The 14 Principles of the Toyota Way

The 14 Principles of the Toyota Way
adapted to the Engineering Design Process for EPC
Subtitle: “An Tribute to Anchor Bolts”
The Toyota Way can become a “new way of thinking” about creating
continuous improvements within an organization.
Quality, in principle and practice, is improved as a function of process improvements.
people and root problem solving. (The 4 P’s)
The Toyota Way has been called “a system (process) designed to provide the tools for
people to continually improve their work”.
Build Consensus (team-building) in Developing Solutions.
Implement Rapidly
Toyota Way is based upon people – improving their ability to contribute to success.
Based upon observation of the sources of problems – true problem solving.
Find the “root” sources of problems.
Go to the source and discover.
This presentation is adapted from The Toyota Way by Jeffery Liker, with examples primarily in the domain
of structural engineering and design drawings
Reflection: Thinking about anchor bolts is used to show how a common, everyday E-P-C item can be
used to contribute to a project improvement process. Toyota Production System (TPS) is
sometimes the“Thinking” Production System.
Thomas W. Hartmann, P.E.
takes a poor picture
Contact: cell phone (970)213-3656
Engineer Registrations
About the Presenter
Nebraska (Structural)
New Mexico
Has Entrepreneurial Philosophy
– Which Requires a sense of humor (people)
– Which Demands a creative outlet (process)
– Which Suggests innovative ways of
looking at the world (problem-solving)
Student of “Lean” a.k.a. Toyota Way
Successfully Implemented Process Improvements:
– Created “standard work” processes including BD/PD templates to influence
– 30% productivity gain while
– Staff utilization fell from >75% to 51%
(Reflection: The paradox of productivity vs. utilization)
– Less re-work and RFI’s (freeing up staff for more standard work…)
– Improved profitability (Reflection: Due to increased efficiency of delivery with less work)
– Staff Morale increased (due to reduction of re-work and increasing work quality)
– Created “standard work” drawing templates for improved productivity using B.I.M.
A Tribute to Anchor Bolts
by Thomas W. Hartmann, P.E.
– Started thinking about anchor and adhesive technologies in
Experimented with Library Paste (Kindergarten)
Scotch Tape Expert (Elementary School)
White Glue Professional (Elmer’s, middle school)
Contact adhesive and super glue (high school)
Epoxies and Metal fastenings (college, engineering curriculum)
Master’s Thesis at Colorado State on Eccentric Bolted Connections
Anchor bolts (post-graduate and career interest), particularly F-1554
– Reflection: Using Anchor bolts will provide “concrete” illustrations
about how “Lean” thinking can be incorporated into the design
Anchor Bolts – Safety Topic
– Reflection: Using Four Anchor bolts will
provide column stability and is required by
OSHA unless the column is deemed a “post”
and weighs less than 300 lbs. OSHA regulations
provide a design criteria.
– Self-study: Determine the OSHA design criteria
and calculate the required bolt force.
The Toyota Way is:
A new Way of Thinking
• The 14 principles of The Toyota Way are organized
(visually) into four sections (The 4P’s):
1. Long-Term Philosophy (purple)
2. The Right Process Will Produce the Right Results (green)
3. Add Value to the Organization by Developing Your People
4. Continuously Solving Root Problems Drives
Organizational Learning. (blue)
The principles are set out and briefly described following:
Section I — Long-Term
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
• Establish a Long-Term Vision and Strategy
– Reflection: Toyota has a 500 strategic year plan. Why?
Long-Term Philosophy
• Example Mission: We are a global project
delivery company, making technology work to
help our clients build a better world.
Mission (The 4 P’s of the Toyota Way)
• Help our clients to build a better world globally
(philosophy, problem-solving), using our
expertise (people) and technology (process
• Reflection: Should every company have a 500 strategic year
plan? Why or Why Not?
Applying a Long-Term Philosophy
• By leveraging and improving knowledge about
technology (process improvement), engineering
companies can provide consistently greater value to
our clients.
• As a starting discussion, anchor bolts are simple,
inexpensive fabrications used on most construction
projects. Simplified layout aids the field crew.
• Yet, improper installation or errors in fabrication could
