toyota-production-system

Toyota Production System In A Nutshell

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The Toyota Production System (TPS) is an early form of lean manufacturing created by auto-manufacturer Toyota. Created by the Toyota Motor Corporation in the 1940s and 50s, the Toyota Production System seeks to manufacture vehicles ordered by customers most quickly and efficiently possible. 

TPS PrincipleExplanationExamples
Continuous ImprovementStriving for constant process enhancement.– Toyota: Improving quality and efficiency in production. – McDonald’s: Updating menu and operations regularly.
ChallengeDemonstrating courage and creativity.– SpaceX: Pioneering reusable rockets for affordable space travel. – Apple: Innovating mobile phone technology.
Genchi GenbutsuGoing to the source for informed decisions.– General Electric: Sending engineers worldwide for insights. – Honda: Conducting on-site market research.
Respect for PeopleValuing and understanding every individual.– Southwest Airlines: Prioritizing employees as a core asset. – Google: Fostering a culture of innovation.
TeamworkEncouraging personal and professional growth.– Zappos: Fostering teamwork and employee well-being. – Pixar: Collaborative teamwork in animated film production.
JidokaAutomation with a human touch for reliability.– Tesla: Implementing safe automation in car manufacturing. – Pharmaceutical Industry: Automated quality control.
Just-in-time (JIT)Producing only what’s needed, when needed.– Dell: Assembling computers upon customer orders. – Toyota Material Handling: JIT in forklift manufacturing.
Waste ReductionEliminating unevenness, overburden, wastefulness.– Amazon: Streamlining fulfillment centers to reduce waste. – Lean Healthcare: Minimizing waiting times using TPS.
Comparison with Six SigmaQuality-focused methodologies.– General Motors: Applying Six Sigma for quality control. – Motorola: Pioneering Six Sigma to eliminate defects.

Understanding the Toyota Production System

The TPS is based on underlying principles called the Toyota Way:

Continuous improvement 

Challenge

Or the courage and creativity to meet challenges and realize their long-term vision.

Kaizen

kaizen-approach
Kaizen is a process developed by the auto industry. Its roots are found in the Toyota Production System, which was heavily influenced by Henry Ford’s assembly line system. The word Kaizen is a hybridization of two Japanese words, “kai” meaning “change” and “zen” meaning “good.” Two of the basic tenets of Kaizen involve making small incremental changes – or 1% improvement every day – and the full participation of everyone. 

Or the continuous improvement of business operations.

Genchi Genbutsu

Which advocates going to the source to fact-find and make informed decisions.

Respect for people.

Respect

Every effort is made to respect and understand each other.

This means taking ownership of personal work and building mutual trust.

Teamwork

Employees must be stimulated to achieve personal and professional growth.

Opportunities for such growth should be shared throughout the organization to maximize performance.

The two core concepts of the Toyota Production System

Toyota bases its philosophy on two concepts:

Jidoka

jidoka
Jidoka was first used in 1896 by Sakichi Toyoda, who invented a textile loom that would stop automatically when it encountered a defective thread. Jidoka is a Japanese term used in lean manufacturing. The term describes a scenario where machines cease operating without human intervention when a problem or defect is discovered.

A Japanese word loosely translated to “automation with a human touch”.

For Toyota, this means that automated systems (machines) must be built and improved by hand until they are reliable and safe.

Machines built by hand to very high standards become simpler to use and less expensive to run.

This results in simple, slim, flexible, and lean manufacturing processes that are adaptable to fluctuating production volume.

Within Jidoka, there are various quality control methods, such as Andon, also defined as “intelligent automation” or “automation with a human touch”.

andon-system
The andon system alerts managerial, maintenance, or other staff of a production process problem. The alert itself can be activated manually with a button or pull cord, but it can also be activated automatically by production equipment. Most Andon boards utilize three colored lights similar to a traffic signal: green (no errors), yellow or amber (problem identified, or quality check needed), and red (production stopped due to unidentified issue).

Just-in-time (JIT)

where each part of the manufacturing process produces what is needed for the next process to facilitate continuous flow and improve productivity.

Toyota describes the JIT concept as making only “what is needed, when it is needed, and in the amount needed.”

The three categories of waste products in the Toyota Production System

In the introduction, we noted that the elimination of waste was integral to lean manufacturing at Toyota.

Waste that can potentially hinder process improvement is divided into three categories.

“Mura” 

Mura is translated as unevenness, non-uniformity, and irregularity.

When a production line work station has a higher capacity than other stations, waste in the form of overproduction and delay-causing bottlenecks occur.

