"This book will give you an understanding of what has made Toyota successful and some practical ideas that you can use to develop your own approach to business."--Gary Convis, Managing Office of Toyota
Fewer man-hours. Less inventory. The highest quality cars with the fewest defects of any competing manufacturer. In factories around the globe, Toyota consistently raises the bar for manufacturing, product development, and process excellence. The result is an amazing business success story: steadily taking market share from price-cutting competitors, earning far more profit than any other automaker, and winning the praise of business leaders worldwide.
The Toyota Way reveals the management principles behind Toyota's worldwide reputation for quality and reliability. Dr. Jeffrey Liker, a renowned authority on Toyota's Lean methods, explains how you can adopt these principles--known as the "Toyota Production System" or "Lean Production"--to improve the speed of your business processes, improve product and service quality, and cut costs, no matter what your industry.
Drawing on his extensive research on Toyota, Dr. Liker shares his insights into the foundational principles at work in the Toyota culture. He explains how the Toyota Production System evolved as a new paradigm of manufacturing excellence, transforming businesses across industries. You'll learn how Toyota fosters employee involvement at all levels, discover the difference between traditional process improvement and Toyota's Lean improvement, and learn why companies often think they are Lean--but aren't.
Dr. Jeffrey K. Liker is Professor of Industrial and Operations Engineering at the University of Michigan and principle of Optiprise, Inc. Dr. Liker has authored or co-authored over 75 articles and book chapters and nine books. He is author of the international best-seller, The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer, McGraw-Hill, 2004 which speaks to the underlying philosophy and principles that drive Toyota's quality and efficiency-obsessed culture. The companion (with David Meier) The Toyota Way Fieldbook, McGraw Hill, 2005 details how companies can learn from the Toyota Way principles. His book with Jim Morgan, The Toyota Product Development System, Productivity Press, 2006, is the first that details the product development side of Toyota. He is doing a series of books focused on each of the 4Ps. The first books are (with David Meier), Toyota Talent: Developing exceptional people the Toyota Way (May, 2007) and (with Michael Hoseus) Toyota Culture: The Heart and Soul of the Toyota Way (January, 2008). His articles and books have won eight Shingo Prizes for Research Excellence and The Toyota Way also won the 2005 Institute of Industrial Engineers Book of the Year Award and 2007 Sloan Industry Studies Book of the Year. He is a frequent keynote speaker and consultant. Recent clients include Hertz, Caterpillar, AMD, Android, Areva, Rio Tinto Mining, Tenneco Automotive, Jacksonville Naval Air Depot, US Airforce Material Command, Johnson Controls, Harley Davidson, Eaton, and Fujitsu Technical Services.
- Have a manual process first, that allows you to understand better where automation is needed - Treat colleagues as customers (provide output for them at the same specs as for the end customer) - Kaisen - improve processes by a tiny bit, until all waste is removed - Kaisen also encourages the delegation of process improvement (or proposal-generation) down from management to regular workers - Kaisen also states that to improve something, you have to standardize it first (for reliable replicability?) - Focus on quality rather than cost, this eventually leads to cost reduction too - Muda - waste 1. Overproduction 2. Waiting 3. Unnecessary transport of goods or parts 4. Overprocessing or incorrect processing 5. Excess inventory. This also masks problems, like suboptimal supply chains, because the excess buffer dampens it 6. Unnecessary movement of employees 7. Defects - repairs, reworks, refactoring post release 8. Unused employment creativity - Muri - overburden (people or equipment) - This leads to safety issues and defects - Mura - unevenness - Unbalanced load, at times you are in zombie mode, other times you have not much to do - Lack of balance means that you will have to keep supplies reserved to handle the worst case, whereas most of the time they will be unused (hence muda) - Better to be slow and steady like a turtle, than fast and jerky like a rabbit - Jidoka - stop the production line to fix issues and improve the process - Think about what gets halted - no need to stop everything -Every employee can pull the cord to do so, thus everyone is empowered and at the same time - responsible - Cost of fix in development is much smaller than in production - Autonomation - automation augmented with human intelligence - Lexus rx330 has a 170 item checklist - Institute a process improvement proposal mechanism, that employees can use to submit their ideas about improvements - Visualize state, so no problems are hidden. Use dashboards to reflect the processes, so bottlenecks and weak spots are easy to see. - Genshi genbutsu - go and see for yourself - Nemawashi - Make decisions slowly, by consensus; implement rapidly - Ask "why" 5 times - Hansei - reflection. Think about the situation. When a mistake is made - it is important to see how the employee reflects upon it and how they present the lessons they've drawn from it - Change the approach from "firefighting" to "process improvement"
Since reading this book every time I hear of Toyota having problems, a car recall or a design fault I smile wryly and wonder which of their principles they had forgotten.
