The Steps of Toyota Business Practices

How to Teach TBP Steps
Toyota Institute
Copyright 2006 TOYOTA INSTITUTE, Toyota Motor Corporation (Internal Use Only)
TOYOTA BUSINESS PRACTICES

INTRODUCTION
Toyota Institute
Emphasize that TBP is a

common language and
common business method at
Toyota, and it is important for
all the Toyota members in all
functions of the company.
Outcome of TBP
Explain that after acquiring
TBP Provides Growth & Satisfaction
TBP knowledge, actual
practice is even more
important.
TOYOTA
Toyota Members
Combining our efforts and attaining

mutual growth
Achieving greater challenges
Sharing the accomplishments
Growing together
Business Partners
Mutual trust through
successful business
Achieving long-term prosperities

Sharing the accomplishments
Growing together
Ourselves
Personal growth and accomplishment

Possessing a strong desire to succeed and a drive for continual improvement
Seeing a project through to the end
Continual growth
Outcome of TBP
By practicing TBP, we can

eventually contribute to
TBP Provides Growth & Satisfaction
society.
Society and Our Customers
The satisfaction of having the best products and services available
TOYOTA
The satisfaction of steady company growth and prosperity
Toyota Members
Business Partners
Combining our efforts and

attaining mutual growth
Mutual trust through

successful business
Ourselves
Personal growth and accomplishment
Toyota Global Content

Emphasize that basic action
of the Toyota Way that every
Toyota members should
3. Hoshin Kanri
acquire.
Toyotas
Management
System
P
A
P
A
2. Toyota Business
Practices (TBP)
D A
P
A
D A
P
C
D
P
4. On-the-Job
Training (OJT)
D ABy D
acquiring TBP, you
C
C grow in TW depth.
will
1. Toyota Way 2001

How to Practice TW
TBP can be used in any

function not only in
Any Function manufacturing environment.
Practice the Toyota Way

Functional Toyota Way
Manufacturing Sales & Marketing HRM
Accounting Purchasing Safety
[Functional base ]
Computer
Performance
Application
Software
Toyota Business Practices
OS
[Operation Base]
Toyota Way 2001
Philosophical Value and Beliefs
[Value Base]
How to Practice TW
Any Job Title / Grade
P
President
D
C
P
VP/GM
C
P
Manager
P
D
C
A
P
D
D
C
P
D
P
Specialist A
P
TBP
can be used at any levels
D
in
the
company (Although the
C
scope of the problem is
different).
P
P
D
D
C
7
TOYOTA BUSINESS PRACTICES

8 STEPS
1. Overall Image of TBP

Emphasize that all 8 steps are
TBP consist of:
equally important
8 Steps (Concrete Actions & Processes)
Drive & Dedication
Concrete Actions & Processes
1. Clarify the Problem
Values
Toyota Way
Always Confirm the Purpose

of Your Work
3. Target Setting
Ownership and Responsibility
5. Develop
Countermeasures
TBP
Customer First
2. Break Down the Problem
4. Root Cause Analysis
Actions
Drive & Dedication
6. See Countermeasures
Through
7. Monitor Both Results

and Processes
8. Standardize
Successful Processes
Visualization (MIERUKA)
Judgment Based on Facts
Think and Act Persistently
We should avoid
skipping any of
the steps.
Speedy Action in a Timely
Manner
Follow Each Process with
Sincerity and Commitment

Thorough Communication
Involve All Stakeholders
2. Drive & Dedication

Drive & Dedication:
Dedication
Explain that all the D&Ds are

integrated and related to each
other.
Motivational Guideline
Mind-set
Based on the Toyota Way
Ex: Breakdown (Step 2) & Genchi Genbutsu etc
10

1. Customer First
Try to make your participants

grasp the essence of what
each D&D means.
2. Always Confirm the Purpose of

Your Work
3. Ownership and Responsibility
11

4. Visualization (Mieruka)
5. Judgment Based on Facts
6. Think and Act Persistently
7. Speedy Action in a Timely Manner
12

