The Toyota Way: Difference between revisions
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{{short description|Set of managerial and production principles}} |
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{{Use dmy dates|date=February 2024}} |
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'''The Toyota Way''' is a set of principles defining the [[organizational culture]] of [[Toyota|Toyota Motor Corporation]].<ref>{{cite journal |last=Marksberry |first=Phillip |date=31 May 2011 |title=The Toyota Way – a quantitative approach |url= https://doi.org/10.1108/20401461111135028 |journal=International Journal of Lean Six Sigma |volume=2 |issue=2 |pages=132–150 |doi=10.1108/20401461111135028 |issn=2040-4166 |access-date=15 February 2024}}</ref><ref>{{Cite book |last=Soliman |first=Mohammed Hamed Ahmed |title=Toyota Standard Work: The Foundation of Kaizen |date=March 2021 |publisher=KDP, PersonalLean |year=2021 |isbn=979-8721554254 |language=English}}</ref> The company formalized the Toyota Way in 2001, after decades of academic research into the [[Toyota Production System]] and its implications for [[lean manufacturing]] as a methodology that other organizations could adopt.<ref>{{cite journal |last1=Jayamaha |first1=Nihal P. |last2=Wagner |first2=Jürgen P. |last3=Grigg |first3=Nigel P. |last4=Campbell-Adam |first4=Nicky M. |last5=Harvie |first5=Warwick |date=July 2014 |title=Testing a theoretical model underlying the 'Toyota Way' – an empirical study involving a large global sample of Toyota facilities |journal=International Journal of Production Research |volume=52 |issue=14|pages=4332–4350 |doi=10.1080/00207543.2014.883467 |s2cid=109063964 }}</ref> The two pillars of the Toyota Way are respect for people and [[Continual improvement process|continuous improvement]].<ref>{{cite book |last=Liker |first=Jeffrey K. |title=Toyota Culture: The Heart and Soul of the Toyota Way |publisher=McGraw-Hill |year=2008 |isbn=9780071492171 |location=New York |pages=xxvii}}</ref> Jeffrey K. Liker popularized the philosophy in his 2004 book, ''The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer.''<ref>{{cite book |url= https://www.accessengineeringlibrary.com/content/book/9780071448932 |title=Toyota Way Fieldbook |date=2006 |publisher=McGraw-Hill Education |isbn=978-0-07-144893-2 |edition=First}}</ref> Subsequent research has explored the extent to which the Toyota Way can be applied in other contexts.<ref>{{Cite journal |last1=Lander |first1=E. |last2=Liker |first2=J. K. |date=August 2007 |title=The Toyota Production System and art: making highly customized and creative products the Toyota way |journal=International Journal of Production Research |volume=45 |issue=16|pages=3681–3698 |doi=10.1080/00207540701223519 |s2cid=110872906 }}</ref> |
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'''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. Continuous improvement concludes expanding and learning values and emphasizing Toyota's philosophy. Respect in the workplace, for Toyota, means creating opportunities and dividing up tasks in a fair manner. <ref>{{cite web|publisher=Toyota Motor (Japan) |title=Environmental & Social Report 2003 |page=80 |url= http://www.toyota.co.jp/en/environmental_rep/03/pdf/E_p80.pdf |archiveurl= https://web.archive.org/web/20041129004200/http://www.toyota.co.jp/en/environmental_rep/03/pdf/E_p80.pdf |archivedate=29 November 2004 |accessdate=25 March 2021}}</ref><ref>Toyota Motor Corporation Annual Report, 2003, page 19. "The Toyota Way, which has been passed down since the Company's founding, is a unique set of values and manufacturing ideals. Clearly, our operations are going to become more and more globalized. With this in mind, we compiled a booklet, The Toyota Way 2001, in order to transcend the diverse languages and cultures of our employees and to communicate our philosophy to them." (Mr. Fujio Cho, President, Toyota Motor Corporation.) ''NOTE: This statement is not found in Toyota's 2003 Annual Report.''</ref>{{Failed verification |date=September 2022 |reason=There is no mention of this quote in the firm's 2003 annual report that is available online: https://www.toyota-industries.com/investors/items/ar2003.pdf }}<ref>{{cite web|publisher=Toyota Motor (Global) |title=Sustainability Report 2009 |page=54 |url= http://www.toyota-global.com/sustainability/sustainability_report/pdf_file_download/09/pdf/sr09_p54_p59.pdf |archiveurl= https://web.archive.org/web/20130731092215/http://www.toyota-global.com/sustainability/sustainability_report/pdf_file_download/09/pdf/sr09_p54_p59.pdf |archivedate=31 July 2013 |accessdate=25 March 2021}}</ref> |
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== Background == |
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The Toyota Way has been designated "a framework intended to give the instruments to individuals to constantly improve their work".[4] |
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The principles were first collated into a single document in the company's pamphlet "The Toyota Way 2001", to help codify the company's [[organizational culture]]. The philosophy was subsequently analyzed in the 2004 book ''The Toyota Way'' by [[industrial engineering]] researcher Jeffrey Liker and has received attention in [[business administration]] education and [[corporate governance]]. |
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== Principles == |
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The 14 standards of The Toyota Way are coordinated in four segments: |
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The principles of the Toyota Way are divided into the two broad categories of [[continuous improvement]] and respect for human resources.<ref>{{cite web|work=Toyota Motor (Japan) |title=Environmental & Social Report 2003 |page=80 |url= http://www.toyota.co.jp/en/environmental_rep/03/pdf/E_p80.pdf |archiveurl= https://web.archive.org/web/20041129004200/http://www.toyota.co.jp/en/environmental_rep/03/pdf/E_p80.pdf |archivedate=29 November 2004 |accessdate=25 March 2021}}</ref><ref>Toyota Motor Corporation Annual Report, 2003, page 19. "The Toyota Way, which has been passed down since the Company's founding, is a unique set of values and manufacturing ideals. Clearly, our operations are going to become more and more globalized. With this in mind, we compiled a booklet, The Toyota Way 2001, in order to transcend the diverse languages and cultures of our employees and to communicate our philosophy to them." (Mr. Fujio Cho, President, Toyota Motor Corporation.)</ref><ref>{{cite web|work=Toyota Motor (Global) |title=Sustainability Report 2009 |page=54 |url= http://www.toyota-global.com/sustainability/sustainability_report/pdf_file_download/09/pdf/sr09_p54_p59.pdf |archiveurl= https://web.archive.org/web/20130731092215/http://www.toyota-global.com/sustainability/sustainability_report/pdf_file_download/09/pdf/sr09_p54_p59.pdf |archivedate=31 July 2013 |accessdate=25 March 2021}}</ref> The standards for constant improvement include directives to set up a long-term vision, to engage in a step-by-step approach to challenges, to search for the root causes of problems, and to engage in ongoing innovation. The standards pertain to respect for individuals and incorporate ways of building appreciation and cooperation. |
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The system is summarized in 14 principles:<ref name="The Toyota Way">{{cite book |last=Liker |first=Jeffrey K. |title=The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer |year=2004 |publisher=McGraw-Hill |isbn=9780071392310 |url-access=registration |url= https://archive.org/details/toyotaway14manag00like }}</ref> |
