the toyota way (SCIT) pune PPt

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

The Toyota WayThe Toyota Way14 Management Principles14 Management Principles

Khushbu Desai (07030244003)Khushbu Desai (07030244003)

Aditi Chaplot (07030244001)Aditi Chaplot (07030244001)

Pooja Mantri (07030244010)Pooja Mantri (07030244010)

Sushant Kumar (07030244024) Sushant Kumar (07030244024)

Shailesh Borah (07030244022)Shailesh Borah (07030244022)

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Since Toyota’s founding we have adhered to the core principle of contributingto society through the practice of manufacturing high-qualityproducts and services. Our business practices and activities based on thiscore principle created values, beliefs and business methods that over theyears have become a source of competitive advantage. These are themanagerial values and business methods that are known collectively asthe Toyota Way.

—Fujio Cho, President Toyota

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 1Principle 114131211109876543211

• Base your management decisions on a long-Base your management decisions on a long-term philosophy, even at the expense of term philosophy, even at the expense of short-term financial goals.short-term financial goals.

1. Align the organization toward a purpose greater than “making money.”

2. Generate value for the customer, society and the economy.

3. Be responsible. Accept responsibility for your conduct and maintain and improve the skills that enable you to produce added value.

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 2Principle 2• Create a continuous process flow to bring Create a continuous process flow to bring

problems to the surface.problems to the surface.

141312111098765432211

1.Redesign processes to achieve continuous flow.

2.Create flow to move material and information fast.

3.Link processes and people so that problems surface right away.

4.Make flow obvious throughout your organizational culture.

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 3Principle 3• Use “pull” systems to avoid overproduction.Use “pull” systems to avoid overproduction.

1413121110987654332211

1.Provide downstream customers in the process with what they want, when they want it, and in the amount that they want.

2. Pull vs PushMaterial replenishment initiated byconsumption is the basis for just-in-time. Just-in Time - an organized system of inventory buffers.

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 4Principle 4• Level out the workload (heijunka). (Work like Level out the workload (heijunka). (Work like

the tortoise, not the hare.)the tortoise, not the hare.)

14131211109876544332211

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 5Principle 5• Build a culture of stopping to fix problems, to Build a culture of stopping to fix problems, to

get quality right the first time.get quality right the first time.

141312111098765544332211

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 6Principle 6• Standardized tasks and processes are the Standardized tasks and processes are the

foundation for continuous improvement and foundation for continuous improvement and employee empowerment.employee empowerment.

1413121110987665544332211

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 7Principle 7• Use visual control so no problems are hidden.Use visual control so no problems are hidden.

Simple visuals to support work flow

Determine deviation from standard

Reduce report size

14131211109877665544332211

Eliminate Waste

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 8Principle 8• Use only reliable, thoroughly tested Use only reliable, thoroughly tested

technology that serves your people and technology that serves your people and processes.processes.

Support people not replace them

Analyze impact of new technologies on existing processes

Conflict company philosophy or principle?

Involve stake holdersInvolve stake holders

Encourage to consider new Encourage to consider new technologies while seeking for new technologies while seeking for new approachapproach

141312111098877665544332211

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 9Principle 91413121110998877665544332211

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 10Principle 10• Develop exceptional people and teams who Develop exceptional people and teams who

follow your company’s philosophy.follow your company’s philosophy.

141312111010998877665544332211

• Create Strong stable culture.• Train Exceptional Individual & Teams to work

with corporate philosophy.• Use Cross Functional Team• Make a Continuous effort towards Teamwork.• Understand & Use Motivation theory.

• Maslow’s Need Hierarchy theory.• Herzberg’s Job Enrichment theory .• Taylor’s Scientific Management theory.• Behavior Modification theory.• Goal Setting theory

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 11Principle 11• Respect your extended network of partners Respect your extended network of partners

and suppliers by challenging them and and suppliers by challenging them and helping them improve.helping them improve.

• Maintain Principle of partnership• Acquire new suppliers.• Enhance relations with existing suppliers. • Teach “ The Toyota Way ”.

14131211111010998877665544332211

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 12Principle 12• Go and see for yourself to thoroughly Go and see for yourself to thoroughly

understand the situation (genchi genbutsu).understand the situation (genchi genbutsu).

• Genchi (actual location) genbutsu (actual material or product)…also known as going to the gemba.

• Confirm the fact yourself.• Solve problem by going to root causes.• The Geography of thought.• Think & speak based on personally verified data.

“Common sense will tell you the answer, but collecting data and then understanding the facts will tell you whether your common sense was correct.”

1413121211111010998877665544332211

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 13Principle 13• Make decisions slowly by consensus, Make decisions slowly by consensus,

thoroughly considering all options; thoroughly considering all options; implement decisions rapidly (nemawashi).implement decisions rapidly (nemawashi).

141313121211111010998877665544332211

Decide andAnnounce

Seek IndividualInput, thenDecide andAnnounce

Seek GroupInput, thenDecide andAnnounce

GroupConsensus,

ManagementApproval

GroupConsensus,With FullAuthority

Level of

Involv

em

en

t

Time

• Decision Making is Highly Situational• Philosophy is to seek Maximum Involvement for Each Situation

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Principle 14Principle 14• Become a learning organization through Become a learning organization through

relentless reflection (hansei) and continuous relentless reflection (hansei) and continuous improvement (kaizen).improvement (kaizen).

14141313121211111010998877665544332211

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

Leveled Production (Heijunka)

Stable and Standardized Processes

Visual Management

Toyota Way Philosophy

Just-in-TimeRight Part, Right

Amount, Right Time

• Take Time Planning• Continuous Flow • Pull System • Quick Changeover • Integrated Logistics

Jidoka(In-station Quality)

Make ProblemsVisible

• Automatic Stops • Andon • Person – Machine

Separation • Error Proofing • In-station Quality

Control • Solve Root Cause of Problems (5 Why’s)

Best Quality – Lowest Cost – Shortest Lead Time – Best Safety – High Morale

Through shortening the production flow by eliminating waste

People & Teamwork• Selection • Common Goals • Ringi Decision Making• Cross – Trained

Waste Reduction• Genchi Genbutsu • 5 Why’s • Eyes for Waste • Problem Solving

Continuous Improvement (kaizen)

Toyota Production System HouseToyota Production System House

The

Toyo

ta W

ay -

14 M

anag

emen

t Prin

cipl

esTh

e To

yota

Way

- 14

Man

agem

ent P

rinci

ples

THANK YOUTHANK YOU