Evolution of lean tps - November 2016

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Evolution of Lean/TPS Retrospective

Thinking win, Win, WIN

Evolution of Lean / TPSRetrospective of Lean Management System

Marek Piatkowski – November 2016

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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

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Leaders continuously look for a magic pill or simple formula for success … but there is none !

So what should we do? 28-Dec-15

5

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The Most Studied Company in the World

1987

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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 House

Toyota Product

ion System(TPS)

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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.

1987

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History of Toyota Production System – Lean Manufacturing

Professors Jones and Womack of Massachusetts Institute of Technology (MIT) complete a 5 years study of the transportation industry and the effort documents the benefits of TPS calling it “Lean Production”. The book is entitled The Machine that Changed the World.

November 1991

Daniel T. JonesJames P. Womack

1991

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Toyota Product

ion System(TPS)

1991

2016

http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=DNZpqzqoc9otDM&tbnid=n2rcuH8EDDAx5M:&ved=0CAUQjRw&url=http://www.leanblog.org/2014/01/toyota-tour-thoughts-yes-they-have-opportunities-for-kaizen/&ei=2l-YU9-8E4GcyAS2qIGAAQ&psig=AFQjCNGptnkD-Mw-XWFeaY2L-P9zbTKe7g&ust=1402581304968182

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Lean is based on Toyota Production System - TPS

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Initially Lean started in the Automotive Industry

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Now Lean is implemented in any type of Manufacturing

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Lean can work in any type of Organization

Hospitals – large and small

Factories – old and new

All kinds of Government

In the Office Environment

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Lean can be implemented in any type of Processing Operations

Agriculture

Oil - ?

Mining

Chemical ProcessingConstruction

Lumber

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Your Company is not Toyota

My Company

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Your Company is not Toyota

So what do we do? How do we manage Lean Transformation?

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How do I Manage Lean Transformation?

The blind men and the elephant

Lean J ourney Starts here

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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.

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Toyota Production System (TPS)

We never asked Toyota how did they build and manage their house of TPS?

Taiichi OhnoCredited with realizing

the concept of the Toyota Production

System.

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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

?


Hobby driven

Knowledge Driven

Kanban

Leveledschedule

Supermarket

SMED

PullTPMHeijunka

Jidoka

VSM



and measureresults

B

ATrue North

“So what ?“

5 S

Poka Yoke

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Create a “Learning Organization”

2016

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Toyota Motor Manufacturing Canada

Cambridge, Ont. Woodstock, Ont.

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Cambridge WoodstockEstablished Jan 24th, 1986

Land Area 400 acres 1,000 acres

Plant Area 280,000 m2 (70 acres)

165,921 m2

(41 acres)

Investment C$6 billion

Team Members 8,600

Toyota Motor Manufacturing Canada

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Thinking win, Win, WIN30

T.M.M.C. Family

2015

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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)



Toyota Way 2001

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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



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



TOYOTA WAY

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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



TOYOTA WAY

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Lean Management System – Learning Forum Upon completion of this session, participants will have a better

understanding of the importance of the LEAN Management System of the key requirements and challenges to making it work.

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Lean Management System – Recommendations Break the stereotype in your Organization that having a problem is trouble

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The Toyota Way Continuous Improvement: Never being satisfied with the current

situation, and always pursuing the most practical and effective solutions.

Respect for People: fully doing our best for Toyota’s stakeholders by driving corporate success through the development of our employees.

Break the stereotype that having a problem is trouble. It is important to consider that any variation is hinting at a

problem and recognize it, no matter how small it may seem, we must work to solve all problems as if they are big problems.“No one has more trouble that the person who claims to have no trouble.”

(Having no problems is the biggest problem of all.)by Taiichi Ohno



TOYOTA WAY

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A Problem Solving “Culture”

Life in Manufacturing (Operations) consists of solving problems and implementing

solutions.

Accept a fact that you will have problems (deviation form norm) every day or you as a manger will “Create”

problems (challenges)for your Organization

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Lean Management System – Recommendations Break the stereotype in your Organization that having a problem is

trouble Set very clear Targets, Goals, Objectives and Expectations for your Organization

and remained your people of them continuously

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Toyota Way 2001

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Projects we need to work

on

Activities we can work on – when we

have time

Thinkgs we can work on – when we have

time

Working towards True North

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Ultimate Goals Ideal

Situation

Current Situation

Gap - Problems

Understand the connection between the companies ultimate goal and your job

Clarify the Problem

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Example – On-Time Deliveries

