The 14 Principles of the Toyota Way

The Toyota Way has been called "a system designed to provide the tools for people to
continually improve their work"
The 14 principles of The Toyota Way are organized in four sections:
1. ong!Term "hilosophy
#. The $ight "rocess Will "roduce the $ight $esults
%. &dd 'alue to the (rganization by )eveloping *our "eople
4. +ontinuously ,olving $oot "roblems )rives (rganizational earning
The principles are set out and briefly described below:
1
Section I Long-Term Philosophy
Principle 1
-ase your management decisions on a long!term philosophy. even at the e/pense of
short!term financial goals.
"eople need purpose to find motivation and establish goals.
#
Section II The Right Process Will Produce the Right Results
Principle 2
+reate a continuous process flow to bring problems to the surface.
Work processes are redesigned to eliminate waste 0muda1 through the process of
continuous improvement 2 kaizen. The eight types of muda are:
(verproduction
Waiting 0time on hand1
3nnecessary transport or conveyance
(verprocessing or incorrect processing
4/cess inventory
3nnecessary movement
)efects
3nused employee creativity
Principle
3se "pull" systems to avoid overproduction.
& method where a process signals its predecessor that more material is needed. The pull
system produces only the re5uired material after the subse5uent operation signals a need
for it. This process is necessary to reduce overproduction.
Principle 4
evel out the workload 0hei6unka1. 0Work like the tortoise. not the hare1.
This helps achieve the goal of minimizing waste 0muda1. not overburdening people or the
e5uipment 0muri1. and not creating uneven production levels 0mura1.
Principle !
-uild a culture of stopping to fi/ problems. to get 5uality right the first time.
7uality takes precedence 08idoka1. &ny employee in the Toyota "roduction ,ystem has
the authority to stop the process to signal a 5uality issue.
Principle "
,tandardized tasks and processes are the foundation for continuous improvement and
employee empowerment.
&lthough Toyota has a bureaucratic system. the way that it is implemented allows for
continuous improvement 0kaizen1 from the people affected by that system. 9t empowers
the employee to aid in the growth and improvement of the company.
Principle #
3se visual control so no problems are hidden.
9ncluded in this principle is the :, "rogram ! steps that are used to make all work spaces
efficient and productive. help people share work stations. reduce time looking for needed
tools and improve the work environment.
,ort: ,ort out unneeded items
%
,traighten: ;ave a place for everything
,hine: <eep the area clean
,tandardize: +reate rules and standard operating procedures
,ustain: =aintain the system and continue to improve it
Principle $
3se only reliable. thoroughly tested technology that serves your people and processes.
Technology is pulled by manufacturing. not pushed to manufacturing.
4
Section III %dd &alue to the 'rgani(ation )y *e+eloping ,our People
Principle -
>row leaders who thoroughly understand the work. live the philosophy. and teach it to
others.
Without constant attention. the principles will fade. The principles have to be ingrained. it
must be the way one thinks. 4mployees must be educated and trained: they have to
maintain a learning organization.
Principle 1.
)evelop e/ceptional people and teams who follow your company?s philosophy.
Teams should consist of 4!: people and numerous management tiers. ,uccess is based on
the team. not the individual.
Principle 11
$espect your e/tended network of partners and suppliers by challenging them and
helping them improve.
Toyota treats suppliers much like they treat their employees. challenging them to do
better and helping them to achieve it. Toyota provides cross functional teams to help
suppliers discover and fi/ problems so that they can become a stronger. better supplier.
:
Section I&/ 0ontinuously Sol+ing Root Pro)lems *ri+es 'rgani(ational Learning
Principle 12
>o and see for yourself to thoroughly understand the situation 0>enchi >enbutsu1.
Toyota managers are e/pected to "go!and!see" operations. Without e/periencing the
situation firsthand. managers will not have an understanding of how it can be improved.
@urthermore. managers use Tadashi *amashima?s 0"resident. Toyota Technical +enter
0T++11 ten management principles as a guideline:
&lways keep the final target in mind.
+learly assign tasks to yourself and others.
Think and speak on verified. proven information and data.
Take full advantage of the wisdom and e/periences of others to send. gather or discuss
information.
,hare information with others in a timely fashion.
&lways report. inform and consult in a timely manner.
&nalyze and understand shortcomings in your capabilities in a measurable way.
$elentlessly strive to conduct kaizen activities.
Think "outside the bo/." or beyond common sense and standard rules.
&lways be mindful of protecting your safety and health.
Principle 1
=ake decisions slowly by consensus. thoroughly considering all optionsA implement
decisions rapidly 0nemawashi1.
The following are decision parameters:
@ind what is really going on 0go!and!see1 to test
)etermine the underlying cause
+onsider a broad range of alternatives
-uild consensus on the resolution
3se efficient communication tools
Principle 14
-ecome a learning organization through relentless reflection 0hansei1 and continuous
improvement 0kaizen1.
The process of becoming a learning organization involves criticizing every aspect of what
one does. The general problem solving techni5ue to determine the root cause of a
problem includes:
9nitial problem perception
+larify the problem
ocate areaBpoint of cause
9nvestigate root cause 0: whys1
+ountermeasure
4valuate
,tandardize
C
Translating the principles
There is a 5uestion of uptake of the principles now that Toyota has production operations
in many different countries around the world. &s a Dew *ork Times article notes. while
the corporate culture may have been easily disseminated by word of mouth when Toyota
manufacturing was only in 8apan. with worldwide production. many different cultures
must be taken into account. +oncepts such as Emutual ownership of problems.F or
Egenchi genbutsu.F 0solving problems at the source instead of behind desks1. and the
Ekaizen mind.F 0an unending sense of crisis behind the companyGs constant drive to
improve1. may be unfamiliar to Dorth &mericans and people of other cultures. & 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 3nited ,tates and in Thailand.H%I
References
1. ;ino. ,atoshi 0#JJ:1. 9nside the =ind of Toyota: =anagement "rinciples for
4nduring >rowth. 3niversity "ark. 9: "roductivity "ress. 9,-D KLM!1!:C%#L!%JJ!1.
http:BBwww.productivitypress.comBproductdetails.cfmN,<3O%JJ4.
#. iker. 8effrey 0#JJ41. The 14 "rinciples (f The Toyota Way: &n 4/ecutive ,ummary
of the +ulture -ehind T",. http:BBwww.si.umich.eduB9+(,BikerJ4.pdf.
%. iker. 8 0#JJ41. The Toyota Way: 14 =anagement "rinciples from the World?s
>reatest =anufacturer. =c>raw!;ill. 9,-D JJL1%K#%1K.
http:BBbooks.google.caBbooksNidOKvPs/54$5v=+Qd5OTheRToyotaRWayQpspO1.
4. iker. 8A =eier. ). 0#JJ:1. The Toyota Way @ieldbook: & "ractical >uide for
9mplementing Toyota?s 4"s. =c>raw!;ill. 9,-D JJL144MK%4.
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