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* Long haul reasoning |
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* The correct cycle will deliver the correct outcomes |
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* Enhance the association by building up your kin |
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* Persistently tackling root issues drives authoritative learning |
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# "Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals." |
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The two central marks of the standards are consistent improvement and regard for individuals. The standards for constant improvement incorporate setting up a drawn-out vision, chipping away at challenges, ceaseless innovation, and going to the wellspring of the issue or issue. The standards identifying with deference for individuals incorporate ways of building appreciation and cooperation. |
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# "Create a continuous process flow to bring problems to the surface." Work processes are redesigned to eliminate waste ([[Muda (Japanese term)|muda]]), such as overproduction and waiting times, through continuous improvement ([[kaizen]]). |
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# "Use 'pull' systems to avoid overproduction." A pull system produces only the required material after a subsequent operation signals a need. |
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# "Level out the workload ([[heijunka]]). (Work like the tortoise, not the hare.)" This principle aims to avoid overburdening people or equipment and creating uneven production levels ([[Mura (Japanese term)|mura]]). |
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# "Build a culture of stopping to fix problems, to get quality right the first time." Quality takes precedence ([[Jidoka]]). Any employee can stop the process to signal a quality issue. |
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# "Standardized tasks and processes are the foundation for continuous improvement and employee empowerment." |
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# "Use visual control so no problems are hidden." This principle includes the [[5S (methodology)|5S]] Program, steps that are used to make all workspaces efficient and productive, help people share workstations, reduce time looking for needed tools, and improve the work environment. |
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# "Use only reliable, thoroughly tested technology that serves your people and processes." |
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# "Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others." This principle argues that training and ingrained perspective are necessary for maintaining the organization. |
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# "Develop exceptional people and teams who follow your company's philosophy." |
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# "Respect your extended network of partners and suppliers by challenging them and helping them improve." The automaker intends to apply the same principles to suppliers that its employees use. |
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# "Go and see for yourself to thoroughly understand the situation ([[Genchi Genbutsu]])." Toyota managers are expected to experience operations firsthand to see how they can be improved. |
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# "Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly ([[nemawashi]])." |
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# "Become a learning organization through relentless reflection ([[hansei]]) and continuous improvement ([[kaizen]])." The general problem-solving technique to determine the root cause of a problem includes initial problem perception, clarification of the trouble, locating the cause, [[root cause analysis]], applying countermeasures, reevaluating, and standardizing. |
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==Research findings== |
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==The 14 principles== |
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In 2004, 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."<ref name = "Exec sum">{{cite web|last=Liker |first= Jeffrey |year=2004 |url= http://ICOS.groups.si.umich.edu//Liker04.pdf |title=The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS |page=36 |publisher=University of Michigan |archiveurl= https://web.archive.org/web/20120915035153/http://ICOS.groups.si.umich.edu//Liker04.pdf |archivedate=15 September 2012 |accessdate=25 March 2021}}</ref> |
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The system can be summarized in 14 principles.<ref name="The Toyota Way">{{cite book |last=Liker |first=Jeffrey K. |title=The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer |year=2004 |publisher=McGraw-Hill |isbn=9780071392310 |url-access=registration |url= https://archive.org/details/toyotaway14manag00like }}</ref> The principles are set out and briefly described below: |
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According to Liker, the 14 principles of The Toyota Way are organized into four sections: |
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===Section I — Long-term philosophy=== |
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# long-term philosophy, |
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'''Principle 1''' |
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# the right process will produce the right results, |
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*''Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.'' |
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# add value to the organization by developing your people, and |
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People need a purpose to find motivation and establish goals. Do not just put someone in management because it is right today, look at the long-term effects of that employee joining the management team. |
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# continuously solving root problems drives organizational learning. |
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===Section II — The right process will produce the right results=== |
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'''Principle 2''' |
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*''Create a continuous process flow to bring problems to the surface.'' |
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Work processes are redesigned to eliminate waste ([[Muda (Japanese term)|muda]]) through the process of continuous improvement — [[kaizen]]. There are seven kinds of muda within the Toyota Way of working. The seven types of muda are: |
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#Overproduction |
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#Waiting (time on hand) |
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#Unnecessary transport or conveyance |
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#Overprocessing or incorrect processing |
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#Excess inventory |
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#Motion |
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#Defects |
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'''Principle 3''' |
