Toyota Production System
21-century company
Pains• VUCA: Volatility,
Uncertainty, Complexity, Ambiguity
• Fast-paced competition landscape
• New responsibilities (triple bottomline)
Gains• Flexibility• Adaptability • Utilize collective
intelligence, • Need for learning
organization
Proven practices in the automotive
industry can also be applied to other
industries
Customer Value Innovation Perfection Time for creative thinking Transparency
Less bureaucracy Efficiency and effectiveness Synchronization
HTTP://WWW.YOUTUBE.COM/WATCH?V=GBLIJKHS2TC
Goals:
1. Increased throughput of value 2. Shortened lead times3. Reduced cost for deliveries
Input:• Ideas and
requirements• Materials• People
System Constraints
Output:• Value (to customer
=> to company)
1. Identify Value
2. Map the Value Stream
3. Create Flow
4. Establish
Pull
5. Seek Perfection
Customer Needs
Key Concepts
• Value and waste• Optimizing the whole• Managing flow• Continuous improvement• People and leadership
Identify what adds value to the customer.
Strive to minimize the rest.
Deliver value frequently
Sources of Waste1. Unused features2. Inventory3. Extra processing 4. Motion5. Transport 6. Waiting 7. Defects 8. Unused creativity
How often are product features used?
Look at the entire value stream.
Measure (value, throughput, and customer satisfaction)
Ensure that + in 1 place is not – in another
Reduce batch size (one-piece flow)
Pull (Kan-Ban) Reduce multitasking Maximize throughput Synchronize using
time-boxes (takts)
10 3 4
Backlog Planned In Progress Done
D
J
13 hrs
48 hrs
Plan
DoCheck
Act• Regular retrospectives• Improvement kata• A3 + PDCA approach
Respect to people
Lead by example
Manager as a coach
Clear purpose
Simple rules
"…employees are offering a very important part of their life to us. If we don’t use their time effectively, we are wasting their lives."
Eiji Toyoda
Behaviors
MethodsProcesses
Instruments
LEANPractices
LEANCulture
Beliefs
Easy to learn in training and practice
BUT
80% of the opportunities come from culture.
Hard to see and change. Leaders’ behaviors and
beliefs are crucial for a sustainable learning organization.
Agile is a set of values, principles, and best practices that address the challenges of building complex projects in a dynamically changing environment.
Waterfall Approach
Challenges• Long cycle times,
high cost• High risk, low
predictability• Products not fitting needs• High pressure on teams,
low motivation
Agile Approach
Embracing change by
• Iterative, incremental product creation
• Customer collaboration• Frequent deliveries of
product increments• Team empowerment
AGILE• Embrace change• Frequent deliveries• Team work
XP
Scrum
Agile
Lean Thinking
Scope
Co
ncre
ten
essLEAN THINKING
• Value Streams and flow• Reduce waste• Continuous Improvement
Lean and Agile fit well together and are often combined.
Responsibility Trust Collaboration Learning
+12 principles aligned to values
http://agilemanifesto.org
People are at the core of the system
Kanban means “signal card”.
Kanban card is a signal that provokes action.
Introduced as part of the TPS.
Currently used in other industries, such as IT, healthcare, banking, services.
1. Visualize the workflow
2. Limit WIP
3. Manage Flow
4. Make Process Policies Explicit
5. Improve Collaboratively (using models & the scientific method)
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Analysis Development Acceptance ProdNext
Definition of Done:• Customer accepted• Ready for production
Doing Done
Definition of Done:• Code clean & checked in on trunk
• Integrated & regression tested• Running on UAT environment
Doing DoneDoing Done
Definition of Done:• Goal is clear• First tasks defined• Story split (if necessary)
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*Example from the InfoQ minibook“Kanban and Scrum – Making the Most of Both”.
Iterations Roles Ceremonies Artefacts Time-boxing
Thank You!
http://leanify.com
@Leanify
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