14 Principles of Toyota Way

 Assalamualaikum Wr. Wb.


Good evening everyone. May we all always be in the protection of Allah SWT. Amin

As we know during productivity purpose, every company have many ways to achived the goals. Maybe one of you already know about Toyota way.

In this article we will share about 14 principe of Toyota Way that already sharing by Pak Kamal a few hours ago.


Part 1: Long-Term Philosophy 

Principle 1. Make your managerial decisions based on a long-term philosophy, even though sacrificing short-term financial goals

-       Have a philosophical mission that replaces short-term decision-making. Work, grow, and align the entire organization to achieve greater common goals bigger than just making money. Understand your place in the company's history and work to take the company to new heights. Your philosophical mission is the basis for all other principles.

-       Create value for customers, society and the economy–this is the starting point You. Evaluate the ability of each function within the company to achieve this.

-       Take responsibility. Try to decide your own destiny. Acting independent and believe in your own abilities. Accept responsibility for your actions and maintain and improve the skills that enable you add value. Unlike other automotive companies such as Ford, which has a mission to continue increase production and sales and provide adequate returns on

shareholders, Toyota never mentions the word shareholder in its mission. Toyota is more concerned with the long-term mission which is all aimed at the economic growth of the country where the Toyota subsidiary is located and the welfare of the stakeholders and add value to customers.


Part 2: The Right Process Will Give The Right Result

Broadly speaking, the Toyota Production System (TPS) places great emphasis on lean processes manufacturing where they are very enthusiastic about reducing waste. In this case, Just In Time (JIT) is very important. The production system from Toyota includes: Heijunka where the production schedule is mixed and leveled, One piece flow (kanban) where means make one unit at a time at the rate of money according to the pace of consumer demand or takt, Jidoka where the production process will be immediately stopped when a product is found disabled and everyone will feel it and immediately help to the part that is there is a defect. Meanwhile, Jidoka can be done because of the one piece flow system where the production is not mass-produced so that defective goods are more easily detected. If defects often occur in the same part, this indicates the need for Toyota Productive Maintenance (TPM) where everyone learns to clean, inspect, and maintain equipment.


Principle 2. Create a continuous flow of processes to raise issues to surface.

-       Redesign the work process so that it flows continuously and provides added value tall. Try to eliminate idle time in every work process or waiting for someone to do it.

-       Create flows to move materials and information quickly and linking processes and people together so that problems can be resolved immediately raised to the surface.

-       Make process flows a reality as part of your organizational culture. This is the key to true continuous improvement and to employee development.


Principle 3. Use a “pull” system to avoid overproduction.

-       Minimize your work in process (WIP) and warehouse inventory with store a small amount of each product and refill frequently based on what the customer actually takes.

-       Respond to shifts in customer demand from day to day rather than being dependent on computer schedules and systems for tracking redundant supplies

In carrying out the pull system, Toyota uses kanban.

Each process area or work cell in a production line has two kanban post boxes. One for withdrawal and one for production kanban. With operator-defined intervals will take kanban withdrawals that have been collected in the post box, and boxes or bins that have been collected is empty, to the location where the finished goods are components or assembly results from the process previously saved. Every pallet/bin that is full in the production kanban will be picked up and put into the post box production kanban. Operator will now put/attach withdrawal kanban to pallet or bin and bring it to its own process. When this new pallet is to be used, then this kanban withdrawal will be put back into the kanban withdrawal post box. On each process in the production line, production kanban is periodically taken from the post box for determine what goods to produce and how much to produce.


Principle 4. Level the workload (heijunka). (Work like a turtle and not like rabbit).

-       Eliminating waste is only a third of the equation to make lean is successful. Removes the overload of people and equipment and eliminating unevenness in the production schedule is equally important–but this usually not understood by companies seeking to implement lean principles.

-        Work to equalize the workload of all manufacturing processes and services as a way an alternative to the stop/go approach of working on projects in batches generally still the case in most companies.

Production to order does not guarantee a lean system. That's the way it is give rise to irregular conditions which eventually give rise to some waste or (e.g. overtime, inventory, express supply/delivery costs, worker stress, etc.). TPS get around this by leveling the load and not always producing based on order. This concept is known as heijunka.


Principle 5. Build a culture of stopping to fix problems and to gain quality good from the start.

-       Quality for customers determines your value proposition. - Use all available modern methods for quality assurance.

-       Build the ability to detect problems and to stop himself into your equipment. Develop a visual system to alert the team or team leader that there is a machine or process that needs help. Jidoka (machine with human intelligence) is the foundation in "building" quality.

-       Build a support system within your organization to solve problems with hurry up and - Build into your culture a philosophy to stop or slow down for getting the quality right from the start in order to increase productivity in the long run.