create significant, expensive delays (problems) and
have a great negative impact on project schedule and
Reflection: Do you think that your group has a standard anchor bolts? Why or Why
Beyond the philosophy:
• Section II — The Right Process Will
Produce the Right Results
• Continuous Flow
• “Pull” work to even production
• Level Out Workoad
• Standardize tasks and Processes
• Use visual control systems
• Use only reliable technology that serves people and
• Reflection: How much rework is necessary if anchor
bolts are mis-set?
Beyond the right process:
•Section III — Add Value to the
Organization by Developing Your People
• Grow leaders who understand the work, live the
philosophy, and teach to others.
• Develop people and teams who follow company’s
• Respect your extended network of partners and
suppliers – challenging and helping them to improve,
•Reflection: Are the anchor bolt fabricators partners
with Engineering Companies?
Beyond developing people:
•Section IV Continuously Solve Root Problems
To Drive Organizational Learning.
• Go and see for yourself the root cause to understand
the situation. (Genchi Genbutsu).
• Make decisions slowly by consensus, thoroughly
consider all options, implement rapidly.
• Become a learning organization through relentless
reflection (hansei) and continuous improvement
• Reflection: Why focus on anchor bolts?
• They are on most projects. Are there problems?
• Are there competing standards between groups?
•If yes, then there is room for improvement!
Beyond Continuous Improvement:
Why focus on anchor bolts using “lean thinking”?
• They are used on most E-P-C projects.
• There may be competing standards between business
• Every structural engineer has an opinion.
• Anchor bolts are a point of structure failure and source of
many RFI’s.
• Anchor bolts are “long-lead” items, and if “standardized”,
may improve the E-P-C delivery, safety, cost and schedule.
• “Standard” bolts can be pre-ordered or stocked in the
fabricator’s shop.
Reflection: Anchor bolts provide the concrete example on how to become a
learning organization through concensus-building, relentless reflection
(hansei) and continuous improvement (kaizen).
Principle 2: — Reduce Wasted
• 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.
• Kaizen is a “rapid improvement” process to
eliminate waste. Kaizen, loosely translated
could mean “Blue ocean view” or big picture
Eliminate waste (muda)
The eight types of waste, applied to anchor bolts, are:
Overproduction (e.g. too many anchor bolts)
Waiting (time on hand, e.g. waiting for fabrications to arrive)
Unnecessary transport or conveyance (e.g. handling and storage)
Overprocessing or incorrect processing (e.g. set out incorrectly or
without templates such as “wet-stabbed”)
Excess inventory (e.g. left over bolts)
Unnecessary movement (e.g. cycle of redlines on shop drawings)
Defects (e.g. bolt misalignment requiring RFI’s)
Unused employee creativity (e.g. “We’ve always used this
standard, though it has problems”)
Principle 3 -- Pull
 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.
• Design Application: Designers request work from
production system and production process.
• vs. “Push system”: Engineers prepare designers work.
• Reflection: Can a construction site pull the needed anchor rods from stock,
which then signals the fabricator to produce more standard anchor rods?
Principle 4--Steady
Level out the workload (heijunka).
 Work like the ( tortoise, not the hare).
– This helps achieve the goal of minimizing waste
– not overburdening people or the equipment (muri),
– and not creating uneven production levels (mura).
Principle 5 – Quality
  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.
• Reflections: Ford: “Quality is Job #1”
• Toyota/Lexus: “Endless Pursuit of Perfection”
• “Measure twice, install once” (anchor rods)
Principle 6 – Standardize
(part of 5S’s)
  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— Visual Controls
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.
– Reflection #1: Engineers and designers visually control
drawings with revision marks and clouds. How can
projects be visually controlled?
– Reflection #2: How can the anchor bolts annotations be
improved on drawings to reduce field layout errors?
– Reflection #3 Can anchor bolt embedment and gagespacing become more standard to expedite EPC delivery?
The 5S’s:
  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
Expanding the 5S’s:
Example Thinking
 
