T
Toyoyotota a fifirsrst t caugcaught ht ththe e woworlrldds s atattetentntioion n in in ththe e 19198080s s whewhenn con
consumsumers ers stastarterted d notnoticiicing ng thathat t TToyooyota ta carcars s laslasted ted lonlonger ger andand required fewer repairs than American cars. Today, the company is required fewer repairs than American cars. Today, the company is the
theworworldldssmosmosttproprofitfitablableecarcarmanmanufaufactucturerrer,,conconsistensistentlytlyproproducducinging hi
highgh-q-quaualitlity y cars cars ususining g fefewer wer maman n hohoururs s anand d lesless s onon-h-hanandd inv
invententoriories. To es. To thithis s dayday, , TToyooyota ta concontintinues ues to to rairaise se the the bar bar forfor manuf
manufacturacturing,ing,produproductionctiondevelodevelopmentpmentandandproceprocessssexcellexcellence.ence. explains the management principle and business explains the management principle and business philosophy behind T
philosophy behind Toyotaoyotas success. It narrates s success. It narrates TToyotaoyotas approachs approach to Lean Production (known as the Toyota Production System) and to Lean Production (known as the Toyota Production System) and the 14 principles that drive Toyota towards quality and excellence. the 14 principles that drive Toyota towards quality and excellence. The book also explains how you can adopt the same principles to The book also explains how you can adopt the same principles to imp
improvroveeyouyourrbusinesbusinesssproprocescessesses,,whilwhileecutcuttintinggdowndownononopeoperatrationsions and
andproducproductiontioncostscosts..
T
Tooyyootta a iinnvveenntteed d iin n tthhe e 11994400s s aannd d 5500ss. . TThhee company focused on eliminating wasted time and material from company focused on eliminating wasted time and material from ev
evereryyststepepofofththeeprprododucuctitiononprprococesesss(f(frorommrarawwmamateteririalsalstotofifinisnishehedd goods). goods). ' ' ' ' ' ' ''
The Toyota Way The Toyota Way
TheToyotaProduction
TheToyotaProductionSysteSystem (m (TPTPS)andS)andLeaLeannProductionProduction Lea
Lean n ProductionProduction
Author:
Author:
Publisher:
Publisher:
Da
Date of
te of
Publication:
Publication:
ISBN:
ISBN:
Number of Pages:
Number of Pages:
Je
Je
ffre
ffre
y
y
K
K
.
.
Lik
Lik
er
er
M
M
cG
cG
raw
rawHill
Hill
2003
2003
3
33
3
0
0
0071392319
0071392319
pages
pages
AboAbout theut theAuthAuthoror
The Big Idea
The Big Idea
JeffreyLiker JeffreyLiker
Dr. Jeffrey K. Liker
Dr. Jeffrey K. Liker is is ProProfesfessor sor of of
Industrial and Operations
Industrial and Operations EngineeringEngineering
a
at t tthhe e . . HHe e iis s tthhee
D i
D irre ce ct ot or r o f o f t ht he e JJ
(JTM
(JTMP) and P) and co-
co-Dir
Directector or of of the the lealean n manmanufaufactucturinringg
progr
program at am at the Universthe University of ity of MichiMichigangan
that
thatofferofferssaa10-da10-dayyleanmanufactuleanmanufacturingring
certificate and a five-day lean product
certificate and a five-day lean product
development certificate. Dr. Liker has
development certificate. Dr. Liker has
au
auththorored ed or or co-co-auauththorored ed ovover er 6565
art
articlicles es and and boobook k chachaptepters rs and and fivfivee
b o
b oo ko ks . s . H e i s H e i s a la ls o t hs o t he e E dE di ti to r o f o r o f
(Produ
(Productivity ctivity Press,Press,
1997), winner of the 1998 Shingo prize
1997), winner of the 1998 Shingo prize
(fo
(for r exexcelcellenlence ce in in manmanufaufactucturinringg
res
researearch)ch). . He He is is actactive as ive as a a keykeynotnotee
speak
speakerer,,speakspeakererforforexecexecutivutiveeretrretreats,eats,
and lean consultant, independently and
and lean consultant, independently and
thr
througough h a a comcompanpany y he he cofcofounounded ded --
--Optipr
Optiprise, ise, Inc. Recent Inc. Recent clienclients ts incluincludede
G.M
G.M.., , FoFord, rd, IntIntierier, , PPG PPG IndIndustustrieries,s,
Johns
JohnsononContrControls,ols,TTenneennecocoAutoAutomotivmotive,e,
Fram
Framatome atome TTechnechnologiologies, es, NorthNorthroprop
Grumm
Grumman an Ship Ship SystSystems, ems, JacksJacksonvionvillelle
Naval Air Depot, and Portsmouth Naval
Naval Air Depot, and Portsmouth Naval
ShipYard.
ShipYard.
University of
University of MicMichigan higan
apan
apan TeTechnolchnology ogy
Mana
Management gement PProgram rogram
Bec
Becoming oming LeaLean: n: EExperiences of U.S.xperiences of U.S.
Manufacturers
Manufacturers
Publ
Published by ished by BusinBusinessSuessSummarimmaries, Building 3005 es, Building 3005 Unit 258, Unit 258, 4440 NW 4440 NW 73rd Ave, Miami, Florida 3316673rd Ave, Miami, Florida 33166
©2003 BusinessSummari
©2003 BusinessSummaries All rights reserved. es All rights reserved. No part of this summary may be reproduced or transmittedNo part of this summary may be reproduced or transmitted
in
in anany y foform rm or or by by anany y memeanans, s, elelecectrtrononicic, , phphototococopopyiyingng, , or or ototheherwrwisise, e, wiwithothout ut prprioior r nonotictice e ofof
BusinessSummaries.com
BusinessSummaries.com
The World Class Power of the Toyota Way
The World Class Power of the Toyota Way
The Toyota W
The Toyota W
ay: Using
ay: Using
Operational Excellence as a
Operational Excellence as a
Strategic
Strategic
Weapon
Weapon
bo
bo
ut
ut
th
th
Aut
Aut
ho
ho
he
he
de
de
JeffreyLiker JeffreyLikerhe
he
or
or
ld
ld
Cl
Cl
as
as
Po
Po
we
we
of
of
th
th
oy
oy
ot
ot
ay
ay
Th
Th
oy
oy
ot
ot
ay
ay
Usi
Usi
ng
ng
Ope
Ope
rat
rat
io
io
na
na
Ex
Ex
cel
cel
le
le
nc
nc
as
as
St
St
rat
rat
eg
eg
ic
ic
Weapon
The result was a fast and flexible process that gives the customers what they want, The result was a fast and flexible process that gives the customers what they want, when they want it, at the highest quality and most affordable cost. Toyota improved when they want it, at the highest quality and most affordable cost. Toyota improved produ
productionctionby:by: Elimina
Eliminatingtingwastedwastedtimetimeandandresouresources.rces. Buildin
Buildinggqualitqualityyintointoworkplworkplaceacesystesystems.ms. Find
Findinginglow-low-coscosttandandyetyetrelreliabiablelealtalternernativesativestotoexpexpensensiveivenewnewtectechnohnologylogy.. Perfe
Perfectingctingbusinesbusinesssproceprocesses.sses. Buildin
Buildinggaalearnilearningngculturecultureforforcontincontinuousuousimproimprovemenvement.t.