That is unfair of me because the subtext of the book is that companies evolve and the Toyota story is about a company that moved from power looms to truck production to mass-produced cars responding to demand and aware of their business environment that they operated in. There is a little detail about how they prepare to launch in a new market by getting one of their employees to drive in a hire car around North -America - who marvels at the size of the drinks sold to drivers and notes the road conditions, before they set to designing a car for the North-American market - one that had many oversized cup holders.
This is a book about more than cars, the focus is on the cultural values of the company, in car production still inspired by the legacy of long time Toyota manager Taiichi Ohno, though his book Toyota Production System: Beyond large-scale production is much more interesting on the philosophy or spiritual side of the companies developments, this though is a good supplement on the history and nut and bolts.
The Toyota way should be everyone's way. Great book with greater insights on how to be successful in your business along with how to make a profitable business. The insights can be applied not only for the automobile or transport industries but also for the software companies as well. TPS and Lean manufacturing has been created and developed by Toyota and now are used by many companies across the world. The book explains why Toyota has become one of the most successful company in the world and why Ford came in to inspect the TPS - Toyota production system. The 5s methodology - sort, straighten, shine, standardise and sustain is a great learning from this book. Love the JIT and how they stop the production as soon as they find a fault or defect in the production system. Also explains on how to minimal waste and improve efficiency. Also this book will make you understand why Japanese are the best as well. They just don't do things. They ask why and and then do it and do it to perfection. Overall a great book to read to be a successful manager and to have a better success at any venture that you start. One thing that ponders me after reading this is why does Toyota recall some of the cars if they have followed the TPS and all the systems in place properly. What principle is at flaw here and that's why I have given 4 stars.
Most people may don't know, but Toyota is considered "the autistic-genius" by car manufacturers. They do everything differently, they stop producing lane when something is not ok, they don't produce X cars per hour, they have days when 0 cars are produced, just to be sure that every car going to the market doesn't have a defect they could fix.
This book summed up this method into 14 rules, that can be used in your house or work, but they may feel like you do something against yourself, probably against 'common sense' too.
If you watched "how its made" at least once, this book may blow your mind, and you will love it.
The Toyota Way continues to be on my annual reread or re-listen to list. The 14 principles are universal and are as relevant today as they were when this was written.
The Toyota Way is one of those rare books that every time you read it, you learn something new, and going out in experimenting and trying to apply that new learning is exciting and rewarding.
Dr. Liker is careful to warn that although the 14 principles are a good blueprint to creating a lean organization, anyone who sets out and copies what Toyota has done, will fail. The learning is where companies grow.
The audiobook is extremely well narrated and provides small snippets of each of the 14 principles. For someone who spends almost 3 hours a day in his car, this book can we listen to in a day and a half.
As much as I enjoy the brevity of the audiobook, I really would love an unabridged audio version of the Toyota Way. Having read the book a couple times I know that there is a lot of substance that is not covered in the abridged audio.
This book reveals several procedures used in the manufacturing company. 4P Model (Problem Solving, People and Partners, Process and Philosophy), 5S Methodology (Sort, Straighten, Shine, Standardize and Sustain) and PDCA (Plan-Do-Check-Act or Deming Cycle). If anyone is willing to start a new manufacturing company they can use this book as a blue print. Helps us to learn some of the techniques used in Japan like Muri, Mura, Muda, Kanban, Heijunka, Jidoka and ohno and create eagerness to learn Japanese.
Jeffrey Liker offers some very good insight into the stark differences that exist between management styles/business models, particularly in the Eastern and Western cultures.
