The Toyota Way
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The 14 Principles of the Toyota Way is a management philosophy used by the Toyota corporation. The main ideas are to think long term, to have a process for solving problems, to add value to the Organization by developing its people, and to recognize that continuously solving root problems drives organizational learning.
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[edit] Principle 1
Base your management decisions on a long-term philosophy, even at the expense of short term financial goals.
[edit] Principle 2
The right process will produce the Right Results Create a continuous process flow to bring problems to the surface.
Elimination of muda (waste), through the process of continuous improvement - kaizen. The eight types of muda are:
1. Overproduction
2. Waiting
3. Unnecessary transport
4. Overprocessing
5. Excess inventory
6. Unnecessary movement
7. Defects
8. Unused employee creativity
[edit] Principle 3
Use "pull" systems to avoid overproduction.
A method where a process signals its predecessor that more material is needed. The pull system produces only the required material after the subsequent operation signals a need for it. This process is necessary to reduce overproduction.
[edit] Principle 4
Level out the workload (heijunka). (Work like the tortoise, not the hare.)
This helps achieve the goal of minimizing waste (muda), not overburden people or the equipment (muri) and not creating uneven (mura) production levels.
[edit] Principle 5
Build a culture of stopping to fix problems, to get quality right the first time.
Quality takes precedent (Jidoka). Any employee in the Toyota Production System has the authority to stop the process to signal a quality issue.
[edit] Principle 6
Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.
Although Toyota has a bureaucratic system, the way that its implemented allows for continuous improvement (kaizen) from the people affected by that system. It empowers the employee to aid in the growth and improvement of the company.
[edit] Principle 7
Use visual control so no problems are hidden.
Included in this principle, is the 5S Program - steps that are used to make all work spaces efficient and productive, help people share work stations, reduce time looking for needed tools and improve the work environment.
Sort: Sort out unneeded items
Straighten: Have a place for everything
Shine: Keep the area clean
Standardize: Create rules and standard operating procedures
Sustain: Maintain the system and continue to improve it
[edit] Principle 8
Use only reliable, thoroughly tested technology that serves your people and processes.
Technology is pulled by manufacturing, not pushed to manufacturing.
[edit] Principle 9
Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
Without constant attention, the principles will fade. The principles have to be engrained, it must be the way one thinks. Employees must be educated and trained: they have to maintain a learning organization.
[edit] Principle 10
Develop exceptional people and teams who follow your company's philosophy.
Teams should consist of 4-5 people and numerous management tiers. Success is based on the team, not the individual.
[edit] Principle 11
Respect your extended network of partners and suppliers by challenging them and helping them improve.
Toyota treats suppliers much like they treat their employees, challenging them to do better and helping them to achieve it. Toyota provides cross functional teams to help suppliers discover and fix problems so that they can become a stronger, better supplier.
[edit] Principle 12
Go and see for yourself to thoroughly understand the situation (genchi genbutsu).
Toyota managers are expected to "go-and-see" operations. Without experiencing the situation firsthand, managers will not have an understanding of how it can be improved. Furthermore, managers use Tadashi Yamashima's (President, Toyota Technical Center (TCC)) ten management principles as a guideline:
1. Always keep the final target in mind.
2. Clearly assign tasks to yourself and others.
3. Think and speak on verified, proven information and data.
4. Take full advantage of the wisdom and experiences of others to send, gather or discuss information.
5. Share information with others in a timely fashion.
6. Always report, inform and consult in a timely manner.
7. Analyze and understand shortcomings in your capabilities in a measurable way.
8. Relentlessly strive to conduct kaizen activities.
9. Think "outside the box," or beyond common sense and standard rules.
10. Always be mindful of protecting your safety and health.
[edit] Principle 13
Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi).
The following are decision parameters:
1. Find what is really going on (go-and-see)to test
2. Determine the underlying cause
3. Consider a broad range of alternatives
4. Build consensus on the resolution
5. Use efficient communication tools
[edit] Principle 14
Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).
The process of becoming a learning organization involves criticizing every aspect of what one does. The general problem solving technique to determine the root cause of a problem includes:
1. Initial problem perception
2. Clarify the problem
3. Locate area/point of cause
4. Investigate root cause (5 whys)
5. Countermeasure
6. Evaluate
7. Standardize
[edit] References
The 14 Principles Of The Toyota Way: An Executive Summary of the Culture Behind TPS. Retrieved on 2007-01-21.
