The Toyota Way #1

The 14 Principles of the Toyota Way is a management philosophy used by the Toyota corporation that includes the Toyota Production System. The main ideas are 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, and to recognize that continuously solving root problems drives organizational learning.^[1]
Since the 1980s, Toyota and Lexus vehicles have been recognized for their quality and are consistently ranked higher than other car makers in owner satisfaction surveys, due in large part (according to Jeffrey Liker, a University of Michigan professor of industrial engineering) to the business philosophy that underlies its system of production.

The 14 Principles

The Toyota Way has been called "a system designed to provide the tools for people to continually improve their work"^[1] The 14 principles of The Toyota Way are organized in four sections: I) Long-Term Philosophy, II) The Right Process Will Produce the Right Results, III) Add Value to the Organization by Developing Your People, and IV) Continuously Solving Root Problems Drives Organizational Learning. The principles are set out and briefly described below:

[edit] Section I — Long-Term Philosophy

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.

[edit] Section II — The Right Process Will Produce the Right Results

Principle 2

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

Work processes are redesigned to eliminate waste (muda) through the process of continuous improvement — kaizen. The seven types of muda are:

1. Overproduction
2. Waiting (time on hand)
3. Unnecessary transport or conveyance
4. Overprocessing or incorrect processing
5. Excess inventory
6. Motion
7. Defects

Principle 3

• Use "pull" systems to avoid overproduction.

A method where a process signals its predecessor that more material is needed. The pull system produces only the required material after the subsequent operation signals a need for it. This process is necessary to reduce overproduction.
Principle 4

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

This helps achieve the goal of minimizing waste (muda), not overburdening people or the equipment (muri), and not creating uneven production levels (mura).
Principle 5

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

Quality takes precedence (Jidoka). Any employee in the Toyota Production System has the authority to stop the process to signal a quality issue.
Principle 6

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

Although Toyota has a bureaucratic system, the way that it is implemented allows for continuous improvement (kaizen) from the people affected by that system. 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 - 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.

• Sort: Sort out unneeded items
• Straighten: Have a place for everything
• Shine: Keep the area clean
• Standardize: Create rules and standard operating procedures
• Sustain: Maintain the system and continue to improve it

Principle 8

• Use only reliable, thoroughly tested technology that serves your people and processes.

Technology is pulled by manufacturing, not pushed to manufacturing.