It was a struggle for me to read between the case studies and, sometimes, the author seemed too preachy about the principles of the Toyota way. The case studies themselves were very interesting and add a lot of value to the content of the book.
I would recommend this book to anyone looking to optimize any type of organization. The further the organization is from manufacturing the more work required for the reader to apply, but there is an immense amount of wisdom there.
The application is universal because of how much Toyota focuses their attention on the intersection of the organizational culture and the operational systems.
I read this book for my MBA program. While it's a good reference for anyone who wants to become familiar with lean manufacturing, it is a horrible, dry, boring read. I'll keep it as a reference but will dread having to ever open it again!
Toyota Industries Corporation was a Japanese maker of automatic looms (device used to weave cloth) when Kiichiro (eldest son of the founder) established the Toyota Motor Corporation. Toyota had was capital poor, resource poor, and the Japanese car market was small. Kiichiro devised a strategy of Operational Excellence, along the lines of Sam Walton's strategy for Wall Mart. Eventually, the strategy of operational excellence (elimination of waste) allowed resource poor Toyota to dominate it's resource rich western rivals. Ironically, Kiichiro was inspired by Henry Ford's book, which many Ford Motor Company managers and executives have not read.
Kiichiro's critical insight is similar to Eliyahu M. Goldratt's Theory of Constraints with it's focus on optimisation, especially as related to the factory floor. Typically factories want to keep all of their capital equipment busy, so that they can make good use of their investment. Each machine creates small piles of partially finished goods.
Kiichiro realised that more important than the capital and labor (opportunity cost) tied up in this work in process, the bigger problem is that all of these bits of intermediate inventory HIDE PROBLEMS. As if you've poured lots of grease into an engine. Even if the parts don't fit together and operate precisely, the engine will still work because it's heavily lubricated. Like the early days of Sam Walton, Kiichiro was capital poor, he couldn't compete using the same strategy as his advisories. By draining all of the lubrication (intermediate stages of inventory) out of the system, problems would constantly come to the surface. Each time a problem was located, it was corrected. The result was a machine that was built to constantly improve.
Kiichiro's strategy can be applied to more than just the assembly line. The crux of the issue is as simple as Obvious Adams - focus on your customer and see the world from their perspective. Fortunately, Kiichiro's strategy is more rigorous, offering specific tactics and tools.
Toyota has developed a set of concepts that dominate much of the manufacturing world. The core of the Toyota way is the focus on elimination of WASTE. Waste is typically represented as inventory. The entire product/service production/development system must be focused on the end consumer of the product, and from that consumer work backward to what must be produced. The result is Lean Manufacturing, or ultimately the Lean Enterprise. It's also the foundation for The Lean Startup and Lean Government.
Core principles of the Toyota Way (Lean) are: * 現地現物 Genchi Benbutsu. Go and See. Managers must go to the source of the problem and see it with their own eyes, not trust the verbal or written reports of their subordinates. * 改善 Kaizen. Improvement. No matter how good the process is, it can always be made more perfect. Build a system where problems easily come to the surface, and fix them quickly. * 看板 Kanban. Signboard. Kanbans put a cap on the maximum amount of each type of inventory at a given time. Because kanbans represent inventory, and inventory is waste, a lean enterprise starts with Kanban's but eventually works to minimize and eliminate them. * 無駄. Without Waste. Remove all Transportation, Inventory, Motion, Waiting, Over Processing, Over Production and Defects from your production process. Also, not taking advantage of your employees latent skill is also a form of waste. * 平準化. Heijunka. Production levelling. Peaks and troughs in production create waste. Sometimes you're idle. Sometimes everybody is working overtime. Enlist the sales and marketing team to help equalise demand. From sourcing of materials to sales of finished goods, ideally you want the process to work like a metronome. Constant. * 行灯. Andon. Something like a Stop Sign that allows any employee to stop the system anytime that a production defect is located. It is always cheaper to fix a defect at the source than to allow the defect to progress through production and find it during QA. The power to stop the system also shows trust in employees and empowers them, helping them to be emotionally committed to the process.
That said, I think that any sort of "miracle elixir" that points out the "one true way" must be eyed skeptically. Toyota's success just as much the result of Japanese economic policy and luck as it is the "inevitable result" of Toyota's philosophy and discipline. If you're going to implement "The Toyota Way" in your own enterprise, I recommend that you read The Black Swan in parallel.