T
Tooyyootta a ddeevveellooppeed d tthhe e aafftteer r WWoorrlld d WWaar r IIII. . WWhhiillee Ford and GM used mass production and economies of scale, Toyota faced very Ford and GM used mass production and economies of scale, Toyota faced very dif
differferententbusbusineinessssconconditditionsions..TToyooyota'ta'ssmarmarketketwaswasververyysmasmallllbutbutitithadhadtotoproproducduceeaa variety of vehicles on the same assembly line to satisfy customers. The solution: variety of vehicles on the same assembly line to satisfy customers. The solution: mak
makingingthetheopeoperatrationionssfleflexibxible. Thle. ThisisresresultultededininthethebirbirththofofTPSTPS.. TPS borrowed some of its ideas from t
TPS borrowed some of its ideas from the United States.he United States.The core idea of theThe core idea of the cam
cameefrofrommthetheconconcepcepttofofthethe“pu“pull-ll-syssystemtem”,”,whiwhichchwaswasinspinspireireddbyby the
theAmerican supermarkets. American supermarkets. In the In the pull system, individual pull system, individual items are items are replenished asreplenished as ea
eachchititemembebegiginsnstotorurunnlolowwononththeeshshelfelf.. Ap
ApplipliededtotoTToyoyotota,a,ititmeanmeanssththatatththeefifirsrsttststepepininththeeprprococesesssisisnonottcocompmpleleteteddununtitillththee second step uses the materials or supplies fro
second step uses the materials or supplies from Step 1.m Step 1.AtAtTToyota, every step of theoyota, every step of the ma
manunufafactctururining g prprococesess s ususes es to to sisigngnal al to to ththe e prpreveviouious s step step whwhen en itits s papartrt nee
needsdstotobeberepreplenlenishished.ed. The
ThecomcompanpanyywaswasalsoalsoinsinspirpirededbybyWW..EdwaEdwardsrdsDemDeming.Asiding.Asideefrofrommbrobroadlyadlydefdefiniiningng customers to include internal and external clients, he also encouraged Toyota to customers to include internal and external clients, he also encouraged Toyota to
· · · · · · · · · ·
Toyota Production System (TPS) Toyota Production System (TPS)
Just in Just in Tim
Timee(JI(JIT)T)syssystem tem
Kanban Kanban
The “4P” Model of the Toyota Way
The “4P” Model of the Toyota Way
How Toyota Became the World’s Best Manufacturer
How Toyota Became the World’s Best Manufacturer
he
he
“4
“4
P”
P”
Mo
Mo
de
de
of
of
he
he
oy
oy
ot
ot
ay
ay
ow
ow
oy
oy
ot
ot
Bec
Bec
ame
ame
th
th
or
or
ld
ld
Bes
Bes
Man
Man
ufa
ufa
ct
ct
ur
ur
er
er
Ph
Philosoilosophphy:y:LoLongngtermtermthinthinkingking Th
TheeRigRighthtProProcecessssWWillillProProduducecethetheRRighighttRResesultsults A
AddddVValualueetotothetheOOrgarganizanizationtionbyby De
DevelopvelopingingYYourourPePeopleopleandandPaPartnersrtners Co
ContinuontinuouslyuslySoSolvinglving Ro
RoototProbProblemlemssDriveDrivess Org
adopt a
adopt a systesystematic approacmatic approach h to problem solving, which to problem solving, which became a became a cornecornerstonrstone e forfor co
contntininuouousimusimprprovovememenentt(k(knonownas wnas ))
The point of the TPS is to minimize time spent on non-value adding activities by The point of the TPS is to minimize time spent on non-value adding activities by pos
positiitioninoninggthethematmaterierialsalsandandtootoolslsasasclocloseseasaspospossiblsibleetotothethepoipointntofofassassembemblyly.. The
The are: are:
1.
1. OveOverprrproduoductiction.on. 2.
2. WWaiaititingorngortitimeonmeonhahandnd.. 3.
3. UnnUnneceecessassaryrytransptransportorortorconconveyveyancance.e. 4.
4. OveOverrproprocescessinsinggororincincorrorrectectproprocescessinsing.g. 5.
5. ExcExcessessinveinventontoryry.. 6.
6. UnnUnneceecessassaryrymovmovemeement.nt. 7.
7. DeDefefectcts.s. 8.
8. UnuUnusedsedempemployloyeeeecrecreatiativitvityy..
The
TheTToyotaoyotamessamessagegeisisconsisconsistenttent::
This long-term philosophy is the guiding This long-term philosophy is the guiding post of the company in its continuous quest to offer the best in quality and service to post of the company in its continuous quest to offer the best in quality and service to its
itscustocustomers,mers,employemployeeseesandandstockstockholderholders.s.
