The Toyota Way
April 21, 2013 Leave a comment
Last year I participated in a book study group for The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer by Jeffrey K. Liker. The book covers the management philosophy that is deeply ingrained in the Toyota culture. I knew about Lean Manufacturing before reading the book, but thought it was mainly a bunch of techniques to maximize efficiency. I have heard many people over the years complain about it in the context of manufacturing environments, especially how it forces them to do things that don’t seem based in common sense like throwing away all scrap or spare parts that could be reused. I’ve also heard disaster stories about how companies have been trying to apply the techniques in non manufacturing settings like for office work.
It’s obvious after reading the book why so many attempts at implementing lean in the U.S. have failed. Lean is not a set of techniques or procedures, but a different way of thinking. It emphasizes focus on long term thinking, not the results for next quarter, or even next year, but decades into the future. It emphasizes doing things in a way that quickly exposes problems so that they can be solved. In the short term this will actually end up being less efficient, because problems can be covered up or fixed with band aids. It became obvious to me after the first few chapters that if this long term focus was missing, nothing would ultimately be gained by using the techniques (maybe some short term gains, but eventually these would evaporate).
The principles have nothing to do with the type of work being performed, either routine manufacturing tasks, creative engineering tasks, or any other human work. Following these principles will lead to continuous improvement, and eventually excellence. In fact, it will lead to preservation of the firm even when faced with major changes in technology, conditions, or environment. For example, I was very surprised to learn that Toyota started out making looms, and now they are the most successful car company in the world. Who knows what this company will even be doing in 100 years, but it’s pretty certain that it will be something for the betterment of mankind.
Just to give a little preview into the content of the book, here are the 14 principles that flow from the underlying Toyota Way philosophy:
- Long term philosophy
- Process – Create continuous process flow to bring problems to the surface
- Process – Use “pull” systems to avoid overproduction
- Process – Level out the workload (tortoise, not the hare)
- Process – Build a culture of stopping to fix problems, to get quality right the first time
- Process – Standardized tasks are the foundation for continuous improvement
- Process – Use visual control so no problems are hidden
- Process – Use only reliable, thoroughly tested technology that serves your people and processes
- People and partners – Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others
- People and partners – Develop exceptional people and teams who follow your company’s philosophy
- People and partners – respect your extended network of partners and suppliers by challenging them and helping them to improve
- Problem solving – Go and see for yourself to thoroughly understand the situation
- Problem solving – Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly
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Problem solving – Become a learning organization through relentless reflection and continuous improvement
I highly recommend reading this book. I took careful notes while I read, and came up with several additional resources that may be of interest. For more details to the above list or principles, here is a mind map (The Toyota Way, original Xmind source) that I created while reading the book. At the same time I was reading this, I was also learning about Agile development, and noticed that there was a lot of overlap, so I added connections in the mind map between Agile and Toyota Way. As part of our book study, we visited a lean report out for ThedaCare (a local health care organization here in WI). They obviously have embraced the philosophy and long term thinking and it shows from everyone who presented or spoke. There is a book by John Toussaint called On the Mend: Revolutionizing Healthcare to Save Lives and Transform the Industry that describes the experience of lean at Theda Care. I was also very interested in differences between Japanese and Western culture that lead this philosophy to develop in Japan, and the book mentions a book called The Geography of Thought: How Asians and Westerners Think Differently … and Why by Richard Nisbett. Strangely, while the philosophy developed and blossomed in Japan, it was heavily based on the work of a westerner, Samuel Smiles, who published a book titled Self-Help in 1859. I have not read these follow up books yet, but I intend to.