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*''Use "pull" systems to avoid overproduction.'' |
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A method where a process signals its predecessor that more material is needed. The pull system produces only the required material after the subsequent operation signals a need for it. This process is necessary to reduce overproduction. This is neccesary because the economic state of companies is better when they do not have leftover supply. |
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'''Principle 4''' |
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*''Level out the workload ([[heijunka]]). (Work like the tortoise, not the hare).'' |
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This helps achieve the goal of minimizing waste ([[Muda (Japanese term)|muda]]), not overburdening people or the equipment ([[Muri (Japanese term)|muri]]), and not creating uneven production levels ([[Mura (Japanese term)|mura]]). There are systems in place by Toyota to ensure that work is fairly distributed and no one is over-worked. |
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'''Principle 5''' |
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*''Build a culture of stopping to fix problems, to get quality right the first time.'' |
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Quality takes precedence ([[Jidoka]]). Any employee in the [[Toyota Production System]] has the authority to stop the process to signal a quality issue. This strategy is useful because it ensures that products continue to improve and minimal work is had to fix mess-ups. |
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'''Principle 6''' |
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*''Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.'' |
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Although Toyota has a bureaucratic system, the way that it is implemented allows for continuous improvement (kaizen) from the people affected by that system. It empowers the employee to aid in the growth and improvement of the company. |
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'''Principle 7''' |
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*''Use visual control so no problems are hidden.'' |
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Included in this principle is the [[5S (methodology)|5S]] Program - steps that are used to make all workspaces efficient and productive, help people share workstations, reduce time looking for needed tools and improve the work environment. |
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*Sort: Sort out unneeded items |
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*Straighten: Have a place for everything |
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*Shine: Keep the area clean |
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*Standardize: Create rules and standard operating procedures |
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*Sustain: Maintain the system and continue to improve it |
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'''Principle 8''' |
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*''Use only reliable, thoroughly tested technology that serves your people and processes.'' |
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Technology is pulled by manufacturing, not pushed to manufacturing. |
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===Section III — Add value to the organization by developing your people=== |
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'''Principle 9''' |
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*''Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.'' |
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Without constant attention, the principles will fade. The principles have to be ingrained, it must be the way one thinks. Employees must be educated and trained: they have to maintain a learning organization. Workshops and training days with managers and other employees alike can be considered when pushing specific principles is of importance. |
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'''Principle 10''' |
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*''Develop exceptional people and teams who follow your company's philosophy.'' |
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Teams should consist of 4-5 people and numerous management tiers. Success is based on the team, not the individual. |
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'''Principle 11''' |
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*''Respect your extended network of partners and suppliers by challenging them and helping them improve.'' |
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Toyota treats suppliers much like they treat their employees, challenging them to do better, and helping them to achieve it. Toyota provides cross-functional teams to help suppliers discover and fix problems so that they can become stronger and better suppliers. |
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===Section IV — Continuously solving root problems drives organizational learning=== |
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'''Principle 12''' |
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*''Go and see for yourself to thoroughly understand the situation ([[Genchi Genbutsu]]).'' |
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Toyota managers are expected to "go-and-see" operations. Without experiencing the situation firsthand, managers will not have an understanding of how it can be improved. Furthermore, managers use Tadashi Yamashima's (President, Toyota Technical Center (TTC)) ten management principles as a guideline: |
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#Always keep the final target in mind. |
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#Clearly assign tasks to yourself and others. |
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#Think and speak on verified, proven information, and data. |
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#Take full advantage of the wisdom and experiences of others to send, gather, or discuss information. |
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#Share information with others in a timely fashion. |
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#Always report, inform, and consult in a timely manner. |
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#Analyze and understand shortcomings in your capabilities in a measurable way. |
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#Relentlessly strive to conduct [[kaizen]] activities. |
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#Think "outside the box," or beyond common sense and standard rules. |
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#Always be mindful of protecting your safety and health. |
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'''Principle 13''' |
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*''Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly ([[nemawashi]]).'' |
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The following are decision parameters: |
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#Find what is really going on (go-and-see) to test |
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#Determine the underlying cause |
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#Consider a broad range of alternatives |
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#Build consensus on the resolution |
