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Fasilitas - 03 | Assignment 1

SUMMARY OF ”TOYOTA WAY”

1. Toyota is known for its peers are high quality, high productivity, manufacturing speed,
and flexibility. The ways for Toyota to improve their business are; (1) eliminate wasted
time & resources 2) build quality into workplace systems 3) find low-cost yet reliable
alternatives to expensive tech 4) perfecting business processes 5) build a learning culture
for continuous improvement. Toyota also implements One-piece flow for their material
flow that flexibly changes according to customer demand & efficiency. Toyota has 2
commitments of TPS (Toyota’s Production System), that are nvest in its people &
promote continuous improvement/kaizen. Also, Toyota has 2 pillars of TPS; Just-in-time
(JIT: delivering the right items at the right time in the right amount) & jidoka (built-in
quality/never letting a defect pass & automation with a human touch). Just in time here
use the pull system, which the preceding process must always do what the subsequent
process says.
2. In first point, it already mentioned that Toyota always eliminate wasted time and
resources, we will breakdown anything that includes processes that do not add value,
those are : Overproduction (most fundamental waste), waiting, unnecessary
transport/conveyance, overprocessing/incorrect processing, excess inventory, unnecessary
movement, defects, unused creativity. Therefore, Toyota ensures that they use lean
manufacturing which works as well as facilitating one-piece flow with the least amount
of delay & waiting by creating cells where each consists of close arrangement of people,
machines, and workstations in a processing sequence.
3. In this book, it tells us that Toyota use 14 Principle in their organization, which wrapped
in 4P Model below here :

4. #Principle 1 : they always make a vision

and mission in the long term. Also, Toyota use
#Principle 8 : Use only reliable, thoroughly tested
technology that serves your people and processes.
So, they do not force the adoption of new
technology when employees still do not
understand its use or the resulting product does
not require the technology.
5. Toyota use these 3 principle too, those are : (1) #Principle 9 : Grow leaders who
thoroughly understand the work, live the philosophy, and teach it to others. (2) #Principle
10 : Develop exceptional people and teams who follow your company’s philosophy. (3)
#Principle 12 : Go and see for yourself to thoroughly understand the situation (Genchi
 Genbutsu). They also use one big room, called Obeya in Japanese, where they used to
develop a blueprint with the divisions involved.
6. Toyota uses #Principle 6 : The good process will lead us into the good output too. Also,
they use #Principle 13 : Make decisions slowly by consensus, thoroughly considering all
options; implement rapidly (Nemawashi).
7. In lean thinking, life will get tougher for a while at least until you learn how to
continuously improve your processes; One piece flow-) just in time -) pull systems --)
based on demand --) eliminating inventory--) zero inventory
8. Kanban means sign, signboard, doorplate, poster, billboard, card, but it is taken more
broadly as a signal of some kind. Kanban system for managing and ensuring the flow and
production of materials in a just-in-time production system. Kanban is used by the
production cell to make only that remaining number of packages needed.
9. Then in Chapter 10, tells us about Muda, Muri, Mura (3M); Muda / Non-value-added are
wasteful activities that lengthen lead times, cause extra movement to get parts or tools,
create excess inventory, or result in any type of waiting. Muri / Overburdening people or
equipment is pushing a machine or person beyond natural limits. Mura / Unevenness is
the result of an irregular production schedule or fluctuating production volumes due to
internal problems, like downtime or missing parts or defects.
10. A common Toyota quality tactic is to front-load projects of all kinds, to anticipate
problems as early as possible and put in place countermeasures before the problems even
occur. standardized work consists of three elements: time (time required to complete one
job at the pace of customer demand), the sequence of doing things or sequence of
processes, and how much inventory or stock on hand the individual worker needs to have
in order to accomplish that standardized work. Rather than enforcing rigid standards that
can make jobs routine and degrading, standardized work is the basis for empowering
workers and innovation in the workplace.
11. #Principle 11. Respect your network of partners and suppliers by challenging them and
helping them improve. They also never underestimate their supplier when they make
some mistakes, even Toyota intervenes to find solutions to the problems that occur.
Therefore, find a solid partner and develop together for the benefit of both parties in the
long term.
12. Then in chapter 18, we learn about Genchi genbutsu = going to the place to see the actual
situation for understanding. The Characteristics of leaders in genchi genbutsu = ‘getting
your hands dirty’ & learning by doing. Also, Principles that relate to genchi genbutsu are
(1) Think & speak based on verified and proven data and (2) Take full advantage of the
wisdom and experience of others to send/gather/discuss information.
13. Thinking through the fine details of strategy and operations is clearly central to the
culture that has helped Toyota become one of the world's most successful companies.
Toyota’s approach to problem solving & decision making -> careful attention to every
detail -> every stone is inspected under a microscope.