This information is from a book that my teacher of Business management & enterprise development gave to me this year. I hope that you will find this useful to understand the TPS and the toyota way.
Section I: Long-Term Philosophy
Principle 1. Base your management decisions on a long-term philosophy,
even at the expense of short-term financial goals.
■ Have a philosophical sense of purpose that supersedes any short-term
decision making. Work, grow, and align the whole organization toward a
common purpose that is bigger than making money. Understand your
place in the history of the company and work to bring the company to
the next level. Your philosophical mission is the foundation for all the
other principles.
■ Generate value for the customer, society, and the economy—it is your
starting point. Evaluate every function in the company in terms of its
ability to achieve this.
■ Be responsible. Strive to decide your own fate. Act with self-reliance and
trust in your own abilities. Accept responsibility for your conduct and
maintain and improve the skills that enable you to produce added value.
Section II: The Right Process Will Produce the Right Results
Principle 2. Create a continuous process flow to bring problems to the surface.
■ Redesign work processes to achieve high value-added, continuous flow.
Strive to cut back to zero the amount of time that any work project is sitting
idle or waiting for someone to work on it.
■ Create flow to move material and information fast as well as to link
processes and people together so that problems surface right away.
■ Make flow evident throughout your organizational culture. It is the key
to a true continuous improvement process and to developing people.
Principle 3. Use “pull” systems to avoid overproduction.
■ Provide your downline customers in the production process with what
they want, when they want it, and in the amount they want. Material
replenishment initiated by consumption is the basic principle of just-intime.
■ Minimize your work in process and warehousing of inventory by stocking
small amounts of each product and frequently restocking based on
what the customer actually takes away.
■ Be responsive to the day-by-day shifts in customer demand rather than
relying on computer schedules and systems to track wasteful inventory.
Principle 4. Level out the workload (heijunka). (Work like the tortoise, not
the hare.)
■ Eliminating waste is just one-third of the equation for making lean successful.
Eliminating overburden to people and equipment and eliminating
unevenness in the production schedule are just as important—yet
generally not understood at companies attempting to implement lean
principles.
■ Work to level out the workload of all manufacturing and service processes
as an alternative to the stop/start approach of working on projects in
batches that is typical at most companies.
Principle 5. Build a culture of stopping to fix problems, to get quality right
the first time.
■ Quality for the customer drives your value proposition.
■ Use all the modern quality assurance methods available.
■ Build into your equipment the capability of detecting problems and
stopping itself. Develop a visual system to alert team or project leaders
that a machine or process needs assistance. Jidoka (machines with human
intelligence) is the foundation for “building in” quality.
■ Build into your organization support systems to quickly solve problems
and put in place countermeasures.
■ Build into your culture the philosophy of stopping or slowing down to
get quality right the first time to enhance productivity in the long run.
Principle 6. Standardized tasks and processes are the foundation for continuous
improvement and employee empowerment.
■ Use stable, repeatable methods everywhere to maintain the predictability,
regular timing, and regular output of your processes. It is the foundation
for flow and pull.
■ Capture the accumulated learning about a process up to a point in time
by standardizing today’s best practices. Allow creative and individual
expression to improve upon the standard; then incorporate it into the
new standard so that when a person moves on you can hand off the
learning to the next person.
Principle 7. Use visual control so no problems are hidden.
■ Use simple visual indicators to help people determine immediately
whether they are in a standard condition or deviating from it.
■ Avoid using a computer screen when it moves the worker’s focus away
from the workplace.
■ Design simple visual systems at the place where the work is done, to support
flow and pull.
■ Reduce your reports to one piece of paper whenever possible, even for
your most important financial decisions.
Principle 8. Use only reliable, thoroughly tested technology that serves your
people and processes.
■ Use technology to support people, not to replace people. Often it is best
to work out a process manually before adding technology to support the
process.
■ New technology is often unreliable and difficult to standardize and
therefore endangers “flow.” A proven process that works generally takes
precedence over new and untested technology.
■ Conduct actual tests before adopting new technology in business
processes, manufacturing systems, or products.
■ Reject or modify technologies that conflict with your culture or that
might disrupt stability, reliability, and predictability.
■ Nevertheless, encourage your people to consider new technologies when
looking into new approaches to work. Quickly implement a thoroughly
considered technology if it has been proven in trials and it can improve
flow in your processes.
Section III: Add Value to the Organization by Developing
Your People
Principle 9. Grow leaders who thoroughly understand the work, live the
philosophy, and teach it to others.
■ Grow leaders from within, rather than buying them from outside the
organization.
■ Do not view the leader’s job as simply accomplishing tasks and having
good people skills. Leaders must be role models of the company’s philosophy
and way of doing business.
■ A good leader must understand the daily work in great detail so he or she
can be the best teacher of your company’s philosophy.
Principle 10. Develop exceptional people and teams who follow your company’s
philosophy.
■ Create a strong, stable culture in which company values and beliefs are
widely shared and lived out over a period of many years.
■ Train exceptional individuals and teams to work within the corporate
philosophy to achieve exceptional results. Work very hard to reinforce
the culture continually.
■ Use cross-functional teams to improve quality and productivity and
enhance flow by solving difficult technical problems. Empowerment
occurs when people use the company’s tools to improve the company.
■ Make an ongoing effort to teach individuals how to work together as
teams toward common goals. Teamwork is something that has to be
learned.
Principle 11. Respect your extended network of partners and suppliers by
challenging them and helping them improve.
■ Have respect for your partners and suppliers and treat them as an extension
of your business.
■ Challenge your outside business partners to grow and develop. It shows
that you value them. Set challenging targets and assist your partners in
achieving them.
Section IV: Continuously Solving Root Problems Drives
Organizational Learning
Principle 12. Go and see for yourself to thoroughly understand the situation
(genchi genbutsu).
■ Solve problems and improve processes by going to the source and personally
observing and verifying data rather than theorizing on the basis
of what other people or the computer screen tell you.
■ Think and speak based on personally verified data.
■ Even high-level managers and executives should go and see things for
themselves, so they will have more than a superficial understanding of
the situation.
Principle 13. Make decisions slowly by consensus, thoroughly considering
all options; implement decisions rapidly (nemawashi).
■ Do not pick a single direction and go down that one path until you have
thoroughly considered alternatives. When you have picked, move
quickly and continuosly down the path.
■ Nemawashi is the process of discussing problems and potential solutions
with all of those affected, to collect their ideas and get agreement on a
path forward. This consensus process, though time-consuming, helps
broaden the search for solutions, and once a decision is made, the stage
is set for rapid implementation.
Principle 14. Become a learning organization through relentless reflection
(hansei) and continuous improvement (kaizen).
■ Once you have established a stable process, use continuous improvement
tools to determine the root cause of inefficiencies and apply effective
countermeasures.
■ Design processes that require almost no inventory. This will make
wasted time and resources visible for all to see. Once waste is exposed,
have employees use a continuous improvement process (kaizen) to
eliminate it.
■ Protect the organizational knowledge base by developing stable personnel,
slow promotion, and very careful succession systems.
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