The Toyota Way 14 Management Principles Khushbu Desai (07030244003) Aditi Chaplot (07030244001) Pooja Mantri (07030244010) Sushant Kumar (07030244024) Shailesh Borah (07030244022)

The Toyota Way

14 Management Principles

Khushbu Desai (07030244003)

Aditi Chaplot (07030244001)

Pooja Mantri (07030244010)

Sushant Kumar (07030244024)

Shailesh Borah (07030244022)

Since Toyota’s founding we have adhered to the core principle of contributing to society through the practice of manufacturing high-quality products and services. Our business practices and activities based on this core principle created values, beliefs and business methods that over the years have become a source of competitive advantage. These are the managerial values and business methods that are known collectively as the Toyota Way. — Fujio Cho, President Toyota

Since Toyota’s founding we have adhered to the core principle of contributing

to society through the practice of manufacturing high-quality

products and services. Our business practices and activities based on this

core principle created values, beliefs and business methods that over the

years have become a source of competitive advantage. These are the

managerial values and business methods that are known collectively as

the Toyota Way.

— Fujio Cho, President Toyota

Principle 1 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals. 1. Align the organization toward a purpose greater than “ making money .” 2. Generate value for the customer, society and the economy. 3. Be responsible . Accept responsibility for your conduct and maintain and improve the skills that enable you to produce added value.

Principle 1

Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.

Principle 2 Create a continuous process flow to bring problems to the surface. 14 13 12 11 10 9 8 7 6 5 4 3 2 1 1.Redesign processes to achieve continuous flow . 2.Create flow to move material and information fast. 3.Link processes and people so that problems surface right away. 4.Make flow obvious throughout your organizational culture.

Principle 2

Create a continuous process flow to bring problems to the surface.

Principle 3 Use “pull” systems to avoid overproduction. 14 13 12 11 10 9 8 7 6 5 4 3 2 1 1.Provide downstream customers in the process with what they want, when they want it, and in the amount that they want. 2. Pull vs Push Material replenishment initiated by consumption is the basis for just-in-time. Just-in Time - an organized system of inventory buffers.

Principle 3

Use “pull” systems to avoid overproduction.

1.Provide downstream customers

in the process with what they want,

when they want it, and in the

amount that they want.

2. Pull vs Push

Material replenishment initiated by

consumption is the basis for

just-in-time.

Just-in Time - an organized

system of inventory buffers.

Principle 4 Level out the workload (heijunka). (Work like the tortoise, not the hare.) 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Principle 4

Level out the workload (heijunka). (Work like the tortoise, not the hare.)

Principle 5 Build a culture of stopping to fix problems, to get quality right the first time. 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Principle 5

Build a culture of stopping to fix problems, to get quality right the first time.

Principle 6 Standardized tasks and processes are the foundation for continuous improvement and employee empowerment. 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Principle 6

Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.

Principle 7 Use visual control so no problems are hidden. Simple visuals to support work flow Determine deviation from standard Reduce report size 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Eliminate Waste

Principle 7

Use visual control so no problems are hidden.

Simple visuals to support

work flow

Determine deviation

from standard

Reduce report size

Principle 8 Use only reliable, thoroughly tested technology that serves your people and processes. Support people not replace them Analyze impact of new technologies on existing processes Conflict company philosophy or principle? Involve stake holders Encourage to consider new technologies while seeking for new approach 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Principle 8

Use only reliable, thoroughly tested technology that serves your people and processes.

Support people not replace them

Analyze impact of new technologies on existing processes

Conflict company philosophy or principle?

Involve stake holders

Encourage to consider new technologies while seeking for new approach

Principle 9 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Principle 9

Principle 10 Develop exceptional people and teams who follow your company’s philosophy. 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Create Strong stable culture. Train Exceptional Individual & Teams to work with corporate philosophy. Use Cross Functional Team Make a Continuous effort towards Teamwork. Understand & Use Motivation theory. Maslow’s Need Hierarchy theory. Herzberg’s Job Enrichment theory . Taylor’s Scientific Management theory. Behavior Modification theory. Goal Setting theory

Principle 10

Develop exceptional people and teams who follow your company’s philosophy.

Create Strong stable culture.

Train Exceptional Individual & Teams to work with corporate philosophy.

Use Cross Functional Team

Make a Continuous effort towards Teamwork.

Understand & Use Motivation theory.

Maslow’s Need Hierarchy theory.

Herzberg’s Job Enrichment theory .

Taylor’s Scientific Management theory.

Behavior Modification theory.

Goal Setting theory

Principle 11 Respect your extended network of partners and suppliers by challenging them and helping them improve. Maintain Principle of partnership Acquire new suppliers. Enhance relations with existing suppliers. Teach “ The Toyota Way ”. 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Principle 11

Respect your extended network of partners and suppliers by challenging them and helping them improve.

Maintain Principle of partnership

Acquire new suppliers.

Enhance relations with existing suppliers.

Teach “ The Toyota Way ”.

Principle 12 Go and see for yourself to thoroughly understand the situation (genchi genbutsu). Genchi (actual location) genbutsu (actual material or product)…also known as going to the gemba. Confirm the fact yourself. Solve problem by going to root causes. The Geography of thought. Think & speak based on personally verified data. “ Common sense will tell you the answer, but collecting data and then understanding the facts will tell you whether your common sense was correct.” 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Principle 12

Go and see for yourself to thoroughly understand the situation (genchi genbutsu).

Genchi (actual location) genbutsu (actual material or product)…also known as going to the gemba.

Confirm the fact yourself.

Solve problem by going to root causes.

The Geography of thought.

Think & speak based on personally verified data.

“ Common sense will tell you the answer, but collecting data and then understanding the facts will tell you whether your common sense was correct.”

Principle 13 Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi). 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Decision Making is Highly Situational Philosophy is to seek Maximum Involvement for Each Situation Decide and Announce Seek Individual Input, then Decide and Announce Seek Group Input, then Decide and Announce Group Consensus, Management Approval Group Consensus, With Full Authority Level of Involvement Time

Principle 13

Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi).

Decision Making is Highly Situational

Philosophy is to seek Maximum Involvement for Each Situation

Principle 14 Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen). 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Principle 14

Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).

Leveled Production (Heijunka) Stable and Standardized Processes Visual Management Toyota Way Philosophy Just-in-Time Right Part, Right Amount, Right Time Take Time Planning Continuous Flow Pull System Quick Changeover Integrated Logistics 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) Best Quality – Lowest Cost – Shortest Lead Time – Best Safety – High Morale Through shortening the production flow by eliminating waste People & Teamwork Selection Common Goals Ringi Decision Making Cross – Trained Waste Reduction Genchi Genbutsu 5 Why’s Eyes for Waste Problem Solving Continuous Improvement (kaizen) Toyota Production System House

Just-in-Time

Right Part, Right

Amount, Right Time

Take Time Planning

Continuous Flow

Pull System

Quick Changeover

Integrated Logistics

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)

People & Teamwork

Selection

Common Goals

Ringi Decision Making

Cross – Trained

Waste Reduction

Genchi Genbutsu

5 Why’s

Eyes for Waste

Problem Solving

Toyota Production System House

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