The DNA of Toyota - January 2017

[email protected]

Decoding the DNA of Toyota Introduction

Thinking win, Win, WIN

The DNA of ToyotaDecoding the DNA of TPSMarek Piatkowski – January 2017

October 1999


[email protected]



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

[email protected]



[email protected]



Steven Spear

H. Kent Bowen

October 1999

[email protected]



Decoding the DNA of TPS

Four-year study of the Toyota Production System

Inner workings of more than 40 plants in the United States, Europe, and Japan, some operating according to the system, some not

Studied both process and discrete manufacturers whose products ranged from prefabricated housing, auto parts and final auto assembly, cell phones, and computer printers to injection-molded plastics and aluminum extrusions

Studied not only routine production work but also service functions like equipment maintenance, workers’ training and supervision, logistics and materials handling, and process design and redesign

[email protected]



Decoding the DNA of TPS

Toyota does not consider any of the tools or practices – such as Kanbans or Andon cords, which so many outsiders have observed and copied – as fundamentals to the Toyota Production System.

Toyota uses them merely as temporary responses to specific problems that will serve until a better approach is found or conditions change.

What’s curious is that few manufacturers have managed to imitate Toyota successfully – even though the company has been extraordinarily open about its practices. Hundreds of thousands of executives from thousands of businesses have toured Toyota’s plants in Japan and the United States.

Frustrated be their inability to replicate Toyota’s performance ,many visitors assume that the secret of Toyota’s success must lie in its cultural roots. But that’s not the case

So why has it been so difficult to decode the Toyota Production System? The answer, we believe, is that observers confuse the tools and practices they see on their plant visits with the system itself.

[email protected]



How to Improve

We found that the key to understand that the Toyota Production System creates a community of scientists.

Whenever Toyota defines a specification, it is establishing a set of hypotheses that can then be tested. In other words, it is following the scientific method.

To make any changes, Toyota uses a rigorous problem-solving process that requires a detailed assessment of the current state of affairs and a plan to improvement that is, in effect, an experimental test of the proposed changes.

With anything less than such a scientific rigor, change at Toyota would amount to little more than random trial and error – a blindfolded walk through life.

Who, What, Where,

When, Why and How

Clarify the Problem

Initial Problem Perception(Large, vague, complicated problem)

The "Real" Problem

Locate Area /Point of Cause

PoC

Direct CauseWhy ?

Cause

Cause

Cause

Cause

Countermeasure

Root Cause

Why ?

Why ?

Why ?

Why ?

Cause

Investigation

Grasp the

Situation

5 W hy ?

Investigation of

Root Cause

Basic Cause & Effect

Investigation

Grasp the

Situation

Cause

Investigation

Basic Cause &

Effect Investigation

Ask Why 5 times?

Investigation of

Root Cause

[email protected]



How to Improve

Identifying problems is just a first step. For people to consistently make effective changes, they must know how to change and who is responsible for making the changes.

Toyota explicitly teaches people how to improve, not expecting them to learn strictly from personal experience. That’s where the rule for improvement comes in.

Any improvement to production activities, to connection between worker and machines, or the pathways must be made in accordance with the scientific method, under the guidance of a teacher, and the lowest possible organizational level.

To make changes, people are expected to present the explicit logic of the hypothesis.

Frontline workers make the improvements to their own jobs, and their supervisors provide direction and assistance as teachers.

[email protected]



“Secret” of Toyota’s Success

To understand Toyota’s success, you have to unravel the paradox – you have to see that the rigid specification is the very thing that makes the flexibility and creativity possible.

The unspoken knowledge that underlies the Toyota Production System can be captured in four basic rules

These rules guide the design, operation, and improvement of every activity, connection, and pathway for every product and service

[email protected]



TPS System Rules

Rule 2:

Every customer-supplier

connection must be direct, and there must be a unmistakable yes-or-no way to send requests and receive responses

Rule 1:

All work shall be highly specified (standardized) as to content,

sequence, timing and outcome

Rule 3:

The pathway for every product and service must be simple and direct –

flow

Rule 4:

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

[email protected]



TPS System Rules

Rule 2:



Rule 1:



Rule 3:


flow

Rule 4:


[email protected]



Job Descriptions

Every single activity (work) must be specified as to its:

Content

Sequence

Timing

Outcome

This exactness must be applied not only to repetitive motions of production operator but also to the activities of all people regardless of their functional specialty or hierarchical role

For everything that people do there must a simple, well defined process.