. . Develop
Develop, work, grow , work, grow and align the and align the compacompany towards a ny towards a commocommon goal n goal that is that is biggerbigger tha
thannmakmakingingmonmoneyey..YourYourphiphilosolosophiphicalcalmismissiosionnisisandandshoshoulduldbebethethefoufoundandatiotionnofofallall your
yourotherotherprinciprinciples.ples. T
Toyooyotataisisaligalignednedaroaroundundsatsatisfisfyingyingthethecuscustomtomer.er.ItItbelibelieveevessthathattaasatsatisfisfiediedcuscustomtomerer comes back and gives more business through referrals. It generates value for the comes back and gives more business through referrals. It generates value for the custo
customermer,,thethesocietsocietyyandandthetheeconomeconomyy.. One of the keys to success of
One of the keys to success ofTToyota is that it lives by the philosophy of self relianceoyota is that it lives by the philosophy of self reliance an
anddaa“l“letet's'sdodoititoursourselelveves”s”atattititutudede..ThThisiscacannbebebebeststillillusustrtratatededwhwhenenititveventntururededinintoto the luxury car industry. It did not buy a company that already made luxury cars. the luxury car industry. It did not buy a company that already made luxury cars. Rather, it created its own luxury division - the Lexus - from scratch in order to learn Rather, it created its own luxury division - the Lexus - from scratch in order to learn and
andundunderserstantanddtheessenctheessenceeofofaaluxluxuryurycarcar..
The mass production system used by many manufacturers assures overproduction The mass production system used by many manufacturers assures overproduction in large batches which in turn guarantees inventory being idle and taking up a lot of in large batches which in turn guarantees inventory being idle and taking up a lot of
Kaizen Kaizen
Do
Dotherightherighttthithingngfortheforthecocompmpananyy,,itsemplitsemployoyeeees,s, the customer and the society as a whole.
the customer and the society as a whole. Ma
Major types of non-vajor types of non-valuelueadding waadding wastestein business or production processin business or production process
Long-Long-teterm rm goagoal l should should supesupersersede de short-teshort-term rm dedecision cision mamaking king or or goagoalsls
The Heart
The Heart
of the
of the
T
T
oyota Production System:
oyota Production System:
Eliminating W
Eliminating W
aste
aste
Principle 1: Base your management decision on a
Principle 1: Base your management decision on a
long-term philosophy
long-term philosophy
, even at
, even at
the expense of short-term financial goals
the expense of short-term financial goals
The Business
The Business
Principles of
Principles of
the Toyo
the Toyo
ta Way
ta Way
Principle 2: Create continuous process flow to bring problems to the surface
Principle 2: Create continuous process flow to bring problems to the surface
he
he
Hea
Hea
rt
rt
of
of
th
th
oy
oy
ot
ot
Pro
Pro
du
du
ct
ct
io
io
Sys
Sys
tem
tem
El
El
im
im
in
in
at
at
in
in
as
as
te
te
Pri
Pri
nc
nc
ip
ip
le
le
1:
1:
Bas
Bas
yo
yo
ur
ur
man
man
ag
ag
eme
eme
nt
nt
de
de
ci
ci
si
si
on
on
on
on
lo
lo
ng
ng
-t
-t
erm
erm
ph
ph
il
il
os
os
op
op
hy
hy
ev
ev
en
en
at
at
th
th
ex
ex
pe
pe
ns
ns
of
of
sh
sh
or
or
t-
t-
te
te
rm
rm
fi
fi
na
na
nci
nci
al
al
go
go
al
al
he
he
Bu
Bu
si
si
ne
ne
ss
ss
Pr
Pr
in
in
ci
ci
pl
pl
es
es
of
of
th
th
oy
oy
ot
ot
ay
ay
ri
ri
nc
nc
ip
ip
le
le
2:
2:
Cr
Cr
ea
ea
te
te
co
co
nt
nt
in
in
uo
uo
us
us
pr
pr
oc
oc
es
es
fl
fl
ow
ow
to
to
br
br
in
in
pr
pr
ob
ob
le
le
ms
ms
to
to
th
th
su
su
rf
rf
ac
ac
plant space. Toyota's lean production system has redesigned the work process to plant space. Toyota's lean production system has redesigned the work process to move
movebothbothmatermaterialsialsandandinforinformatiomationnfastefaster.r. T
Tooopoptitimimizezeththeeflflowowofofmamateteririalsalssosoththatatititwowoululddmomoveveququickicklyly,,TToyoyototaarereduduceceddbabatctchh sizes and came up with work cells that were grouped by product rather than by sizes and came up with work cells that were grouped by product rather than by process. The continuous process flow links the process and the people together so process. The continuous process flow links the process and the people together so th
thatatififaaprproboblelemmsusurfrfacaceded,,ititcacannbebesosolvlvededririghghttawawayay..
1.
1. BuBuildildssininququalalitityy.. 2.
2. CreCreateatessreareallfleflexibxibilitilityy.. 3.
3. CreCreateatesshighigherherproproducductivtivityity.. 4.
4. FrFreeeessupupflfloooorrspspacace.e. 5.
5. ImpImprovrovesessafsafetyety.. 6.
6. ImpImprovrovesesmormoral.al. 7.
7. RedReduceucesscoscosttofofinvinvententoryory..
The pull-system hinges on the idea of restocking inventory based on the day-to day The pull-system hinges on the idea of restocking inventory based on the day-to day de
demamandndofofththeecucuststomomererssraraththererththananononaafixefixeddscscheheduduleleororsysyststemem. . ThThisiscacallsllsfoforraa fle
flexibxiblelesyssystemthattemthatrelreliesiesononconconsumsumererdemdemandand..
The Just-in-Time (JIT) system provides customers with what they want, when they The Just-in-Time (JIT) system provides customers with what they want, when they want it and in the amount they want it. Material restocking based on consumption want it and in the amount they want it. Material restocking based on consumption minimizes work in process and warehousing of inventory. You only stock small minimizes work in process and warehousing of inventory. You only stock small amounts of each product and frequently replenish based on what the customer amounts of each product and frequently replenish based on what the customer actua
actuallyllytakestakesawayaway..
A
Astrstrictictbuibuild-ld-to-to-ordorderersyssystemtembuilbuildsdsaalotlotofofinvinvententoryory,,oveover-hr-headeadcoscost,t,poopoorerrerproproducductt and
andserservicviceequaqualitlityyandandhidhiddendenproprobleblems.ms.TTooelimeliminatinateethithissproprobleblem,m,TToyooyotatacamcameeupup wit
withhaaschschemeemeofoflevlevelinelinggoutouttheproductheproductiotionnschscheduedule.le.
The leveling of production by volume and product mix is known as heijunka. The The leveling of production by volume and product mix is known as heijunka. The process does not build up products according to the actual flow of customer orders. process does not build up products according to the actual flow of customer orders. Ra
Raththerer,,itittatakekessththeetototatallvovolulumemeofoforordedersrsininaapepeririododananddlelevevelslsththememouout.Thist.Thisreresusultltss to
tohahavivingngththeesasameamoumeamountandntandmimixxmamadedeeaeachchdadayy
1.