I think that this methodology is not suitable to every manufacturing company, but only to companies where the entire management and even a large percentage of the employees are really willing to strive for perfectionism over the long term. One Amazon reviewer from North Carolina recently wrote that: 'If you want your company to crash and burn then this is the book for you. Within a year of our company implement Jeffrey Liker's "Toyota Way" our company started losing customers and money. Now hundreds of people are out of work - all thanks to the "Toyota Way".'
This book provides a really solid overview of the principles used by Toyota which can be applied to any business. Liker breaks down the fundamentals in an easy to understand way and follows with cases from Toyota and other organizations looking to apply similar lean techniques.
This book took me on a much longer journey than expected. I found it to be so packed with information that it took a while to wade through. Coming from a church leadership background instead of a manufacturing background meant that I did not have some of the prerequisites that the book's intended audience might have.
For me personally, Part 1 (The World-Class Power of the Toyota Way) was an interesting look into the changing world of manufacturing and lean production. It has helped me appreciate where some of my congregants are coming from in the workday lives, but it did not strike me as deeply as I had hoped from a leadership standpoint. That came in Part 2.
I'd recommend reading Part 2 in its entirety after skimming Part 1. Part 2 (The Business Principles of The Toyota Way) offered immediately applicable leadership paradigms. Like many leadership guides, these paradigms are not necessarily new, but seeing them in action is important. These are what I found most helpful:
1. Develop leadership from the inside with people who know your organization. 2. Focus on long-term goals at the expense of short-term. 3. Respect and challenge your extended network to benefit them and your organization.
Heijunka- Level Out the Workload Genchi Genbutsu: Go and See for Yourself Hansei: Relentless Reflection Kaizen: Continuous Improvement
So, why would a pastor read this? Many-- all actually-- of Toyota's leadership principles put people first. In other word's they love their neighbors as themselves. I'm not suggesting that Toyota is a Christian or even Biblical company, but it is refreshing to me to see a Global Corporation that has not sacrificed the health of its workers or community for shareholders.
Toyota takes a long-term approach and values face-to-face relationships. Its managers do not follow a typical executive "top-down" approach. They have grease on their hands, acknowledge mistakes (asking 5-whys), and know their company inside and out.
Many pastors would do well to consider the long term goals of the Kingdom and the Church ahead of their own ambition. They would find insight by putting relationships ahead of tasks, and they would empower their congregations by willing to acknowledge mistakes while suggesting steps for correction. Whether or not they would further their ministry by driving a Toyota is open for debate.
In factories around the world, Toyota consistently makes the highest-quality cars with the fewest defects of any competing manufacturer, while using fewer man-hours, less on-hand inventory, and half the floor space of its competitors. The Toyota Way is the first book for a general audience that explains the management principles and business philosophy behind Toyota's worldwide reputation for quality and reliability.
The fourteen management principles of the Toyota Way create the ideal environment for implementing Lean techniques and tools. Dr. Liker explains each key principle with detailed, examples from Toyota and other Lean companies on how to:
foster an atmosphere of continuous improvement and learning, create continuous process "flow" to unearth problems, satisfy customers (and eliminate waste at the same time), grow your leaders rather than purchase them, get quality right the first time, grow together with your suppliers and partners for mutual benefit.
Dr. Liker shows the Toyota Way in action, then outlines how to apply the Toyota Way in your organisation, with examples of how other companies have rebuilt their culture to create a Lean, learning enterprise. The Toyota Way is an inspiring guide to taking the steps necessary to emulate Toyota's remarkable success.
Liker focuses on the management principles that have guided this post-WW II success story. Not very critical, but well-organized and highly useful to anyone who wants to study Toyota's path. I found the parts dealing with how Toyota emphasizes that it is a "learning organization" particularly insightful, highlighting how experience is integrated by taking necessary corrective actions and distributing broadly the knowledge of each experience.
Жаль, что в своё время недооценил данную бизнес книгу, что отложил в её в длинный ящик. Я считал, что книга в основном о том как добиться высокой эффективности в производстве. Но я и не предполагал, что она охватывает практически все принципы ведения бизнеса и что они столь высоких стандартов.