Manager’s job is to make sure that we follow the process.

[email protected]



What is Standardized Work?

Standardized Work is the best know method for manufacturing products at a production worksite.

The principle behind the Standardized Work is to perform efficient production, in a consecutive sequence, by focusing on operator’s movements and systematically combining work tasks.

3. Standard Work Chart

1. Process Capacity Sheet

Created by:

Work Elements

(Working or Walking - Waiting is NOT a work element) # 1 # 2 # 3 # 4 # 5

1 Load cross bar 4.5 3.5 5.5 7.0 4.5 IW 4.5 A lot of walking

2 Load C bracket 6.5 4.5 5.5 5.5 IW 5.5 A lot of walking

3 Insert pins and screws 7.0 6.0 7.0 6.0 VA 6.0 Using both hands

4 Start the machine 1.0 1.0 1.0 1.0 IW 1.0

x Waiting for machine to cycle 7.0 7.0 7.0 7.0 W 7.0 Waiting - 7 seconds

5 Unload C bracket 4.5 10.0 4.5 4.5 IW 4.5 Walk and inspect

6 Unload cross bar 5.0 5.0 4.0 4.0 IW 4.0 Walk and inspect

Total 25.5 30.0 27.5 28.0 25.5

* Type of work includes one of the three: VA, IW or Waste

** Best time = lowest repeatable time that can be performed on regular basis (Standard operating time)

Notes#Best

Time**

Process Capability

Operator Time Observations

Total Cycle Times Type of

Work*

Line / Section Date Part Description

2. Standard Work Combination Table

[email protected]



Why Standardize?

To standardize a method is to choose out of many methods the best one, and use it.... What is the best way to do a thing? It is the sum of all the good ways we have discovered up to the present. It, therefore, becomes the standard.

Today’s standardization...is the necessary foundation on which tomorrow’s improvement will be based. If you think of “standardization” as the best you know today, but which is to be improved tomorrow - you get somewhere. But if you think of standards as confining, then progress stops.

Henry Ford - Today and Tomorrow

1926

[email protected]



Standardized Work

Standardized Work is the best known method for manufacturing products at a worksite.

Standardized Work is a development of a starting point to measure the interaction between operator, machine, and materials to be used as a problem solving tool.

Principles behind the Standardized Work:

to perform production efficiently

in a consecutive sequence

by focusing on operator movements and

by systematically combining work elements

[email protected]



Job Breakdown Sheet – Operating room

Major Steps Keypoints Reasons for Key points

Prep the patient 1. Set out central line kit 2. Check lab reports

3. Lay patient on back

4. Place rolled up towel between patient’s shoulderblades

1. immediate access to materials 2. prevents potential adverse affects of

the procedure/check to see if

procedure could be potentially harmful

to the patient 3. makes access to vena cava easier

4. makes finding the clavicle easier

Apply anesthetic 1. Swab chest with antiseptic

2. Inject 5cc’s of lidocaine

1. prevents infection

2. keeps the patient from feeling excessive pain

Insert needle into vena

cava

1. Find clavicle

2. Puncture chest with right under the clavicle 3. Continue to push needle into the subclavian vein with a

steep angle

4. Pull back on the syringe

5. Pull syringe off, leaving the needle in place

1. makes locating the vena cava easier

2. finds subclavian vein 3. avoid puncturing the lungs

4. indicates if the needle is in the vena

cava or an artery. Maroon blood

indicates vena cava, red blood, artery. 5. helps to put the guidewire in place

Insert guidewire 1. Insert guidewire into the needle’s bore and into the vena cava

2. Do not force in

3. Do not let go

4. Do not let wire touch anything unsterile

1. serves as a placeholder for the dilator and the central line

2. prevents damaging the vena cava or

the heart

3. prevents loss of the wire inside the patient

4. prevents infection

Dilate the puncture point 1. Remove needle and replace it with a thick plastic 1. the plastic widens the vein opening