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#Use efficient communication tools |
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'''Principle 14''' |
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*''Become a learning organization through relentless reflection ([[hansei]]) and continuous improvement ([[kaizen]]).'' |
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The process of becoming a learning organization involves criticizing every aspect of what one does. The general problem-solving technique to determine the root cause of a problem includes: |
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#Initial problem perception |
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#Clarify the problem |
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#Locate area/point of cause |
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#[[Root cause analysis|Investigate root cause]] (5 whys) |
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#Countermeasure |
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#Evaluate |
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#Standardize |
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==Research findings== |
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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."<ref name = "Exec sum">{{cite web|last=Liker |first= Jeffrey |year=2004 |url= http://ICOS.groups.si.umich.edu//Liker04.pdf |title=The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS |page=36 |publisher=University of Michigan |archiveurl= https://web.archive.org/web/20120915035153/http://ICOS.groups.si.umich.edu//Liker04.pdf |archivedate=15 September 2012 |accessdate=25 March 2021}}</ref> |
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According to Liker, the 14 principles of The Toyota Way are organized into 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. |
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===Long-term philosophy=== |
===Long-term philosophy=== |
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The first principle involves managing with a long view rather than for short-term gain. It reflects a belief that people need a purpose to find motivation and establish goals. |
The first principle involves managing with a long-term view rather than for short-term gain. It reflects a belief that people need a purpose to find motivation and establish goals. |
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===Right process will produce right results=== |
===Right process will produce right results=== |
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The |
The following seven principles are focused on process with an eye towards a quality outcome. Following these principles, work processes are redesigned to eliminate waste ([[Muda (Japanese term)|muda]]) through continuous improvement — [[kaizen]]. The seven types of muda are (1) overproduction; (2) waiting, time on hand; (3) unnecessary transport or conveyance; (4) overprocessing or incorrect processing; (5) excess inventory; (6) motion; and (7) defects. |
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The principles in this section empower employees |
The principles in this section empower employees despite the automaker's bureaucratic processes. Any employee in the [[Toyota Production System]] has the authority to stop production to signal a quality issue, emphasizing that quality takes precedence ([[Jidoka]]). The way the Toyota bureaucratic system is implemented allows for continuous improvement (kaizen) from the people affected by that system so that any employee may aid in the growth and improvement of the company. |
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Recognition of the value of employees is also part of the principle of measured production rate ([[heijunka]]), as a level workload helps avoid overburdening people and equipment ([[Muri (Japanese term)|muri]]), but this is also intended to minimize waste (muda) and avoid uneven production levels ([[Mura (Japanese term)|mura]]). |
Recognition of the value of employees is also part of the principle of measured production rate ([[heijunka]]), as a level workload helps avoid overburdening people and equipment ([[Muri (Japanese term)|muri]]), but this is also intended to minimize waste (muda) and avoid uneven production levels ([[Mura (Japanese term)|mura]]). |
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These principles are also designed to ensure that only essential materials are employed (to avoid overproduction), that the work environment is maintained efficiently (the [[5S (methodology)|5S]] Program) to help people share workstations and to reduce time looking for needed tools, and that the technology used is reliable and thoroughly tested. |
These principles are also designed to ensure that only essential materials are employed (to avoid overproduction), that the work environment is maintained efficiently (the [[5S (methodology)|5S]] Program) to help people share workstations and to reduce time looking for needed tools, and that the technology used is reliable and thoroughly tested. |
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The concept of "standardized work" has been extended to managers referring to "standardized work for (executive) leadership" (or [[Leader Standard Work]]),<ref>{{Cite journal |last1=Mogaramedi |first1=Michael |last2=Nel |first2=Hannelie |last3=Marnewick |first3=Annlize |date=2020-08-30 |title=Impact of Standard Work for Leaders on Reducing Unused Employee Creativity During Lean Implementation |url=https://sajie.journals.ac.za/pub/article/view/1842 |journal=The South African Journal of Industrial Engineering |language=en |volume=31 |issue=2 |pages=1–10 |doi=10.7166/31-2-1842 |issn=2224-7890|doi-access=free }}</ref> looking at elements such as |
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* Definition of leadership that satisfies the needs of internal and external customers |
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* A precise description of business principles that leaders use to perform their work |
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* A standard skill set to keep business processes operating smoothly<ref>{{Cite web |title=Leadership & Organization Development Journal {{!}} Emerald Insight |url=http://www.emeraldinsight.com/0143-7739.htm |access-date=2024-02-25 |website=www.emeraldinsight.com |language=en}}</ref> |
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===Value to organization by developing people=== |
===Value to organization by developing people=== |
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Human development is the focus of principles 9 through 11. Principle 9 emphasizes the need to ensure that leaders embrace and promote the corporate philosophy. |
Human development is the focus of principles 9 through 11. Principle 9 emphasizes the need to ensure that leaders embrace and promote the corporate philosophy. According to Liker, this reflects a belief that these principles must be ingrained in employees to survive. The 10th principle emphasizes the need for individuals and work teams to embrace the company's philosophy, with teams of 4-5 people who are judged in success by their team achievements, rather than their solo efforts. Principle 11 looks to business partners, who are treated by Toyota much like they treat their employees. Toyota challenges them to do better and helps them achieve it. The automaker provides cross-functional teams to help suppliers discover and fix problems to become more robust, better suppliers. |