Muri can be mitigated by using Kanban or Just-In-Time manufacturing to limit the accumulation of excess inventory.

“Muri” 

Muri encompasses overburden, excessiveness, unreasonableness, or something that is beyond one’s power.

Muri is evident when machines or human operators are forced to work beyond their capacity.

Machines inevitably fail, causing delays and costing money.

Overworked employees cause a lack of productivity owing to illness and absenteeism. 

“Muda” 

Muda is defined as wastefulness, uselessness, and anything that hinders the creation of value that the customer is willing to pay for.

Muda Type 1 processes do not add value directly but are required by law – such as the passing of safety tests and emissions standards.

However, Muda Type 2 processes are non-value-adding activities that are also unnecessary. 

These activities are further categorized into seven types of waste:

Transport

Or wastage resulting from the excess or unnecessary movement of people, tools, equipment, or products.

Inventory

Excess inventory can lead to an inefficient allocation of capital or occupy valuable space that could be better utilized elsewhere.

Large amounts of stock sitting idle is also prone to damage or spoilage.

Here, defects are also more difficult to detect and address.

Motion

This is wastage that results from walking, lifting, reaching, double-handling, and so forth.

Motion should be limited or redesigned to increase occupational health and safety and improve productivity.

Waiting

This includes people waiting for materials or equipment.

It also includes equipment waiting because of input delays caused by uneven production.

Overproduction

Or the manufacturing of a product or component before it has been asked for, required, or ordered.

This results in excess inventory and increases lead-time.

Over-processing

Defined as doing more work or adding more product features or steps than is necessary.

In manufacturing, this might encompass the over-engineering of a solution or adjusting a component after it has been installed.

Defects

Or products not fit for use that must be scrapped or reworked.

Both outcomes require an extra allocation of resources which reduces productivity and profit margins.

When to Use the Toyota Production System:

The Toyota Production System is applicable in various scenarios:

  • Manufacturing: TPS is widely used in manufacturing industries to improve production efficiency and quality.
  • Operations Improvement: Organizations facing inefficiencies or quality issues can apply TPS principles to enhance their operations.
  • Process Optimization: TPS can be used to optimize processes in both manufacturing and service industries.
  • Supply Chain Management: TPS principles are valuable for optimizing supply chain processes.
  • Continuous Improvement Initiatives: TPS provides a structured approach to drive continuous improvement efforts.

How to Implement the Toyota Production System Effectively:

To effectively implement the Toyota Production System, consider the following steps:

  • Cultural Transformation: Foster a culture of continuous improvement and respect for people throughout the organization.
  • Value Stream Mapping: Analyze and map the value stream to identify areas for improvement and waste reduction.
  • Standardize Processes: Establish standardized work processes and procedures to ensure consistency.
  • Just-In-Time Production: Implement JIT principles to reduce inventory and respond to customer demand more efficiently.
  • Error Detection and Prevention: Incorporate error detection and prevention mechanisms to minimize defects.
  • Employee Involvement: Involve employees at all levels in identifying and implementing improvements.
  • Training and Education: Provide training and education to ensure all employees understand and can apply TPS principles.

Drawbacks and Limitations of the Toyota Production System:

While the Toyota Production System is highly effective, it also has certain drawbacks and limitations:

  • Resource Intensity: Implementing TPS can require significant resources, including time and training.
  • Resistance to Change: Cultural transformation and employee buy-in can be challenging to achieve.
  • Not Universally Applicable: TPS may not be suitable for all industries or organizations, particularly those with unique operational requirements.
  • Complexity: The complexity of TPS can make it difficult for smaller organizations to adopt fully.

What to Expect from Implementing the Toyota Production System:

Implementing the Toyota Production System can lead to several outcomes and benefits:

  • Efficiency Improvement: Expect significant improvements in operational efficiency and reduced waste.
  • Quality Enhancement: TPS can result in higher product or service quality through error prevention and continuous improvement.
  • Cost Reduction: Reduced inventory and waste contribute to lower operational costs.
  • Employee Empowerment: TPS fosters a sense of ownership and empowerment among employees.
  • Competitive Advantage: Organizations adopting TPS often gain a competitive edge in their industry.

Relevance in Modern Business and Beyond:

The principles of the Toyota Production System have transcended manufacturing and are relevant in modern business practices, including service industries, healthcare, and software development.

Concepts like continuous improvement and waste reduction continue to influence operational excellence efforts worldwide.

