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THE TOYOTA WAY

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As we have built our new organisation, Toyota Material Handling, we have introduced the Toyota Way as our common set of values – chosen to reflect a good match between the values of the two merging cultures, BT and Toyota. A culture based on the Toyota Way means openly taking responsibility for your actions, being engaged and expressing your opinion, showing respect for the individuals around you and striving for continuous improvement. It is now time to think about how we turn these values into actions in our daily life at Toyota Material Handling. If each of us follows these values, both personally and as a team, I am convinced our company will succeed at being an honest business partner and a first choice for our customers. We have asked colleagues around our organisation to give some examples of what the Toyota Way values mean to them and how they put these values into practice in their daily work. A number of their responses are collected here and we hope this brochure will be a tool in your ongoing reflections and discussions on the Toyota Way.

President, Toyota

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Håkan Dahllöf Material Handlin g Europe

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CONTINUOUS IMPROVEMENT

Challenge | p.6

Kaizen | p.8

Genchi Genbutsu | p.10

THE TOYOTA WAY The Toyota Way is an ideal, a standard

the company delivers to customers, share-

The concepts that make up the Toyota Way

improve our business by putting forth our best

and a guiding beacon for the people of the

holders, associates, business partners

transcend language and nationality, finding

ideas and efforts. We respect people, and

global Toyota organization. It expresses the beliefs and values shared by all of us. The Toyota Way is based on the Guiding

and the global community. The Toyota Way defines how the people of Toyota perform and behave in order to deliver

application in every land and society. The Toyota Way is supported by two main pillars. They are ‘Continuous improvement’

believe the success of our business is created by individual efforts and good teamwork. All Toyota team members, at every level, are

Principles at Toyota which define the mission

these values. It functions as the automatic

and ‘Respect for people’. We are never

expected to use these values in their daily

of Toyota as a corporation and the values

nervous system for Toyota organizations.

satisfied with where we are and always

work and interactions.

RESPECT FOR PEOPLE

Respect | p.12

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Teamwork | p.14

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Creating Value through Manufacturing and Delivery of Products and Services We believe that our fundamental mission is to contribute to the economy and society through creating value, mainly by manufacturing high-quality products and providing related services. We make possible improvements in global living standards by utilizing human, financial and material resources in ways that make productivity greater and add value, benefiting both our company and our host communities. The production of goods and services with high added value enhances personal growth, and the benefits to science, technology and advanced knowledge promote greater social advancement. Competition further improves our organization and its ability to add more value.

Spirit of Challenge

Long-range perspective

Spirit of Challenge; a drive for Progress

Foresight and Long-range Projection

We accept challenges with a creative spirit and the courage to realize our own dreams without losing drive or energy. We approach our work vigorously, with optimism and sincere belief in the value of our contribution.

Current trends are assessed in light of a long-range vision of as much as ten years.

A Sense of Self-respect and Self-reliance, and the Acceptance of Responsibility We strive to decide our own fate. We act with selfreliance, trusting in our own abilities. We accept responsibility for our conduct and for maintaining and improving the skills that enable us to produce added value. The Acceptance of Competition We welcome competition, knowing that we will learn from the challenge and become stronger because of it. We demonstrate respect for our competitors and fairness in the competitive contest, even as we maintain our fighting spirit and our will to win.

Long-term planning Based on Facts and a Realistic View Long-range plans are built from facts and actual events, and provide for flexibility to accommodate changing situations

Thorough Consideration in Decision-making Focus on Concrete Proof / Exhaustive Due Diligence Actions are undertaken only after thorough study and testing to determine what must be done. Risk Taking Decisions are made within an awareness of risks, contingencies and available hedging methods. Prioritization Priorities are established and resources concentrated for the greatest possible outcomes. Total Optimization Decision-making is oriented toward improvement and optimization as a whole company, with barriers between functions and organizations removed. When issues arise among divisions, decision-making is facilitated by cross-divisional project teams or upper level management.

CHALLENGE

To maintain a long-term vision and meet all challenges with the courage and creativity needed to realise that vision.

