Executive Book Summary - The Toyota Way

THE TOYOTA WAY 14M 14 Man anag agem emen entt Prin Principle ciples s from fromthe theW World’s orld’sG Grea reates testt Man anufa ufactu cturer  rer 

 Author: Je Jeffre ffrey y K. Lik Liker  er  Publisher: McG cGraw rawHill Hill Date Da te of Publication: 2003 ISBN: 0071392319 Number of Pages: 330 pages

About Abo ut the Auth Author or

The Big Idea '

Toy oyot ota a fi firs rstt ca caug ught ht th the e wo worl rld d s at atte tent ntio ion n in th the e 19 1980 80s s whe when n consum con sumers ers sta starte rted d not notici icing ng tha thatt Toyo oyota ta car cars s las lasted ted lon longer ger and required fewer repairs than American cars. Today, the company is the wor world ld s mos mostt pro profit fitabl able e car man manufa ufactu cturer rer,, con consis sisten tently tly pro produc ducing ing high hi gh-q -qua ualit lity y ca cars rs us usin ing g fe fewer wer ma man n ho hour urs s an and d les less s on on-h -han and d invent inv entori ories. es. To thi this s day day,, Toyo oyota ta con contin tinues ues to rai raise se the bar for manufactur manuf acturing, ing, produ production ction develo development pment and proce process ss excell excellence. ence. '

JeffreyLiker 

Dr. Jeffrey K. Liker is Pro Profes fessor sor of  Industrial and Operations Engineering at the University of Mic Michigan  higan . He is the D ir ire ct ct or or o f t he he Japan Te Technol chnology  ogy  (JTMP) P) and coManagement Mana gement Program  (JTM Direct Dir ector or of the lea lean n man manufa ufactu cturin ring g program progr am at the University University of Michi Michigan gan that offer offers s a 10-da 10-day y leanmanufactu leanmanufacturing ring certificate and a five-day lean product development certificate. Dr. Liker has auth au thor ored ed or coco-au auth thor ored ed ov over er 65 articl art icles es and boo book k cha chapte pters rs and fiv five e b oo oo ks ks . H e i s a ls ls o t he he E di di to to r o f   Becoming Bec oming Lea Lean: n: Experiences of U.S. (Productivity ctivity Press, Manufacturers  (Produ 1997), winner of the 1998 Shingo prize (forr ex (fo excel cellen lence ce in man manufa ufactu cturin ring g resear res earch) ch).. He is act active ive as a key keynot note e speaker speak er,, speak speaker er for exec executiv utive e retr retreats, eats, and lean consultant, independently and throug thr ough h a com compan pany y he cof cofoun ounded ded -Optiprise, Optipr ise, Inc. Recent clien clients ts inclu include de G.M.., Fo G.M Ford, rd, Int Intier ier, PPG Ind Indust ustrie ries, s, Johnson Johns on Contr Controls, ols, Tenne enneco co Auto Automotiv motive, e, Framatome Fram atome Techn echnologi ologies, es, North Northrop rop Grumman Grumm an Ship Syst Systems, ems, Jacks Jacksonvi onville lle Naval Air Depot, and Portsmouth Naval ShipYard.

The Toyota Way  explains the management principle and business philosophy behind Toyota Toyota s success. It narrates Toyota s approach to Lean Production (known as the Toyota Production System) and the 14 principles that drive Toyota towards quality and excellence. The book also explains how you can adopt the same principles to improv imp rove e you yourr bus busines iness s pro proces cesses ses,, whil while e cut cuttin ting g down on ope operat rations ions and produc production tion costs costs.. '

