Toyota Kaizen Methods Free Download

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The Toyota Way is a set of principles and behaviors that underlie the Toyota Motor Corporation's managerial approach and production system. Toyota first summed up its philosophy, values and manufacturing ideals in 2001, calling it 'The Toyota Way 2001'. It consists of principles in two key areas: continuous improvement, and respect for people.^[1]^[2]^[3]

Toyota Kaizen Methods Free Download Free
Toyota Kaizen Process
Toyota Kaizen Methods Free Download 2017
Toyota Way Kaizen

2The 14 Principles
3Research findings

Overview of the principles[edit]

Jun 29, 2012 'Kaizen', one of the Toyota Way core values, means 'continuous improvement' in Japanese. As no process can ever be declared perfect, there is always room for improvement. To secure the quality. Abstract — The Kaizen management originated in the best Japanese management practices and is dedicated to the improvement of productivity, efficiency, quality and, in general, of business excellence. The KAIZEN methods are internationally acknowledged as methods of continuous improvement, through small steps, of the economical results of. The Toyota Way is a set of principles and behaviors that underlie the Toyota Motor Corporation's managerial approach and production system. Toyota first summed up its philosophy, values and manufacturing ideals in 2001, calling it 'The Toyota Way 2001'. It consists of principles in two key areas: continuous improvement, and respect for people.

The Toyota Way has been called 'a system designed to provide the tools for people to continually improve their work'^[4] The 14 principles of The Toyota Way are organized in four sections:

Long-Term Philosophy
The Right Process Will Produce the Right Results
Add Value to the Organization by Developing Your People
Continuously Solving Root Problems Drives Organizational Learning

The two focal points of the principles are continuous improvement and respect for people. The principles for a continuous improvement include establishing a long-term vision, working on challenges, continual innovation, and going to the source of the issue or problem. The principles relating to respect for people include ways of building respect and teamwork.

The 14 Principles[edit]

The system can be summarized in 14 principles.^[5] The principles are set out and briefly described below:

Apr 10, 2017 Here are some methods of TOYOTA KAIZEN methods, through which Toyota continuously improves Bussiness. Skip trial 1 month free. Find out why Close. Toyota KAIZEN Bussiness Methods 2017 David James.
The Six Steps of Kaizen articulates the six improvement steps that are practiced by Toyota during the past decades. It focuses on the skills, methods and analysis techniques. Please note that this process is not about running a western-style Kaizen event, selecting areas for Kaizen or detailing best practices for running such workshops.

Section I — Long-Term Philosophy[edit]

Principle 1

Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.

People need purpose to find motivation and establish goals.

Section II — The Right Process Will Produce the Right Results[edit]

Principle 2

Create a continuous process flow to bring problems to the surface.

Work processes are redesigned to eliminate waste (muda) through the process of continuous improvement — kaizen. The seven types of muda are:

Overproduction
Waiting (time on hand)
Unnecessary transport or conveyance
Overprocessing or incorrect processing
Excess inventory
Motion
Defects

Principle 3

Use 'pull' systems to avoid overproduction.

A method where a process signals its predecessor that more material is needed. The pull system produces only the required material after the subsequent operation signals a need for it. This process is necessary to reduce overproduction.

Principle 4

Level out the workload (heijunka). (Work like the tortoise, not the hare).

This helps achieve the goal of minimizing waste (muda), not overburdening people or the equipment (muri), and not creating uneven production levels (mura).

Principle 5

Build a culture of stopping to fix problems, to get quality right the first time.

Quality takes precedence (Jidoka). Any employee in the Toyota Production System has the authority to stop the process to signal a quality issue.

Principle 6

Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.

Although Toyota has a bureaucratic system, the way that it is implemented allows for continuous improvement (kaizen) from the people affected by that system. It empowers the employee to aid in the growth and improvement of the company.

Principle 7

Use visual control so no problems are hidden.

Included in this principle is the 5S Program - steps that are used to make all work spaces efficient and productive, help people share work stations, reduce time looking for needed tools and improve the work environment.

Sort: Sort out unneeded items
Straighten: Have a place for everything
Shine: Keep the area clean
Standardize: Create rules and standard operating procedures
Sustain: Maintain the system and continue to improve it

Principle 8

Use only reliable, thoroughly tested technology that serves your people and processes.

Technology is pulled by manufacturing, not pushed to manufacturing.

Section III — Add Value to the Organization by Developing Your People[edit]

Principle 9

Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.

Without constant attention, the principles will fade. The principles have to be ingrained, it must be the way one thinks. Employees must be educated and trained: they have to maintain a learning organization.