Conclusion:

The Toyota Production System represents a transformative approach to manufacturing and operations, characterized by principles of efficiency, quality, and continuous improvement.

Its impact extends beyond manufacturing and remains highly relevant in modern business practices, emphasizing the importance of employee involvement, cultural transformation, and streamlined processes.

While acknowledging its resource intensity and potential challenges, many organizations continue to adopt and adapt the principles of the Toyota Production System to enhance their operations and drive sustainable success.

Toyota Production System vs. Six Sigma

six-sigma
Six Sigma is a data-driven approach and methodology for eliminating errors or defects in a product, service, or process. Six Sigma was developed by Motorola as a management approach based on quality fundamentals in the early 1980s. A decade later, it was popularized by General Electric who estimated that the methodology saved them $12 billion in the first five years of operation.

The Toyota Production System focuses on continuous improvement via just-in-time, thus becoming a holistic approach to business improvement.

Six Sigma looks and focuses primarily on reducing defects in the manufacturing process via a process of:

And the following implementation roles:

Case Studies

  • Continuous Improvement (Kaizen):
    • Toyota: Continuously improving quality and efficiency in production processes.
    • McDonald’s: Regularly updating its menu and operational processes.
  • Challenge:
    • SpaceX: Aiming to make space travel more accessible with reusable rockets.
    • Apple: Transforming the mobile phone industry with innovative products.
  • Genchi Genbutsu:
    • General Electric: Sending engineers worldwide to gather information.
    • Honda: Conducting on-site research to understand market preferences.
  • Respect for People:
    • Southwest Airlines: Valuing employees as a primary asset.
    • Google: Promoting a culture of innovation and creativity.
  • Teamwork:
    • Zappos: Fostering teamwork and employee happiness.
    • Pixar: Collaborative teamwork in animated film production.
  • Jidoka:
    • Tesla: Implementing automation with a human touch for safety.
    • Pharmaceutical Industry: Using automated quality control systems.
  • Just-in-time (JIT):
    • Dell: Assembling computers upon customer orders.
    • Toyota Material Handling: Implementing JIT principles in forklift manufacturing.
  • Waste Reduction (Mura, Muri, Muda):
    • Amazon: Optimizing fulfillment centers to reduce waste.
    • Lean Healthcare: Applying TPS principles to minimize waiting times.
  • Comparison with Six Sigma:
    • General Motors: Implementing Six Sigma for quality control.
    • Motorola: Pioneering Six Sigma to eliminate defects.

Key Highlights

  • Toyota Production System (TPS):
    • TPS is an early form of lean manufacturing developed by Toyota in the 1940s and 50s.
    • Its goal is to manufacture vehicles as efficiently as possible based on customer orders.
  • Toyota Way Principles:
    • Continuous Improvement: Striving for constant improvement in processes and practices.
    • Challenge: Showing courage and creativity to meet challenges and achieve long-term goals.
    • Kaizen: Making small incremental changes and involving everyone in the improvement process.
    • Genchi Genbutsu: Going to the source to gather information for informed decisions.
    • Respect for People: Respecting and understanding each other, taking ownership, and building mutual trust.
    • Teamwork: Stimulating personal and professional growth of employees and sharing opportunities throughout the organization.
  • Core Concepts of TPS:
    • Jidoka: Automation with a human touch; machines stop automatically when a problem is detected.
    • Just-in-time (JIT): Producing only what is needed, when needed, and in the required amount for continuous flow.
  • Waste Reduction Categories:
    • Mura: Unevenness and non-uniformity in production, causing overproduction and delays.
    • Muri: Overburdening of machines or workers beyond their capacity, leading to inefficiencies and costs.
    • Muda: Wastefulness hindering value creation; categorized into seven types of waste:
      • Transport
      • Inventory
      • Motion
      • Waiting
      • Overproduction
      • Over-processing
      • Defects
  • Comparison with Six Sigma:
    • Six Sigma: Data-driven methodology for eliminating errors or defects in products, services, or processes.
    • Toyota Production System: Focuses on continuous improvement via just-in-time and a holistic approach to business improvement

Toyota Production System vs. Lean Methodology

lean-methodology
The lean methodology is a continuous process of product development to meet customers’ needs. It was in part borrowed by the auto industry and its roots are found in the Toyota Production System, which was heavily influenced by Henry Ford’s assembly line system. The lean methodology is, therefore, an evolution from lean manufacturing, based on continuous improvement.

The lean methodology is definitely a method derived from the Toyota Production System.

