Principles of Lean

8/19/2019 Principles of Lean

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The ToyotaWay

by Jefrey Liker

14 Management

Principlesfrom the World’s

Greatest Manufacturer

ENMA 6040: Lean Systems

Overviewerive! "rom#

1ENMA 6040: Principles of Lean

Copyright 2010All rights reservedMar Polc!ynsimhp"techforge#gmail"com


2/27

is$%aimer:

•$oots of lean manufacturing are almost a hundred years old"

•Concepts have evolved signi%cantly over the decades"•&ften associated 'ith the (oyota Motor Corporation

•Many documenters of )(he (oyota Way*"

•Many descriptions and analyses"

•+ee, for e-ample, .ino and others"

•/ier is one of the est no'n and highly respected

documenters

•/ier seems to have invented the term )lean*"•.ere, 'e 'ill e-amine his 14 principles analysis as an

e-ample3

•ut many e5ually6valid descriptions e-ist"

• (here is no one )right 'ay* to vie' lean, no ile, 7oran, etc"2ENMA 6040: Principles of Lean

http://../6040ReadingAssignments.htmhttp://../6040ReadingAssignments.htm


3/27

is$%aimer & 'art (:

We’re going to go over lots of stu8

aout lean real fast here"

(he idea is to provide an initial introduction to terms and

concepts"

We’ll spend the rest of the semester 9eshing this out"

:on’t panic;


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The Toyota A))roa$h : 4's

/ong (erm '*+LOSO'*,

(he right '-O.ESS 'ill produce the rightresults

Add value to theorgani!ation ydeveloping your

'EO'LE and'A-TNE-S

Continuouslysolving root

'-O/LEMS

Principle 1

Principles 26>

Principles ?611

Principles 12614



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Toyota’s 14 Management Principles

1. Base your manaemen! "ecisions on a lon !erm p#ilosop#y$ e%en a! !#e e&pense of s#or!

!erm financial oals.

2. 'rea!e con!inuous process flo( !o )rin pro)lems !o !#e surface.3. *se +pull, sys!ems !o a%oi" o%erpro"uc!ion.

4. Le%el ou! (or-loa" #ei/un-a.

. Buil" a cul!ure of s!oppin !o fi& pro)lems$ !o e! uali!y ri#! !#e firs! !ime.

6. !an"ar"ie" !as-s are !#e foun"a!ion for con!inuous impro%emen! an" employee

empo(ermen!

5. *se %isual con!rols so no pro)lems are #i""en.

. *se only relia)le !#orou#ly !es!e" !ec#noloy !#a! ser%es your people an" processes.

7. 8ro( lea"ers (#o !#orou#ly un"ers!an" !#e (or-$ li%e !#e p#ilosop#y$ an" !eac# i! !o o!#ers

10. 9e%elop e&cep!ional people an" !eams (#o follo( your companys p#ilosop#y

11. ;espec! you e&!en"e" ne!(or- of par!ners an" suppliers )y c#allenin !#em impro%e

12. 8o an" see for yourself !o !#orou#ly un"ers!an" !#e si!ua!ion

13. Ma-e "ecisions slo(ly )y consensus$ !#orou#ly consi"erin all op!ions< implemen! "ecisions

rapi"ly

14. Become a learnin orania!ion !#rou# relen!less reflec!ion #ansei an" con!inuous

impro%emen! -aien

ENMA 6040: Principles of Lean


6/27

,et another !is$%aimer:

•/ean is not a ag of trics to e capriciously applied in apiecemeal manner to instantly achieve 'orld6class

performance"

•/ean is a paradigm, that is, a 'orld vie',or 'ay of thining aout system thatcan ene%t from @udicious and

'ell6planned application of appropriate techni5ues thatsupport the lean paradigm"

/ong (erm P.


7/27

A fnal !is$%aimer )romise12

•As 'e go through these points,

you might %nd yourself sayingD

“My organization could never do this!”

