• Pinnacle of the global auto industry

• Overtaken Ford Motor Co and General Motors Corp in vehicle sales

• Has 40 vehicle assembly plants around the world and 12 research, development and design centers and employs 310,000 people.

Book Review

Jwala Nayak 41

Kapil Mhatre 34

Shahzad Khan 24

Joe Augustine 38

Kapil Singh 52

Gaurav Taishete 53

Presented by

The current Toyota Mark consists of three ovals:

The two perpendicular center ovals represent a Relationship of mutual trust between the customer and Toyota. 

These ovals combine to symbolize the letter "T" for Toyota. 

The space in the background implies A global expansion of Toyota's technology and unlimited

potential for the future.

• Honor the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world.

• Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities.

• Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our activities.

Guiding Principles at Toyota

• Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide.

• Foster a corporate culture that enhances individual creativity and teamwork value, while honoring mutual trust and respect between labor and management.

• Pursue growth in harmony with the global community through innovative management.

• Work with business partners in research and creation to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.

Guiding Principles at Toyota

Part I - Background to the Field book

• Toyota has a reputation for excellence in quality, cost reduction & hitting the market with vehicles that sell.

• Contributed a new paradigm in marketing ‘’ Lean production’’

• Creating a ‘’learning organization’’ and pass on the DNA as they expand globally through dedicated Sensei.

• There is always more than one way to achieve desired result.

The 4 P Model – The Toyota Way

PHILOSOPHY – Adding value to customers , society, communityand its associates.

PROCESS – Right process ,Right resultsEg. Principle of creating flow

PEOPLE AND PARTNERS – Add value to your organization bychallenging your people and partners to grow. Toyota production system (TPS) was called ‘’Respect for humanity’’ system

PROBLEM SOLVING – Solve root problems to drive organizational learning.When someone learns an important lesson, it is shared so that companycan learn.

Overview of Toyota Way Principles

I Philosophy as the foundation

1. Base your management decisions on a long term philosophy, even at the expense of short-term financial goals.

II The Right process will produce Right Results

2. Create a continuous process flow to bring problems to the surface

3. Use ‘’Pull’’ systems to avoid overproduction.

4. Level out workload

II The Right process will produce Right Results

5. Build a culture of stopping to fix problems, to get quality right the first time.

6. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment

7. Use visual control so no problems are hidden

8. Use only reliable, thoroughly tested technology that serves your people and process.

Overview of Toyota Way Principles

III Add value to your organization by developing your people and partners

9. Grow with leaders who thoroughly understand the work, live the philosophy and teach it to others.

10. Develop exceptional people and teams who follow your company’s philosophy.

11. Respect your extended network of partners and suppliers by challenging them and helping them improve.

Overview of Toyota Way Principles

IV Continuously solving root problems drives organizational learning

12. Go and see for yourself to thoroughly understand the situation.

13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly.

14. Becoming a learning organization through relentless reflection and continuous improvement.

Overview of Toyota Way Principles

PART II - Why Does Your Company Exist ?

What is your Company’s Philosophy ?

Survive ? Contributing to Society , Associates & Partners ? Profits ?

Defining the Company’s Purpose

Company Purpose

Learning CommunityST – Capable peopleLT – Learning to improve

Learning EnterpriseST – Capable partnersLT – Learning Enterprise

Lean SystemsST – Capable processesLT – Value stream improvement

Value-adding ContributorST – ProfitableLT – Growth & contribution to society

PART III – Creating Lean Processes Throughout Your Enterprise

Lean – Eliminating Waste

Toyota’s 7 major types of non-value adding Activities in business or manufacturing processes –

1. Overproduction

2. Waiting (Time on hand)

3. Transportation or Conveyance

4. Over processing or Incorrect processing

Toyota’s 7 major types of non-value adding Activities in business or manufacturing processes –

5. Excess inventory

6. Unnecessary movement

7. Defects

Eight Waste

Unused Employee Creativity

• Developing a long – term philosophy of Waste Reduction - “Get Lean”

• Value Stream Mapping Approach Beginning at the end of the flow • Strategies to create stability Capability to produce consistent results over time.

PART III – Creating Lean Processes Throughout Your Enterprise

5 S and Workplace Organization

EliminateWaste

SortClear out rarely

Used items

StraightenOrganize and label

a place for everything

SustainUse regular audits

ShineClean it

StandardizeCreate procedures

To maintain first 3s

Production in the entire facility & across multiple facilities will be shut down if problems are not correctedeffectively.

Importance of equipment readiness, manpower availabilityand material supply when thousands of people stop working If there is a failure.

At Toyota –• Entire operation is connected and a problem will main component halts the entire facility.

• Sees it as an opportunity to identify weakness within the system, to attack weakness and strengthen the overall system.

Connected flow across the enterprise

Toyota considers overproduction to be the worst ofseven types of wastes.

Stopping overproduction- producing more, sooner orin greater quantity than next operation requires.

Creating Pull between Separate Operations

“Always satisfy the customer’’

‘’ Never short the customer’’

Establish correct amount of WIP between supplier and the customer to buffer time requirement of the supplier to changeover and also to supply to second customer.

Less is more – Reduce Waste by Controlling Overproduction

Objective of Standardization –

Maximize he entire system and considers ‘’Total Cost’’via waste reduction as a primary indicator of success.

Toyota considers development of standardization to bebaseline for continuous improvement, meaning that future results are expected to improve from the standard.

