The Toyota Way

The Toyota Way Homework - Donna Bitar

The article “The Toyota Way” by the professor of industrial and Operations Engineering Jeffrey K. Liker explains the management principles and business philosophy behind Toyota's worldwide reputation for quality and reliability. Moreover it provides the audience with Toyota's 14 principles which can improve business processes.

To begin with, Toyota is considered as the third largest auto manufacturer in the world and its expecting to become the largest automaker in the world due to its secret weapon: “The Toyota Production System” known as “lean production through a sense of consistent leadership and innovation.

To be more precise, this system was considered as a house diagram due to its structural system. It begins with a roof of having the best quality products at the lowest possible cost by eliminating waste. Secondly, the two outer pillars of using Just-in-time and Jikoda. In addition to people and teamwork, continuous improvement and waste reduction. And finally there are the “foundations” elements.

Moreover, this section of the book was providing the 14 principles that constitute Toyota Way.

1. Build a long term philosophy. This principle is often overlooked by most organizations. However, there should be a sense of growing and working hard to maintain long-term growth rather than just thinking in making money. It gives importance in self-abilities and skills. And give employees opportunities to add value and be part of moving the company to higher level of success. For example, at TMMK employees are involved to improve their work and the whole environments.
2.  Create continuous flow. As described at TMMK, Toyota aims to build continuous improvements methods. This can be done through creating a flow that links people and processes together to eliminate wastes and directly solve problems. Such as avoiding excess inventory, avoiding overproduction, defects, etc.
3. Use Pull System. This mainly provides to use the Just-in-Time process to minimize the work in process inventories in the warehouses. This principle also shows that Toyota is listening to the voice of their customers and their demands. They integrate them in the production process with what they want and what they need.
4. Level out the workload. It’s not enough for an organization using a lean production to just eliminate waste “Muda”. However, it should be also able to eliminate “Muri” and “Mura” and use “Heijunka”. In other terms, insure that employees are not overloaded with so many stuffs to work on and level out the workload and insure the balance.
5.  Build a culture of stopping. “Quality comes first”- this principle aims to provide customers with the best quality to enhance productivity over time. They use the concept of “autonomation” which gives importance to the power of the machines combined with the intelligence and creativity of the human being. For example, Employees at TMMK are strongly encouraged to stop the production line when they detect any problem.
6. Use Standardized tasks. This consists of these three elements: takt time, sequence of the process, amount of stock in hand. By using stable and repeatable methods, delivery time will decrease, predictability increases. Toyota allow its employees to incorporate their creativity.
7. Use visual control. It’s the ability to directly recognize any abnormalities. Using visual indicators rather than computer screens to insure manpower. Also reducing daily reports to one piece.
8. Use reliable and tested technologies. This is essential to eliminate wastes of defected items. However Toyota gives importance to the creativity of the people rather than the power of the machine. Therefore it aims to test any technology before implementing it to improve the flow of its processes. And also reject any technology that can conflict the wok culture
9. Grow leaders. This shows that Toyota is a family corporation that cares at its people. It incorporates employees in the production process to suggest any creative and innovative idea to improve the company and provide its success. They want to build people before building their cars.
10. Develop Exceptional people and teams. Encourage teaching and adopting teamwork across the company this develops the so-called synergy. High cooperation between trained employees leads to higher economic profits.
11. Respect your extended network of partners and suppliers. By giving importance to the abilities of the people who work in Toyota, it will be as incentives to them to better work and serve the company.
12. Go and see for yourself to thoroughly understand the situation. Toyota do not just rely on what the computer screen shows and on theories it wants its people to collect data to know what’s going on. Not just employees even manager and executives should stay updated with every single aspect of the organization.
13. Make decisions slowly by consensus and implement decisions rapidly. By having an outstanding team and trained people, Toyota will be able to discuss with its people any upcoming decision and negotiate all its complications and benefits. And this case when facing any sudden event they will have the solutions to solve it directly.
14. Become a learning organization through relentless reflection and continuous improvement. Toyota team is able to learn from their mistakes to avoid it. In addition to its continuous improvement process, they are able to eliminate addition wastes.