Yet while the Toyota Production System is primarily skewed toward manufacturing, the lean methodology has been successfully adapted to software development via a process of lean thinking which moves along:

Continuous Innovation and Lean Startup

The whole lean manufacturing method, derived from the Toyota Production System, also led to an incredible wave of new theories around software development.

This led to lean methodology and agile.

In short, the software development industry borrowed many concepts from the lean manufacturing process, creating a framework that today is quite popular among startups.

This also led to an approach, which combines the lean and agile software development mindset with entrepreneurship, and that can be defined as continuous innovation.

continuous-innovation
That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problem and not the technical solution of its founders.

Continuous innovation is one of the main distinguishing elements between a startup and a traditional corporation.

lean-startup-vs-corporation

Key takeaways

  • The Toyota Production System is a pioneering form of lean manufacturing developed by the Toyota Motor Corporation.
  • The Toyota Production System is based on continuous improvement and respect for people. In manufacturing, it favors just-in-time (JIT) production and automation with a human touch.
  • The Toyota Production System categorizes waste into three categories: Muri, Muda, and Mura. Each category is defined by specific adjectives that clarify potential sources of process inefficiency.

Real World Applications

CompanyIndustry/ApplicationDescription
ToyotaAutomotive ManufacturingToyota, the originator of TPS, uses it extensively in its manufacturing processes to optimize production efficiency and minimize waste.
FordAutomotive ManufacturingFord implemented its version of TPS, Ford Production System (FPS), to improve manufacturing efficiency and reduce waste in its plants.
HondaAutomotive ManufacturingHonda adopted TPS principles in its manufacturing processes, leading to efficient production and high-quality vehicles.
BoeingAerospace & Defense ManufacturingBoeing applied TPS principles to its aircraft assembly processes, streamlining production and reducing lead times.
General Electric (GE)Diverse Manufacturing and ServicesGE embraced lean principles and Six Sigma methodologies in its manufacturing and operations to enhance quality and efficiency.
CaterpillarHeavy Equipment ManufacturingCaterpillar developed its Caterpillar Production System (CPS), influenced by TPS, to enhance productivity and reduce costs in heavy equipment manufacturing.
John DeereAgriculture and Heavy Equipment ManufacturingJohn Deere adopted TPS-inspired continuous improvement practices to optimize its manufacturing processes for agricultural and construction equipment.
AmazonE-commerce and LogisticsAmazon applies TPS principles in its fulfillment centers to improve warehouse operations, reduce inventory, and speed up order processing.
StarbucksFood and Beverage RetailStarbucks uses TPS principles to streamline its coffee shop operations, ensuring consistent product quality and customer service.
WalmartRetail and Supply Chain ManagementWalmart employs TPS-inspired inventory management and supply chain practices to optimize its retail operations.
IntelSemiconductor ManufacturingIntel applies lean manufacturing principles to optimize its semiconductor fabrication processes, reducing defects and improving production efficiency.
PfizerPharmaceuticals ManufacturingPfizer utilizes TPS principles in pharmaceutical manufacturing to ensure product quality, reduce lead times, and minimize waste.
Mayo ClinicHealthcare and Hospital ManagementMayo Clinic has implemented TPS-inspired principles to improve patient care processes, reduce wait times, and enhance healthcare quality.
Delta Air LinesAirline and TransportationDelta Air Lines employs lean principles to enhance aircraft maintenance, optimize flight scheduling, and improve customer service.
General MotorsAutomotive ManufacturingGeneral Motors (GM) has adopted TPS principles to enhance production efficiency, reduce costs, and improve vehicle quality.
VolkswagenAutomotive ManufacturingVolkswagen (VW) has implemented TPS-inspired practices to optimize its manufacturing processes and improve vehicle quality.
NikeAthletic Footwear and ApparelNike applies lean manufacturing principles to optimize its supply chain and production, ensuring quick turnaround times and customization.
Honda MotorcycleMotorcycle ManufacturingHonda’s motorcycle division utilizes TPS principles to produce high-quality motorcycles efficiently and reduce lead times.
Boeing Commercial AirplanesAerospace and Aircraft ManufacturingBoeing Commercial Airplanes employs TPS-inspired principles in aircraft production to enhance quality and on-time delivery.
3MDiverse Manufacturing and Innovation3M incorporates TPS principles in its innovation processes, streamlining product development and manufacturing.
Related FrameworksDescriptionWhen to Apply
Lean ManufacturingFocuses on maximizing customer value while minimizing waste through the systematic elimination of non-value-added activities.When optimizing manufacturing or business processes, reducing waste and inefficiencies, or enhancing productivity, quality, and customer satisfaction by adopting lean principles and practices, fostering a culture of continuous improvement and employee empowerment, and streamlining workflows to achieve operational excellence and sustain competitive advantage in dynamic and demanding business environments.
Six SigmaA data-driven approach for improving the quality of process outputs by identifying and removing causes of defects and minimizing variability.When seeking to reduce defects, errors, and variation in processes, improve quality and customer satisfaction, enhance operational efficiency, and achieve consistent, predictable results through statistical analysis and problem-solving methodologies.
Total Quality Management (TQM)A management approach that aims to embed quality principles and processes throughout the organization to meet or exceed customer expectations.When aiming to improve product quality, customer satisfaction, and organizational performance by fostering a culture of continuous improvement, employee involvement, and customer focus, and implementing quality management techniques such as process optimization, customer feedback mechanisms, and performance measurement systems.
KaizenEncourages small, incremental changes in processes and systems to improve efficiency and quality.When striving for continuous improvement, employee engagement, and problem-solving at all levels of the organization by implementing small, incremental changes to processes, systems, and workflows, fostering a culture of experimentation, learning, and adaptability, and addressing inefficiencies, bottlenecks, and opportunities for improvement on an ongoing basis.
Just-in-Time (JIT)A production strategy that aims to minimize inventory levels and eliminate waste by producing goods only when they are needed, thereby reducing lead times and storage costs.When aiming to reduce inventory costs, minimize waste, and improve production efficiency by synchronizing production with customer demand, implementing pull-based production systems, reducing setup times, and optimizing material flow and production processes to achieve shorter lead times, lower costs, and improved responsiveness to customer needs.
Poka-YokeInvolves designing processes or equipment to prevent errors or defects from occurring.When seeking to prevent errors, defects, and mistakes in processes and operations by implementing foolproofing mechanisms, error-proofing devices, and mistake-proofing techniques, reducing rework and waste, improving product quality and reliability, and enhancing overall process efficiency and effectiveness.
KanbanA visual scheduling system that helps manage workflow by signaling when to produce or replenish items based on actual demand.When needing to visualize and manage workflow, improve efficiency and flow, and reduce inventory and lead times by implementing a visual and pull-based scheduling system, enabling better coordination and communication between teams, and facilitating continuous improvement and adaptation to changing customer demand and market conditions.

