Anuj Nijhon- The Toyota Way

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The Toyota Way

14 Management Principles

Author: Jeffrey K.Liker

ANUJ NIJHON


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About The Author

Dr. Jeffrey K.Liker is Professor of Industrial and

operations Engineering at the University of

Michigan. He is the director of the Japan

Technology Management Program (JTMP) and

co-director of lean manufacturing program at

university of Michigan that offers a ten day

lean manufacturing certificate and five daylean development certificate. Dr Liker has

authored over 65 articles and five books.


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Principle 1

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Base your management decisions on a long-

term philosophy, even at the expense of

short-term financial goals.

1. Align the organization toward a

purpose greater thanmaking money.

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

3. Be responsible. Acceptresponsibility for your conductand maintain and improve theskills that enable you to produceadded value.


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Principle 2

Create a continuous process flow to bring

problems to the surface.

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1.Redesign processes to achievecontinuous flow.

2.Create flow to move materialand information fast.

3.Link processes and people sothat problems surface right away.

4.Make flow obvious throughoutyour organizational culture.


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Principle 3

Use pull systems to avoid overproduction.

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1.Provide downstream customersin the process with what they want,

when they want it, and in theamount that they want.

2. Pull vs PushMaterial replenishment initiated byconsumption is the basis for

just-in-time.Just-in Time - an organizedsystem of inventory buffers.


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Principle 4

Level out the workload

Benefits of leveling schedule

1- Flexibility to make what the customer wants

when they want it.2- Reduced risk of unsold goods.

3- Balanced used of labor and goods.

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Principle 5

Build a culture of stopping to fix problems, to

get quality right the first time.

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Principle 6

Standardized tasks and processes are thefoundation for continuous improvement and

employee empowerment.

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Principle 7

Use visual control so no problems are hidden.

Simple visuals to support

work flow

Determine deviation

from standard

Reduce report size

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Sort

What tokeep anddispose

Straighten

(orderliness)

place foreverything

Shine

inspection

affect quality

Standardize

procedure

maintain 1st3

Sustain

maintain

stabilizedworkplace Eliminate

Waste


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Principle 8

Use only reliable, thoroughly testedtechnology that serves your people and

processes.

Support people not replace them

Analyze impact of new technologies on existing

processes

Conflict company philosophy or

principle?Involve stake holders

Encourage to consider new

technologies while seeking for new

approach

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Principle 9

Grow leaders who thoroughly understand thework, live the philosophy, and teach it to

others.

Dont buy leaders from outside

Leaders job: not only

Accomplishing task

Having good people skills

Role models of companys philosophy

Must understand daily work in great details

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Principle 10

Develop exceptional people and teams whofollow your companys philosophy.

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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.

Maslows Need Hierarchy theory. Herzbergs Job Enrichment theory .

Taylors Scientific Management theory. Behavior Modification theory. Goal Setting theory


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Principle 11

Respect your extended network of partnersand suppliers by challenging them and

helping them improve.

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

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Principle 12

Go and see for yourself to thoroughlyunderstand the situation.

Think and speak based on personally verified informationand data.

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 youwhether your common sense was correct.

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Principle 13

Make decisions slowly by consensus, thoroughlyconsidering all options; implement decisions rapidly

Five major elements in decision making process

1- Finding out what is really going on.

2- Understanding the causes of problems askingwhy five times.

3- Broadly considering alternative solutions and

developing a detailed rationale for preferred or

selected solution.4- Building consensus with team employee and

suppliers.

5- Using effective and efficient communication to

convey steps 1 to 4.

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Principle 14

Become a learning organization throughrelentless reflection and continuous

improvement .

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Lessons of

organizational behavioof the book


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Difficult Times Require Special Actions

Leadership must consider future needs

Intensify focus on people developmentand improvement activities

Involve people in pursuit of costreductions


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People are the Most Important Part of

Toyota

Only people can think and solve

problems

Only people can understand the

needs of customers

Only people can support theprocess


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There is no Short Cut to Talent

Development

Talent is developed through effortand hard work

Learning occurs best in smallincrements spread over time

Many non-job specific skills to learn

LeadershipProblem Solving

Developing others


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Most Desired Traits at Toyota

Job Fit Motivation

Problem identification and solving

Adaptability

Team Leadership and Team

Membership Initiative


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The 4 Steps of Talent Development

1. Prepare the organization todevelop exceptional people

2. Identify critical knowledge

3. Effectively transfer

knowledge

4. Verify learning and success


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Step 1: Prepare theOrganization


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Define the Need

Begin by understanding theneeds of your organization

What is the purpose ofdeveloping people?

It should be more than aproject

Interest in mutual prosperity


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Step 2: Identify CriticalKnowledge


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Identify Major Steps and Key Points

Major Steps define WHATto do

Key Points explain HOW to do the MajorStep

Key Points are important items necessaryexplain the proper way to complete thetask

Each Key Point should have a valid reasonwhy it is important


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Importance of Key Points

Key Points are related to the mostcritical and important methods ofdoing the work

Critical items must be verydetailed and specific

Items of low importance do notneed key points


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Step 3: TransferKnowledge to Others

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Step 1. Prepare the Student

Put the student at ease

State the Job Name

Find out what the student alreadyknows about the job

Get the student interested in learning

the job

Place the student in the correct position

to learn

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Step 2. Present the Operation Teacher demonstrates 1 Major Step at a time

as student observes

Teacher demonstrates again as student

observes each Major Step & Key Point

Teacher demonstrates again as student

observes each Major Step, Key Point, &

Reasons

Explain Clearly, Completely, and Patiently

Present no more than worker can do.

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Step 3. Try out Performance

Have the student try the job while you

correct mistakes

Student explains the Major Step as the

job is doneagain

Student explains the Key Points as the

job is done again

Student explains the Reasons as the job

is done again

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Step 4: Verify learningand Success

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Step 4. Follow-up

Assign the person a task Tell the student where to go for

help

Check their progress frequently

Encourage them to ask questions

Gradually reduce coaching follow-

up

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Job Instruction Motto

If the student hasnt

learned,The instructor hasnt

taught

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THANK YOU

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Anuj Nijhon- The Toyota Way