The document summarizes the key principles of the Toyota Production System. It describes Toyota's philosophy of continuous improvement, respect for people, and eliminating waste. The core goals of Toyota's approach are achieving the highest quality at the lowest cost and shortest lead times. Toyota relies on principles like just-in-time production, respect for people, challenging assumptions, and solving problems at their root cause. Overall, the document outlines Toyota's management methods that prioritize operational excellence, continuous learning, and developing a culture of improvement.

1. THE TOYOTA WAY
14 MANAGEMENT PRINCIPLES
FROM THE WORLD’S GREATEST MANUFACTURER
JEFFREY K. LIKER

2. CHALLENGE EVERYTHING….
• “All elements to be practiced everyday in a
very consistent manner, not in spurts”

3. PROBLEM SOLVING
(Continuous
Improvement and
Learning)
PEOPLE and PARTNERS
(Respect, Challenge, and
Grow Them)
PROCESS
(Eliminate Waste)
PHILOSOPHY
(Long- Term Thinking)
The Business of Principles- The TOYATA WAY

4. Organizational learning…
• Philosophy
• Process right
• People and partners building
• Problem solving
“operational excellence” as strategic weapon…

5. 5 step ‘Lean Manufacturing’
1. Defining customer value
2. Defining value stream
3. Making it flow
4. Pulling from the customer back
5. Striving for excellence
Cost, quality and service to be the BEST

6. Founders’ thoughts
• King of inventors of Japan- Sakichi Toyoda
• Toyota way- genchi genbutsu (1926)
• Toyota conglomerate- Keiretsu
• Automation with a human touch and mistake
proofing- Jidoka/ autonomation
• Hard work, perseverance, discipline- James
Watt
• Management by Facts…

7. Kiichiro Toyoda
• “everyone should tackle some great project at
least once in their life”
• Education from Tokyo Imperial University
• Learning by Doing
• Pillars of the Toyota Production System-
jidoka, just-in-time
• Creativity, challenge, courage, commitment
and patience

8. Taichi Ohno
• One piece flow
• Pull system
• Kanban
• “Shortening lead time by eliminating waste in
each step of a process leads to best quality
and lowest cost, while improving safety and
morale”
• Spirit of challenge- the acceptance of
responsibility to meet the challenge

9. • “we accept challenges with a creative spirit and
the courage to realize our own dreams without
losing drive or energy. We approach our work
vigorously, with optimism and a sincere belief in
the value of our contribution”
• “we strive to decide our own fate. We act with
self reliance, trusting on our own abilities. We
accept responsibility for our conduct and for
maintaining and improving the skills that enable
us to produce added value”

10. • Kaizen- change for the better
• Kaikaiku- major revolutionary change
• Walk the actual path- to construct the value
stream
• Takt- German word for ‘meter’
• Total Productive Maintenance- always a sense of
urgency

11. Framework
• Quality
• Cost
• Delivery
• Safety
• Morale

12. BEST QUALITY- LOWEST COST- SHORTEST LEADTIME
PEOPLE & TEAMWORK
CONTINUOUS
JIT IMPROVEMENT JIDOKA
(JUST IN TIME) (IN STATION QUALITY)
• GENCHI GENBUTSU
• 5 WHY’S
•EYES FOR WASTE
•PROBLEM SOLVING
LEVELED PRODUCTION (HEIJUNKA)-STABLE-STANDARDIZE PROCESS- VISUAL MANAGEMENT
TOYOTA WAY PHILOSOPHY

13. • Never be satisfied with inaction
• Question and redefine your purpose to attain
progress
• 5S facilitates teamwork
• Sensei- mentors
• Total Budget Control System

14. • Muri- no value added beyond capability
• Mura- unevenness
“most businesses are 90% waste (muda) and
10% value added work”

15. Benefits of one piece flow
• Builds in quality
• Creates real flexibility
• Creates higher productivity
• Frees up floor space
• Improves safety
• Improves morale
• Reduces cost of inventory

16. TPS- Thinking Production System
• Pull system
• Flow where you can pull, where you must
• Learning to see
• Heijunka- level out the workload
• Andon- light signaling system
• Jidoka- autonomation
• Standard work chart
• Fit customer demand into leveled schedule and
establish standard times for delivering different
types of service

17. 4 tools
1. Go and see Genchi genbutsu
(refered as ‘Management by Walking Around’
2. Analyze situation first by Hewlett Packard)
3. Use one piece flow and Andon
4. Ask “why?” 5 times
• Kentou- study drawing
• Kentouzu- plural of drawing

18. Standardized work
• Takt time
• Sequence of process
• Inventory required

19. Visual control (Management by Sight)
SOCIAL STRUCTURE
TECHNICAL STRUCTURE
COERCIVE ENABLING
BUREACRACY
AUTOCRATIC ORGANIC

20. A3 reports
• State problem
• Document current situation
• Determine the root cause
• Suggest alternate solution
• Suggest recommended solution
• Cost-benefit analysis

21. TPS- Respect for Humanity System
• Recruiting is 96% employees, 92% employers,
84% yellow pages, 47% personal contact
• Team development process (Blanchard)
1. Orientation
2. Dissatisfaction
3. Integration
4. Production

22. • Jishuken- voluntary study groups
• Hoshin kanri- policy deployment
• Horensu- to report, give updates periodically
(a form of micro management)
• Thorough consideration in decision making

23. • Nemawashi- decision making to all options
and rapid implementation
• Integrity and excellence
• Kozokeikaku- structure plan (K4)
“a picture is worth a thousand words”

