The document provides an overview of Toyota's business philosophy and principles known as "The Toyota Way." It discusses Toyota's company symbols and guiding principles, which focus on customer trust, technology, and growth. It also summarizes Toyota's approach to lean production, respect for people, problem-solving, and developing long-term partnerships with suppliers. The Toyota Way principles emphasize long-term vision, continuous improvement, respect for people, and eliminating waste to achieve high quality and efficiency.

2. Book Review

3. The current Toyota Mark consists of three ovals:
The two perpendicular center ovals represent a relationship of mutual trust
between the customer and Toyota.
These ovals combine to symbolize the letter "T" for Toyota.
The space in the background implies a global expansion of Toyota's
technology and unlimited potential for the future.

4. • Honor the language and spirit of the law of every nation and undertake
open and fair corporate activities to be a good corporate citizen of the world.
• Respect the culture and customs of every nation and contribute to
economic and social development through corporate activities in
the communities.
• Dedicate ourselves to providing clean and safe products and to
enhancing the quality of life everywhere through all our activities.
Guiding Principles at Toyota

5. • Create and develop advanced technologies and provide outstanding
products and services that fulfill the needs of customers worldwide.
• Foster a corporate culture that enhances individual creativity and
teamwork value, while honoring mutual trust and respect between
labor and management.
• Pursue growth in harmony with the global community through innovative
management.
• Work with business partners in research and creation to achieve
stable, long-term growth and mutual benefits, while keeping ourselves
open to new partnerships.
Guiding Principles at Toyota

6. Part I - Background to the Field book
• Toyota has a reputation for excellence in quality, cost reduction
& hitting the market with vehicles that sell.
• Contributed a new paradigm in marketing ‘’ Lean production’’
• Creating a ‘’learning organization’’ and pass on the DNA as they
expand globally through dedicated Sensei.
• There is always more than one way to achieve desired result.

7. The 4 P Model – The Toyota Way
PHILOSOPHY – Adding value to customers , society, community
and its associates.
PROCESS – Right process ,Right results
Eg. Principle of creating flow
PEOPLE AND PARTNERS – Add value to your organization by
challenging your people and partners to grow.
Toyota production system (TPS) was called ‘’Respect for humanity’’ system
PROBLEM SOLVING – Solve root problems to drive organizational learning.
When someone learns an important lesson, it is shared so that company
can learn.

8. Overview of Toyota Way Principles
I Philosophy as the foundation
1. Base your management decisions on a long term philosophy,
even at the expense of short-term financial goals.
II The Right process will produce Right Results
2. Create a continuous process flow to bring problems to the surface
3. Use ‘’Pull’’ systems to avoid overproduction.
4. Level out workload

9. II The Right process will produce Right Results
5. Build a culture of stopping to fix problems, to get quality right the
first time.
6. Standardized tasks and processes are the foundation for
continuous improvement and employee empowerment
7. Use visual control so no problems are hidden
8. Use only reliable, thoroughly tested technology that serves your
people and process.
Overview of Toyota Way Principles

10. III Add value to your organization by developing your
people and partners
9. Grow with leaders who thoroughly understand the work, live the
philosophy and teach it to others.
10. Develop exceptional people and teams who follow your company’s
philosophy.
11. Respect your extended network of partners and suppliers by
challenging them and helping them improve.
Overview of Toyota Way Principles

11. IV Continuously solving root problems drives
organizational learning
12. Go and see for yourself to thoroughly understand the situation.
13. Make decisions slowly by consensus, thoroughly considering
all options; implement decisions rapidly.
14. Becoming a learning organization through relentless reflection
and continuous improvement.
Overview of Toyota Way Principles

12. PART II - Why Does Your Company Exist ?
What is your Company’s Philosophy ?
Survive ? Contributing to Society , Associates & Partners ? Profits ?
Defining the Company’s Purpose
Company
Purpose
Learning Community
ST – Capable people
LT – Learning to
improve
Learning Enterprise
ST – Capable partners
LT – Learning
Enterprise
Lean Systems
ST – Capable processes
LT – Value stream
improvement
Value-adding
Contributor
ST – Profitable
LT – Growth & contribution
to society

13. PART III – Creating Lean Processes
Throughout Your Enterprise
Lean – Eliminating Waste
Toyota’s 7 major types of non-value adding
Activities in business or manufacturing processes –
1. Overproduction
2. Waiting (Time on hand)
3. Transportation or Conveyance
4. Over processing or Incorrect processing

14. Toyota’s 7 major types of non-value adding
Activities in business or manufacturing processes –
5. Excess inventory
6. Unnecessary movement
7. Defects
Eight Waste
Unused Employee Creativity

15. • Developing a long – term philosophy of
Waste Reduction - “Get Lean”
• Value Stream Mapping Approach
Beginning at the end of the flow
• Strategies to create stability
Capability to produce consistent results over time.
PART III – Creating Lean Processes
Throughout Your Enterprise

16. 5 S and Workplace Organization
Eliminate
Waste
Sort
Clear out rarely
Used items
Straighten
Organize and label
a place for
everything
Sustain
Use regular audits
Shine
Clean it
Standardize
Create procedures
To maintain
first 3s

17. Connected flow across the enterprise
Production in the entire facility & across multiple
facilities will be shut down if problems are not corrected
effectively.
Importance of equipment readiness, manpower availability
and material supply when thousands of people stop working
If there is a failure.
At Toyota –
• Entire operation is connected and a problem will main
component halts the entire facility.
• Sees it as an opportunity to identify weakness within the
system, to attack weakness and strengthen the overall
system.

