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The Toyota way : 14 management principles from the world's greatest manufacturer

Liker is a professor of industrial and operations engineering at the University of Michigan and cofounder and director of the Japan Technology Management Program at the University of Michigan. How to speed up business processes, improve quality, and cut costs in any industry In factories around the world, Toyota consistently makes the highest-quality cars with the fewest defects of any competing manufacturer, while using fewer man-hours, less on-hand inventory, and half the floor space of its competitors. Complete with profiles of organizations that have successfully adopted Toyota's principles, this book shows managers in every industry how to improve business processes by: Eliminating wasted time and resources Building quality into workplace systems Finding low-cost but reliable alternatives to expensive new technology Producing in small quantities Turning every employee into a qualitycontrol inspector.

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The Toyota Way 14 Management Principles from the Worlds Greatest Manufacturer

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The 10th principle emphasizes the need of individuals and work teams to embrace the company's philosophy, with teams of people who are judged in success by their team achievements, rather than their individual efforts. Principle 11 looks to business partners, who are treated by Toyota much like they treat their employees. Toyota challenges them to do better and helps them to achieve it, providing cross functional teams to help suppliers discover and fix problems so that they can become a stronger, better supplier. The final principles embrace a philosophy of problem solving that emphasizes thorough understanding, consensus -based solutions swiftly implemented and continual reflection hansei and improvement kaizen.

The 12th principle Genchi Genbutsu sets out the expectation that managers will personally evaluate operations so that they have a firsthand understanding of situations and problems. Principle 13 encourages thorough consideration of possible solutions through a consensus process, with rapid implementation of decisions once reached nemawashi. The final principle requires that Toyota be a "learning organization", continually reflecting on its practices and striving for improvement.

According to Liker, the process of becoming a learning organization involves criticizing every aspect of what one does. There is a question of uptake of the principles now that Toyota has production operations in many different countries around the world. As a New York Times article notes, while the corporate culture may have been easily disseminated by word of mouth when Toyota manufacturing was only in Japan, with worldwide production, many different cultures must be taken into account.

A recent increase in vehicle recalls may be due, in part, to "a failure by Toyota to spread its obsession for craftsmanship among its growing ranks of overseas factory workers and managers. Toyota Way has been driven so deeply into the psyche of employees at all levels that it has morphed from a strategy into an important element of the company's culture.

One consequence was when Toyota was given reports of sudden acceleration in its vehicles and the company faced a potential recall situation.

The Toyota Way - Wikipedia

There were questions if Toyota's crisis was caused by the company losing sight of its own principles. Although one of the Toyota Way principles is to "build a culture of stopping to fix problems to get quality right the first time," Akio Toyoda , President and CEO, stated during Congressional hearings that the reason for the problems was that his "company grew too fast.

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Retrieved 26 March Clearly, our operations are going to become more and more globalized. With this in mind, we compiled a booklet, The Toyota Way , in order to transcend the diverse languages and cultures of our employees and to communicate our philosophy to them. The New York Times. Retrieved 29 January Inside the mind of Toyota: Archived from the original PDF on 14 September Government Printing Office, Serial No.