What are the three principles of Toyota Production System?

The three core principles of the Toyota Production System comprise the three categories of waste reduction:

What are the seven types of waste in the Toyota Production System?

The seven types of waste within the Toyota Production System comprise:

What are the founding concepts of the Toyota Production System?

The two founding concepts of the Toyota Production System are:

What does kaizen stand for?

Kaizen is a process developed by the auto industry, and it is a hybridization of two Japanese words, “kai,” meaning “change,” and “zen,” meaning “good.” Two of the basic tenets of Kaizen involve making small incremental changes – or a 1% improvement every day – and the full participation of everyone. 

What is Gemba work?

A Gemba Walk describes the personal observation of work to learn more about it. Gemba is a Japanese word that loosely translates as “the real place” or, in business, “the place where value is created.” The concept was created by Taiichi Ohno, the father of the Toyota Production System of lean manufacturing.

Read Also: Continuous Innovation, Agile Methodology, Lean Startup, Business Model Innovation, Project Management.

Read Next: Agile Methodology, Lean Methodology, Agile Project Management, Scrum, Kanban, Six Sigma.

Connected Agile & Lean Frameworks

AIOps

aiops
AIOps is the application of artificial intelligence to IT operations. It has become particularly useful for modern IT management in hybridized, distributed, and dynamic environments. AIOps has become a key operational component of modern digital-based organizations, built around software and algorithms.

AgileSHIFT

AgileSHIFT
AgileSHIFT is a framework that prepares individuals for transformational change by creating a culture of agility.

Agile Methodology

agile-methodology
Agile started as a lightweight development method compared to heavyweight software development, which is the core paradigm of the previous decades of software development. By 2001 the Manifesto for Agile Software Development was born as a set of principles that defined the new paradigm for software development as a continuous iteration. This would also influence the way of doing business.

Agile Program Management

agile-program-management
Agile Program Management is a means of managing, planning, and coordinating interrelated work in such a way that value delivery is emphasized for all key stakeholders. Agile Program Management (AgilePgM) is a disciplined yet flexible agile approach to managing transformational change within an organization.