Put in the central line 1. Remove plastic, thread the line over the wire until it is all the way into the vena cava

2. Remove wire

3. Flush the line with heparin solution with a syringe 4. Suture the central line into the chest

1. inserts the central line into the vena cava 2. wire is no longer needed

3. removes fluids out of the central line

4. keeps the line in place

[email protected]



Standardized Work for Supervisors

All activities performed by a Supervisor must be defined as a standard process

A standard process is defined as:

knowing what to do

knowing when to perform the activity

knowing why it needs to be done

knowing who should do it

knowing where the activity should take place

knowing how to perform the activity

Supervisor follows Standardized Work process

[email protected]



Time Elements of Supervisor Activities

All daily activities to be grouped into ten major elements of a work day:

1. Pre-shift activities

2. Shift start-up activities

3. Post start-up activities

4. After 1st break activities

5. Before lunch activities

6. After lunch activities

7. After 2nd break activities

8. Shift to shift review

9. End of shift activities

10. Incidental activities

[email protected]



[email protected]



Work Standards vs Standardization

Your companies have and use operating standards:

Quality standards

Accounting standards

Safety standards …

Rule 1: All work shall be highly specified (standardized) as to content, sequence, timing and outcome

Do not confuse rules, regulations and policies with work standards

Do your employees know the best way to perform their jobs?

Is everybody performing their work use the best know method?

[email protected]



TPS System Rules

Rule 2:



Rule 1:



Rule 3:


flow

Rule 4:


[email protected]



Connections

Every connection must be:

standardized and direct

explicitly specifying the people involved, the form and quantity of the goods and services to be provided

the way requests are made by each customer and

the expected time in which the requests will be met

The rule creates a supplier-customer relationship between each person and the individual who is responsible for providing that person with specific parts or service

As a result there is no gray zones in deciding who provides what, to whom and when

[email protected]



Connections

When an operator makes a request for a part, there is no confusion about the supplier, the number of units required, or the timing of the delivery

Similarly, when a person needs assistance, there is no confusion over who will provide it, how the help will be triggered, and what services will be delivered

The connections are smooth as passing of the baton in the best Olympic relay team because they are carefully thought out and executed

[email protected]



Importance of Connections

Other companies devote substantial resources to coordinating people, but their connections generally aren’t so direct and explicit

Requests for materials or assistance often take a convoluted route from the line worker to the supplier via an intermediary

Any supervisor can answer any call for help because a specific person has not been assigned

The disadvantage of that approach, as Toyota recognizes, is that when something is everyone’s problem it becomes no one’s problem.

[email protected]



Importance of Connections

The requirement that people respond to supply requests within a specific time frame further reduces the possibility of variance

That is especially true in service requests

A worker encountering a problem is expected to ask for assistance at once

The designated assistant is then expected to respond immediately and resolve the problem within the worker’s cycle time

[email protected]



Problems in Creating Connections

The striking thing about the requirement to ask for help at once is that it is often counterintuitive to managers who are accustomed to encouraging workers to try to resolve problems on their own before calling for help

But then problems remain hidden and are neither shared nor resolved companywide

The situation is made worse if workers begin to solve problems themselves and then arbitrarily decide when the problem is big enough to warrant a call for help

Problems mount up and only get solved much later, by which time valuable information about the real causes of the problem may have been lost

[email protected]



TPS System Rules

Rule 2:



Rule 1:



Rule 3:


flow

Rule 4:


[email protected]



Importance of Flow

The time for any individual person or and item to move from the start to finish of the process should be as short as possible

Elimination of stops and waiting time in a process should be one of your key concerns

Why? – do we understand?

Every time the work stops we consume resources and add costs but we do not add

any value

[email protected]



Principles of Flow

TPS forces us to think about processes from the moment when customer is placing an order to the moment when customer is receiving the output of the process

Improving the service to customers and reducing whole-process costs and cycle times will often mean reducing the efficiency of individual process steps. Too often we optimise individual steps, not the whole process

Flow is about how

People

Information and

Products (Materials)move and interact with each other from the start to the end of a production or service process

Flow is about what happens to them and how the process overall compares to what could be seen as a perfect flow.

