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1Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
What is Toyota Production System?Introduction to TPS
Marek Piatkowski – March 2017
Thinking win, Win, WIN
2Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Introduction - Marek Piatkowski Professional Background
Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from 1987-1994
TPS/Lean Transformation Consulting - since 1994 Professional Affiliations
TWI Network – John Shook, Founder Lean Enterprise Institute (LEI) – Jim Womack Lean Enterprise Academy (LEA) – Daniel Jones CCM/CAINTRA – Monterrey, Mexico SME, AME, ASQ, CME
Lean Manufacturing Solutions - Toronto, Canada
http://twi-network.com
3Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
4Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
The Most Studied Company in the World
1987
7
Production should take place with a little inventory as possible,preferably only the one component that is to be processed or assembled next.
8Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Stability
GOAL: Highest Quality, Lowest Cost, Shortest Lead Time
1. Stable Manufacturing Processes2. 100% Quality Parts
Heijunka Standardized Work Kaizen
Just-in-Time Jidoka
Stop the lineand fix
the Problem
Separate man’s work from
machine’s work
ContinuousFlow
Takt Time
Pull System
The Toyota House
Toyota Product
ion System(TPS)
9Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Toyota Sensei
Sensei ( 先生 ) is a Japanese title used to refer to or address teachers, professors, masters, coaches, professionals such as lawyers, doctors, politicians, clergyman and other figures of authority.
The word Sensei is also used to show respect to someone who has achieved a certain level of mastery in an art form or science or some other skill: accomplished novelists, musicians, and artists for example are addressed in this way.
The Japanese Sensei is a courtesy title for a man of respected stature.
10Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
What is TPS – Toyota Production System? Toyota Production System (TPS) is a practical expression of
Toyota's people and customer-oriented philosophy. This is not a rigid company-imposed procedure but a set of
principles that have been proven in day-to-day practice over many years.
Many of these ideas have been adopted and imitated all over the world.
TPS has three desired outcomes: To provide the customer with the highest quality vehicles, at lowest
possible cost, in a timely manner with the shortest possible lead times.
To provide Toyota employees with work satisfaction, job security and fair treatment.
It gives the company flexibility to respond to the market, achieve profit through cost reduction activities and long-term prosperity.
11Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Operating Principles TPS Leadership
TPS
Toyota’s Philosophy
What is Toyota Production System (TPS)?
12Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Toyota’s Philosophy
Toyota’s Philosophy
Operating Principles TPS Leadership
TPS
Toyota’s Philosophy
Eiji Toyoda1913 -2013
Akio Toyoda2013 -
13Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Guiding Principles at Toyota
1. Always be faithful to your duties, thereby contributing to the company and to the overall good
2. Always be studious and creative, striving to stay ahead of the times
3. Always be practical and avoid frivolousness4. Always strive to build homelike atmosphere at work that is warm
and friendly5. Always have respect for spiritual matters and remember to be
grateful at all times
Sakichi ToyodaFounder of Toyota
14Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Guiding Principles at Toyota
1. Honor the language and spirit of the law of every nation and undertake open and fair business activities to be a good corporate citizen of the world.
2. Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in their respective communities.
3. Dedicate our business to providing clean and safe products and to enhancing the quality of life everywhere through all of our activities.
4. Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide.
5. Foster a corporate culture that enhances both individual creativity and the value of teamwork, while honoring mutual trust and respect between labor and management.
6. Pursue growth through harmony with the global community via innovative management.
7. Work with business partners in research and manufacture to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.
Eiji Toyoda1913 - 2013
15Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Toyota’s Philosophy - People The Toyota Production System (TPS) itself is based on the belief
that the company that ignores human respect will not endure People – a company’s greatest asset is its people. Toyota does
as much as possible to take care of the employees, recognizing first and foremost the importance of job security
People enjoy their work when it involves trying out their own ideas, mastering new skills and making visible contributions
Teamwork is a foundation of TPS – all employees are required to participate and to follow rules and principles of TPS
Operators who are the most knowledgeable of any manufacturing operation are people who perform that job daily – their involvement is critical to the success of implementation of TPS
“Good Thinking, Good Product” – employees are expected to contribute to the improvement of their own work.
