The Toyota Way
Book Summary of The Toyota Way, 14 management principles from the world’s greatest manufacturer by Jeffrey K. Liker.
A highly recommended classics which is even more relevant today. In his book, The Toyota Way, Liker shared on Toyota’s unique approach to Lean Management.
Layered upon the 4 levels i.e., Philosophy, Process, People & Partners and Problem Solving, Liker discussed the 14 management principles which will provide companies the edge to thrive on new possibilities and create real leaders.
The following is a quick snapshot of the principles:
Long-term thinking is part of the value system of the corporate world
Principle 1: Organisations need to apply a long-term philosophy. Designing a long-term strategy is key to remain competitive instead of short-term financial gains.
The right processes will produce the right results
Principle 2: One-piece flow approach to unveil issues obstructing the smooth flow of the value stream. Work processes are redesigned to eliminate wastes.
Principle 3: Use ‘pull’ systems and avoid overproduction. This is where companies only make enough products which is based on actual demand and not on forecasts.
Principle 4: Level the workload is also known as “heijunka.” Production levels must match the needs so the pace of production must remain stable and balanced.
Principle 5: Build the right culture of stopping to fix problems, to get quality right the first time.
Principle 6: Standardize tasks to keep things consistent and smooth to minimize defects.
Principle 7: Use visual control so no problems are hidden. Ensure workspaces are efficient and productive.
Principle 8: Use only reliable, thoroughly tested technology that serves the people and processes.
PEOPLE & PARTNERS
Add value to the organization by developing your people
Principle 9: Grow leaders who live the philosophy and trained in the principles of a learning organization.
Principle 10: Develop exceptional people and teams to live the philosophy towards the corporate vision. With alignment, respect and appreciation, the members can leverage on each other to scale greater heights.
Principle 11: Respect extended network of partners and suppliers. Uncover and fix problems together so that the community can become stronger and better.
Continuously drives organizational learning by solving root problems
Principle 12: Go see for yourself to observe the source of the problem. Understand the value stream well to get the big picture correct.
Principle 13: Decide slowly, implement rapidly. Taking time to analyse all the options and seek consensus from all stakeholders. Once the solution is confirmed, the action can be fast.
Principle 14: Become a learning organization through relentless reflection (Hansei) and continuous improvement (Kaizen).
Source: The Toyota Way – 14 Management Principles from the World’s Greatest Manufacturer by Jeffrey K. Liker (Author)
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