Principle 10

Develop exceptional people and teams who follow your company's philosophy.

Teams should consist of 4-5 people and numerous management tiers. Success is based on the team, not the individual.

Principle 11

Respect your extended network of partners and suppliers by challenging them and helping them improve.

Toyota treats suppliers much like they treat their employees, challenging them to do better and helping them to achieve it. Toyota provides cross functional teams to help suppliers discover and fix problems so that they can become a stronger, better supplier.

Section IV — Continuously Solving Root Problems Drives Organizational Learning[edit]

Principle 12

Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu).

Toyota managers are expected to 'go-and-see' operations. Without experiencing the situation firsthand, managers will not have an understanding of how it can be improved. Furthermore, managers use Tadashi Yamashima's (President, Toyota Technical Center (TTC)) ten management principles as a guideline:

Always keep the final target in mind.
Clearly assign tasks to yourself and others.
Think and speak on verified, proven information and data.
Take full advantage of the wisdom and experiences of others to send, gather or discuss information.
Share information with others in a timely fashion.
Always report, inform and consult in a timely manner.
Analyze and understand shortcomings in your capabilities in a measurable way.
Relentlessly strive to conduct kaizen activities.
Think 'outside the box,' or beyond common sense and standard rules.
Always be mindful of protecting your safety and health.

Principle 13

Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi).

The following are decision parameters:

Find what is really going on (go-and-see) to test
Determine the underlying cause
Consider a broad range of alternatives
Build consensus on the resolution
Use efficient communication tools

Principle 14

Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).

The process of becoming a learning organization involves criticizing every aspect of what one does. The general problem solving technique to determine the root cause of a problem includes:

Initial problem perception
Clarify the problem
Locate area/point of cause
Investigate root cause (5 whys)
Countermeasure
Evaluate
Standardize

Research findings[edit]

In 2004, Dr. Jeffrey Liker, a University of Michigan professor of industrial engineering, published The Toyota Way. In his book Liker calls the Toyota Way 'a system designed to provide the tools for people to continually improve their work.'^[4] According to Liker, the 14 principles of The Toyota Way are organized in four sections: (1) long-term philosophy, (2) the right process will produce the right results, (3) add value to the organization by developing your people, and (4) continuously solving root problems drives organizational learning.

Long-term philosophy[edit]

The first principle involves managing with a long-view rather than for short-term gain. It reflects a belief that people need purpose to find motivation and establish goals.

Right process will produce right results[edit]

The next seven principles are focused on process with an eye towards quality outcome. Following these principles, work processes are redesigned to eliminate waste (muda) through the process of continuous improvement — kaizen. The seven types of muda are (1) overproduction; (2) waiting, time on hand; (3) unnecessary transport or conveyance; (4) overprocessing or incorrect processing; (5) excess inventory; (6) motion; and (7) defects.

The principles in this section empower employees in spite of the bureaucratic processes of Toyota, as any employee in the Toyota Production System has the authority to stop production to signal a quality issue, emphasizing that quality takes precedence (Jidoka). The way the Toyota bureaucratic system is implemented to allow for continuous improvement (kaizen) from the people affected by that system so that any employee may aid in the growth and improvement of the company.

Recognition of the value of employees is also part of the principle of measured production rate (heijunka), as a level workload helps avoid overburdening people and equipment (muri), but this is also intended to minimize waste (muda) and avoid uneven production levels (mura).

These principles are also designed to ensure that only essential materials are employed (to avoid overproduction), that the work environment is maintained efficiently (the 5S Program) to help people share work stations and to reduce time looking for needed tools, and that the technology used is reliable and thoroughly tested.

Value to organization by developing people[edit]

Human development is the focus of principles 9 through 11. Principle 9 emphasizes the need to ensure that leaders embrace and promote the corporate philosophy. This reflects, according to Liker, a belief that the principles have to be ingrained in employees to survive. The 10th principle emphasizes the need of individuals and work teams to embrace the company's philosophy, with teams of 4-5 people who are judged in success by their team achievements, rather than their individual efforts. Principle 11 looks to business partners, who are treated by Toyota much like they treat their employees. Toyota challenges them to do better and helps them to achieve it, providing cross functional teams to help suppliers discover and fix problems so that they can become a stronger, better supplier.

Solving root problems drives organizational learning[edit]

The final principles embrace a philosophy of problem solving that emphasizes thorough understanding, consensus-based solutions swiftly implemented and continual reflection (hansei) and improvement (kaizen). The 12th principle (Genchi Genbutsu) sets out the expectation that managers will personally evaluate operations so that they have a firsthand understanding of situations and problems. Principle 13 encourages thorough consideration of possible solutions through a consensus process, with rapid implementation of decisions once reached (nemawashi). The final principle requires that Toyota be a 'learning organization', continually reflecting on its practices and striving for improvement. According to Liker, the process of becoming a learning organization involves criticizing every aspect of what one does.

