The Toyota Way - 14 Management Principles The Toyota Way 14 Management Principles Presented By :- Subhajit Karmakar
The Toyota Way - 14 Management Principles “Continuous improvement” and “Respect for people” are the two pillar of Toyota The five practices are:- • Challenge: To build a long-term vision and meet challenges with courage and creativity. • Kaizen: To continuously improve our business operations, always striving for innovation and evolution. • Genchi Genbutsu: To always go to the source to find the facts and make correct decisions; to build consensus and expeditiously achieve our goals. • Respect: To respect others and the environment, to build trust, and to take responsibility. • Teamwork: To stimulate personal and professional growth, maximize individual and team performance.
The Toyota Way - 14 Management Principles Principle 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.
The Toyota Way - 14 Management Principles Principle 2 • Create a continuous process flow to bring problems to the surface. 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.
The Toyota Way - 14 Management Principles 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.
The Toyota Way - 14 Management Principles Principle 4 • Level out the workload (heijunka). (Work like the tortoise, not the hare.) (Heijunka is principle of measured production rate)
The Toyota Way - 14 Management Principles Principle 5 • Build a culture of stopping to fix problems, to get quality right the first time.
The Toyota Way - 14 Management Principles Principle 6 • Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.
The Toyota Way - 14 Management Principles Principle 7 • Use visual control so no problems are hidden. Simple visuals to support work flow Determine deviation Eliminate from standard Waste Reduce report size
The Toyota Way - 14 Management Principles 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
The Toyota Way - 14 Management Principles Principle 9
The Toyota Way - 14 Management Principles 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
The Toyota Way - 14 Management Principles 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 ”.
The Toyota Way - 14 Management Principles 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(real place). • 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.”
The Toyota Way - 14 Management Principles Principle 13 • Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi). Group Consensus, With Full Group Authority Consensus, Seek Group Management Input, then Approval Decide and Level of Involvement Seek Individual Announce Input, then Decide and Announce Decide and • Decision Making is Highly Situational Announce • Philosophy is to seek Maximum Involvement for Each Situation Time
The Toyota Way - 14 Management Principles Principle 14 • Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).
The Toyota Way - 14 Management Principles Toyota Production System House Best Quality – Lowest Cost – Shortest Lead Time – Best Safety – High Morale Through shortening the production flow by eliminating waste Jidoka Just-in-Time People & Teamwork (Automation with Right Part, Right Amount, Right Time • Selection Human touch) • Common Goals (In-station Quality) • Ringi Decision Making Make Problems • Take Time Planning • Cross – Trained Visible • Continuous Flow • Pull System • Quick Changeover Continuous Improvement (kaizen) • Automatic Stops • Integrated Logistics • Person – Machine Waste Reduction Separation • Genchi Genbutsu(go & see) • Error Proofing • 5 Why’s • In-station Quality Control • Eyes for Waste • Problem Solving • Solve Root Cause of Problems Leveled Production (Heijunka) Stable and Standardized Processes Visual Management Toyota Way Philosophy