Sort: Sort out unneeded items:
• Prepare and provide the “minimum” calculation set. – Save paper and
management of the reproduction process.
• One set of “standard structural details” across business groups when
• (Reflection: How many anchor bolt designs should be standard?)
 
Straighten: Have a place for everything
• Example: A library of standard calculations attached to standard details
attached to standard sheets attached to standard specifications.
• Develop this thinking out of production tasks (i.e. Ask yourself -- should
this be standard work, and if so, promote it to the team!
• (Reflection: Again, how many anchor bolt designs should be the
Expanding The 5S’s:
 Shine: Keep the area clean
 Standardize: Create rules and standard
operating procedures
 Sustain: Maintain the system and continue to
improve it
Principle 8 Reliable Technology
• Use only reliable, thoroughly tested technology that serves
your people and processes.
• Base this upon “prototyping” or creation of multiple working
sets of information that are subject to the improvement
• Technology is pulled by manufacturing/design, not pushed to
– Reflection: Anchor bolts are often specified by our suppliers and
“pushed” into our work and drawings. Would it be worthwhile to send
suppliers and fabricators ”standard” bolt designs for their
consideration to help reduce field errors and improve quality?
Section III — Add Value to the
Organization by Developing Your
• Without constant attention, the principles will
• 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 9 -- Leadership
  Grow leaders who thoroughly understand
the work, live the philosophy, and teach it to
Principle 10 -- Teamwork
  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 Suppliers
  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:
Continuous Improvement
• Continuously Solving Root Problems Drives
Organizational Learning
– Principle 12: Go and See the Problem
– Principle 13: Decision Making by Concensus
– Principle 14: Reflection
Principle 12 – Go See
  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 (TCC)) ten
management principles as a guideline:
Ten Management Principles
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 (beyond) the box," or beyond common sense and standard rules.
Always be mindful of protecting your safety and health.
Principle 13 – Decision Making
 Make decisions slowly by consensus, thoroughly
considering all options; implement decisions rapidly
 Here are some decision parameters:
1. Find what is really going on (go-and-see) to test
2. Determine the underlying cause
3. Consider a broad range of alternatives
4. Build consensus on the resolution
5. Use efficient communication tools
Principle 14 -- Reflection
  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 follows:
Determine the root cause:
• 1. Initial problem perception
• 2. Clarify the problem
• 3. Locate area/point of cause
• 4. Investigate root cause (5 whys)
• 5. Countermeasure
• 6. Evaluate
• 7. Standardize
Determine the root cause:
1. Initial problem perception: Anchor bolts are often mis-set
2. Clarify the problem: One in 100 bolt sets is wrong (1%)
3. Locate area/point(s) of cause: Many layout configurations, many bolts sizes, vendor
requirements, etc.
4. Investigate root cause (5 whys)
Why so many layout configurations?
– Why can’t engineering companies standardize?
• Vendors/Tradition/Always done it that way
– Why maintain the tradition?
– “Too busy to fix”
» Why to busy?
» “I’m Busy Answering RFI’s on Anchor Bolt Problems in the Field!”
5. Countermeasure
6. Evaluate: One in 1000 bolt sets is wrong (0.1%)
7. Standardize: What could AB-1-24+6(36) mean?
Reflection: Anchor bolts add a trivial cost on most projects. How much is the cost of missing a
schedule because the anchor bolts took six to 10 weeks to fabricate?
Translating the principles
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.[
• 1. Liker, J. 2004. "The 14 Principles of the Toyota Way: An Executive
Summary of the Culture Behind TPS", p. 37. Ann Arbor, Michigan:
University of Michigan. Retrieved: 2007-04-24
• 2. Liker, J. 2004. The Toyota Way: 14 Management Principles from the
World's Greatest Manufacturer.
• 3. Fackler, Martin. The ‘Toyota Way’ Is Translated for a New
Generation of Foreign Managers. New York Times. February 15, 2007.
Retrieved on: July 2, 2007.
Hino, Satoshi (2005). Inside the Mind of Toyota: Management
Principles for Enduring Growth. University Park, IL: Productivity Press.
ISBN 978-1-56327-300-1.
 
Liker, Jeffrey (2004). The 14 Principles Of The Toyota Way: An
Executive Summary of the Culture Behind TPS.
 
Liker, J (2004). The Toyota Way: 14 Management Principles from the
World's Greatest Manufacturer. McGraw-Hill. ISBN 0071392319.
 
Liker, J; Meier, D. (2005). The Toyota Way Fieldbook: A Practical
Guide for Implementing Toyota's 4Ps. McGraw-Hill. ISBN 0071448934.
External Resources
• The Toyota Way - Official Site
• Retrieved from