Cap.6 (1)mcp

CHAPTER 61

Utilizing Rigorous Standardizationto Reduce Variation and

Create Flexibility andPredictable Outcomes

"Today's standardization is the necessary foundation on which

tomorrow's improvement will be based. If you think of'standardiza-

tion' as the best you know today, but which is to be improved tomor-

row-you get somewhere. But if you think of standards as confining,

then progress stops."HENRY FORD

STANDARDIZED WORK IS ONE OF THE CORE DISCIPLINES of the Toyota Produc-tion System in which jobs are specified down to the second to match takttime-the rate of customer demand. The question here is whether thisdiscipline can be applied to engineering work. Takt time standardizationmay lend itself to some routine tasks, such as the simplest CAD work, butengineers who move from big task to big task facing multiple uncertain-ties cannot standardize work in a way that specifies exactly what they willbe doing every five minutes.

Indeed, when the authors have suggested to engineers that they needto standardize their jobs, the responses were predictable: "We are creativeengineers;' "We do not do repetitive manual work;' "We need the freedomto schedule our work day and to be creative:' To a certain degree, it is easyto understand why product development engineers are unable to perceivehow standardization and creativity can work in tandem. On the otherhand, Toyota's PD process shows that variations of standardization actu-ally give program teams a great degree of flexibility and enables speed, pre-cise execution, improved quality through robust reliability as well assystem predictability, and waste elimination that reduces cost.

Standardization, coupled with a culture of discipline are the mostpowerful weapons a product development organization can bring to bear

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Section Two: Process Subsystem

against the destructive power of variation identified in our previous dis-cussion of queuing theory. In fact, standardization underpins and enablesmuch of Toyota'ssuccessin product development. It is its very backbone.Rigorous design standardization supports the power of platform reusabil-ity, allowsToyotato share critical components, subsystems, and technolo-gies across vehicle platforms, building in lower cost and higher quality.Standard architecture enables consistent body system performance, mini-mizes test requirements, and underlies consistent lean manufacturingprocesses. Standard development processes build trust, enable develop-ment speed through precise synchronization and are key to successfullymanaging the very complex process of developing new vehicles.Standardmanufacturing and testing processes enable consistent quality and excel-lence in execution of lean manufacturing as well as make clear the upfrontconstraints on product development. Finally,standard engineering com-petencies ensure Toyota'sability to consistently develop outstanding engi-neers, produce consistently high levels of product development processperformance, and are the basis for professional trust and collaboration. Farfrom diminishing the autonomy and creativityof engineers, when coupledwith Toyota'spursuit of perfection, standardization is the very basis for alevel of professionalism, pride, and an invigorating environment of tech-nical collegialityand mutual respect unmatched in their industry.

Three Categories of Standardization

As noted in Chapter 4, there are three broad categories of standardizationin the lean PD systems: design standardization, process standardization,and engineering skill-set standardization. Each category is briefly definedbelow and then analyzed in the context of Toyota'sPD process.

1. Designstandardization.This is standardization of product/ compo-nent design and architecture. It includes the use of proven, stan-dard components shared across vehiclemodels, building newmodel variations on common platforms, modularity, and designfor (lean) manufacturing standards that creates robust, reusabledesign architecture.

2. Process standardization. This involves standardizing tasks, workinstructions, and the sequences of tasks in the developmentprocess itself. This category of standardization also includes thedownstream processes that test and manufacture the product.

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Utilizing Rigorous Standardization to Reduce Variation andCreate Flexibility and Predictable Outcomes

3. Engineeringskill-setstandardization. This is standardization ofskills and capabilities across engineering and technical teams. It isbased on a deep commitment to people development and growththrough demonstrated competencies. It is quite powerful andoften overlooked.

Category One: Design Standardization andEngineering Checklists

Interestingly, many of Toyota'sdesign standards are not given as specificparameter requirements or "thou shalt or shall not" directives. More typ-ically,these standards are concerned with ratios and physicsdriven. Sort of"if, then" statements based on proven physical realities that give Toyotaengineers a great degree of latitude and creative freedom while simultane-ously maintaining lean manufacturing requirements. Engineers are notconstrained by "point-based" parameters; instead, design standards pro-vide a reliable guide as they work to identify optimal sets of solutions.