Establish Standardized Processes and Procedures

The Leveling Paradox

“Heijunka” – Level or make smooth Produce smaller quantities more aligned with actual customer consumption.

Points of Control

Kanban – Point of control for inventory management

Establish Standardized Processes and Procedures

• Principle of building in Quality and decision to stop and fix problems as they occur rather than pushing them down the line to be resolved later.

• Toyota has build in system that provides long-term benefits of stopping the line and minimizes negative effect by building a support structure to quickly identify ,respond and correct problems.

What Toyota does that makes their quality consistently better than other Car companies ?

The Toyota method of stopping to fix problems

PhilosopyWaste elimination

PrincipleGet quality Right the

First time

Strategy Stop to fix problems

Method Fixed position stop and

Support structure

ReasonIncrease urgency to

Identify & correct problems

EffectLong-term

strengthening

Performance MeasureFirst-Time

Quality

Lean ToolsJikoda,

Problem solving

Control methodsStandardized work

Quality audits

ResultSystem waste

and cost is reduced

Role Of Jikoda : Self Monitoring Machines

Jikoda – Intelligent machines Machine’s ability to detect a problem and to stop itself.

Problem solving Cycle1. Recognition2. Elevate3. Evaluate4. Control5. Containment6. Prevention

Poka Yoke “Mistake Proofing’’ or ‘’Error proofing’’

Tailor Technology to Fit your People and Operating Philosophy

Keep Technology in Perspective

Toyota is an engineering-driven company and technology based company.

Innovative product and process technology is at thecore of Toyota’s success.

People are at the core in creating and successfully implementing innovative product and process technology.

Make Technology Fit with People and Lean Processes

Success starts with LeadershipToyota views leaders as crucial elements and ratioof leaders to team members is one –to- 20 /30

Importance of Leadership within ToyotaToyota philosophy is to disperse responsibility to the lowest level possible. Three basic responsibilities – 1. Support for operations 2. Promotion of the System 3. Leading Change

Four Key performance Results- 1. Safety 2. Quality 3. Productivity 4. Cost

PART IV – Develop Exceptional People and Partners

1. Willingness and desire to lead

2. Job Knowledge

3. Job Responsibilities

4. Continuous Improvement Ability

5. Leadership Ability

6. Teaching Ability

Requirements For Leaders

“We Don’t Just Build Cars, We Build People’’ People truly are the greatest assets.

• Select the right people• Assimilating team associates into your culture• Training Plan and Tracking Performance• Quality Circles – Vital part of Kaizen• Toyota Suggestion Programme – Providing a sense of ownership • Invest in Skill in all areas of company

Develop Exceptional Team Associates

Develop Suppliers and Partners as Extensions of the Enterprise

• Supplier partners in a Globally Competitive World

• Short term Cost Savings vs. Long term Partnerships

• Supplier partnering at Toyota –

1. Mutual understanding & Trust 2. Control systems 3. Compatible capabilities 4. Information sharing 5. Joint Improvement activities 6. Continuous improvement and Learning

Building a Lean Extended Enterprise

1. Become a Role Model Lean Customer You cant teach suppliers what you yourself have not yet mastered.

2. Identify your Core Competencies Outsourcing entails more than simple make –buy decision

3. Develop your core suppliers Make sure their systems and philosophies are compatible with yours and they are at a comparable level of operational excellence.

Building a Lean Extended Enterprise

4. Use control Systems for continuous improvement Manage supplier relationship by minimizing bureaucratic systems and procedures to a critical minimum

5. Favor an incremental approach Start small with selective outsourcing for a new supplier.

6. Develop mechanisms for Joint Enterprise Learning Learn together and capture learning in standardized routines.

PART V – Root CAUSE Problem Solving for Continuous Learning Problem Solving The Toyota Way

Identify and remove obstacles on the path to perfection • Every problem is an improvement opportunity• Find the True Problem to get the most significant results

“Yoi Shina,Yoi Kangai’’ – “Good thinking, good products’’

Plan – Do- Check – Act

Plan : Develop an Action PlanDo: Implement SolutionsCheck : Verify ResultsAct : Make necessary adjustments to Solutions and to the Action plan

A 3 Report

Implementation Plan

A3 Report Title and Description

Problem Definition andDescription

Problem AnalysisResults

Future Steps

AUTHOR : _________ DATE:______

PART VI – Managing the Change Lean Implementation Strategies and Tactics

1. Philosophy2. Process3. People4. Problem Solving

Leading the Change

Lean Coach

• Smart• Quick studies• Love to learn • Hands-on• Passionate about improving process• Leadership skills• Strong inter-personal skills• Excellent communicators• Basic technical skills• System thinkers• Natural problem solving skills• Read books• Open to new ideas• Personally organized

Lean Sensei - Sensei “Teacher ”

Key Ingredients for Change

Change Effort

Participation &OwnershipStructure

Committed Knowledgeable

Leadership

AccountabilityLearning by

doing Education& Mentoring

Lasting Results

Learnings

• Define company’s purpose and develop a long-term philosophy

• In a multi-national set-up create a culture adaptable to people across countries.

• Encourage the concept of being a “ Learning organization”

• Create value systems with flow, standardized work, and level production.

Learnings

• Stop and fix problems – Take timely action

• Develop leaders who promote and support the system

• Find and develop exceptional people and partners

• Lead the change process and transform the total enterprise

Thank You