The
Toyota
Way
How They
Became #1
Presented by Adrienne Larson
What is The Toyota Way?
Values and Conduct:
 Challenge
 Kaizen
(improvement)
 Genchi genbutsu (go and see)
 Respect
 Teamwork
The Four Main Components
 Long-term
thinking as a basis for
management decisions
 A process for problem-solving
 Adding value to the organization by
developing its people
 Recognizing that continuously solving root
problems drives organizational learning
Is The Toyota Way the reason
for their competitive
advantage?
A
brief look at their history:
Founded in 1937 as a auto manufacturer
 Studied USA companies
 1982 Took over old GM plant
 Began selling cars in USA in late 80’s
 2007 became the #1 auto manufacture in
USA

Their Competitive advantage
was evident in 2007
 Passed
the top Three in auto sales
 #1 car in America was the Camry
 Entering the Full size truck market
 #1 fuel economy in car
 All aspect of lean manufacturing , just in
time inventory, and TQM practiced
 No product recalls
Does Toyota still have the
competitive advantage in
2013?
To
answer that we need to look
at what has happened to the
company since 2007
The Bad News Since 2007…….

U.S economy in trouble

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Toyota had major recalls in 2009 and 2010
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Slowed truck sales for Tundra
Camry acceleration
9million recall due to bad window switch largest
in auto history
Lost credibility, closed plants for 11 days
2011Natural disasters caused major
production problems
Went from 8th (2005)on Forbes list to 55th
(2011)
Did not maintain consecutively #1 auto
manufacture
The good news since 2007....
 216
billion in revenue as of May 2013
 Top auto manufacture in 2012
 Largest hybrid car manufacture globally
 Second behind Chevy Volt in plug-in
hybrid in U.S sales
 Ended GM partnership 2009
 Working towards image of “An American
Company”
HR issues in 2007
 Employing
 Need
to be perfect at all times
 Culture
 U.S.
the Toyota Way globally
of GROUPTHINK
competition lacking
HR issues in 2013
Getting beyond culture of groupthink but still
applying their Toyota way as explained
:
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Base your management decisions on a long-term philosophy, even at
the expense of short-term goals
Create continuous process flow to bring problems to the surface
Use "pull" systems to avoid overproduction
Level out the workload
Build a culture of stopping to fix problems, to get quality right the first
time
Standardized tasks are the foundation for continuous improvement and
employee empowerment
Use visual control so no problems are hidden
Use only reliable, thoroughly tested technology that serves your people
and processes
Grow leaders who thoroughly understand the work, live the philosophy,
and teach it to others
Develop exceptional people and teams who follow your company’s
philosophy
Respect your extended network of partners and suppliers by challenging
them and helping them improve
Go and see for yourself to thoroughly understand the situation (genchi
genbutsu)
Make decisions slowly by consensus, thoroughly considering all options;
implement decisions rapidly
Become a learning organization through relentless reflection and
continuous improvement
Top three issues for HR
 Build
a culture of stopping to fix problems,
to get quality right the first time
Never let mass recalls to happen again
 Grow leaders who thoroughly understand
the work, live the philosophy, and teach it
to others
Can American workers rise to this standard?
 Make decisions slowly by consensus,
thoroughly considering all options;
implement decisions rapidly
The big three American auto manufacturer
are giving chase through solid competition
Thank You are there Any
Questions?
Work sited: Wikipedia
Case study The Toyota Way
PDF][pdf] toyota global visionwww.toyotaglobal.com/company/message_from.../pre
sident110309.pdfToyota will lead the way to
the future of mobility, ... We will meet
challenging goals by engaging the talent
and ... Boost human resource development.