# Presentation: 241071

## The  14 Principles of The Toyota WayA Management Philosophy

- Amanda Watters, RN
- San Francisco Regional Nurse Consultant

## The Toyota Way

- A system designed to provide the tools for people to continually improve their work.

## A Management Philosophy

- Base management decisions on a philosophical sense of purpose
- Think long term
- Have a process for solving problems
- Add value to your organization by developing its people
- Recognize that continuously solving root problems drives organizational learning

## Sections

- Section I - Long Term Philosophy
- Section II - The Right Process Will Produce the Right Results
- Section III - Add Value to the Organization by Developing Your People
- Section IV - Continuously Solving Root Problems Drives Orgainizational Learning

## Long -Term Philosophy

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

## The Right Process Will Produce the Right Results

- Principle 2 - Create a continuous process flow to bring problems to the surface.
- Principle 3 - Use “pull” systems to avoid overproduction.
- Principle 4 - Level out the workload.

## The Right Process Will Produce the Right Results

- Principle 5 - Build a culture of stopping to fix problems, to get quality right the first time.
- Principle 6 - Standardized tasks and processes are the foundation for continous improvement and employee empowerment.
- Principle 7 - Use visual control so no problems are hidden.
- Principle 8 - Use only reliable, thoroughly tested technology that serves your people and processes.

## Add Value to the Organization by Developing Your People

- Principle 9 - Grow leaders who thoroughly understand the work.
- Principle 10 - Develop exceptional people and teams who follow your company’s philosophy.
- Priniciple 11 - Respect your extended network of partners and suppliers by challending them and helping them improve.

## Continuously Solving Root Problems Drives Organizational Learning

- Principle 12 - Go and see for yourself to thoroughly understand the situation.
- Principle 13 - Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly.
- Principle 14 - Become a learning organization through relentless reflection and continuous improvement.

## Principle 1 -  Base management decisions on a long-term philosophy, even at the expense of short term goals. 

## Principle 2 - Create a continuous process flow to bring problems to the surface.

- Eliminate waste through continuous improvement:
- Overproduction
- Waiting
- Unnecessary transport
- Overprocessing
- Excess Inventory
- Unnecessary movement
- Defects
- Unused Employee Creativity

## 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. (Work like a tortoise, not like a hare.)

- This helps achieve the goal of minimizing waste, not overburden people or the equipment and not creating uneven production levels.

## Principle 5 - Build a culture of stopping to fix problems, to get quality right the first time. 

- Quality takes precedence. Any employee in Toyota’s 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 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.

- The 5S Program:
- Sort: Sort out uneeded 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” manufactering, not “pushed to” manufacturing.

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

- Without constant attention, the principles will fade. The principles have to be engrained, and must be the way one thinks.  Employees must be educated and trained: they have to maintain a learning organization.

## Principle 10 - Develop exceptional people and teams who follow your company’s philosphy.

- 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 parnters and suppliers by challenging them and by helping them improve.

- Treat suppliers much like employees, challenge them to do better and help them achieve it.  Help them discover problems so that they can become stronger.

## Principle 12 - Go and see for yourself to thoroughly understand 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 be improved.

## Tadashi Yamahima’s (President, Toyota Technical Center) ten management principles as a guideline: 

- Always keep the final target in mind.
- Clearly assign tasks to yourself and others.
- Think and speak on verified, proven information and data.
- Take full advantage of the wisdom and experiences of others to send, gather or discuss information.
- Share information with others in a timely fashion.
- Always report, inform and consult in a timely manner.
- Analyze and understand shortcomings in your capabilities in a measurable way.
- Relentlessly strive to conduct “continuous improvement” activities.
- Think “outside the box,” or beyond common sense and standard rules.
- Always be mindful of protecting your health and safety.

## Principle 13 - Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly.

- Decision-Making Parameters:
- Find what is really going on (go and see) to test.
- Determine the underlying cause.
- Consider a broad range of alternatives.
- Build consensus on the resolution.
- Use efficient communication tools.

## Principle 14 - Become a learning organization through relentless reflection and continuous improvement.

- The process of becoming a learning organization involves criticizing every aspect of what one does. The general problem solving technique to determine the root cause of a problem includes:
- Initial problem perception
- Clarify the problem
- Locate area/point of cause
- Investigate root cause
- Countermeasure
- Evaluate
- Standardize