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===Solving root problems drives organizational learning=== |
===Solving root problems drives organizational learning=== |
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The final principles embrace a philosophy of problem-solving that emphasizes thorough understanding, [[consensus]]-based solutions |
The final principles embrace a philosophy of problem-solving that emphasizes thorough understanding, swiftly implemented [[Consensus decision-making|consensus]]-based solutions, continual reflection ([[hansei]]), and improvement ([[kaizen]]). The 12th principle ([[Genchi Genbutsu]]) sets out the expectation that managers will personally evaluate operations to understand situations and problems firsthand. Principle 13 encourages thorough consideration of possible solutions through a consensus process, with rapid implementation of decisions once reached ([[nemawashi]]). The final principle requires that Toyota be a "learning organization", continually reflecting on its practices and striving for improvement. According to Liker, becoming a learning organization involves criticizing every aspect of what one does. |
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==Translating the principles== |
==Translating the principles== |
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There is a question of [[Diffusion (business)|uptake]] of the principles now that Toyota has production operations in many |
There is a question of [[Diffusion (business)|uptake]] of the principles now that Toyota has production operations in many countries. While the corporate culture may have been quickly disseminated by word of mouth when Toyota manufacturing was only in Japan, with worldwide production, many different [[culture]]s must be taken into account.<ref name="Martin">{{cite news|last=Fackler |first=Martin |url= https://www.nytimes.com/2007/02/15/business/worldbusiness/15toyota.html?pagewanted=all |title=The 'Toyota Way' Is Translated for a New Generation of Foreign Managers |newspaper=The New York Times |date=15 February 2007 |accessdate=26 March 2012}}</ref> Concepts such as "mutual ownership of problems", or ''"[[Genchi Genbutsu|genchi genbutsu]]"'', (solving problems at the source instead of behind desks), and the ''"[[kaizen]] mind"'', (an unending sense of crisis behind the company's constant drive to improve), may be unfamiliar to North Americans and people of other cultures.<ref name="Martin"/> The automaker's increase in vehicle recalls may be due, in part, to "a failure by Toyota to spread its obsession for craftsmanship among its growing ranks of overseas factory workers and managers."<ref name="Martin"/> Toyota is attempting to address these needs by establishing training institutes in the United States and Thailand.<ref name="Martin"/> |
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==Results== |
==Results== |
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Toyota Way has been driven deeply into the psyche of employees at all levels that it has morphed from a strategy into an |
Toyota Way has been driven so deeply into the psyche of employees at all levels that it has morphed from a strategy into an essential element of the company's culture.<ref name="Heskett">{{cite book|url= https://archive.org/details/culturecyclehowt0000hesk |url-access= registration |quote=Toyota way so shocking that it may have led to some amount of denial as well as loyal customers. |page=[https://archive.org/details/culturecyclehowt0000hesk/page/130 130] |title=The culture cycle: how to shape the unseen force that transforms performance |first=James L |last=Heskett |publisher=FT Press |year=2012 |isbn=9780132779784 |accessdate=29 January 2014}}</ref> According to Masaki Saruta, author of several books on Toyota, "the real Toyota Way is a culture of control."<ref>{{cite news|url= http://articles.chicagotribune.com/2010-03-24/news/sc-biz-0325-toyota-man-20100324_1_toyota-motor-corp-toyota-officials-paul-nolasco |archive-url= https://web.archive.org/web/20140202224521/http://articles.chicagotribune.com/2010-03-24/news/sc-biz-0325-toyota-man-20100324_1_toyota-motor-corp-toyota-officials-paul-nolasco |url-status= dead |archive-date= 2 February 2014 |title=Toyota's rigid culture criticized in light of recalls - Automaker's Toyota Way handbook dictates details of employees' lives, even in their off time |newspaper=Chicago Tribune |date=24 March 2010 |first=John M. |last=Glionna |accessdate=29 January 2014}}</ref><ref>{{cite book|url= https://books.google.com/books?id=rAlcjg0QhGkC&q=Masaki+Saruta+Toyota+Way&pg=PA65 |page=65 |title=Inside the mind of Toyota: management principles for enduring growth |first=Satoshi |last=Hino |publisher=Productivity Press |year=2006 |isbn=9781563273001 |accessdate=29 January 2014}}</ref> A management consultancy perspective of the Toyota Way "was not only the value of teaching and training their entire workforce to continuously improve their jobs, but also the power of entrusting the entire workforce to do so to the betterment of all."<ref>{{cite web |last1=Armfield |first1=Dawn A. |title=Is Toyota Still Relevant? |url= https://www.valueflo.solutions/news-notes/2020/9/10/is-toyota-still-relevant-to-lean |work=ValueFlo Consulting |date=10 September 2020 |access-date=15 February 2024}}</ref> The Toyota Way thus rewards intense company loyalty that at the same time invariably reduces the voice of those who challenge authority.<ref>{{cite web|url= http://www.toyota-global.com/sustainability/csr_initiatives/stakeholders/employees/index3.html |title=Relations with Employees |work=Toyota Motors |archiveurl= https://web.archive.org/web/20140531013012/http://www.toyota-global.com/sustainability/csr_initiatives/stakeholders/employees/index3.html |archivedate=31 May 2014 |accessdate=25 March 2021}}</ref><ref>{{cite web |url= http://www.toyota.dk/Images/ToyotaCodeOfConduct_tcm200-635681.pdf |title=Toyota Code of Conduct |work=Toyota Motor (Europe) |date=October 2006 |accessdate=29 January 2014 |url-status=dead |archiveurl= https://web.archive.org/web/20120914012629/http://www.toyota.dk/Images/ToyotaCodeOfConduct_tcm200-635681.pdf |archivedate=14 September 2012}}</ref> "The Toyota Way of constructive criticism to reach a better way of doing things 'is not always received in good spirit at home.'"<ref>{{cite book|url= https://books.google.com/books?id=nrYWDniU9X8C&q=Atkins+noted+wryly+that+the+Toyota+Way+of+constructive+criticism+to+reach+a+better+way+of+doing+things+"is+not+always+received+in+good+spirit+at+home%22&pg=PA130 |page=130 |title=Corporate culture: getting it right |first=Naomi |last=Stanford |publisher=Wiley |year=2013 |isbn=9781118163276 |accessdate=25 March 2021}}</ref> The Toyota Way management approach at the automaker "worked until it didn't."<ref name="Heskett"/> |
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One consequence was when Toyota was given reports of sudden acceleration in its vehicles and the company faced |