Agile Project Management

agile-project-management
Agile project management (APM) is a strategy that breaks large projects into smaller, more manageable tasks. In the APM methodology, each project is completed in small sections – often referred to as iterations. Each iteration is completed according to its project life cycle, beginning with the initial design and progressing to testing and then quality assurance.

Agile Modeling

agile-modeling
Agile Modeling (AM) is a methodology for modeling and documenting software-based systems. Agile Modeling is critical to the rapid and continuous delivery of software. It is a collection of values, principles, and practices that guide effective, lightweight software modeling.

Agile Business Analysis

agile-business-analysis
Agile Business Analysis (AgileBA) is certification in the form of guidance and training for business analysts seeking to work in agile environments. To support this shift, AgileBA also helps the business analyst relate Agile projects to a wider organizational mission or strategy. To ensure that analysts have the necessary skills and expertise, AgileBA certification was developed.

Agile Leadership

agile-leadership
Agile leadership is the embodiment of agile manifesto principles by a manager or management team. Agile leadership impacts two important levels of a business. The structural level defines the roles, responsibilities, and key performance indicators. The behavioral level describes the actions leaders exhibit to others based on agile principles. 

Andon System

andon-system
The andon system alerts managerial, maintenance, or other staff of a production process problem. The alert itself can be activated manually with a button or pull cord, but it can also be activated automatically by production equipment. Most Andon boards utilize three colored lights similar to a traffic signal: green (no errors), yellow or amber (problem identified, or quality check needed), and red (production stopped due to unidentified issue).

Bimodal Portfolio Management

bimodal-portfolio-management
Bimodal Portfolio Management (BimodalPfM) helps an organization manage both agile and traditional portfolios concurrently. Bimodal Portfolio Management – sometimes referred to as bimodal development – was coined by research and advisory company Gartner. The firm argued that many agile organizations still needed to run some aspects of their operations using traditional delivery models.

Business Innovation Matrix

business-innovation
Business innovation is about creating new opportunities for an organization to reinvent its core offerings, revenue streams, and enhance the value proposition for existing or new customers, thus renewing its whole business model. Business innovation springs by understanding the structure of the market, thus adapting or anticipating those changes.

Business Model Innovation

business-model-innovation
Business model innovation is about increasing the success of an organization with existing products and technologies by crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. And it all starts by mastering the key customers.

Constructive Disruption

constructive-disruption
A consumer brand company like Procter & Gamble (P&G) defines “Constructive Disruption” as: a willingness to change, adapt, and create new trends and technologies that will shape our industry for the future. According to P&G, it moves around four pillars: lean innovation, brand building, supply chain, and digitalization & data analytics.

Continuous Innovation

continuous-innovation
That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problem and not the technical solution of its founders.

Design Sprint

design-sprint
A design sprint is a proven five-day process where critical business questions are answered through speedy design and prototyping, focusing on the end-user. A design sprint starts with a weekly challenge that should finish with a prototype, test at the end, and therefore a lesson learned to be iterated.

Design Thinking

design-thinking
Tim Brown, Executive Chair of IDEO, defined design thinking as “a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” Therefore, desirability, feasibility, and viability are balanced to solve critical problems.

DevOps

devops-engineering
DevOps refers to a series of practices performed to perform automated software development processes. It is a conjugation of the term “development” and “operations” to emphasize how functions integrate across IT teams. DevOps strategies promote seamless building, testing, and deployment of products. It aims to bridge a gap between development and operations teams to streamline the development altogether.

Dual Track Agile

dual-track-agile
Product discovery is a critical part of agile methodologies, as its aim is to ensure that products customers love are built. Product discovery involves learning through a raft of methods, including design thinking, lean start-up, and A/B testing to name a few. Dual Track Agile is an agile methodology containing two separate tracks: the “discovery” track and the “delivery” track.

eXtreme Programming

extreme-programming
eXtreme Programming was developed in the late 1990s by Ken Beck, Ron Jeffries, and Ward Cunningham. During this time, the trio was working on the Chrysler Comprehensive Compensation System (C3) to help manage the company payroll system. eXtreme Programming (XP) is a software development methodology. It is designed to improve software quality and the ability of software to adapt to changing customer needs.

Feature-Driven Development

feature-driven-development
Feature-Driven Development is a pragmatic software process that is client and architecture-centric. Feature-Driven Development (FDD) is an agile software development model that organizes workflow according to which features need to be developed next.

