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Transcript of Toyota
as almost number one
1. Company's History and
2. Case Analysis
The Toyota Way
3. Conclusion: Toyota Today
People & Partners
and Grow Them
Respect for People
-> counter challenges with creativity
-> building consensus
-> building mutual
'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.'
Knowledge Conversion Process
subjective and experience based knowledge that can not be expressed in words
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
Develop a framework
Distribute the knowledge
(e.x. writing it down....)
What did Toyota do?
Within a year, 23 different distinctive characteristics were brought up.
After careful consideration they used these gathered information to codify "the Toyota Way"
PDF: Summary of Organizational Knowledge Creation presentation given by Ikujiro Nonaka,1997
Kajiwara Kazuaki "Toyota Way: Shinka suru saikyo no keieijyutsu"2005
1. Continuous Improvement
a. Philosophy: long term thinking
b. Process: eliminate waste
2. Respect for People
a. People and Partners: employment
b. Problem solving: Genchi Genbutsu,
share the experience
Knowledge conversion processes
: tacit knowledge to explicit knowledge
1. Articulate knowledge, how? by communication
2. Create a framework
3. Distribute by documenting
"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
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
Writing down the principles to make it understandable for also non-Japanese
2000 teachers (sensei)
of the Production System
Building up Training Centers
Sending abroad Toyota managers from Japan
A nearly perfect system
of knowledge conversion
and "Respect for people"
"Bible for overseas executives"
Understanding the Japanese mentality minted philosophy
Nothing is impossible:
Toyota as Number One
Observation of American automobile manufacturers
Japan: 40% market share
New United Motor Manufacturing Incorporated
Joint Venture by General Motors and Toyota
1984-2010 at Fremont Assembly, CA
Toyota Motor Corporation Ltd.
established by Toyoda Kiichiro
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"
How did Toyota try to regain their reliability?
....45% of production is outside of Japan
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
Developing the employees, not the process itself
Employees of a new assembly factory are sent to an existing factory
Get experience by working on the assembly line alongside experienced Toyota workers
Sending them back to the new factory
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