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Lessons Learned fromthe Toyota Way
7
Words of Wisdom
“It is not the strongest nor the mostintelligent of the species that survives, butthe one that is most adaptable to change”
-Charles Darwin-
7/22/2009Page 2
“4 P” Model of the Toyota Way
ProblemSolving(Continuous
Improvement and Learning)
People and Partners
¾ Continual organizational learning through Kaizen¾ Go see for yourself to thoroughly understand the situation.
(Genchi Genbutsu)¾ Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly ( Nemawashi )
¾ Grow leaders who live the philosophy¾ Respect, develop and challenge your people
and teams(Respect, Challenge and Grow Them) ¾ Respect, challenge, and help your suppliers
Adding Value to Customers &Proce Society
(Eliminate Waste) improvement
ems
Jidoka)ion
¾ Use visual control so no problems are hidden¾ Use only reliable, thoroughly tested
technology
Philosophy(Long-term Thinking)
¾ Base management decisions ona long-term philosophy, even
at the expense of short-termfinancial goals
7/22/2009Page 3
Base management decisions on along term philosophy, even at the
expense of short-term financialgoals
Toyota mission:
1
• Contribute to the economic growth of the country inwhich it is located (external stakeholders)
• Contribute to the stability and well being of teammembers and partners (internal stakeholders)
• Contribute to the overall growth of Toyota
7/22/2009Page 4
Principle One
1
“The most important factors forsuccess are patience, a focus onlong term rather than short-termresults, reinvestment in people,product, and plant, and anunforgiving commitment toquality.”
-Robert B. McCurry,former Executive V.P., Toyota Motor Sales
7/22/2009Page 5
“4 P” Model of the Toyota Way
ProblemSolving
(ContinuousImprovement and Learning)
¾ Continual organizational learning through Kaizen¾ Go see for yourself to thoroughly understand the situation.
(Genchi Genbutsu)¾ Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly ( Nemawashi )
Eliminate Waste through FlowPeople and
(Respect, Challenge
Process(Eliminate Waste)
Philosophy(Long-term Thinking)
& Standardization
¾ Create process “flow” to surface problems¾ Level out the workload (Heijunka)
¾ Stop when there is a quality problem (Jidoka)¾ Use pull systems to avoid overproduction
¾ Standardize tasks for continuousimprovement
¾ Use visual control so no problems are hidden¾ Use only reliable, thoroughly tested
technology
¾ Base management decisions ona long-term philosophy, even
at the expense of short-termfinancial goals
7/22/2009Page 6
Lean Manufacturingis a manufacturing philosophy which shortens the timebetween the customer order and the product build /shipment by eliminating sources of waste.
Business as UsualCUSTOMER
ORDERWaste PRODUCT
BUILT & SHIPPED
TimeLean Manufacturing
CUSTOMER PRODUCTORDER BUILT & SHIPPED
Waste
Time (Shorter)
7/22/2009Page 7
Product Lead Time
CastingWaiting
TransportationMachining
Staging InventoryAssembly
Staging
RawMaterial
Time
= ValueAdded Time
= Non-ValueAdded Time(WASTE)
FinishedParts
�Value Added Time is only a very smallpercentage of the Lead time.
�Traditional Cost Savings focused on onlyValue Added Items.
� LEAN FOCUSES ON NON-VALUEADDING ITEMS .
7/22/2009Page 8
Before Lean: Organization By Machine Type WithConvoluted Flow
No Organization and No Control
LATHE
PART FLOW
MILL
LATHE
MILL
LATHELATHE
500pcs.
MILL MILLMILL
750pcs.
GRINDER
DRILL
GRINDER
250pcs.
DRILL DRILL
GRINDER
7/22/2009Page 9
After Lean: U-Shaped One-Piece Flow Cell
Organization and Control
PART FLOW
Build toTakt Time!
7/22/2009Page 10
Simplified Pull SystemDownstream processes withdraw what they need when they need it.
Empties +production kanban
ABCDEF
New product GH
Supplier Plant
Empties + withdrawalkanban
PULLCustomer Plant
NeededComponents + kanban
Preceding processes replenish what is taken away.
Value Stream Perspective
Get away from isolated perspective / improvements
Process 1 Process 2 Process 3
Kaizen Kaizen
Kaizen
7/22/2009Page 12
Why Focus on Flow?
“If some problem occurs in one-piece-flowmanufacturing then the whole productionline stops. In this sense it is a very badsystem of manufacturing. But whenproduction stops everyone is forced tosolve the problem immediately. So teammembers have to think, and throughthinking team members grow and becomebetter team members and people.”
-Teruyuki Minoura, former President,Toyota Motor Manufacturing, North America
7/22/2009Page 13
Lean Tools to Support Flow
• 5S-Visual Workplace
• Total Productive Maintenance
• Quick Changeover
• Standardized Work
• Quality Methods
7/22/2009Page 14
What is a Visual Workplace?
