DOCSLIB.ORG

537F0e354c28dtoyota Way.Pdf

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
537F0e354c28dtoyota Way.Pdf The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer by Jeffrey K. Liker ISBN:0071392319 McGraw-Hill © 2004 (352 pages) This book explains the management principles and business philosophy behind Toyota's worldwide reputation for quality and reliability. It also shows managers in every industry how to improve business processes. Table of Contents The Toyota Way 14 Management Principles from the World s Greatest Manufacturer Preface Part One - The World-Class Power of the Toyota Way Ch apt The Toyota Way: Using Operational Excellence as a Strategic - er Weapon 1 Ch apt How Toyota Became the World s Best Manufacturer: The Story - er of the Toyoda Family and the Toyota Production System 2 Ch apt - The Heart of the Toyota Production System: Eliminating Waste er 3 Ch apt The 14 Principles of the Toyota Way: An Executive Summary of - er the Culture Behind TPS 4 Ch apt The Toyota Way in Action: The No Compromises Development - er of Lexus 5 Ch apt The Toyota Way in Action: New Century, New Fuel, New Design - er Process Prius 6 Part Two - The Business Principles of the Toyota Way Se cti on I Ch apt Principle 1: Base Your Management Decisions on a Long-Term - er Philosophy, Even at the Expense of Short-Term Financial Goals 7 Se cti - The Right Process Will Produce the Right Results on II Ch apt Principle 2: Create Continuous Process Flow to Bring Problems to - er the Surface 8 Ch apt - Principle 3: Use Pull Systems to Avoid Overproduction er 9 Ch apt - Principle 4: Level Out the Workload (Heijunka ) er 10 Ch apt Principle 5: Build a Culture of Stopping to Fix Problems, to Get - er Quality Right the First Time 11 Ch apt Principle 6: Standardized Tasks Are the Foundation for - er Continuous Improvement and Employee Empowerment 12 Ch apt - Principle 7: Use Visual Control So No Problems Are Hidden er 13 Ch apt Principle 8: Use Only Reliable, Thoroughly Tested Technology - er That Serves Your People and Processes 14 Se cti Add Value to the Organization by Developing Your People and - on Partners III Ch apt Principle 9: Grow Leaders Who Thoroughly Understand the - er Work, Live the Philosophy, and Teach It to Others 15 Ch apt er 16 This document is created with the unregistered version of Document2PDF Pilot. Ch apt Principle 11: Respect Your Extended Network of Partners and - er Suppliers by Challenging Them and Helping Them Improve 17 Se cti Continuously Solving Root Problems Drives Organizational - on Learning IV Ch apt Principle 12: Go and See for Yourself to Thoroughly Understand - er the Situation (Genchi Genbutsu ) 18 Ch apt Principle 13: Make Decisions Slowly by Consensus,Thoroughly - er Considering All Options; Implement Rapidly (Nemawashi ) 19 Ch apt Principle 14: Become a Learning Organization Through Relentless - er Reflection (Hansei ) and Continuous Improvement (Kaizen ) 20 Part Three - Applying the Toyota Way in Your Organization Ch apt Using the Toyota Way to Transform Technical and Service - er Organizations 21 Ch apt Build Your Own Lean Learning Enterprise, Borrowing from the - er Toyota Way 22 Bibliography/Chapter References Recommended for Further Reading Index List of Figures List of Sidebars Back Cover What Can Your Business Learn From Toyota? • Double or triple the speed of any business process • Build quality into workplace systems • Eliminate the huge costs of hidden waste • Turn every employee into a quality control inspector With a market capitalization greater than the value of General Motors, Ford, and Chrysler combined, Toyota is also, (by far), the world s most profitable automaker. Toyota s well-known secret weapon is Lean production the revolutionary approach to business processes that it invented in the 1950s and has spend decades perfecting. Less well known are the management principles that underlie Lean production, Lean product development, and all of Toyota s business and service processes. Today businesses around the world are attempting to implement Toyota s radical system for speeding up processes, reducing waste, and improving quality. But are they getting beneath the surface of Lean tools and techniques to the real foundation of Toyota s success? The Toyota Way, explains Toyota s unique approach to Lean management the 14 principles that drive Toyota s quality and efficiency-obsessed culture. You ll gain valuable insights that can be applied to any organization and any business process, whether in services or manufacturing. You ll discover how the right combination of long-term philosophy, processes, people, and problem solving can transform your organization into a Lean, learning enterprise the Toyota Way. About the Author Jeffrey K. Liker, Ph.D., is Professor of Industrial and Operations Engineering