1. FleFlexixibibilitlityytomakewhatthetomakewhatthecucuststomomererwantwantsswhwhenenththeyeywawantntitit.. 2.
2. ReReduduceceddririskskofofununsosoldldgogoodods.s. 3.
3. BaBalanlanceceddususededofoflalaboborrananddgogoodods.s. Bene
Benefits offits ofthetheone-one-piecepiece/continuous/continuousprocess flowprocess flow
Bene
Benefits fits ofofaaLeveLevelinglingScheScheduledule
Principle 3: Use the “Pull-System” to
Principle 3: Use the “Pull-System” to
A
A
void Over Production
void Over Production
Principle 5: Build a Culture of Shopping to Fix the Problem, to Get the Quality
Principle 5: Build a Culture of Shopping to Fix the Problem, to Get the Quality
Right the First
Right the First
Time
Time
Pr
Pr
in
in
ci
ci
pl
pl
e
e
4:
4:
Le
Le
ve
ve
l
l
ou
ou
t
t
th
th
e
e
W
W
or
or
kl
kl
oa
oa
d
d
(
(
heijunka
heijunka
)
)
ri
ri
nc
nc
ip
ip
le
le
3:
3:
Use
Use
th
th
“Pu
“Pu
ll
ll
-Sy
-Sy
st
st
em
em
to
to
vo
vo
id
id
Ove
Ove
Pro
Pro
du
du
ct
ct
io
io
Pr
Pr
in
in
ci
ci
pl
pl
5:
5:
Bu
Bu
ld
ld
Cu
Cu
tu
tu
re
re
of
of
Sh
Sh
op
op
in
in
to
to
Fi
Fi
th
th
Pr
Pr
ob
ob
le
le
m,
m,
to
to
Ge
Ge
th
th
Qu
Qu
al
al
it
it
Ri
Ri
gh
gh
th
th
Fi
Fi
rs
rs
im
im
eijunka
eijunka
Qua
Qualitlity y for the for the cuscustomtomers ers shoshould uld be be the the dridrivinving g forforce ce behbehind ind any any comcompanpany'sy's phi
philoslosophophyy..QuaQualitylityshoshould beuld bebuibuiltltininyouyourrcomcompanpanyyand youand yourrproproducductiotion procen processesses.s. Bui
BuildinldinggananEarEarlylyWWarnarningingDevDeviceiceintintooyouyourrlineorlineorequequipmipmententpreprevenventstsproproblemblemssfrofromm bein
beinggpaspassedseddowdownnthethelinline.e.ThisThisredreduceucesscoscoststsandandisismormoreeeffecteffectiveivethathanninsinspecpectintingg and
andreprepairairingingquaqualitlityyproproblemblemssaftaftererthethefacfact.t.
You should also build a support system that can quickly solve problems and create You should also build a support system that can quickly solve problems and create counter measures. The development of a company principle of stopping or slowing counter measures. The development of a company principle of stopping or slowing down work when a problem is detected and getting the quality right enhances down work when a problem is detected and getting the quality right enhances pro
producductivtivityityandandproprofitfitabiabilityinlityinthelongthelongrunrun..
Stand
Standardizaardization tion is is the the foundafoundation for tion for contincontinuous uous improimprovemenvement, t, innovainnovation, growthtion, growth and
andquaqualitylity. . ItItisisimpimpossossibleibletotoenhenhancanceeanyanyproprocescesssuntuntililititisisstastandandardirdizedzed..QualQualityityisis likewis
likewise e guaranguaranteed through standard procedurteed through standard procedures es to to ensurensure e consisconsistency in tency in thethe proce
processssandandproducproduct.t.
When implementing standardization, it is important to strike a balance between When implementing standardization, it is important to strike a balance between providing the employees with firm procedures and providing them the freedom to providing the employees with firm procedures and providing them the freedom to inno
innovatvate and be e and be crecreatiative. ve. StaStandandards shords should be speciuld be specific enofic enough to offugh to offer usefer usefulul guid
guidelielinesnesyetgenerayetgenerallenoenoughughtotoalloallowwforforsomsomeefleflexibxibilitilityy..
Ke
Keepepononlylywhwhatatisisneneededededanandddidispspososeeofofwhwhatatisisnonot.t. Mai
Maintantaininordorderlerlineiness.ss.RemRemembemberer,,thetherereisisaaplaplaceceforforeveeverytrythinghing and
andeveeverytrythinhinggininitsitsplaplace.ce. Th
The e clcleaeanining ng prprococesess s ofofteten n acacts ts as as a a foform rm ofof inspection that can identify defects or abnormal conditions that can affect inspection that can identify defects or abnormal conditions that can affect quality.
quality.
Dev
Developelopsyssystemtemssandandproprocedcedureuresstotomaimaintantainin and
andmonmonitoitorrthethefirfirststthrthreeeerulrulesesstastatedabove.tedabove. Mai
Maintantainiining ng a a stastabilibilized zed worworkplkplace ace is is an an ongongoinoing g proprocescess s ofof continuous
continuousimprovement.improvement.
Adaptation of new technologies must support your people, process and values. It Adaptation of new technologies must support your people, process and values. It mus
musttnotnotdisdisplacplaceeororrepreplacethem. lacethem. IntIntrodroduceucenewnewtectechnohnologlogyyaftaftereritithashasbeebeenntestestedted and
andproprovenvenwiththewiththeinvinvolvolvemeementntofofaabrobroadadcross-cross-secsectiotionnofofyouyourrorgorganianizatzationion.. Before adopting any new technology, Toyota first analyzes the impact it might have Before adopting any new technology, Toyota first analyzes the impact it might have on existing processes. If it determines that the new technology adds value to the on existing processes. If it determines that the new technology adds value to the existing process, it analyzes it further to determine if it does not conflict with the existing process, it analyzes it further to determine if it does not conflict with the company's philosophy and operating principles. If it violates any of the principles, company's philosophy and operating principles. If it violates any of the principles, FiveS's for E
FiveS's for EliminationliminationofofWWasteaste 1
1. . SSorort.t. 2.
2. StStraraighteighten.n. 3.
3. ShiShine or clene or cleananlineliness.ss.
4.
4. StaStandardizndardizeeor or creacreateterules.rules. 5
5. . SuSustastain.in.
