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When TSSC took up a section of a US<br />

company which was well-known for its lean<br />

practices and processes and applied TPS,<br />

unprecedented improvements were<br />

observed. This shows the extent to which the<br />

corporate world misunderstands the concept<br />

of lean manufacturing. Lean practices are<br />

not just a set of tools like 5S and just-in-time<br />

but an entire system that must be inculcated<br />

in the very culture of the organization.<br />

Part 2 explains the 14 principles of the<br />

Toyota Way identified by Dr. Liker. These<br />

principles drive the tools and techniques of<br />

the TPS and Toyota’s management.<br />

The 14 principles have been divided into<br />

four sections:<br />

1. Long-Term Philosophy<br />

2. The Right Process Will Produce the<br />

Right Results<br />

3. Add Value to the Organization by<br />

Developing Your People and<br />

Partners<br />

4. Continuously Solving Root Problems<br />

Drives Organizational Learning<br />

Toyota Way principles would lead to shortterm<br />

and unsustainable jumps in the<br />

performance measures.<br />

Part 3 focuses on how other organizations<br />

can use these principles and study TPS to<br />

bring improvements in their own businesses.<br />

A separate section has been devoted for the<br />

application of the Toyota Way to services<br />

industries.<br />

The terminology surrounding lean processes<br />

and tools have been widely used over the<br />

decade, but “The Toyota Way” suggests that<br />

most of the usage has been misleading or at<br />

least incomplete. Besides, Dr. Liker has laid<br />

emphasis on the application and success of<br />

Toyota’s principles in the services industry,<br />

which is highly relevant given the boom in<br />

this sector in the last two decades. The<br />

Toyota Way is an eye-opener for any<br />

manager or management student and has the<br />

potential to turn around the way one thinks<br />

of business.<br />

The above sections also display the base of<br />

their respective principles. Using a variety of<br />

TPS tools while following only a few of the<br />

QUICK FACT<br />

Long before Detroit became renowned for the production of automobiles, the city had earned a<br />

national reputation for the manufacturing of cigars and chewing tobacco. Tobacco companies<br />

were among the city's leading employers at the turn of the twentieth century, employing more<br />

than 10,000 people. In the mid-1920s, it was estimated that 210 million cigars and 14 million<br />

pounds of chewing tobacco were produced in Detroit each year.<br />

32<br />

NOVEMBER 2012

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