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The World Class Power of the Toyota Way The Toyota Way: Way: Using Operational Excellence as a Strategic Weapon TheToyotaProduction Syste System m (TP (TPS)and S)and Lea Lean n Production Toyota invented Lea Lean n Production in the 1940s and 50s. The company focused on eliminating wasted time and material from ever ev ery y st step ep of th the e pr prod oduc ucti tion on pr proc oces ess s (f (fro rom m ra raw w ma mate teri rials als to fi finis nishe hed d goods). Published Publ ished by Busin BusinessSu essSummari mmaries, es, Building 3005 Unit 258, 4440 NW 73rd Ave, Miami, Florida 33166   ©2003 BusinessSummaries es All rights reserved. No part of this summary may be reproduced or transmitted in an any y fo form rm or by an any y me mean ans, s, el elec ectr tron onic ic,, ph phot otoc ocop opyi ying ng,, or ot othe herw rwis ise, e, wi witho thout ut pr prio iorr no notic tice e of BusinessSummaries.com

The Th e Toyota Way by byJef Jeffrey freyK.L K.Liker 

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 production produ ction by: Eliminating Elimina ting wasted wastedtime time and resou resources. rces. Building Buildin g qualit quality y into workpl workplace ace syste systems. ms. Finding Find ing lowlow-cos costt and yet rel reliab iable le alt altern ernati atives ves to exp expens ensive ive new tec techno hnology logy.. Perfecting Perfe cting busines business s proce processes. sses. Building Buildin g a learni learning ng cultu culture re for contin continuous uous impro improvemen vement. t. · · · · ·

The “4P” Model of the Toyota Way

Continuously Continuo usly So Solving lving Root Ro ot Prob Problem lems s Drive Drives s Organiza Org anizational tional Lea Learning rning Add ddV Valu alue e to the theO Orga rganiza nization tion by Develop De veloping ing Your Pe People opleand andPa Partners rtners The Th e Rig Right ht Pro Proce cess ss Will Pro Produ duce cethe theR Righ ightt Res esults ults Philoso Ph ilosoph phy: y: Lo Long ngterm termthin thinking king

How Toyota Became the World’s Best Manufacturer Toyota developed the Toyota Production System (TPS) after World War II. While Ford and GM used mass production and economies of scale, Toyota faced very differ dif ferent ent bus busine iness ss con condit ditions ions.. Toyo oyota' ta's s mar market ket was ver very y sma smallll but it had to pro produc duce ea variety of vehicles on the same assembly line to satisfy customers. The solution: making mak ing the ope operat ration ions s fle flexib xible. le. This This res result ulted ed in the bir birth th of TPS TPS.. TPS borrowed some of its ideas from the the United States. The core idea of the Just in  Time Tim e (JI (JIT) T) sys system  tem cam came e fro from m the con concep ceptt of the “pu “pullll-sys system tem”, ”, whi which ch was insp inspire ired d by the American supermarkets. In the pull system, individual items are replenished as each ea ch it item em be begi gins ns to ru run n lo low w on th the e sh shelf elf.. Applied Appli ed to Toy oyot ota, a, it me mean ans s th that at th the e fi firs rstt st step ep in th the e pr proc oces ess s is no nott co comp mple lete ted d un unti till th the e second step uses the materials or supplies from from Step 1. At Toyota, every step of the manu ma nufa fact ctur urin ing g pr proc oces ess s us uses es Kanban  to si sign gnal al to th the e pr prev eviou ious s st step ep wh when en it its s pa part rt needs nee ds to be rep replen lenish ished. ed. The com compan pany y was als also o ins inspir pired ed by W. Edwa Edwards rds Dem Deming.Asid ing.Aside e fro from m bro broadly adly def defini ining ng customers to include internal and external clients, he also encouraged Toyota to

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The Th e Toyota Way by byJef Jeffrey freyK.L K.Liker 

adopt a syste systematic matic approach approach to problem solving, which became a corne cornerston rstone e for cont co ntin inuo uousim usimpr prov ovem emen entt (k (kno nownas wnas Kaizen )

The Heart of the Toyota Production System: Eliminating Waste Waste The point of the TPS is to minimize time spent on non-value adding activities by positi pos itionin oning g the mat materi erials als and too tools ls as clo close se as pos possibl sible e to the poi point nt of ass assemb embly ly.. The Ma Major jor types of non-value non-value adding waste waste in business or production process are: 1. Ove Overpr rprodu oducti ction. on. 2. Wai aiti tingor ngor ti timeon meon ha hand nd.. 3. Unn Unnece ecessa ssary ry tra transp nsportor ortor con convey veyanc ance. e. 4. Ove Overr pro proces cessin sing g or inc incorr orrect ect pro proces cessin sing. g. 5. Exc Excess ess inve invento ntory ry.. 6. Unn Unnece ecessa ssary ry mov moveme ement. nt. 7. De Defe fect cts. s. 8. Unu Unused sed emp employ loyee ee cre creati ativit vity y.