Hans Van Leeuwen

Kristin Einarsdottir

“The long-term vision of Toyota Material Handling can only be realised by overcoming the short-term, everyday challenges we face. In Sales, these short-term challenges are to get the trucks sold, one by one.

“Challenge is what makes my day fulfilling and fun. And when I push myself to the limits to manage and solve new tasks, it’s something that gives me not just satisfaction but a feeling of self-confidence – I develop as both an employee and a person along the way.”

Vice President Sales and Services

Toyota Material Handling Norway

A great deal of hard work – visits, demonstrations, quotations and negotiations – go into making that happen every time. Each individual truck sale is a small step towards success. And we can only meet those daily challenges by encouraging creativity – so that we can offer solutions to customers that are not just about the sale of a truck, but that also offer added value to the customer’s operations and distinguish us from our competitors. So every daily challenge takes determination, courage, creativity, focus and intelligence. But taking on and overcoming these challenges is what finally adds up to maintaining the long-term TMHE vision.”

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CHALLENGE

Henning Norman Jensen

Toyota Material Handling Danmark “As a service technician, the challenge of my job is the thing I find most rewarding about doing it. It’s the satisfying feeling that, along with the salesmen in the district, my work is something that helps ensure Toyota Material Handling is seen as the undisputed number one by our customers in Denmark.”

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Kaizen Mind and Innovative Thinking

Building Lean Systems and structure

Promoting Organizational Learning

Relentless Efforts for Continuous Improvement

Pursuit of Profit Based on Cost Reduction

We share a common understanding of actual conditions by using visual control tools.

We are relentless in our pursuit of improvement, never easily satisfied, constantly making improvement efforts and steadily encouraging innovation. Soui Kufu (Individual Creativity and Innovation) / Benchmarking We search for outstanding ideas inside the company and in the larger business community, regardless of their authorship, and investigate them thoroughly. Benchmarking is used to measure Toyota’s accomplishments against those of other leading companies. Search for Breakthroughs / Elimination of Taboos We continue to search for breakthroughs, refusing to be restrained by precedent or taboo.

KAIZEN

Elimination of Muda (No Value Added), Mura (Unevenness), Muri (Beyond Capability) Eliminate al kinds of waste and every activity that does not produce added value. Regard for Next Processes / Just-in-time We regard the next processes as our customers and provide them with the required amount and quality of goods and services on a timely basis.

Learning from mistakes We view errors as opportunities for learning. Rather than blaming individuals, the organization takes corrective actions and distributes knowledge about each experience broadly. Learning is a continuous company-wide process as superiors motivate and train subordinates; as predecessors do the same for successors; and as team members at all levels share knowledge with one another. Standardization, Yokoten (Leveraged Transfer), and Establishment of Success Successful practices are adopted as standard and then transferred, spread and entrenched in the organization to leverage their effect.

Revealing problems / Jidoka Problems are revealed promptly and honestly in order to facilitate swift solutions and the placement of correct countermeasures. Authority for the identification and correction of problems is placed in the activities closest to the work and to the customer.

Continuous improvement. As no process can ever be declared perfect, there is always room for improvement.

José Maria Gener

Håkan Schill

Toyota Material Handling España

Vice President Supply “Why is kaizen so powerful? Because it concentrates our minds on the value of finding solutions to problems that, on their own, would otherwise seem small and unimportant. But when we add all those daily improvements together and multiply by the number of days in the year, we find we have made very large improvements overall. For example, we solve small problems in our workflow every day at our morning meetings. That simple process, along with similar ones, has helped us reduce faults and disturbances in production by two-thirds in less than two years. And that means we have contributed to higher quality for our customers. So with continued improvements, I am sure we will be able to look back in another year’s time and see that we have achieved even more. That’s kaizen.”

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Toyota organizations are structured to yield the top quality and efficiency that achieves the highest profit at market prices. Cost Control and costreduction efforts are never ending.

Shared understanding of conditions

KAIZEN

“Kaizen means that we don’t have to wait until something is wrong to start working on it. Everything can be improved and our challenge is to have our minds open and to always ask ourselves if there is a better way to do things. Working in that manner can only lead to great pride for our people.”