at the University of Michigan, and cofounder and Director of the Japan Technology Management Program and the Lean Manufacturing and Product Development Certificate Program at the university. Winner of four Shingo Prizes for Excellence, Dr. Liker s writings on Toyota have appeared in The Harvard Business Review, Sloan Management Review, and other leading publications. Dr. Liker is a principal of Optiprise, a Lean enterprise/supply chain management consulting firm, and was the editor of Becoming Lean: Experiences of U.S. Manufacturers, which won the 1998 Shigeo Shingo prize for excellence in manufacturing research. The Toyota Way 14 Management Principles from the World s Greatest Manufacturer Jeffrey K. Liker McGraw-Hill Copyright © 2004 by McGraw-Hill. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. 1 2 3 4 5 6 7 8 9 0 AGM/AGM 0 9 8 7 6 5 4 3 ISBN 0-07-139231-9 Editorial and production services provided by CWL Publishing Enterprises, Inc., Madison, WI, www.cwlpub.com. This document is created with the unregistered version of Document2PDF Pilot. and Our Amazing Life Journey Foreword When I joined Toyota after 18 years in the U.S. automobile business, I didn t know exactly what to expect. But I was hopeful. I knew that I wasn t comfortable with the direction that American automobile manufacturing was taking, and I felt Toyota might be different. In no time at all I noticed a fundamental difference between Toyota and my previous employers. At a Toyota/GM joint venture plant in Fremont, California, called NUMMI (New United Motor Manufacturing), I witnessed the transformation of a workforce from one of the worst in the General Motors system to one of the best in any manufacturing facility in the United States. The difference was the Toyota Way. In this book, Dr. Liker explains the management systems, thinking, and philosophy that form the foundation of Toyota s success, providing the reader with valuable insights that can be applied to any business or situation. While there are many books that provide insight into the tools and methods of Toyota s Production System (TPS), Professor Liker s book is unique in its explanation of the broader principles at work in the Toyota culture. The Toyota Way is not the Japanese Way or the American Way or even the Gary Convis Way of managing. It is the fundamental way that Toyota views its world and does business. The Toyota Way, along with the Toyota Production System, make up Toyota s DNA. This DNA was born with the founders of our company and continues to be developed and nurtured in our current and future leaders. The Toyota Way can be briefly summarized through the two pillars that support it: Continuous Improvement and Respect for People. Continuous improvement, often called kaizen, defines Toyota s basic approach to doing business. Challenge everything. More important than the actual improvements that individuals contribute, the true value of continuous improvement is in creating an atmosphere of continuous learning and an environment that not only accepts, but actually embraces change. Such an environment can only be created where there is respect for people hence the second pillar of the Toyota Way. Toyota demonstrates this respect by providing employment security and seeking to engage team members through active participation in improving their jobs. As managers, we must take the responsibility for developing and nurturing mutual trust and understanding among all team members. I believe management has no more critical role than to motivate and engage large numbers of people to work together toward a common goal. Defining and explaining what the goal is, sharing a path to achieving it, motivating people to take the journey with you, and assisting them by removing obstacles those are management s reasons for being. We must engage the minds of people to support and contribute their ideas to the organization. In my experience, the Toyota Way is the best method for fulfilling this role. However, readers of this book should understand that each organization must develop its own way of doing business. The Toyota Way is the special product of the people who created Toyota and its unique history. Toyota is one of the most successful companies in the world. I hope this book will give you an understanding of what has made Toyota successful, and some practical ideas that you can use to develop your own approach to business. Gary Convis Managing Officer of Toyota and President, Toyota Motor Manufacturing, Kentucky Acknowledgments This book is the product of 20 years of study of Toyota. Much of that work was done under the auspices of the This document is created with the unregistered version of Document2PDF Pilot. Japan Technology Management Program at University of Michigan, Ann Arbor, where I am currently Director.
