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By:
Vadim Kotelnikov
Founder,
Ten3 Business e-Coach
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Inspiration and
Innovation
Unlimited!
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See the Big Picture first |
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Specific Factors Underlying Toyota's Success
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Lean
manufacturing system.
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An effective and efficient human resources management system, the
cornerstone of which is a high level of employee loyalty and
commitment to quality.
Kaizen Mindset
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A state-of-the-art assembly system incorporating the latest robotic
technology.
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A well-coordinated network of world-class suppliers.
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A highly effective and efficient
just-in-time (JIT) inventory system.
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Toyota's 10 Management
Principles
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Transitioning Your Company To a Lean
Enterprise
13 Tips
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Toyota’s Global Competitive Advantage
Toyota’s global
competitive advantage
is based on a corporate philosophy known as the Toyota Production
System. The system depends in part on a human resources management
policy that
stimulates employee creativity and loyalty but also on a highly
efficient network of suppliers and components manufacturers.
Employee Empowerment: Average Annual Results
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More than 700,000 improvement
suggestions
were submitted by Toyota's employees.
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That is an average of over 10
improvement suggestions per employee per year.
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Over 99% of suggestions were
implemented.
The Toyota Way: 14
Principles
The
Toyota Way is not the Toyota Production System
(TPS).
The 14 Principles of the Toyota Way
is a management philosophy used by the Toyota
corporation that includes TPS, also known as lean
manufacturing. TPS is the most systematic and highly
developed example of what the principles of the Toyota
Way can accomplish. The Toyota Way consists of the
foundational principles of the Toyota
culture,
which allows the TPS to function so effectively...
More
Corporate Culture
The fundamental reason for
Toyota's success in the global marketplace lies in its corporate
philosophy – the set of rules and attitudes that govern the use of
its resources.
Kaizen
Culture: 8 Key Elements
Toyota have successfully penetrated global markets
and established a world-wide presence by virtue of its
productivity. The company's approach to both product development
and distribution is very consumer-friendly and market-driven.
Toyota's philosophy
of
empowering its workers
is the centrepiece of a human resources management system that
fosters creativity,
continuous improvement, and
innovation
by encouraging employee participation, and that likewise engenders
high levels of employee loyalty. Knowing that a workplace
with high morale and job satisfaction is more likely to produce
reliable, high-quality products at affordable prices,
Toyota have institutionalized many successful workforce practices.
Toyota has done so not only in its own plants but also in supplier
plants that were experiencing problems.1
Although many car
manufacturers have earned a reputation for building high-quality
cars, they have been unable to overcome Toyota's advantages in human
resource management, supplier networks and distribution systems in
the highly competitive car market. Much of Toyota's success in the
world markets is attributed directly to the
synergistic
performance of its policies in human resources management and
supply-chain networks.
Five Ss
The Five Ss
refer to the five dimensions of of workplace optimization:
Seiri (Sort),
Seiton (Set in order), Seiso (Shine), Seiketsu (Standardize), and
Shitsuke (Sustain)...
More
7 Principles of TPS
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Pull Production:
To reduce inventory holding costs and
lead times, Toyota developed the pull production method wherein the
quantity of work performed at each stage of the
process is dictated
solely by demand for materials from the immediate next stage. The
Kamban scheme coordinates the flow of small containers of
materials between stages. This is where the term
Just-in-Time
(JIT) originated. ..
More
The Focus of Toyota
Production System
Real TPS is not just about “flow” or
“pull production” or “cellular manufacturing” or "load leveling".
TPS in Toyota is primarily concerned with making a profit, and
satisfying the customer with the highest possible quality at the
lowest cost in the shortest lead-time, while developing the talents
and skills of its workforce through rigorous improvement routines
and problem solving disciplines. This stated aim is mixed in with
the twin production principles of Just in Time (make and deliver the
right part, in the right amount, at the right time), and Jidoka
(build in quality at the process), as well as the notion of
continuous
improvement by standardization and elimination of waste in all
operations to improve quality, cost, productivity, lead-time,
safety, morale and other metrics as needed.2
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Free
Micro-courses
References:
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Creating
Sustainable Competitive Advantage: The Toyota Philosophy and Its Effects,
M. Reza Vaghefi
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TPS vs. Lean and the Law of Unintended
Consequences, Art Smalley, President, Art of Lean, Inc.
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Lean Manufacturing Overview,
42 PowerPoint slides by
Factory Strategies Group LLC
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Toyota Production System,
Taiichi Ohno
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The Toyota Way, Jeffrey Liker
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Kanban Just-In-Time at Toyota,
Japan Management Association
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Lean Manufacturing That Works, Bill
Carreira
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Lean Production Simplified, Pascal
Dennis, John Shook
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The Lean Manufacturing Pocket Handbook,
Kenneth W. Dailey
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Study of the Toyota Production System:
From an Industrial Engineering Viewpoint, Shigeo Shingo
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Kaizen: The Key To Japan's Competitive Success,
Masaaki Imai
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Kaizen,
25 PowerPoint slides by
Factory Strategies Group LLC
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