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Toyota

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by

Lenard Böpple

on 23 January 2014

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Transcript of Toyota

Toyota

as almost number one


1. Company's History and
Internationalization Process
2. Case Analysis
Knowledge Conversion
The Toyota Way
Implementation
3. Conclusion: Toyota Today
4. Discussion
Structure
Process
Eliminate Waste
Philosophy
Long-Term Thinking
People & Partners
Respect, Challenge
and Grow Them
Problem Solving
Continuous Improvement
and Learning
Philosophy
Continuous Improvement
Respect for People
Challenge
-> counter challenges with creativity

Kaizen
-> continuous
optimization process

Genchi Genbutsu
-> building consensus
and trust

Respect
-> building mutual
trust

Teamwork
-> sharing
opportunities

'What is important is having all the elements together as a system.
It must be practiced everyday in a very consistent manner -not in spurts.'

Fujio Cho
Knowledge Conversion Process
Tacit knowledge:
subjective and experience based knowledge that can not be expressed in words
unspoken/unwritten knowledge

Explicit knowledge:
objective and rational knowledge that can be expressed in words, sentences
What knowledge conversion process is necessary for the codification of
"The Toyota Way"
codifying the knowledge....
converting tacit knowledge to explicit knowledge in a usable form

The process necessary to achieve externalization
Articulate the knowledge
How: communication

Develop a framework

Distribute the knowledge
(e.x. writing it down....)
What did Toyota do?
Interviewed

Within a year, 23 different distinctive characteristics were brought up.

After careful consideration they used these gathered information to codify "the Toyota Way"

Externalization
Source:http://www.knowledge-nurture.com/downloads/NONAKA.pdf
PDF: Summary of Organizational Knowledge Creation presentation given by Ikujiro Nonaka,1997

Source:http://www.geocities.jp/soltyclub/project/reading/050817.html
Kajiwara Kazuaki "Toyota Way: Shinka suru saikyo no keieijyutsu"2005

"Toyota way"
1. Continuous Improvement
a. Philosophy: long term thinking
 
b. Process: eliminate waste

2. Respect for People
a. People and Partners: employment
security, teamwork

b. Problem solving: Genchi Genbutsu,
share the experience


Knowledge conversion processes
Externalization
: tacit knowledge to explicit knowledge

1. Articulate knowledge, how? by communication
2. Create a framework
3. Distribute by documenting

Transfer globally
"Bible for overseas executives"

Training Centers (Britain, India, USA, France)

Teaching to new employees

Retain retired managers and send out younger ones

Use non Japanese employees from experienced subsidiaries like Toyota Canada


Discussion Questions
Does Toyota way remain up-to-date,
even if it hasn't changed since 2001?

Do you think that the use of non-Japanese managers could damage the Toyota's rumour?

Do you think that for the employees the Toyota way is a forced or a shared process?

Implementation of the Toyota Way
Target: Producing the same quality everywhere
sharing knowledge and philosophy with all employees
How?
Knowledge Transferring
Writing down the principles to make it understandable for also non-Japanese
2000 teachers (sensei)
Transferring Knowledge
of the Production System
Building up Training Centers
Sending abroad Toyota managers from Japan



Result:
A nearly perfect system
of knowledge conversion


"Continuous Improvement"
and "Respect for people"

"Bible for overseas executives"
Understanding the Japanese mentality minted philosophy
Nothing is impossible:
Toyota as Number One
Establishment
1984
post war
Observation of American automobile manufacturers
e.g. Ford


kaizen
kanban
Japan: 40% market share
Toyota Corona
NUMMI
New United Motor Manufacturing Incorporated
Joint Venture by General Motors and Toyota
1984-2010 at Fremont Assembly, CA
1937
1950
1957
2013
Toyota Motor Corporation Ltd.
established by Toyoda Kiichiro
1937
1957
2. Strengthening their training
Developing many Japanese coordinators (SENSEI) for overseas operations.
3. Facilitating more learning and knowledge transfer among overseas subsidiaries.
One-way diffusion of knowledge from headquarters is not enough

Used non-Japanese SENSEI
1. Codification and dissemination of the Toyota Way
Before: preached principles only through socialization

After: Documented "the Toyota Way"
Case Summary
How did Toyota try to regain their reliability?
Un-Toyota-like-quality problems
....45% of production is outside of Japan
Reference
http://www.knowledge-nurture.com/downloads/NONAKA.pdf PDF: Summary of Organizational Knowledge Creation presentation given by Ikujiro Nonaka,1997
http://www.geocities.jp/soltyclub/project/reading/050817.html Kajiwara Kazuaki "Toyota Way: Shinka suru saikyo no keieijyutsu"2005
http://www.spiegel.de/wirtschaft/unternehmen/autobauer-toyota-haengt-volkswagen-bei-weltabsatz-ab-a-879991.html
http://www.toyotadesign.com.au/past-toyota-way.asp
http://www.toyota-forklifts.de/De/company/TMH/Pages/The%20Toyota%20Way.aspx
http://www.panview.nl/en/lean-production/toyota-way-j-liker-summary
http://www.finanzen.net/nachricht/aktien/Autohersteller-Toyota-bleibt-die-weltweite-Nummer-eins-2742799
Developing the employees, not the process itself
1
Employees of a new assembly factory are sent to an existing factory


2
Get experience by working on the assembly line alongside experienced Toyota workers
3
Sending them back to the new factory

4
share knowledge with the other employees in the new factory
about 200 for several months
High quality production from the start in each new factory
ensuring Continuous Improvement
also using employes from experienced subsidiaries
Full transcript