Ultimate Goals100%

Target 95%

Current Situation85%

Gap – 10%

Clarify the Problem

Understand the connection between the companies ultimate goal and your job

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trouble Set very clear Targets, Goals, Objectives and Expectations for your

Organization and remained your people of them continuously Stop looking at Lean Transformation as an extra activity on top of your daily work

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Problems with Lean Transformation Activities A common problem with Lean Transformation activities is that we

look at this as: An extra activity - something to do on top of my “Daily Work” Middle management says – this is nice, but I have no time for this, I

need to run my operation, I have targets to meet Operation people say – Lean is OK, but we have no input how

things are improved here, all these Experts are telling us what to do

Our biggest mistake is that we separate Daily Work from Lean Transformation – we call them “Projects”

We look at these two activities as something completely different – they continuously clash with each other.

We look at Lean Implementation as something that stops me from doing my daily work. And that is wrong.

A key to our success is to make Lean Transformation as a part of our Daily Business

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Organization and remained your people of them continuously Stop looking at Lean Transformation as an extra activity on top of

your daily work Standardized you Problem Solving Methodology and start solving problems

?


Hobby driven

Knowledge Driven

Kanban

Leveledschedule

Supermarket

SMED

PullTPMHeijunkaJidoka

VSM



and measureresults

B

ATrue North

“So what ?“

5 S

Poka Yoke

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Toyota Way 2001

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Problem Solving Methodologies

Describe the Problem

Capture the Current Condition

Analyze the Current Condition

Develop anImplementation Plan

Test Countermeasures and Evaluate Results

Follow-up and Standardize

DevelopCountermeasures

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Who, What, Where, When, Why and How

C lar i fy the P robl em

I n itial P rob lem Perception(L ar g e, v ag u e, co m p l icated p r o b lem )

T he "R eal " P roblem

L ocate A rea /P o in t o f C au se

PoC

D irect C au seW h y ?

C au se

C au seC au se

C au se

C ou n term easu re

R oot C au se

W h y ?

W h y ?

W h y ?

W hy ?

C auseI nvestigation

G r asp theS ituation

5 W hy ?I nv esti gati on o f

R o ot C au se

B asi c C au se & E ff ectI nv estigati on

Grasp theSituation

CauseInvestigation

Basic Cause & Effect

InvestigationAsk Why 5 times? Investigation of

Root Cause

TPS - Practical Problem Solving Process

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your daily work Standardized you Problem Solving Methodology and start solving

problems Teach your Organization to start using A3 reporting format to monitor a progress

of your problem solving activities

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THEME Root cause analysis

BACKGROUND

Countermeasure

Problem identification

Monitor Results and Standarize

Target

CME Assessment Project

In June of 2016 we began working with Woodbridge Foam in Kitchener Ontario. Using the process as shown below we plan to prioritize their business needs and build a foundation that will support the Woodbridge Production System (W.P.S.)

Method

prep team not in synch with production

Too many change overs

c/o timing not meeting staffing availability

14.28 hours/day lost waitingfor setup

Tool prep not performed

Tools are not ready Tools are not ready


Priority changes

schedule is not visual to change over team

Multiple c/o occur at same time



No instructions when to stop



timing of c/o's is random

c/o std timee is fixed at 45 mins.

no link betweenschedule and changeover manpower

jobs are over produced

Rush job required

Root Cause:No predictable and repeatable production plan

Prioritized assessment areas of concern1) O.E.E. (Productivity)2) Warehouse inventory levels (Safety)3) Missed shipments to customers (Delivery)

The prioritized point of cause identified as waiting for setup.

Increase the O.E.E. from 64% to 75% by year endCreate a stretch target of attai ning 80% to drive innovation

#1

Establish predictable and repeatable production plan by introduction of Pattern Production System

Plan for Every Part

Capacity PlanPattern Prod

InventoryRequirements

WarehousePlanning

Shop FloorControl

Availability

Pattern

Breaking down the elements of O.E.E. the availabilty section is our largest element of concern

Within the availability section we selected waiting for setup as our target area of concern as labour shortage was corrected

Wa iting for setup has fallen from #2 concern to #7

CL 69.6

78.4

UCL 84.5

94.6

LCL 54.6

62.2

49.65

54.65

59.65

64.65

69.65

74.65

79.65

84.65

89.65

94.65

99.65

Aver

age

8-Aug-16 - 3-Oct-16

Weekly OEE Pattern Production

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Title: Reduce Scratches in Assembly ( Leader: Mary )1. Background

3. Target

4. Analysis

Shop: Device-K Assembly

Update: Dec. 15, 2010

Coach

AndyDec. 15, 10

Manager

5. Countermeasures and plan

6. Result & next challenge

- Device-K is our next main product!- Increase in variety of mounting/casing types

