Researcher's Findings - 14 Principles
In 2004, Dr. Jeffrey Liker, a University of Michigan professor of industrial engineering, published "The
Toyota Way." In his book Liker calls the Toyota Way, "a system designed to provide the tools for people
to continually improve their work."[5] The system can be summarized in 14 principles.[6]
According to Liker, the 14 principles of The Toyota Way are organized in four sections: I) Long-Term
Philosophy, II) The Right Process Will Produce the Right Results, III) Add Value to the Organization by
Developing Your People, and IV) Continuously Solving Root Problems Drives Organizational Learning.
The principles are set out and briefly described below:
[edit]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.
People need purpose to find motivation and establish goals.
[edit]Section II — The Right Process Will Produce the Right Results
Principle 2
Create a continuous process flow to bring problems to the surface.
Work processes are redesigned to eliminate waste (muda) through the process of continuous
improvement — kaizen. The seven types of muda are:
1. Overproduction
2. Waiting (time on hand)
3. Unnecessary transport or conveyance
4. Overprocessing or incorrect processing
5. Excess inventory
6. Motion
7. Defects
Principle 3
Use "pull" systems to avoid overproduction.
A method where a process signals its predecessor that more material is needed. The pull system
produces only the required material after the subsequent operation signals a need for it. This process is
necessary to reduce overproduction.
Principle 4
Level out the workload (heijunka). (Work like the tortoise, not the hare).
This helps achieve the goal of minimizing waste (muda), not overburdening people or the equipment
(muri), and not creating uneven production levels (mura).
Principle 5
Build a culture of stopping the production line to fix problems, to get quality right the first time.
Quality takes precedence (Jidoka). Any employee in the Toyota Production System has the authority to
stop the process to signal a quality issue.
Principle 6
Standardized tasks and processes are the foundation for continuous improvement and employee
empowerment.
Although Toyota has a bureaucratic system, the way that it is implemented allows for continuous
improvement (kaizen) from the people affected by that system. It empowers the employee to aid in the
growth and improvement of the company.
Principle 7
Use visual control so no problems are hidden.
Included in this principle is the 5S Program - steps that are used to make all work spaces efficient and
productive, help people share work stations, reduce time looking for needed tools and improve the work
environment.
Sort: Sort out unneeded items
Straighten: Have a place for everything
Shine: Keep the area clean
Standardize: Create rules and standard operating procedures
Sustain: Maintain the system and continue to improve it
Principle 8
Use only reliable, thoroughly tested technology that serves your people and processes.
Technology is pulled by manufacturing, not pushed to manufacturing.
[edit]Section III — Add Value to the Organization by Developing Your People
Principle 9
Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
Without constant attention, the principles will fade. The principles have to be ingrained, it must be the way
one thinks. Employees must be educated and trained: they have to maintain a learning organization.
Principle 10
Develop exceptional people and teams who follow your company's philosophy.
Teams should consist of 4-5 people and numerous management tiers. Success is based on the team, not
the individual.
Principle 11
Respect your extended network of partners and suppliers by challenging them and helping them
improve.
Toyota treats suppliers much like they treat their employees, challenging them to do better and helping
them to achieve it. Toyota provides cross functional teams to help suppliers discover and fix problems so
that they can become a stronger, better supplier.
[edit]Section
IV — Continuously Solving Root Problems Drives
Organizational Learning
Principle 12
Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu).
Toyota managers are expected to "go-and-see" operations. Without experiencing the situation firsthand,
managers will not have an understanding of how it can be improved. Furthermore, managers use Tadashi
Yamashima's (President, Toyota Technical Center (TTC)) ten management principles as a guideline:
1. Always keep the final target in mind.
2. Clearly assign tasks to yourself and others.
3. Think and speak on verified, proven information and data.
4. Take full advantage of the wisdom and experiences of others to send, gather or discuss
information.
5. Share information with others in a timely fashion.
6. Always report, inform and consult in a timely manner.
7. Analyze and understand shortcomings in your capabilities in a measurable way.
8. Relentlessly strive to conduct kaizen activities.
9. Think "outside the box," or beyond common sense and standard rules.
10. Always be mindful of protecting your safety and health.
Principle 13
Make decisions slowly by consensus, thoroughly considering all options; implement decisions
rapidly (nemawashi).
The following are decision parameters:
1. Find what is really going on (go-and-see) to test
2. Determine the underlying cause
3. Consider a broad range of alternatives
4. Build consensus on the resolution
5. Use efficient communication tools
Principle 14
Become a learning organization through relentless reflection (hansei) and continuous
improvement (kaizen).
The process of becoming a learning organization involves criticizing every aspect of what one does. The
general problem solving technique to determine the root cause of a problem includes:
1. Initial problem perception
2. Clarify the problem
3. Locate area/point of cause
4. Investigate root cause (5 whys)
5. Countermeasure
6. Evaluate
7. Standardize
