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TheToyotaWayFieldbookThispageintentionallyleftblankTheToyotaWayFieldbookJeffreyK.LikerDavidMeierAPracticalGuideforImplementingToyota’s4PsMcGraw-HillNewYorkChicagoSanFranciscoLisbonLondonMadridMexicoCityMilanNewDelhiSanJuanSeoulSingaporeSydneyTorontoCopyright©2006byTheMcGraw-HillCompanies,Inc.Allrightsreserved.ManufacturedintheUnitedStatesofAmerica.ExceptaspermittedundertheUnitedStatesCopyrightActof1976,nopartofthispublicationmayberepro-ducedordistributedinanyformorbyanymeans,orstoredinadatabaseorretrievalsystem,withoutthepriorwrittenpermissionofthepublisher.0-07-150211-4ThematerialinthiseBookalsoappearsintheprintversionofthistitle:0-07-144893-4.Alltrademarksaretrademarksoftheirrespectiveowners.Ratherthanputatrademarksymbolaftereveryoccurrenceofatrademarkedname,weusenamesinaneditorialfashiononly,andtothebenefitofthetrademarkowner,withnointen-tionofinfringementofthetrademark.Wheresuchdesignationsappearinthisbook,theyhavebeenprintedwithinitialcaps.McGraw-HilleBooksareavailableatspecialquantitydiscountstouseaspremiumsandsalespromotions,orforuseincor-poratetrainingprograms.Formoreinformation,pleasecontactGeorgeHoare,SpecialSales,[e-mail][phone].TERMSOFUSEThisisacopyrightedworkandTheMcGraw-HillCompanies,Inc.(“McGraw-Hill”)anditslicensorsreserveallrightsinandtothework.Useofthisworkissubjecttotheseterms.ExceptaspermittedundertheCopyrightActof1976andtherighttostoreandretrieveonecopyofthework,youmaynotdecompile,disassemble,reverseengineer,reproduce,mod-ify,createderivativeworksbasedupon,transmit,distribute,disseminate,sell,publishorsublicensetheworkoranypartofitwithoutMcGraw-Hill’spriorconsent.Youmayusetheworkforyourownnoncommercialandpersonaluse;anyotheruseoftheworkisstrictlyprohibited.Yourrighttousetheworkmaybeterminatedifyoufailtocomplywiththeseterms.THEWORKISPROVIDED“ASIS.”McGRAW-HILLANDITSLICENSORSMAKENOGUARANTEESORWAR-RANTIESASTOTHEACCURACY,ADEQUACYORCOMPLETENESSOFORRESULTSTOBEOBTAINEDFROMUSINGTHEWORK,INCLUDINGANYINFORMATIONTHATCANBEACCESSEDTHROUGHTHEWORKVIAHYPERLINKOROTHERWISE,ANDEXPRESSLYDISCLAIMANYWARRANTY,EXPRESSORIMPLIED,INCLUDINGBUTNOTLIMITEDTOIMPLIEDWARRANTIESOFMERCHANTABILITYORFITNESSFORAPARTICULARPURPOSE.McGraw-Hillanditslicensorsdonotwarrantorguaranteethatthefunctionscon-tainedintheworkwillmeetyourrequirementsorthatitsoperationwillbeuninterruptedorerrorfree.NeitherMcGraw-Hillnoritslicensorsshallbeliabletoyouoranyoneelseforanyinaccuracy,errororomission,regardlessofcause,intheworkorforanydamagesresultingtherefrom.McGraw-Hillhasnoresponsibilityforthecontentofanyinformationaccessedthroughthework.UndernocircumstancesshallMcGraw-Hilland/oritslicensorsbeliableforanyindirect,inci-dental,special,punitive,consequentialorsimilardamagesthatresultfromtheuseoforinabilitytousethework,evenifanyofthemhasbeenadvisedofthepossibilityofsuchdamages.Thislimitationofliabilityshallapplytoanyclaimorcausewhatsoeverwhethersuchclaimorcausearisesincontract,tortorotherwise.DOI:10.1036/0071448934WehopeyouenjoythisMcGraw-HilleBook!Ifyou’dlikemoreinformationaboutthisbook,itsauthor,orrelatedbooksandwebsites,pleaseclickhere.ProfessionalWanttolearnmore?AcknowledgmentsxiForewordxvPrefacexixPartI.LearningfromToyota11.BackgroundtotheFieldbook3WhyTheToyotaWayFieldbook?3HowtheBookIsOrganized6OverviewoftheToyotaWayPrinciples8HowtoUseThisBook14PartII.WhyDoesYourCompanyExist?152.DefineYourCorporatePhilosophyandBegintoLiveIt17WhatIsYourCompany’sPhilosophy?17ASenseofPurposeInsideandOut18CreatingYourPhilosophy23LivingYourPhilosophy24MakingaSocialPactwithEmployeesandPartners25MaintainingContinuityofPurpose27PartIII.CreatingLeanProcessesThroughoutYourEnterprise313.StartingtheJourneyofWasteReduction33LeanMeansEliminatingWaste33DevelopingaLong-TermPhilosophyofWasteReduction37ValueStreamMappingApproach37BenefitsoftheValueStreamMappingApproach41ContentsFormoreinformationaboutthistitle,clickhereDevelopingaCurrentStateMap42UnderstandYourObjectivesWhenMappingtheCurrentState43LimitationsoftheValueStreamMappingApproach47CreatingFlowStepbyStep49SequentialandConcurrentContinuousImprovement524.CreateInitialProcessStability56FirstGettoBasicStability56IndicatorsofInstability57ClearingtheClouds58ObjectivesofStability58StrategiestoCreateStability59IdentifyandEliminateLargeWaste60StandingintheCircleExercise60StandardizedWorkasaTooltoIdentifyandEliminateWaste615SandWorkplaceOrganization64ConsolidateWasteActivitiestoCaptureBenefits65ImproveOperationalAvailability71ReduceVariabilitybyIsolatingIt74LeveltheWorkloadtoCreateaFoundationforFlowandStandardization775.CreateConnectedProcessFlow80One-PieceFlowIstheIdeal80WhyFlow?81LessIsMore:ReduceWastebyControllingOverproduction83StrategiestoCreateConnectedProcessFlow89Single-PieceFlow89KeyCriteriaforAchievingFlow91Pull94ComplexFlowSituations98PullinaCustomManufacturingEnvironment100CreatingPullBetweenSeparateOperations102Flow,Pull,andEliminateWaste1086.EstablishStandardizedProcessesandProcedures111IsStandardizationCoercive?111StandardizedWorkorWorkStandards?113ObjectiveofStandardization114Strategie