1. The Toyota Way - 14 Management Principles
The Toyota Way
14 Management Principles
Presented By :-
Subhajit Karmakar

2. The Toyota Way - 14 Management Principles
“Continuous improvement” and “Respect for people” are the two
pillar of Toyota
The five practices are:-
• Challenge: To build a long-term vision and meet challenges with
courage and creativity.
• Kaizen: To continuously improve our business operations, always
striving for innovation and evolution.
• Genchi Genbutsu: To always go to the source to find the facts and
make correct decisions; to build consensus and expeditiously achieve our
goals.
• Respect: To respect others and the environment, to build trust, and to
take responsibility.
• Teamwork: To stimulate personal and professional growth, maximize
individual and team performance.

3. The Toyota Way - 14 Management Principles
Principle 1
• Base your management decisions on a long-
term philosophy, even at the expense of
short-term financial goals.
1. Align the organization toward a
purpose greater than
“making money.”
2. Generate value for the customer,
society and the economy.
3. Be responsible. Accept
responsibility for your conduct
and maintain and improve the
skills that enable you to produce
added value.

4. The Toyota Way - 14 Management Principles
Principle 2
• Create a continuous process flow to bring
problems to the surface.
1.Redesign processes to achieve
continuous flow.
2.Create flow to move material
and information fast.
3.Link processes and people so
that problems surface right away.
4.Make flow obvious throughout
your organizational culture.

5. The Toyota Way - 14 Management Principles
Principle 3
• Use “pull” systems to avoid overproduction.
1.Provide downstream customers
in the process with what they want,
when they want it, and in the
amount that they want.
2. Pull vs Push
Material replenishment initiated by
consumption is the basis for
just-in-time.
Just-in Time - an organized
system of inventory buffers.

6. The Toyota Way - 14 Management Principles
Principle 4
• Level out the workload (heijunka). (Work like
the tortoise, not the hare.)
(Heijunka is principle of measured production rate)

7. The Toyota Way - 14 Management Principles
Principle 5
• Build a culture of stopping to fix problems, to
get quality right the first time.

8. The Toyota Way - 14 Management Principles
Principle 6
• Standardized tasks and processes are the
foundation for continuous improvement and
employee empowerment.

9. The Toyota Way - 14 Management Principles
Principle 7
• Use visual control so no problems are hidden.
Simple visuals to support
work flow
Determine deviation Eliminate
from standard Waste
Reduce report size

10. The Toyota Way - 14 Management Principles
Principle 8
• Use only reliable, thoroughly tested
technology that serves your people and
processes.
Support people not replace them
Analyze impact of new technologies on existing
processes
Conflict company philosophy or
principle?
Involve stake holders
Encourage to consider new
technologies while seeking for new
approach

11. The Toyota Way - 14 Management Principles
Principle 9

12. The Toyota Way - 14 Management Principles
Principle 10
• Develop exceptional people and teams who
follow your company’s philosophy.
• Create Strong stable culture.
• Train Exceptional Individual & Teams to work
with corporate philosophy.
• Use Cross Functional Team
• Make a Continuous effort towards Teamwork.
• Understand & Use Motivation theory.
• Maslow’s Need Hierarchy theory.
• Herzberg’s Job Enrichment theory .
• Taylor’s Scientific Management theory.
• Behavior Modification theory.
• Goal Setting theory

13. The Toyota Way - 14 Management Principles
Principle 11
• Respect your extended network of partners
and suppliers by challenging them and
helping them improve.
• Maintain Principle of partnership
• Acquire new suppliers.
• Enhance relations with existing suppliers.
• Teach “ The Toyota Way ”.

14. The Toyota Way - 14 Management Principles
Principle 12
• Go and see for yourself to thoroughly
understand the situation (genchi genbutsu).
• Genchi (actual location) genbutsu (actual material or
product)…also known as going to the gemba(real place).
• Confirm the fact yourself.
• Solve problem by going to root causes.
• The Geography of thought.
• Think & speak based on personally verified data.
“Common sense will tell you the answer, but collecting
data and then understanding the facts will tell you
whether your common sense was correct.”

15. The Toyota Way - 14 Management Principles
Principle 13
• Make decisions slowly by consensus,
thoroughly considering all options;
implement decisions rapidly (nemawashi).
Group
Consensus,
With Full
Group Authority
Consensus,
Seek Group Management
Input, then Approval
Decide and
Level of Involvement
Seek Individual Announce
Input, then
Decide and
Announce
Decide and • Decision Making is Highly Situational
Announce • Philosophy is to seek Maximum Involvement for Each
Situation
Time

16. The Toyota Way - 14 Management Principles
Principle 14
• Become a learning organization through
relentless reflection (hansei) and continuous
improvement (kaizen).

17. The Toyota Way - 14 Management Principles
Toyota Production System House
Best Quality – Lowest Cost – Shortest Lead Time –
Best Safety – High Morale
Through shortening the production flow by eliminating waste
Jidoka
Just-in-Time
People & Teamwork (Automation with
Right Part, Right
Amount, Right Time • Selection Human touch)
• Common Goals (In-station Quality)
• Ringi Decision Making Make Problems
• Take Time Planning
• Cross – Trained Visible
• Continuous Flow
• Pull System
• Quick Changeover Continuous Improvement (kaizen) • Automatic Stops
• Integrated Logistics • Person – Machine
Waste Reduction Separation
• Genchi Genbutsu(go & see) • Error Proofing
• 5 Why’s • In-station Quality
Control
• Eyes for Waste
• Problem Solving • Solve Root Cause of
Problems
Leveled Production (Heijunka)
Stable and Standardized Processes
Visual Management
Toyota Way Philosophy

18. The Toyota Way - 14 Management Principles