2. About the AuthorJEFFREY K. LIKER, Ph. D Professor of Industrial and Operations Engineering at the University of Michigan. Co-owner of lean consulting firm Optiprise, Inc. His Shingo-Prize winning work has appeared in The Harvard Business Review, Sloan Management Review & other leading publications.
3. DAVID P. MEIER President of Lean Associates, IncLean Associates, Inc It is a consulting company dedicated to supporting other organisations in their efforts to learn from the Toyota Way. Group leader for Toyota Motor Manufacturing for ten years
4. ACKNOWLEDGEMENTSNote from JEFF LIKER•When David and I completedThe Toyota Way Fieldbook, I thought wehad completed the series of books•But David believed that there were lot to say about the4Ps•We have a contract for four more books 1.Toyota Talent 2.Toyota Culture 3.Toyota Process 4.Problem Solving•I have been continuing my Toyota studies,visitingoperations in Japan,Europe, Indonesia, and the U.S.
5. •Miyadera Kazuhiko,executivevice president starting up a Toyota Researchand development center for Europe spenthours describing how he had developed his owndeep engineering talent and was trying toaccelarate the process inEurope.•Ed Mantey,vice president of the Toyota Technical Center in Ann Arbor,Michigan,explained the philosophy of training engineersand relationship to maintaining theKnow-how database.
6. Note from David Meirer•I owe thanks to Toyota for providing me theopportunity to learn their methods and to developskills as a teacher.•In 1987 I had the privilege of working with ISAOKATO•Mr.Kato has been teaching job instruction to Toyotaleaders for over three decades and has beenpersonally responsible for the development ofthousands of Toyota employees.
7. FOREWARD•Using Toyota as a model ,the arc of the book follows a straightforward approach that any company might want to consider with an eye towardintegrating employees into the business of high quality,leanmanufacturing.•Toyota’s commitment to associate education anddevelopment has led to the establishment of formal centers oflearning at The University of Toyota in California The Global Production Support Center in Kentucky The Toyota Institute in Japan The Toyota Academy in U.K
8. PREFACE•Toyota’s phenomenal success is a business story known to the world.•Information on Toyota’s production system has been widely available for 30 years.•No other company has been able to complete Toyota’s results.•It is the knowledge and capability of people that distinguishes any companyfrom another.•Individuals work to develop highly dependable suppliers,they collaboratewith machinery suppliers to develop equipment that fits the specific needs oftheir production system .•People merely want to copy the outward appearance of what Toyota is doing but not its culture and infrastructure.•The Toyota Production System:Beyond Large Scale Production,TaiichiOhno,the father of the TPS through out the book describes his own personalawareness and devotion to the success of the process even though he doubtedhis own ability to implement it.
9. PART ONE *Getting The Organization Ready To Develop Exceptional PeopleGive Me Six Hours To Chop Down A Tree And I Will Spend The First Four Hours SharpeningThe Axe. Abraham Lincoln
10. CHAPTER ONEWhat Can We Learn From ToyotaAbout Developing Talent ?
11. The Philosophy Of Training AndDevelopment Within ToyotaWe do not just build cars; we build people.Developing EXCEPTIONAL people is Toyota’s number one priority.
12. Essence Of Toyota’s Success90% or more of what we consider talent in the life ofcompany employees is actually learned througheffort and repeated practice.What Toyota has been able to do is gather competent &Trainable people from around the world and,withConsiderable time &effort ,develop high levels ofTalent within the masses
13. Philosophy of developingpeople. Principle 1 Base management decisions on a long-term philosophy, even at the expense of short- term financial goals. Principle 6 Standardized process are the foundation for continuous improvement. Principle 9 Grow leaders who thoroughly understand the work & who live the philosophy & teach it to others.
14. Principle 10: Develop Exceptional people and teams who follow your company’s philosophy. Principle 11: Respect your suppliers by challenging them and helping them improve. Principle 14: Become a learning organisation through relentless reflection and continuous improvement.
