Appendix B
Toyota Product Development System 13 Principles and Their Cross‐Referencing
(Derived from The Toyota Product Development System: Integrating People, Process and Technology – James M. Morgan and Jeffrey K. Liker)
| No. | Principle | Description (from Morgan and Liker) | References in main body of book |
| Process | |||
| 1 | Establish customer‐defined value to distinguish value‐added activity from waste. | Waste takes the form of untimely or incorrect engineering information. |
Ch. 4 – value proposition, satisfying a range of customer needs Ch. 6 – identifying customer needs Ch. 8 – validate against customer requirements Ch. 9 – product sign‐off |
| 2 | Front‐load the product development process when there is maximum opportunity to explore alternate solutions thoroughly. | Cross‐functional collaboration is needed early in the design process to make sure that later rework, due to poor decision‐making in the early stages, is prevented. |
Ch. 2 – cost of problem resolution, early problem detection Ch. 3 – technology maturity concepts |
| 3 | Create a levelled product development process flow. | A value‐stream map should connect important milestones to decisions, information flow and critical meetings – key integrating events. |
Ch. 5 – goal‐directed management, value‐stream mapping, managing, and monitoring projects Ch. 9 – planning and decision making, flow of information Ch. 11 – working collaboratively |
| 4 | Utilise rigorous standardisation to reduce variation, and create flexibility and predictable outcomes. | This can cover a wide range of topics, including design methods, calculation and modelling methodologies, test codes, parts standardisation, and such parameters that are intended to create predictability of results. |
Ch. 7 – identifying and managing risks Ch. 8 – standard validation methods Ch. 9 – engineering delivery |
| People | |||
| 5 | Develop a chief engineer system to integrate development from start to finish. | The chief engineer is an important role for every product development programme. This is both a project leader and senior engineer in one combined role. He/she represents the voice of the customer and is responsible for the development value stream, from concept to production. |
Ch. 2 – governance of the process Ch. 5 – organising for projects Ch. 11 – leadership, selecting people |
| 6 | Organise to balance functional expertise and cross‐functional integration. | This is the challenge of integrating the chief engineer role into the organisational structure. The chief engineer is responsible for the delivery of the product and the voice of the customer. The functional manager is responsible for the development of his team members. |
Ch. 4 – linking engineering to the broader business Ch. 5 – organising for projects Ch. 9 – flow of information Ch. 11 – working collaboratively and team development |
| 7 | Develop towering technical competence in all engineers. | Toyota prefers specialists over generalists. Every engineer has to have a clear development path where he learns the specific skills needed to join a development team in a certain role, and the development paths should be standardised. |
Ch. 2 – learning cycle Ch. 7 – identifying and managing risks Ch. 8 – validation using experienced, practical engineers Ch. 11 – selecting and developing people Ch. 12 – critical thinking |
| 8 | Fully integrate suppliers into the product development system. | Companies should manage their suppliers the same way as they manage their own production. Suppliers' expertise can be very valuable to the design process, so suppliers should be involved from the earliest stages. |
Ch. 4 – industry structure Ch. 9 – examples of good & bad practice Ch. 11 –working with partners |
| 9 | Build in learning and continuous improvement. | One of the most important aspects of the project is the reflection afterwards on personal, team and project level. What did we learn? How can we improve our processes? Toyota plans three 2‐hour sessions of reflection after each project. This important part of the process is often neglected, although the ability to learn faster than competitors could be the only sustainable competitive advantage. |
Ch. 2 – learning cycle Ch. 7 – identifying and managing risks Ch. 8 – validation methods based on earlier experience |
| 10 | Build a culture to support excellence and relentless improvement. | A culture is defined by the current generation of leaders and defines which leaders will emerge next. Leaders should therefore set the example of learning and always ask about the improvements. |
Ch. 4 – linking engineering to the broader business Ch. 11 – working collaboratively |
| Tools and Technology | |||
| 11 | Adapt technology to fit your people and process. | Traditional firms act the other way around and alter their processes to fit a certain tool. A tool or technology should be integrated into a process, and should focus on specific solutions and enhancing people, not replacing them. |
Chs. 1 and 2 – impact of technology Ch. 9 – engineering delivery Ch. 13 – improving product development performance |
| 12 | Align your organisation through simple, visual communication. | There are multiple tools that can support communication between team members and between teams: Hoshin Kanri for goal alignment between departments, team boards and for development teams; Obeya for alignment between team members; A3 methods for problem solving on individual level. |
Ch. 5 – managing and monitoring projects, project mandate Ch. 12 – problem‐solving |
| 13 | Use powerful tools for standardisation and organisational learning. | Next to the checklists and trade‐off charts mentioned before, one could use decision matrixes and benchmark reports to visualise why a certain decision was made, which makes it easier to make a similar decision in the future. |
Ch. 2 – formal quality systems Ch. 7 – risk identification based on previous experience Ch. 8 – standardised validation methods Ch. 12 – problem‐solving |
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