•Well, lean is not for every organi!ation"

•+o, should you transfer out of this courseE

•/ater 'e 'ill tal aout ho' to egin to eat the lean elephant"

•Also, you can re9ect on each of these principles in terms ofyour own life"

Living lean is not a bad personal goal.



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O3 a%rea!y1 Lets 5o thro5h the )rin$i)%es1

/ong (erm P.

Principles ?611

Principles 12614

ENMA 6040: Principles of Lean


9/27

'rin$i)%e 7D ase management decisions on longterm philosophy, even at the e-pense of short term%nancial goals"

• .ave a sense of purpose that supersedes any short term

decision maing" Align the organi!ation to'ard a purpose

greater than )makin5 money"* Fnderstand your place in

the history of the company and 'or to ring the

company to the ne8t %eve%"

• Generate va%e for the customer, society and the

economy" Bvaluate every function in the company in

terms of its aility to generate valueD

)


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/ong (erm P.


11/27

'rin$i)%e (D Create continuous process ow to ring problems to the surface"

• $edesign processes to achieve $ontinos ;ow"

• Create 9o' to move materia% and in"ormation fast"

• /in )ro$esses and )eo)%e autonomation so prolemssurface right a'ay"

• Mae 9o' obvios throughout your organi!ational culture"

;emem)er

!#is@

(he (oyota Way case study avy yard @o

summariesD• /ead time reduced HIJ

• :istance paper'or traveled reduced ==6?2J

• umer of steps reduced y HKJ

• .ando8s reduced y >0J 11ENMA 6040: Principles of Lean


12/27

'rin$i)%e


13/27

'rin$i)%e 4D Level out 'orload hei@una"

Fneven 'orload is one element of 'asteD

•Muda 'aste• (ransportation,


14/27

'rin$i)%e >D uild a culture of stopping to %-prolems to get 5uality right the %rst time"

• Nuality at the source• Jidoka autonomation• Andon signal for help• Poke yoke mistae proo%ng

•Administrative approaches stan!ar!i?e! 'or and$he$k%ists

• (oyota’s 5uality processD• Go and see•

Fnderstand the situation• Andon stop the line• &ne piece 9o'• As 'hy = times



15/27

'rin$i)%e 6D Standardied tasks are the foundationfor continuous improvement and employeeempo'erment"• +tandardi!ed 'or is not the end result, the )one est 'ay,*

it is the be5innin5 of improvement"

• Fse stab%e@ re)eatab%e metho!s every'here to maintainthe predictaility, timing, and regular output of yourprocesses"


16/27

'rin$i)%e D Fse visual !ontrol so no prolems arehidden"• Bisa% .ontro% (he aility to see anormalities at a

glance"

• >S enales visual control 6 +ort6 +traighten

6 +hine 6 +tandardi!e

6 +ustain

• 'ro$ess .ontro% /oar!s daily goals, tat rate,manpo'er, current production status throughout the day

• $educe your documents to one piece of paper 'henever

possile, and then post them for everyone to see"6 e"g" AI 11-1K $eports +toryoards, A4 > -

11ne-t; 6 46Nuadrant reports"



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'rin$i)%e D Fse only reliale thoroughly testedte!"nology that serves your people and processes"

• Fse technology to s))ort people, not to replace people"

• Conduct actual tests efore adopting ne' technology inusiness processes, manufacturing systems, or products"

• -eCe$t technologies that $on;i$t 'ith your culture or thatmight disrupt staility, reliaility, and predictaility, ut3

• En$ora5e people to $onsi!er ne' technologies 'hen

looing into ne' approaches to 'or" Nuicly implementa thoroughly considered technology i" it has een provenin trials and it can improve the 9o' of your processes"



18/27


/ong (erm P.