One consequence was when Toyota was given reports of sudden acceleration in its vehicles, and the company faced an expensive recall situation. There were questions if Toyota's crisis was caused by the company losing sight of its principles.<ref>{{cite news|url= https://money.cnn.com/2010/03/10/autos/toyota_way.fortune/?section=magazines_fortune |title=Can the Toyota Way survive Toyota's ways? |first=Nin-Hai |last=Tseng |date=10 March 2010 |work=CNN Money |archiveurl= https://web.archive.org/web/20140203133111/https://money.cnn.com/2010/03/10/autos/toyota_way.fortune/?section=magazines_fortune |archivedate=3 February 2014 |accessdate=25 March 2021}}</ref> The Toyota Way did not address the problem and provide direction on what the automaker would be doing.<ref name="Ordonez">{{cite journal |url=http://www.rmmagazine.com/2010/12/01/when-the-toyota-way-went-wrong/ |title=When the Toyota Way Went Wrong |first=Edward |last=Ordonez |date=1 December 2010 |journal=Risk Management |accessdate=25 March 2021 |archive-date=24 February 2021 |archive-url=https://web.archive.org/web/20210224203901/http://www.rmmagazine.com/2010/12/01/when-the-toyota-way-went-wrong/ |url-status=dead }}</ref> Instead, managers protected the company.<ref name="Ordonez"/> They issued flat-out denials and placed the blame on others.<ref name="Ordonez"/> The consequence of the automaker's actions led to the [[2009–11 Toyota vehicle recalls]]. Although one of the Toyota Way principles is to "build a culture of stopping to fix problems to get quality right the first time," [[Akio Toyoda]], President and CEO, stated during Congressional hearings that the reason for the problems was that his "company grew too fast."<ref>{{cite web|url= http://www.gpo.gov/fdsys/pkg/CHRG-111hhrg58346/html/CHRG-111hhrg58346.htm |title=Hearing before the Committee on Oversight and Government Reform: Toyota gas pedals: is the public at risk |date=24 February 2010 |publisher=U.S. Government Printing Office, Serial No. 111-75 |accessdate=25 March 2021}}</ref> Toyota management had determined its goal was to become the world's largest automotive manufacturer.<ref>{{cite news|url= https://www.washingtonpost.com/wp-dyn/content/article/2010/02/12/AR2010021205371.html |title='Toyota Way' was lost on road to phenomenal worldwide growth |first=Blaine |last=Harden |newspaper=The Washington Post |date=13 February 2010 |accessdate=25 March 2021}}</ref> According to some management consultants, when the pursuit of growth took priority, the automaker "lost sight of the key values that gave it its reputation in the first place."<ref>{{cite web|url= http://www.cssp.com/CD0310b/SuccessSowsSeedsOfFailure/ |title=Success Sows the Seeds of Failure - Toyota's Complacency Causes Reputation to Crash |first=Denise |last=Harrison |work=Center for Simplified Strategic Planning |accessdate=25 March 2021}}</ref> |
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==See also== |
==See also== |
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* [[Kanban]]: |
* [[Kanban]]: just-in-time workflow management system at Toyota |
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==References== |
==References== |
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{{reflist|colwidth=30em}} |
{{reflist|colwidth=30em}} |
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==Further reading== |
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*{{cite book |last=Hino |first=Satoshi |title=Inside the Mind of Toyota: Management Principles for Enduring Growth |year=2005 |publisher=Productivity Press |isbn=9781563273001}} |
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*{{cite book |last1=Liker |first1=Jeffrey K. | last2=Meier |first2=David |title=The Toyota Way Fieldbook: A Practical Guide for Implementing Toyota's 4Ps |year=2005 |publisher=McGraw-Hill |isbn=9780071448932}} |
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{{DEFAULTSORT:Toyota}} |
{{DEFAULTSORT:Toyota}} |
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[[Category:Toyota]] |
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[[Category:Lean manufacturing]] |
[[Category:Lean manufacturing]] |
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[[Category:Organizational theory]] |
[[Category:Organizational theory]] |
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[[Category:Organizational culture]] |
[[Category:Organizational culture]] |
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[[Category:Japanese business terms]] |
[[Category:Japanese business terms]] |
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[[Category:Toyota Production System]] |
Latest revision as of 04:10, 11 September 2024
The Toyota Way is a set of principles defining the organizational culture of Toyota Motor Corporation.[1][2] The company formalized the Toyota Way in 2001, after decades of academic research into the Toyota Production System and its implications for lean manufacturing as a methodology that other organizations could adopt.[3] The two pillars of the Toyota Way are respect for people and continuous improvement.[4] Jeffrey K. Liker popularized the philosophy in his 2004 book, The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer.[5] Subsequent research has explored the extent to which the Toyota Way can be applied in other contexts.[6]
Background
[edit]The principles were first collated into a single document in the company's pamphlet "The Toyota Way 2001", to help codify the company's organizational culture. The philosophy was subsequently analyzed in the 2004 book The Toyota Way by industrial engineering researcher Jeffrey Liker and has received attention in business administration education and corporate governance.
Principles
[edit]The principles of the Toyota Way are divided into the two broad categories of continuous improvement and respect for human resources.[7][8][9] The standards for constant improvement include directives to set up a long-term vision, to engage in a step-by-step approach to challenges, to search for the root causes of problems, and to engage in ongoing innovation. The standards pertain to respect for individuals and incorporate ways of building appreciation and cooperation.
The system is summarized in 14 principles:[10]
- "Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals."
- "Create a continuous process flow to bring problems to the surface." Work processes are redesigned to eliminate waste (muda), such as overproduction and waiting times, through continuous improvement (kaizen).
- "Use 'pull' systems to avoid overproduction." A pull system produces only the required material after a subsequent operation signals a need.
- "Level out the workload (heijunka). (Work like the tortoise, not the hare.)" This principle aims to avoid overburdening people or equipment and creating uneven production levels (mura).
- "Build a culture of stopping to fix problems, to get quality right the first time." Quality takes precedence (Jidoka). Any employee can stop the process to signal a quality issue.
- "Standardized tasks and processes are the foundation for continuous improvement and employee empowerment."
- "Use visual control so no problems are hidden." This principle includes the 5S Program, steps that are used to make all workspaces efficient and productive, help people share workstations, reduce time looking for needed tools, and improve the work environment.
- "Use only reliable, thoroughly tested technology that serves your people and processes."
- "Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others." This principle argues that training and ingrained perspective are necessary for maintaining the organization.
- "Develop exceptional people and teams who follow your company's philosophy."
- "Respect your extended network of partners and suppliers by challenging them and helping them improve." The automaker intends to apply the same principles to suppliers that its employees use.
- "Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu)." Toyota managers are expected to experience operations firsthand to see how they can be improved.
- "Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi)."