8. Follow Each Process with Sincerity
and Commitment
9. Thorough Communication
10. Involve All Stakeholders
13
3. TBP 8 Steps (1 5)
8 STEPS
Step 1.
Clarify the Problem
Step 2.
Break Down the Problem
Step 3.
Target Setting
AGAIN, emphasize that

1.Clarify the Ultimate Goal of your
responsibilities
& work
all
8
Steps
are equally
2.Clarify the Ideal Situation of your work
3.Clarify the Current Situation of your workimportant.
PROCESSES
4. Visualize the gap between the Current Situation and the Ideal Situation
1. Breakdown the problem
2. Select the problem to pursue
3. Specify the point of cause by checking the process through GENCHI
GENBUTSU
1. Make the commitment
2. Set measurable, concrete, and challenging targets
Step 4.
Cause Analysis
1. Consider causes by imagining the actual situation where the problem occurs
2. Based on facts gathered through GENCHI-GENBUTSU,
keep asking Why?
3. Specify the root cause
Step 5.
Develop
Countermeasures
1. Consider as many potential countermeasures as possible

2. Narrow down the countermeasures to the most practical and effective
3. Build consensus with others
4. Create a clear and detailed action-plan
14
3. TBP 8 Steps (6 8)
PROCESSES
8 STEPS
Step 6.
See Countermeasures
Through
1. Quickly and as a team, implement countermeasures

2. Share progress by following the correct reporting, informing, and
consulting communication procedures.
3. Never give up, and proceed to the the next step quickly
Step 7.
Monitor Both
Results and Processes
1. Evaluate the overall results and the processes used, then share the evaluation with
involved members.
2. Evaluate from three key viewpoints: Customers, Toyotas, and Your Own
3. Understand the factors behind the success or failure
Step 8.
Standardize Successful
Processes
1. Structure the successful processes (Standardize )

2. Share the new precedent through YOKOTENKAI
3. Start the next round of KAIZEN
15
4. Definition of Problem in Toyota
What does Problem mean to you?

Lead your participants to
think about this.
16

Problems are golden opportunities for KAIZEN
Emphasize the importance of
At Toyota
showing the attitude of
identifying
* Problem is not a negative
word. problems
and that no problem is the
* Problems are disguised KAIZENs.
We needof all.
biggest problem
to aggressively uncover them.
No one has more trouble
than the person who claims to have no trouble.
(Having no problems is the biggest problem of all.)
Taiichi Ohno
17

Definition of Problem
By visualizing the problem

the TBP Steps can be applied
to all cases.
Ideal Situation
Gap = Problem
Current
Situation
18

Types of Problems
(Future) Ideal
Situation
GAP
Normal
Status
Acceptable (Current)
Ideal Situation
GAP
Event Type of Problem
Current
Situation
Setting Type of
Problem
This is the basic

problem
identification.
Without the ability
to identify an
Event type of
problem, Setting
problem types will
be impossible to
identify
19
5. Concrete Actions & Processes
Toyota Business Practices (TBP)
20
Step 1: Clarify the Problem

Again, emphasize all the 8
8 STEPS
Step 1.
Clarify the Problem
Step 2.
Step 3.
Target Setting
Step 4.
Root Cause Analysis
Step 5.
Develop
Countermeasures
steps
are equally important
PROCESSES
1.Clarify the Ultimate Goal
of your
responsibilities
and
this
order& work
should not be
changed.
3.Clarify the Current Situation of your work

GENBUTSU
2. Based on facts gathered through GENCHI-GENBUTSU, keep asking Why?
21

Firstly, think about
~ Making ambiguous problems clearthe
~ ultimate goal.
Ultimate Goal
Contribution
Am I actually contributing
to the ultimate goal?
Ideal Situation
What is the
ideal situation?
Gap
Current Situation
Then, ideal
situation
Problem
Make explicit
through
visualization
Need to visualize
the gap
22
Explain that the ultimate goal

of your work& work
should be
Step 1 (1): Clarify the Ultimate Goal of your responsibilities
connected to Toyotas
Toyotas Goal: To provide the satisfaction from our products
and services
ultimate
goal.
to societies and our customers
The Goals That