Gemba Walk

gemba-walk
A Gemba Walk is a fundamental component of lean management. It describes the personal observation of work to learn more about it. Gemba is a Japanese word that loosely translates as “the real place”, or in business, “the place where value is created”. The Gemba Walk as a concept was created by Taiichi Ohno, the father of the Toyota Production System of lean manufacturing. Ohno wanted to encourage management executives to leave their offices and see where the real work happened. This, he hoped, would build relationships between employees with vastly different skillsets and build trust.

GIST Planning

gist-planning
GIST Planning is a relatively easy and lightweight agile approach to product planning that favors autonomous working. GIST Planning is a lean and agile methodology that was created by former Google product manager Itamar Gilad. GIST Planning seeks to address this situation by creating lightweight plans that are responsive and adaptable to change. GIST Planning also improves team velocity, autonomy, and alignment by reducing the pervasive influence of management. It consists of four blocks: goals, ideas, step-projects, and tasks.

ICE Scoring

ice-scoring-model
The ICE Scoring Model is an agile methodology that prioritizes features using data according to three components: impact, confidence, and ease of implementation. The ICE Scoring Model was initially created by author and growth expert Sean Ellis to help companies expand. Today, the model is broadly used to prioritize projects, features, initiatives, and rollouts. It is ideally suited for early-stage product development where there is a continuous flow of ideas and momentum must be maintained.

Innovation Funnel

innovation-funnel
An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.

Innovation Matrix

types-of-innovation
According to how well defined is the problem and how well defined the domain, we have four main types of innovations: basic research (problem and domain or not well defined); breakthrough innovation (domain is not well defined, the problem is well defined); sustaining innovation (both problem and domain are well defined); and disruptive innovation (domain is well defined, the problem is not well defined).

Innovation Theory

innovation-theory
The innovation loop is a methodology/framework derived from the Bell Labs, which produced innovation at scale throughout the 20th century. They learned how to leverage a hybrid innovation management model based on science, invention, engineering, and manufacturing at scale. By leveraging individual genius, creativity, and small/large groups.

Lean vs. Agile

lean-methodology-vs-agile
The Agile methodology has been primarily thought of for software development (and other business disciplines have also adopted it). Lean thinking is a process improvement technique where teams prioritize the value streams to improve it continuously. Both methodologies look at the customer as the key driver to improvement and waste reduction. Both methodologies look at improvement as something continuous.

Lean Startup

startup-company
A startup company is a high-tech business that tries to build a scalable business model in tech-driven industries. A startup company usually follows a lean methodology, where continuous innovation, driven by built-in viral loops is the rule. Thus, driving growth and building network effects as a consequence of this strategy.

Minimum Viable Product

minimum-viable-product
As pointed out by Eric Ries, a minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort through a cycle of build, measure, learn; that is the foundation of the lean startup methodology.

Leaner MVP

leaner-mvp
A leaner MVP is the evolution of the MPV approach. Where the market risk is validated before anything else

Kanban

kanban
Kanban is a lean manufacturing framework first developed by Toyota in the late 1940s. The Kanban framework is a means of visualizing work as it moves through identifying potential bottlenecks. It does that through a process called just-in-time (JIT) manufacturing to optimize engineering processes, speed up manufacturing products, and improve the go-to-market strategy.

Jidoka

jidoka
Jidoka was first used in 1896 by Sakichi Toyoda, who invented a textile loom that would stop automatically when it encountered a defective thread. Jidoka is a Japanese term used in lean manufacturing. The term describes a scenario where machines cease operating without human intervention when a problem or defect is discovered.

PDCA Cycle

pdca-cycle
The PDCA (Plan-Do-Check-Act) cycle was first proposed by American physicist and engineer Walter A. Shewhart in the 1920s. The PDCA cycle is a continuous process and product improvement method and an essential component of the lean manufacturing philosophy.

Rational Unified Process

rational-unified-process
Rational unified process (RUP) is an agile software development methodology that breaks the project life cycle down into four distinct phases.

Rapid Application Development

rapid-application-development
RAD was first introduced by author and consultant James Martin in 1991. Martin recognized and then took advantage of the endless malleability of software in designing development models. Rapid Application Development (RAD) is a methodology focusing on delivering rapidly through continuous feedback and frequent iterations.

Retrospective Analysis

retrospective-analysis
Retrospective analyses are held after a project to determine what worked well and what did not. They are also conducted at the end of an iteration in Agile project management. Agile practitioners call these meetings retrospectives or retros. They are an effective way to check the pulse of a project team, reflect on the work performed to date, and reach a consensus on how to tackle the next sprint cycle. These are the five stages of a retrospective analysis for effective Agile project management: set the stage, gather the data, generate insights, decide on the next steps, and close the retrospective.