18. Less is more – Reduce Waste by Controlling
Overproduction
Toyota considers overproduction to be the worst of
seven types of wastes.
Stopping overproduction- producing more, sooner or
in greater quantity than next operation requires.
Creating Pull between Separate Operations
“Always satisfy the customer’’
‘’ Never short the customer’’
Establish correct amount of WIP between supplier
and the customer to buffer time requirement of the
supplier to changeover and also to supply to second
customer.

19. Establish Standardized Processes and Procedures
Objective of Standardization –
Maximize he entire system and considers ‘’Total Cost’’
via waste reduction as a primary indicator of success.
Toyota considers development of standardization to be
baseline for continuous improvement, meaning that future
results are expected to improve from the standard.

20. The Leveling Paradox
‘’Heijunka’’ – Level or make smooth
Produce smaller quantities more aligned with actual
customer consumption.
Points of Control
Kanban – Point of control for inventory management

21. What Toyota does that makes their quality
consistently better than other Car companies ?
Principle of building in Quality and decision to stop
and fix problems as they occur rather than pushing
them down the line to be resolved later.
Toyota has build in system that provides long-term benefits
of stopping the line and minimizes negative effect by building
a support structure to quickly identify ,respond and
correct problems.

22. The Toyota method of stopping to fix problems
Philosopy
Waste elimination
Principle
Get quality Right the
First time
Strategy
Stop to fix problems
Method
Fixed position stop and
Support structure
Reason
Increase urgency to
Identify & correct problems
Effect
Long-term
strengthening
Performance Measure
First-Time
Quality
Lean Tools
Jikoda,
Problem solving
Control methods
Standardized work
Quality audits
Result
System waste
and
cost is reduced

23. Role Of Jikoda : Self Monitoring Machines
Jikoda – Intelligent machines
Machine’s ability to detect a problem and to stop itself.
Problem solving Cycle
1. Recognition
2. Elevate
3. Evaluate
4. Control
5. Containment
6. Prevention
Poka Yoke
“Mistake Proofing’’ or ‘’Error proofing’’

24. Make Technology Fit with People and
Lean Processes
Tailor Technology to Fit your People and
Operating Philosophy
Keep Technology in Perspective
Toyota is an engineering-driven company and technology
based company.
Innovative product and process technology is at the
core of Toyota’s success.
People are at the core in creating and successfully
implementing innovative product and process technology.

25. Success starts with Leadership
Toyota views leaders as crucial elements and ratio
of leaders to team members is one –to- 20 /30
Importance of Leadership within Toyota
Toyota philosophy is to disperse responsibility to the
lowest level possible. Three basic responsibilities –
1. Support for operations 2. Promotion of the System
3. Leading Change
Four Key performance Results-
1. Safety 2. Quality 3. Productivity 4. Cost
PART IV – Develop Exceptional People
and Partners

26. Requirements For Leaders
1. Willingness and desire to lead
2. Job Knowledge
3. Job Responsibilities
4. Continuous Improvement Ability
5. Leadership Ability
6. Teaching Ability

27. Develop Exceptional Team Associates
“We Don’t Just Build Cars, We Build People’’
People truly are the greatest assets.
• Select the right people
• Assimilating team associates into your culture
• Training Plan and Tracking Performance
• Quality Circles – Vital part of Kaizen
• Toyota Suggestion Programme – Providing a sense of
ownership
• Invest in Skill in all areas of company

28. Develop Suppliers and Partners as Extensions
of the Enterprise
• Supplier partners in a Globally Competitive World
• Short term Cost Savings vs. Long term Partnerships
• Supplier partnering at Toyota –
1. Mutual understanding & Trust
2. Control systems
3. Compatible capabilities
4. Information sharing
5. Joint Improvement activities
6. Continuous improvement and Learning

29. Building a Lean Extended Enterprise
1. Become a Role Model Lean Customer
You cant teach suppliers what you yourself
have not yet mastered.
2. Identify your Core Competencies
Outsourcing entails more than simple make –buy
decision
3. Develop your core suppliers
Make sure their systems and philosophies are
compatible with yours and they are at a comparable
level of operational excellence.

30. Building a Lean Extended Enterprise
4. Use control Systems for continuous improvement
Manage supplier relationship by minimizing bureaucratic
systems and procedures to a critical minimum
5. Favor an incremental approach
Start small with selective outsourcing for a new supplier.
6. Develop mechanisms for Joint Enterprise Learning
Learn together and capture learning in standardized
routines.

31. PART V – Root CAUSE Problem Solving
for Continuous Learning
Problem Solving The Toyota Way
Identify and remove obstacles on the path to perfection
• Every problem is an improvement opportunity
• Find the True Problem to get the most significant results
“Yoi Shina,Yoi Kangai’’ – “Good thinking, good products’’
Plan – Do- Check – Act
Plan : Develop an Action Plan
Do: Implement Solutions
Check : Verify Results
Act : Make necessary adjustments to Solutions and
to the Action plan

32. A 3 Report
Implementation Plan
A3 Report Title and Description
Problem Definition and
Description
Problem Analysis
Results
Future Steps
AUTHOR : _________ DATE:______

33. PART VI – Managing the Change
Lean Implementation Strategies and Tactics
1. Philosophy
2. Process
3. People
4. Problem Solving
Leading the Change

34. Lean Sensei - Sensei “Teacher ”
Key Ingredients for Change
Change Effort
Participation &
OwnershipStructure
Committed
Knowledgeable
Leadership
Accountability
Learning by
doing Education
& Mentoring
Lasting
Results

35. Learnings
• Define company’s purpose and develop a
long-term philosophy
• Create value systems with flow, standardized work,
and level production
• Build a culture to stop and fix problems
• Develop leaders who promote and support the system
• Find and develop exceptional people and partners
• Lead the change process and transform the total enterprise