Principle 6: Standardized Task
Principle 6: Standardized Task
s are
s are
the Foundation for
the Foundation for
Continuous Improvement
Continuous Improvement
and Employee Empowerment
and Employee Empowerment
Principle 7: Use Visual Control So No Problems are Hidden
Principle 7: Use Visual Control So No Problems are Hidden
Principle 8: Use
Principle 8: Use
Only Reliable, Thoroughly
Only Reliable, Thoroughly
T
T
ested Tec
ested Tec
hnology that
hnology that
Serves Y
Serves Y
our
our
People and Process
People and Process
Pr
Pr
in
in
ci
ci
pl
pl
6:
6:
Sta
Sta
nd
nd
ar
ar
di
di
zed
zed
ask
ask
ar
ar
th
th
Fou
Fou
nd
nd
at
at
io
io
fo
fo
Con
Con
ti
ti
nu
nu
ou
ou
Imp
Imp
rov
rov
eme
eme
nt
nt
and
and
Empl
Empl
oye
oye
Empo
Empo
werm
werm
ent
ent
ri
ri
nc
nc
ip
ip
le
le
7:
7:
Us
Us
is
is
ua
ua
Co
Co
nt
nt
ro
ro
So
So
No
No
Pr
Pr
ob
ob
le
le
ms
ms
ar
ar
Hi
Hi
dd
dd
en
en
Pr
Pr
in
in
ci
ci
pl
pl
8:
8:
Use
Use
Onl
Onl
Rel
Rel
ia
ia
bl
bl
e,
e,
Th
Th
or
or
ou
ou
gh
gh
ly
ly
es
es
te
te
ech
ech
no
no
lo
lo
gy
gy
th
th
at
at
Se
Se
rv
rv
es
es
ou
ou
Pe
T
Toyotaoyotarejectrejectssthethenewnewtechnotechnologylogy.. The
The intintrodroductuction ion of of new new tectechnohnologlogy y is is dondone e thrthrougough h a a proprocescess s of of conconsensensussus,, analysis and planning involving the employees and all the stakeholders in the analysis and planning involving the employees and all the stakeholders in the process. This painstaking process results in the smooth implementation of the new process. This painstaking process results in the smooth implementation of the new techno
technologylogywithouwithouttemployemployeeeeresistanceresistanceandandproceprocessssdisrupdisruption.tion.
T
Toyota never “piroyota never “pirates” Presiates” Presidents or CEOs from other compandents or CEOs from other companies. ies. InsteInstead, thead, the com
companpany y looklooks s for its for its key leaderkey leaders s withwithin in the organthe organizatization ion - - in in salsales, produes, productct develop
development, manufactument, manufacturing ring and and designdesign. . TToyotaoyota's 's philosophilosophy phy of of promopromoting ting andand acq
acquiruiringingmidmid--tototop-letop-levelvelexeexecutcutiveivesswitwithinhinthethecomcompanpanyystestemsmsfrofrommthethecomcompanpany'sy's be
belielieffththatatththeyeyarareeelelimimininatatininggunevunevenennenessss( ( ))atatththeeexexececututiveleveivelevel.l. Ch
Chanangigingngththeecucultlturureeevereveryytitimemeaanenewwlealeadederrcocomemessininbrbriningsgssomesomecoconfnfususioionnininththee ra
ranknkssasassusuddddenenlyly,,emplemployoyeeeesshahavevetotoadadjusjustttotoneneww“r“rululeses”.”.ItItalalsosododoesesnonottdedeveveloplop any
anyrearealldepdepththororloyaltloyaltyyfrofrommthetheempemployloyeesees..
Toyota believes that the leaders within their organization must live and understand Toyota believes that the leaders within their organization must live and understand the
theTToyooyotataculculturtureeeveeverydrydayay. T. Theyheyalsalsooexpectexpectthetheirirlealeaderdersstototratraininsubsubordordinainatestesonon how
howtotoundunderserstantanddandandlivelivebybytheTtheToyooyotatawayway..
T
Toyota uses oyota uses a a diffdifferent motivaterent motivation theory ion theory to to motivmotivate and ate and inspirinspire e its employees toits employees to striv
striveeforforexcelleexcellence.nce.
of
of satsatisfisfyinying g lowlower er levlevel el neeneeds ds andand moving employees up the hierarchy towards self actualization. Toyota's moving employees up the hierarchy towards self actualization. Toyota's approach to good pay, job security and safe working conditions satisfy approach to good pay, job security and safe working conditions satisfy employ
employee ee needs. Tneeds. Toyotaoyota's 's culturculture e of of contincontinuous uous improimprovemenvement t supporsupportsts growt
growthhtowardtowardssselfselfactuaactualizatilization.on.
of
of elimineliminating ating “dissa“dissatisfitisfiers” ers” andand des
designigningingworworkktotocrecreateatepospositiitivevesatsatisfisfieriersswaswasthethebasbasisisofofdevdevelopelopingingthethe55 S's
S's, , ergergonoonomic mic proprogragrams, ms, visvisual ual manmanageagemenment t and and humhuman an resresourourcesces policies to address hygiene factors. Toyota's continuous improvement, job policies to address hygiene factors. Toyota's continuous improvement, job rot
rotatiationonandandbuibuilt-lt-ininfeefeeddbacbackksupsupportportmotmotivaivatortorssactactasaspospositiitivevesatsatisfisfieriers.s. calls to scientifically select and calls to scientifically select and design standardized jobs, as well as train and reward performance relative design standardized jobs, as well as train and reward performance relative to performance. Toyota follows all scientific management principles at the to performance. Toyota follows all scientific management principles at the gro
groupuplevelevellratratherherthathannindindividividualuallevelevellbasbasededononempemployloyeeeeinvinvolveolvemenment.t. Grow leaders from within the organization rather than getting them from Grow leaders from within the organization rather than getting them from outside.
outside.
Useand
Useandunderstaunderstandndmotivationmotivationtheorytheory..
1.
1. MaMaslow's Neeslow's Need Hierad Hierarchy theoryrchy theory
2.
2. HeHerzrzbeberg's rg's Job Job EnEnrichmerichment nt thetheoryory
3.
