Book Review: The Toyota Way – 14 Management Principles From the World’s Greatest Manufacturer

1. Synopsis

“The Toyota Way” has been translated into 17 languages and has sold over a million copies worldwide, making it a popular resource for organizations seeking to adopt Toyota’s management practices. Jeffrey Liker is a professor of Industrial and Operations Engineering at the University of Michigan and has written several books on lean manufacturing and continuous improvement. He has consulted with numerous companies worldwide, helping them implement the principles of the Toyota Production System and improve their operations.

Jeffrey Liker’s book “The Toyota Way” is a comprehensive guide to the philosophy and management practices that have made Toyota one of the most successful companies in the world. Based on extensive research and interviews with Toyota employees, the book lays out 14 principles that form the foundation of the Toyota Production System, which has become a model for lean manufacturing and continuous improvement in organizations worldwide.

2. The 14 principles of the Toyota Way

The 14 principles of the Toyota Way are:

Principle 1 — Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals. This principle emphasizes the importance of thinking beyond immediate results and focusing on long-term sustainability and growth.

Principle 2 — Create a continuous process flow to bring problems to the surface. By creating a smooth, uninterrupted flow of work, problems are more likely to surface, allowing them to be addressed and resolved quickly.

Principle 3 — Use pull systems to avoid overproduction. Pull systems ensure that production is only initiated when a customer has requested it, preventing waste and excess inventory.

Principle 4 — Level out the workload. The risk of bottlenecks and uneven productivity is minimised by spreading the workload evenly across employees and processes.

Principle 5 — Build a culture of stopping to fix problems to get quality right the first time. Rather than ignoring or working around problems, Toyota encourages employees to address issues immediately, ensuring that quality is maintained throughout production.

Principle 6 — Standardize tasks and processes for continuous improvement and employee empowerment. By establishing standard procedures, employees can focus on improving their work rather than simply following instructions.

Principle 7 — Use visual control so no problems are hidden. Visual controls, such as kanban boards and other visual aids, make it easy to identify problems and monitor progress in real-time.

Principle 8 — Use only reliable, thoroughly tested technology that serves your people and processes. Toyota prioritizes the use of technology that is reliable, user-friendly, and aligned with the needs of employees and processes.

Principle 9 — Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. Effective leadership is critical to sustaining Toyota’s continuous improvement and employee empowerment culture.

Principle 10 — Develop exceptional people and teams who follow your company’s philosophy. Toyota invests heavily in developing its employees, providing training and opportunities for growth at all levels of the organization.

Principle 11 — Respect your extended network of partners and suppliers by challenging them and helping them improve. Toyota recognizes that its success is closely tied to the success of its partners and suppliers and works closely with them to ensure mutual benefit and continuous improvement.

Principle 12 — Go and see for yourself to thoroughly understand the situation. By getting out into the field and observing processes firsthand, managers can gain a deeper understanding of their organization’s strengths, weaknesses, and opportunities for improvement.

Principle 13 — Make decisions slowly by consensus, thoroughly considering all options. Toyota places a high value on consensus-building and takes a deliberate, thorough approach to decision-making.

Principle 14 — Become a learning organization through relentless reflection and continuous improvement. Above all, Toyota emphasizes the importance of constantly reflecting on past performance, identifying areas for improvement, and taking action to continuously improve processes and products.

3. Why Is “The Toyota Way” Book Unique?

“The Toyota Way” is a unique book that stands out from other management and leadership books due to its specific focus on the management philosophy and practices of Toyota, one of the world’s most successful and respected companies.

Unlike many other management books that are theoretical and abstract, “The Toyota Way” is grounded in practical examples and specific techniques that can be implemented by managers and leaders at all levels.

Another unique aspect of this book is its focus on continuous improvement and employee empowerment. The Toyota Production System (TPS) is based on the idea that every employee should be involved in identifying and solving problems and that improvement should be a constant, ongoing process. This philosophy is reflected in the 14 principles of the Toyota Way, which emphasize the importance of employee development, standardization, visual control, and a culture of stopping to fix problems.

Overall, “The Toyota Way” is a unique and valuable resource for managers and leaders seeking to improve their organization’s operations and culture. It provides a clear and actionable roadmap for implementing the principles of the Toyota Production System and is grounded in real-world examples and insights relevant to various industries and organizations.

4. Is the Toyota Way Relevant Today?

Yes, the Toyota Way is still relevant today and remains one of the most influential management philosophies in the world. The principles of the Toyota Way have been widely adopted by organizations across various industries, from manufacturing to healthcare to service sectors.

These principles are essential in today’s fast-paced and ever-changing business environment, where organizations must be agile and responsive to stay competitive. By involving employees in identifying and solving problems, organizations can tap into the full potential of their workforce and drive innovation and improvement.

Another reason why the Toyota Way remains relevant is its focus on sustainability and long-term thinking. In an era of increasing environmental and social awareness, organizations are under pressure to operate in a responsible and sustainable manner. The Toyota Way emphasizes the importance of thinking beyond short-term financial goals and focusing on long-term sustainability and growth, which is critical for building a strong and resilient organization.

Finally, The Toyota Way’s emphasis on standardization, visual control, and teamwork has proven effective in improving quality, reducing waste, and increasing efficiency. These principles are essential in today’s highly competitive global marketplace, where organizations must continuously improve their operations to stay ahead.

In conclusion, the Toyota Way remains highly relevant today and continues to influence how organisations worldwide operate and manage their operations. Its principles have proven effective in various industries and contexts and will likely remain influential.

5. Have The Toyota Way’s Principles Been Applied to Software Development?

The principles of the Toyota Way have been applied in software development with varying degrees of success. The Toyota Production System and its associated principles have been adapted to software development in what is known as the Lean software development approach.

5.1 Continuous Improvement

One of the key principles of the Toyota Way is the focus on continuous improvement. This principle has been adapted in software development to emphasize the importance of rapid feedback and continuous delivery. By breaking down software development into small, incremental steps, teams can receive feedback quickly and make real-time adjustments, leading to faster development cycles and higher-quality products.

5.2 Visual Control

Another principle of the Toyota Way that has been applied to software development is the idea of visual control. In software development, this translates to visual tools and dashboards that allow teams to track their progress and identify improvement areas. By visualizing the development process, teams can identify bottlenecks and inefficiencies and work to address them more effectively.

5.3 Process Standardisation

Other Toyota Way principles applied to software development include standardization, teamwork, and waste reduction. By standardizing processes and practices, teams can improve efficiency and reduce the risk of errors. By promoting teamwork and collaboration, teams can leverage the expertise of multiple team members to solve problems more effectively. And by reducing waste, teams can focus on delivering value to the customer more efficiently.

5.4 Summary

Applying the Toyota Way principles to software development has had varying success. While some organizations have reported significant improvements in quality and efficiency, others have struggled to fully implement these principles in a software development context. Nonetheless, the principles of the Toyota Way remain relevant. They can provide valuable insights and guidance for software development teams seeking to improve their processes and deliver higher-quality products to their customers.

7. Conclusion

The book is fun to read, especially due to the author’s excellent story-telling style and unique vantage point. Highly recommended!