2015/9/21 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

2015/9/22 Toyota Culture 1.Japanese spirit combined with Western learning. (Learning Western knowledge, technology without losing Japanese cultural identity) 和魂洋才 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

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) Philosophy (challenge) (long –term thinking) 2015/9/2 3

Toyota 4 P Method 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) 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) 2015/9/24

The Summary of 14 Principles of the Toyota Way Long-Term Philosophy (in management and production system) Long-Term Philosophy (in management and production system) The Right Process Will Produce the Right Results The Right Process Will Produce the Right Results Problem solving and mutual benefit through teamwork Problem solving and mutual benefit through teamwork Avoiding over production Avoiding over production Standardized tasks and processes for continuous improvement and employee empowerment Standardized tasks and processes for continuous improvement and employee empowerment Develop and Challenge Your People and Partners through Long-term Relationships Develop and Challenge Your People and Partners through Long-term Relationships Problem Solving and Continuous Improvement Problem Solving and Continuous Improvement Genchi Genbutsu: Go and see for yourself to thoroughly understand the reality and situation Genchi Genbutsu: Go and see for yourself to thoroughly understand the reality and situation 2015/9/25

6 Harvard Business Review Comparison between factories in GM and factories in Toyota 1 Sense of belonging to Toyota by life-time commitment 1 Sense of belonging to Toyota by life-time commitment 2 High motivation and moral for working 2 High motivation and moral for working 3 Workers’ pride as a member of engineering group 3 Workers’ pride as a member of engineering group 4 Collaborative team work by the workers and managers 4 Collaborative team work by the workers and managers 5 High quality control by strict regulation creates pride and 5 High quality control by strict regulation creates pride and innovation innovation 6 Kaizen (Improvement) from the line work to the top 6 Kaizen (Improvement) from the line work to the top management management 7 Engineers can participate in the process of the top 7 Engineers can participate in the process of the top management management 8 All the workers are encouraged to prepare for the future 8 All the workers are encouraged to prepare for the future needs and improvement needs and improvement 9 All the workers are encouraged to suggest and propose 9 All the workers are encouraged to suggest and propose new ideas for Kaizen (improvement) in any process of new ideas for Kaizen (improvement) in any process of production and development production and development

2015/9/27 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 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. In 1990 The Machines that Changed the World published by several professors of MIT introduced Toyota’s Production system to the world.

2015/9/28 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. Factory workers are working as a human being not as part of the machinery. Defectives must be cut to zero as much as possible. 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. 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.

2015/9/29 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 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. In 2006 Toyota group’s worldwide production plan aims at producing 8.4 million vehicles.

2015/9/210 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. 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. 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. Toyota knew how important it was to manufacture an appropriate number of appropriate (marketable) products at an appropriate time.

2015/9/211 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. 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.

2015/9/212 Leading Motives of the Toyota Production System Absolutely eliminate waste from every phase of the production process Absolutely eliminate waste from every phase of the production process Waste of stock on hand Waste of stock on hand Waste of processing Waste of processing Waste of overproduction Waste of overproduction Waste of time on hand Waste of time on hand Waste of movement Waste of movement Waste of making defective products Waste of making defective products Excellent service for the customers Excellent service for the customers Japan on the Globe (No.368), October 31, Japan on the Globe (No.368), October 31, 2004.

2015/9/213 The Policy of SONY in UK

2015/9/214 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.

2015/9/215 Philosophy of SONY SONY in Europe are independent from SONY in Tokyo but follows overall guidelines. 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 got all materials in Europe. SONY in UK has never been involved in strike for the past 17 years. 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. SONY highly estimated the Process of Manufacturing and Quality of Engineers. Top-Management = The voice of Engineers Top-Management = The voice of Engineers

2015/9/216 The Voice of British Director of SONY in UK 1. High Commitment to the Company 1. High Commitment to the Company 2. Work Ethic=Team Work and Harmony 2. Work Ethic=Team Work and Harmony 3. A long and mid-term views 3. A long and mid-term views 4 A long and mid-term investment in 4 A long and mid-term investment in innovated products and people for innovated products and people for high quality result high quality result 5. Good communication with shared 5. Good communication with shared information information

2015/9/217 The Voice of British Engineer of SONY in UK Constant Involvement of People Constant Involvement of People Production process and lines are not isolated. Production process and lines are not isolated. The high quality of Engineers for excellent The high quality of Engineers for excellent manufacturing manufacturing

2015/9/218 The Voice of British Line Worker of SONY in UK Workers are responsible for their work. Workers are responsible for their work. Very few mistakes Very few mistakes We could work out some mistakes as a team. We could work out some mistakes as a team. We feel we are part of team with the same target. We feel we are part of team with the same target.

2015/9/219 Mr. Morita’s Mission, The Chairman of SONY Technology and philosophy are Technology and philosophy are globalized but SONY respects each cultural systems and identities in overseas factories. globalized but SONY respects each cultural systems and identities in overseas factories. Technology enrich peoples life. Technology enrich peoples life. Engineers should be involved in top management. Engineers should be involved in top management. Top Management should have technological backgrounds. Top Management should have technological backgrounds. Manufacturing is value adding business. Manufacturing is value adding business.