- "Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen)." The general problem-solving technique to determine the root cause of a problem includes initial problem perception, clarification of the trouble, locating the cause, root cause analysis, applying countermeasures, reevaluating, and standardizing.
Research findings
[edit]In 2004, 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."[11]
According to Liker, the 14 principles of The Toyota Way are organized into four sections:
- long-term philosophy,
- the right process will produce the right results,
- add value to the organization by developing your people, and
- continuously solving root problems drives organizational learning.
Long-term philosophy
[edit]The first principle involves managing with a long-term view rather than for short-term gain. It reflects a belief that people need a purpose to find motivation and establish goals.
Right process will produce right results
[edit]The following seven principles are focused on process with an eye towards a quality outcome. Following these principles, work processes are redesigned to eliminate waste (muda) through continuous improvement — kaizen. The seven types of muda are (1) overproduction; (2) waiting, time on hand; (3) unnecessary transport or conveyance; (4) overprocessing or incorrect processing; (5) excess inventory; (6) motion; and (7) defects.
The principles in this section empower employees despite the automaker's bureaucratic processes. Any employee in the Toyota Production System has the authority to stop production to signal a quality issue, emphasizing that quality takes precedence (Jidoka). The way the Toyota bureaucratic system is implemented allows for continuous improvement (kaizen) from the people affected by that system so that any employee may aid in the growth and improvement of the company.
Recognition of the value of employees is also part of the principle of measured production rate (heijunka), as a level workload helps avoid overburdening people and equipment (muri), but this is also intended to minimize waste (muda) and avoid uneven production levels (mura).
These principles are also designed to ensure that only essential materials are employed (to avoid overproduction), that the work environment is maintained efficiently (the 5S Program) to help people share workstations and to reduce time looking for needed tools, and that the technology used is reliable and thoroughly tested.
The concept of "standardized work" has been extended to managers referring to "standardized work for (executive) leadership" (or Leader Standard Work),[12] looking at elements such as
- Definition of leadership that satisfies the needs of internal and external customers
- A precise description of business principles that leaders use to perform their work
- A standard skill set to keep business processes operating smoothly[13]
Value to organization by developing people
[edit]Human development is the focus of principles 9 through 11. Principle 9 emphasizes the need to ensure that leaders embrace and promote the corporate philosophy. According to Liker, this reflects a belief that these principles must be ingrained in employees to survive. The 10th principle emphasizes the need for individuals and work teams to embrace the company's philosophy, with teams of 4-5 people who are judged in success by their team achievements, rather than their solo efforts. Principle 11 looks to business partners, who are treated by Toyota much like they treat their employees. Toyota challenges them to do better and helps them achieve it. The automaker provides cross-functional teams to help suppliers discover and fix problems to become more robust, better suppliers.
Solving root problems drives organizational learning
[edit]The final principles embrace a philosophy of problem-solving that emphasizes thorough understanding, swiftly implemented consensus-based solutions, continual reflection (hansei), and improvement (kaizen). The 12th principle (Genchi Genbutsu) sets out the expectation that managers will personally evaluate operations to understand situations and problems firsthand. Principle 13 encourages thorough consideration of possible solutions through a consensus process, with rapid implementation of decisions once reached (nemawashi). The final principle requires that Toyota be a "learning organization", continually reflecting on its practices and striving for improvement. According to Liker, becoming a learning organization involves criticizing every aspect of what one does.
Translating the principles
[edit]There is a question of uptake of the principles now that Toyota has production operations in many countries. While the corporate culture may have been quickly disseminated by word of mouth when Toyota manufacturing was only in Japan, with worldwide production, many different cultures must be taken into account.[14] Concepts such as "mutual ownership of problems", or "genchi genbutsu", (solving problems at the source instead of behind desks), and the "kaizen mind", (an unending sense of crisis behind the company's constant drive to improve), may be unfamiliar to North Americans and people of other cultures.[14] The automaker's increase in vehicle recalls may be due, in part, to "a failure by Toyota to spread its obsession for craftsmanship among its growing ranks of overseas factory workers and managers."[14] Toyota is attempting to address these needs by establishing training institutes in the United States and Thailand.[14]
Results
[edit]Toyota Way has been driven so deeply into the psyche of employees at all levels that it has morphed from a strategy into an essential element of the company's culture.[15] According to Masaki Saruta, author of several books on Toyota, "the real Toyota Way is a culture of control."[16][17] A management consultancy perspective of the Toyota Way "was not only the value of teaching and training their entire workforce to continuously improve their jobs, but also the power of entrusting the entire workforce to do so to the betterment of all."[18] The Toyota Way thus rewards intense company loyalty that at the same time invariably reduces the voice of those who challenge authority.[19][20] "The Toyota Way of constructive criticism to reach a better way of doing things 'is not always received in good spirit at home.'"[21] The Toyota Way management approach at the automaker "worked until it didn't."[15]
One consequence was when Toyota was given reports of sudden acceleration in its vehicles, and the company faced an expensive recall situation. There were questions if Toyota's crisis was caused by the company losing sight of its principles.[22] The Toyota Way did not address the problem and provide direction on what the automaker would be doing.[23] Instead, managers protected the company.[23] They issued flat-out denials and placed the blame on others.[23] The consequence of the automaker's actions led to the 2009–11 Toyota vehicle recalls. Although one of the Toyota Way principles is to "build a culture of stopping to fix problems to get quality right the first time," Akio Toyoda, President and CEO, stated during Congressional hearings that the reason for the problems was that his "company grew too fast."[24] Toyota management had determined its goal was to become the world's largest automotive manufacturer.[25] According to some management consultants, when the pursuit of growth took priority, the automaker "lost sight of the key values that gave it its reputation in the first place."[26]
See also
[edit]- Kanban: just-in-time workflow management system at Toyota
References
[edit]- ^ Marksberry, Phillip (31 May 2011). "The Toyota Way – a quantitative approach". International Journal of Lean Six Sigma. 2 (2): 132–150. doi:10.1108/20401461111135028. ISSN 2040-4166. Retrieved 15 February 2024.