24. “Meeting”
• Clear objectives prior to the meeting
• The right people at the meeting
• Prepared participants
• Effective use of visual aids
• Separate information sharing from problem
solving
• The meeting starts and ends on time

25. • Hansei (relentless reflection) + kaizen (continuous
improvement)= learning organization
• Pareto- the only statistical tool used in toyota
technical center
• Point of cause (POC)
• Toyota Practical Problem Solving Process (20%
tools, 80% thinking)

26. 3 types of measures at TOYOTA
• Global performance
• Operational performance
• Stretch improvement metrics
“process orientation”
Hoshin kanri (policy deployment process) for
stretching the improvement goals

27. Adapt-Develop-Sustain
• Value Stream Mapping- Material and Information Flow
Diagram (Mike Rother and John Shook, 1999)
• Project review events (Hansei)
• Box- process, triangle- inventory
• Task time- TT, Time in System- TIS, Value Ratio- VR
• Core Value Stream

28. A Toyota leader’s view of the Toyota Production System
PEOPLE
PHILOSOPHICAL

29. TOYOTA LEADERSHIP MODEL
Toyota Leaders
(Development)
Group Facilitator Builder of Learning
Bottom-Up
Organizations
“You’re empowered!” “Here is our purpose and
direction- I will guide and
coach”
Bureaucratic Managers Task Master
(Directives)
Top-Down
“Follow the rules!” “Here is what to do and How-
do it!”
General Management In-Depth understanding of
Expertise Work

30. Supply chain need hierarchy
Learning
Next Level of Enterprise
Improvement Enabling
Systems
Clear Expectations
Stable, Reliable Processes
Stability
Fair and Honorable Business Relations

31. Alternative Toyota Decision making methods
Preferred Group Consensus
with
Full Authority
Group Consensus,
Level of Involvement
Management Fallback
Approval (if consensus
Seek group not achieved )
Input,
then decide
and announce
Fallback (if consensus
Seek Individual not achieved )
Input,
then decide
and announce
Decide and Announce
Time

32. 1. Initial Problem Perception
(Large, Vague, complicated problem
2. Clarify the Problem
The “Real” Problem
Grasp the
Situation 3. Locate Cause/
Point of Cause
--------------------------------- POC Basic Cause and Effect
Investigation
Cause
Investigation Root Cause 4. 5- Whys? Investigation of
---------------------------------
Root Cause
5. Countermeasure
6. Evaluate
7. Standardize
Toyota’s practical problem-solving process

33. Policy deployment process (hoshin kanri)
Targets for Organization
Time
Quality
Cost
Innovation
High-Level Plan
Executive Staff
Improvement?
Who?
Method?
Target? Plan- Do
Time?
Manager/ Supervisor Work Plan by item
Action
Check
Measurement
Countermeasure
Improvement?
Work Team Method?
Result?
Countermeasure?
Target & Time?
All 3 Levels

34. Creating flow and PDCA
Create Flow
(Act)
Evaluate Results
Eliminate Surface Problems
(Check) Waste (Plan)
Counter Measures
(Do)

35. Kaizen workshops
• Phase I
• Phase II
• Phase III

36. Phase I- Preparation for the workshop
1. Clearly define the scope
2. Set objectives
3. Create preliminary current state map
4. Collect all relevant documents
5. Post a preliminary current state map in the
team room

37. Phase II- The Kaizen Workshop
1. Who is the customer?
2. Analyze the current state
- Valued added
- Non-Value added. What is pure waste?
- Non-Value added, but Required (incidental work)
3. Develop future state vision
4. Implementation
5. Evaluate: measuring performance

38. Phase III- After the workshop- Sustaining
and Continuous Improvement
• Review the status of action items
• Review process metrics
• Discuss additional opportunities for
improvements
• Continue to improve the process

39. Factors influencing Top Leaders in
Lean vision
1. Ownership structure
2. Promote from within
3. Environmental pressures
4. Experience with lean

40. Myth versus reality of TPS
What TPS is not What TPS is
• A tangible recipe for success • A consistent way of thinking
• A management project or • A total management philosophy
program • Focus on total customer
• A set of tools for implementation satisfaction
• An environment of teamwork and
• A system for production floor improvement
only
• A never ending search for a
• Implementable in a short or mid- better way
term period • Quality built in process
• Organized, disciplined workplace
• evolutionary

41. Why Changing Culture is so Difficult?
• Tip of the iceberg- Kanban, 5S, Charts, Teams,
Andon, Slogans, Value Stream Maps
• Immersed iceberg- Culture Change
(Involve people in continuous
improvement to eliminate waste
through the Toyota Way)

42. 13 Tips for Transitioning Your Company to a
Lean Enterprise
1. Start with action in the technical system;
follow quickly with cultural change
2. Learn by doing first and training second
3. Start with value stream pilots to demonstrate
lean as a system and provide a “go see”
model
4. Use value stream mapping to develop future
state visions and help “learn to see”

43. 5. Use kaizen workshops to teach and make
rapid changes
6. Organize around value streams
7. Make it mandatory
8. A crisis may prompt a lean movement, but
may not be necessary to turn a company
around
9. Be opportunistic in identifying opportunities
for big financial impacts

44. 10.Realign metrics with a value stream
perspective
11.Build on your company’s roots to develop
your own way
12.Hire or develop lean leaders and develop a
succession system
13.Use experts for teaching and getting quick
results

45. Thank you…..!