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Toyota CultureToyota Culture Toyota’s Educational Challenge, Production System and Toyota’s Educational Challenge, Production System and

Global strategiesGlobal strategiesThere are 51 large factories in 26 countries, producingThere are 51 large factories in 26 countries, producing

9 million cars with high operating profit (9 trillion Yen) in 2006 9 million cars with high operating profit (9 trillion Yen) in 2006

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Toyota CultureToyota Culture1.Japanese spirit combined with Western learning. 1.Japanese spirit combined with Western learning.

(Learning Western knowledge, technology without (Learning Western knowledge, technology without losing Japanese cultural identity) losing Japanese cultural identity) 和魂洋才　和魂洋才　

2. 2. Toyota Toyota 4 P Model4 P Model

3. 3. Human Resource PolicyHuman Resource Policy

4 4 Team Work for Team Work for KaizenKaizen and and MonozukuriMonozukuri (continuous improvement in quality (continuous improvement in quality control)control)

5. 5. CoexistenceCoexistence with local communities with local communities involving local peopleinvolving local people

66. . Best service Best service for the customersfor the customers

7. 7. Environmentally friendly Environmentally friendly cars and cars and CSRCSR

Toyota 4 P MethodToyota 4 P Method

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Toyota 4 P MethodToyota 4 P Method The Toyota way, the management principles of The Toyota way, the management principles of

Toyota is a Toyota is a 4P model4P model: : Philosophy, Process, Philosophy, Process, People and Problem SolvingPeople and Problem Solving. . The 4Ps The 4Ps form a form a pyramid, the foundation of which is pyramid, the foundation of which is a long-term a long-term philosophy that focuses on adding value to philosophy that focuses on adding value to customers and societycustomers and society. Building on that is . Building on that is Toyota’s investment is lean process, which Toyota’s investment is lean process, which concentrates on shortening lead time by concentrates on shortening lead time by eliminating wasteeliminating waste. . Eliminating waste is done by Eliminating waste is done by people using rigorous people using rigorous problem-solving methods-problem-solving methods---the top two layers of the pyramid. Toyota’s the top two layers of the pyramid. Toyota’s management system is described by fourteen management system is described by fourteen principles within these four levels. principles within these four levels. (Jeffrey Liker, 2008)(Jeffrey Liker, 2008)

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The Summary of 14 Principles of the Toyota WayThe Summary of 14 Principles of the Toyota Way Long-Term Philosophy Long-Term Philosophy (in management and (in management and

production system)production system) The Right ProcessThe Right Process Will Produce the Right Results Will Produce the Right Results

Problem solving and mutual benefit through Problem solving and mutual benefit through teamworkteamwork

Avoiding over productionAvoiding over production

Standardized tasks and processes for continuous Standardized tasks and processes for continuous improvement and employee empowerment improvement and employee empowerment

Develop and Challenge Develop and Challenge Your People and Partners Your People and Partners through Long-term Relationshipsthrough Long-term Relationships

Problem Solving Problem Solving and Continuous Improvementand Continuous Improvement Genchi Genbutsu: Genchi Genbutsu: Go and see for yourself to Go and see for yourself to

thoroughly understand the reality and situationthoroughly understand the reality and situation23/04/2123/04/21 55

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Harvard Business Review Harvard Business Review Comparison between factories in GM and factories in ToyotaComparison between factories in GM and factories in Toyota

1 1 Sense of belonging to ToyotaSense of belonging to Toyota by life-time commitment by life-time commitment 2 2 High motivation and moralHigh motivation and moral for working for working 3 Workers’ pride 3 Workers’ pride as a member of engineering groupas a member of engineering group 4 4 Collaborative team workCollaborative team work by the workers and managers by the workers and managers 5 5 High quality control by strict regulationHigh quality control by strict regulation creates pride and creates pride and

innovation innovation 6 6 Kaizen (Improvement)Kaizen (Improvement) from the line work to the top from the line work to the top managementmanagement 7 7 EngineersEngineers can participate in the process of the top can participate in the process of the top managementmanagement 8 All the workers are encouraged to 8 All the workers are encouraged to prepare for the futureprepare for the future needs needs and improvementand improvement 9 All the workers are encouraged to suggest and propose 9 All the workers are encouraged to suggest and propose new ideas for Kaizennew ideas for Kaizen (improvement) in any process of (improvement) in any process of production and development production and development

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Toyota’s Production system Toyota’s Production system overseasoverseas

In 1985 Toyota established In 1985 Toyota established a joint a joint ventureventure New United Motor New United Motor Manufacturing Incorporated (NUMM) Manufacturing Incorporated (NUMM) with GM in the United States with GM in the United States in order to in order to recover a GM factory in California.recover a GM factory in California.

In 1990 In 1990 The Machines that Changed the The Machines that Changed the WorldWorld published by several professors published by several professors of MIT introduced of MIT introduced Toyota’s Production Toyota’s Production system system to the world.to the world.

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Working as a Human being Working as a Human being supported by the strength of teamwork.supported by the strength of teamwork.

Factory workers are working Factory workers are working as a human being as a human being not as part of the machinery.not as part of the machinery.

DefectivesDefectives must be cut to zero as much as must be cut to zero as much as possible.possible.

If a problem occur the entire line is stopped If a problem occur the entire line is stopped immediately. immediately. Then all workers and supervisors Then all workers and supervisors put their heads together to solve the problemput their heads together to solve the problem. . This leads to eliminate every waste of This leads to eliminate every waste of defective, error, or accident and improve defective, error, or accident and improve productivity.productivity.