3. TTaylor's Scieaylor's Scientific Manantific Managemegement theorynt theory muri muri
Principle 9: Grow
Principle 9: Grow
Leaders Who Thoroughly Understand Y
Leaders Who Thoroughly Understand Y
our Work, Live the
our Work, Live the
Philosophy and Teach it to Others
Philosophy and Teach it to Others
Principle 10: Develop
Principle 10: Develop
Exceptional People Who Follow Your Company’s
Exceptional People Who Follow Your Company’s
Philosophy
Philosophy
Pr
Pr
in
in
ci
ci
pl
pl
9:
9:
Gro
Gro
Le
Le
ade
ade
rs
rs
Wh
Wh
Th
Th
or
or
ou
ou
gh
gh
ly
ly
Und
Und
ers
ers
ta
ta
nd
nd
ou
ou
or
or
k,
k,
Li
Li
ve
ve
th
th
Ph
Ph
il
il
os
os
op
op
hy
hy
an
an
ea
ea
ch
ch
it
it
to
to
Ot
Ot
he
he
rs
rs
Pr
Pr
in
in
ci
ci
pl
pl
10
10
Dev
Dev
el
el
op
op
Ex
Ex
ce
ce
pt
pt
io
io
na
na
Peo
Peo
pl
pl
Wh
Wh
Fo
Fo
ll
ll
ow
ow
ou
ou
Co
Co
mpa
mpa
ny
ny
Philosophy
4.
4. BehaBehavior vior ModificaModification tion theorytheory
5.
5. GoGoal Sal Setetting theting theoryory
T
Treareattpartnepartners ars andndsuppliers as asuppliers as annexteextensionnsionofofyour business.your business.
Think
Thinkandandspeaspeak k basebaseddononpersonally personally verifieverifieddinformationinformationandanddatadata..
The consensus process helps broaden the search for solutions and makes The consensus process helps broaden the search for solutions and makes impleme
implementationntationofofdecisions decisions moremorequickly.quickly.
calls for reinforcement of behavior
calls for reinforcement of behaviorTToyota'soyota's con
contintinuouuoussfloflowwcrecreateatessshoshorterterrleadleadtimtimesesforforraprapididfeefeedbadback.ck.ProProbleblemsmsareare add
addresressed sed quiquicklckly y and and lealeaderders s are are conconstastantlntly y on on the the flofloor or to to proprovidvidee reinforcement.
reinforcement.
calls for
calls for settisetting ng specifspecific, ic, measurmeasurable, achievableable, achievable challe
challenging goals. nging goals. TToyota sets goals that meet these standaoyota sets goals that meet these standards throughrds through (polic
(policyydevelodevelopmentpment).).
Toyota maintains the principle of partnership. The company views its suppliers as Toyota maintains the principle of partnership. The company views its suppliers as partners in the business. Just as Toyota challenges its people for excellence and partners in the business. Just as Toyota challenges its people for excellence and impro
improvemenvement,t,ititalsoalsochallenchallengesgesitsitssupplisuppliers.ers. Acc
Accordording ing to to the the autauthorhor, , supsuppliplier er devdevelopelopmenment t incincludludes es a a series series of of aggaggresressivsivee targets and challenges.
targets and challenges. Suppliers will want to work Suppliers will want to work with the company with the company because theybecause they know that they will improve themselves and develop respect among their peers and know that they will improve themselves and develop respect among their peers and other
othercustocustomers.mers.
Toyota always views new suppliers with caution, giving very small orders. However, Toyota always views new suppliers with caution, giving very small orders. However, on
onceceththeesusupppplielierreaearnrnssththeetrtrususttofofththeecompcompananyy,,ananddprprovovesesththatatththeyeyarareesisincncerereeinin the
theirircomcommitmitmenmentttotomeemeettTToyooyota'ta'ssstastandandardsrdsforforcoscost,t,quaqualitlityyandanddelideliververyy,,TToyooyotatawillwill ad
adopopttththememinintotoththeecompcompananyyananddteteacachhththememththeeTToyoyototaawayway..SuSuppppliliererrerelalatitiononshshipsips and partnerships are usually long term and it is seldom that a supplier is replaced and partnerships are usually long term and it is seldom that a supplier is replaced exc
excepteptfortheforthemosmosttegregiegregiousousbehbehavioaviorr..
Go and confirm the facts yours
Go and confirm the facts yourself. elf. RememRememberber, you are , you are resporesponsible for the repornsible for the reportsts and information you provide others. Solve problems and improve processes by and information you provide others. Solve problems and improve processes by going to the root or source and personally observing and verifying information and going to the root or source and personally observing and verifying information and data.
data. It
Itisisimimpoportrtananttnonotttotospspececululatateeononththeebabasisissofofwhwhatatyoyouuheheararddananddwhawhattototheherrpepeopoplele ha
havevetotoldldyoyou. u. WhWhenenyoyouugogoananddseseeeththiningsgsforforyoyoururseselflf,,yoyouuwiwillllhahaveveaabebetttterergrgrasaspp of
ofthethesitsituatuationion.. hoshin hoshinkanri kanri
Principle 11: Respect Y
Principle 11: Respect Y
our Extended Network
our Extended Network
of Partners and
of Partners and
Suppliers by
Suppliers by
Challenging Them and Helping Them Improve
Challenging Them and Helping Them Improve
Principle 12: Go and
Principle 12: Go and
See For Y
See For Y
ourself to Thoroughly Understand the Situation
ourself to Thoroughly Understand the Situation
(
(
Genchi Genbutsu
Genchi Genbutsu
)
)
Principle 13: Make Decis
Principle 13: Make Decis
ions Slowly by Consensus, Thoroughly Conside
ions Slowly by Consensus, Thoroughly Conside
ring
ring
All
All
Options; Implementing Decisions Rapidly
Options; Implementing Decisions Rapidly
Pri
Pri
nci
nci
pl
pl
1:
1:
Re
Re
sp
sp
ect
ect
ou
ou
Ex
Ex
te
te
nd
nd
ed
ed
Net
Net
wor
wor
of
of
Par
Par
tn
tn
ers
ers
an
an
Sup
Sup
pl
pl
ie
ie
rs
rs
by
by
Ch
Ch
al
al
le
le
ng
ng
in
in
Th
Th
em
em
an
an
Hel
Hel
pi
pi
ng
ng
Th
Th
em
em
Imp
Imp
ro
ro
ve
ve
Pri
Pri
nc
nc
ip
ip
le
le
12
12
Go
Go
an
an
See
See
For
For
ou
ou
rs
rs
el
el
to
to
Th
Th
or
or
ou
ou
gh
gh
ly
ly
Und
Und
er
er
st
st
an
an
th
th
Sit
Sit
uat
uat
io
io
nchi
nchi
Ge
Ge
nbuts
nbuts
Pri
Pri
nci
nci
pl
pl
13
13
Mak
Mak
Dec
Dec
is
is
io
io
ns
ns
Sl
Sl
owl
owl
by
by
Co
Co
ns
ns
en
en
su
su
s,
s,
Th
Th
or
or
ou
ou
gh
gh
ly
ly
Con
Con
si
si
de
de
ri
ri
ng
ng
All
All
Opti
For
ForTToyota, how one arrives at the decision is equally important as the quality of theoyota, how one arrives at the decision is equally important as the quality of the decisi
decision. Do on. Do not hastily make a not hastily make a decisiodecision without covering all n without covering all the facts, alternathe facts, alternativestives an
anddcoconsnsulultitingngwitwithhthethepepeopoplelewhowhowilwilllbebeafaffefectctededwiwiththththeeououtctcomomeeofofththeededecicisisionon.. When you have picked a solution or alternative, go down the path quickly but When you have picked a solution or alternative, go down the path quickly but cautiously.
