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THE TOYOTA WAY
PRINCIPLES 6 , 7 , 8
Submitted by :
Group 4
Thanu Ann Peter
Vanshaj Sehrawat
Varsha Advani
Vipin Vinod
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The Toyota Way
People - backbone of successfulimplementation
Tools and techniques that help peoplefor continuous improvement
Four broad Sections Long term philosophy
The right process will produce the right
resultsAdd value to the organization by developing
your people
Continuously solving root problems drives
organizational learning
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Standardized tasks are the foundation forcontinuous improvement and employeeempowerment
Standardization Takt time
Sequence Standardized stock on hand
Identical processes at all manufacturinglocations across the globe
Key driver for Continuous improvement
Quality zero defects
Audit by superiors to ensure conformance to
standardized work sheet
Principle 6
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Employee empowerment Toyota follows neither organic nor
mechanistic model
Study by Paul Adler at NUMMI plant
Principle 6
COERCIVE BUREAUCRACY Rigid rule enforcement
Extensive written rules Hierarchy controls
ENABLING BUREAUCRACY Empowered employees
Rules as enabling tools Hierarchy supports learning
AUTOCRATIC
Top down control
Minimum written rules
Hierarchy controls
ORGANIC
Empowered employees
Minimum rules
Little hierarchy
SOCIAL STRUCTURECoercive Enabler
TE
CHNICALSTRUCTURE
Low
b
ureaucracy
High
bur
eaucrac
y
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Employee empowerment Toyota follows neither organic nor
mechanistic model
Study by Paul Adler at NUMMI plant
Principle 6
COERCIVE BUREAUCRACY Rigid rule enforcement
Extensive written rules Hierarchy controls
ENABLING BUREAUCRACY Empowered employees
Rules as enabling tools Hierarchy supports learning
AUTOCRATIC
Top down control
Minimum written rules
Hierarchy controls
ORGANIC
Empowered employees
Minimum rules
Little hierarchy
SOCIAL STRUCTURECoercive Enabler
TE
CHNICALSTRUCTURE
Low
b
ureaucracy
High
bur
eaucrac
y
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Democratic Taylorism Worker is an analyst and a problem solver
Standardizing for New Product launch Pilot teamworkers from all areas of the
factory
Work in hand with engineering to developinitial standardized work
Passed over to production teams forimprovement
Learning achieved Technical Design and production
Team work
Principle 6
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Standardization of training module Ensured compliance throughout career
through checklist books
Key Requisites Specific yet room for flexibility
Ex : Curvature of hood and air resistance varies
from model to model
Personnel have to improve the standards
Adding own ideas to improvement leads to
Satisfaction
Appreciation
Principle 6
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Principle 7
Use visual control so no problems are
hidden
Basic principle : Clean it up and make it
visual
5 Ss SORT
STRAIGHTEN
SHINESTANDARDIZE
SUSTAIN
Eliminatewaste
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Used to make problems visible Visual control of a well planned system
How work should be done
Deviation from standard Design of JIT information to ensure
Fast and proper execution of processes
Ex: Shadow tool boards Indicators for inventory levels
Charts and graphs
Used to ensure adherence to Kanban andAndon
Principle 7
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Enhancement of flow in a service partswarehouse
Warehouse at Hebron, Kentucky
Biggest Toyota service parts facility in theworld
843000 square feet
319 personnel
154000 parts per day from 400 suppliers and
stocked in shelves
Caters to nine distribution centers and
subsequently Toyota dealers
Principle 7
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Home positions for similar sized parts Powerful computer system
Volume of each part
Physical location
Aggregation of small parts in a standard sizedbox for a particular location
Part picking route developed by an algorithmwhich can be completed in 15 minutes
Process control boards Monitoring progress vs task time
Green magnet On time
Red magnet Running late
Principle 7
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Benefits Industry leaders
Productivity
System fill rate Facing fill rate
Visual control of Office work
Audit of file cabinet by the president/vice
president
Deviations reflect on the grades and
evaluation
Principle 7
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OBEYA BIG ROOM Conference war room Chief engineer and heads of major engineering
groups
Visual management tools indicating status of
each area and deviations Benefits
Fast and accurate decision making
Improves communication
Sense of team integration
A3 reports
Balance of technology and human systems
for visual control
Principle 7
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PRINCIPLE 8
Use only reliable, thoroughly testedtechnology that serves your people
and processes
Careful acquiring of technology thatsupports
People
Process Values
More focus on implementation of value
added technology
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PRINCIPLE 8
Evaluation by all key stake holders Nature of value added work being
performed
New opportunities to eliminate waste Pilot area to improve the process with
existing resources
Comparison of results with introduction of
new technology
Adopted only if it adds extra value
Design and use to support continuous
flow
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IT services are employed for information Retrieval
Exchange
Processing
Technology only as a tool/enabler/support Ex:
American Auto parts supplier of Toyota whichfocused less on IT
Toyotas Chicago parts distribution centreregretted the adoption of the Automated rotaryrack system
PRINCIPLE 8
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Monarch Project
Two year systems initiative
To improve demand forecasting
Inventory planning
Joint project by logistics and IT
specialists
Procurement analysts at part centers
Supplemented by Communication
between
Inventory group
PRINCIPLE 8
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IT in Toyotas product development
process Comprehensive stress analysis using CAD
Slow shift to CATIA after a lot of
customization Collaborative vehicle development using
digital engineering
Lot of testing and visualization digitally prior
to adoption Adherence to Jidoka Ex : Assemblies for instrument panels are done
digitally in 3D
Digital checklists of good and bad design
Engineering animation
PRINCIPLE 8
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Role of technology Flexible body shop
Multiple car bodies in the same shop
Rapid change over from one model to the
other
Relatively expensive due tocustomized pallets
Replaced by robots programmed foreach car body Referred to as The Blue sky system
Also Global body line
PRINCIPLE 8
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Benefits Facilitates build to order approach
Reduced equipment maintenance cost
Less down time
Lean , simple and speedy
Key to success Gradual implementation
Attention to detail visual inspectionAcid test to prove that it Supports people and processes
Adds value before it is implemented broadly
PRINCIPLE 8
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THANK YOU