Date post: | 12-Sep-2014 |
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The Toyota Way by Jeffrey Liker14 Management Principles from the World’s Greatest Manufacturer
Book Review
- Mehul
Bardia IIM Raipur
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Introduction
The Toyota Approach – 4P’s
Key Learning's
Current Performance
Applying Toyota Way in our life
Contents
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Respect for People
Strategic Weapon. 1980’s – Automotive
Industry in USA
•Failure of the American Companies
and the rise of Japanese Companies.
The Heart of
Toyota Production
System – MANAGEMENT
OF WASTE
Continuous
Improvement
Toyota’s Model was however
different.
•It was neither an American
Way or Japanese Way
Operational Excellence
Choose a “handwritten” font to make this book more like a notebook or a standard font to look more like a printed book.
Introduction
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The Right Process Will Produce the Right Results
Add
Value to the Organization by Developing Your People and
Partners
Continuously Solving Root Problems
The Toyota Approach – 4P’s
Principles 12 -14
Principles 9 - 11
Principles 2 - 8
Principle 1
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o Philosophyo Base your management decisions on a long term philosophy, even
at the expense of short term financial goals.o Process
o Create continuous process flow to bring problems to the surface.o Use “pull” systems to avoid overproduction.o Level out workload (heijunka).o Build a culture of stopping to fix problems, to get quality right the
first time.o Standardized tasks are the foundation for continuous
improvement and employee empowermento Use visual control so no problems are hidden.o Use only reliable thoroughly tested technology that serves your
people and processes.
14 Principles
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o People and Partnerso Grow leaders who thoroughly understand the work, live the
philosophy, and teach it to otherso Develop exceptional people and teams who follow your
company’s philosophyo Respect you extended network of partners and suppliers by
challenging them improve.o Problems
o Go and see for yourself to thoroughly understand the situation.o Make decisions slowly by consensus, thoroughly considering all
options; implement decisions rapidlyo Become a learning organization through relentless reflection
(hansei) and continuous improvement (kaizen)
14 Principles
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o Working Capital Management as a Competitive Advantage
o The real meaning of Valueo Self-Improvemento Applying the Toyota Way
Key Learning’s
8
20022003200420052006200720082009201020110
0.5
1
1.5Current RatioQuick Ratio
INDIAN INSTITUTE OF MANAGEMENT RAIPUR
Working Capital Management
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0
10
20
30
NWCCFOMoving average (CFO)
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Cash Cycle
20022003200420052006200720082009201020110
20
40
60
80
100
120
140
CCCDSIDSODPO
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2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
NPMGPMROAROE
Profitability
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Current Performance (Consumer Report 2011)
Automaker Overall Score
Honda 74Subaru 73Toyota 71Volvo 68Ford 67Hyundai 66Mazda 65Nissan 65Volkswagen 63Mercedes – Benz
57
BMW 57General Motors
56
Chrysler 43
Make & Model Overall Score
Lexus LS 460L 99BMW 135i 97Infiniti G37 (sedan) 95Toyota Camry Hybrid XLE 93Audi A6 (3.0T) 93Infiniti M37 93Nissan Altima 3.5 SR 93Chevrolet Corvette Z06 92Hyundai Genesis 3.8 (sedan)
92
Toyota Camry XLE (V6) 92Audi A8 L 91Lexus ES 350 91Nissan Altima 2.5 S 91
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Customer and the added value.
Identify Repetitive processes
Map the flow
Think creatively.
Start doing it and learn by doing using a PDCA.
Applying Toyota Way in your life
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THANK YOU