Use pull systems to avoid overproduction
•Level out the workload (Heijunka)
Process •Stop when there is a quality problem (Jidoka)
(Eliminate Waste) •Standardize tasks for continuous improvement
•Use visual control so no problems are hidden
•Use only reliable, thoroughly tested technology

•Base management decisions on a

Philosophy long-term philosophy, even at the
(Long-term Thinking) expense of short-term financial goals
 “4 P” Model – Most Companies

•Continual organizational learning through Kaizen

•Go see for yourself to thoroughly understand the

u
i
Problem

Ge nch
uts
situation (Genchi Genbutsu)
Solving •Make decisions slowly by consensus, thoroughly

nb
Ge
(Continuous considering all options; implement rapidly
Improvement
& Learning)
n
ize

•Grow leaders who live the philosophy

Ka

Where Most
am t &

•Respect, develop, and challenge your

rk

“Lean” People and people and teams

Te spec
wo

Companies Partners
are •Respect, challenge, and help your suppliers
(Respect, Challenge
Re

and Grow Them)

•Create process “flow” to surface problems

•Use pull systems to avoid overproduction
•Level out the workload (Heijunka)
Process •Stop when there is a quality problem (Jidoka)
(Eliminate Waste) •Standardize tasks for continuous improvement
•Use visual control so no problems are hidden
•Use only reliable, thoroughly tested technology
ge

•Base management decisions on a

en

Philosophy long-term philosophy, even at the

all

(Long-term Thinking) expense of short-term financial goals

Ch
 “4 P” Model of The Toyota Way

•Continual organizational learning through Kaizen

Toyota’s •Go see for yourself to thoroughly understand the

u
i
Problem

Ge nch
uts
Terms situation (Genchi Genbutsu)
Solving •Make decisions slowly by consensus, thoroughly

nb
Ge
(Continuous considering all options; implement rapidly
Improvement
& Learning)

•Grow leaders who live the philosophy

am t &

•Respect, develop, and challenge your

rk

People and
n

people and teams

Te spec
wo
ize

Partners •Respect, challenge, and help your suppliers

Ka

(Respect, Challenge
Re

and Grow Them)

•Create process “flow” to surface problems

•Use pull systems to avoid overproduction
•Level out the workload (Heijunka)
Process •Stop when there is a quality problem (Jidoka)
(Eliminate Waste) •Standardize tasks for continuous improvement
•Use visual control so no problems are hidden
•Use only reliable, thoroughly tested technology
ge

•Base management decisions on a

en

Philosophy long-term philosophy, even at the

all

(Long-term Thinking) expense of short-term financial goals

Ch
 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 People & Teamwork Jidoka

Right Part, Right Selection (In-station Quality)

• • • •
Amount, Right Time Common Goals Make Problems
Ringi Decision Making Visible
Take Time Planning Cross – Trained
• • • • •

Continuous Flow Automatic Stops

• • •
Pull System Andon
Continuous Improvement
Quick Changeover Person – Machine
Integrated Logistics Separation
Waste Reduction Error Proofing

• •
Genchi Genbutsu In-station Quality
• • • •

5 Why’s Control
Eyes for Waste Solve Root Cause of

•
Problem Solving Problems (5 Why’s)

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 Eliminate Surface

Results Problems
Waste
(Check) (Plan)

Counter
Measures
(Do)
 Three M’s

Muda
Waste

Mura Muri
Unevenness Overburden
 Toyota Leader’s View

Management

M
AN
Technical

L
• True North

CA
• Tools to Focus
• Stability

AG
PEOPLE

NI
Management Attention
• JIT

EM
• Go and See

CH
• Jidoke
• Problem – Solving

EN
• Kaizen TE
• Presentation Skills
• Heijunka

T
• Project Management
Long – term Asset –> Learned Skills • Supportive Culture

Machinery Depreciates -> Loses Value

People Appreciates -> Continue to Grow

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. apparent) Condition
• Total (vs. Individual) Team Involvement
 Supply Chain Need Hierarchy

Learning
Enterprise

Re
Next Level of

gr
n
Improvement io

es
ct

si
ng
fa

Enabling Systems
tis

Ne
Sa

ed
ed

Sa
Ne

ti s
g

fa
in

Clear Expectations

c
ss

t io
re

n
Stability
og
Pr

Stable, Reliable Processes

Fair and Honorable Business Relations

 Alternative Toyota Decision Making Methods

Group
Consensus,
With Full
Group Authority
Consensus,
Management
Seek Group Approval
Input, then
Decide and
Level of Involvement

Seek Individual Announce

Input, then
Decide and
Announce
Decide and
Announce

Time

• Decision Making is Highly Situational

• Philosophy is to seek Maximum Involvement for Each Situation
 Myth Vs. Reality
Myth Reality
What TPS is Not What TPS Is
• A Tangible recipe for Success • A Consistent way of Thinking

• A Management Project or Program • A Total Management Philosophy

• A set of Tools for Implementation • Focus on Total Customer Satisfaction

• A system for Production Floor only • An Environment of Teamwork and

Improvement
• Implementable in a Short or
Mid-term Period • A Never-ending Search for a
Better Way

• Quality Built in Process

• Organised, Disciplined
Workplace

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

Goal Setting Set Specific, Measur- Sets Goals that meet these Criteria
able, Achieveable Through Hoshin Kanri (Policy
Challenging Goals and Deployment). Continuous
Measure Progress. Measurements relative to Targets.
 Coercive Vs. Enabling Bureaucracy
SOCIAL STRUCTURE

Coercive Bureaucracy Enabling Bureaucracy

Bureaucracy
TECHNICAL STRUCTURE

• Rigid Rule Enforcement • Empowered Employees

High

• Extensive Written Rules • Rules and Procedures as

and Procedures Enabling Tools
• Hierarchy Controls • Hierarchy Supports
Organisational Learning

Autocratic Organic
Bureaucracy

• Top Down Control • Empowered Employees

Low

• Minimum Written Rules • Minimum Rules and

and Procedures Procedures
• Hierarchy Controls • Little Hierarchy

Coercive Enabling
 5 S’s

Sort
Clear out rarely used
Items by Red Tagging

Straighten
Sustain Organise and Label a
Use Regular Management Place for Everything
Audits to Stay Disciplined Eliminate
Waste

Shine
Standardise Clean It
Create Rules to Sustain
the first 3 5’S
 Waste in a Value System

Casting Machining
Staging Assembly
Setup Inspection
Time Staging
Transportation

Raw Time Finished

Material Parts
• Value-added Time is only a Small Percentage
Value – Added Time of the Total Time
• Traditional Cost Savings focuses only on
Value-adding Items
Non-Value-Added • Lean Thinking Focuses on the Value Stream
Time (Waste) to Eliminate Non-Value-Adding Items
 Practical Problem-Solving Process
1. Initial Problem Perception
(Large, Vague, Complicated Problem)

2. Clarify the Problem

The “Real Problem

Grasp the
Situation 3. Locate Area /
Point of Cause

POC Basic Cause and Effect

Investigation
Why? Direct
Why? Cause
Cause
Why? Cause
Investigation 4. 5 – Why? Investigation
Why? Cause of Root Cause
Why? Cause
Cause
Root Cause

5. Countermeasure

6. Evaluate

7. Standardise
The Andon System
Waste in a Truck Chassis Assembly Line
TPS Flow Environment
Product Development Matrix
Team & Batch Production Vs. On-Piece Flow