The Business Principles of the Toyota Toyota Way Principle 1: Base your management decision on a long-term philosophy, philosophy, even at the expense of short-term financial goals The Toyota messa message ge is consis consistent tent:: Do therigh therightt thi thing ng forthe co comp mpan any y, itsempl itsemploy oyee ees, s, the customer and the society as a whole. This long-term philosophy is the guiding post of the company in its continuous quest to offer the best in quality and service to its custo customers, mers, employ employees ees and stock stockholder holders. s. Long-term Long-te rm goa goall should supe superse rsede de shortshort-te term rm de decision cision ma making king or goa goals ls . Develop,, work, grow and align the compa Develop company ny towards a commo common n goal that is bigger than tha n mak making ing mon money ey.. Your phi philoso losophi phical cal mis missio sion n is and sho should uld be the fou founda ndatio tion n of all your other otherprinci principles. ples. Toyo oyota ta is alig aligned ned aro around und sat satisf isfying ying the cus custom tomer er.. It beli believe eves s tha thatt a sat satisf isfied ied cus custom tomer er comes back and gives more business through referrals. It generates value for the customer custo mer,, the societ society y and the econom economy y. One of the keys to success of Toyota is that it lives by the philosophy of self reliance and an d a “l “let et's 's do it ou ours rsel elve ves” s” at atti titu tude de.. Th This is ca can n be be best st ill illus ustr trat ated ed wh when en it ve vent ntur ured ed in into to 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 and und unders erstan tand d theessenc theessence e of a lux luxury ury car car..

Principle 2: Create continuous process flow to bring problems to the surface 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

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The Th e Toyota Way by byJef Jeffrey freyK.L K.Liker 

plant space. Toyota's lean production system has redesigned the work process to move both mater materials ials and infor informatio mation n faste faster. r. To op opti timi mize ze th the e fl flow ow of ma mate teri rials als so th that at it wo woul uld d mo move ve qu quick ickly ly,, Toy oyot ota a re redu duce ced d ba batc tch h 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 that th at if a pr prob oble lem m su surf rfac aced ed,, it ca can n be so solv lved ed ri righ ghtt aw away ay.. Benefits of the oneBenefits one-piece piece/continuous /continuous process flow 1. Bu Build ilds s in qu qual alit ity y. 2. Cre Create ates s rea reall fle flexib xibilit ility y. 3. Cre Create ates s hig higher her pro produc ductiv tivity ity.. 4. Fr Free ees s up fl floo oorr sp spac ace. e. 5. Imp Improv roves es saf safety ety.. 6. Imp Improv roves es mor moral. al. 7. Red Reduce uces s cos costt of inv invent entory ory..

Principle 3: Use the “Pull-System” to Avoid Over Production The pull-system hinges on the idea of restocking inventory based on the day-to day dema de mand nd of th the e cu cust stom omer ers s ra rath ther er th than an on a fi fixe xed d sc sche hedu dule le or sy syst stem em.. Th This is ca calls lls fo forr a flexib fle xible le sys systemthat temthat rel relies ies on con consum sumer er dem demand and.. 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 minimizes work in process and warehousing of inventory. You only stock small amounts of each product and frequently replenish based on what the customer actually actua lly takes away away..