[email protected]



TPS Operating Principles

Lead Time - Strive continuously to find and implement ways to shorten the time it takes to convert customer order into a finished product.

Manufacturing Efficiency – the goal is to get the material in and out as quickly as possible

Machine and manpower utilization is defined by how quickly they support this goal - NOT as in a traditional maximum utilization approach

Continuous Flow of Production - is the quickest way for material to get from point A to point B, with the shortest lead time and least amount of work-in process in between.

A smooth continuous flow will result in gains in productivity and quality

[email protected]



Information Flow and Material Flow

Material Flow

Operation

Information Flow

Full

Skid

Must be in “real” time

[email protected]



Production and Material Flow Strategy

Create Material Flow in Production

Design and Implement Production Cells (CCF)

Operator Flow – no waste

Material Flow internal to Production Cells

Standardized Work

Flow Through Pick, Pack and Ship

Create a Materials Management Organization

Develop Plan-For-Every-Part

Design and build Supermarkets

Design and implement delivery routes

Implement pull signals

Schedule production in small lots

Implement flow from Production to Customer

[email protected]



Create Organization to Support Flow

Create multiple process responsibility - multi process handling

Arrange a system so employees perform several tasks that match the Takt time according to the work sequence.

Develop multiple skilled employees - provide several levels of training to the employees so they

can operate various types of equipment

do various kinds of work and perform other work besides that for which they are directly responsible

Perform work while standing

[email protected]



Material Movement Objectives

Achieve a lean material flow by reducing the time it takes from order to delivery by

eliminating sources of waste in receiving, storage, flow of production material and

shipment of finished goods products

Produce and deliver what the Customer wants and when the Customer wants it

Customer is the next step in every process!

[email protected]



Flow in Production

Create successive production

Manufacture and assemble each single piece or unit in the process order so the product will flow one after the other between workstations or processes

Create multi-process operations

Initiate small lots production

Shorten the die-change time or changeover process in lot production processes and keep the lots small

Design and implement work cells

Layout equipment according to the sequence of production

Synchronize and balance work to Takt Time

Develop flow work, people and material in and between work cells

[email protected]



TPS System Rules

Rule 2:



Rule 1:



Rule 3:


flow

Rule 4:


[email protected]



Toyota’s Philosophy Statements

People 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 Lean Manufacturing

Teamwork is a foundation of Lean Transformation – all employees are required to participate and follow rules and principles of Lean Manufacturing

A manager’s or supervisor’s role consists of leading problem solving activities in a multi-skilled, cross-functional team environment

[email protected]



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

[email protected]



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 …

[email protected]



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

[email protected]



2. Analyze the Current

Situation

1. Clarify the Goal

3. Generate Original

Ideas

4. Develop

Implementation Plan

5. Implement the Plan

6. Evaluate the New

Method

2. Analyze the Current

Situation

1. Clarify the Goal

3. Generate Original

Ideas

4. Develop

Implementation Plan

5. Implement the Plan

6. Evaluate the New

Method

Standardized CI methodology

[email protected]



TPS - Problem Solving process

Who, What, Where, When,

Why and How

Clarify the Problem

Initial Problem Perception(Large, vague, complicated problem)

The "Real" Problem

Locate Area /Point of Cause

PoC

Direct CauseWhy ?

Cause

Cause

Cause

Cause

Countermeasure

Root Cause

Why ?

Why ?

Why ?

Why ?

Cause

Investigation

Grasp the

Situation

5 W hy ?

Investigation of

Root Cause

Basic Cause & Effect

Investigation

Grasp the

Situation

Cause

Investigation

Basic Cause &

Effect Investigation

Ask Why 5 times?

Investigation of

Root Cause

[email protected]



Problem and countermeasure

[email protected]



1

3

2

6

7

8

10

9

5

DESCRIBE THE PROBLEM – What? What?

Where? Where?

When? When?

How Many? How Many?

The

Problem Is:

Actual

Should Be:

UNDERSTAND NEEDS & REQUIREMENTS – Examine the applicable policies, procedures, regulations and specifications. Understand the expectation of the customer (for internal processes, know what the next operation expects).

