Friends, I would recomend you to first refer the bibliography slide at the end of it. Read the book. deshiva at gmail dot com

1. THE TOYOTA WAY 14 MANAGEMENT PRINCIPLES FROM THE WORLD’S GREATEST MANUFACTURER By Wg Cdr DK Sharma

2. THE TOYOTA WAY 02/49 Toyota Production System (TPS) Also called The Toyota Way

4. Process (07 principles)

5. People / Partners (03 principles)

7. Defining the Value Stream (Process)

8. Making it Flow (Process)

9. “Pulling” from the Customer back (Inventory)

11. Building quality into workplace systems

12. Finding low cost but reliable alternatives to expensive new technology

13. Perfecting business processes

18. Flow means when a customer places an order, this triggers the process of obtaining raw material from suppliers, flow to production plant, assemble the order, transport to dealer and deliver to customer

20. THE TOYOTA WAY 12/49 Principle 2. Create Continuous Process Flow to Bring Problems to the Surface 4. Over / incorrect processing - Inefficient process due to poor tooling or production design 5. Excess / unavailable Inventory– Extra inventory hides problems such as production imbalances, late deliveries, defects, downtime and long set up time 6. Unnecessary Movement – Wasted motion like looking for, reaching for, stacking part, tools etc, even walking is a waste during production 7. Defects – Production of defective parts and its correction, Repair or rework, replacement production and inspection

22. Transportation from Base to Monitor Dept is in batch of 10

23. First good computer ready in 21 minutes

24. There are at least 21 sub-assemblies in process at a timeBatch Processing Example

26. 10 complete assembly ready in 12 minutes

27. Only two sub-assembly in process at a timeContinuous Flow Example

32. Analyze the situation

33. Use one piece flow and andon (cord to stop production) to surface problems

34. Ask “Why?” Five times to get to the root of problemQuality for customer drives your value proposition, because adding value to customer is what keeps you in business and allow you to make money.

36. Standardization, stabilize the process before continuous improvements can be made.

37. Until you have the fundamental skill needed to swing the club consistently, there is no hope of improving your golf game.

40. The visual aspect means being able to look at the process, a piece of equipment, inventory, or information or at worker performing a job and immediately see the standards being used to perform the task and if there is a deviation from standards

42. Process – Eliminate Waste 25/49 Principle 8 Use Only Reliable, Thoroughly Tested Technology That Serves Your People, Processes and Values “Society has reached the point where one can push a button and be immediately deluged with technical and managerial information. This is all very convenient, of course, but if one is not careful there is a danger of losing the ability to think. We must remember that in the end it is the individual human being who must solve the problems” Eiji Toyoda Any information technology must meet the acid test of supporting people and processes and prove it adds value before it is implemented broadly. First work out the manual system and then automate it

43. THE TOYOTA WAY 26/49 +Continual org learning. +Go & see yourself. +Decision slowly by consensus and implement rapidly. +Grow leaders who live the philosophy. +Respect, develop and challenge people, teams and suppliers. +Create process flow to surface problems +Use pull system to avoid over production +Stop when there is a quality problem. (Jidoka) + Level out the workload. (heijunka) +Standardize tasks for continuous improvement. +Use visual control so no problems are hidden. +Use only reliable technology. +Base management decisions on a long term philosophy, even at the expense of short term financial gains. “4 P” MODEL OF THE TOYOTA WAY

44. PEOPLE & PARTNERS 27/49 Principle 9 Grow Leaders Who Thoroughly Understand the Work, Live the Philosophy, and Teach It to Others The Automotive News recognized newsmakers in the auto industry. Direct quotes from the issue about these newsmakers: - Bill Ford (Ford): Talks up revitalization, brings backs old guys, stars in TV commercial. Ford stock remains mired in the $10 range Robert Lutz (GM):Former Marine pilot inspires GM’s troops and simplifies product development, giving designers a bigger voice Dieter Zetzsche (Chrysler): Turns the company around a year early with 3 Qtrs in the black

45. PEOPLE & PARTNERS 28/49 Principle 9 Grow Leaders Who Thoroughly Understand the Work, Live the Philosophy, and Teach It to Others Fujio Cho (Toyota):Toyota President presides over rise in operating profit to industry record. Take lead on hybrids. Grabs 10 point of US market. Joins with Peugeot for plants in Eastern Europe. Changing the culture each time a new leader comes into office necessarily means jerking the company about superficially, without developing any real depth or loyalty from the employees. The problem with the radical shifts in the culture is that organization will never learn – it loses its ability to build on achievements, mistakes, or enduring principles. Deming, the Quality Guru terms it “Constancy of Purpose”.

