Toyota Way Jeffrey Liker Environment - continuous improvement Respect for people Employment security Active participate of employees

s to improve their jobs Motive a large group of people towards a common goal, removing obstacles Laan manufacturing Defining customer value Making product flow through value adding processes Striving for excellence Look at timeline from the moment the customer gives us the order to meeting the demand and removing non value adding steps Production rate should be such that it meets customer demand - not to get the most out of workers Operational efficiency + continuous improvement & innovation Using operational excellence 75% less recall than Ford and 92% less compared to Chrysler Good standing with customers, and survey ranking in Consumer Digest Understanding people and human motivation Cultivate leadership TPS Toyota Production System (way, model) 14 principles introduced in this book Lean Enterprise 5 step process defining customer value, defining value stream, making it flow, pulling from the customer back & striving for excellence Leveling out the schedule Leveling out the production Produce at customers demand Use manual over automatic when possible even when cost justification says otherwise People are the most efficient resource Work out the manual process efficiently to find out where automation is required Getting your hand dirty Mistake proofing Automation with a human touch Supermarket replaces products JIT pull system Gas signal in car we fill it only when gas is required not when gas tank is full Kanban pull system gas gauge JIT short lead time, meet customers specific needs Meeting and exceeding the customers demand is the task of everyone at the company Internal and external customers Each step to be treated as a customer

Pull system the preceding process must do what the subsequent process says for JIT to work Eliminate all steps that add waste and cost to the process Proposal making is done by the workers Everyone in the supply chain must be practicing TPS Eliminate waste Overproduction Waiting time on hand, stock out, equipment downtime, bottleneck Unnecessary transport - carrying WIT Over processing unnecessary motion, wrong tools Excessive Inventory damaged goods, storage cost, hides problems Unnecessary movement workers on site, walking Defects-correction, rework, scrap, inspection, production Unused employee skills skills, learning opportunity, talents by not listening to them

Traditional look at localized efficiency One piece flow applies it to all areas design, order taking, production etc. Encourage to improve people on the process they work on Management decision on long term philosophy even at the expense of short term financial goals Every person should feel a greater sense of mission than getting a paycheck Total Budget control system monthly data is used to watch Company is like an organism nurturing itself, protecting and growing its offspring to continue staying strong Generate value to the customer, society and economy Use self-responsibility and reliance to decide your own faith Lets do it our self Lexus luxury brand was created from scratch instead of buying BMW model Toyota Mission statement Contribute to economy growth it resides in Contribute to Team members Contribute to Overall growth of company Hence reason to make excellent product, create lasting customer satisfaction Consistency of purpose slow and steady growth per year Principle2: Create continuous process flow to bring problems to the surface