Translating the principles[edit]

There is a question of uptake of the principles now that Toyota has production operations in many different countries around the world. As a New York Times article notes, while the corporate culture may have been easily disseminated by word of mouth when Toyota manufacturing was only in Japan, with worldwide production, many different cultures must be taken into account. Concepts such as 'mutual ownership of problems', or 'genchi genbutsu', (solving problems at the source instead of behind desks), and the 'kaizen mind', (an unending sense of crisis behind the company’s constant drive to improve), may be unfamiliar to North Americans and people of other cultures. A recent increase in vehicle recalls may be due, in part, to 'a failure by Toyota to spread its obsession for craftsmanship among its growing ranks of overseas factory workers and managers.' Toyota is attempting to address these needs by establishing training institutes in the United States and in Thailand.^[6]

Results[edit]

Toyota Way has been driven so deeply into the psyche of employees at all levels that it has morphed from a strategy into an important element of the company's culture.^[7] According to Masaki Saruta, author of several books on Toyota, 'the real Toyota Way is a culture of control.'^[8]^[9] The Toyota Way rewards intense company loyalty that at the same time invariably reduces the voice of those who challenge authority.^[10]^[11] 'The Toyota Way of constructive criticism to reach a better way of doing things 'is not always received in good spirit at home.'^[12] The Toyota Way management approach at the automaker 'worked until it didn't.'^[7]

One consequence was when Toyota was given reports of sudden acceleration in its vehicles and the company faced a potential recall situation. There were questions if Toyota's crisis was caused by the company losing sight of its own principles.^[13] The Toyota Way in this case did not address the problem and provide direction on what the automaker would be doing, but managers instead protected the company and issued flat-out denials and placed the blame at others.^[14] The consequence of the automaker's actions led to the 2009–11 Toyota vehicle recalls. Although one of the Toyota Way principles is to 'build a culture of stopping to fix problems to get quality right the first time,' Akio Toyoda, President and CEO, stated during Congressional hearings that the reason for the problems was that his 'company grew too fast.'^[15] Toyota management had determined its goal was to become the world's largest automotive manufacturer.^[16] According to some management consultants, when the pursuit of growth took priority, the automaker 'lost sight of the key values that gave it its reputation in the first place.'^[17]

References[edit]

^'Environmental & Social Report 2003'(PDF). Toyota Motor. p. 80. Retrieved 26 March 2012.
^Toyota Motor Corporation Annual Report, 2003, page 19. 'The Toyota Way, which has been passed down since the Companyʼs founding, is a unique set of values and manufacturing ideals. Clearly, our operations are going to become more and more globalized. With this in mind, we compiled a booklet, The Toyota Way 2001, in order to transcend the diverse languages and cultures of our employees and to communicate our philosophy to them.' (Mr. Fujio Cho, President, Toyota Motor Corporation)
^'Sustainability Report 2009'(PDF). Toyota Motor. p. 54. Retrieved 26 March 2012.
^ ^a^bLiker, Jeffrey (2004). 'The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS'(PDF). University of Michigan. p. 36. Retrieved 26 March 2012.
^Liker, Jeffrey K. (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. McGraw-Hill. ISBN978-0-07-139231-0.
^Fackler, Martin (February 15, 2007). 'The 'Toyota Way' Is Translated for a New Generation of Foreign Managers'. The New York Times. Retrieved 26 March 2012.
^ ^a^bHeskett, James L (2012). The culture cycle : how to shape the unseen force that transforms performance. FT Press. p. 130. ISBN9780132779784. Retrieved 29 January 2014.
^Glionna, John M. (24 March 2010). 'Toyota's rigid culture criticized in light of recalls - Automaker's Toyota Way handbook dictates details of employees' lives, even in their off time'. Chicago Tribune. Retrieved 29 January 2014.
^Hino, Satoshi (2006). Inside the mind of Toyota : management principles for enduring growth. Productivity Press. p. 65. Retrieved 29 January 2014.
^'Relations with Employees'. Toyota Motors. Retrieved 29 January 2014.
^'Toyota Code of Conduct'(PDF). Toyota Motor Europe. October 2006. Archived from the original(PDF) on 14 September 2012. Retrieved 29 January 2014.
^Stanford, Naomi (2013). Corporate culture: getting it right. Wiley. p. 130. ISBN9781118163276. Retrieved 29 January 2014.
^Tseng, Nin-Hai (10 March 2010). 'Can the Toyota Way survive Toyota's ways?'. CNN Money. Retrieved 29 January 2014.
^Ordonez, Edward (1 December 2010). 'When the Toyota Way Went Wrong'. Risk Management. Retrieved 29 January 2014.
^'Hearing before the Committee on Oversight and Government Reform: Toyota gas pedals: is the public at risk'. U.S. Government Printing Office, Serial No. 111-75. 24 February 2010. Retrieved 29 January 2014.
^Harden, Blaine (13 February 2010). ''Toyota Way' was lost on road to phenomenal worldwide growth'. The Washington Post. Retrieved 29 January 2014.
^Harrison, Denise. 'Success Sows the Seeds of Failure - Toyota's Complacency Causes Reputation to Crash'. Center for Simplified Strategic Planning. Retrieved 29 January 2014.
^Choudhury, Uttara (10 April 2010). 'Jugaad enters management jargon'. DNA India. Diligent Media Corporation. DNA. Retrieved 26 March 2012.