Load more

Recommended publications
  • The Toyotatoyota Wayway (The Company That Invented Lean Production)
    TheThe ToyotaToyota WayWay (The Company that invented Lean Production) 1414 ManagementManagement PrinciplesPrinciples fromfrom thethe World’sWorld’s GreatestGreatest Manufacturer Manufacturer By: Jeffrey K. Liker (Paperback,330p,ISBN 0-07-058747-7,Rs. 250) (Tata McGraw-Hill) Why to read this book ? •• You’ll learn how Toyota creates an ideal environment for implementing Lean techniques & tools by :: -Fostering an atmosphere of continuous improvement and learning -Satisfying customers (and eliminating waste at the same time) -Getting quality right the first time -Grooming leaders from within rather than recruiting them from the outside -Teaching all employees to become problem solver -Growing together with suppliers and partners for mutual benefits About Toyota •• Market capitalization over $ 105 billion; 2,40,000 employees •• 3rd Largest auto manufacturer in the world; behind GM & Ford •• Global Vehicle sale of over 6 million per year in 170 countries •• Big Brands like Corolla, Camry, Lexus •• Annual Profit margin: 8.3 times higher than industry average Contents… •• DevelopmentDevelopment ofof ToyotaToyota ProductionProduction SystemSystem “TPS”“TPS” (5-9)(5-9) •• FundamentalsFundamentals ofof TPSTPS (10-15)(10-15) •• TheThe ToyotaToyota PrinciplesPrinciples (16-19)(16-19) •• WhatWhat cancan bebe learntlearnt fromfrom ToyotaToyota (20-28)(20-28) •• HowHow toto adoptadopt TPSTPS (29-32)(29-32) DevelopmentDevelopment ofof ToyotaToyota ProductionProduction SystemSystem (TPS)(TPS) •• Toyota customer requirement was in small lots & different verities unlike Ford & GM using ‘mass production’ concepts •• These requirement is to be met with same assembly line •• Toyota was having cash crunch and there was no stable supply chain •• Toyota studied that ‘mass production’ concepts cannot be feasible in Japan. Ford & GM were facing many issues due to same.
    [Show full text]
  • The Toyota Way
    The Toyota Way The Toyota Way is a set of principles and behaviors that underlie the Toyota Motor Corporation's managerial approach and production system. Toyota first summed up its philosophy, values and manufacturing ideals in 2001, calling it “The Toyota Way 2001.” It consists of principles in two key areas: continuous improvement, and respect for people.[1][2][3] Contents [hide] 1 Overview of the principles 2 Research findings o 2.1 Long-term philosophy o 2.2 Right process will produce right results o 2.3 Value to organization by developing people o 2.4 Solving root problems drives organizational learning 3 Translating the principles 4 See also 5 References 6 Further reading Overview of the principles The two focal points of the principles are continuous improvement and respect for people. The principles for a continuous improvement include establishing a long-term vision, working on challenges, continual innovation, and going to the source of the issue or problem. The principles relating to respect for people include ways of building respect and teamwork. Research findings In 2004, Dr. Jeffrey Liker, a University of Michigan professor of industrial engineering, published "The Toyota Way." In his book Liker calls the Toyota Way, "a system designed to provide the tools for people to continually improve their work."[4] The system can be summarized in 14 principles.[5] According to Liker, the 14 principles of The Toyota Way are organized in four sections: (1) long-term philosophy, (2) the right process will produce the right results, (3) add value to the organization by developing your people, and (4) continuously solving root problems drives organizational learning.