Design standards are embodied in specific, detailed part and processchecklists,reusable components and standard subsystem, and vehiclelevelarchitecture that defines sets of best cross sections (often referred to ascommon architecture) for each part. The power of common architecturestrategy was discussed in Chapter 4. The discussion below addresses theuse of engineering checklists as a key tool for design standardization.Chapter 15elaborates on this concept through specificexamples and a dis-cussion of trade-off curves that provide a graphic representation of howthey are used by engineers to achieve desirable solution sets.

Engineering checklistsare certainly not unique to Toyota. In all prob-ability, such checklists came to Toyota with the aerospace industry chiefengineers the company recruited as Japan's aerospace industry wasdeclining. (SeeChapter 7.) Checklists are simple reminders of things thatshould not be left out. They can be powerful or worthless, depending onhow they are used. If updated regularly and referred to diligently,they arepowerful. If stagnant and unused, they are worthless. Unfortunately,many companies have not developed the discipline to maintain or utilizethem effectively.

Ideally, engineering checklists are an accumulated knowledge basereflectingwhat a company has learned overtime about good and bad designpractices, performance requirements, critical design interfaces, critical toquality characteristics, manufacturing requirements as well as standards

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that commonize design. Checklists at Toyota are highly visual, part spe-cific, incredibly meticulous and comprehensive and may, in fact, seemimpossibly detailed to those unfamiliar with the level of precision Toyotaexpects from its engineers. Checklists for complex parts may include hun-dreds or more parameters. Interestingly, as detailed and technical as thechecklists are, most engineers we interviewed knew not only their ownpart checklists,but those of related parts and the checklists for the associ-ated manufacturing processes by rote. This was clear evidence of consis-tent, long term use and a sense of ownership.

Though based on science, the real world practice of engineering is anart form that relies on tacit knowledge gained through experience andjudgment in considering multiple variables that interact in complex ways.As a result, a best solution cannot necessarilybe predicted in advance. It islearned over time through experience and is guided by the spirit of kaizen,which postulates that there is always an opportunity to learn more andthat learning is an ongoing process. This spirit of engineering kaizen isdriven by the never-ending pursuit of technical excellencethat underliesconsistent checklistsutilization, validation, and improvement.

A company that cannot standardize will struggle to learn from experi-ence and is not truly engaged in lean thinking. Indeed, any company thatsimply tries new things without standardizing along the way is "randomlywandering through a maze;' repeating the same errors, relying on littlemore than undocumented hearsay and a wide range of opinions among itsemployeesonly to eventuallydiscoverthat "it has been here before:' Toyotauses a systematic and scientificapproach to product development. It tests,evaluates, standardizes, improves, and retests, scrupulously following thePlan-Do-Check-Actcyclethat was introduced to the company decades agoby Deming. It then standardizes "today's" best practice. As it accumulatesnew information and new experiences, these are used to modify currentshared standards and reborn as a future "today's" best practice.

Toyota utilizes standards-embedded checklists from the very start ofthe program during the styling process through to launch at the assemblyplant and everywhere in between. In the studio, designers and seniorengineers from Body Engineering and Production Engineering work col-laboratively through part-by-part solution sets, utilizing design andprocess checklistsas their guide until a fully feasibledesign emerges fromthe process. In this wayToyota is able to design a feasibleproduct the firsttime unlike NAC where engineers typically reviewed nearly completeddesigns on an ad hoc basis, virtually guaranteeing downstream engineer-

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ing changes. In the launch readiness phase checklists are utilized to assuredie and tool accuracy and to be certain that tools, dies, and manufactur-ing equipment are capable of maintaining critical part and assemblycharacteristics.

What this means is that Toyota has a plethora of checklists that, indi-vidually and collectively, reflect every part, every rule, every standard wayof processing a given part, and every graph that illustrates acceptable andunacceptable ranges. In connection to PD, each Toyota engineer has booksof standards that are checked off as each item for each design is consid-ered. When eXplaining this structured and systematic checklist processduring seminars or classes, the authors have heard a number of interestingand disturbing comments. In a classroom setting, hands instantly go upand invariably, someone will pose a variation of the following question:

In this day and age wouldn't it be better to computerize the check-lists? We heard about the Toyota approach, and we are planning ondoing them one better and developing an online knowledge man-agement database of all the standards cross-referenced on a securecorporate intranet. We have a department set up to develop a state-of-the-art knowledge database. Is Toyota moving in that direction?