Prin Pr inci cipl plee 4: Le Leve vell ou outt th thee Wor orkl kloa oadd ( heijunka ) A str strict ict bui buildld-toto-ord order er sys system tem buil builds ds a lot of inv invent entory ory,, ove over-h r-head ead cos cost, t, poo poorer rer pro produc ductt and ser servic vice e qua qualit lity y and hid hidden den pro proble blems. ms. To elim eliminat inate e thi this s pro proble blem, m, Toyo oyota ta cam came e up with wit h a sch scheme eme of lev levelin eling g out theproduc theproductio tion n sch schedu edule. le. 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. Rath Ra ther er,, it ta take kes s th the e to tota tall vo volu lume me of or orde ders rs in a pe peri riod od an and d le leve vels ls th them em ou out.This t.This re resu sult lts s to ha havi ving ng th the e sa sameamou meamountand ntand mi mix x ma made de ea each ch da day y Benefits of a Leve Benefits Leveling ling Sche Schedule dule 1. Fle Flexi xibi bilit lity y tomakewhatthe cu cust stom omer er wa want nts s wh when en th they ey wa want nt it it.. 2. Re Redu duce ced d ri risk sk of un unso sold ld go good ods. s. 3. Ba Balan lance ced d us used ed of la labo borr an and d go good ods. s.

Principle 5: Build a Culture of Shopping to Fix the Problem, to Get the Quality Right the First Time [ 4]

The Th e Toyota Way by byJef Jeffrey freyK.L K.Liker 

Quality Qualit y for the cus custom tomers ers sho should uld be the dri drivin ving g for force ce beh behind ind any com compan pany's y's philos phi losoph ophy y. Qua Quality lity sho should uld be bui built lt in you yourr com compan pany y and your your pro produc ductio tion n processe processes. s. Buildin Bui lding g an Ear Early ly Warn arning ing Dev Device ice int into o you yourr lineor equ equipm ipment ent pre preven vents ts pro problem blems s fro from m being bein g pas passed sed dow down n the lin line. e. This red reduce uces s cos costs ts and is mor more e eff effect ective ive tha than n ins inspec pectin ting g and rep repair airing ing qua qualit lity y pro problem blems s aft after er the fac fact. t. 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 down work when a problem is detected and getting the quality right enhances produc pro ductiv tivity ity and pro profit fitabi abilityin lityin thelong run run..

Principle 6: Standardized Tasks Tasks are the Foundation for Continuous Improvement and Employee Empowerment Standardization Standardiza tion is the founda foundation tion for contin continuous uous impro improvemen vement, t, innova innovation, tion, growth and qua quality lity.. It is imp imposs ossible ible to enh enhanc ance e any pro proces cess s unt untilil it is sta standa ndardi rdized zed.. Qual Quality ity is likewise likewis e guaran guaranteed teed through standard procedures procedures to ensur ensure e consis consistency tency in the process proce ss and produc product. t. When implementing standardization, it is important to strike a balance between providing the employees with firm procedures and providing them the freedom to innovat inno vate e and be cre creati ative. ve. Sta Standa ndards rds should should be specific specific enough enough to offer offer useful useful guideli guid elines nes yetgenera yetgenerall eno enough ugh to allo allow w for som some e fle flexib xibilit ility y.

Principle 7: Use Visual Control So No Problems are Hidden FiveS's for Elimination Elimination of Waste 1. Sor ort. t. Ke Keep ep on only ly wh what at is ne need eded ed an and d di disp spos ose e of wh what at is no not. t. 2. St Stra raighte ighten. n. Mai Mainta ntain in ord orderl erline iness. ss. Rem Rememb ember er,, the there re is a pla place ce for eve everyt rything hing and eve everyt rythin hing g in its pla place. ce. 3. Shi Shine ne or clean cleanline liness. ss. Th The e cl clea eani ning ng pr proc oces ess s of ofte ten n ac acts ts as a fo form rm of inspection that can identify defects or abnormal conditions that can affect quality. 4. Sta Standardiz ndardize e or crea create te rules. Dev Develop elop sys system tems s and pro proced cedure ures s to mai mainta ntain in and mon monito itorr the fir first st thr three ee rul rules es sta statedabove. tedabove. 5. Su Susta stain. in. Mai Mainta ntaini ining ng a sta stabili bilized zed wor workpl kplace ace is an ong ongoin oing g pro proces cess s of continuous improvement.