- ^ Soliman, Mohammed Hamed Ahmed (March 2021). Toyota Standard Work: The Foundation of Kaizen. KDP, PersonalLean. ISBN 979-8721554254.
{{cite book}}
: CS1 maint: date and year (link) - ^ Jayamaha, Nihal P.; Wagner, Jürgen P.; Grigg, Nigel P.; Campbell-Adam, Nicky M.; Harvie, Warwick (July 2014). "Testing a theoretical model underlying the 'Toyota Way' – an empirical study involving a large global sample of Toyota facilities". International Journal of Production Research. 52 (14): 4332–4350. doi:10.1080/00207543.2014.883467. S2CID 109063964.
- ^ Liker, Jeffrey K. (2008). Toyota Culture: The Heart and Soul of the Toyota Way. New York: McGraw-Hill. pp. xxvii. ISBN 9780071492171.
- ^ Toyota Way Fieldbook (First ed.). McGraw-Hill Education. 2006. ISBN 978-0-07-144893-2.
- ^ Lander, E.; Liker, J. K. (August 2007). "The Toyota Production System and art: making highly customized and creative products the Toyota way". International Journal of Production Research. 45 (16): 3681–3698. doi:10.1080/00207540701223519. S2CID 110872906.
- ^ "Environmental & Social Report 2003" (PDF). Toyota Motor (Japan). p. 80. Archived from the original (PDF) on 29 November 2004. Retrieved 25 March 2021.
- ^ Toyota Motor Corporation Annual Report, 2003, page 19. "The Toyota Way, which has been passed down since the Company's founding, is a unique set of values and manufacturing ideals. Clearly, our operations are going to become more and more globalized. With this in mind, we compiled a booklet, The Toyota Way 2001, in order to transcend the diverse languages and cultures of our employees and to communicate our philosophy to them." (Mr. Fujio Cho, President, Toyota Motor Corporation.)
- ^ "Sustainability Report 2009" (PDF). Toyota Motor (Global). p. 54. Archived from the original (PDF) on 31 July 2013. Retrieved 25 March 2021.
- ^ Liker, Jeffrey K. (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. McGraw-Hill. ISBN 9780071392310.
- ^ Liker, Jeffrey (2004). "The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS" (PDF). University of Michigan. p. 36. Archived from the original (PDF) on 15 September 2012. Retrieved 25 March 2021.
- ^ Mogaramedi, Michael; Nel, Hannelie; Marnewick, Annlize (30 August 2020). "Impact of Standard Work for Leaders on Reducing Unused Employee Creativity During Lean Implementation". The South African Journal of Industrial Engineering. 31 (2): 1–10. doi:10.7166/31-2-1842. ISSN 2224-7890.
- ^ "Leadership & Organization Development Journal | Emerald Insight". www.emeraldinsight.com. Retrieved 25 February 2024.
- ^ a b c d Fackler, Martin (15 February 2007). "The 'Toyota Way' Is Translated for a New Generation of Foreign Managers". The New York Times. Retrieved 26 March 2012.
- ^ a b Heskett, James L (2012). The culture cycle: how to shape the unseen force that transforms performance. FT Press. p. 130. ISBN 9780132779784. Retrieved 29 January 2014.
Toyota way so shocking that it may have led to some amount of denial as well as loyal customers.
- ^ Glionna, John M. (24 March 2010). "Toyota's rigid culture criticized in light of recalls - Automaker's Toyota Way handbook dictates details of employees' lives, even in their off time". Chicago Tribune. Archived from the original on 2 February 2014. Retrieved 29 January 2014.
- ^ Hino, Satoshi (2006). Inside the mind of Toyota: management principles for enduring growth. Productivity Press. p. 65. ISBN 9781563273001. Retrieved 29 January 2014.
- ^ Armfield, Dawn A. (10 September 2020). "Is Toyota Still Relevant?". ValueFlo Consulting. Retrieved 15 February 2024.
- ^ "Relations with Employees". Toyota Motors. Archived from the original on 31 May 2014. Retrieved 25 March 2021.
- ^ "Toyota Code of Conduct" (PDF). Toyota Motor (Europe). October 2006. Archived from the original (PDF) on 14 September 2012. Retrieved 29 January 2014.
- ^ Stanford, Naomi (2013). "is+not+always+received+in+good+spirit+at+home%22&pg=PA130 Corporate culture: getting it right. Wiley. p. 130. ISBN 9781118163276. Retrieved 25 March 2021.
- ^ Tseng, Nin-Hai (10 March 2010). "Can the Toyota Way survive Toyota's ways?". CNN Money. Archived from the original on 3 February 2014. Retrieved 25 March 2021.
- ^ a b c Ordonez, Edward (1 December 2010). "When the Toyota Way Went Wrong". Risk Management. Archived from the original on 24 February 2021. Retrieved 25 March 2021.
- ^ "Hearing before the Committee on Oversight and Government Reform: Toyota gas pedals: is the public at risk". U.S. Government Printing Office, Serial No. 111-75. 24 February 2010. Retrieved 25 March 2021.
- ^ Harden, Blaine (13 February 2010). "'Toyota Way' was lost on road to phenomenal worldwide growth". The Washington Post. Retrieved 25 March 2021.
- ^ Harrison, Denise. "Success Sows the Seeds of Failure - Toyota's Complacency Causes Reputation to Crash". Center for Simplified Strategic Planning. Retrieved 25 March 2021.