INSEAD Library

Includes bibliographical references and index

Digitized

Toyota Culture The Heart and Soul of the Toyota Way The Center for Quality People and Organizations Contents Acknowledgments Foreword Preface: From the Toyota Way to Toyota Culture The Toyota Way Is About Culture Two Models of the Toyota Way xv xxi xxv xxv xxvii Part One. What Is Toyota Culture? Chapter 1. The DNA of Toyota Lies in Its Culture Why Are Lean and Six Sigma Programs Not Enough? What Is Culture? (It's All in Our Heads) People Are the Heart and Soul of the Toyota Way The Toyota Way 2001 First Documented the Culture A Deeper Analysis of Culture The Challenges of Taking Culture Across Boundaries Cross-National Culture by the Numbers East versus West Means a Different Way of Thinking Is the Toyota Way a Direct Reflection of Eastern Thinking? The Challenges of Changing Culture at Other Companies: A Warning Caveat: Toyota Is Made Up of People--and People Are Not Perfect Summary: Reasons for Hope? Key Points to Consider for Your Company Chapter 2. The Human Systems Model Toyota's Turnaround from Bankruptcy: Reflecting and Reinforcing Culture Supporting the Two Critical Value Streams: Product and People The Core of Toyota Culture Is Not Negotiable The Missing People Value Stream Problem Solving Connects the Two Value Streams I 3 3 5 10 12 16 20 20 22 24 27 31 32 32 35 35 37 37 37 38 The Human Systems Model Outside the People Value Stream: Purpose, Outputs, and Inputs The Core People Value Stream People-Supporting Processes and Daily Management The Organizational-Supporting Processes and the Role of HR The Model Is Not a Silver Bullet--It Is What You Do Every Day Summary Key Points to Consider for Your Company Chapter 3. Toyota Way + Local Environment + Purpose = Success Purpose--Why Are We Here? Outputs--Quality People Working Together to Continuously Improve Based on Shared Toyota Values Quality People Lead to Quality Results Launch a New Culture with an Obsession for Quality Stopping the Line Is Everyone's Responsibility One Step and Then Another The Inputs to the Organization Philosophy and Values Production System Principles Creating a Pool of Eligible Human Resources Starting with Careful Location of Operation Developing a Capable Labor Pool Summary: Laying the Foundation for Toyota Culture Key Points to Consider for Your Company Part One. Summary 40 41 43 45 46 48 49 49 51 51 55 55 56 58 59 60 60 61 64 64 65 70 71 73 PartTwo.The Quality People Value Stream Chapter 4. Attract Competent and Trainable People Selecting Employees for Life Hiring the Right Person, in the Right Amount, in the Right Form, at the Right Time The Right Person In the Right Amount: Based on Long Term Employment Needs In the Right Form At the Right Time Funnel Model of Recruitment: Many Prospects Lead to Few Hires Selection: Long-Term Match 75 77 77 79 79 81 82 82 83 84 Toyota Georgetown Original Recruitment and Selection Process for Hourly Team Members Improved Toyota Georgetown Recruitment and Selection Process Selecting Toyota Executives Pay Me Now or Pay Me Later Summary Key Points to Consider for Your Company Chapter 5. Developing Competent and Able People Toyota Trains People Like They Are All Surgeons Getting Started: Team Member Orientation Work Conditioning Human Resources Policies Production Training to Do the Job Classroom Training Personal Training Opportunities On-the-Job Development (OJD) Fundamental Skill Training (GPC) From Visual Manuals to Standardized Work Action Training and Image Training Standardized Work and Job Breakdown Job Instruction Method Follow Up and Support Until Student Masters the Job The Role of the Toyota Team Member--Training for All Temporaries and New Hires Continuous Improvement of Job Training Work-Related Training Needs Identification (Through COPA) Training Different Levels at Toyota Team Leader and Group Leader Training Manager Level Training Manager Rotation--Cross-Training General Manager and VP Level Training Making Available Training Resources Summary Key Points to Consider to for Your Company Chapter 6. Engaging Competent and Willing People in Continuous Improvement Problem Solving May Be the Silver Bullet At Toyota Everyone Is a Problem Solver 1. Engineers and Pilot Teams Create Initial Standards Learning From Past Problems 149 149 154 158 86 95 101 103 103 103 105 105 107 107 107 108 109 111 116 117 118 120 120 126 127 129 129 132 133 134 138 140 141 142 145 146 147 Engineers Begin the Development of Standardized Work