Principle 8: Use Only Reliable, Thoroughly Tested Technology Technology that Serves Your Your People and Process Adaptation of new technologies must support your people, process and values. It mustt not dis mus displac place e or rep replacethem. lacethem. Int Introd roduce uce new tec techno hnolog logy y aft after er it has bee been n tes tested ted and pro proven ven withthe inv involv olveme ement nt of a bro broad ad cro crossss-sec sectio tion n of you yourr org organi anizat zation ion.. 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 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,

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The Th e Toyota Way by byJef Jeffrey freyK.L K.Liker 

Toyota reject rejects s the new techno technology logy.. The int introd roduct uction ion of new tec techno hnolog logy y is don done e thr throug ough h a pro proces cess s of con consen sensus sus,, analysis and planning involving the employees and all the stakeholders in the process. This painstaking process results in the smooth implementation of the new technology techno logy withou withoutt employ employee ee resis resistance tance and proce process ss disrup disruption. tion.

Principle 9: Grow Leaders Who Thoroughly Understand Your Your Work, Live the Philosophy and Teach it to Others Grow leaders from within the organization rather than getting them from outside. Toyota never “pirates” “pirates” Presidents Presidents or CEOs from other companies. companies. Inste Instead, ad, the compan com pany y look looks s for its key leaders leaders with within in the organizat organization ion - in sal sales, es, product product development, develop ment, manufacturing manufacturing and design design.. Toyota oyota's 's philoso philosophy phy of promo promoting ting and acquir acq uiring ing mid mid-- to top top-le -level vel exe execut cutive ives s wit within hin the com compan pany y ste stems ms fro from m the com compan pany's y's belie be lieff th that at th they ey ar are e el elim imin inat atin ing g un unev even enne ness ss ( muri ) at th the e ex exec ecut utiveleve ivelevel. l. Chan Ch angi ging ng th the e cu cult ltur ure e ev ever ery y ti time me a ne new w lea leade derr co come mes s in br brin ings gs so some me co conf nfus usio ion n in th the e ranks rank s as su sudd dden enly ly,, em empl ploy oyee ees s ha have ve to ad adjus justt to ne new w “r “rul ules es”. ”. It al also so do does es no nott de deve velop lop any rea reall dep depth th or loy loyalt alty y fro from m the emp employ loyees ees.. Toyota believes that the leaders within their organization must live and understand the Toyo oyota ta cul cultur ture e eve everyd ryday ay.. They They als also o exp expect ect the their ir lea leader ders s to tra train in sub subord ordina inates tes on how to und unders erstan tand d and liv live e by theT theToyo oyota ta way way..

Principle 10: Develop Exceptional People Who Follow Your Company’s Philosophy Useand understa understand nd motivation theory theory.. Toyota uses a diff different erent motivation motivation theory to motiv motivate ate and inspir inspire e its employees to strive striv e for excelle excellence. nce. 1. Maslow's Maslow's Need Need Hierarchy Hierarchy theory of sat satisf isfyin ying g low lower er lev level el nee needs ds and moving employees up the hierarchy towards self actualization. Toyota's approach to good pay, job security and safe working conditions satisfy employee employ ee needs. Toyota Toyota's 's cultur culture e of contin continuous uous impro improvemen vementt suppor supports ts growth growt h toward towards s self actua actualizati lization. on. 2. Herz Herzbe berg's rg's Job En Enrichme richment nt the theory ory of elimin eliminating ating “dissa “dissatisfi tisfiers” ers” and design des igning ing wor work k to cre create ate pos positi itive ve sat satisf isfier iers s was the bas basis is of dev develop eloping ing the 5 S's,, erg S's ergono onomic mic pro progra grams, ms, vis visual ual man manage agemen mentt and hum human an res resour ources ces policies to address hygiene factors. Toyota's continuous improvement, job rotati rot ation on and bui builtlt-in in fee feed d bac back k sup suppor portt mot motiva ivator tors s act as pos positi itive ve sat satisf isfier iers. s. 3. Taylor's Scientific Scientific Manageme Management nt theory calls to scientifically select and design standardized jobs, as well as train and reward performance relative to performance. Toyota follows all scientific management principles at the group gro up leve levell rat rather her tha than n ind individ ividual ual leve levell bas based ed on emp employ loyee ee inv involve olvemen ment. t.