Overview[edit]

The Japanese word kaizen means 'change for better', without inherent meaning of either 'continuous' or 'philosophy' in Japanese dictionaries and in everyday use. The word refers to any improvement, one-time or continuous, large or small, in the same sense as the English word 'improvement'.^[5] However, given the common practice in Japan of labeling industrial or business improvement techniques with the word 'kaizen', particularly the practices spearheaded by Toyota, the word 'kaizen' in English is typically applied to measures for implementing continuous improvement, especially those with a 'Japanese philosophy'. The discussion below focuses on such interpretations of the word, as frequently used in the context of modern management discussions. Two kaizen approaches have been distinguished:^[6]

Point Kaizen[edit]

It is one of the most commonly implemented types of Kaizen. It happens very quickly and usually without much planning. As soon as something is found broken or incorrect, quick and immediate measures are taken to correct the issues.

These measures are generally small, isolated and easy to implement, however they can have a huge impact.

In some cases, it is also possible that the positive effects of point kaizen in one area can reduce or eliminate benefits of point Kaizen in some other area. An example of Point Kaizen could be a shop inspection by a supervisor and he finds broken materials or other small issues, and then asks the owner of the shop to perform a quick Kaizen (5S) to rectify those issues.

System Kaizen[edit]

System Kaizen is accomplished in an organized manner and is devised to address system level problems in an organization.

It is an upper level strategic planning method which results in a number of planned Kaizen events over a long period of time. It is in contrast to point Kaizen which generally happens as a result of identification of a small issue which is resolved in a short period of time.

Line Kaizen[edit]

Line in this context refers to a structured spreading of Lean from point or discrete to the line. For example, Kaizen might be applied to a process (point), but also to the downstream process. Those two points constitute a Line Kaizen.

Another example might be in Lean implemented in procurement, but also being implemented in the planning department. Here in this case, planning is upstream from procurement and Kaizen is performed at those two points, which thus forms a line.

Plane Kaizen[edit]

It is the next upper level of Line Kaizen, in that several lines are connected together. In modern terminologies, this can also be described as value stream, where instead of traditional departments, the organization is structured into product lines or families and value streams. It can be visualized as changes or improvements made to one line being implemented to multiple other lines or processes.

Cube Kaizen[edit]

Cube Kaizen describes the situation where all the points of the planes are connected to each other and no point is disjointed from each other. This would resemble a situation where Lean has spread across the entire organization. Improvements are made up and down through the plane, or upstream or downstream, including the complete organization, suppliers and customers. This might require some changes in the standard business processes as well.

Kaizen is a daily process, the purpose of which goes beyond simple productivity improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work (muri), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes. In all, the process suggests a humanized approach to workers and to increasing productivity: 'The idea is to nurture the company's people as much as it is to praise and encourage participation in kaizen activities.'^[7] Successful implementation requires 'the participation of workers in the improvement.'^[8]People at all levels of an organization participate in kaizen, from the CEO down to janitorial staff, as well as external stakeholders when applicable. Kaizen is most commonly associated with manufacturing operations, as at Toyota, but has also been used in non-manufacturing environments.^[9] The format for kaizen can be individual, suggestion system, small group, or large group. At Toyota, it is usually a local improvement within a workstation or local area and involves a small group in improving their own work environment and productivity. This group is often guided through the kaizen process by a line supervisor; sometimes this is the line supervisor's key role. Kaizen on a broad, cross-departmental scale in companies, generates total quality management, and frees human efforts through improving productivity using machines and computing power.^{[citation needed]}

