What is Toyota ? ManufacturingCompany

Cars Aircrafts

Ships Tanks

Largest manufacturing company

Ethics

Why Toyota ?

• $30 billion-$50 billion cash reserves

• ¥10 trillion in 2005 (largest profit in history of Japan

• Its Sales volume in many countries is more then the domestic ones

This company must be doing something right !!

Principles

Make decisions on a longterm philosophy,

Even at an expense of short term financial goals !!

Make decisions on a long term philosophy, Even at an expense of

short term financial goals !!

A sound analysis demonstrated that your company Could be more financially valuable

if it were broken Up and assets sold offrather then continuing as a company

Short term Long term (Toyota)

Why ?Leaders must take all the Responsibility !!

Leaders must take all the responsibility

In 1948

Japanese economy

Solution ??

Kiichiro Toyoda

Lay off 1,600 “WORKERS”

Normally • He resigned himself• Voluntarily made

1600 workers resign

2nd principle

The right process will producethe right result

The right process will Produce the right result

Right process ??

The Lean management

Eliminating waste

Costumer places an

order

Collect the cash Why ?

Time line

Product made

Customer places an

order

The cash was received

Waste time = 1hrWaste time = 1.5hr

Right process = the lean management

Right result = waste was eliminated

3rd principle

Standardized Tasks and process are The foundation for continuous Improvement and employee empowerment

Achieve

What are the goals ?

Lowest price

Best quality

Standards

Standards

Stepping stone

Rigidness

Building the best product With lowest cost !!

Continuousimprovement

4th

Principle

Japanese management

# 1# 3# 5

Explore POTENTIALproblems

& there solutions !

It means “General agreement”

rapidly

• Removed all the potential problems.

• Got an agreed solution to those problems.

+

Nothing to hold you back =

There is one more thing !! There are ten more things !!

Thank you

Any questions ?