Sakichi ToyodaFounder of Toyota
16Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Toyota’s Philosophy - People We respect our employees and believe that the success of our
business is led by each individual’s creativity and good teamwork We respect and honor the human rights of people involved in our
business Through communication and dialogue with our employees, we
build and share the value “Mutual Trust and Mutual Responsibility” and work together for the success of our employees and the company
Management of our company takes leadership in fostering a corporate culture and implementing policies that promote ethical behavior
Eiji Toyoda1913 - 2013
17Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Guiding Principles of Toyota Revised April 1997
1. Honor the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world.
2. Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities.
3. Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our activities.
4. Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide.
5. Foster a corporate culture that enhances individual creativity and teamwork value, while honoring mutual trust and respect between employees and management.
6. Pursue growth in harmony with the global community through innovative management.
7. Work with business partners in research and creation to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.
18Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
19Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
20Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
21Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
22Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
23Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
24Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
25Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Toyota’s Philosophy - Operating Guidelines Toyota’s goal is to contribute positively to the society and provide
for the welfare of our employees through the provision of better cars, at the better prices, for more people.
Produce superior automobiles that are in total balance with Customer’s desires for quality and performance, while at the same time answering other modern-day needs such as resource conservation, clean exhaust emissions and safety.
Customers are the reason for existence and they must always receive a perfect product or service
Assure high quality by building it at each process. Defects are never passed on to following process.
Improvement is always possible and necessary. Continuously improve every aspect of the system through Kaizen. Any existing process can be improved - no ifs, buts or maybes
Akio Toyoda2013 -
26Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
TPS Manufacturing Philosophies Expected cost reductions and process improvements can be
achieved only, by implementing, supporting and maintaining following TPS Manufacturing methodologies and principles:
Every customer-supplier connection must be direct and there must be a clear-cut way to send requests and receive responses.
All production lines must be balanced and operating to the Takt time
The pathway for every product and service must be simple and direct.
All our process must flow without interruption All inventory buffers are wasteful and need to be eliminated.
27Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
TPS Manufacturing Philosophies All inventory levels will be determined based on the frequency of
deliveries, delivery lead times and consumption rates. All inventories will be stored in centralized Supermarkets. Production Schedule will be issued only to a single operation
(pacemaker), all preceding operation will work to the Pull System signal.
All production must be scheduled in the smallest logical lot sizes. Daily schedule attainment is mandatory. Manufacturing will not
overproduce, under-produce or produce too soon. All deliveries of parts and components, internal and external, will
be conducted frequently and in smallest possible lots.
28Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
TPS Manufacturing Philosophies All production down time due to parts shortage must be
eliminated. All Waste is not acceptable and must be eliminated Our Set-up and Changeover processes must be minimized – SMED All work shall be highly specified as to content, sequence, timing,
and outcome and be defined in terms of Standardized Work. All equipment and work cells will be designed to support
continuous flow processing Manufacturing equipment will be maintained properly and repaired
swiftly All vital information required to make shop floor decisions will be
visually displayed for anybody to see and to understand.
29Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
How do we translate these philosophies? By definition: Lean is a logical collection of philosophies,
operating principles, methodologies and tools, which will lead any Company to greater cost reductions and efficiencies improvements.
How are Toyota's philosophies, policies and practices translated in your Company?
What is essential? What is difficult? What is misunderstood? What are the major issues? What are the corporate policies needed to support
philosophies of Lean?
30Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Operating Principles
Operating Principles
Operating Principles TPS Leadership
TPS
Toyota’s Philosophy
PeopleEnterprise Tools and Methods
31Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
TPS Operating Principles - Business
Base your management decisions on a long term philosophy, even at the
expense of short-term financial goals.