cautiously.
Consultation can make acceptance of the solution easier and implementation of the Consultation can make acceptance of the solution easier and implementation of the pro
procescesssmormoreesmosmoothothlyly..TToyooyota'ta'ssexcexcelleellencenceisisininthethedetdetailsails..TheThecomcompanpanyyconconsidsidersers all
allelemelemententss(co(cost,qualityst,quality,,proprobleblems,solutims,solutionsonsandandstastakehkeholdoldersers))ininthetheproprocescess.s.
1.
1. FiFindndininggououttwhwhatatisisrereallallyygogoininggonon.. 2.
2. UndUnderserstantandindinggthethecaucausessesofofthetheproprobleblem.Askinm.Askingg“wh“why”y”fivfiveetimtimes.es. 3.
3. BrBroaoadly dly coconsnsididererining g alalteternrnatativive e solutsolutioions ns anand d dedeveveloplopining g a a dedetataileiledd rat
rationaionaleleforfortheprefethepreferrerreddororseleselectecteddsolsolutiution.on. 4.
4. BuiBuildinldinggconconsensensussuswitwithhthetheteateam,m,empemployloyeeseesandandsupsuppliepliers.rs. 5.
5. Using efUsing effectfective and efive and efficienficient commut communicatnication channion channels to conels to convey stepvey steps ones one to
tofourfour..
Es
Estatablblish ish a a prprococesess s fofor r cocontntinuinuouous s momonitnitororing ing anand d cocontntininuouuouss improvement. Once you have set-up a standard and stable process, use improvement. Once you have set-up a standard and stable process, use continuous improvement tools (such as the balance score card) to find the continuous improvement tools (such as the balance score card) to find the roo
roottcaucauseseofofineinefffficiiciencenciesiesandandapplyapplyeffeffectectiveivecountecounterrmeameasursures.es. Create a process that requires the least (or if possible, zero) inventory Create a process that requires the least (or if possible, zero) inventory..ThisThis wil
willlmakmakeewaswastedtimetedtimeandandresresourourcesceseaseasieriertotospospottandandcorcorrecrect.t. Pro
Protectect t indindustustriarial l knoknowledwledge ge by by devdeveloeloping ping stastable ble empemployloyeesees, , slowslow pro
promotmotion,continion,continuouuousslealearnirning,ng,andandaaververyycarcarefuefullsucsuccescessiosionnsyssystemtem..TrTrainain emp
employloyeeseestotobecbecomeomelealeaderderssandandefeffecfectivtivelyelyhanhandledleworwork.k.ProPromotmoteepeopeopleple within
withinthetheorganiorganizationzation.. Sta
Standandardirdizezethethebesbesttproprocescessswitwithheaceachhnewnewproprojecjecttandandeacheachnewnewmanmanageagerr..
De
Detetermrminineeththeeststarartitingngpopointintorortrtrigiggegerrananddththeefifinanall deliver
deliverableableproduproductsctstotothethecustomcustomerer..
Set measurable objectives for the team to achieve. The Set measurable objectives for the team to achieve. The go
goalalssmumuststbebealaligigneneddwiwiththththeecocompmpananyycucultlturureeananddshshououldldbebesesetttotorereduducece leadtime,
leadtime,impimprovroveequaqualitlityyandandredreduceucecoscost.t. Hav
Haveeaateteamamofof33toto44papartrticicipipanantstswawalklk The 5 major elements to thoroughly consider in the decision making process The 5 major elements to thoroughly consider in the decision making process are:
are:
De
DevelopingvelopingandandImpleImplementingmentingValueStreaValueStream Maps throughm Maps throughKaizKaizenenWWorkshopsorkshops Pha
Phasese1:1:PrePreparaparation for tion for thetheWWorkshoporkshop
· · · · · · · · 1.
1. ClCleaearlrlyydedefifinenethethescscopope.e. 2.
2. SeSet obt objejectictiveves.s.
3.
3. CreCreateatepreprelimiliminarnaryycurcurrenrenttstastatetemapmap..
Principle 14: Become a
Principle 14: Become a
Learning Organization Through Relentless Reflection
Learning Organization Through Relentless Reflection
(
(
H
H
a
a
n
n
s
s
e
e
i
i
)
)
a
a
n
n
d
d
C
C
o
o
n
n
t
t
i
i
n
n
u
u
o
o
u
u
s
s
I
I
m
m
p
p
r
r
o
o
v
v
e
e
m
m
e
e
n
n
t
t
(
(
K
K
a
a
i
i
z
z
e
e
n
n
)
)
Using the Toyota Way to Transform Technical and Service Organizations
Using the Toyota Way to Transform Technical and Service Organizations
Applying the Toyota Way in Your Organization
Applying the Toyota Way in Your Organization
Pri
Pri
nc
nc
ip
ip
le
le
14
14
Bec
Bec
ome
ome
Le
Le
arn
arn
in
in
Or
Or
ga
ga
ni
ni
zat
zat
io
io
Th
Th
ro
ro
ug
ug
Rel
Rel
ent
ent
le
le
ss
ss
Ref
Ref
le
le
ct
ct
io
io
) a
) a
d C
d C
s I
s I
t (
t (
si
si
ng
ng
th
th
oy
oy
ot
ot
ay
ay
to
to
ra
ra
ns
ns
fo
fo
rm
rm
ech
ech
ni
ni
cal
cal
an
an
Ser
Ser
vi
vi
ce
ce
Or
Or
ga
ga
ni
ni
za
za
ti
ti
on
on
ppl
th
throrougughhththeecucurrrrenenttprprococesess.Ts.Takakeenonoteteofofththeetitimemeitittatakekesstotopeperfrforormmththeetatasksk and the wait times between processes. This is the most crucial of the and the wait times between processes. This is the most crucial of the pre-wor
workkactactivitivitiesiesasasititsavsavesesvalvaluabuableleworworkshkshopoptimtime.e. Asi
Asidedefrofrommcolcolleclectintinggthethepreprelimliminarinaryycurcurrenrentt state map, the team should also collect samples of forms and documents state map, the team should also collect samples of forms and documents use
used d at at eaceach h stestep. p. CopCopies of ies of all standall standard proceard procedurdures es musmust t be be madmadee availa
availablebleduringduringthetheworksworkshop.hop.
