The Toyota Way
Encyclopedia
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.
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." The system can be summarized in 14 principles.
According to Liker, the 14 principles of The Toyota Way are organized in four sections: I) Long-Term Philosophy, II) The Right Process Will Produce the Right Results, III) Add Value to the Organization by Developing Your People, and IV) Continuously Solving Root Problems Drives Organizational Learning.
. 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 in spite of the bureaucratic processes of Toyota, as 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 bureacratic system is implemented is intended to allow 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 work stations and to reduce time looking for needed tools, and that the technology used is reliable and thoroughly tested.
) and improvement (kaizen
). The 12th principle (Genchi Genbutsu
) sets out the expectation that managers will personally evaluate operations so that they have a firsthand understanding of situations and problems. 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, the process of becoming a learning organization involves criticizing every aspect of what one does.
of the principles now that Toyota has production operations in many different countries around the world. As a New York Times article notes, while the corporate culture may have been easily disseminated by word of mouth when Toyota manufacturing was only in Japan, with worldwide production, many different culture
s must be taken into account. 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. A recent 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." Toyota is attempting to address these needs by establishing training institutes in the United States and in Thailand.
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.Researcher's Findings - 14 Principles
In 2004, Dr. Jeffrey Liker, a University of MichiganUniversity of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
professor of industrial engineering
Industrial engineering
Industrial engineering is a branch of engineering dealing with the optimization of complex processes or systems. It is concerned with the development, improvement, implementation and evaluation of integrated systems of people, money, knowledge, information, equipment, energy, materials, analysis...
, 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." The system can be summarized in 14 principles.
According to Liker, the 14 principles of The Toyota Way are organized in four sections: I) Long-Term Philosophy, II) The Right Process Will Produce the Right Results, III) Add Value to the Organization by Developing Your People, and IV) Continuously Solving Root Problems Drives Organizational Learning.
Section I — Long-Term Philosophy
The first principle involves managing with a long-view rather than for short-term gain. It reflects a belief that people need purpose to find motivation and establish goals.Section II — The Right Process Will Produce the Right Results
The next seven principles are focused on process with an eye towards quality outcome. Following these principles, work processes are redesigned to eliminate waste (muda) through the process of continuous improvement — kaizenKaizen
, Japanese for "improvement", or "change for the better" refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, game development, and business management. It has been applied in healthcare, psychotherapy, life-coaching, government,...
. 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 in spite of the bureaucratic processes of Toyota, as any employee in the Toyota Production System
Toyota Production System
The Toyota Production System is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices. The TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers...
has the authority to stop production to signal a quality issue, emphasizing that quality takes precedence (Jidoka). The way the Toyota bureacratic system is implemented is intended to allow 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
Muri (Japanese term)
Muri is a Japanese term for overburden, unreasonableness or absurdity, which has become popularized in the West by its use as a key concept in the Toyota Production System.-Avoidance of muri in Toyota manufacturing:...
), but this is also intended to minimize waste (muda) and avoid uneven production levels (mura
Mura (Japanese term)
Mura is traditional general Japanese term for unevenness, irregularity or inconsistency in physical matter or human spiritual condition. It is also a key concept in performance improvement systems such as the Toyota Production System. Mura is one of the three types of waste . Waste reduction is an...
).
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 work stations and to reduce time looking for needed tools, and that the technology used is reliable and thoroughly tested.
Section III — Add Value to the Organization by Developing Your People
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. This reflects, according to Liker, a belief that the principles have to be ingrained in employees to survive. The 10th principle emphasizes the need of 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 individual 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 to achieve it, providing cross functional teams to help suppliers discover and fix problems so that they can become a stronger, better supplier.Section IV — Continuously Solving Root Problems Drives Organizational Learning
The final principles embrace a philosophy of problem solving that emphasizes through understanding, consensus-based solutions swiftly implemented and continual reflection (hanseiHansei
is a central idea in Japanese culture. Its meaning is to acknowledge your own mistake and to pledge improvement. .An example would be Japanese politicians involved in corruption...
) and improvement (kaizen
Kaizen
, Japanese for "improvement", or "change for the better" refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, game development, and business management. It has been applied in healthcare, psychotherapy, life-coaching, government,...
). The 12th principle (Genchi Genbutsu
Genchi Genbutsu
means "go and see" and it is a key principle of the Toyota Production System. It suggests that in order to truly understand a situation one needs to go to 'gemba' or, the 'real place' - where work is done.-Application:...
) sets out the expectation that managers will personally evaluate operations so that they have a firsthand understanding of situations and problems. Principle 13 encourages thorough consideration of possible solutions through a consensus process, with rapid implementation of decisions once reached (nemawashi
Nemawashi
Nemawashi in Japanese means an informal process of quietly laying the foundation for some proposed change or project, by talking to the people concerned, gathering support and feedback, and so forth...
). The final principle requires that Toyota be a "learning organization", continually reflecting on its practices and striving for improvement. According to Liker, the process of becoming a learning organization involves criticizing every aspect of what one does.
Translating the principles
There is a question of uptakeUptake
Uptake may refer to:*Diffusion , the acceptance or adoption of a new product or idea.*Absorption, especially of food or nutrient by an organism. **Mineral uptake, by plants...
of the principles now that Toyota has production operations in many different countries around the world. As a New York Times article notes, while the corporate culture may have been easily disseminated by word of mouth when Toyota manufacturing was only in Japan, with worldwide production, many different culture
Culture
Culture is a term that has many different inter-related meanings. For example, in 1952, Alfred Kroeber and Clyde Kluckhohn compiled a list of 164 definitions of "culture" in Culture: A Critical Review of Concepts and Definitions...
s must be taken into account. Concepts such as “mutual ownership of problems,” or “genchi genbutsu
Genchi Genbutsu
means "go and see" and it is a key principle of the Toyota Production System. It suggests that in order to truly understand a situation one needs to go to 'gemba' or, the 'real place' - where work is done.-Application:...
,” (solving problems at the source instead of behind desks), and the “kaizen
Kaizen
, Japanese for "improvement", or "change for the better" refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, game development, and business management. It has been applied in healthcare, psychotherapy, life-coaching, government,...
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. A recent 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." Toyota is attempting to address these needs by establishing training institutes in the United States and in Thailand.
See also
- The India WayThe India WayThe India Way: How India’s Top Business Leaders Are Revolutionizing Management is published by the Harvard Business Press. It's a non-fictional book written by Peter Cappelli, Harbir Singh, Jitendra Singh and Michael Useem of the Wharton School at the University of Pennsylvania. The book was...
- the modern management book, after the Toyota Way - KaroshiKaroshi, which can be translated literally from Japanese as "death from overwork", is occupational sudden death. Although this category has a significant count, Japan is one of the few countries that reports it in the statistics as a separate category...
- 2010 Toyota Recall