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Toyota’s Production systemToyota’s Production system• In 1949 Toyota produced onlyIn 1949 Toyota produced only10001000

vehicles a month. The industrial vehicles a month. The industrial productivity of USA was eight productivity of USA was eight times greater than of Japan. times greater than of Japan.

In 2006 Toyota group’s worldwide In 2006 Toyota group’s worldwide production plan aims at producing production plan aims at producing 8.4 million vehicles.8.4 million vehicles.

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Toyota’s Production SystemToyota’s Production Systembased on Japanese creativity combined with based on Japanese creativity combined with

Western Expertise.Western Expertise.The executives of Toyota knew that Toyota The executives of Toyota knew that Toyota

or even the Japanese automobile industry or even the Japanese automobile industry could not survive could not survive by simply copying by simply copying the the operations of America.operations of America.

They knew overproduction can kill their They knew overproduction can kill their company.company.

Toyota knew how important it was to Toyota knew how important it was to manufacture an manufacture an appropriate number of appropriate number of appropriate (marketable) products at an appropriate (marketable) products at an appropriate time.appropriate time.

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Toyota’s Production system is Toyota’s Production system is based on based on Supermarket SystemSupermarket System

Several engines or transmissions for Several engines or transmissions for each type of vehicle are placed on each type of vehicle are placed on shelves and the assembly plant shelves and the assembly plant personnel picks up as many engines or personnel picks up as many engines or transmissions as they need from the transmissions as they need from the shelves. All engines are shelves. All engines are labeled with labeled with information cardsinformation cards which are removed which are removed when the engines are picked up.when the engines are picked up.

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Leading Motives of the Toyota Production SystemLeading Motives of the Toyota Production SystemAbsolutely eliminate waste from every Absolutely eliminate waste from every

phase of the production processphase of the production process Waste of stock on handWaste of stock on handWaste of processingWaste of processingWaste of overproductionWaste of overproductionWaste of time on handWaste of time on handWaste of movementWaste of movementWaste of making defective productsWaste of making defective productsExcellent service for the customersExcellent service for the customers Japan on the Globe (No.368), October 31, 2004.Japan on the Globe (No.368), October 31, 2004.

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The Policy of SONY in UKThe Policy of SONY in UK

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The Policy of SONY in UKThe Policy of SONY in UKRepresenting Japanese Business Management and Representing Japanese Business Management and Manufacturing: Manufacturing: 2200 British workers and producing 2200 British workers and producing

half-million TV sets a yearhalf-million TV sets a year

Mr. Morita’s Mission, The Chairman of SONYMr. Morita’s Mission, The Chairman of SONYTechnology and philosophy are globalized but Technology and philosophy are globalized but SONY SONY

respects each cultural systems and identitiesrespects each cultural systems and identities in overseas in overseas factories.factories.

Technology enrich peoples life.Technology enrich peoples life.

Engineers should be involved in top management.Engineers should be involved in top management.

Top Management should have Top Management should have technological backgrounds.technological backgrounds.

Manufacturing is value adding business. Manufacturing is value adding business.

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Philosophy of SONYPhilosophy of SONYSONY in Europe are SONY in Europe are independent fromindependent from

SONY in Tokyo but follows SONY in Tokyo but follows overall overall guidelines.guidelines.

SONY in UK has got all SONY in UK has got all materials in Europematerials in Europe..SONY in UK has SONY in UK has never been involved in never been involved in

strikestrike for the past 17 years. for the past 17 years. SONY highly estimated SONY highly estimated the Process of the Process of

Manufacturing and Quality of EngineersManufacturing and Quality of Engineers..Top-Management = Top-Management = The voice of EngineersThe voice of Engineers

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The Voice of British Director of The Voice of British Director of SONY in UKSONY in UK

1. 1. High CommitmentHigh Commitment to the Company to the Company2. 2. Work Ethic=Team Work and HarmonyWork Ethic=Team Work and Harmony3. 3. A long and mid-term viewsA long and mid-term views4 A 4 A long and mid-term investmentlong and mid-term investment in in innovated products and people for innovated products and people for high quality resulthigh quality result5. 5. Good communicationGood communication with shared with shared informationinformation

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The Voice of British Engineer of The Voice of British Engineer of SONY in UKSONY in UK

Constant Constant Involvement of PeopleInvolvement of PeopleProduction process and lines are Production process and lines are

not isolated.not isolated.The The high quality of Engineershigh quality of Engineers for for

excellentexcellent

manufacturingmanufacturing

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The Voice of British Line Worker of The Voice of British Line Worker of SONY in UKSONY in UK

Workers Workers are responsible for their are responsible for their workwork..

Very few Very few mistakesmistakesWe could work out some mistakes We could work out some mistakes

as a teamas a team..We feel We feel we are part of teamwe are part of team with with

the same target.the same target.

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Mr. Morita’s Mission,Mr. Morita’s Mission,The Chairman of SONYThe Chairman of SONY

Technology and philosophy are Technology and philosophy are

globalized but globalized but SONY respects each cultural SONY respects each cultural systems and identitiessystems and identities in overseas in overseas factories.factories.

Technology enrich peoples life.Technology enrich peoples life.Engineers should be involved in top Engineers should be involved in top

management.management.Top Management should have Top Management should have technological technological

backgrounds.backgrounds.Manufacturing is value adding business. Manufacturing is value adding business.