Enterprise
32Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
TPS Operating Principles - Business
Principle: Base your management decisions on a long term philosophy, even at the expense of short-term financial goals Have a philosophical sense of purpose that supersedes any short-
term decision making. Work, grow and align the whole organisation toward a common purpose that is bigger than making money.
Understand your place in the history of the company and work to bring the company to next level. Your philosophical mission is the foundation for the other principles.
Generate value of the customer, society and the economy - it is your starting point. Evaluate every function in the company in terms of ability to achieve this.
Be responsible. Strive to decide your own fate. Act with self reliance and trust in your own abilities. Accept responsibility for your own conduct and maintain improve the skills that enable you to produce added value.
Enterprise
33Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
TPS Operating Principles - Business
Toyota Motor CompanyToyota Production System, p.1
Constantly shorten the time it takes to convert Customer orders into
deliveries.Enterprise
34Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
TPS Operating Principles - Business
Principle: Constantly shorten the time it takes to convert Customer orders into deliveries. Lead time is defined as total time required to manufacture an item,
including order preparation time, queue time, setup time, run time, move time, inspection time, and put-away time.
An effort should be made to continuously reduce time from release of an order to production and shipment. For make-to-stock products, it is the time taken from the release of an order to production and receipt into finished goods inventory.
Excess inventory presents a great deal of waste, not to mention quality issues (spoilage), storage requirements, investment of funds, limiting cash flow, among others. Reducing inventory will decrease your lead-time.
Careful consideration of cost, replenishment lead-times, and space requirements play an important role in determining reduced inventory levels. The order process is often changed and more inventory is repositioned at “points of use.”
Enterprise
35Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Add value to your organization by developing your people and partners
TPS Operating Principles - Business
Enterprise
36Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Principle: Add value to your organization by developing your people and partners Grow leaders who thoroughly understands the work, live
philosophy and teach it to others. Grow leaders within, rather than buying them from outside the organisation.
Do not view the leader's job as simply accomplishing tasks and having good people skills. Leaders must be role models for the company's philosophy and the way of doing business.
A leader must understand the daily work in great detail so that he or she can be a best teacher of your company's philosophy.
Have respect for your partners and suppliers and treat them as an extension of your business.
Challenge your outside business partners to grow and develop. It shows that you value them. Set challenging targets and assists your partners in achieving them.
TPS Operating Principles - Business
Enterprise
37Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Develop exceptional people and teams who follow your company's
philosophyPeople
TPS Operating Principles - People
38Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Principle: Develop exceptional people and teams who follow your company's philosophy Create a strange, stable culture in which company values and
beliefs are widely shared and lived out over a period of many years.
Train exceptional individuals and teams to work within the corporate philosophy to achieve exceptional results. Work hard to reinforce the culture continually.
Use Cross functional teams to improve quality and productivity and enhance flow by solving difficult technical problems.
Empowerment occurs only when people use the company's tools to improve company.
Make an ongoing effort to teach individuals how to work together as teams together toward common goals. Team work is something that has to be learned.
People
TPS Operating Principles - People
39Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Continuously drive root cause problems solving activities
People
TPS Operating Principles - People
40Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Principle: Continuously drive root cause problems solving activities Go and see for yourself to thoroughly understand the situation. Solve problems and improve processes by going to the source and
personally observing and verifying data rather than theorizing on the basis of what other people or the computer screen tell you.
Think and speak based on personally verified data. Even high-level managers and executives should go and see
things for themselves, so they will have more than a superficial understanding of the situation.
Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization
A manager’s or supervisor’s role consists of leading problem solving activities in a multi-skilled, cross-functional team environment
People
TPS Operating Principles - People
41Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Make decision slowly by consensus, thoroughly considering all options;
implement decisions rapidly. Practice PDCA.
People
TPS Operating Principles - People
42Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Principle: Make decision slowly by consensus, thoroughly considering all options; implement decisions rapidly. Practice PDCA. Do not pick a single direction and go down that one path until you
have thoroughly considered alternatives. Nemawashi is the process of discussing problems and potential
solutions with all of those affected, to collect their ideas and get agreement on a path forward. This consensus process, though time - consuming, helps broaden the search for solutions, and once a decision is made, the stage is set for rapid implementation.
PDCA is a systematic four-step management method used in business for the control and continuous improvement of processes and products.
PDCA provides a systematic approach to achieving continuous improvement.
It is a great management and communication tool
People
TPS Operating Principles - People
43Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Continually improve standard processes and procedures in order to
ensure maximum quality, improve efficiency and eliminate waste.
People
TPS Operating Principles - People
44Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
TPS Operating Principles - People
Principles: Continually improve standard processes and procedures in order to ensure maximum quality, improve efficiency and eliminate waste Continuous improvement process (CI), is an ongoing effort to
improve products, services, or processes. Continuous Improvement efforts seek "incremental" improvement
over time or "breakthrough" improvement all at once. Value added processes are constantly evaluated and improved
and non-value added process and Waste are minimized or eliminated.
Continuous Improvement is a gradual never-ending process which is focussed on increasing the effectiveness and/or efficiency of an organisation.
Continuous Improvement is not limited to quality initiatives. Put simply - it means ‘getting better all the time’.
People
45Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Build a culture of stopping to fix a problem and to get quality right at
the first timePeople
TPS Operating Principles - People
46Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Principle: Build a culture of stopping to fix a problem and to get quality right at the first time Quality of the customer drives your value proposition Use all the modern quality assurance methods available Build into your equipment the capability of detecting problems
and stopping itself. Develop a visual system to alert team or project leaders that a machine or process needs assistance. Jidoka (machines with human intelligence) is the foundation for "building in" quality.
Build into your organisation support systems to quickly solve the problems and put in place countermeasures.
Build into your culture the philosophy of stopping or slowing down to get quality right the first time to enhance productivity in the long run.
People
TPS Operating Principles - People
47Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Constantly strive for absolute elimination of waste, overburden and
unevenness in all areas.
TPS Operating Principles – Tools and Methodologies
Tools and Methods
48Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
TPS Operating Principles – Tools and Methods
Principle: Constantly strive for absolute elimination of waste, overburden and unevenness in all areas. Meaningful Work consists of:
Value Added Work - operations which increase a value of a product from the Customer’s point of view
Non-Value Added Work – Incidental Work. Work that does not have any particular value, but it has a cost.
The higher the value-added operation in your completed work, the higher the level of production efficiency will be.
Waste (Muda) - is NOT work. Waste are activities, motions, behaviors or actions that are not part of the actual work (non essential activities).
Two major contributors to Waste: Unevenness - fluctuating schedules, planning and production
quantities Overload - machine or employee pushed beyond natural limits of
their capacity
Tools and Methods
49Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Standardize all processes and procedures to ensure a safe method
of operation and a consistent approach to Quality.
TPS Operating Principles – Tools and Methods
Tools and Methods
50Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Principle: Standardize all processes and procedures to ensure a safe method of operation and a consistent approach to Quality. Use stable, repeatable methods everywhere to maintain the
predictability, regular timing and regular output of your processes. It is the foundation for the flow and pull.
Capture the accumulated learning about a process up to a point in time by standardizing today's best practices.
Standardization is a foundation for continuous improvements and employee empowerment
Allow creative and individual expression to improve upon the standard; then incorporate it into the new standard so that when a person moves on you can hand off the learning to the next person.
TPS Operating Principles – Tools and Methods
Tools and Methods
51Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Create continuous flow of production to bring problems to the
surface
TPS Operating Principles – Tools and Methods
Tools and Methods
52Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Principle: Create continuous flow of production to bring problems to the surface Redesign work processes to achieve high value-added, continuous
flow of information, product, materials and people. Strive to cut back to zero the amount of the time that any work
project is sitting idle or waiting for someone to work on it. Create flow to move material and information fast as well as to
link processes and people together so that problems surface right way.
Make flow evident throughout your organizational culture. It is the key to a true continuous improvement process and to developing people.
TPS Operating Principles – Tools and Methods
Tools and Methods
53Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Use Pull system to avoid overproduction and excess
inventories
TPS Operating Principles – Tools and Methods
Tools and Methods
54Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Principle: Use Pull system to avoid overproduction and excess inventories If you cannot flow production, information, material and people -
Pull Provide your downline customers in production process with what
they want, when they want it and in the amount they want it. Material replenishment initiated by consumption in the basic
principle of JIT Just-in-Time. Minimize your work in process and warehousing of inventory by
stocking small amounts of each product and frequently restocking based on what the customer actually takes away.
Be responsive to the day-by-day shifts in customer demand rather than relying on computer schedules and systems to track wasteful inventory.
TPS Operating Principles – Tools and Methods
Tools and Methods
55Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Level out the workload – avoid unevenness, un-leveled workload
(Mura)
TPS Operating Principles – Tools and Methods
Tools and Methods
56Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Principle: Level out the workload – avoid unevenness, un-leveled workload (Mura) Eliminating waste is just one-third of the equation for making lean
successful. Eliminating overburden to people, equipment and eliminating unevenness in the production schedule is just as important - yet generally not understood at companies attempting to implement lean principles.
Work to level out the workload of all manufacturing and service processes as an alternative to the start/stop approach of working on projects in batches that is typical at most companies.
TPS Operating Principles – Tools and Methods
Tools and Methods
57Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Use Visual Management and Controls so no problems are hidden
TPS Operating Principles – Tools and Methods
Tools and Methods
58Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Principle: Use Visual Management and Controls so no problems are hidden Use simple visual indicators to help people determine immediately
whether they are in a normal (standard) condition or deviating from it (abnormal condition).
Is this situation normal or abnormal? Is this good or bad? Do I need to take action?
Design a simple system where any abnormality is identified immediately
process/operation – are all procedures being followed? equipment/machinery – are they producing good parts? expected levels of performance / inventory
Purpose - to delegate the decision making process to the lowest level of the organization
implement audio-visual controls eliminate dependency on a few “decision makers”
TPS Operating Principles – Tools and Methods
Tools and Methods
59Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Use only reliable, thoroughly tested technology that servers your people
and process
TPS Operating Principles – Tools and Methods
Tools and Methods
60Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Principle: Use only reliable, thoroughly tested technology that servers your people and process Use technology to support people not to replace people. Often it is
best to work out process manually before adding technology to support the people.
New technology is often unreliable and difficult to standardize and therefore endangers "flow". A proven process that works generally takes precedence over new and untested technology.
Conduct actual tests before adopting new technology in business processes, manufacturing systems or products.
Reject or modify technologies that conflict with your culture or that might disrupt stability, reliability and predictability.
Nevertheless encourage your people to consider new technologies when looking into new approaches to work. Quickly implement a thoroughly considered technology if it has been proven in trials and it can improve flow in your processes.
TPS Operating Principles – Tools and Methods
Tools and Methods
61Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Stability
GOAL: Highest Quality, Lowest Cost, Shortest Lead Time
1. Stable Manufacturing Processes2. 100% Quality Parts
Heijunka Standardized Work Kaizen
Just-in-Time Jidoka
Stop the lineand fix
the Problem
Separate man’s work from
machine’s work
ContinuousFlow
Takt Time
Pull System
The Toyota HouseToyota Product
ion System(TPS)
1987
62Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
Leadership’s Role in TPS
TPS Leadership
Operating Principles TPS Leadership
TPS
Toyota’s Philosophy
63Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Leadership Style at Toyota Organizational structure based on a Military model
Manager, Group Leader, Team Leader, Team Members Toyota Production System (TPS) rules Managers do not tell people what to do! – managers expect
employees to perform their jobs according to Standardized Work Managers job is to deal with and resolve abnormal situations
Process People
How is this accomplished? Operating philosophies: “The nail that sticks out get hammered in” “Carrot” and “Stick” approach - military model “Golden Handcuffs” Be creative, but follow the rules
64Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Leadership Style at Toyota Your initial perception is – this is a very rigid and well disciplined
environment Nobody is late for work People do what they were trained to do Things are working well and nobody is in charge
Roles and responsibilities for all levels very clearly defined Best practices for all (standardized work), goals , targets and
objectives well defined and known to all Everybody knows what to do and they do it on regular basis Everybody performs their duties (most of the time)
65Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
Thinking win, Win, WIN
TPS Leadership Style TPS Leaders have to be quick studies, nimble, and trusting of their
employees Having deep skills and technological experience is not enough Becoming a Leader, at any level, requires the development and
utilization of strong people skills TPS Leadership is exclusively about people – you do not lead
machines or processes, you lead people
66Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Eiji Toyoda on Leadership
“The people at the top are just flag-wavers.It is pure MUDA to wave your flag and have no one
follow you.Waving that flag in a way that makes people fall in line
behind youis what is important.”
Eiji Toyoda
Eiji Toyoda1913 -2013
67Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Chairman of Toyota Motor Corp. and former President of Toyota Motor
Manufacturing, KY and Toyota Motor Corp.
Toyota’s ChairmanFujio Cho
Three Keys to Lean Leadership Go See
“Senior Management must spend timeon the front lines”
Ask Why “Use the “Why” techinques daily.”
Show Respect “Respect your people.”
68Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Chairman of Toyota Motor Corp. and former President of Toyota Motor
Manufacturing, KY and Toyota Motor Corp.
Toyota’s ChairmanFujio Cho
“Many good companies have respect for individuals and practice Kaizen
and other TPS tools. But what is important is having all elements together as a
management system. It must be practiced every day in a very
consistent matter – not is spurs – in a concrete way on the shop floor.”
69Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Toyota’s Philosophy – Manager’s Role In a true TPS environment decision making process should be
made at the lowest possible level of the organization. Simple, effective solutions are the most effective A manager’s or supervisor’s role consists of
leading problem solving activities in a multi-skilled, cross-functional team environment
Managers role is to make sure that for everything that we do there is a well defined standard process
Continuous Improvement (Kaizen) activities are management responsibilities.
70Marek.Piatkowski@Rogers.com
What is Toyota Production System Introduction
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Problem Solving process TPS creates a community of scientists and analysts Toyota uses rigorous problem solving process that requires a
detailed assessment of the current state of affairs and a plan for improvement
With anything less than such a scientific rigor, change would amount to little more than random trial and error – a blindfolded walk through life
This process actually stimulates operators and managers to engage in the kind experimentation that is widely recognized as a starting point of Continuous Improvement
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Continuous Improvement must be Leadership driven Continuous Improvement is a process of discovering and
eliminating problems – elimination of Waste There are two types of CI activities:
methods improvements and equipment improvements
Leaders must be skillful in identifying these problems and leading Continuous Improvement activities to eliminating them
Production Leaders (Supervisors) must become experts in Standardized Work
They should be able to analyze, study, and simplify work methods. It is a starting point for making improvements
Implementation of Toyota Production System must be taken seriously and supported by all levels of the organization - Implementation process is not optional.
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Continuous Improvement activities Toyota does not expect their employees to initiate any CI
activities or to learn how to conduct improvements strictly from their personal experience
Toyota explicitly teaches people how to improve Toyota provides training and creates environment to foster (to
encourage) Continuous Improvement activities: Quality circles Suggestion program Daily problem “Auctions” Kaizen events Etc …
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Managing at Toyota Managers in Toyota never say Yes easily; they rarely say No - The
often say Maybe. In traditional companies managers are forced to explain “why” to
their subordinates when saying to them – “stop doing this or no, you can’t do that.”
