Toyota Culture and Management Philosophy

The Toyota Way is not the Toyota Production System (TPS). The 14 Principles of the Toyota Way is a management philosophy used by the Toyota corporation that includes TPS, also known as lean manufacturing. TPS is the most systematic and highly developed example of what the principles of the Toyota Way can accomplish. The Toyota Way consists of the foundational principles of the Toyota culture which allows the TPS to function so effectively.  





The Main Ideas of the Toyota Way

To base management decisions on a "philosophical sense of purpose"

To think long term

To have a process for solving problems

To add value to the organization by developing its people

To recognize that continuously solving root problems (examples) drives organizational learning.





The 4 Sections and the 14 principles of the Toyota Way




I. Having a long-term philosophy that drives a long-term approach to building a learning organization

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 the right results

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

③ Use "pull" systems to avoid overproduction

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

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 processes

III. Add value to the organization by developing its people and partners

⑨ Grow 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

IV. Continuously solving root problems to drive organizational learning

⑫ Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu).

Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (Nemawashi).

⑭ Become a learning organization through relentless reflection (hansei) and continuous improvement (Кaizen).




Cross-functional Management

Toyota was first in Japan with cross-functional management.

"We should regard all the other management functions as existing to serve the three superordinate goals of Quality, Cost, Delivery (QCD)."

~ Shigeru Aoki, Toyota






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