19/27

'rin$i)%e DD #row leaders 'ho thoroughlyunderstand the 'or, live the philosophy, and teachit to others"

• row %ea!ers from 'ithin rather than uying them fromoutside" (his is an e-ample of applying heijunka, orconstancy of purpose"

• /eaders must e ro%e mo!e%s of the company’s philosophyand 'ay of doing usiness"

• A good leader must n!erstan! the !ai%y work in great

detail so they can e the est teacher of your company’sphilosophy"

• )efore 'e uild cars, 'e uild people"*17ENMA 6040: Principles of Lean


20/27

'rin$i)%e 70D $evelop e-ceptional people andteams 'ho follo' your company’s philosophy"

•Create a strong, stale culture in 'hich company valuesand eliefs are 'idely shared and lived out over a period ofmany years"

• Train e-ceptional individuals and teams to 'or 'ithin thecorporate philosophy to achieve e-ceptional results"/a%an$e team'or and e-cellent individual 'or thiscourse;"

• Fse $ross "n$tiona% teams this course; to improve5uality and productivity and enhance 9o' y solving

prolems"

• Mae an ongoing e8ort to teach individuals ho' to 'ortogether as team to'ard common goals" (eam'or issomething that has to e %earne!"



21/27

'rin$i)%e 77D $espect your e-tended net'or ofpartners and suppliers y !"allenging them toimprove"

• .ave respect for your partners and suppliers and treatthem as an e8tension of your company"

• Challenge your partners to gro' and develop"


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/ong (erm P.


23/27

'rin$i)%e 7(D #o and see for yourself tothoroughly understand the situation this course;"

• Genchi actual location genbutsu actual material or

product3also no'n as going to the geba"

• +iena chief engineer drives in =0 states, 1I provinces andterritories and Me-ico"


24/27

• Given a year to implement a pro@ect3• Western I months planning, ? months implementing and

correcting"

• (oyota 10 months planning, pilot, 1 month to implement9a'lessly"

• (oyota decision maingD

• Qind out 'hat is really going on, including genchi genutsu"

• Fnderstanding underlying causes that e-plain surfaceappearances

asing )WhyE* %ve times"• roadly considering alternative solutions and developing a

detailed rationale for the preferred solution"

• uilding consensus 'ithin the team, including employeesand outside partners"

• "eawashi the process of discussing prolems and

'rin$i)%e 7


25/27

'rin$i)%e 74D %e!ome a learning organi!ationthrough relentless re9ection hansei and continuousimprovement ai!enR"

• Prolem solving is 20J tools and >0J thining"

• #ansei loosely, )re9ection*, or lessons learnedD

• )Please do the hansei"*

• Qeel sorry"• Create a plan to solve the prolem"

• +incerely elieve you 'ill not mae this mistaeagain"

• Without hansei, it is impossile to have ai!en"

• #ansei kai re9ection meetings"

• o magic metrics"

R and enrolling in the M+6BMA program;2ENMA 6040: Principles of Lean


26/27

'rin$i)%e 74D ecome a learning organi!ationthrough relentless re9ection hansei andcontinuous improvement ai!en

)Many people are surprised 'hen < give tals and tellthem that (oyota doesn’t have a +i- +igma program" +i-

+igma is ased on comple- statistical analysis tools" People

'ant to no' ho' (oyota achieves such high levels of 5uality

'ithout the 5uality tools of +i- +igma" ou can %nd ane-ample of every +i- +igma tool in use some'here in (oyota

at some time" et most prolems do not call for comple-

statistical analysis, ut instead re5uire painstaing, detailed

prolem solving" (his re5uires a level of detailed thining andanalysis that is all too asent from most companies in day6to6

day activity"


27/27

Lon >erm P=L??P

>#e ri#! P;?'E (ill

pro"uce !#e ri#! resul!s

A"" %alue !o !#e

orania!ion )y "e%elopin

your PE?PLE an"

PA;>NE;

'on!inuously

sol%in roo!P;?BLEM

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Principles of Lean