Business

The Toyota Way: 8 key ideas

The core ideas of The Toyota Way, each in under a minute, written in our own words. Want the full depth? Get the book.

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  1. IDEA 1 OF 8

    Toyota's success rests on principles

    Liker studied Toyota for many years and argues that its success comes from a set of management principles, not just tools.

    He summarises them as fourteen principles that shape how Toyota thinks, works and improves.

  2. IDEA 2 OF 8

    Think long term

    Toyota bases decisions on long-term philosophy, even at the expense of short-term profits.

    Purpose guides choices. The idea is that a company that thinks about the long term will not give up its purpose for a quick gain.

  3. IDEA 3 OF 8

    Create continuous flow

    Toyota aims to create continuous flow in production, reducing waiting and waste.

    Problems become visible quickly. When work moves smoothly from one step to the next, hidden problems show up sooner, and they can be dealt with quickly.

  4. IDEA 4 OF 8

    Use pull systems

    Toyota produces only what is needed, when it is needed, using pull systems.

    This avoids overproduction. In this system, the next step asks for work only when it needs it, so goods are not piled up waiting.

  5. IDEA 5 OF 8

    Level the workload

    Toyota levels production, called heijunka, to avoid peaks and troughs.

    Stable work improves quality. In this view, an even pace of work is easier on both people and machines, and so they are less likely to make mistakes.

  6. IDEA 6 OF 8

    Stop to fix problems

    Toyota encourages stopping production to fix problems immediately, called jidoka.

    Quality is built in. The idea is that it is better to stop and fix a fault at once than to let faulty work pass on to the next step.

  7. IDEA 7 OF 8

    Go and see

    Toyota leaders practise genchi genbutsu, going to the place where work happens to understand problems.

    Data alone is not enough. The idea is that seeing the real situation with your own eyes teaches more than reading reports from a distance.

  8. IDEA 8 OF 8

    Keep improving

    Toyota values continuous improvement, kaizen, and reflection, hansei.

    Learning never stops. The idea is that every person looks for ways to do the work better, and thinks honestly about what went wrong.

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