    [Show full text]
  • The Application of Lean in Healthcare
    The Application of Lean in Healthcare Exploratory Paper Erik Liu, MBA, FACMPE August 01, 2018 This paper is being submitted in partial fulfillment of the requirements of Fellowship in the American College of Medical Practice Executives Abstract The current healthcare environment poses many challenges to medical group practice managers. Aside from their daily tasks of managing operational issues in their medical practices, healthcare administrators must deal with the burgeoning issues of physician burnout, attracting and keeping talented staff, taking charge of the practice’s financial stewardship and ensuring the delivery of quality health care. Healthcare managers are increasingly asked to do more with less. Can Lean management systems help practice managers thrive, not only survive, in the current dynamic healthcare environment? This exploratory paper will attempt to answer this question and explore how practice managers can improve patient and employee satisfaction, improve healthcare quality and safety, and lower operating costs by consistently practicing Lean principles aimed at creating value and removing waste, surfacing and solving problems, and engaging and empowering employees in continuous improvement. Keywords: Lean, Toyota Production System, TPS, Continuous Process Improvement, Kaizen, Problem Solving, Coaching, Standardization, Patient Satisfaction, Employee Engagement, 5S, Andon, Kanban, Value Stream Map, Flow, A3 Report, Plan‐Do‐Study‐Act 1 Introduction The current healthcare environment poses many challenges to medical group practice managers. Government mandates concerning the meaningful use of Electronic Health Records (EHR) have created mountains of administrative tasks for physicians and managers. Reimbursement trends are changing from “pay for volume” to “pay for value”. Big insurance payors are merging and dictating how medicine should be practiced.
    [Show full text]
  • Page 1 of 8 Process Improvement Concepts and Terminology
    Process Improvement Concepts and Terminology (A Guide to the Jargon) Disclaimer: Some statements/definitions are broad generalities intended as an initial introduction to Lean and Six Sigma concepts. (Not in alphabetical order) Methodologies and Related Concepts Lean – Process improvement methodology focused on reducing waste in a system. It is based heavily on the teachings of W. Edwards Deming and the Toyota Production System. The term Lean is derived from the idea that the approach reduces “wastes” that contribute to inefficient processes and poor outcomes. It does NOT refer to the idea that it is a way to cut staff as in the management adage: “lean and mean.” Mura – Japanese term that means “waste.” Key concept in Lean, which focuses on the reduction of “waste.” Muda – Japanese term that means “unevenness.” Workaround – Temporary fix to a system or process breakdown – a reaction to an immediate problem. In some cases, may not work well. Equivalent to “Duct tape on a split on a car radiator hose.” Not a permanent solution. Sometimes the result of procedures created without input from those involved in the process. A workaround does nothing to improve the situation in the future. PDCA/PDSA – Plan, Do, Check or Study, Act – A change process originally developed by Walter Shewhart (PDCA) and later revised by W. Edwards Deming (PDSA). It is sometimes referred to as the Deming wheel. It is intended to be used in multiple, successive cycles. © 2015 PCPI. All rights reserved. Page 1 of 8 Process Improvement Terminology (Jargon) Handout Error-proofing (“poka yoke” Japanese term) – the practice of making a process error proof, or make errors more apparent.
    [Show full text]
  • Implementation of 5S Methodology
    Niko Immonen Implementation of 5S Methodology Case Transval Group Helsinki Metropolia University of Applied Sciences Bachelor Degree Double Degree in European Management Thesis 27.4.2016 Abstract Author(s) Niko Immonen Title Implementation of 5S Methodology Number of Pages 39 pages + 9 appendices Date 27 April 2016 Degree Bachelor Degree Degree Programme Double Degree in European Management Specialisation option Double Degree in European Management Instructor(s) Kaija Haapasalo, Senior Lecturer in Logistics Juha Piirainen, Project Manager In this thesis, the researcher will explained the fundamental meaning of 5S by taking the reader through the implementation process in practice. The concept “5S”, is part of Lean management. Its main function is to eliminate non-value adding processes, by standardiz- ing working methods and creating a well-organized working environment. 5S is formed from five Japanese words that are translated into English as Sort, Set, Shine, Standardize and Sustain. The idea for the thesis topic was presented to the researcher in January 2016 by Transval Group. Today, as Lean and 5S has a strong influence in the entire world of logistics, the choice of the thesis topic was reasonable and interesting. The thesis was an action based research, in which the researcher was placing theory into practice. 5S seminars and meet- ings, related to the project, build a base for the researcher to understand the importance of a well-organized and safe working environment. As the knowledge of the researcher grew during the process, he was able to guide the participants during the implementation. The implementation was carried out in Transval Groups’s Customer’s warehouse.