Have the team identify the c
Have the team identify the customerustomers needs and thes needs and the pro
procescessessesthathattsupsupportportororaddaddvalvalue.ue.
Analyze process steps and process flow. Identify Analyze process steps and process flow. Identify valu
valueeaddaddededandandnonnon-va-valuelueaddaddedediteitems.Eliminms.Eliminateatethenon-vathenon-valuelueaddadd.. Brainstorm and have participants write down Brainstorm and have participants write down their ideas. Team should evaluate each idea and see which can help in their ideas. Team should evaluate each idea and see which can help in achiev
achievinginggoals.goals. Dev
Developaelopatratraininininggandandcomcommunmunicaicatiotionnplanplan..
Measure performance by establishing process metrics to visually Measure performance by establishing process metrics to visually track
trackprogrprogressessandandforforcontincontinuousuousimproimprovementvement..
. .
1.
1. StaStart with actiort with action n in the in the tectechnihnical systcal system; follem; followeowed d quicquickly with cultukly with culturalral change.
change. 2.
2. LeLeararnnbybydodoingfiringfirststandandtrtrainainininggsesecocondnd.. 3.
3. StaStart with thrt with the value stee value steam piloam pilots to demots to demonstnstratrate lean as a e lean as a syssystem andtem and pro
providvideeaa“go“goseesee””modmodel.el. 4.
4. UsUseevavalulueeststrereamammamappppininggtotodedeveveloloppfufututurereststatateevivisisiononssananddhehelplp“l“leaearnrntoto see”.
see”. 5.
5. UsUseeKaKaizizenenwoworkrkshshopopsstototeacteachhananddmamakekerarapipiddchchanangeges.s. 6.
6. OrOrgaganiznizeeovoverervavaluestrluestreaeamsms.. 7.
7. MaMakekeititmamandndatatororyy.. 8.
8. A crA crisis may pisis may prompt a lerompt a lean moveman movement, but ment, but may not be necay not be necessaressary to turn ay to turn a compa
companynyaroundaround.. 9.
9. BeBeoppopportortuniunisticsticininideidentintifyifyingngoppopportortuniunitietiessforbigforbigfinancfinancialialimpimpactacts.s. 10.
10. ReaRealiglignnmetmetricricsswitwithhvalvalueuestrstreameamssperperspespectictive.ve. 1
11. 1. BuBuililddononyoyoururcocompmpananyyssroroototsstotodedeveveloloppyouryourowownnwawayy.. 12.
12. HirHireeorordevdeveloeloppleanleaderleanleaderssandanddevdeveloeloppaasucsuccescessiosionnsyssystemtem.. 13. Use
13. Useexpexpertertssforteachforteachingingandandgetgettintinggquiquickckresresultults.s. 4.
4. CoCollellectctalalllrelevrelevananttdodocucumementsnts..
5.
5. PoPoststaaprprelelimiiminanarycurrrycurrenenttststatemapatemapinintheteamroomtheteamroom..
1.
1. Who Who is is the the cuscustometomer? r? 2.
2. AnaAnalyzlyze e curcurrenrent st statetate.. 3.
3. DevDeveloelop fup futurture ste state ate visvisionion..
4.
4. ImpImplemelementatntationion.. 5.
5. EvEvalaluauatete..
1.
1. ReReviviewewththeestastatutussofofththeeopopenenacactitiononiteitemsmsfrfromomthetheprprojojececttplplan an 2.
2. RevReviewiewproprocescesssmetrmetricsicstotoensensureureimprimproveovemenmentstsarearebeibeingngachachievieved.ed. 3.
3. DisDiscuscusssaddadditioitionalnaloppopportortuniunitiesfortiesforimprimproveovementments.s. 4.
4. CoContntinuinueetotoimimprprovoveeththeeprprococesess.s. Pha
Phasese2:2:TheKaizeTheKaizennWWorkshoporkshop
Ph
Phasasee3:3:AfteAfter r theworkshoptheworkshop--StStaiainingningananddCoContinuountinuoussIImprovmprovememenent.t.
13Tips for T
13Tips for TransitioningransitioningYYour Compaour Company tony toaaLeaLeannEnteEnterpriserprise
' ' ' '
[
[
9
9
]
]
ABOUTABOUT BUSINESSSUMMABUSINESSSUMMARIESRIES BusinessSummaries.com is BusinessSummaries.com is a business book sua business book summaries service. mmaries service. Every week, it sendsEvery week, it sends
outto
outtosubsubscrscribeibersarsa9-9-toto12-12-pagpageesumsummarmaryyofofaabesbest-st-sellellingbusiningbusinessbookchoseessbookchosennfrofrommamoamongngthehundrthehundredsofedsofboobooksprinteksprintedd
o
ouut i n tt i n thhe U ne U niitteed S td S taattees e vs e veerry w ey w eeekk. . FFoor m or m orre i ne i nffoorrmmaattiioonn, p l, p leeaasse g o te g o to o http://www.bizsum.comhttp://www.bizsum.com..
Build Y
Build Y
our Own
our Own
Lean Learning
Lean Learning
Enterprise, Borrowing
Enterprise, Borrowing
from the
from the
Toy
Toy
ota Wa
ota Wa
y
y
ABOUT
ABOUTBUSINESSSBUSINESSSUMMARIESUMMARIES