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The Th e Toyota Way by byJef Jeffrey freyK.L K.Liker 

4. Behavior Behavior Modifica Modification tion theory calls for reinforcement of behavior Toyota's contin con tinuou uous s flo flow w cre create ates s sho shorte rterr lea lead d tim times es for rap rapid id fee feedba dback. ck. Pro Proble blems ms are addres add ressed sed qui quickl ckly y and lea leader ders s are con consta stantl ntly y on the flo floor or to pro provid vide e reinforcement. 5. Goal Goal Set Setting ting theory theory calls for setti setting ng specif specific, ic, measur measurable, able, achievable challenging challe nging goals. Toyota sets goals that meet these standards standards through hoshin kanri (polic (policy y develo development pment). ).

Principle 11: Respect Your Your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve Trea reatt partne partners rs and and suppliers as as an an exte extension nsion of your business. 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 improvemen impro vement, t, it also challen challenges ges its suppli suppliers. ers. According Accord ing to the aut author hor,, sup suppli plier er dev develop elopmen mentt inc includ ludes es a ser series ies of agg aggres ressiv sive e targets and challenges. Suppliers will want to work with the company because they know that they will improve themselves and develop respect among their peers and othercusto other customers. mers. Toyota always views new suppliers with caution, giving very small orders. However, once on ce th the e su supp pplie lierr ea earn rns s th the e tr trus ustt of th the e co comp mpan any y, an and d pr prov oves es th that at th they ey ar are e si sinc ncer ere e in their the ir com commit mitmen mentt to mee meett Toyo oyota' ta's s sta standa ndards rds for cos cost, t, qua qualit lity y and deli deliver very y, Toyo oyota ta will adop ad optt th them em in into to th the e co comp mpan any y an and d te teac ach h th them em th the e Toy oyot ota a way way.. Su Supp ppli lier er re rela lati tion onsh ships ips and partnerships are usually long term and it is seldom that a supplier is replaced except exc ept forthe mos mostt egr egregi egious ous beh behavio aviorr.

Principle 12: Go and See For Yourself Yourself to Thoroughly Understand the Situation (Genchi Genbutsu ) Think and spea speak k base based d on persona personally lly verifie verified d information and data data.. Go and confirm the facts yourself. yourself. Remem Remember ber,, you are respo responsible nsible for the reports reports and information you provide others. Solve problems and improve processes by going to the root or source and personally observing and verifying information and data. It is im impo port rtan antt no nott to sp spec ecul ulat ate e on th the e ba basi sis s of wh what at yo you u he hear ard d an and d wha whatt ot othe herr pe peop ople le have ha ve to told ld yo you. u. Wh When en yo you u go an and d se see e th thin ings gs fo forr yo your urse self lf,, yo you u wi will ll ha have ve a be bett tter er gr gras asp p of the sit situat uation ion..

Principle 13: Make Decisions Decisions Slowly by Consensus, Thoroughly Considering Considering All Options; Implementing Decisions Rapidly The consensus process helps broaden the search for solutions and makes implementation impleme ntation of decisions more quickly.

