Book Review - Toyota Way
The Toyota Way - 14 Management Principles
Book Review
Of
The Toyota Way
The Toyota Way - 14 Management Principles
Since Toyota’s founding we have adhered to the core principle of contributing to society through the practice of manufacturing high-quality products and services. Our business practices and activities based on this core principle created values, beliefs and business methods that over the years have become a source of competitive advantage. These are the managerial values and business methods that are known collectively as the Toyota Way.
—Fujio Cho, President Toyota
The Toyota Way - 14 Management Principles
14
Principle 1
13
12 • Base your management decisions on a long11 term philosophy, even at the expense of short10 term financial goals.
9
1. Align the organization toward a purpose greater than
8
“making money.”
7
2. Generate value for the customer,
6
society and the economy.
5
3. Be responsible. Accept
4
responsibility for your conduct and maintain and improve the
3
skills that enable you to produce
2
added value.
1
The Toyota Way - 14 Management Principles
14
Principle 2
13
12 • Create a continuous process flow to bring
11 problems to the surface.
10
9
1.Redesign processes to achieve
8
continuous flow.
7
2.Create flow to move material
6
and information fast.
5
3.Link processes and people so that problems surface right away.
4
3
4.Make flow obvious throughout your organizational culture.
2
1
The Toyota Way - 14 Management Principles
14
Principle 3
13
12 • Use “pull” systems to avoid overproduction.
11
10 1.Provide downstream customers
9 in the process with what they want, they want it, and in the
8 when amount that they want.
7
Pull vs Push
6 2.Material replenishment initiated by
5 consumption is the basis for just-in-time. 4 Just-in Time - an organized
3 system of inventory buffers.
2
1
The Toyota Way - 14 Management Principles
Book Review
Of
The Toyota Way
The Toyota Way - 14 Management Principles
Since Toyota’s founding we have adhered to the core principle of contributing to society through the practice of manufacturing high-quality products and services. Our business practices and activities based on this core principle created values, beliefs and business methods that over the years have become a source of competitive advantage. These are the managerial values and business methods that are known collectively as the Toyota Way.
—Fujio Cho, President Toyota
The Toyota Way - 14 Management Principles
14
Principle 1
13
12 • Base your management decisions on a long11 term philosophy, even at the expense of short10 term financial goals.
9
1. Align the organization toward a purpose greater than
8
“making money.”
7
2. Generate value for the customer,
6
society and the economy.
5
3. Be responsible. Accept
4
responsibility for your conduct and maintain and improve the
3
skills that enable you to produce
2
added value.
1
The Toyota Way - 14 Management Principles
14
Principle 2
13
12 • Create a continuous process flow to bring
11 problems to the surface.
10
9
1.Redesign processes to achieve
8
continuous flow.
7
2.Create flow to move material
6
and information fast.
5
3.Link processes and people so that problems surface right away.
4
3
4.Make flow obvious throughout your organizational culture.
2
1
The Toyota Way - 14 Management Principles
14
Principle 3
13
12 • Use “pull” systems to avoid overproduction.
11
10 1.Provide downstream customers
9 in the process with what they want, they want it, and in the
8 when amount that they want.
7
Pull vs Push
6 2.Material replenishment initiated by
5 consumption is the basis for just-in-time. 4 Just-in Time - an organized
3 system of inventory buffers.
2
1
The Toyota Way - 14 Management Principles