18 December, 2008

The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer


Table of Contents

Part One - 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 Toyota Family and 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 Two - The Business Principles of the Toyota Way

Section I - 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 II - 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 III - Add Value to the Organization by Developing Your People and Partners

Chapter 15 - Principle 9: Grow Leaders Who Thoroughly Understand the Work, Live the Philosophy, and Teach It to Others

Chapter 16 - Principle 10: Develop Exceptional People and Teams Who Follow Your Company’s Philosophy

Chapter 17 - Principle 11: Respect Your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve

Section IV - Continuously Solving Root Problems Drives Organizational Learning

Chapter 18 - Principle 12: Go and See for Yourself to Thoroughly Understand the Situation (Genchi Genbutsu )

Chapter 19 - Principle 13: Make Decisions Slowly by Consensus,Thoroughly Considering All Options; Implement Rapidly (Nemawashi)

Chapter 20 - Principle 14: Become a Learning Organization Through Relentless Reflection (Hansei ) and Continuous Improvement (Kaizen)

Part Three - Applying the Toyota Way in Your Organization

Chapter 21 - Using the Toyota Way to Transform Technical and Service Organizations

Chapter 22 - Build Your Own Lean Learning Enterprise, Borrowing from the Toyota Way

Summary

How to speed up business processes, improve quality, and cut costs in any industry In factories around the world, Toyota consistently makes the highest-quality cars with the fewest defects of any competing manufacturer, while using fewer man-hours, less on-hand inventory, and half the floor space of its competitors. The Toyota Way is the first book for a general audience that explains the management principles and business philosophy behind Toyota's worldwide reputation for quality and reliability. Complete with profiles of organizations that have successfully adopted Toyota's principles, this book shows managers in every industry how to improve business processes by:

  • Eliminating wasted time and resources
  • Building quality into workplace systems.
  • Finding low-cost but reliable alternatives to expensive new technology Producing in small quantities
  • Turning every employee into a quality control inspector.

The 14 principles are divided into four sections:

· Long-Term Philosophy. Toyota is serious about long-term thinking. The focus from the very top of the company is to add value to customers and society. This drives a long-term approach to building a learning organization, one that can adapt to changes in the environment and survive as a productive organization. Without this foundation, none of the investments Toyota makes in continuous improvement and learning would be possible.

· The Right Process Will Produce the Right Results. Toyota is a process-oriented company. They have learned through experience what processes work, beginning with the ideal of one-piece flow. Flow is the key to achieving best quality at the lowest cost with high safety and morale. At Toyota this process focus is built into the company’s DNA, and managers believe in their hearts that using the right process will lead to the results they desire.

· Add Value to the Organization by Developing Your People and Partners. The Toyota Way includes a set of tools that are designed to support people continuously improving and continuously developing. For example, one-piece flow is a very demanding process that quickly surfaces problems that demand fast solutions—or production will stop. This suits Toyota’s employee development goals perfectly because it gives people the sense of urgency needed to confront business problems. The view of management at Toyota is that they build people, not just cars.

· Continuously Solving Root Problems Drives Organizational Learning. The highest level of the Toyota Way is organizational learning. Identifying root causes of problems and preventing them from occurring is the focus of Toyota’s continuous learning system. Tough analysis, reflection, and communication of lessons learned are central to improvement as is the discipline to standardize the best-known practices.

Understanding Toyota’s success and quality improvement systems does not automatically mean we can transform a company with a different culture and circumstances. Toyota can provide inspiration, demonstrate the importance of stability in leadership and values that go beyond short-term profit, and suggest how the right combination of philosophy, process, people, and problem solving can create a learning enterprise. All manufacturing and service companies that want to be successful in the long term must become learning enterprises. Toyota is one of the best models in the world. Though every company must find its own way and learn for itself, understanding the Toyota Way can be one giant step on that journey.

“The key to the Toyota Way and what makes Toyota stand out is not any of the individual elements.... But what is important is having all the elements together as a system. It must be practiced every day in a very consistent manner—not in spurts.”

Fujio Cho, President of Toyota Motor Company