While kaizen (at Toyota) usually delivers small improvements, the culture of continual aligned small improvements and standardization yields large results in terms of overall improvement in productivity. This philosophy differs from the 'command and control' improvement programs (e.g., Business Process Improvement) of the mid-20th century. Kaizen methodology includes making changes and monitoring results, then adjusting. Large-scale pre-planning and extensive project scheduling are replaced by smaller experiments, which can be rapidly adapted as new improvements are suggested.^{[citation needed]}

In modern usage, it is designed to address a particular issue over the course of a week and is referred to as a 'kaizen blitz' or 'kaizen event'.^[10]^[11] These are limited in scope, and issues that arise from them are typically used in later blitzes.^{[citation needed]} A person who makes a large contribution in the successful implementation of kaizen during kaizen events is awarded the title of 'Zenkai'. In the 21st century, business consultants in various countries have engaged in widespread adoption and sharing of the Kaizen framework as a way to help their clients restructure and refocus their business processes.

History[edit]

The small-step work improvement approach was developed in the USA under Training Within Industry program (TWI Job Methods).^[12] Instead of encouraging large, radical changes to achieve desired goals, these methods recommended that organizations introduce small improvements, preferably ones that could be implemented on the same day. The major reason was that during WWII there was neither time nor resources for large and innovative changes in the production of war equipment.^[13] The essence of the approach came down to improving the use of the existing workforce and technologies.

As part of the Marshall Plan after World War II, American occupation forces brought in experts to help with the rebuilding of Japanese industry while the Civil Communications Section (CCS) developed a management training program that taught statistical control methods as part of the overall material. Homer Sarasohn and Charles Protzman developed and taught this course in 1949-1950. Sarasohn recommended W. Edwards Deming for further training in statistical methods.

The Economic and Scientific Section (ESS) group was also tasked with improving Japanese management skills and Edgar McVoy was instrumental in bringing Lowell Mellen to Japan to properly install the Training Within Industry (TWI) programs in 1951. The ESS group had a training film to introduce TWI's three 'J' programs: Job Instruction, Job Methods and Job Relations. Titled 'Improvement in Four Steps' (Kaizen eno Yon Dankai) it thus introduced kaizen to Japan.

For the pioneering, introduction, and implementation of kaizen in Japan, the Emperor of Japan awarded the Order of the Sacred Treasure to Dr. Deming in 1960. Subsequently, the Japanese Union of Scientists and Engineers (JUSE) instituted the annual Deming Prizes for achievement in quality and dependability of products. On October 18, 1989, JUSE awarded the Deming Prize to Florida Power & Light Co. (FPL), based in the US, for its exceptional accomplishments in process and quality-control management, making it the first company outside Japan to win the Deming Prize.^[14]

Implementation[edit]

The Toyota Production System is known for kaizen, where all line personnel are expected to stop their moving production line in case of any abnormality and, along with their supervisor, suggest an improvement to resolve the abnormality which may initiate a kaizen.

The PDCA cycles^[15]

The cycle of kaizen activity can be defined as: 'Plan → Do → Check → Act'. This is also known as the Shewhart cycle, Deming cycle, or PDCA.

Another technique used in conjunction with PDCA is the 5 Whys, which is a form of root cause analysis in which the user asks a series of five 'why' questions about a failure that has occurred, basing each subsequent question on the answer to the previous.^[16]^[17] There are normally a series of causes stemming from one root cause,^[18] and they can be visualized using fishbone diagrams or tables. The Five Whys can be used as a foundational tool in personal improvement,^[19] or as a means to create wealth.^[20]

Masaaki Imai made the term famous in his book Kaizen: The Key to Japan's Competitive Success.^[1]

In the Toyota Way Fieldbook, Liker and Meier discuss the kaizen blitz and kaizen burst (or kaizen event) approaches to continuous improvement. A kaizen blitz, or rapid improvement, is a focused activity on a particular process or activity. The basic concept is to identify and quickly remove waste. Another approach is that of the kaizen burst, a specific kaizen activity on a particular process in the value stream.^[21] Kaizen facilitators generally^{[weasel words]} go through training and certification before attempting a Kaizen project.^{[citation needed]}

In the 1990s, Professor Iwao Kobayashi published his book 20 Keys to Workplace Improvement and created a practical, step-by-step improvement framework called 'the 20 Keys'. He identified 20 operations focus areas which should be improved to attain holistic and sustainable change. He went further and identified the 5 levels of implementation for each of these 20 focus areas. 4 of the focus areas are called Foundation Keys. According to the 20 Keys, these foundation keys should be launched ahead of the others in order to form a strong constitution in the company. The four foundation keys are: