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Chapter 22Learning Enterprise, Borrowing from the Toyota Way

TOYOTA

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• Most company- Made up of individuals who are.

“ disorganized, nobody knowing who anybody else is, nobody holding still long enough to trust or be trusted”

• Toyota- Create bonds among individuals and partners.

“ move to fit together just right, working together”

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A Commitment from the Top to Build a Total Culture from the Group Up

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“ How to create an aligned organization of individuals who each have the DNA of the organization and are continually learning together to add value to the customer ”

• The Toyota Way model

- Starting with a philosophy.

- Philosophy starts with the chief executives.

- Long term that delivers exceptional value to customers and society.

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1. Start from the top, require executive leadership shakeup.

2. Involve from the bottom up.

3. Use middle managers as change agents.

4. It take time to develop people who really understand and live the philosophy.

5. On a scale of difficulty, it is “extremely” difficult.

What do we know about What do we know about changing a culturechanging a culture..

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The The ToyotaToyota Way Way

Figure 22-1. Top leadership’s “commitment to lean” journey

The Importance of Sustained Leadership Commitment .

Example 1 Wiremold Corporation

Wiremold make “cable-Management solution” that enclose various kinds of cable.That made considerable investment in the early 1980s in Total Quality Management and various lean tools.

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Example 2 Merillat

Merilat is a leader in the manufacture of household cabinets of kitchen and other uses.

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The Importance of Sustained Leadership Commitment .

1.Ownership structure. who own the company influence on the ability of the company to focus on long-term objectives.2.Promote from within. Develop future leaders from within or there is no chance of sustaining long term.

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Factor that will influences whether top executives are committed to the lean vision. Theses include.

3. Environmental pressures. Unfortunately , they factor beyond the control of any lean leader that can make it difficult to sustain the lean learning enterprise.

4. Experience with lean . Someone who worked for TOYOTA ,or for a company that worked closely with TOYOTA .

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Factor that will influences whether top executives are committed to the lean vision. Theses include.

Six Sigma, Lean tools and Lean Sigma: Just a Bunch of tool ?

Six Sigma : Improving the value-adding processFind quality problem downtime on machine Put in countermeasures to fix it

Six Sigma, Lean tools and Lean Sigma: Just a Bunch of tool ?

Lean : Value stream and create flow among the value- adding operations

Six Sigma, Lean tools and Lean Sigma: Just a Bunch of tool ?

Lean Sigma : A harmonious marriage between Six Sigma and Lean.

Six Sigma, Lean tools and Lean Sigma: Just a Bunch of tool ?

Case study : - CEO wanted the Six sigma program. - Pick the right consultant that recent college graduate with high grade-point - Young recruits had little manufacturing experience. - Manager and engineers Why they should help “youngsters” successfully complete a project?

Six Sigma, Lean tools and Lean Sigma: Just a Bunch of tool ?

MythWhat TPS Is not

RealityWhat TPS Is

- A tangible recipe for success- A management project or program- A set of tools for implementation- A system for production floor only- Implementable in a short- or mid-

term period

- A consistent way of thinking- A total management philosophy - Focus on total customer

satisfaction - An environment of teamwork and

improvement - A never-ending search for a better

way- Quality built in process- Evolutionary

Why changing culture Is so difficult

DNA of Toyota

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Why changing culture Is so difficult

TOYOTA way culture

Perceive, Think and feel

Invented, discover and developed

Taught to new member

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TOYOTA largest market outside Japan

All US senior managers were assigned Japanese coordinating

Toyota use trip to JapanTPS technical systemsToyota sent over senior executives to

engrain the TOYOTA DNA

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Case : Ford Production system (FPS)

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1. Director work with believer in TPS2. Brought management understanding of TPS3. Training all managers of FPS4. Management effectively used policy deployment

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13 Tips for Transitioning Your Company to a Lean Enterprise.

1.Start with action in the technical system: Follow quickly with culturalchange. The best way Leader must be involved in the value steam mapping and shop floor transformation.

2.Lean by doing and training second: Early stage of lean transformation 80% doing and 20%training and informing. Toyota approach to training is put people in difficult situation and let them solve their way out of the problem.

3.Start with value stream pilot to demonstrate lean as a system and provide a “go see” model. Chaper17

4.Use value stream mapping to develop future state and help “Lean to see” In Chapter21

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5.Use kaizen workshops to teach and make rapid changes

6.Organize around value streams.

7.Make it mandatory.

8.Crisis may prompt a lean movement, but may not be necessary to turn a company around.

13 Tips for Transitioning Your Company to a Lean Enterprise.

9.Be opportunistic in identifying opportunities for big financial impacts.

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11.Building on your company’s roots to develop your own way. Toyota has is way. You need to have your way.

12.Hire or develop lean leaders and develop a succession system. If the top is not driving the transformation, it will not happen.

13.Use expert for teaching and getting quick results.

13 Tips for Transitioning Your Company to a Lean Enterprise.

10.Realign metrics with a value stream perspective. “You get what you measure”

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Thank you ^_^