Start

End

ProcessStep

ProcessStep

ProcessStep

ProcessStep

Multi-Document

Decision?Yes

No

45

26

10 84 4 2 1

0

10

20

30

40

50

60

70

80

90

100

Wrong Part Wrong

Quantity

Duplicate

Part

Wrong

Customer

Document

Error

Packaging

Damage

Wrong

Price

Dimensional

Reject

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

USE A TEAM APPROACH -Collaborate with relevant team members from various levels, functions and organizations, as necessary. Involve those closest to the process - they usually know it best.

Samples (Time)

Resp

on

se

Process

Capability

Study

Process

Control

Process

Improvement

Process

Control

Use quantifiable terms and facts.

COLLECT & ANALYZE DATA – Collect data relevant to the problem using check sheets, comparisons, observations and interviews. Display data using appropriate charts/graphs. What does the data tell you?

Design of Experiments

The objective is:

DRIVING FORCES RESTRAINING FORCES

Force Field Analysis

IDENTIFY ALTERNATIVES & SELECT A SOLUTION - Check for resource constraints. Perform experiments or pilot tests to help.

PREPARE A PROJECT PLAN - Answer: Who? What? When? Where? How? How Much? Be prepared to present your recommendation for approval.

7 14 21 28 5 12 19 26

$

$$

$$

$$$

Project PlanEst.

Cost

2 Layout flow Team A 4 weeks

1 Kick-off D.W. 1 day

2 weeks

4 Move/Set-Up Team B 2 days

Task#

5 Validation Q.C. 1 day

3 Pilot tests J.C.

April May

Dura.Resp.

IMPLEMENT THE SOLUTION - Create a detailed task list. Communicate responsibilities effectively. Execute the plan. Follow-up regularly until complete.

MEASURE, MONITOR & CONTROL YOUR RESULTS - Measure the results to ensure the problem was truly fixed. Continually or periodically monitor performance to verify that it stays fixed. Repeat steps 1 thru 10, as necessary.

GET LEADERSHIP APPROVAL & SUPPORT - Seek guidance, suggestions, support and approval from your leader, process owner, customer, supplier and/or other affected stakeholders.

LCL

UCLTarget

Capable &

In Control

x's +/- y's

Factors Levels Responses

(Settings)

Mold Temp. Degrees F.

Ram Press. Psig

Moisture Percent (%) y=f(x)Ram Speed Inches/Sec.

Mold Gate Size (.000)

Time Seconds

(Variables, Inputs) (Outcomes, Characteristics)

Voids,

Shrinkage,

Flash

Type of E rro r

Occ

urre

nces

4IDENTIFY POTENTIAL CAUSES - Brainstorm to identify potential root cause(s) that may have caused the problem to occur (these are candidates for additional data collection). Ask “Why?” five times to reveal the root cause. Confirm assumptions with data.

Why?Why?

Why?Why?

Why?

(Potential Cause)

Manpower

(Effect)

Problem

Machine

MaterialMethods Environment

Avg.

X' Axis

Time or Sequence

Y' A

xis

Me

asu

rem

en

t

#

Detailed Task List

Task Assigned To Date Due Results Achieved

M Tu W Th F

A I III II I

B I II I II

C IIII I III IIII III III IIII II

P/N: XYZDWG2-2 B2

Problem Solving

©2005 Par ker H annifin Cor porati on

10-Step

Method

History

Trend

[email protected]



TPS System Rules

Rule 2:



Rule 1:



Rule 3:


flow

Rule 4:


[email protected]



How Toyota’s Workers Learn these Rules

Toyota’s managers do not tell workers and supervisors specifically how to do their work

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?

[email protected]



TPS System Rules

Rule 2:



Rule 1:



Rule 3:


flow

Rule 4:


[email protected]



Changing the World. One Transformation at a time

This presentation is an intellectual property of W3 Group Canada Inc.No parts of this document can be copied or reproduced

without written permission from:

Marek PiatkowskiW3 Group Canada Inc.iPhone: 416-235-2631

Cell: 248-207-0416

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


[email protected]



Presentations in this Workshop

1. Log in to:

www.slideshare.net

2. Type in my name in search area:

Marek Piatkowski

3. Select a presentation you want to see

4. Learn and Enjoy

Leadership & Management

The DNA of Toyota - January 2017