Toyota Executive Summary

Toyota Executive Summary - Executive Summary of the 14...

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Executive Summary of the 14 Toyota Way Principles Section I: Long-Term Philosophy Principle 1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals. Have a philosophical sense of purpose that supersedes any short-term decision making. Work, grow, and align the whole organization toward a common purpose that is bigger than making money. Understand your place in the history of the company and work to bring the company to the next level. Your philosophical mission is the foundation for all the other principles. Generate value for the customer, society, and the economy—it is your starting point. Evaluate every function in the company in terms of its ability to achieve this. Be responsible. Strive to decide your own fate. Act with self-reliance and trust in your own abilities. Accept responsibility for your conduct and maintain and improve the skills that enable you to produce added value. Section II: The Right Process Will Produce the Right Results Principle 2. Create a continuous process flow to bring problems to the surface. Redesign work processes to achieve high value-added, continuous flow. 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. Create flow to move material and information fast as well as to link processes and people together so that problems surface right away. Make flow evident throughout your organizational culture. It is the key to a true continuous improvement process and to developing people. Principle 3. Use “pull” systems to avoid overproduction. Provide your downline customers in the production process with what they want, when they want it, and in the amount they want. Material replenishment initiated by consumption is the basic principle of just-intime. Minimize your work in process and warehousing of inventory by stocking small amounts of each product and frequently restocking based on what the customer actually takes away. Be responsive to the day-by-day shifts in customer demand rather than relying on computer schedules and systems to track wasteful inventory. Principle 4. Level out the workload (heijunka). (Work like the tortoise, not
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Toyota Executive Summary - Executive Summary of the 14...

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