Guide My Jobs
Purpose
To provide customers with highly functional and high-quality

cars at reasonable prices
My Jobs
Purpose
To build the
best
automobiles
My Work &
Responsibilities
Draft
Blueprints
Department
Research &
Development
To build the most To acquire the best

efficient production parts at the best
prices
lines
To improve
customers lives
through Toyota
automobiles
To produce the
best products and
services at fair
prices
To produce
without mura,
muri & muda*
To sell
lots of
automobiles
To correctly
settle all
accounts
Create Sales &

Marketing
Campaigns
Issue and
Collect
Payments
Design
Production
Lines
Select Parts
to Purchase
Design
Production
Plans
Engineering
Procurement
Production
Sales
Finance
The Ultimate Goal of your

work should be connected to
Toyotas Ultimate Goal.
23

Try to make the participants
EX1. Julie Case
think the process through.

You should use your
companys example if you
can.
Julie is supervising the assembly line which equips auto parts to

the car models A, B & C. Her assignment is to supervise and to
make sure the quality of both interior and exterior of the cars
before proceeding to the next assembly line.
She recently realized that the (exterior) scratches on the cars
have increased to around 4%. [Usually: less than 1%]
24

Make sure to express the
Ideal situation,
EX1. Julie Case
Current situation
and Problem in
Ultimate Goal
as concrete as possible
terms.
Staff members produce
high-quality cars
Ideal Situation
The exterior scratches on the vehicles

should be less than 1%
Current Situation
Problem
3 % increase in
scratches found
on vehicles
The exterior scratches on the vehicles

have increased to 4%
25
Step 2: Break Down theParticipants

Problem tend to get stuck
8 STEPS
Step 1.
Clarify the Problem
Step 2.
Step 3.
Target Setting
Step 4.
Root Cause Analysis
Step 5.
Develop
Countermeasures
at Step 2, so repetitively
emphasize
the
importance of
1.Clarify the Ultimate Goal
of your responsibilities
& work
2.Clarify the Ideal Situation of your work the Step 2
PROCESSES
GENBUTSU
Lead the participants to think what

would happen if the break down is
NOT enough:
1) Could reach to the wrong or
many root causes
2)through
It will
be difficult to know the
2. Based on facts gathered
GENCHI-GENBUTSU,
keep asking Why?
effect of each countermeasure
3) Cannot get continuous
sustainable
1. Consider as many potential
countermeasuresresults
as possible
26
Step 2: Break Down theEmphasize

Problemthe importance of
break down again.

Stepand
2 isclarify
to Break
down a
~ Based on facts, break down the problem
objectives~
large or vague problem and
sort into smaller and more
Large / Vague Problem
Break down
concrete problems.
what? where? when? who?
Problem
Problem
Problem
Break down
Prioritize
Problem
Problem
Problem
Problem
Problem to
Tackle
Problem
Problem
Problem
the problem to
Pursue
Confirm facts through
checking the processes
(GENCHI GENBUTSU)
Point of
Cause
27
Step 2: Break Down the Problem

We should ask what, where,
Make sure
when and how, but
the division
NEVER ASK WHY!!!!!
Step
2
(1).
Break
Down
the
Problem
points are
MECE
Large / Vague Problem
Break down
Think in
what? where? when? who?
Problem
And try to start

thinking from
relevant
Problem division
Problem
points
Problem
Problem
Break down
Prioritize
Problem
Problem
Problem
Problem
Problem
the problem to
Pursue
28
After break down, prioritize

and decide which problem to
Step 2 (2). Select the problem to pursue
pursue
Problem
Problem
Problem
Problem
Priority Items
How to select the problemby

to thinking
level of
pursue from this point?
importance,
Urgency,
Level of Importanceand potential
for expansion.
Level of Urgency
Potential for Expansion
Is this enough to proceed to the next step???? No!

