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The Toyota way Leadership

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this is about the 4 p model of the toyota way

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Leadership

About Jeffery .K Likery J.K. Liker is a professor of industrial and operations engineering at the university of Michigan. y He is also the director of the Japan technology management program (JTMP). y Co. Director of the lean manufacturing certificate program at the university of Michigan.

Continuationy Dr. Liker has co-authored over 65 articles, many

book chapters and five books.y His most recent book, the Toyota way was released

in January 2004.

Summary of the Toyota wayy The Toyota way explains the management Principles and the business philosophy behind Toyota s success. y It narrates Toyota s approach to lean production and the 14 Principles that drive Toyota towards quality and excellence. y The 4p s model y Lean production

What is Leadershipy Getting people to go where they would not normally go y Getting people aligned to a common objectives y Being a talent scout and developing talent

Continuationy IT IS THE PROCESS OF ENCOURAGING & HELPING OTHERS TO WORK ENTHUSIASTICALLY TOWARDS OBJECTIVES. y IT IS THE RELATIONSHIP IN WHICH ONE PERSON(THE LEADER) INFLUENCES OTHERS TO WORK TOGETHER WILINGLY ON RELATED TASKS TO ATTAIN GOALS DESIRED BY THE LEADER & OR GROUP.

Leadership stylesy Autocratic y Democratic y Laissez faire y Paternalistic

Autocraticy Leader makes decisions without reference to anyone else y High degree of dependency on the leader y Can create de-motivation and alienation of staff y May be valuable in some types of business where

decisions need to be made quickly and decisively

Democraticy Encourages decision making

from different perspectives leadership may be emphasised throughout the organisationy Consultative: process of consultation before decisions

are taken y Persuasive: Leader takes decision and seeks to persuade others that the decision is correct

Laissez-Fairey Let it be

the leadership responsibilities are shared by all

y Can be very useful in businesses

where creative ideas are importanty Can be highly motivational,

as people have control over their working life

Continuationy Can make coordination and decision making

time-consuming and lacking in overall directiony Relies on good team work y Relies on good interpersonal relations

Paternalisticy Leader acts as a father figure y Paternalistic leader makes decision but may consult y Believes in the need to support staff

Style based on task Vs peopleHigh People Emphasis

High Relations High task & & Low Task High Relations (Supporting Style) (Participative Style) Low Task & High Task Low Relation & Low Relation (Free(Free-Rein Style) (Autocratic Style)

Low Low High

(Four Key Leader Behaviours)

Technical terms:1.

Kaizen: Japanese word for improvement or change for the better Genchi Genbustu: Key approach for problem solving , the place where it actually happens, get your boosts on and go out and see what is happening. Heijunka: Production leveling, also known as production smoothing. The general idea is to produce intermediate goods at a constant rate to allow future processing to be carried out at a constant and a predictable rate.

2.

3.

Continuation1.

Jidoka: automation with human intelligence, also refers to the practice of a manual line or process when something goes wrong.

2. Hansei: acknowledge your own mistake and to

pledge improvement.3. Nemawashi: considering all options available to solve

a particular problem and by going into the root cause.

4P s model

Categories of the 4p model4p s Model

Philosophy

Process Principle 2, 3,4,5, 6, 7, 8

People & Partners

Problem Solving

P 1rnciple 1

Principle 9, 10, 11

Principle 12, 13, 14

The 14 managerial Principles have been categorized under the 4p model.

The 14 managerial Principlesy These 14 Principles have been categorized under the 4p s model. y This managerial Principles was first started during the year 1940. y These 14 Principles kept Toyota in the market, unaffected from the financial crisis as other companies like GM, Ford, Chrysler. y These 14 Principles are applicable for any service industry.

Philosophyy Categorized under the leadership style challenging. y This talks about long term philosophy. y Philosophy helps attain short term decisions. y Includes a mission which is a common purpose to the organization which is bigger than making money. y Generate value for the customers, society and the economy. y Strive to decide your own fate.

Toyota s mission statementy Contribute to the economic growth of the country. y Contribute to the stability and well being of the team

members.y Contribute to the overall growth of Toyota.

Principle: 1y Base your management decisions on a long term philosophy,

even at the expense of short term financial goals.y People need to find purpose to find motivation and establish

goals.y Align the organization towards a purpose greater than

making money.y Generate value for the customer, society and the economy.