Beate Hank

Toyota Material Handling Austria “In my 20 years working for Toyota, our values have remained constant – and, today, kaizen is still a key part of our daily business in Austria. Together, we are constantly looking how to improve our workflow, our performance, and our cooperation, and always with one aim: To be the first choice for our customers. And that is truly a never-ending goal.”

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Genchi Genbutsu

Effective Consensus Building

Grasp Problems and Analyze Root Causes

Emphasis on Consensus

Problems arising from variances between goals and current situations are explored until their root causes are found by means of first-hand investigation.

We seek full consensus with members of our own groups and with those from other Toyota organizations. This is in preparation for practical, effective and smooth implementation of solutions without obstacles or conflict.

Thorough Confirmation of Facts

Goals and quantitative objectives are shared, and any variances between goals and performance are explained thoroughly to avoid misunderstandings.

We recognize that full understanding of situations and problems requires extensive and the gathering of all relevant quantitative and qualitative facts with Genchi-Genbutsu: go to the first-line and see for ourselves. Early Study Studies are commenced early; the widest range of options is considered in designing countermeasures.

Sharing of Goals / Quantitative Objectives

Emphasis on Process As goals are established through consensus building, the processes to be adopted to reach them are defined as well through Hoshin Kanri process.

Commitment to Achievement Commitment to Action / Straightforwardness We take action decisively in order to produce results. We neither gamble impetuously nor waste time on the endless discussion of possibilities. We seek a measured, steady pace toward decision making that result in timely action without the needless risk of hasty choices. Achievement in Single Thrust Once a decision is made, concerted efforts are made for intensive action to meet deadlines. Pursuit of Complete Achievements / Constant Problem-solving To achieve a goal, we follow up progress with the PDCA method and work persistently to eliminate obstacles.

GENCHI GENBUTSU Jonas Tornerefelt

Michael Lambert

“Customers are at the centre of our existence. Our goal is to understand, meet and even exceed their expectations.

“For me, Genchi Genbutsu can be translated as: Going by yourself to the one place where you can understand a problem or a situation – so that you can see it up-close and thereby make better decisions.”

So when planning and developing new products, we go to the source many times, listening to customers’ needs. We analyse our product line-up both with customers and our own sales and service organisation. For us, that is the best possible basis for product improvements and is the foundation for the plan that guides our model renewal.

Isabella Rashed

When developing new models, we gather input through customer surveys, product clinics, sales and service reference teams, and prototype-testing with customers. And it is getting this range of input that is vital for us in balancing all our goals – performance, quality, serviceability, product cost and cost of ownership.”

“Genchi Genbutsu is put into practice through continuous discussions, improvement work, and by simply going out and learning the facts in order to improve our understanding. It is this philosophy that means we are constantly active within our department as well as in our improvement groups.”

TMHE Supply Ancenis

Vice President Product Planning

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Going to the source to find the facts to make correct decisions, build consensus and achieve goals.

GENCHI GENBUTSU

TMHE Supply Mjölby

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Respect for Stakeholders

Sincere Communication

Our Company owes its existence to the support and satisfaction of customers, stockholders, employees, business partners and host societies who derive benefits from the added value Toyota provides. Our continued success depends on providing ever greater satisfaction of customers by placing their interests ahead of all others.

Openness and Acceptance of Differences We honour the laws, traditions, ceremonies, symbols and observances of all the world’s cultures. As global citizens, we demonstrate respect for other cultures and welcome the contributions of people of all races, faiths and beliefs. Diversity, one of Toyota’s main strengths, draws on the varied talents of people with diverse customs, education, training and work habits. Fairness and Willingness to Listen

Mutual Trust and Mutual Responsibility We must trust our team members, provide opportunities for personal growth, foster the realization of their abilities, and compensate fairly all individual contributions. Team members must exercise their abilities and take responsibility for improving the Company and contributing to its results and growth.

We treat all others fairly. We listen attentively to all rational opinions, including those that differ with our own. Self-expression, Self-confidence, and Individual Initiative We express our convictions and encourage the involvement of others through sincere persuasion. We undertake initiative and demonstrate confidence in our judgement and abilities. Accountability We accept responsibility for working independently, putting forth honest effort to the best of our abilities and always honouring our performance promises.