29
Step 2: Break Down the Problem Emphasize that
every job has a

process.
Step 2. (3) Specify the point of cause by checking the
process through GENCHI GENBUTSU
Problem to
Tackle
Point of
Cause
Where does the problem occur?
GENCHI
GENBUTSU!!!!
Check the process
through GENCHI
GENBUTSU
30

EX1. Julie Case <Step2 (1)>
Try to use actual examples to

explain each procedure.
WHERE are most of the scratches are found?
At WHAT TIME are the cars with scratches made?

Afternoon
31
Use actual examples to

EX1. Julie Case <Step2 (3)>
explain each procedure.
Go & see the process. Which process? Where?

Problem to Tackle
Point of
Cause
Julie found
the
scratches
thru genchi
genbutsu
Assembly (Job) Flow

Go back to 3 and observe
Track back
Observe
Can NOT see
3
Track back
Observe
Can see
Track back
Observe
Can see
32
Step 2: Break Down theEmphasize

Problemthe importance of
EX1. Julie Case
being specific.
This gives us a very focused
mission.
Problem to tackle:
Many scratches of the vehicles produced in
the afternoon, which are found on the bottom
part of the left doors, are made in the Section
3 in the assembly line.
33
Step 3: Target Setting

8 STEPS
Step 1.
Clarify the Problem
Step 2.
Step 3.
Target Setting
With enthusiasm and

commitment,
set challenging
PROCESSES
realistic
1.Clarify the Ultimate Goal of yourbut
responsibilities
& work output
2.Clarify the Ideal Situationmeasurement
of your work
guidelines.
GENBUTSU
Step 4.
Root Cause Analysis
keep asking Why?
Step 5.
Develop
Countermeasures

34
Avoid writing what to do for

With enthusiasm and commitment,
the target.
set challenging but realistic output measurement guidelines

Target
Are we contributing to
the Ultimate Goal?
How Much?
Is it quantitative, detailed
and challenging
enough?
By When?
It is important to
clearly state how
much and by
when.
Problem to Tackle
Raise your ability of

setting a
challenging target.
(1) Make the commitment

35

Emphasize this point!
Step 3 (2). Set measurable, concrete, and challenging targets
Sufficient & efficient breakdown will let us set targets that are measurable
Write targets in an output form including by when and how much
concrete targets
Challenging targets let us grow in the long-term
Set the target which will tackle the problem

at the (Point of Cause)
and by solving this, you can
contribute to the ultimate goal.
36

<Target>
Note: How much and by

when.
By the end of this month, eliminate all

scratches on the bottom part of the left doors
of the vehicles produced in the afternoon in
the Section 3.
<Problem to Tackle>
Many scratches of the vehicles produced in
the afternoon, which are found on the bottom
part of the left doors, are made in the
Section 3 in the assembly line.
37
Step 4: Root Cause Analysis

8 STEPS
Step 1.
Clarify the Problem
Step 2.
Step 3.
Target Setting
YouPROCESSES
can now think about WHY
here!
1.Clarify the Ultimate Goal of your responsibilities
& work
GENBUTSU
Step 4.
Root Cause Analysis
keep asking Why?
Step 5.
Develop
Countermeasures

38

The 4M can be used as a
starting point in asking why.

In order to clarify the root cause,
thoroughly investigate the process involved
Continue to
ask why
Problem to Tackle
Cause
Confirm facts. If theres no

cause-and-result sequence
in the cause, stop asking
WHY?
WHY?
Cause
Repeatedly ask WHY?
Cause
Cause
Root Cause
Countermeasure
(1) Consider causes by imaging the actual situation where the problem occurs
(2) Based on facts gathered through GENCHI GENBUTSU,Every
keep asking
timeWhy?
you repeat
(3) Specify the root cause
why, do Genchi Genbutsu

to confirm.
39

Problem to Tackle
Cause
Cause
Cause
Checklist
Look at the causes horizontally on the tree
Check for thoroughness and non-redundancy.
Cause
Root Cause
Do not allow root causes to be easily defined by a human factor

ie: attitude and motivation.
Look at the causes vertically and check for causal relationships
Ask: X happens because of Y
Make sure there is a cause
Y happens because of Z, etc
and effect relationship.
40