Continuationy Be responsible. Accept for your conduct and maintain and improve the skills that enable you to produce added value. y Tools to establish long term philosophy:

1) SWOT Analysis 2) Formulating Mission, Visions and values 3) Formulate strategic plan and deploy it by establishing goals and targets for each level of employees, from chairman to watchman.

Principle: 2y Create a continuous process flow to bring problems to the surface. y Redesign process to achieve continuous flow. y Create flow to move material and information fast. y Link process and people so that problems surfaces right away. y Make flow obvious throughout your organizational culture.

Principle: 3y Use pull system to avoid overproduction. y Provide downstream customers in the process with

what they want, when they want it and in the amount that they want.

y Pull Vs Push y Material replenishment initiated by consumption is

the basis for just-in-time.

Principle: 4y Level out the workload (heijunka). Work like a

tortoise, not the hare.y Eliminating waste is just the 1/3rd of the equation of

making lean successful.y Work to level out the workload of all manufacturing

and service processes as an alternative to the start and stop of working on project in batches.

Principle: 5y Build a culture of stopping to fix problems, to get quality right at the first time. y Quality for the customers drives your value proposition. y Use all the modern quality assurance methods available. y Develop a visual system to alert team or project leaders that a machine or a process needs assistance (jidoka).

Continuationy Build into your organization support systems to quickly solve problems and put in place counter measures. y Build into your culture the philosophy of stopping or slowing down to get quality right at the first time to enhance productivity in the long run.

Principle: 6y Standardized tasks and process are the foundation for continuous improvement and employee empowerment. y Use stable, repeatable methods everywhere to maintain the predictability, regular timing and regular output of your process. It is the foundation for flow and pull. y Capture the accumulated learning about a process up to a point in time by standardizing today s best practices. y Allow creativity and individual expressions to improve upon the standard.

Principle: 7y Use visual control so no problems are hidden. y Use simple indicators to help people determine immediately weather they are in a standard condition or deviating from it. y Avoid using a computer screen when it moves the workers focus away from the workplace. y Design simple visual systems at the place where the work is done, to support flow and pull.

Principle: 8y Use only reliable, thoroughly tested technology that serves your people and process. y Support people not replace them by technology. y Analyze impact of new technologies on existing process. y Involve stakeholders y Encourage to consider new technologies while seeking for new approach.

Principle: 9y Grow leaders who thoroughly understand the work,

live the philosophy and teach it to others.y Don t buy leaders from outside. y Role model s of company s philosophy y Must understand daily work in great details.

Principle: 10y Develop exceptional people and teams who follow your

company s philosophy.y Create strong stable culture in which company values and beliefs

are widely shared and lived out over a period of many years.

y Set a few workers who have the ability to work hard to reinforce

the culture continually.y Make a continuous effort towards teamwork. y Understand and use motivation theory s

Principle: 11y Respect your extended network of partners and suppliers by challenging them and helping them improve. y Maintain Principle of partnership. y Acquire new suppliers. y Enhance relations with the existing suppliers. y Teach the Toyota way

Continuationy Challenge your outside business partners to grow and

develop. It shows that you value themy Set challenging targets and assist your partners in

achieving them.

Principle: 12y Go and see yourself to thoroughly understand the

situation (Genchi Genbustu).y Confirm the fact yourself. y Solve the problems from going to the root causes. y The geography of thought.

Continuation .y Think and speak based on personally verified data. y High level managers and executives should go and see

things for themselves, so they will have more than a superficial understanding of the situation.

Principle: 13y Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (Nemawashi). y Do not pick a single direction and go down that one path until you have thoroughly considered alternatives. When you have picked, move quickly but cautiously down the path. y Nemawashi is the process of discussing problems and potential solutions with all of those affected. To collect their ideas and get agreement on a path forward

Principle: 14y Becoming a learning organization through relentless reflection (hansei) and continuous improvement (Kaizen). y Once you have established a stable process, use continuous improvement tools to determine the root cause of the inefficiencies and apply effective countermeasures. y Protect the organizational knowledge base by developing stable personnel, slow promotion and very careful succession systems.

Continuationy Use Hansei (reflection) at key milestones and after you

finish a project to openly identify all the shortcomings of the project. Develop countermeasures to avoid the same mistakes again.y Lean by standardizing the best practices, rather than

reinventing the wheel with each new project and each new manager.

y Any Questions???