This is all rather moot. To begin with, Toyota has already moved inthat direction and has computerized most of its checklists and standards.Secondly, creating a computerized knowledge database is not a guaran-tee of success, and in fact, misses the point: you still might find the data-base is worthless.

In essence, the question of how checklists are constructed and main-tained, whether in books or in a computerized database, is secondary.Theprimary questions should consider the issue of roles and responsibilities.Who will feed the checklist?Who will use it? What are the specificrespon-sibilities and accountabilities for updating the checklist and using it? AtToyota, this is intimately connected to an organizational structure(described in Chapter 8) that operates on the basic principle that "teamwork is the key to getting high quality work done but some individualalwaysneeds to be responsible:' Responsibility for checklists is vested infunctional groups that are organized down to the subsystem level.

For example, the door engineering supervisor is responsible for main-taining the door engineering checklist and ensuring that it is used by alldoor engineers. Body engineering and production engineering share

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responsibility for door checklists.A production engineering supervisor isresponsible for checklistson how the door willbe processed and the designfeatures that make it producible. At the beginning of a new program, thedoor engineer will ask for the latest checklist from production engineeringand considers it in tandem with the checklist from body engineering.Incorporating the production-engineering checklist into the design is nowthe door engineer's responsibility.

In short, the people doing the work are responsiblefor maintaining andusing the checklists and, in lean thinking, it is never a corporate IT function.The checklist is not the amorphous responsibility of "engineers:' It is theresponsibility of a specificengineer responsible for each part of the vehicle,who must coordinate the efforts of all engineers working on that part ofthe vehicleand incorporate that knowledge, information, data, learning-or whatever you may want to call it-into the checklist.

As discussed in Chapter 5, Toyota'sflexible capacity strategy relies onwholly-owned subsidiaries and skilled technicians who work out of poolsarriving JIT to the product program. Rigorous process and design stan-dards allowboth subsidiary engineers and technicians to ramp up quicklyand become almost instantly productive on the program. Because thesetechnicians specialize by part, they are very familiar with relevant stan-dards. They are able to apply the checklists, master cross sections,andstandard locators to the design space, which is provided by the surfacescans from the clay, and K4 body structures drawings, to produce finaldesignsthat reflect the new stylingand performance intent of the new pro-gram. At the same time, they are able to retain proven part geometry thatwill maintain performance levels for such things as crash, NVH, and, ofcourse, manufacturability. This reduces the number of physicalprototypesthat need to be tested. It also leads to far fewer late and expensive engi-neering changes,driving a lot of waste from the PD process. Having highlyexperienced engineers and technicians working with rigorous standardiza-tion tools is fundamental to Toyota'sability to deliverhigh quality designsrapidly and manage its flexible capacity strategy. A number of checklistexamples are provided later in this book.

Category Two: Process Standardization

Using this second category of standardization enables true concurrentengineering and provides a structure for synchronizing cross-functionalprocessesthat enables unmatched vehicledevelopment speed. A standard-

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ized development process means standardizing common tasks, sequenceof tasks and task durations, and utilizing this as the basis for continuousproduct development process improvement. Process standardization is apotent antidote to both task and inter-arrival variation discussed in theprevious chapter. Process standardization is the only way to know reliablywhat other functional organizations are doing and when they do it. It ishow interdependent processes/organizations know specifically whatinputs are required from each other and when they are needed. Finally,strict process discipline coupled with standard development processes arethe only conceivableway to run a multiproject "development factory" andis absolutelyfundamental in gauging the performance and progress of anyindividual program

As mentioned in the discussion in Chapter 5 on process logic, thelean PD process centrally controls high-level standard process require-ments to guarantee synchronization. For Toyota (see Chapter 4), thismeans that macrolevel milestones and timing are utilized across differentprograms and that each individual functional-organization levelcontrolsthe detailed, working-level processes. By leveraging both of these stan-dardized structures, detailed, program-specific schedules at the workinglevel are developed.