The Pilot Team Is a Way to Involve and Develop Team Members 2. Work Teams Work to Standard and Detect Deviations in an Atmosphere of No Blame Without Standards There Are No Problems Standardized Work is the Basis for Improvement by the Team Use of Standards Does Not Mean Every Operation Is the Same Team Members serve as Problem Detectors 3. Work Teams Contain Disruptions to Production through "Event-Type" Problem Solving Toyota's Suggestion System Supports Event-Type Problem Solving 4. Work Teams Improve the Standards Through "Setting-Type" Problem Solving 5. Broader Problem Solving to Level Up the System Roles in Problem Solving by Level of the Organization Jishuk en--A Kaizen Event or Way to Develop Leaders? Leaders Encourage and Develop Kaizen Through Guidance, Trust and Discipline Summary Key Points to Consider for Your Company Chapter 7. Inspiring People to Be Committed to the Company, Family, and Community What It Means to be Committed to Toyota The Challenges of Inspiring Commitment in a Western Setting Deepening the Cycle of Learning and Commitment Challenge Team Members to Grow and Develop Family and Community Focus Family Focus Community Focus Think Green: Positively Impacting the Physical Environment Green Buildings in Toyota Motor Sales Environmental Safety Zero Landfill Goal Paint Waste Improvement Keeping the Developed Team Member Through High Retention Committed Toyota Members Can be Developed Outside Japan Summary Key Points to Consider for Your Company Part Two. Summary 158 160 161 161 163 164 165 170 174 176 178 178 182 184 186 186 189 189 192 194 197 201 204 204 208 208 212 213 214 216 219 219 220 221 Part Three. People Supporting Processes 223 Chapter 8. Work Groups and Team Problem Solving 227 Teams and Work Groups Are the Basic Units of Toyota Organization 227 Toyota Organizational Structure: Flat and Optimal Span of Control 231 Work Groups at Work Case Example 238 Many Types of Problem-Solving Groups 245 Problem Solving Groups at Work: Case Example 246 National Culture and Teamwork 256 No Social Differences 258 Summary 259 Key Points to Consider for Your Company 260 Chapter 9. Clean and Safe Workplace A Holistic Approach The Physical Work Environment: Clean, Well Lit, and Comfortable Physically Safe Processes Design in Ergonomically Safe Jobs Ergonomic Ratings and Rotations The KYT Meeting Standardized Work, Job Instruction, and Safety Early Symptom Intervention Psychologically Safe in the Plant Safe and Respectful Environment Cognitive Simplification: Challenging but not Stressful Safety Culture Team Member Care--Personal Health and Safety Dealing with Workers on Restrictions Medical Clinics on Site An Onsite Pharmacy: Getting It Wrong, Then Getting It Right Summary Key Points to Consider for Your Company Chapter 10. Two-Way Communication and Visual Management Communication Is Fragile Formal Channels of Communication Top-Down Communications Meetings, Meetings, Meetings Meeting Facilitation and Communications Training Clear Roles and Responsibilities Make Meetings Efficient and Effective Human Resource Facilitated Upward Communication Informal Communication Channels 261 261 262 264 264 266 271 271 275 279 279 280 282 285 285 286 286 288 288 289 289 292 292 295 298 302 304 308 Visual Control and A-3s as a Communication System Visual Indicators of the Status of the Process A-3 Reporting to Visually Communicate Status Summary Key Points to Consider for Your Company Chapter 11. Servant Leadership Leaders Develop Culture Servant Leadership Thoughtful Leaders Living the Toyota Way Values Challenge Kaizen Genchi Genbutsu Respect Teamwork How Does Toyota Select and Develop Leaders? Summary--Best of Both Worlds Key Points to Consider for Your Company Part Three. Summary 311 311 313 315 315 317 317 319 322 322 324 325 327 328 331 333 336 337 Part Four. Organizational Supporting Processes Chapter 12. Commitment and Tools for Stable Employment Long-term Partnership or Disposable Labor? Stable Employment Depends on a Flexible Work Force Transfers (Flexible Movement) Multiskilled Worker (Flexible Skills) Flexible Overtime Temporary Workforce and Freshman Jobs Planning for Ups and Downs in the Market Short-term Planning The Ups and Downs of Workforce Management Putting It All Together Globally Summary Key Points to Consider for Your Company Chapter 13. Fair and Consistent HR Policies and Practices What Is Fairness? Trust Economy Versus Commodity Economy Fairness and Consistency Is Human Resources' Mandate Restructuring