The Toyota Way philosophy centers around 4Ps - Philosophy, Process, People and Problem Solving. The philosophy sees the company as adding value to customers, society and employees. The right process of continuous improvement will produce the right results. People and partners are developed by challenging them to grow. Problem solving drives organizational learning. The 14 principles include having a long-term philosophy, stopping problems, respecting partners, consensus decision making, and becoming a learning organization.

1. Toyota Way
Philosophy

2. Toyota: learning Organization
It’s about tacit knowledge, Not explicit procedural
knowledge
Go find a sensei to learn from and enjoy the journey!

3. The 4P model

4. 1-Philosophy
Toyota’s leaders see the company as a vehicle for adding value to
customers, society, the community, and its associates.

5. 2-Process
• Toyota leaders have learned through mentorship and experience that
when they follow the right process, they get the right results

6. 3-People and partners
• Add value to your organization by challenging your people and
partners to grow. The Toyota Production System (TPS) was at one
time called the “respect for humanity” system.
• Thinking, learning, growing, and being challenged are not always fun.

7. 4-Problem Solving
• Continuously solve root problems to drive organizational learning.
• when someone in Toyota learns an important lesson, they are
expected to share it with others facing similar problems so the
company can learn.

8. The 14 Principles of 4P
model

9. 1-Philosophy as the foundation
1. Base your management decisions on a long-term philosophy, even
at the expense of short-term financial goals.
• It’s Bigger than making money.
• Goal of generating value for the customer, society and economy.

10. 2-The Right Process Will Produce the
Right Results
2. Create a continuous process flow to bring problems to the surface.
• Flow: means cutting back to zero the amount of time that any work project is
sitting idle, waiting for someone to work on it.
• The reason to create flow is not just to have material or information moving
fast. It is to link processes and people together so that problems surface right
away.
• Flow is a key to a true continuous improvement process and to developing
people.

11. 2-The Right Process Will Produce the
Right Results
3. Use “pull” systems to avoid overproduction.
• stocking inventory based on forecasted or even promised demand almost
always leads to chaos, firefighting, and running out of the very products the
customer wants.
• Stock relatively small amounts of each product and restock the supermarket
shelf frequently, based on what the customer actually takes away.

12. 2-The Right Process Will Produce the
Right Results
4. Level out the workload
• Heijunka: stability in the workload (work like the tortoise, not the hare)

13. 2-The Right Process Will Produce the
Right Results
• 5. Build a culture of stopping to fix problems, to get quality right the
first time.
• Jidoka main pillar (machines with human intelligence)
• Andon System
• When there is a problem, do not just keep going with the intention of fixing it
later. Stop and fix the problem now.

14. 2-The Right Process Will Produce the
Right Results
• 6. Standardized tasks and processes are the foundation for
continuous improvement and employee empowerment.
• The task of continuous improvement is then to improve upon this standard,
and the improvements are then incorporated into the new standard.
• Without standardizing when an individual moves on from that job, all of the
learning is lost.

15. 2-The Right Process Will Produce the
Right Results
7. Use visual control so no problems are hidden.
• Computerization and Paper in Toyota
• People looking at well-designed charts on a wall can have very effective
discussions. Going to a computer screen moves the workers’ focus from the
workplace to the computer screen.
• Robots do not care if the factory is visual, but people do, and Toyota will
always design systems to support people.

16. 2-The Right Process Will Produce the
Right Results
8. Use only reliable, thoroughly tested technology that serves your
people and process.
• Technologies that conflict with Toyota’s philosophies and operating principles
will be rejected.
• On the other hand, Toyota is always interested in being current in their
technology and encourages their people to “think outside the box” when
considering new approaches to work.

17. 3-Add Value to the Organization by
Developing Your People and Partners
9. Grow leaders who thoroughly understand the work, live the
philosophy, and teach it to others.
• Leaders at Toyota are grown; they are not bought.
• they must exemplify the philosophy in everything they do: the
decisions they make and how they go about making the decisions.
• They must be teachers of the Philosophy.

18. 3-Add Value to the Organization by
Developing Your People and Partners
10. Develop exceptional people and teams who follow your
company’s philosophy.
• Strong culture is one in which values and beliefs are well-aligned among
members.
• Toyota has a strong internal culture that they often refer to as their DNA.
• The people using the tools, and how they use them, are what bring the Toyota
Production System to life.

19. 3-Add Value to the Organization by
Developing Your People and Partners
11. Respect your extended network of partners and suppliers by
challenging them and helping them improve.
• “Respect for Humanity”
• Challenge is a core value within the Toyota Way and central to the way people
and business partners are developed.

20. 4- Continuously Solving Root
Problems Drives Organizational
Learning
12- Go and see for yourself to thoroughly understand the situation.
• Genchi Genbutsu: going to the source, observing, and deeply analyzing what
is going on.

21. 4- Continuously Solving Root
Problems Drives Organizational
Learning
• 13. Make decisions slowly by consensus, thoroughly considering all
options; implement decisions rapidly.
• the real key is not consensus but exploring potential problems and solutions
to get to the best possible answer.
• “Five-Why Analysis”

22. 4- Continuously Solving Root
Problems Drives Organizational
Learning
14. Become a learning organization through relentless reflection and
continuous improvement.
• “Five-Why Analysis”
• “Plan, Do ,Check, Act”
• Hansei is a broader concept in Japan : Its means to acknowledge your own
mistake and to pledge improvement OR "Self-awareness is the first step to
improvement"

23. What is your Company’s
Philosophy?

24. Why do we exist as a
company?
It need not be an abstract, unanswerable, philosophical debate

25. A Sense of Purpose Inside and Out
• your mission should have two parts
1. People
2. Business.

27. Lean Systems
lean systems are not just about tools and techniques,
but about Philosophy

28. Learning Community
• The real power of lean systems, Ohno found, is that they bring
problems to the surface and force people to think.
• Building a learning community means having individuals with the
capacity to learn.

29. Lean Enterprise
• Outside Suppliers are our responsibility too.
• Ensure that suppliers have the same level of commitment to lean
systems, a learning community, and the lean enterprise

30. Value-Adding Contributor
• “I get paid well. I am having a ball. I am so fortunate that I am able to
do this. The purpose [of the money] is so we can reinvest in the
future, so we can continue to do this . . . and to help society and to
help the community.”
• Jim Press, executive vice president.

31. Creating Your Philosophy !
But just as watching a great tennis player does not
make you a great tennis player, what counts is what you
do and the skills you develop. It is about how you
behave every day . . . and what you learn.

32. Creating Your Philosophy
Strategy :
• You cannot be a profitable, financially healthy business without a well-
developed strategy.
• You do not really have a strategy unless the strategy states what you will not
do.
• If you have a great strategy that defines how you will be a unique value
adding contributor, you need to fill in the other three boxes.

33. Living Your Philosophy
All executives, managers, directors, supervisors, group leaders,
or whatever else you call them have to live the philosophy
“every day in a very consistent manner.” Leaders have to lead
by example . . . consistently.

34. Making a Social Pact with Employees
and Partners
• Toyoda Resigned and 1600 workers.

35. Maintaining Continuity of Purpose
• Success motivates
• Teach more employees the lean tools, and find more projects.
• It is a way of thinking about the very process of management.

36. Maintaining Continuity of Purpose
What do we mean by culture?
It is a shared set of values, beliefs, and assumptions
Strong cultures last beyond particular leaders.
Constancy of purpose comes from having a strong company
culture starting at the top leadership level, and sticking with it
across generations of leaders.

37. Thank You