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Founded on: 28 August 1937

Founder :Kiichiro Toyoda
 Toyota Motor Corporation
•
Japanese multinational automotive manufacturer
headquartered in TOYOTA CITY Aichi, Japan.
•
In 2017, Toyota's corporate structure consisted of
364,445 employees worldwide
•
The sixth largest company in the world by revenue in
2018
•
As of 2017, Toyota is the world's second-largest
automotive manufacturer.
•
Toyota was the world's first automobile
manufacturer to produce more than 10 million
vehicles per year which it has done since 2012, when
it also reported the production of its 200-millionth
vehicle
 Toyota Way by Jeffrey Liker (2004)
•
14 management principles that make Toyota
the world’s greatest manufacturer.
•
One of these 14 principles is “Become a
Learning Organization.”
•
Many Organisation have tried to become
learning organizations, but, according to Liker,
no one has succeeded like Toyota.
•
Toyota’s learning organization has three key
elements according to Liker
 TOYOTA WAY
1. Identify root causes and develop counter
measures. Toyota identifies root causes
primarily using a very simple method called
the “five why’s.” This simply entails asking the
question “why?” as many times as possible to
determine the root cause of a problem:
 Five why’s
Corresponding Level of
Countermeasure
•
Level
There of
is aProblem
puddle of oil on the
shop floor.
•
Clean up the oil.
•
Because the machine is leaking
•
Fix the machine.
oil. •
Replace the gasket.
•
Because the gasket has •
Change gasket
deteriorated. specifications.
•
Because we bought gaskets •
Change purchasing
made of inferior material. policies.
•
Because we got a good deal •
Change the evaluation
(price) on those gaskets. policy for purchasing
•
Because the purchasing agent agents.
gets evaluated on short-term
cost savings.
 Hansei-kai (reflection meeting)
“no problem is a problem”
2. Use Hansei: Responsibility, self-reflection,
and organizational learning. This concept is
about reflecting on mistakes/weaknesses and
devising ways to improve.
•
Hanseiis a concept that Toyota uses as a
practical improvement tool like kaizen
(“change for better” a Japanese business
philosophy of continuous improvement of
working practices, personal efficiency, etc.).
3. Utilize policy deployment (Hoshin kanri).
•
This is Toyota’s process of cascading objectives from the top
of the company down to the work group level.
•
Aggressive goals start at the top level and each level develops
objectives to support these goals.
•
Many systems like this are being used at companies across
the United States, but often they are failures because the
objectives rarely support important company goals; they
usually are put in place to ensure that an individual gets
his/her incentive. At Toyota, objectives are always
measurable and concrete, and they always support executive-
level/company goals. The process as it permeates the
organization follows the simple PDCA (Plan-Do-Check-Act)
process. This ensures that the success is being measured and
monitored on a regular basis. 
 DO IT YOURSELF.........
1. Search for any two Indian Organisation
which has adopted the principles of learning
organisation and how?
2. How it has been benefitted by its Learning
Organisation approach?