    [Show full text]
  • Comparison of Lean Management in Japanese and Belgian Manufacturing Smes
    UNIVERSITEIT GENT GHENT UNIVERSITY FACULTEIT ECONOMIE EN BEDRIJFSKUNDE FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION ACADEMIC YEAR 2015 – 2016 Comparison of Lean Management in Japanese and Belgian Manufacturing SMEs Masterproef voorgedragen tot het bekomen van de graad van Master’s Dissertation submitted to obtain the degree of Master of Science in Business Engineering Jasmien Dierickx Under the guidance of Prof. Veronique Limère UNIVERSITEIT GENT GHENT UNIVERSITY FACULTEIT ECONOMIE EN BEDRIJFSKUNDE FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION ACADEMIC YEAR 2015 – 2016 Comparison of Lean Management in Japanese and Belgian Manufacturing SMEs Masterproef voorgedragen tot het bekomen van de graad van Master’s Dissertation submitted to obtain the degree of Master of Science in Business Engineering Jasmien Dierickx Under the guidance of Prof. Veronique Limère PERMISSION I declare that the content of this Master’s Dissertation can be consulted and/or reproduced if the sources are mentioned. Name student: Jasmien Dierickx Signature: Samenvatting CONTEXT - Sterkere concurrentie en de toenemende veeleisendheid van klanten zetten bedrijven steeds meer onder druk om beter en sneller te doen. Kmo’s in het bijzonder zijn gevoelig voor deze toenemende druk. In deze context richten veel bedrijven zich tot nieuwe manieren van bedrijfsvoeren, zoals lean management, dat bijgevolg dan ook steeds meer aan populariteit wint. Lean implementeren is echter niet gemakkelijk en veel kmo’s blijken hierbij nog heel wat moeilijkheden te ondervinden. ONDERZOEK - Het doel van deze masterproef is om op basis van een vergelijking van Japanse en Belgische kmo’s meer inzicht te krijgen in de factoren voor succes en faling van lean implementatie in kmo’s.
    [Show full text]
  • Toyota Way Toyota Production System
    TPS /Lean Seminar, 28 Sep.~02 Oct. /2018, M.P.E.C. at Yangon Toyota Way & Toyota Production System Part 1 Satoshi Kuroiwa ([email protected]) Managing director Association for Support of ESD 21 Former Visiting Professor, NIT and KIT Former Toyota Corp. Introduction Outline of ESD21 Economic Sustainable Development for21st Century 1. ESD21 ; Abbreviation of our Association - Non Profit Organization founded in 2010 - Corporate Member: 70 Individual : 120 cf. -Toyota Tsusho -Kojima press, -USP, etc. 2. Mission -“Kaizen(TPS) & Innovation(IT)” of the people for business competitiveness. - Practical philosophy of “ Sanpou-Yoshi” (三方よし：Seller, Buyer, Society). 3. Activities (1) Various support services based on TPS(Toyota Production System) , and IT (Information Technology). (2) Special projects and events Ex. Collaboration with SEDA (NGO in Myanmar) Part1, contents １．Introduction ２．Why should you learn TPS/Lean system ３．Toyota’s ”Monozukuri “ , Toyota Way and Toyota Production System (TPS) TPS=Toyota Production System <Speaker’s profile> “Monozukuri”= Manufacturing - Worked for Toyota for 34 years and had experience in the car production preparation engineering together with IT engineering - Specialized in Factory Automation and IT enhanced TPS (1980~2000) - Involved in associations related to Japan’s IT strategy organized METI - Visiting professor of Nagoya /Kyusyu Institute of Technology(2004~’16) - Now, working for NPOs, such as ESD21, APSOM and TMS &TPS certification institute Introduction Structural change to the global economy Almost issues brought by ICT evolution and digitalization Key Issues ICT= Information & Communication Technology 1. Globalization of economy 2. Environment and energy issues 3. Change of the industrial structure 4. Brexit and US.