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The Th e Toyota Way by byJef Jeffrey freyK.L K.Liker 

For Toyota, how one arrives at the decision is equally important as the quality of the decision. decisi on. Do not hastily make a decisio decision n without covering all the facts, alternatives alternatives and an d co cons nsul ulti ting ng wit with h th the e pe peop ople le who wil willl be af affe fect cted ed wi with th th the e ou outc tcom ome e of th the e de deci cisi sion on.. When you have picked a solution or alternative, go down the path quickly but cautiously. Consultation can make acceptance of the solution easier and implementation of the proces pro cess s mor more e smo smooth othly ly.. Toyo oyota' ta's s exc excelle ellence nce is in the det details ails.. The com compan pany y con consid siders ers all elem element ents s (co (cost,qualit st,quality y, pro proble blems,soluti ms,solutions ons and sta stakeh kehold olders ers)) in the pro proces cess. s. The 5 major elements to thoroughly consider in the decision making process are: 1. Fi Find ndin ing g ou outt wh what at is re reall ally y go goin ing g on on.. 2. Und Unders erstan tandin ding g the cau causes ses of the pro proble blem.Askin m.Asking g “wh “why” y” fiv five e tim times. es. 3. Br Broa oadly dly cons consid ider erin ing g al alte tern rnat ativ ive e so solut lutio ions ns an and d de deve velop lopin ing g a de deta taile iled d rationa rat ionale le for theprefe thepreferre rred d or sele selecte cted d sol soluti ution. on. 4. Bui Buildin lding g con consen sensus sus wit with h the tea team, m, emp employ loyees ees and sup supplie pliers. rs. 5. Using effect effective ive and efficien efficientt communicat communication ion channels channels to convey convey steps steps one to four four..

Principle 14: Become a Learning Organization Through Relentless Reflection (Hansei ) and Continuous Improvement (Kai zen)   ·

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Esta Es tabl blish ish a pr proc oces ess s fo forr co cont ntinu inuou ous s mo monit nitor oring ing an and d co cont ntin inuou uous s improvement. Once you have set-up a standard and stable process, use continuous improvement tools (such as the balance score card) to find the roott cau roo cause se of ine ineff ffici icienc encies ies and app apply ly eff effect ective ive cou counte nterr mea measur sures. es. Create a process that requires the least (or if possible, zero) inventory. inventory. This willl mak wil make e was wastedtime tedtime and res resour ources ces eas easier ier to spo spott and cor correc rect. t. Protec Pro tectt ind indust ustria riall kno knowled wledge ge by dev develo eloping ping sta stable ble emp employ loyees ees,, slow promot pro motion,contin ion,continuou uous s lea learni rning, ng, and a ver very y car carefu efull suc succes cessio sion n sys system tem.. Tr Train ain employ emp loyees ees to bec become ome lea leader ders s and ef effec fectiv tively ely han handle dle wor work. k. Pro Promot mote e peo people ple within the organi organization zation.. Standa Sta ndardi rdize ze the bes bestt pro proces cess s wit with h eac each h new pro projec jectt and eac each h new man manage agerr.

Applying the Toyota Way in Your Organization Using the Toyota Way to Transform Technical and Service Organizations Developing De veloping and Imple Implementing menting ValueStrea alueStream m Maps through Kaiz Kaizen en Workshops Phase 1: Pre Phase Prepara paration tion for the Workshop 1. Cl Clea earl rly y de defi fine ne the sc scop ope. e. De Dete term rmin ine e th the e st star arti ting ng po point int or tr trig igge gerr an and d th the e fi fina nall deliverable deliver able produ products cts to the custom customer er.. 2. Se Sett obje objecti ctive ves. s. Set measurable objectives for the team to achieve. The goal go als s mu must st be al alig igne ned d wi with th th the e co comp mpan any y cu cult ltur ure e an and d sh shou ould ld be se sett to re redu duce ce leadtime, imp improv rove e qua qualit lity y and red reduce uce cos cost. t. 3. Cre Create ate pre prelimi liminar nary y cur curren rentt sta state te map map.. Hav Have e a te team am of 3 to 4 pa part rtic icip ipan ants ts wa walk lk