At Toyota, the burden of proof is always on the subordinate, who must justify why an action is necessary
At Toyota manager leads in a very different way: by example by being knowledgeable by getting into the messy details by questioning by coaching by building robust, sensible systems and processes that cascade
responsibility
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Manager’s Role at Toyota Managers role is to make sure that for everything that we do there
is a well defined process If something goes wrong, the first line of questions that Manager
must ask are: What went wrong? What is acceptable and what is not acceptable? Did we have a process for this particular situation? Did we follow the process? Was there a problem with the process or the problem occurred
because we did not follow the process they we should?
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How Toyota’s Workers Learn the Rules Toyota’s managers do not tell workers and supervisors specifically
how to do their work. They coach them. Rather, they use a teaching and learning approach that allows
their workers to discover the rules as a consequence of solving problems
The manager teaching a person, will come to the work site and, while the person is doing his or her job, ask a series of questions:
Show me how do you do this work? Show me how do you know you are doing this work correctly? How do you know that the outcome is free of defects? Show me. Show me what do you do if you have a problem?
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Learning about Toyota’s Management Style Responsibility and Authority In a traditional company:
responsibility is never clear and there is endless fighting over escaping it
At Toyota: responsibility is always clear and there is endless fighting over increasing it The Chief Engineer says: “I have no authority.” Everyone else says: “The Chief Engineer is the most powerful
person in the company.”
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TPS Tools and Methodologies TPS Leadership
TPS
Toyota’s Philosophy
What is Toyota Production System (TPS)?
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Toyota Production System (TPS)
We never asked Toyota how did they build and manage their house of TPS?
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What is Lean Transformation?
Lean Transformationof
Tools and Methodologies
Lean Transformationof how we
Think and Manage
Lean does not work for us
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Knowledge and Skills
To know, to understand the meaning correctly and to be able to teach
Lean Knowledge
Kanban, Pull system, Jidoka, Supermarket, TPM, SMED, JIT, Kaizen, STW, 5S, WCT, VSM, Gemba, Takt Time, etc …
I know this!
Lean SkillsBe able to solve problems and advance the organization by using proper Lean Knowledge
Use Lean Knowledge to motivate people, achieve results, reduce costs, improve the operation and address business needs
Can you Play a Violin?
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How to Implement Lean
?
I know LeanEngineering driven
Hobby driven
Knowledge Driven
Kanban
Leveledschedule
Supermarket
SMED
PullTPMHeijunka
Jidoka
VSM
Business NEEDS driven1. USE KPIs to understand your
Current Status2. Set goals and objectives3. Start solving problems4. Check progress
and measureresults
B
ATrue North
“So what ?“
5 S
Poka Yoke
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How to Implement Lean
?
I know LeanEngineering driven
Hobby driven
Knowledge Driven
Kanban
Leveledschedule
Supermarket
SMED
PullTPMHeijunka
Jidoka
VSM
Business NEEDS driven1. USE KPIs to understand your
Current Status2. Set goals and objectives3. Start solving problems4. Check progress
and measureresults
B
ATrue North
“So what ?“
5 S
Poka Yoke
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Create a “Learning Organization”
2016
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TBP – Toyota Business Practices
2. PPS(Practical Problem
Solving)
1. Hoshin Kanri(True North – Management
Direction)
3. OJT(On-the-Job-Training)
4. Rapid PDCA(Plan-Do-Check-Act)
Toyota Way 2001
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TBP - Create a “Learning Organization”
1. Management directed initiatives – True North2. Utilizing Problem Solving Methodology3. Sustained through On-the-Job-Training4. Achieved using rapid PDCA by all associates
2. PPS(Practical Problem Solving)
1. Hoshin Kanri(True North – Management Direction)
3. OJT(On-the-Job-Training)
4. Rapid PDCA(Plan-Do-Check-Act)
