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About the Author About the Author JEFFREY K. LIKER, Ph. DProfessor of Industrial and Operations Engineering at the

University of Michigan.Co-owner of lean consulting firm

Optiprise, Inc.His Shingo-Prize winning work has

appeared in The Harvard Business Review, Sloan Management Review & other leading publications.

DAVID P. MEIER

President of Lean Associates, Inc

Lean Associates, Inc It is a consulting company dedicated to

supporting other organisations in their efforts to learn from the Toyota Way.

Group leader for Toyota Motor Manufacturing for ten years

ACKNOWLEDGEMENTSACKNOWLEDGEMENTSNote from JEFF LIKER•When David and I completed The Toyota Way Fieldbook, I thought we had completed the series of books•But David believed that there were lot to say about the 4Ps•We have a contract for four more books 1.Toyota Talent 2.Toyota Culture 3.Toyota Process 4.Problem Solving•I have been continuing my Toyota studies,visiting operations in Japan,Europe, Indonesia, and the U.S.

•Miyadera Kazuhiko,executive vice president starting up a Toyota Research and development center for Europe spenthours describing how he had developed his own deep engineering talent and was trying to accelarate the process inEurope.

•Ed Mantey,vice president of the Toyota Technical Center in Ann Arbor,Michigan,explained the philosophy of training engineersand relationship to maintaining theKnow-how database.

Note from David Meirer•I owe thanks to Toyota for providing me the opportunity to learn their methods and to develop skills as a teacher.

•In 1987 I had the privilege of working with ISAO KATO

•Mr.Kato has been teaching job instruction to Toyota leaders for over three decades and has been personally responsible for the development of thousands of Toyota employees.

FOREWARDFOREWARD

•Using Toyota as a model ,the arc of the book follows a straightforward approach that any company might want to consider with an eye toward integrating employees into the business of high quality,lean manufacturing.

•Toyota’s commitment to associate education and development has led to the establishment of formal centers of learning at The University of Toyota in California The Global Production Support Center in Kentucky The Toyota Institute in Japan The Toyota Academy in U.K

PREFACEPREFACE

•Toyota’s phenomenal success is a business story known to the world.•Information on Toyota’s production system has been widely available for 30 years.•No other company has been able to complete Toyota’s results.•It is the knowledge and capability of people that distinguishes any company from another.•Individuals work to develop highly dependable suppliers,they collaborate with machinery suppliers to develop equipment that fits the specific needs of their production system .•People merely want to copy the outward appearance of what Toyota is doing but not its culture and infrastructure. •The Toyota Production System:Beyond Large Scale Production,Taiichi Ohno,the father of the TPS through out the book describes his own personal awareness and devotion to the success of the process even though he doubted his own ability to implement it.

PART ONE*Getting The Organization Ready To Develop Exceptional People

Give Me Six Hours To Chop Down A Tree And I Will Spend The First Four Hours Sharpening The Axe. Abraham Lincoln

CHAPTER ONE What Can We Learn From Toyota About Developing Talent ?

The Philosophy Of Training The Philosophy Of Training And Development Within And Development Within ToyotaToyotaWe do not just build cars; we build people.

Developing EXCEPTIONAL people is Toyota’s number one priority.

Essence Of Toyota’s SuccessEssence Of Toyota’s Success

90% or more of what we consider talent in the life of company employees is actually learned through effort and repeated practice.

What Toyota has been able to do is gather competent &Trainable people from around the world and,with Considerable time &effort ,develop high levels of Talent within the masses

Philosophy of developing Philosophy of developing people.people. Principle 1 Base management decisions on a long-

term philosophy, even at the expense of short-term financial goals.

Principle 6 Standardized process are the

foundation for continuous improvement.

Principle 9 Grow leaders who thoroughly

understand the work & who live the philosophy & teach it to others.

Principle 10: Develop Exceptional people and teams who

follow your company’s philosophy.

Principle 11: Respect your suppliers by challenging them

and helping them improve.

Principle 14: Become a learning organisation through

relentless reflection and continuous improvement.

The Unfortunate RealityThe Unfortunate Reality People are our most valuable resource

The Cycle of Struggle And The Cycle of Struggle And Firefighting.Firefighting.

Ineffective trainingVariable and ineffective results

FirefightingNo time for training

Breaking the cycle of defeat Breaking the cycle of defeat to create a cycle of success.to create a cycle of success.“You make time for the things you want to do in life”.

3 factors to be targeted to break the cycle.

