The Toyota Way

1. The Toyota Way How They Became #1 Presented by Adrienne Larson

2. What is The Toyota Way? Values and Conduct: • Challenge • Kaizen (improvement) • Genchigenbutsu (go and see) • Respect • Teamwork

3. 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

4. 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

5. 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

6. 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

7. The Bad News Since 2007……. • U.S economy in trouble • Slowed truck sales for Tundra • Toyota had major recalls in 2009 and 2010 • 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

8. 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”

9. HR issues in 2007 • Employing the Toyota Way globally • Need to be perfect at all times • Culture of GROUPTHINK • U.S. competition lacking

10. HR issues in 2013 Getting beyond culture of groupthink but still applying their Toyota way as explained: • 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 (genchigenbutsu) • Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly • Become a learning organization through relentless reflection and continuous improvement

11. 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

12. Thank You are there Any Questions? Work sited: Wikipedia Case study The Toyota Way PDF][pdf] toyota global visionwww.toyota-global.com/company/message_from.../president110309.pdf‎Toyota will lead the way to the future of mobility, ... We will meet challenging goals by engaging the talent and ... Boost human resourcedevelopment.