GLOBAL CONTENTS Toyota Institute

1. GLOBAL CONTENTSToyota Institute

2. What are the Global Contents? Most Fundamental & Important Practice for all Toyota People Globally "Common Language" 　　 to practice the Toyota Way. Any country,Any function, Any job title

3. VIDEO Former President & Chairman Cho’s Message

4. Questions Individually, find an answer to these questions (you will receive an answer sheet) • How was Cho-san developed? • According to Cho-san, what does the ideal workplace look like? • How can TBP support your company in achieving its goals?

5. In a sense, I believe there are two major roles (1) yield excellent performance through teamwork and (2) enhance human resources development. Human Resources Development Maximum Outcome Basic Role of Toyota Manager

6. Key Messages • By teamwork, maximize performance as an Organization • HR development (through the job)

7. Global Contents 1) Toyota Way 2) Toyota Business Practice 3) Hoshin Kanri (Direction Management) 4) On the Job Development (HR Development)

8. TOYOTA WAY

9. Respect for People Continuous Improvement Toyota Way Challenge Form a long term vision, meeting challenges with courage and creativity to realize our dreams. Kaizen We improve our business operations continuously, always driving for innovation and evolution. Genchi Genbutsu Practice Genchi Genbutsu......go to the source to find the facts to make correct decisions, build consensus and achieve goals at our best speed. Respect Respect others, make every effort to understand each other, take responsibility and do our best to build mutual trust. Teamwork Stimulate personal and professional growth, share the opportunities of development and maximize individual and team performance.

10. TOYOTA BUSINESS PRACTICES

11. P(S) A D C Origin of Toyota’s Strength Most Fundamental Activity TOYOTA WAY TBP

12. HOSHIN KANRI

13. P P P P P P P P P P A A A A A A A A A A D D D D D D D D D D C C C C C C C C C C Origin of Toyota’s Strength Maximum Outcome as an Organization Hoshin Kanri (Direction Management) Same Direction

14. Hoshin Kanri Company Hoshin Fiscal 2007 Company Hoshin Vertical Alignment Function Hoshin Contributing to UPPER HOSHIN Breakdown of the HOSHIN Respect for people shown by contribution to company business Division Hoshin Horizontal Alignment OJD Department Hoshin Individual Priority Themes TBP

15. S P P P P NG NG NG NG A D A A A A D D D D C C C C C Hoshin Job & Daily Job Hoshin Management Daily Management vs. Standardized Jobs with defined processes Set the Standard Continue to make improvement through small kaizen

16. DM with no HK HK with no DM P S P S S P A A A A A A D D D D D D C C C C C C Hoshin Job & Daily Job Daily Mgt with Kaizen Hoshin Performance (KPI) Time

17. Hoshin Kanri Standardization, Generation & Confirmation of annual, mid and long term plans (by Top Mgmt + all employees) PLAN Standardize the job Hoshin Development ACTION DO Hoshin Kanri = Company-wide TBP Hoshin Implementation CHECK Hoshin Evaluation Carry out scheduled plans (daily management) Review of processes and results (mid and end of year)

18. ON THE JOB DEVELOPMENT （TOYOTA OJT)

19. Why we need HR Development Maximum Outcomefrom Long-term view point. Outcome after HRD Current Outcome On the Job Development Increasing Outcome Continuously

20. P P A D D P A A D C C P C A D C Purpose of OJD Continuous growth of TBP Quality OJD OJD OJD

21. Toyota OJT Toyota History Desire to develop the Auto Industry in Japan (By Kiichiro Toyoda in 1935) Without money, equipment and resources, drastic increase in production capability was required. People’s wisdom was the only lifeline

22. Toyota Way & OJD • Respect for each employee’s ability • -People’s ability to think is boundless- • Teamwork to stimulate growth • -Development is continuous and shared- Supervisors Seniors OJD Subordinates Juniors Mutual Trust By teaching By learning Provide opportunities for personal development (Sense of achievement / Self Realization)

23. What is OJD • Definition of “OJD” Develop team members through “practice of daily work” • Objective of “OJD” Develop human resources who can self-reliantly put TOYOTA WAY into practice

24. STEP 4 Give a Sense of Achievement STEP 1 Identify Suitable Work OJD STEP 3 Monitor & Lead to Complete Work STEP 2 Assign Work 4 Steps of OJD

25. OJD in Action One of the Basic Roles of a Toyota Manager

26. Summary

27. P P P P P P A A A A A A D D D D D D C C C C C C Toyota Business Practices (Problem Solving) Global Contents Maximum Outcome Toyota Way 2001

28. Global Contents Hoshin Kanri P P P P P P P A A A A A A D D D D D D C C C C C C A D Toyota Business Practices (Problem Solving) C Maximum Outcome as an Organization Toyota Way 2001

29. Global Contents P P P P P P P P P P P P OJD A A A A A A A A A A A A D D D D D D D D D D D D C C C C C C C C C C C C Toyota Business Practices (Problem Solving) Toyota Way 2001 Maximum Outcome as an Organization in Long term Hoshin Kanri

30. P A D C P P A D A D C C P P P A D A D A D C C C Toyota’s Global Contents Long-term prosperity and growth as an organization ①Toyota Way（TW） ：Values of Toyota ⇒Basic foundation to all work Toyota Way ②Toyota Business Practices（TBP） ：Action to practice TW. ⇒Action to realize continuous achievements 　　 efficiently for all position or functions ③On the Job Development（OJD） ：Action to enhance quality of individual TBP ⇒Action to make company growth in mid-long-term ④Hoshin Kanri（HK） ：Action to realize company wide TBP ⇒Framework to maximize output as an organization. Toyota Way

31. Thank you