Some common examples of Jidoka usage are visual control, when the machine detects the box is full, the machine will give a warning in the form of a light and a buzzer to operator immediately picks up. When the operator takes a certain part wrong for a certain product, the machine will also give a warning buzzer. When there is damage to certain machines, then there is a light that tells which area of ​​the error to be corrected. When the product is finished in the oven, there will be an alarm warning. When there is excessive speed it will there are warnings or systems that reduce speed, etc. Jidoka uses visuals the most control and poka yoke system (anti-false) installed to help make things easier operator work and prevent errors from occurring.


Principle 6. Standards of work are the foundation of continuous improvement and employee empowerment.

-       Use stable iterative methods everywhere to maintain commonality, -time regularity, and regularity of your process results. This is the foundation of the process flow and pull system.

-       Capture learning about a process that accumulates to a certain point by standardizing current best practices. Allow expression and creativity individually to raise those standards, then enter them into in a new standard so that when someone moves, you can submit learning to the next person.


Principle 7. Use visual controls so that there are no hidden problems.

-       Use simple visual indicators to help people determine with immediately whether they are still within the standard or have deviated from the standard the. Avoid using computer screens if it distracts workers from his place of work.

-       Design a simple visual system in the place where the work is done, to supports flow and tensile systems.

-       Reduce your reports to a single sheet of paper if possible, though for your most important financial decisions.


Principle 8. Use only reliable, thoroughly tested technology to help your people and processes

-       Use technology to help people, not replace people. Often it's best to manually fix a process before adding technology to support the process.

-        New technologies are often unreliable and difficult to standardize and therefore it jeopardizes the “flow process”. A proven process in general should take precedence over new, untested technologies.

-       Carry out actual tests before adopting new technology into the process business, manufacturing system, or product.

-       Reject or modify technology that conflicts with your culture or that may compromise stability, reliability, and predictability.

-       Nonetheless, encourage your people to consider new technologies when seeking new approaches to their work. Implement quickly the technology that has been seriously considered if it has been proven through experiment and can improve flow in your process


Part 3: Adding Value To Organizations By Developing People and Partners your work.

Principle 9. Develop leaders who truly understand the work, live the philosophy, and teach it to others.

-       Develop leaders from within the organization, instead of buying them from outside organization. Don't look at a leader's job as just completing tasks and have people-management skills. Leaders must be role models in company philosophy and way of doing business.

-       - A good leader must understand the daily work in detail so he can be the best teacher for your company philosophy.


Principle 10. Develop people and groups with special abilities, who adhere to your company philosophy

-       Create a strong and stable culture in which values ​​and beliefs the company embraced and imbued over a period of many years.

-       Train individuals and groups with special abilities to work accordingly with the company philosophy, to achieve extraordinary results. Work really well hard to instill culture continuously.

-       Use cross-functional teams to improve quality and productivity and improve process flow by solving difficult technical problems. Empowerment occurs when people use tools to improve company.


Principle 11. Respect your network of partners and suppliers by challenging and help them improve

-       Respect your partners and suppliers and treat them as if they were an extension of your business.

-        Challenge your business partners to grow and develop.

-        This matter show that you value them. set challenging targets and help your partner achieve it.


Part 4: Solving the Root Problem Continuously To Support Organizational Learning

Principle 12. Go and see for yourself to understand the real situation (genchi genbutsu).

-       Solve problems and improve processes by coming to the source of the problem and personally observe and verify data and not just theorize based on what other people say or show on the computer screen.

-       Think and speak based on the data you have verified yourself.

-       Even high-level managers and executives should go and see for themselves exists so that they will have more than a superficial understanding to the situation


Principle 13. Make decisions slowly by consensus, considering all choices carefully, then implement those decisions very quickly

-       Don't take only one single direction and run that one before You consider all alternatives carefully. After you choose, run quickly but carefully.

-       Nemawashi is a process to discuss problems and potential solutions with all parties affected by the problem, to gather ideas from them, and to get agreement on which steps to take. This consensus process, although time consuming, helped to expand search for a solution, and since the decision has been taken, the conditions are ready for implemented quickly.


Principle 14. Become a learning organization through uncompromising self-reflection (hansei) and continuous improvement (kaizen).

Once you get a stable process, use the upgrade tools on an ongoing basis to find the causes of inefficiencies and apply countermeasures effectively. - Design processes that require almost no inventory. This will make time and wasted resources become apparent to all. When waste is seen, let employees use the improvement process continuously (kaizen) to eliminate it. - Protect the organization's knowledge base by developing permanent personnel, promotions slowly, and a very careful succession system. - Use hansei (self-reflection) at important stages and after you finish a project to publicly identify all the weaknesses of the project. Develop solutions to avoid the same mistakes. - Learn by standardizing best practices and not just discovering repeat the same thing with every new project and every new manager. [Liker, 2006]

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