When anyone can walk into aworkplace and visuallyunderstand the currentsituation.
7/22/2009Page 15 4
Describe this area...
7/22/2009Page 16
Describe this area...
7/22/2009Page 17
What is TPM?
Total Productive Maintenance (TPM)is
Productive Maintenance withEVERYONE’s participation
Maintenance=Teachers, Doctors of EquipmentOperators=Clean, inspect, routine repair
7/22/2009Page 18
Why Quick Change Over?
Change Over
Average inventory levels
Difference in averageinventory level withmore changeovers
Time
The more quickly we changeover, the more ourinventory levels decrease. This helps accomplishour goal of waste elimination.
7/22/2009Page 19
Standard Work Tools
StandardizedWork Chart
Detail of each TaktProcess Step 90s
Work Element Sheet
Detail of the Elementsof each Process Step
1 2 3 4 5Assembly Process #
Stack Chart(Yamazumi)
A Visual Tool forBalancing Processes
7/22/2009Page 20
Standardized tasks are the foundationfor continuous improvement and 6
employee empowerment
“Today’s standardization…is the necessaryfoundation on which tomorrow’simprovement will be based. If you think of“standardization” as the best you knowtoday, but which is to be improvedtomorrow-you get somewhere. But if youthink of standards as confining, thenprogress stops.”
Henry Ford, Today and Tomorrow, 1926
7/22/2009Page 21
“4 P” Model of the Toyota Way
ProblemSolving(Continuous
Improvement and Learning)
People and Partners
The heart & soul ofituation.The Toyota Way
considering all options; implement rapidly (Nemawashi)
¾ Grow leaders who live the philosophy¾ Respect, develop and challenge your people
and teams(Respect, Challenge and Grow Them)
Process(Eliminate Waste)
Philosophy(Long-term Thinking)
¾ Respect, challenge, and help your suppliers
¾ Create process “flow” to surface problems¾ Level out the workload (Heijunka)
¾ Stop when there is a quality problem (Jidoka)¾ Use pull systems to avoid overproduction
¾ Standardize tasks for continuousimprovement
¾ Use visual control so no problems are hidden¾ Use only reliable, thoroughly tested
technology
¾ Base management decisions ona long-term philosophy, even
at the expense of short-termfinancial goals
7/22/2009Page 22
People and Partners
Respect, Challenge, and Grow Them:
9. Grow leaders who thoroughly understand the work,live the philosophy, and teach it to others
10. Develop exceptional people and teams who followyour company’s philosophy
11. Respect your extended network of partners andsuppliers by challenging them and helping themimprove
7/22/2009Page 23
One-Piece Flow Demands Team Work!
Traditional WesternTeam
x x
xx x
Station B
x x x
xx x x x
x
Station A Station C
Needhelp? Need
help?
x
x
x
X
Toyota Way TeamWorkcell
7/22/2009Page 24
Principle Five: Stop & FixProblems
“Mr. Ohno used to say that no problem discoveredwhen stopping the line should wait longer thantomorrow morning to be fixed. Because whenmaking a car every minute we know we will havethe same problem again tomorrow.”
-Fujio Cho, President, Toyota Motor Corporation
7/22/2009Page 25
1 2 3 4 5 6 7
8 9 10STOP BUTTON
(STOP THE L NE AUTHOR ITY )
4
11 12 13 14STOP BUTTON
(STOP THE L NE AUTHOR ITY )
5
AbnormalityStation 5
Team Leader
Typical Toyota Organization to support Continuous ImprovementT
Team Size
Team Member{ 5 - 8 }
Kaizen
Team Leader{ 3 - 4 }
Group Leader{ 5 - 8 }
Asst. Manager{ 4 - 10 }
Manager
Source: Bill Costantino, former group leader, Toyota, Georgetown.
How Do we Develop People?Research in occupational training
shows that individuals retain about:
• 10 % of what they read
• 20 % of what they hear
• 30% of what they see
• 50% of what they hear and use
• 70% of what they say
• 90% of what they say and do
7/22/2009Page 28
• Job Instruction Training is designed to teach
people how to do a particular job by:
¾ Hearing (what to do)
¾ Seeing (how it is done)
¾ Using (what was learned)
¾ Saying (what was learned)
¾ Doing (the task)
¾ REPEATEDLY !!
7/22/2009Page 29
The Four Steps of TJI
Step 4: FOLLOW UP Step 1: PREPAREWORKER
Action Plan
Major Steps
Key Points
Check Reasons Do
Step 3: TRY OUT Step 2: PRESENTPERFORMANCE OPERATION
7/22/2009Page 30
Bumper Trimming Job Breakdown Sheet
JOB BREAKDOWN SHEET Phil Turek Todd Chambers
DATE: 7/20/2006 Team Leader Supervisor
AREA: Bumper molding JOB: Rear bumper molding operator - Trimming WRITTEN BY: Phil Turek
MAJORSTEPS
Step # 1
KEYPOINTSSAFETY: Injury avoidance, ergonomics, danger pointsQUALITY: Defect avoidance, check points, standardsTECHNIQUE: Efficient movement, special method
COST: Proper use of materials
1. Hold flash straight up and tight
REASONS FOR KEYPOINTS
1. Makes trimming easier
2. Trim away from body and arm 2. Prevents injury- cuts
Trim flash ball on left side 3. Blade flush with top surface 3. Visible surface, flash line 1mm max.
