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    The Toyota WayThe Toyota WaybyJeffrey Liker

    14 Management Principles from theWorlds Greatest Manufacturer

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    Jeffrey Liker Professor of Industrial and Operations

    Engineering, University of Michigan

    President of The Toyota Way Academy

    (a collection of top-notch lean advisors)

    Books Authored : The Toyota Way (International Bestseller)

    Toyota Way Fieldbook

    Toyota Talent The Toyota Product Development System

    Toyota Culture

    The Toyota Way to Continuous Improvement

    Toyota Under Fire

    His articles and books have won nine Shingo Prizes

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    Author: Dr.Jeffrey Liker

    330 pages

    Publisher: McGraw-Hill; 1edition (December 17, 2003)

    International Bestseller

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    Representing the heart of theRepresenting the heart of thecustomercustomer

    Representing the heart of theRepresenting the heart of theproductproduct

    Representing the ever expanding technologicalRepresenting the ever expanding technologicaladvancements and opportunities that lie aheadadvancements and opportunities that lie ahead

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    Double or triple the speed of any business process

    Build quality into workplace systems

    Eliminate the huge costs of hidden waste

    Turn every employee into a quality control inspector

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    Continuously

    solving rootPROBLEMS

    Add value to the organizationby developing your PEOPLE and

    PARTNERS

    The right PROCESS will produce the right results

    LongTerm PHILOSOPHY

    Principles 12-14

    Principles 9 - 11

    Principles 2 - 8

    Principle 1

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

    People need purpose to find motivation and establish goals.

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    Principle 2:Create a continuous process flow to bringproblems to the surface

    Work processes are redesigned to eliminate waste (MUDA) through theprocess of continuous improvement (KAIZEN)

    Principle 3:Use "pull" systems to avoid overproduction

    A method where a process signals its predecessor that more material isneeded

    Principle 4:Level out the workload (heijunka)(Work like the tortoise, not the hare)

    This helps achieve the goal of minimizing waste (MUDA), not overburdeningpeople or the equipment (MURI),and not creating uneven production levels

    (MURA)

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    Principle5: Build a culture of stopping the production line to fixproblems, to get quality right the first time

    Any employee in the Toyota Production System has the authority to stop theprocess to signal a quality issue.

    Principle 6: Standardized tasks and processes are the foundation forcontinuous improvement and employee empowerment

    It empowers the employee to aid in the growth and improvement of the company.

    Principle 7: Use visual control so no problems are hidden

    Included in this principle is the 5S Program(Sort,Straighten,Shine,Standardize,Sustain)

    Principle 8: Use only reliable, thoroughly tested technology thatserves your people and processes.

    Technology is pulled by manufacturing, not pushed to manufacturing.

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

    Principle 10:Develop exceptional people and teams who followyour company's philosophy

    Teams should consist of 4-5 people and numerous management tiers.

    Success is based on the team, not the individual

    Principle 11:Respect your extended network of partners and

    suppliers by challenging them and helping them improveToyota treats suppliers much like they treat their employees, challenging

    them to do better and helping them to achieve success

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    Principle 12: Go and see for yourself to thoroughlyunderstand the situation

    Toyota managers are expected to "go-and-see" operations. Without experiencing

    the situation firsthand, managers will not have an understanding of how it can beimproved.

    Principle 13: Make decisions slowly by consensus, thoroughlyconsidering all options; implement decisions rapidly

    Principle 14: Become a learning organization through relentlessreflection and continuous improvement

    The process of becoming a learning organization involves criticizing every aspectof what one does.

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    THANK -YOU

    We place the highest value on actualimplementation and taking action.

    Fujio ChoPresident,Toyota Motor Corporation2002