- Quality is a key success factor in assembly as well as in the chip process

Device-K Sales Plan by Product TypeSales 380% # of Major

Types 3 10

Device-K Sales Plan by Product TypeDevice-K Sales Plan by Product TypeSales 380%Sales 380% # of Major

Types 3 10

# of Major Types

3 10

# of Major Types

3 10

2. Current state (Based on November data)

Actual output

First Pass Rate (FPR) target

Mp

Demand

Yield Rate targetYield Rate actual FPR actual

Actual output


Mp

Demand



Mp

Demand


Mp

Demand


Scratches are most often identified at inspection: 48%of assembly defects

End of November, 2008Metrics Target ActualOutput /Demand 100% 99.2%Yield Rate 97% 85.2%First Pass Rate (FPR) 90% 65.1%

End of November, 2008Metrics Target ActualOutput /Demand 100% 99.2%Yield Rate 97% 85.2%First Pass Rate (FPR) 90% 65.1%

Not improved in these three months!

92% of defects were caused by Assembly!

Bad chip

Assembly defects

Bad Chip vs. Assembly Defects

Bad chip

Assembly defects

Bad chip

Assembly defects

Assembly defects

Bad Chip vs. Assembly DefectsMost scratches are repaired by re-polishing = Waste!

re-polishing

NG:Scratches

Inspection

About 20 sec. /p

(1) Z eroscratches!(2) Reduce missed crimps of 12% FPR = 90%

* Based on November data

4-2. Trial-1: On-line inspection just after line #1 crimper

Exit of crimper On-line inspection!

4-3. Second observation: types of scratches

Straight28%

Rounded70%

Others2%

Fixing crimper head 4 also reduced missed crimp defects. Observed only in line #2 Next go see-2

Observed in all lines Punch press?

4-4. Hypothesis & go see-2: First step of assembly line #2?

From punch press Straight scratches are observed here!

Entrance of line #2

Blade spring

Small pimple!

#123

4

Action itemFix crimper head

Dec. 5th 12th 19th 26th Jan.

Fix blade springOn-line inspection Trial Prep. 2-shift inspection

Responsibility StatusDoneDoneOn track

Mary & Jack with Facility Team

JimmyMgr. Assembly

Reduce inventories between processes

Stop machines alternativelyMaintainImplement VM Team On

track

2nd week of Dec, 2008Metrics Target Actual

Yield Rate 97% 95.0%FPR 90% 90.2%

2nd week of Dec, 2008Metrics Target Actual

Yield Rate 97% 95.0%FPR 90% 90.2%

(1) Remaining Defects1) Scratches (2%)2) Missed crimp (1%) 3) Others

(2) “Why”after current countermeasures1) Broken head – why?2) Pimple – why?

#2#3

#1

#2#3

#1

#2#3

#1

4-1. Hypothesis & go see -1: Assembly line #2?

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Using A3 Report to Solve Problems

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

Who, What, Where, When, Why and How

C lar i fy the P r ob lem

I n itial P robl em P ercep ti on(L ar g e, v ag u e, co m p l i cated p r o blem )

T h e "R eal" P r obl em

L o cate A rea /P o in t of C au se

P oC

D irect C au seW h y ?

C au se

C au seC au se

C au se

C o un term easu re

R oot C au se

W h y ?

W h y ?

W h y ?

W hy ?

C auseI nvestigation

G r asp theSituation

5 W hy ?I nvesti ga ti on o f

R o ot C au se

B asic C a u se & E ff ec tI nvesti gatio n

Grasp theSituation

CauseInvestigation

Basic Cause & Effect Investigation

Ask Why 5 times? Investigation of

Root CauseTHEME Root cause analysis

BACKGROUND

Countermea sure

Problem identifica tion

Monitor Re sults and Standarize

Target

CME Assessment Project

In June of 2016 we began working with Woodbridge Foam in Kitchener Ontario. Using the process as shown below we plan to prioritize their business needs and build a foundat ion that will support the W oodbridge Production System (W.P.S.)

Method

prep team not in synch with production


c/o timingnot meeting staffing availability

14.28 hours/day lost waiti ng for setup


Tools are not ready Tools are not ready


Prior ity changes

schedule is not visual to change over team



Multiple c/o occurat same time

No instructions when to stop



timing of c/o's is random

c/o std timee is fixed at 45 mins.

no link between schedule and changeover manpower

jobs are overproduced

Rush job required

Root Cause:No predictable and repeatable production plan

Prioritized assessment areas of concern1) O.E.E. (Productivity)2) Warehouse inventory levels (Safety)3) Missed shipments to customers (Delivery)

The prioritized point of cause identified as waiting for setup.