Step # 2 1. Start on trim line- 1 mm variation 1. Visible surface- quality spec.
2. Blade must be perpindicular 2. Angled cut not acceptable
Trim left side core flash 3. Follow trim line- 1mm variation 3. Visible surface- quality spec.
4. Curving motion while trimming 4. Technique to make trimming easier
Step # 3 1. Hold gate up horizontally 1. Prevents twisting of bumper during cut
2. Rest blade on bumper edge horizontally 2. Helps make cut horizontal and straight
Trim gate flash 3. Angle knife handle back (blade is horizontal) 3. Cut is easier
4. One continuous movement 4. Stopping will cause a jagged cut
Step # 4 1. Hold flash straight up and tight 1. Makes trimming easier
2. Trim away from body and arm 2. Prevents injury- cuts
Trim flash ball on right side 3. Blade flush with top surface 3. Visible surface, flash line 1mm max.
Step # 5 1. Start on trim line- 1 mm variation 1. Visible surface- quality spec.
2. Blade must be perpindicular 2. Angled cut not acceptable
Trim right side core flash 3. Follow trim line- 1mm variation 3. Visible surface- quality spec.
4. Curving motion while trimming 4. Technique to make trimming easier
LEAN ASSOCIATES, INC. www.leanassociates.com
Auditing Standardized Work
7
Roles and Responsibilities
General Manager and VP LevelConcentrate on Business Planningand Policy Improvement. Tools:Hoshin Planning & TBP
Manager LevelFocus on Shop Floor andSystems Improvement.
Tools: Visual Factory & TBPT
Team Leader and Group LeaderManage Standardized Work, Process
Improvement and Develop ProblemSolving Skills. Tools: FMDS, TBP & OJD
Team MemberFocus on Fundamental Skills & Standardized Work
Tools: Skills Training, Job Instruction, Standardized Workand 5-S
7/22/2009Page 33
Toyota Way Principles in 4P Model
The dynamic ofThe Toyota Way
ProblemSolving(Continuous
Improvement and Learning)
People and Partners
¾ Continual organizational learning through Kaizen¾ Go see for yourself to thoroughly understand the situation.
(Genchi Genbutsu)¾ Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly ( Nemawashi )
¾ Grow leaders who live the philosophy¾ Respect, develop and challenge your people
and teams(Respect, Challenge and Grow Them)
Process(Eliminate Waste)
Philosophy(Long-term Thinking)
¾ Respect, challenge, and help your suppliers
¾ Create process “flow” to surface problems¾ Level out the workload (Heijunka)
¾ Stop when there is a quality problem (Jidoka)¾ Use pull systems to avoid overproduction
¾ Standardize tasks for continuousimprovement
¾ Use visual control so no problems are hidden¾ Use only reliable, thoroughly tested
technology
¾ Base management decisions ona long-term philosophy, even
at the expense of short-termfinancial goals
7/22/2009Page 34
Typical Improvement Opportunities Available
7/22/2009Page 35
Improvement Approaches of Typical Companies
7/22/2009Page 36
Toyota LeveragesOpportunities at all Levels
7Page 37
Most common mistake
• Jumping from “problem” to “solution” without clear understanding and analysis
PROBLEM
SOLUTION
7/22/2009Page 38
Principle TwelveGenchi Genbutsu 12
“Observe the production floor withoutpreconceptions and with a blank mind.Repeat “why” five times to everymatter.”
-Taiichi Ohno
7/22/2009Page 39
“No Problem” is problem
• Problems are opportunities to learn
• Hiding problems undermines the system
7/22/2009Page 40
Learning from the Toyota Way
Characteristics of EffectiveLean Transformation
• Top Down Directive that this is the new way.
• Bottom-up involvement in concrete projects with clearresults.
• Develop internal experts through learning by doing.
• Expert sensei to guide the process and teach.
• Learning philosophy: every project, activity, is a chance tolearn.
• Start with value stream transformation projects.
• Build on successes to transform broader organization andculture over time---YEARS!
7/22/2009Page 42
Why is this hard to do?
• Traditional organizations in fire fighting mode
• No clear vision of the future state
• culture change is hard
• Organizational change is disruptive
• Management has to change its role from managingfrom the office to deeply understanding processes!
7/22/2009Page 43
Lean is…“A long journey that needs commitment,patience, long-term thinking, positivemindset and attitude, and continuousimprovement which are merged togetheras operational excellence and as a strategicweapon.”
Let’s start the journey and Do our Best!
7/22/2009Page 44
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