Toyota Way 2001
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The Toyota Way
Continuous Improvement
Respect for People
Challenge
Kaizen
Genchi Gembutsu
Respect
Teamwork
Toyota Way 2001
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TBP – Toyota Business Practices
TBP was developed to practice the Toyota Way in everyday business around the world
ToyotaBusiness Practices
ToyotaProblem Solving
TOYOTA WAY
Concrete Actions and Processes
Drive andDedication
Toyota Way 2001
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TBP – Concrete Actions and Processes
1. Clarify the Problem2. Break Down the
Problem3. Set a Target4. Analyze the Root Cause5. Develop
Countermeasures6. See Countermeasures
Through7. Monitor both Results
and Progress8. Standardize Successful
Process
P
CD
A
ToyotaBusiness Practices
ToyotaProblem Solving
TOYOTA WAY
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• Customer First• Always Confirm the Purpose
of Your Work• Ownership and
Responsibility• Visualization• Judgment Based on Facts• Think and Act Persistently• Speedy Action in a Timely
Manner• Follow Each Person with
Sincerity and Commitment• Thorough Communication• Involve All Stakeholders
TBP – Drive and Dedication
ToyotaBusiness Practices
ToyotaProblem Solving
TOYOTA WAY
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Toyota Way - Drive and Dedication Customer First
Always think and act for the benefit of customers, and place their interests ahead of all others.
Subsequent processes are also considered our customers. Always Confirm the Purpose of Your Work
Constantly question the purpose of your work seeking your own answer.
Do not lose sight of the overall goal and purpose when focused upon a specific task.
Ownership and Responsibility Be aware that you are the main person who is responsible for your
work. Recognize the mission, value and pride in your work, and envision
your goal.
ToyotaBusiness Practices
ToyotaProblem Solving
TOYOTA WAY
Toyota Way 2001
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Toyota Way - Drive and Dedication Visualization
Promote visualization and clarify problems for everyone to understand.
Information should be shared on a timely basis for the benefit of all.
Judgment Based on Facts Without prejudice or preconception, investigate all the facts: go
and see the situation as it truly is. Think and Act Persistently
Think deeply and commit to the completion of a task with a strong belief in not giving up.
Speedy Action in a Timely Manner Be adaptable to customers’ needs, and fulfill them quickly. If necessary, use temporary measures until you can implement
countermeasures.
ToyotaBusiness Practices
ToyotaProblem Solving
TOYOTA WAY
Toyota Way 2001
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Toyota Way - Drive and Dedication Follow Each Process with Sincerity and Commitment
Be committed to follow the process without taking shortcuts. Listen to others’ opinions with an open mind. Possess a sense of responsibility towards your own actions.
Thorough Communication Thoroughly and sincerely communicate with stakeholders until they
gain deep understanding. Involve All Stakeholders
Involve relevant members and partners to increase knowledge and wisdom as well as to maximize the efficiency and output of the group.
ToyotaBusiness Practices
ToyotaProblem Solving
TOYOTA WAY
Toyota Way 2001
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TBP – Toyota Business Practices
1. Clarify the Problem2. Break Down the
Problem3. Set a Target4. Analyze the Root Cause5. Develop
Countermeasures6. See Countermeasures
Through7. Monitor both Results
and Progress8. Standardize Successful
Process
P
CD
A
• Customer First• Always Confirm the Purpose of
Your Work• Ownership and Responsibility• Visualization• Judgment Based on Facts• Think and Act Persistently• Speedy Action in a Timely Manner• Follow Each Person with Sincerity
and Commitment• Thorough Communication• Involve All Stakeholders
Drive and DedicationConcrete Actions and Processes
ToyotaBusiness Practices
ToyotaProblem Solving
TOYOTA WAY
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Changing the World. One Transformation at a timeThis presentation is an intellectual property of W3 Group Canada Inc.
No parts of this document can be copied or reproducedwithout written permission from:
Marek PiatkowskiW3 Group Canada Inc.iPhone: 416-235-2631
Cell: 248-207-0416
Marek.Piatkowski@rogers.comhttp://twi-network.com
Thinking win, Win, WIN
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