Defining Critical Knowledge Transferring Critical Knowledge

Follow-up

If people are the answer, If people are the answer, selecting quality people selecting quality people must be the key.must be the key.Strong concentrated effort to develop the

Japanese workforce.Toyota does pay good wages, but not the

highest in the industry. It took over one of the worst performing

plans in the GM & turned it into a successful one.

It hired people from lowest-performing states and produced incredible results.

Toyota mainly located in rural areas. It is interested in hiring people with a strong work ethic (farmers).

Develop People To Ensure Develop People To Ensure Prosperity.Prosperity.only people are able to think, to

solve problem, and to improve.People are the key to expanding

and strengthening the company

CHAPtER TWO CHAPtER TWO

Toyota Works Hard To Develop Exceptional People.

People Development Is People Development Is Critical To ToyotaCritical To ToyotaToyota works hard to develop exceptional

people.People development is critical to Toyota.Ohno needed people with thinking capability.He needed capable massesThe development of capable masses requires a

clear plan, time and patience.The people whom Toyota selects must have the

capacity and the desire to LEARNToyota employees also bring to bear issuesWhat allows it to be successful is the efforts and

interest in drawing out the best of the employees abilities.

•People with general problem solving capability and those willing to work in ateam are selected.

•The objectives is to provide benefits to the employee which in turn also returns benefits to the company.

•Toyota creates situations n which there is equal balance between reward and punishment.

•On reward side Toyota Motor Manufacturing kentucky has an annual award ceremony for all employees who achieved perfect attendance in the previous year.

•On the Punishment side repeated unexcused absences are one of the easiest ways to lose a job.

The Toyota ProductionThe Toyota ProductionDemands High CapabilityDemands High Capability

•First,it has stretched the “just in time” philosophy beyond the assembly line by connecting all the process.•Second,Toyota has built into the tasks quality checks and cross-training that require more than minimum levels of competence.•Every person must be trained at a high level to work precisely.•The system demands high capability and provides a cycle of continuous improvement. Sustaining & continuously improves Creates a demanding system Requires high capability Develops highly talented people

Standardizing Training To Standardizing Training To Meet Global NeedsMeet Global NeedsToyota makes exceptional efforts to train

and develop people for success It is increasing its emphasis on training by

opening three regional training centers called GLOBAL PRODUCTION CENTERS in Thailand,England and Kentucky.

There is a formal certification process to become a trainer that includes being certified in the individual tasks taught to students.

Toyota’s Human System Toyota’s Human System ModelModel

Human System is the development of people including the ability to attract capable people, engage them, and enroll them as full-fledged members of the Toyota culture.

The initial intent is to attract potential employees, select the most appropriate, and orient them to the Toyota Way.

Next step is to familiarize to provide them with job roles and provide them with on-the-job development training and coaching.

TPS identifies problems. Human system solves it

Fundamentals of Training Are Applicable Fundamentals of Training Are Applicable To Developing Employee TalentTo Developing Employee Talent

Toyota employees are expected to participate in additional activities such as improving communication skills,leadership abilities,planning,developing new methods or procedures,designing new products or correcting problems in work area.

One problem is that most people tend to look at any situation and first consider the unique or creative aspects rather than the common and teachable aspects.

Teaching Fundamental Skills In A Teaching Fundamental Skills In A Standardized Way At ToyotaStandardized Way At ToyotaGPC to address the challenging task of

developing generic training for Toyota worldwide.

Generic level to teach the basics

Specifics to be taught on the job

When all of the job tasks were analyzed by Toyota, eight fundamental skills were identified.

The Skills are:1.Tightening bolts or nuts on in-line surfaces.2.Tightening bolts or nuts on any six angled surfaces.3.Tightening self-tapping screws.4.Coupling connectors.5.Inserting hole plugs.6.Mistake-proofing.7.Tightening mating fasteners.8.Memorizing manifest.•Each task there is a computer. •Video manual provides descriptions, key points and illustrates the right and the wrong ways to the students.•Fundamental principle of the job instruction method-to break the job elements into small portions. •Learn it easily.

Pay Now or Pay Pay Now or Pay LaterLaterAfter learning the fundamental skills,the

trainer can focus on the details of the specific job.

The associate will learn the job more effectively.

Can You Achieve Results Can You Achieve Results Similar To Those of Toyota?Similar To Those of Toyota?Toyota selects capable people with a good

work ethic that seem moldable into the Toyota way of doing things.

Training and development is considered as the life blood of the company.

Challenge is to maintain high levels of development as Toyota expands and globalizes.

Can other companies do this? You too can do it if your company is truly dedicated to excellence.