    [Show full text]
  • Culture” of the Lean Production Process Transferable?
    Journal of International Business and Cultural Studies Volume 12 Is the “Culture” of the Lean Production Process Transferable? Jillian R. Yarbrough West Texas A&M University Kadhem M. Aljabr West Texas A&M University ABSTRACT The Japanese Automotive Industry is globally recognized for lean production efficiencies and these efficiencies are critical for supporting Toyota’s ranking as one of the world’s leading automakers (Levin, 2014)(Chiarini & Vagnoni, 2014). Ever ambitious, Toyota is constantly seeking improvements and expansion. Considering that over half the company’s profits come from America, further growth in America is one promising expansion avenue (The Economist, 2002). When examining, Toyota’s, efficiency and growth specific to America, it is interesting to question if Toyota’s Production System (TPS), specifically their lean production processes, translate effectively in America. The following paper will provide, first, a definition of Toyota’s Lean Process, second, an examination of cultural ideas that support Toyota’s lean practices and third, an exploration of the lean process application explicitly examining if lean processes support efficiency in American production plants. Finally, based on a review literature and a review of American manager observations, managerial recommendations for developing a culturally aligned lean production process will be offered. Keywords: Toyota, lean, efficiency, culture, Schein, production Copyright statement: Authors retain the copyright to the manuscripts published in AABRI journals. Please see the AABRI Copyright Policy at http://www.aabri.com/copyright.html Is the culture, Page 1 Journal of International Business and Cultural Studies Volume 12 INTRODUCTION Toyota has experienced rapid development since the organization’s beginning in 1933 as a small division of Toyoda Automatic Loom Works under the leadership of Kiichiro Toyoda.
    [Show full text]
  • Capstone Paper
    The Toyota Approach to Quality Management: A Guide to Understanding and Implementing the Toyota Way Catherine Schweitzer Honors Capstone Spring 2012 Abstract The “Toyota Way” has become synonymous with the highest level of quality in production. Despite a recent recall scandal, Toyota’s systems for quality and, more importantly, its deeply ingrained culture, which supports that system, have proven that their methods lead to successful companies. This manual is for other production-based companies that wish to benefit from the lessons Toyota has learned along the way. First we discuss, the history of the company and the philosophy that has led to its high quality. Then we will move on to the specific steps and mathematical models that support them. Finally, we will discuss the recall sandal, how Toyota has recovered so far, and how it will continue to repair the damage. By using examples as well as explicit rules, this guide will hopefully convince you of the success of the Toyota way and give you a solid foundation on which to build your own version of quality management. “The Toyota Way” Toyota has had much success with quality based on fourteen principles (made explicit by Jeffery Liker) that have become standard when referring not just to Toyota’s production practice, but also to the culture of the organization. They make up what is referred to as the Toyota Production System (TPS), the main goals of which are lean manufacturing and continual improvement. In fact, the summarizing principle of Toyota is to constantly find ways to reduce waste in all its forms.