Scaled Agile

scaled-agile-lean-development
Scaled Agile Lean Development (ScALeD) helps businesses discover a balanced approach to agile transition and scaling questions. The ScALed approach helps businesses successfully respond to change. Inspired by a combination of lean and agile values, ScALed is practitioner-based and can be completed through various agile frameworks and practices.

SMED

smed
The SMED (single minute exchange of die) method is a lean production framework to reduce waste and increase production efficiency. The SMED method is a framework for reducing the time associated with completing an equipment changeover.

Spotify Model

spotify-model
The Spotify Model is an autonomous approach to scaling agile, focusing on culture communication, accountability, and quality. The Spotify model was first recognized in 2012 after Henrik Kniberg, and Anders Ivarsson released a white paper detailing how streaming company Spotify approached agility. Therefore, the Spotify model represents an evolution of agile.

Test-Driven Development

test-driven-development
As the name suggests, TDD is a test-driven technique for delivering high-quality software rapidly and sustainably. It is an iterative approach based on the idea that a failing test should be written before any code for a feature or function is written. Test-Driven Development (TDD) is an approach to software development that relies on very short development cycles.

Timeboxing

timeboxing
Timeboxing is a simple yet powerful time-management technique for improving productivity. Timeboxing describes the process of proactively scheduling a block of time to spend on a task in the future. It was first described by author James Martin in a book about agile software development.

Scrum

what-is-scrum
Scrum is a methodology co-created by Ken Schwaber and Jeff Sutherland for effective team collaboration on complex products. Scrum was primarily thought for software development projects to deliver new software capability every 2-4 weeks. It is a sub-group of agile also used in project management to improve startups’ productivity.

Scrumban

scrumban
Scrumban is a project management framework that is a hybrid of two popular agile methodologies: Scrum and Kanban. Scrumban is a popular approach to helping businesses focus on the right strategic tasks while simultaneously strengthening their processes.

Scrum Anti-Patterns

scrum-anti-patterns
Scrum anti-patterns describe any attractive, easy-to-implement solution that ultimately makes a problem worse. Therefore, these are the practice not to follow to prevent issues from emerging. Some classic examples of scrum anti-patterns comprise absent product owners, pre-assigned tickets (making individuals work in isolation), and discounting retrospectives (where review meetings are not useful to really make improvements).

Scrum At Scale

scrum-at-scale
Scrum at Scale (Scrum@Scale) is a framework that Scrum teams use to address complex problems and deliver high-value products. Scrum at Scale was created through a joint venture between the Scrum Alliance and Scrum Inc. The joint venture was overseen by Jeff Sutherland, a co-creator of Scrum and one of the principal authors of the Agile Manifesto.

Six Sigma

six-sigma
Six Sigma is a data-driven approach and methodology for eliminating errors or defects in a product, service, or process. Six Sigma was developed by Motorola as a management approach based on quality fundamentals in the early 1980s. A decade later, it was popularized by General Electric who estimated that the methodology saved them $12 billion in the first five years of operation.

Stretch Objectives

stretch-objectives
Stretch objectives describe any task an agile team plans to complete without expressly committing to do so. Teams incorporate stretch objectives during a Sprint or Program Increment (PI) as part of Scaled Agile. They are used when the agile team is unsure of its capacity to attain an objective. Therefore, stretch objectives are instead outcomes that, while extremely desirable, are not the difference between the success or failure of each sprint.

Toyota Production System

toyota-production-system
The Toyota Production System (TPS) is an early form of lean manufacturing created by auto-manufacturer Toyota. Created by the Toyota Motor Corporation in the 1940s and 50s, the Toyota Production System seeks to manufacture vehicles ordered by customers most quickly and efficiently possible.

Total Quality Management

total-quality-management
The Total Quality Management (TQM) framework is a technique based on the premise that employees continuously work on their ability to provide value to customers. Importantly, the word “total” means that all employees are involved in the process – regardless of whether they work in development, production, or fulfillment.

Waterfall

waterfall-model
The waterfall model was first described by Herbert D. Benington in 1956 during a presentation about the software used in radar imaging during the Cold War. Since there were no knowledge-based, creative software development strategies at the time, the waterfall method became standard practice. The waterfall model is a linear and sequential project management framework. 

Read Also: Continuous Innovation, Agile Methodology, Lean Startup, Business Model Innovation, Project Management.

Read Next: Agile Methodology, Lean Methodology, Agile Project Management, Scrum, Kanban, Six Sigma.

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