HR as a Result of a Critical Problem Understanding the Problem Back to the Basics--Values The HR Reorganization 339 341 341 344 346 346 346 348 350 352 355 358 361 362 363 363 366 368 372 372 373 374 Union Influences: Is a Third Party Needed to Represent the Interests of Labor in the Toyota Culture? Summary Key Points to Consider for Your Company Chapter 14. Slow Promotion and Rewards for Teamwork Do you get what you measure? Toyota's Rewards and Recognition System in Japan Production side Engineering side T-Type people A Holistic Approach to Rewards and Recognition East versus West Views of Rewards and Recognition Blended and Balanced Rewards and Recognition Systems in Toyota USA Compensation and Benefits Hourly Employee Compensation Keep It Simple and Communicate It Often Salaried Compensation Benefits Encourage Long-term Security and Trust Performance Evaluation System: Individual Development Plan Slow Promotion Process at TMMK Corrective Action System at TMMK Where East Meets West in Performance Management Tread Carefully in Changing Rewards Systems to Imitate Toyota Key Points to Consider for Your Company Chapter 15. Hoshin Kanri and Floor Management Development System The Hoshin Systems Makes Investment in Culture Payoff What is Hoshin and How does it Relate to the Floor Management Development System? The Floor Management Development System (FMDS) Connecting Hoshin-FMDS and the Quality People Value Stream A Year in the Life of Hoshin Kanri at Toyota Step 1. TMC Selects a Hoshin Theme (a priority to focus on) Step 2. Cascade to TEMA Step 3. Cascade Down to Manufacturing Plants (TMMK) Step 4. Department Heads Play "Catch Ball" with Their Section Managers Step 5. The Hoshin Cascades Down to the Individual Plants 381 385 386 389 390 393 394 395 396 398 400 403 403 405 406 407 408 410 411 414 419 423 426 427 427 429 432 433 435 435 439 440 441 443 Step 6. The Plan Goes Down to the Group Leaders Step 7. Hoshin Goals Are Taken to the Team Members on the Floor The PDCA Phases Floor Management Development System Is Hoshin planning really just MBO with a Japanese name? Frequently Asked Questions and Answers about Hoshin Don't Rush Headlong into Hoshin Key Points to Consider for Your Company Part Four. Summary 445 445 446 449 452 453 455 456 457 Part Five. Learning from Toyota About Growing a Lean Culture Chapter 16. Leveling Up Toyota Culture at Toyota Motor Sales Toyota Motor Sales turns Fifty Teaching Lean Thinking at the University of Toyota Bringing Kaizen to the TMS Finance Division Is Toyota Motor Sales Lean? Key Points to Consider for Your Company Chapter 17. The Lexus and Scion Stories Beyond Continuous Improvement to strategic Innovation Lean Customer Service the Lexus Way Attract and Select Lexus Dealers Develop Lexus Dealers Engage Lexus Team Members Inspire Lexus Team Members Creating Scion to Attract Young People to the Customer Value Stream Leveling up the Total Customer Experience Summary Chapter 18. Developing Your Culture of Quality People for Long-Term Mutual Prosperity Lean Transformation: Tools to Reduce Waste or Cultural Transformation? The Challenge of Building the Quality People Value Stream in the Context of Traditional Western Management Different Approaches to Organizational Transformation Lean Transformation at Big Ship Compared to Small Ship 459 463 463 466 472 477 479 481 481 482 483 484 486 488 490 496 499 501 501 504 509 510 What Can We Learn from Big Ship Compared to Small Ship? The Cultural Assumptions Behind Lean Six Sigma Versus the Toyota Way What Do We Know about Organization and Culture Change? Leaders Must Lead Change Needs a Reason and a Vision People Must be Taught and Supported Change Requires a Plan and a Process Phasing in the Transformation Process Use Lean Projects as a Vehicle for Developing People and Culture Build Deep Models, While Spreading Tools Broadly Senior Leaders Take a Serious Look at Themselves and Their Motives Assess Your Current Cultural Strengths and Weaknesses and Develop Your Future State Model Develop Daily Management Systems Starting in the Models Then Spreading Change Supporting HR Systems First to Eliminate Barriers to Development As the Lean Effort and Organization Matures Add in Hoshin at a High Level As the Organization Matures Add Supporting HR Structures Continue Reflecting, Planning, and Improving Summary Key Points to Consider for Your Company Bibliography Index 515 518 524 525 530 532 535 538 539 542 543 544 544 545 545 546 546 546 547 549 553