EX 1. Julie Case: Start with
WHY
Never claim the root cause as

someones poor attitude.
Many scratches of the vehicles produced in the

afternoon, which are found on the bottom part of the
left doors, are made in the Section 3 in the
assembly line.
GENCHI GENBUTSU
Staff
Staffs abilities
are poor
Machine
Staffs work
methods are not
appropriate
Work
instructions
are poor
Work clothes are

inappropriate
Environment
Facilities are
not
appropriate
= Staff (Johns) belt

buckle scratched
vehicles!
41

EX2. Mr. Ohnos Robot Case
Welding Robot stops in the middle of its operation
Why did the robot stop?
A fuse in the robot has blown
Why is the fuse blown?
Circuit overloaded
Why is the circuit overloaded?
The bearings have damaged one another and locked up
42
Reinforce that there is only

EX2. Mr. Ohnos Robot one
Caseroot cause for one
problem to tackle.
Why have the bearings damaged one another?

There was insufficient lubrication on the bearings
Why was there insufficient lubrication on the bearings?
Oil pump on robot is not circulating sufficient oil
Why is the pump not circulating sufficient oil?
Pump intake is clogged with metal shavings
Why is the intake clogged with metal shavings?
No filter on pump intake (as designed) (Root Cause)
43
Step 5: Develop Countermeasures

8 STEPS
Step 1.
Clarify the Problem
Step 2.
Step 3.
Target Setting
PROCESSES
1.Clarify the Ultimate Goal of your responsibilities & work

GENBUTSU
Step 4.
Root Cause Analysis
keep asking Why?
Step 5.
Develop
Countermeasures

44

Broadly considering all stakeholders and risks involved,
develop countermeasures with the highest added-value
Proposal
Proposal
What are the
risks involved?
Proposal
Countermeasure
Proposal
Root Cause
Can We
Get Rid of it?
Stress to broadly
consider
countermeasures.
Proposal
What people
or parties
are involved?
Framework of
Preconceived Ideas
Framework
of own Responsibilities
Proposal
Proposal
(1) Develop as many countermeasures as possible

45

(2). Narrow down the countermeasures
to the most practical and effective
Not all countermeasures
Establish priorities with respect to:
should be taken.
Benefits
Choose the most effective
Manpower / Cost
ones by considering these
Risks
criteria.
Contents
Target
Dept.
Manager
Category
Total # of
vehicles +
Key model
types
Overall
Assessment
How to
Summarize
Distribution
Effectiveness
Budget
Risk
Graph+ Charts
Paper
- Guaranteed to be
seen
- Can be carried
anytime
No problem if
the target is only
directors
How to distribute
when not available
in the office
Internet
-Doesnt check internet

-Overburdened with
materials already
No budget
required
How to distribute
when not in the
office
46

Explain that both Temporary
Measures and
Countermeasures are
important.
Temporary Measures
vs.
Countermeasures
The Fire Case can be used to
explain the difference.
47
Step 6: See Countermeasures Through

PROCESSES
8 STEPS
Step 6.
See
Countermeasures
Through
Step 7.
Monitor Both
Step 8.
Processes

involved members.

48
Step 6: See Countermeasures Through

Teamwork, - Coordinated and speedy implementation reporting,
informing, and
consulting are all
Persistent & Confident
important.
Implementation
Proper
Checking
Timely Reporting
Informing
Consulting
Speedy &
Smooth
Coordination
(1) Quickly and as a team, implement countermeasures

(2) Share progress by following the correct reporting, informing, and
consulting communication procedures
(3) Never give up, and proceed to the next step quickly
49
Step 7: Monitor Both Results & Processes

PROCESSES
8 STEPS
Step 6.
See
Countermeasures
Through
Step 7.
Monitor Both
Step 8.
Processes

involved members.