By contrast, NAC uses a corporate staff group to standardize mile-stones at a relativelyhigh level with a great deal of detail about all func-tional organizations results that must occur by these milestones (e.g.,"stage-gatemodel"). It is the responsibility of the program and functionalteams to figureout how to accomplish this. Whereas Toyota'svarious engi-neering organizations each standardizes the means to engineer the prod-uct based on the requirements of a central framework, NAC corporatestaff attempts to standardize only the ends for the entire product develop-ment enterprise.

Without rigorous standardization and common architecture, NAClacks an effective flexible capacity strategy, resulting in constant bottle-necks at critical resources throughout the PD process. NACdoes use sup-plier engineers or outsource engineering work, but because it does notstandardize skills, design, and process, it often experiences poor resultsand extremely high transactions costs which it blames on their suppliers.

Having standardized processesguiding detailed work at the functionallevel is key in enabling flexiblecapacity and levelingworkload. Without it,LPDS Principle 3 of creating leveled flow would not be possible in prod-uct development. It is wellknown in lean manufacturing that stability is a

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requirement for flow and this is also true in product development. Stan-dardization provides the stability,consistent expectations and levelof pre-dictable outcomes as the necessary foundation for flow.

One perhaps overlooked benefit of a standard development process isthat it contributes to more precise communication and greater under-standing across engineering organizations by providing a common frame-work for discussion.

Toyota's Standardized Process for Production Engineering

Because of a reliable standard process, at the same time Toyota body engi-neers begin to work with digitized surface data from the clay model, pro-duction engineering is able to start its work on detailed process design. Diedesign, fIxture design, and processing/binder development groups alsobegin preliminary activity at this time. The various Production Engineer-ing organizations synchronize their activities with the evolution of thepart design to maximize the utility of sketchy and partial design informa-tion to create a synchronous evolution. By utilizing a standardized processthat works only with stable aspects of the part design as they become avail-able, the Production Engineering Department creates effIcient processflow through concurrent engineering and simultaneously eliminateswasteful downstream rework. This highly synchronized approach to con-current engineering is vital to protect against the all too common practiceof trying to accomplish too much too early with partial or prematuredesign information, which is likely to change and cause rework and waste.In addition to the ubiquitous checklists discussed earlier, Production engi-neers also employ senzu. Senzu are very detailed manufacturing drawingsthat have been created for each part. Senzu are updated at the end of eachprogram, shared across functional specialties, and contain all manufactur-ing information, best practices including manufacturing geometrychanges, locators, weld locations etc., accumulated for a specific part.

Toyota's Die Engineering

During this intense period, the die engineering group practices a flexiblecapacity strategy, which includes the use of trainees. Because the lean PDprocess has broken down the complex die engineering challenge into manystandardized subroutines, and because solids databases provide standard-ized components and simultaneous access to the designs, using computer-

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aided die design, designers with varying degrees of expertise can work onthe same design at once. As a result, designs are completed more quicklyand flexible human resources can then be transferred to work on other

parts as they become available. Parts availability is especially importantbecause in order for body engineering to achievefinal data releaserequire-ments, some parts will be completed before others. Furthermore, becausethese parts are availableto production engineering through a shared data-base, they can be pulledas the engineers are ready to work on them.

As noted above, cross-functionally synchronized standard processesenable die designers to start on parts with incomplete data. As each partdesign is completed, die designers can pull and complete it. At this point,die design trainees can carry out the die designing tasks that require lessskill. These trainees then move on to assist another die designer. Thisprocess is possible only because standardization mutually supports allthree lean PD subsystems-process, tools and technology, and people.One of the key enablers in establishing this kind of standardization is thesenzu. In the case of dies, the senzu details such things as binder shape,overcrown, overdraw, and radii requirements. Collectively,senzu are partand vehicle specific references that are critical to stamping engineeringperformance in the entire PD process.

Process and Binder Development

Early in the process, in conjunction with the final phases of vehiclestyling, standard manufacturing processes and common part architectureenable preliminary binder development to be accomplished in the pro-cessing/binder development area. The binder is the part of the first form-ing die that holds the sheet material in place while forming the part. It iscrucial to a quality stamping process and can be quite challenging forcomplex geometries. This process often involves formability assessment,utilizing formability simulation and Finite Element Analysis (FEA). Infact, because there is not process or design standardization, NACis forcedto perform FEA on all stamped parts, creating a huge bottleneck in theprocess at this limited resource. However, in the ToyotaPD process, char-acterized by standardized part geometry and manufacturing processes,less than one-third of the stampings require FEAof any type. Eliminatingthe need for FEA for two-thirds of all parts removes the potential forbottlenecks and associated queues and variability from the PD process. Italso improves average throughput times and significantly reduces costs.