    [Show full text]
  • Genchi Genbutsu )
    Table of Contents Preface Part 1: The World-Class Power of the Toyota Way Chapter 1 - The Toyota Way: Using Operational Excellence as a Strategic Weapon Chapter 2 - How Toyota Became the World s Best Manufacturer: The Story of the Toyoda Family and the Toyota Production System Chapter 3 - The Heart of the Toyota Production System: Eliminating Waste Chapter 4 - The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS Chapter 5 - The Toyota Way in Action: The No Compromises Development of Lexus Chapter 6 - The Toyota Way in Action: New Century, New Fuel, New Design Process Prius Part 2: The Business Principles of the Toyota Way Section 1 - Long-Term Philosophy Chapter 7 - Principle 1: Base Your Management Decisions on a Long-Term Philosophy, Even at the Expense of Short-Term Financial Goals Section 2 - The Right Process Will Produce the Right Results Chapter 8 - Principle 2: Create Continuous Process Flow to Bring Problems to the Surface Chapter 9 - Principle 3: Use Pull Systems to Avoid Overproduction Chapter 10 - Principle 4: Level Out the Workload (Heijunka ) Chapter 11 - Principle 5: Build a Culture of Stopping to Fix Problems, to Get Quality Right the First Time Chapter 12 - Principle 6: Standardized Tasks Are the Foundation for Continuous Improvement and Employee Empowerment Chapter 13 - Principle 7: Use Visual Control So No Problems Are Hidden Chapter 14 - Principle 8: Use Only Reliable, Thoroughly Tested Technology That Serves Your People and Processes Section 3 - Add Value to the Organization by Developing
    [Show full text]
  • The Toyota Way
    Concentrated Knowledge™ for the Busy Executive • www.summary.com Vol. 26, No. 12 (2 parts) Part 2, December 2004 • Order # 26-30 FILE: MANUFACTURING ® Fourteen Management Principles From the World’s Greatest Manufacturer THE TOYOTA WAY THE SUMMARY IN BRIEF Toyota is the world’s most profitable automaker. Its “secret weapon” is By Jeffrey K. Liker, Ph.D. lean production — the revolutionary approach to business processes that it invented in the 1950s and has spent decades perfecting. Today, businesses CONTENTS around the world are trying to emulate Toyota’s remarkable success by working to implement the company’s radical system for speeding up busi- Using Operational Excellence ness and service processes, reducing waste, and improving quality. It is a As a Strategic Weapon Page 2 system that is derived from balancing the role of people in an organization- al culture that expects and values their continuous improvements, with a How Toyota Became technical system that is focused on high-value-added “flow.” The World’s Best Manufacturer To help other companies learn to continually improve on what they do, Pages 2, 3 Professor of Industrial and Operations Engineering at the University of Eliminating Waste Michigan Dr. Jeffrey K. Liker describes the results of his year-long research Page 3 into Toyota and its managers, executives, suppliers and training centers. Long-Term Philosophy While detailing the company’s culture, processes and people, Liker provides Page 4 readers with a management model that can be used to transform business across industries, and the key principles that drive the techniques and tools The Right Process Will Produce the Right Results of the Toyota Production System and the management of Toyota in general.
    [Show full text]
  • The 14 Principles of the Toyota Way: an Executive Summary of the Culture Behind TPS
    Liker04.qxd 10/29/2003 9:15 AM Page 35 Chapter 4 The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS Since Toyota’s founding we have adhered to the core principle of con- tributing to society through the practice of manufacturing high-quality products and services. Our business practices and activities based on this core principle created values, beliefs and business methods that over the years have become a source of competitive advantage.These are the managerial values and business methods that are known collectively as the Toyota Way. —Fujio Cho, President Toyota (from the Toyota Way document, 2001) The Toyota Way Is More than Tools and Techniques o you set up your kanban system. (Kanban is the Japanese word for “card,” “ticket,” or “sign” and is a tool for managing the flow and production of Smaterials in a Toyota-style “pull” production system.) You plug in the andon, which is a visual control device in a production area that alerts workers to defects, equipment abnormalities, or other problems using signals such as lights, audible alarms, etc. Finally, with these devices your workplace looks like a Toyota plant. Yet, over time your workplace reverts to operating like it did before. You call in a Toyota Production System (TPS) expert who shakes her head disapprovingly. What is wrong? The real work of implementing Lean has just begun. Your workers do not understand the culture behind TPS. They are not contributing to the continuous 35 Liker04.qxd 10/29/2003 9:15 AM Page 36 36 The Toyota Way improvement of the system or improving themselves.
    [Show full text]