14 Toyota Way Principles

Toyota

Here is the briefly summary of the Toyota Way Principles:

  1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial gains. Have a philosophical sense of purpose and mission that supersedes any short-term decision-making. Work, grow, and align the whole organization toward a common purpose that is bigger than making money.
  2. The Right Process will produce the Right Results. Don’t hide problems within the organization, but create continuous process flow to bring them to the surface.
  3. Avoid overproduction by following the principle of just-in-time — namely, customers should get what they want, when they want it, and in the amount they want.
  4. Eliminate waste of human and material resources. Also, strive to cut back to zero the amount of time that any work project is sitting idle or waiting for someone to work on it.
  5. Build a culture of stopping to fix problems, to get quality right the first time.
  6. Standardized tasks are the foundation for continuous improvement and employee empowerment. Capture the accumulated learning about a process by institutionalising today’s best practices and allows employees to improve the standard through creative self-expression.
  7. Use visual and manual control so that no problems are hidden.
  8. Use technology to support people, not to replace people. Reject or modify technologies that conflict with your work culture. Nevertheless, encourage your people to consider new technologies when looking into new approaches to work.
  9. Develop such leaders in your organization who thoroughly understand the work, live the philosophy, and teach it to others. Do not view the leader’s job as simply accomplishing tasks. Leaders must be role models of the company’s philosophy and way of doing business.
  10. Develop exceptional people and teams who follow your company’s philosophy. Make an ongoing effort to teach individuals to work together as teams toward common goals.
  11. Have respect for your business partners and suppliers and treat them as an extension of your business.
  12. Continuously solving root problems improves organizational learning. Even high-level managers should go and see things for themselves, so that they will have more than a superficial understanding of the situation.
  13. Make decisions slowly by consensus, thoroughly considering all options; but implement decisions rapidly.
  14. Become a learning organization through relentless reflection (Hansei) and continuous improvement (Kaizen). Protect the organization’s knowledge and cultural base by developing stable personnel, careful promotion, and well thought-out succession systems.

Source: Toyota Way

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