Это та книга без которой в современном мире трудно построить поистине великий бизнес. И ещё она относится к тем работам к которые просто обязательно нужно время от времени возвращаться и перечитывать её снова и снова.
Mimo kilku anachroniczności (Internet jako nowość w zarządzaniu) to same zasady trzymają się mocno. W gruncie rzeczy ta książka wkurza, bo jedną z podstawowych zasad jest eliminacja "waste", wszystkiego co nie jest potrzebne do tworzenia wartości. Odpowiednio długie słuchanie (korzystałem z audiobooka) powoduje, że widzi się ten waste wszędzie: nie tylko w swojej pracy, ale także pracy innych. Jest jedna zasada, która rezonuje ze mną bardzo mocno: "metoda dojścia do decyzji jest równie ważna jak sama decyzja".
Uwaga: audiobook jest skrócony, warto dodatkowo sięgnąć po wersję wizualną
This book was my formal introduction to Lean and the Toyota Production System (TPS). I have utilized some Lean tools before when I was a business analyst (although I did not know the tools were Lean at the time!) but this book provides tremendous depth past my experience. I enjoyed the learning all of the principles at Toyota, especially the emphasis on people. I highly recommend this book to anybody interested in learning about this topic.
The Toyota Way by Jeffrey K Liker gives a common sense approach to Business Process Improvements. It's a good start for everybody interested in lean management and lean production. This book goes into depth on several concepts that make the Toyota Way different from most western companies. It will definitely change the way you see business and management. -Yulya Roesdy-
In a world of mass production that is continuously and rapidly changing, Toyota managed to create a lean production system based on family values, excellence, continuous improvement, leadership and little waste. The 14 principles are explained in detail, with examples and clarification. Great book, great lessons to be learned and applied by all.
Reading this book because one of my hospital clients wishes to combine their approach to engagement and Lean/Six Sigma. I've purchased 4 books on this topic and this might be the best one on this dual approach. You can't maximize operational efficiency at the expense of solid people practices.
This book is an overview of lean production a concept foreign to me, a stay at home mother.
“This ‘Toyota Way’ mindset could be applied to my home life”, was the recurring thought I had reading the text. I was then struck with the epiphany Marie Kondo must have taken a page out of the Toyota Production System to produce the domestic version of this book, “The Life Changing Magic of Tidying Up”!
The greatest take away from this book is the three M’s: Muda, Mura, and Muri.
From The Lean Way Blog by Doanh Do:
“ Muda (無駄) Muda means wastefulness, uselessness and futility, which is contradicting value-addition. Value-added work is a process that adds value to the product or service that the customer is willing to pay for. There are two types of Muda, Type 1 and Type 2. Muda Type 1 includes non-value-added activities in the processes that are necessary for the end customer. For example, inspection and safety testing does not directly add value to the final product; however, they are necessary activities to ensure a safe product for customers. Muda Type 2 includes non-value added activities in the processes, but these activities are unnecessary for the customer. As a result, Muda Type 2 should be eliminated.
There are seven categories of waste under Muda Type 2 that follow the abbreviation TIMWOOD. The seven wastes are (1) Transport i.e. excess movement of product, (2) Inventory i.e. stocks of goods and raw materials, (3) Motion i.e. excess movement of machine or people, (4) Waiting, (5) Overproduction, (6) Over-processing, and (7) Defects.
Mura (斑) Mura means unevenness, non-uniformity, and irregularity. Mura is the reason for the existence of any of the seven wastes. In other words, Mura drives and leads to Muda. For example, in a manufacturing line, products need to pass through several workstations during the assembly process. When the capacity of one station is greater than the other stations, you will see an accumulation of waste in the form of overproduction, waiting, etc. The goal of a Lean production system is to level out the workload so that there is no unevenness or waste accumulation.
Mura can be avoided through the Just-In-Time ‘Kanban’ systems and other pull-based strategies that limits overproduction and excess inventory. The key concept of a Just-In-Time system is delivering and producing the right part, at the right amount, and at the right time.