15. The Unfortunate Reality People are our most valuable resource
16. The Cycle of Struggle AndFirefighting.IneffectivetrainingVariable and ineffective resultsFirefightingNo time for training
17. Breaking the cycle of defeat tocreate a cycle of success.“You make time for the things you want to do in life”.3 factors to be targeted to break the cycle. Defining Critical Knowledge Transferring Critical Knowledge Follow-up
18. If people are the answer, selectingquality people must be the key. Strong concentrated effort to develop the Japanese workforce. Toyota does pay good wages, but not the highest in the industry. It took over one of the worst performing plans in the GM & turned it into a successful one. It hired people from lowest-performing states and produced incredible results. Toyota mainly located in rural areas. It is interested in hiring people with a strong work ethic (farmers).
19. Develop People To EnsureProsperity. only people are able to think, to solve problem, and to improve. People are the key to expanding and strengthening the company
20. CHAPTER TWOToyota Works Hard To Develop Exceptional People.
21. People Development IsCritical To Toyota Toyota works hard to develop exceptional people. People development is critical to Toyota. Ohno needed people with thinking capability. He needed capable masses The development of capable masses requires a clear plan, time and patience. The people whom Toyota selects must have the capacity and the desire to LEARN Toyota employees also bring to bear issues What allows it to be successful is the efforts and interest in drawing out the best of the employees abilities.
22. •People with general problem solving capability andthose willing to work in ateam are selected.•The objectives is to provide benefits to the employeewhich in turn also returns benefits to the company.•Toyota creates situations n which there is equalbalance between reward and punishment.•On reward side Toyota Motor Manufacturingkentucky has an annual award ceremony for allemployees who achieved perfect attendance in theprevious year.•On the Punishment side repeated unexcusedabsences are one of the easiest ways to lose a job.
23. The Toyota ProductionDemands High Capability•First,it has stretched the “just in time” philosophy beyond the assembly line by connecting all the process.•Second,Toyota has built into the tasks qualitychecks and cross-training that require more than minimum levelsof competence.•Every person must be trained at a high level to work precisely.•The system demands high capability and provides a cycle of continuous improvement. Sustaining & continuously improves Creates a demanding system Requires high capability Develops highly talented people
24. Standardizing Training To MeetGlobal Needs Toyota makes exceptional efforts to train and develop people for success It is increasing its emphasis on training by opening three regional training centers called GLOBAL PRODUCTION CENTERS in Thailand,England and Kentucky. There is a formal certification process to become a trainer that includes being certified in the individual tasks taught to students.
25. Toyota’s Human System Model Human System is the development of people including the ability to attract capable people, engage them, and enroll them as full-fledged members of the Toyota culture. The initial intent is to attract potential employees, select the most appropriate, and orient them to the Toyota Way. Next step is to familiarize to provide them with job roles and provide them with on-the-job development training and coaching. TPS identifies problems. Human system solves it
26. Fundamentals of Training Are Applicable ToDeveloping Employee Talent Toyota employees are expected to participate in additional activities such as improving communication skills,leadership abilities,planning,developing new methods or procedures,designing new products or correcting problems in work area. One problem is that most people tend to look at any situation and first consider the unique or creative aspects rather than the common and teachable aspects.
27. Teaching Fundamental Skills In AStandardized Way At Toyota GPC to address the challenging task of developing generic training for Toyota worldwide. Generic level to teach the basics Specifics to be taught on the job When all of the job tasks were analyzed by Toyota, eight fundamental skills were identified.
28. The Skills are:1.Tightening bolts or nuts on in-line surfaces.2.Tightening bolts or nuts on any six angledsurfaces.3.Tightening self-tapping screws.4.Coupling connectors.5.Inserting hole plugs.6.Mistake-proofing.7.Tightening mating fasteners.8.Memorizing manifest.•Each task there is a computer.•Video manual provides descriptions, keypoints and illustrates the right and the wrongways to the students.•Fundamental principle of the job instructionmethod-to break the job elements into smallportions.•Learn it easily.
29. Pay Now or Pay Later After learning the fundamental skills,the trainer can focus on the details of the specific job. The associate will learn the job more effectively.
30. Can You Achieve Results SimilarTo Those of Toyota? Toyota selects capable people with a good work ethic that seem moldable into the Toyota way of doing things. Training and development is considered as the life blood of the company. Challenge is to maintain high levels of development as Toyota expands and globalizes. Can other companies do this? You too can do it if your company is truly dedicated to excellence.