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This also strengthens competitive advantage in the lean PD process of thenext product development phase.

Toyota's LeanTool and Die Manufacturing

In this phase, in which tools are cast, machined, assembled, tried out, andapproved, Toyota's lean manufacturing principles are truly brought to bearon the product development process because building tools and dies is a formof manufacturing. Extremely accurate and detailed standard die designsallow Toyota to employ an adapted form of lean manufacturing principles atthis point in the PD process that is a powerful competitive advantage in a leanPD system. On average, a large set of dies, such as those required for bodysides, will require less than four months for casting, machining, construction,and preliminary tryout at the die shop. Because they are still utilizing a craft-based process for die making, most of Toyota's competitors require 10 to 12months for the same set of tasks. The die shop will then ship them to thestamping plant for home-line tryout, which includes not only final die tryoutbut also tryout time for all the check fixtures and automation required forfinal production stampings. This takes up to an additional one to twomonths, in increments of six to eight hours once or twice per week. Toyota'shigh velocity die development capability combined with part design stan-dards and effective use of sophisticated virtual tools has also allowed them toeliminate the need for most prototype tooling-a huge cost and time saver.Although Toyota has significantly faster times on special projects, the discus-sion below focuses on the typical time frame it takes for designing dies andcompleting tooling in a standard process.

Typical Time Frames for Lean Tool and Die Manufacturing

Designers classify all dies in categories ranging from AO to D. Assigned toeach category is a specific line of milling machines, construction bays, andspotting presses. Those who have studied TPS will recognize this as theidentification of product families with dedicated flow lines. AOare large dieswith class one (outer) surfaces, A dies are large dies with unexposed sur-faces, and so on to D class dies, which are smaller parts produced on pro-gressive dies. Dies are assigned to the smallest possible line of equipment(right sizing). These die categories allow for standard procedures and stan-dardized times that make scheduling more accurate and outcomes morepredictable. To assist in visual management and to make all participants

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aware of scheduling requirements, the plant keeps and maintains largeschedule boards that are both task and department -specific. These boardstrack progress in hourly increments and are checked by the plant manage-ment team daily. Once again, the lean standardization in the PD processworks to reduce process variability and thus improve throughput times.

Designers perform virtual checks on the die designs against standards andthen uplink the design to a virtual simulation system (digital 3-D simulationof the complete die set), to ensure clearances, functionality, and productionefficiencies. These designs are then utilized to drive standardized workinstructions in the die construction phase and are the models used by manu-facturing to machine die patterns. This step eliminates the need for physicalreviews. Toyota pattern timing is one week or less and die castings require onlyan additional ten days. In contrast, Toyota's North American competitorsrequire three weeks for patterns and four weeks or more for castings.

Toyota Die Machining

Toyota's accurate and highly detailed die designs and standardized diemanufacturing process allows the company to do the vast majority of diemanufacture on precision milling machines, which substantially reducestime spent on handfitting and reworking die details, and in lengthy dietryout, advantages Toyota's North American competitors do not have.Toyotahas also patented a number of specialized cutters to maximize theefficiencyof its machining operations, adding an even greater element ofprecision, speed, and predictability to its lean die manufacturing. Byfocusing on precision machining, Toyota has completely eliminated sev-eral secondary operations, such as the hand polishing and die fittingrequired in traditional die manufacturing. This lean die manufacturingapproach allows Toyota to apply additional lean methodologies such asSMED (single minute exchange of dies) to its machine setup operationsand JIT cutter kit arrival to maximize machine value-added time. Detailedschedules in hourly increments are posted next to the machines and main-tained by the operators. As in pattern construction, during mqrning plantwalk arounds, the plant manager and the team reviewthese schedules.