46. PEOPLE & PARTNERS 29/49 Principle 9 Grow Leaders Who Thoroughly Understand the Work, Live the Philosophy, and Teach It to Others +Growth +Attention +Go & See +Problem solving +Presentation skills +Project Mgt +Supportive culture +Stability +JIT +Jidoka +Kaizan +Heijunka Long term assets Learned skills Machinery depreciatesLoses value People appreciates continue to grow PHILOSOPHY Customer First People are most important asset Kaizan – continuous improvement Go and See – Give feedback Efficiency thinking True (vs. Apparent) condition Total (vs. Individual) team involvement PEOPLE MANAGEMENT TECHN I CAL Toyota Leader’s view of the TPS

47. PEOPLE & PARTNERS 30/49 Principle 9 TOYOTA LEADERSHIP MODEL Bottom-Up (Development) Top Down (Directional) General Management Expertise In-depth Understanding of Work

48. PEOPLE & PARTNERS 31/49 Principle 10 Develop Exceptional People and teams Who Follow Your Company’s Philosophy

49. PEOPLE & PARTNERS 32/49 Principle 10

50. PEOPLE & PARTNERS 33/49 Principle 11 Respect Your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve Auto industry suppliers consistently report that TOYOTA is their best customer ….and also their toughest. Have respect for your partners and suppliers and treat them as an extension of your business. Challenge your outside business partners to grow and develop. It shows that you value them. Set challenging targets and assist your partners in achieving them.

52. Even when Toyota chooses to outsource a key component, it does not want to lose internal capability

53. As a general rule, Toyota wants to have at least two suppliers for every component

55. THE TOYOTA WAY 36/49 +Continual org learning. +Go & see yourself. +Decision slowly by consensus and implement rapidly. +Grow leaders who live the philosophy. +Respect, develop and challenge people, teams and suppliers. +Create process flow to surface problems +Use pull system to avoid over production +Stop when there is a quality problem. (Jidoka) + Level out the workload. (heijunka) +Standardize tasks for continuous improvement. +Use visual control so no problems are hidden. +Use only reliable technology. +Base management decisions on a long term philosophy, even at the expense of short term financial gains. “4 P” MODEL OF THE TOYOTA WAY

56. PROBLEM SOLVING 37/49 Principle 12 GO and SEE to Thoroughly Understand the Situation (GenchiGenbutsu) “Observe the production floor without preconceptions and with a blank mind. Repeat “why” five times to every matter.” TaiichiOhno(as quoted in the Toyota Way document) It is more than going and seeing. “What happened? What did you see? What are the issues? What are the problems?” At the root of all of that, we try to make decisions based on factual information, not based on theory, statistics and number contribute to the facts, but it is more than that. Some time we get accused of spending too much time doing all the analysis. Some will say, “Common sense will tell you. I know what the problem is.” But collecting data and analysis will tell you if your common sense is right.

59. Think and speak based on personally verified data

60. See America, then design for America – to design Sienna minivan in 2004, the Chief Engineer of D&D drove extensively in US, Canada and Mexico to get a feel of what people wants in a minivan

63. Philosophy is to seek maximum involvement for each situation Group consensus, Management Approval Get all the parties on board, iron out all the resistance, generate consensus, then implementing Seek group input, then decide and announce Fallback If consensus not achieved Seek individual input, then Decide and Announce Fallback Decide and Announce Time

64. PROBLEM SOLVING 42/49 Principle 14 A Learning Org Through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen) We view errors as opportunities for learning. Rather than blaming individuals, the organisation takes corrective actions and distributes knowledge about each experience broadly. Learning is a continuous company-wide process as superiors motivates and train subordinates; as predecessors do the same for successors; and as a team subordinates at all levels share knowledge with one another. The Toyota Way Document 2001 Toyota has judiciously used stability and standardization to transfer individual and team innovations into organisational-wide learning. Standardisation punctured by innovation, gets translated into new standards (Kaizen) .

65. PROBLEM SOLVING 43/49 Principle 14 Relentless Reflection (Hansei) and Continuous Improvement (Kaizen) 5 Whys is a method to pursue the deeper, systematic causes of a problem to find correspondingly deeper countermeasures Why Why Why Why Why

66. 44/49 3. Locate Area / Point of Cause Grasp the Situation Basic Cause and Effect Investigation Direct Cause Why Why Cause Cause Investigation Why Cause 4. Five Whys? Investigation of Root Cause Why Cause Why Cause Root Cause 5. Countermeasure 6. Evaluate 7. Standardize Toyota’s Practical Problem Solving Process

67. PROBLEM SOLVING 45/49 Principle 14 Relentless Reflection (Hansei) and Continuous Improvement (Kaizen) Eliminate Waste Deming Circle of Quality (PDCA)

68. THE TOYOTA WAY 46/49 One man did his part, and the other his, and neither even had to check to make sure both parts were getting done. Like the dance of atoms Alvin had imagined in his mind. He never realized it before, but people could be like those atoms, too. Most of the time people were all disorganized nobody knowing who anybody else was, nobody holding still long enough to trust or be trusted, just like Alvin imagined atoms might have been before God taught them who they were and gave them work to do. It was a miracle seeing how smooth they knew each other’s next move before the move was even begun. Alvin almost laughed out loud in the joy of seeing such a thing. Knowing it was possible, dreaming of what it might mean – thousands of people knowing each other that well, moving to fit each other just right, working together. Who could stand in the way of such people? Orson Scott Card Prentice Alvin: The Tales of Alvin Maker

69. THE TOYOTA WAY 47/49 The Lessons and Secrets of Toyota way It creates bonds among individual and patterns such that they “move to fit together just right, working together” towards a common goal. Creating a WHOLE much greater and stronger than the SUM of the individuals

70. THE TOYOTA WAY 48/49 Bibliography & Recommended Readings The Toyota Way – Jeffery K. Liker The Machine that Changed the World – Womack, Jones & Ross Lean Thinking – Womack & Jones

71. THE TOYOTA WAY 49/49 Thank You