50
Step 7: Monitor Both Results & Processes

- Evaluate both results and processes and learn from both success and failure What was
the process?
What was
the result?
In terms of the goal, how was the outcome?
Note that value

both results and
process.
Assessment
Assessment
From
From the
the
Customers
Customers
Viewpoint
Viewpoint
From
From Toyota
Toyota
the
the Companys
Companys
Viewpoint
Viewpoint
Assessment
From
FromYour
Your
Own
Own Personal
Personal
Viewpoint
Viewpoint
(1) Evaluate the overall results, and the processes used, then share the evaluation with
involved members
(2) Evaluate from the three key viewpoints: Customers, Toyotas, and Your Own
(3) Understand the factors behind the success or failure
51
Step 8: Standardize Successful Processes

PROCESSES
8 STEPS
Step 6.
See
Countermeasures
Through
Step 7.
Monitor Both
Step 8.
Processes

involved members.

52

- Establish the successful process as precedent, and continue to
raise the standard level of successNew Ideal Situation
Successful cases: standardize.

Failure case: kaizen
Both cases: value the process.
Own work &

Responsibility
Overall
Company
KAIZEN
Standard
ization YOKOTEN
KAIZEN
Standard
ization YOKOTEN
Success
Implementation
Standard
ization
Repeat PDCA until success

is achieved, then Standardize
Failure
(1) Structuralize the successful processes (Standardize)

(2) Share the new precedent through YOKOTEN
(3) Start the next round of KAIZEN
53

Society and Our Customers
TOYOTA
Toyota
Members
Business
Partners
Ourselves
54
Thank you!
55
Roll Playing
Prepare for Step 1 presentation

individually (for 20 min) using the
given power point.
56
Roll Playing
Present for 5 minutes each within

your group and make comments
each other.
57

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How to Teach TBP Steps

TOYOTA BUSINESS PRACTICES

Emphasize that TBP is a

Combining our efforts and attaining

Achieving long-term prosperities

Personal growth and accomplishment

By practicing TBP, we can

The satisfaction of steady company growth and prosperity

Combining our efforts and

Mutual trust through

Toyota Global Content

1. Toyota Way 2001

TBP can be used in any

Practice the Toyota Way

Toyota Business Practices

Toyota Way 2001

Philosophical Value and Beliefs

TOYOTA BUSINESS PRACTICES

1. Overall Image of TBP

1. Clarify the Problem

Always Confirm the Purpose

Ownership and Responsibility

2. Break Down the Problem

4. Root Cause Analysis

Drive & Dedication

7. Monitor Both Results

Follow Each Process with

Sincerity and Commitment

2. Drive & Dedication

Explain that all the D&Ds are

2. Drive & Dedication

Try to make your participants

2. Always Confirm the Purpose of

2. Drive & Dedication

2. Drive & Dedication

AGAIN, emphasize that

1. Consider as many potential countermeasures as possible

1. Quickly and as a team, implement countermeasures

1. Structure the successful processes (Standardize )

4. Definition of Problem in Toyota

What does Problem mean to you?

4. Definition of Problem in Toyota

4. Definition of Problem in Toyota

By visualizing the problem

4. Definition of Problem in Toyota

Event Type of Problem

This is the basic

5. Concrete Actions & Processes

Toyota Business Practices (TBP)

Step 1: Clarify the Problem

1. Breakdown the problem

Step 1: Clarify the Problem

Step 1: Clarify the Problem

Explain that the ultimate goal

The Goals That

To provide customers with highly functional and high-quality

To build the most To acquire the best

Create Sales &

The Ultimate Goal of your

Step 1: Clarify the Problem

think the process through.

Julie is supervising the assembly line which equips auto parts to

Step 1: Clarify the Problem

The exterior scratches on the vehicles