Toyota Die Construction

After machining, each die detail or component is shipped to the appropri-ate construction cellin the construction bay corresponding to its category

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classification.There are five separate construction bays, each containingseveralphased "lines" made up of multiple stations or cells,each of whichis responsible for a portion of the construction process. Die details andpurchased components arrive at the right cell at the right time to keep theconstruction process flowingforward. Just as in an assemblyline, each cellcompletes a portion of the construction work, with the die moving on tothe next cell for the next step in the process. Work procedures are thor-oughly standardized in detail and each cell's task times is equalized (asmeasured in days) so that there is synchronized movement or flowthrough the construction department. This reduces variation, makes out-comes much more predictable, and enables people to see die constructionstatus at a glance.Scheduleboards are posted throughout the constructionbays and all participants are aware of scheduling requirements and workto meet them.

Each cell is self-contained with all the assembly tools and perishablesupplies (such as screwsand dowels) that are needed in a particular opera-tion organized and located near the point of use. Die locations are paintedout on the floor, all hand tools and machines are in place, and benches withlabeled racks and drawers are set around the working area. Air tools aresuspended by retractable lift assist equipment; they are within easy reachwhen needed and recoil out of the way when not in use. Even purchasedcomponents arrive just before they are needed, so die makers do not haveto leave their cells to search for anything. Die construction personnelresemble race car pit crews each busily executing predetermined taskssimultaneously with incredible precision. Kaizen is ongoing. For example,one kaizen focused on a construction innovation that eliminated flippingover the die during assembly-normally a time-consuming operation thatrequires a crane.

Die makers are cross-trained in construction tasks and also in tryout.Individualdie maker skilllevelsare posted on boards in the department. Payis linked to skilllevel,and all die makersare on salarybut paid for ov:ertime.Die makersusecustomizedchecklistsfor each cellin eachbay,both as a pro-cedural referenceand a quality assurance tool. These checklistsserve as theprimary guide for the cellleader'ssign-offof each die before it movesto thenext station. These "sign-offs"by construction personnel are the primaryform of quality control during die construction. As with pattern construc-tion, no paper drawings of die designs are required: All die makers aretrained to use the CAD system, and all die design data is availableon theCAD computer located near the cell.Die designersand simultaneous engi-

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neers visit construction bays regularly to work with die construction per-sonnel to identify problems or ways to improve designs and methods.

Toyota VehicleAssemblyEngineering

Vehicle assembly engineering is a part of the production engineeringorganization and is fully integrated with the die engineering group atToyota. Their challenge is to design tools and processes to assemble thestampings into a vehiclebody or body in white. This is a complex process,requiring large stampings to be precisely located, held in place, and usu-allyspot welded together. Closure subassembliessuch as doors, hood, andlift gates have an additional step of hemming in which a flange from theouter panel is hemmed or crimped around the flange of the inner panel inorder to secure them together before being mounted on the vehicle. Thisrequires the design and manufacture of complex and extremely expensivefixtures, subassembly cellsand body assembly lines.

Bystandardizing locators, checkingpoints, weld standards etc., Toyotawas the first to be able to design starnpings and assemblies to standardsthat support flexible assembly operations that allowed Toyota to buildmultiple body styles on the same line. In a more recent development tothat process Toyotaintroduced Global Body Lines through their Blue Skyproject that took flexible body assembly to a new level. This projectrequired intense collaboration between both Production Engineering andBody Engineering to update design and process standards to support thisrevolutionary innovation. According to Atsushi Niimi, former Presidentand CEO of Toyota Manufacturing North America, the new systemreplacesthe fiftypallets required for each body style in the old systemwithonly one master pallet tool each. This new pallet tool looks something likea ski-lift and locates the body from the inside on programmable locators.This system improves over-all body quality, reduces the number of weldstations required, and dramatically increases manufacturing flexibility.Now eight different bodies can be assembled on the same line by changingonly a single master pallet. Niimi-san claims that new body shop installa-tion costs for new programs have been reduced by 50 percent, spacerequired is reduced by 50 percent, and the cost of adding another body toan existing line or a new top hat program is down by 70 percent. This isthe power of innovation. But it would not be possible without engineeringorganizations working together collaboratively to create effectiveprocessand design standards and a culture of discipline to maintain the gains.

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Toyota has installed the GBL worldwide. Consequently all vehicles are nowdesigned to support this standard assembly process.

