Toyota Culture
Toyota’s Educational Challenge, Production System and
Global strategies
There are 51 large factories in 26 countries, producing
9 million cars with high operating profit (9 trillion Yen) in 2006
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Toyota Culture
1.Japanese spirit combined with Western learning.
(Learning Western knowledge, technology without
losing Japanese cultural identity) 和魂洋才
2. Toyota 4 P Model
3. Human Resource Policy
4 Team Work for Kaizen and Monozukuri
(continuous improvement in quality control)
5. Coexistence with local communities
involving local people
6. Best service for the customers
7. Environmentally friendly cars and CSR
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Toyota 4 P Method
Problem-solving
(Continuous
improvement and
learning)
Genchi Genbutsu
People and Partners
(respect,
challenge, and
grow them)
(respect & teamwork)
Process
Eliminative Waste
(respect & teamwork)
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Philosophy (challenge)
(long –term thinking)
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Toyota 4 P Method
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The Toyota way, the management principles of
Toyota is a 4P model: Philosophy, Process,
People and Problem Solving. The 4Ps form a
pyramid, the foundation of which is a long-term
philosophy that focuses on adding value to
customers and society. Building on that is
Toyota’s investment is lean process, which
concentrates on shortening lead time by
eliminating waste. Eliminating waste is done by
people using rigorous problem-solving methods-the top two layers of the pyramid. Toyota’s
management system is described by fourteen
principles within these four levels. (Jeffrey Liker, 2008)
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The Summary of 14 Principles of the Toyota Way
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Long-Term Philosophy (in management and
production system)
The Right Process Will Produce the Right Results
Problem solving and mutual benefit through
teamwork
Avoiding over production
Standardized tasks and processes for continuous
improvement and employee empowerment
Develop and Challenge Your People and Partners
through Long-term Relationships
Problem Solving and Continuous Improvement
Genchi Genbutsu: Go and see for yourself to
thoroughly understand the reality and situation
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Harvard Business Review
Comparison between factories in GM and factories in Toyota
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1 Sense of belonging to Toyota by life-time commitment
2 High motivation and moral for working
3 Workers’ pride as a member of engineering group
4 Collaborative team work by the workers and managers
5 High quality control by strict regulation creates pride and
innovation
6 Kaizen (Improvement) from the line work to the top
management
7 Engineers can participate in the process of the top
management
8 All the workers are encouraged to prepare for the future
needs and improvement
9 All the workers are encouraged to suggest and propose
new ideas for Kaizen (improvement) in any process of
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production and development
Toyota’s Production system
overseas
 In
1985 Toyota established a joint
venture New United Motor
Manufacturing Incorporated (NUMM)
with GM in the United States in order to
recover a GM factory in California.
 In 1990 The Machines that Changed the
World published by several professors
of MIT introduced Toyota’s Production
system to the world.
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Working as a Human being
supported by the strength of teamwork.
Factory workers are working as a human being
not as part of the machinery.
 Defectives must be cut to zero as much as
possible.
 If a problem occur the entire line is stopped
immediately. Then all workers and supervisors
put their heads together to solve the problem.
This leads to eliminate every waste of defective,
error, or accident and improve productivity.

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Toyota’s Production system
In 1949 Toyota produced only1000
vehicles a month. The industrial
productivity of USA was eight
times greater than of Japan.
 In 2006 Toyota group’s worldwide
production plan aims at producing
8.4 million vehicles.
•
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Toyota’s Production System
based on Japanese creativity combined with
Western Expertise.
 The executives of Toyota knew that Toyota
or even the Japanese automobile industry
could not survive by simply copying the
operations of America.
 They knew overproduction can kill their
company.
 Toyota knew how important it was to
manufacture an appropriate number of
appropriate (marketable) products at an
appropriate time.
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Toyota’s Production system is
based on Supermarket System
Several engines or transmissions for
each type of vehicle are placed on
shelves and the assembly plant
personnel picks up as many engines or
transmissions as they need from the
shelves. All engines are labeled with
information cards which are removed
when the engines are picked up.
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Leading Motives of the Toyota Production System
Absolutely eliminate waste from every
phase of the production process
 Waste of stock on hand
 Waste of processing
 Waste of overproduction
 Waste of time on hand
 Waste of movement
 Waste of making defective products
 Excellent service for the customers

Japan on the Globe (No.368), October 31, 2004.
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The Policy of SONY in UK
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The Policy of SONY in UK
Representing Japanese Business Management and
Manufacturing: 2200 British workers and producing
half-million TV sets a year
Mr. Morita’s Mission, The Chairman of SONY
Technology and philosophy are globalized but SONY
respects each cultural systems and identities in overseas
factories.
Technology enrich peoples life.
Engineers should be involved in top management.
Top Management should have technological backgrounds.
Manufacturing is value adding business.
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Philosophy of SONY
SONY in Europe are independent from
SONY in Tokyo but follows overall
guidelines.
 SONY in UK has got all materials in Europe.
 SONY in UK has never been involved in
strike for the past 17 years.
 SONY highly estimated the Process of
Manufacturing and Quality of Engineers.
 Top-Management = The voice of Engineers
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The Voice of British Director of
SONY in UK
1. High Commitment to the Company
 2. Work Ethic=Team Work and Harmony
 3. A long and mid-term views
 4 A long and mid-term investment in
innovated products and people for
high quality result
 5. Good communication with shared
information
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The Voice of British Engineer of
SONY in UK
 Constant
Involvement of People
 Production process and lines are
not isolated.
 The high quality of Engineers for
excellent
manufacturing
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The Voice of British Line Worker of
SONY in UK
 Workers
are responsible for their
work.
 Very few mistakes
 We could work out some mistakes
as a team.
 We feel we are part of team with
the same target.
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Mr. Morita’s Mission,
The Chairman of SONY
Technology and philosophy are
globalized but SONY respects each cultural
systems and identities in overseas factories.
 Technology enrich peoples life.
 Engineers should be involved in top
management.
 Top Management should have technological
backgrounds.
 Manufacturing is value adding business.

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