Muri means overburden, beyond one’s power, excessiveness, impossible or unreasonableness. Muri can result from Mura and in some cases be caused by excessive removal of Muda (waste) from the process. Muri also exists when machines or operators are utilized for more than 100% capability to complete a task or in an unsustainable way. Muri over a period of time can result in employee absenteeism, illness, and breakdowns of machines. Standardize work can help avoid Muri by designing the work processes to evenly distribute the workload and not overburden any particular employee or equipment.
I have finished this book with further appreciation for the Toyota family, Japanese culture, and a sparked interest in the Lean Manufacturing Process.
Inspiring and practical. I would recommend this book to all factory stakeholders, or anyone really, who's looking to be inspired and lead a more "effective life".
The author, Jeffrey Liker, spent 20 years studying "The Toyota Way" to help the struggling U.S. automobile industry, back in the late 20th century. In this book, Liker went back to the root of it all... How Sakichi Toyoda -- an ordinary farm boy who grew up learning carpentry from his father -- started The Toyoda Automatic Loom Works and later inspired his son to pass down this innovative spirit to create Toyota -- one of the largest automakers in the World. It also discussed, among many things: How Toyota not only survived but grew, during the trying War times, when they would've been forgiven if they failed; How they eventually surpassed U.S and European automobile industry against all odds (in terms of safety rating, sales, effectiveness, etc); How they break through limits when inventing Lexus and Prius; and How they transformed and influenced its partners and even sometimes, competitors, to grow with them.
"The Toyota Way" -- the build-in philosophy of the company inspired by its founders, and later cemented by Toyota's engineering genius Taiichi Ohno, is the secret sauce behind Toyota's success. In this book, Liker tried to describe the underlying philosophy of The Toyota Way and provided a list of principles and steps that we can try to emulate if we want to adopt "a similar culture" within our own workplaces/ lives. It basically involves building a "lean" company that reduces waste, embraces challenge, continuously innovates and problem-solves. Also, it's about building a learning enterprise that invests in people and believes in the value of long-term investment despite short-term loss.
Great change can be started by the one person but it can only be sustained when everyone buys into the idea. The Toyota Way is embraced by all Toyota staffs (and even suppliers) like a religion. This level of dedication and commitment is what makes all Toyota's achievements possible.
I am deeply inspired and impressed. I also have a newfound respect and trust in Toyota's products. I'm now officially, a hard core fan of Toyota!
In short, a must read book for any employee and employer on this god green earth.
I'm always interested to the myth behind toyota. As such, I was instantly hooked the moment I laid my eyes on the book's cover (much to the chagrin of those who espouses never to judge a book by its cover). By the end of my reading through this book, the myth has finally been exposed. The simplicity of management principle to which Toyota built their empire is perhaps the most astounding of all. I had that moment, multiple times when I read the book and I thought "why I haven't thought of that before" - in an exasperated gasp.
To those who were skeptical whether or not you should read this book. My advice to you is to not judge the book by it's cover. Admittedly, the book title "14 management principle" do come of as a trite.
Some would even imagine the book content to be about a boring expositionary tales of how there is hidden esotericism in the act of a white collar fat cat, looking through various pie chart and graph, sitting behind a glass cubicle, marching order to the greasy simpleton foreman, churning large diesel burning juggernaut stamping machine, machining parts to be shipped to the customer.
This book is a great read for anyone interested in people management and workplace culture.
Although it's an older book, the concepts still hold true today. Liker lays out the 14 principles that underpin Toyota's management philosophy and have made the company one of the most successful in the world.
Some of the key principles include Continuous Improvement, Respect for People, and Standardized Work.
Liker emphasizes the importance of long-term thinking, building a culture of problem-solving, and developing leaders who can coach and mentor their teams.
Chapters like 'Grow leaders who thoroughly understand work' (principle 9), 'Develop exceptional people and teams' (principle 10), and 'Focus on the improvement and energy of your people' (principle 13) delve deeply into the importance of people and culture.
Each chapter is a principle and chapter names are themselves self-explanatory.
What sets this book apart is Liker's storytelling ability. He weaves in personal anecdotes and historical context that bring the principles to life and keep the reader engaged throughout.
Whether you're a business leader looking to improve your organization's performance or just someone who likes to read a good story, The Toyota Way is a great read.