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The Th e Toyota Way by byJef Jeffrey freyK.L K.Liker 

throug thro ugh h th the e cu curr rren entt pr proc oces ess.T s.Tak ake e no note te of th the e ti time me it ta take kes s to pe perf rfor orm m th the e ta task sk and the wait times between processes. This is the most crucial of the prework wor k act activit ivities ies as it sav saves es val valuab uable le wor worksh kshop op tim time. e. 4. Co Colle llect ct al alll re relev levan antt do docu cume ments nts.. Asi Aside de fro from m col collec lectin ting g the pre prelim liminar inary y cur curren rentt state map, the team should also collect samples of forms and documents used use d at eac each h ste step. p. Cop Copies ies of all standard standard procedur procedures es mus mustt be mad made e available availa ble during the works workshop. hop. 5. Po Post st a pr prel elimi imina narycurr rycurren entt st statemap atemap in theteamroom theteamroom.. Phase Pha se 2: TheKaize TheKaizen n Workshop 1. Who is the cus custome tomer?  r? Have the team identify the customer customer s needs and the proces pro cesses ses tha thatt sup suppor portt or add val value. ue. 2. Ana Analyz lyze e cur curren rentt state state.. Analyze process steps and process flow. Identify value valu e add added ed and non non-va -value lue add added ed ite items.Elimin ms.Eliminate ate thenon-va thenon-value lue add add.. 3. Dev Develo elop p futur future e state state vis vision ion.. Brainstorm and have participants write down their ideas. Team should evaluate each idea and see which can help in achieving achiev ing goals. 4. Imp Impleme lementat ntation ion.. Dev Developa elopa tra trainin ining g and com commun munica icatio tion n plan plan.. 5. Ev Eval alua uate te.. Measure performance by establishing process metrics to visually trackprogr track progress ess and for contin continuous uous impro improvement vement.. '

Phas Ph ase e 3: Afte Afterr theworkshop - St Stai aining ning an and d Co Continuou ntinuous s Improv mprovem emen ent. t. 1. Re Revi view ew th the e sta statu tus s of th the e op open en ac acti tion on ite items ms fr from om th the e pr proj ojec ectt pl plan  an . 2. Rev Review iew pro proces cess s metr metrics ics to ens ensure ure impr improve ovemen ments ts are bei being ng ach achiev ieved. ed. 3. Dis Discus cuss s add additio itional nal opp opport ortuni unitiesfor tiesfor impr improve ovement ments. s. 4. Co Cont ntinu inue e to im impr prov ove e th the e pr proc oces ess. s.

Build Your Your Own Lean Learning Enterprise, Borrowing from the Toy Toyota ota Way Way 13Tips for Transitioning Transitioning Your Company Company to a Lea Lean n Ente Enterprise rprise 1. Sta Start rt with action action in the tec techni hnical cal system; system; followe followed d quic quickly kly with cultural cultural change. 2. Le Lear arn n by do doingfir ingfirst st an and d tr train ainin ing g se seco cond nd.. 3. Sta Start rt with the the value steam steam pilots pilots to demonst demonstrat rate e lean as a sys system tem and provid pro vide e a “go see see”” mod model. el. 4. Us Use e va valu lue e st stre ream am ma mapp ppin ing g to de deve velo lop p fu futu ture re st stat ate e vi visi sion ons s an and d he help lp “l “lea earn rn to see”. 5. Us Use e Ka Kaiz izen en wo work rksh shop ops s to te teac ach h an and d ma make ke ra rapi pid d ch chan ange ges. s. 6. Or Orga ganiz nize e ov over er va valuestr luestrea eams ms.. 7. Ma Make ke it ma mand ndat ator ory y. 8. A crisis crisis may prompt prompt a lean lean movement, movement, but may may not be necessar necessary y to turn a company compa ny around around.. 9. Be opp opport ortuni unisti stic c in ide identi ntifyi fying ng opp opport ortuni unitie ties s forbig fin financ ancial ial imp impact acts. s. 10. Rea Realig lign n met metric rics s wit with h val value ue str stream eams s per perspe specti ctive. ve. 11. Bu Buil ild d on yo your ur co comp mpan any y s ro root ots s to de deve velo lop p yo your ur ow own n wa way y. 12. Hir Hire e or dev develo elop p leanleader leanleaders s and dev develo elop p a suc succes cessio sion n sys system tem.. 13. Use exp expert erts s forteach forteaching ing and get gettin ting g qui quick ck res result ults. s. '

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