Increa se the O.E.E. from 64% to 75% by yea r endCreate a s tretch ta rget of a ttai ning 80% to dri ve innovati on

#1

Establish predictable and repeatable production plan by introduction of Pattern Production System

Plan for Every Part

Capacity PlanPattern Prod

InventoryRequirements

WarehousePlanning

Shop FloorControl

Availability

Patt ern

Breaking down the elements of O.E.E. the availabilty section is our largest element of concern

Within the availability section we selected waiting for setup as our target area of concern as labour shortage was corrected

Wa iting for setup h as fallen from #2 con cern to #7

CL 69.6

78.4

UCL 84.5

94.6

LCL 54.6

62.2

49.65

54.65

59.65

64.65

69.65

74.65

79.65

84.65

89.65

94.65

99.65

Aver

age

8-Aug -16 - 3-Oct-16

Weekly OEE Pattern Production

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Elements of the A3 Process

The A3 Report Itself The A3 Review Process

Weekly (at least) status update and next step lesson

Plan

Do

Check(Review)

Act Management Cycle

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problems Teach your Organization to start using A3 reporting format to

monitor a progress of your problem solving activities Train your Managers and Supervisors to become Problem Solving Mentors

(Coaches) – Subject Matters Experts (SME)

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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

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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Chairman of Toyota Motor Corp. and former President of Toyota Motor

Manufacturing, KY and Toyota Motor Corp.

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Leadership in a Lean Environment Lean 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 problem solving skills Lean Leadership is exclusively about people – you do not lead

machines or processes, you lead people

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monitor a progress of your problem solving activities Train your Managers and Supervisors to become Problem Solving

Mentors (Coaches) – Subject Matters Experts (SME) On-the-Job Training – get everybody involve in Lean Transformation by Solving

Problems using PPS methodology and Lean Tools and Methods

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Toyota Way 2001

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A Quality Circle is a small group of 6 to 12 employees doing similar work who voluntarily meet together on regularly basis (one hour per week, paid time) to identify improvements and solve problems in their respective work areas

Quality Circle members are trained how to use techniques for analyzing and solving work related problems, how to present their solutions to management and implement continuous improvement ideas.

They used such statistical quality control techniques as Pareto diagrams, cause and effect diagrams, control charts, flow charts …

Quality Circle meetings are lead by a Leader, usually an area Supervisor. The concept of Quality Circle is primarily based upon recognition of the

value of the worker as a human being, as someone who willing to contribute to his job, his wisdom, intelligence, experience, attitude and feelings.

The Quality Circle philosophy calls for a progressive attitude on the part of the management and their willingness to make adjustments, if necessary, in their style and culture

Quality Circles

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Why Quality Circles? or Improvement Teams Quality Circle Program structure:

A small group of three to twelve people Meeting regularly for about an hour per week on paid time Under the leadership of their own supervisor To identify, analyze and solve problems in their work Presenting solutions to management using A3 format Implementing the solutions themselves

It creates conditions, environment and a structure to engage employees in Continuous Improvement activities, Kaizen and Lean Transformation

Quality Circle implies the development of skills, capabilities, confidence and creativity of the people through cumulative process of education, training, work experience and participation.

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Lean Management System – Learning Forum

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monitor a progress of your problem solving activities Train your Managers and Supervisors to become Problem Solving

Mentors (Coaches) – Subject Matters Experts (SME) On-the-Job Training – get everybody involve in Lean

Transformation by Solving Problems using PPS methodology and Lean Tools and Methods

Create a Problem Solving “culture” in your Organization.Stop looking at Problem Solving as a “Process”.

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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 told to do Things are working 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)

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Learning about Toyota’s Management Style If you expect “bottom-up” - I will not find that When you expect “top-down” - I will not find that either You will find a dynamic system in which processes are almost

always well-defined and individual responsibility almost always clear

“Authority” is rarely an issue - emphasis is on “doing the right thing,” not “establishing authority”

Senior management never tells you what to do – they ask for your opinion

If you are right – “this is a great idea” If you are not right – “mhhmm maybe, did you think about this …”

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Managing at Toyota Managers in Toyota never say “Yes” easily; they rarely even say,

“Why not?” In our companies managers are forced to explain why to their

subordinates when saying to them, “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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Changing the World. One Kaizen 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

[email protected]://twi-network.com

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Presentations in this Workshop

1. Log in to: www.slideshare.net

2. Type in my name in search area:

Marek Piatkowski3. Select a

presentation you want to see

4. Learn and Enjoy