the toyota way (scit) pune ppt
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The Toyota WayThe Toyota Way14 Management Principles14 Management Principles
Khushbu Desai (07030244003)Khushbu Desai (07030244003)
Aditi Chaplot (07030244001)Aditi Chaplot (07030244001)
Pooja Mantri (07030244010)Pooja Mantri (07030244010)
Sushant Kumar (07030244024) Sushant Kumar (07030244024)
Shailesh Borah (07030244022)Shailesh Borah (07030244022)
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Since Toyota’s founding we have adhered to the core principle of contributingto society through the practice of manufacturing high-qualityproducts and services. Our business practices and activities based on thiscore principle created values, beliefs and business methods that over theyears have become a source of competitive advantage. These are themanagerial values and business methods that are known collectively asthe Toyota Way.
—Fujio Cho, President Toyota
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Principle 1Principle 114131211109876543211
• Base your management decisions on a long-Base your management decisions on a long-term philosophy, even at the expense of term philosophy, even at the expense of short-term financial goals.short-term financial goals.
1. Align the organization toward a purpose greater than “making money.”
2. Generate value for the customer, society and the economy.
3. Be responsible. Accept responsibility for your conduct and maintain and improve the skills that enable you to produce added value.
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Principle 2Principle 2• Create a continuous process flow to bring Create a continuous process flow to bring
problems to the surface.problems to the surface.
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1.Redesign processes to achieve continuous flow.
2.Create flow to move material and information fast.
3.Link processes and people so that problems surface right away.
4.Make flow obvious throughout your organizational culture.
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Principle 3Principle 3• Use “pull” systems to avoid overproduction.Use “pull” systems to avoid overproduction.
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1.Provide downstream customers in the process with what they want, when they want it, and in the amount that they want.
2. Pull vs PushMaterial replenishment initiated byconsumption is the basis for just-in-time. Just-in Time - an organized system of inventory buffers.
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Principle 4Principle 4• Level out the workload (heijunka). (Work like Level out the workload (heijunka). (Work like
the tortoise, not the hare.)the tortoise, not the hare.)
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Principle 5Principle 5• Build a culture of stopping to fix problems, to Build a culture of stopping to fix problems, to
get quality right the first time.get quality right the first time.
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Principle 6Principle 6• Standardized tasks and processes are the Standardized tasks and processes are the
foundation for continuous improvement and foundation for continuous improvement and employee empowerment.employee empowerment.
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Principle 7Principle 7• Use visual control so no problems are hidden.Use visual control so no problems are hidden.
Simple visuals to support work flow
Determine deviation from standard
Reduce report size
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Eliminate Waste
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Principle 8Principle 8• Use only reliable, thoroughly tested Use only reliable, thoroughly tested
technology that serves your people and technology that serves your people and processes.processes.
Support people not replace them
Analyze impact of new technologies on existing processes
Conflict company philosophy or principle?
Involve stake holdersInvolve stake holders
Encourage to consider new Encourage to consider new technologies while seeking for new technologies while seeking for new approachapproach
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Principle 9Principle 91413121110998877665544332211
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Principle 10Principle 10• Develop exceptional people and teams who Develop exceptional people and teams who
follow your company’s philosophy.follow your company’s philosophy.
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• Create Strong stable culture.• Train Exceptional Individual & Teams to work
with corporate philosophy.• Use Cross Functional Team• Make a Continuous effort towards Teamwork.• Understand & Use Motivation theory.
• Maslow’s Need Hierarchy theory.• Herzberg’s Job Enrichment theory .• Taylor’s Scientific Management theory.• Behavior Modification theory.• Goal Setting theory
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Principle 11Principle 11• Respect your extended network of partners Respect your extended network of partners
and suppliers by challenging them and and suppliers by challenging them and helping them improve.helping them improve.
• Maintain Principle of partnership• Acquire new suppliers.• Enhance relations with existing suppliers. • Teach “ The Toyota Way ”.
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Principle 12Principle 12• Go and see for yourself to thoroughly Go and see for yourself to thoroughly
understand the situation (genchi genbutsu).understand the situation (genchi genbutsu).
• Genchi (actual location) genbutsu (actual material or product)…also known as going to the gemba.
• Confirm the fact yourself.• Solve problem by going to root causes.• The Geography of thought.• Think & speak based on personally verified data.
“Common sense will tell you the answer, but collecting data and then understanding the facts will tell you whether your common sense was correct.”
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Principle 13Principle 13• Make decisions slowly by consensus, Make decisions slowly by consensus,
thoroughly considering all options; thoroughly considering all options; implement decisions rapidly (nemawashi).implement decisions rapidly (nemawashi).
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Decide andAnnounce
Seek IndividualInput, thenDecide andAnnounce
Seek GroupInput, thenDecide andAnnounce
GroupConsensus,
ManagementApproval
GroupConsensus,With FullAuthority
Level of
Involv
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Time
• Decision Making is Highly Situational• Philosophy is to seek Maximum Involvement for Each Situation
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Principle 14Principle 14• Become a learning organization through Become a learning organization through
relentless reflection (hansei) and continuous relentless reflection (hansei) and continuous improvement (kaizen).improvement (kaizen).
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Leveled Production (Heijunka)
Stable and Standardized Processes
Visual Management
Toyota Way Philosophy
Just-in-TimeRight Part, Right
Amount, Right Time
• Take Time Planning• Continuous Flow • Pull System • Quick Changeover • Integrated Logistics
Jidoka(In-station Quality)
Make ProblemsVisible
• Automatic Stops • Andon • Person – Machine
Separation • Error Proofing • In-station Quality
Control • Solve Root Cause of Problems (5 Why’s)
Best Quality – Lowest Cost – Shortest Lead Time – Best Safety – High Morale
Through shortening the production flow by eliminating waste
People & Teamwork• Selection • Common Goals • Ringi Decision Making• Cross – Trained
Waste Reduction• Genchi Genbutsu • 5 Why’s • Eyes for Waste • Problem Solving
Continuous Improvement (kaizen)
Toyota Production System HouseToyota Production System House
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THANK YOUTHANK YOU