Toyota produces steady improvements in working conditions and opportunities for growth, personal development and job satisfaction. Individuals share responsibility for helping to produce results, determining their job and career paths, and improving their abilities. Individual efforts are evaluated fairly, with compensation based on the Company’s business performance and the contribution of the associate.

RESPECT Andrew Elliot

Executive Vice President Marketing “Respect is at the heart of our customer service values and consists of four key elements: listening, empathising, control and free choice. Good service is only possible when we listen to our customers to understand their real needs and offer them the right solutions. Empathy is where we go a step beyond that – sharing in customers’ goals and making their requirements our own. Our authority to serve comes from the customer. Whatever the service or solution we offer the customer always has the final decision. And that means customers have the right to choose the relationship with us that best fits their business, from selected supplier to full partner. All our contact with the customer should always be with professional expertise but never arrogance.”

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Toyota respects others, makes every effort to understand others, accepts responsibility and does its best to build mutual trust.

Jarno de Waal

Toyota Material Handling Nederland “Respect is the foundation of great cooperation. And cooperation is important not just with customers but also with colleagues – it is the key for working in a company of which you can be proud. Respect is necessary for encouraging mutual understanding and personal development – and when you develop your people, you have a developing company.”

Francesca De Gobbi TMHE Supply Bologna

“I think of respect as being the link to acquiring knowledge and new points of view. Respecting the people you work with makes you willing to learn from everybody and every situation. And respect is essential for good teamwork, allowing you to multiply everyone’s value and allow the unique approaches of each person to contribute to a shared aim.”

RESPECT

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Commitment to Education and Development

Respect for the Individual; Realizing Consolidated Power as a Team

Team Member Development

Respect for Humanity and Creativity

Learning is a continuous, company-wide process as superiors motivate and train subordinates; predecessors do the same for successors; and team members at all levels share knowledge with one another. Every team member should be motivated to learn for his or her own development.

We believe each individual has the creative power for the independent achievement of his or her personal goals. We respect the values, abilities, way of thinking and motivation of all team members.

Thoughtful Leadership Leaders have the ability to energize and invigorate others, willingly giving realistic challenges and development opportunities and fostering a sense of accomplishment in subordinates. Thoughtful leaders monitor individual and team performance, holding people accountable for their actions and taking responsibility for their activities.

Mutual Contributions with Emphasis on Individual Creativity and Teamwork We bring all team members together to share values in a team whose results exceed the total achievements of the individuals. Through coordination and collaboration, the contribution of the team is greater than the sum of its members.

Development through Delegation We trust our team members and have confidence in their ability to originate ideas, create opportunities and find solutions. We value the savings in time and effort made possible by investing authority, responsibility and accountability in other individuals.

TEAMWORK Nick Duckworth

Vice President Logistics

Zita Major

TMHE European Key Accounts

“Individual performance is undoubtedly critical to the success of Toyota Material Handling. But effective teamwork is the really powerful tool that ensures Toyota outperforms its competitors.

“Teamwork, for me, is the key to the whole process of business decisions: Working together towards a given goal; having the confidence to share ideas for solutions; listening to each other; and then following the mutually agreed decisions, while still respecting one another as individuals.”

People are at the forefront of our Logistics organisation and we can see where the power of teamwork has delivered industry-leading performance in quality and service. The synchronisation of purchasing, storing, picking, packing and transporting goods requires a real team effort – because it’s only by acting together that we are really able to deliver service excellence.

Tony Ageneau

Empowering, motivating and educating our colleagues – combined with sharing responsibilities, helping each other solve problems, and acting as one team irrespective of geographical and organisational boundaries – will help ensure Toyota Material Handling is the first choice partner for material handling solutions.”

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Toyota stimulates personal and professional growth, shares opportunities for development and maximises individual and team performance.

TMHE Technical Training “The importance of teamwork is really highlighted during our technical training when, in small groups, technicians troubleshoot the machines. You find that each member of the group contributes to the task in their own way, according to their skills, experience and personality – and that the best solution comes when the team brings all those approaches together effectively.”

TEAMWORK

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