Category Three: Standardized Skill Sets/Competence

Most companies considering standardization seldom think of standard-ized skill sets. Yetthis is an essential principle for creating a lean PD sys-tem. It builds team integrity, enables incredible development speed, anddrives task variation out of the development process. Managers havemuchgreater flexibility in assignments and both managers and team membersalike can have more confidence in performance expectations. Toyota'sculture of demonstrated technical excellence is fundamental to creatingprofessional trust and high-performing teams in any environment. Thissection of the chapter highlights some of the practices that lead to consis-tent or standardized skill sets at Toyota,beginning with the hiring process.A more detailed discussion of the benefits of the people developmentprocess is presented in Chapter 9,which deals with the seventh LPDSprin-ciple: developing towering technical competence.

Aftera lengthyand rigorous reviewprocess,Toyotahires only about 1.1percent of professional candidates applying for engineering positions(Kramp, 2001).Once hired, engineers followa standard, skills-acquisition-based personnel development process from day one. The process focuseson demonstrated competencies and intensive technical mentoring foradvancement: A rookie engineer can expect to undergo an intensive two-year on-the-job training period before moving up to first-level engineer-ing rank. Toyota invests three to four years in each new engineer beforehe or she becomes a serious team contributor. Within the industry, this isa significant investment. After this initial period, a body engineer canexpect to spend fiveor six more years within this same technical specialtybefore being considered a first-rate engineer. During the approximatelyeight-year development period, engineers are "interviewed" four timesper year, and technical areas of improvement are assessedusing standard-ized skills inventories. Training is mostly on the job and special care isgiven to the assignments that an engineer receivesto be certain he or shewill have the opportunity for continued technical growth. An action planis developed through Hansei (reflection) to address shortcomings.Among the criteria used to evaluate Toyota engineers is successful adher-ence to process and standard methodology, which further develops eachengineer's standardized skill sets.

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A new engineer's career path consists of experiencesthat develop deeptechnical competence, while slowly climbing the technical hierarchywithin each functional department, and is a direct result of engineersbeing rewarded for technical achievement. The engineer's boss usuallyknows how to do the job better than the engineer; he or she also knows thestandardized process for doing it, which enables the leadership principle ofteaching and mentoring. The lean PD system depends on mentoring fordeveloping talent. To support mentoring, Toyota creates an engineeringapprenticeship environment in which highly technical, tacit skills arehanded down from one generation to the next, thus basing professionalgrowth on demonstrated competence in the real world.

Conclusion

Thischapterconcludesthe discussionof the firstLPDSsubsystemprocessand its four principles within the broad framework of the product devel-opment system, which was outlined in Chapter 2 as a sociotechnical sys-tem (STS) with three primary subsystems: 1) process, 2) people, and 3)tools and technology. In STSterms, body engineering was used to showthe technical system of processes-all the tasks and sequences needed tobring a body design from concept to start of production. In developingthis section of the work, we emphasized how raw material consists ofinformation, customer demands, past product characteristics, competitiveproduct data, and engineering principles that are transformed through thelean PD process into the complete engineering of a product. Similar,if notstronger, emphasis was placed on the connection between lean develop-ment and lean manufacturing. In addition, the authors have endeavoredto show how the first LPDS subsystem and its principles define a com-pany's value stream map as how information flows, stops, gets rerouted,and sits in queues. The next chapter examines the second lean PD sub-system, People,and LPDSprinciples fivethrough ten.

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LPDS Basics for Principle Four

Utilize rigorous standardization to reduce variationand create flexibility and predictable outcomes

In a lean PDsystem, you need to standardize products, processes,and competence to create a foundation for flexibility and speed.Standardization is critical to the LPDS because it underpins manyof the other LPDSprinciples by reducing variation, subsequentlycreating greater flexibility and more predictable outcomes. In LPDS,there are three types of standardization: design standardization,process standardization, and skill-set standardization, all of whichare necessaryto drive out waste and achieve a truly lean system.Design standardization is manifested in engineering checklists,standard architecture, and shared/common components and plat-forms. Processstandardization refers to both the development andmanufacturing processesand is housed in individual componentdevelopment plans (senzu) and detailed manufacturing processplans. Standardized skill sets are developed through carefulmentoring, strategic assignments, and periodic assessments ofdemonstrated competencies. The functional organizations own,maintain, continuously improve, and execute standardized designs,processes,and skill sets.

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Cap.6 (1)mcp