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i n Toyota

r i n ci p l e s
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ation Of D
Applic
DWA R D D E MI N G
DR. W. E
Dr. W. Edwards Deming is known as the father of the
Japanese post-war industrial revival and was regarded by
many as the leading quality guru in the United States. He
passed on in 1993.

He was invited to Japan at the end of World War II by


Japanese industrial leaders and engineers.

Deming's business philosophy is summarized in his famous


"14 Points," listed below.

But the 14 Points pose a challenge for many firms to figure out
how to apply them in a meaningful way that will result in
continual improvement.
In April 2001 the Toyota Motor Corporation adopted
THE TOYO
TA WAY

the “Toyota Way 2001,” an expression of values and


conduct guidelines that all Toyota employees should
embrace.

The 14 Principles of the Toyota Way is Toyota's


management philosophy as described by external
observers of Toyota.

 The main ideas are to base management decisions on


a "philosophical sense of purpose", to think long term,
to have a process for solving problems
u g ht Toyota ?
W hat Deming Ta
 Dr. W. Edwards Deming’s principles support the global success of
Toyota.

Toyota applied Deming's ideas to create a management system and


continued to develop that system to create the Toyota Production
System (also known as lean manufacturing).

His teachings are essential for the effective application of Six Sigma,
Lean Manufacturing, Loyalty/Net Promoter and other quality
improvement, customer retention and business growth methods.

Dr. Deming helped Toyota—and other leading Japanese exporting


companies—develop the vital management philosophy and
practices that enabled them to become market leaders around the
world.
Dr. Shoichiro Toyoda, Chairman and former President
(1982-1999) of Toyota said,
“Every day I think about what he meant to us. Deming is
the core of our management”.

Toyota Motor Corporation in 1965 were awarded the


Deming Application Prize….
 Toyota continued to implement Dr. Deming's teachings,
they are able to both raise the level of quality of our
products as well as enhance operations on the corporate
level.
Toyota Motor Corporation today is a result of their
continued efforts to implement positive change in the
pursuit of Deming prize.
r oduc ti on System
Toyota P
Just-in- time production –
 It was thought out to convert this ideal state into
practical one everywhere, between each operation, each
process, each line and each shop.
Just-in-time (JIT) is an inventory strategy that strives to
improve a business's return on investment by reducing in-
process inventory and associated carrying costs.

Jidoka-
 It means that whenever an abnormal or defective
condition arises, machines, equipment or general
conveyor lines can be supported by the judgment of
these machines, equipment and line workers
themselves.
How Toyota motors implemented TQM?
TQM comprises four process steps

Focuses on Continuous Process Improvement, to


make processes visible, repeatable and measureable

Focuses on intangible effects on processes and ways to


optimize and reduce their effects

Examining the way the user applies the product leads


to improvement in the product itself
Broadens management concern beyond the
immediate product
Employee Education
In order to raise employee's awareness regarding social
contribution activities and to encourage their proactive
participation in volunteer programs.

Toyota Industries provides employees with educations to


deepen the understanding of corporate social
responsibilities and social contribution activities through
training opportunities such as newly hired employees
training and newly appointed manager training.
In order to support our employees' voluntary
participation in social contribution activities, lectures and
learning courses are provided to all employees through
the company intranet.

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