The Toyota Way summarized the management principles of Toyota in a 4P model: Philosophy, Process, People, and Problem Solving (see Figure 8.21). The 4Ps form a pyramid, the foundation of which is a long‐term philosophy that focuses on adding value to customers and society. Building on that is Toyota’s investment in lean processes, which concentrates on shortening lead time by eliminating waste. Eliminating waste is done by people using rigorous problem‐solving methods – the top two layers of the pyramid. Toyota’s management system is described by 14 principles within these 4 levels (Figure 8.21).
Fourteen Principles of the Toyota Way
Long‐Term Philosophy
Principle 1. Base your management decisions on a long‐term philosophy, even at the expense of short‐term financial goals.
Lean Processes: The Right Process will Produce the Right Results
Principle 2. Create a continuous process “flow” to bring problems to the surface.
Principle 3. Use “pull” systems to avoid overproduction.
Principle 4. Level out the workload – like the tortoise, not the hare.
Principle 5. Build a culture of stopping to fix problems, to get quality right the first time.
Principle 6. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.
Principle 7. Use visual controls so no problems are hidden.
Principle 8. Use only reliable, thoroughly tested technology that serves your people and processes.
Develop and Challenge Your People and Partners Through Long‐term Relationships
Principle 9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
Principle 10. Develop exceptional people and teams who follow your company’s philosophy.
Principle 11. Respect your suppliers by challenging them and helping them improve.
Problem Solving and Continuous Improvement Drive Organizational Learning
Principle 12. Go and see for yourself to thoroughly understand the situation.
Principle 13. Make decisions slowly by consensus, thoroughly considering all opinions; implement decisions rapidly.
Principle 14. Become a learning organization through relentless reflection and continuous improvement (Liker 2004).
If we carefully look at these 14 principles, we find they are all statements of beliefs and values. They are about Toyota’s culture.
Philosophy is about Toyota’s purpose and why they exist.
Process is about what Toyota believes leads to operational excellence – constantly eliminating waste.
People are what drive the company forward and culture is what teaches the people how to act, think, and feel to work together toward a common goal.
Problem solving is the way Toyota people focus their efforts to continually improve.
Leave a Reply