Overview of Toyota

Shop-Floor
Leadership And
Ideal Daily Operations Management

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What if?

If, starting today, you could only hire your

future leaders by promoting from within?

What if all future senior and executive

leaders had to come only from an entry
associate or supervisor?

How would that change your approach to

Leader and People development?

It would fundamentally change

EVERYTHING!

Your very management system could no

longer be just about the numbers…could
it?

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Floor Management Development System Management Roles

MANAGEMENT PROCESS RESULT PROCESS ACTIVITY ACTION

EXECUTIVE MANAGEMENT

SENIOR MANAGER

OPERATIONS MANAGER

AREA MANAGER

PROCESS MANAGER

PROCESS MEMBER

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Understanding FMDS – Floor Management Development
FMDS is a Comprehensive System that aligns Floor Management and Human Resource
Development activities to achieve Company Targets and Support the Succession
Pipeline.
• FMDS ensures foundations skills are in place for Ideal Daily Work, and
• Aligns Daily Shop-Floor Activities with Hoshin goals and objectives.
• FMDS Visualizes Shop-Floor Management and Leader Development through:
 Visualization of Gap to Standard
 Promote Two-way Communication
 Defines and Develops Roles and Responsibilities for all members
 Supports Toyota’s On-the-Job Development for all members
FMDS is ingrains the Toyota Way Culture into the Managing Structures of FMDS

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FMDS as a People and Leader
Managers and Assistant Managers:
• Quickly see how the groups are performing
• Coach Group and Team Leaders in the Business
Leadership through Hoshin
• Support Group Leader activity with necessary resources
• Strengthen the groups’ commitment and pride as they
strive to achieve shared goals

Group Leaders and Supervisors:

• Focus their management efforts and problem solving
activities
• Play a key role in developing Team Leaders and Team
Members
• Less reactive and more proactive
• Visually show the need for Support 5
FMDS as a People and Leader
Team Leaders
• Help their teams improve skill by working with team
members to solve team problems
• Develop their own skills as a coach and leader while they
manage daily activities through the team leader process
and 3 Pillar Management

Team Members:
• Can see Group/Area/Shift performance
• Understand how important their job is to the
Company’s success
• Have access to information to help solve problems
• Improve team member knowledge and skill level
• Can see how their job impacts Company Success
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Leadership, Hoshin, FMDS and Three Pillar

Quote:
“From a Leadership perspective, we use our FMDS and Three Pillar Boards
and I try to be a leader from that perspective - of always challenging our
Group Leaders and Assistant Managers to think of the next level.
How do we get to the next level? How do we achieve the things that we do?
The way I do that, I try to provide the vision for them and let them create
the road map.
Jeff Hurst, Manager, Powertrain, TMMK

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Overview of Toyota Hoshin Management
Connection to
Floor Management Development System

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FMDS - A Leadership Development and Management
• FMDS Uses Hoshin to Set Direction linked to the Company Hoshin

• Drives Activity through Problem Solving (Toyota Business Practice ) and Kaizen

• Engages all Levels of the team through Roll Specific Actions

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FMDS and the Five Mission of Shop-Floor

The Management Activities

Of the Shop-Floor Group

THE FIVE MAIN MISSIONS OF

FMDS SHOP-FLOOR LEADERSHIP
Human
Safety Quality Productivity Cost Resource
Development

Actions of the Shop-floor Leadership Group are

responsible for the safety of members and
ensuring the quality, volume, cost, and delivery of
the product created as well as the development of
all members

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FMDS Management Review Cadence
The Management Activities
Of the Shop-Floor Group

THE FIVE MAIN MISSIONS OF

FMDS SHOP-FLOOR LEADERSHIP

Human
Safety Quality Productivity Cost Resource
Development

The The The The

Every
1stWeek 2nd Week 3rd Week 4th
Week
Other
Of the Of the Of the of the
Friday
Month Month Month Month

5S is the focus if there is a 5th Week in the Month

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FMDS Board Layout Standards
Hoshin
And the Safety Quality Productivity Cost Human
Five Hoshin Hoshin Hoshin Hoshin Resource
PLAN
Missions Development
Hoshin
• Main KPI are derived from Sub-KPI’s one Management Level Up
• Main KPI’s Directly linked to the Annual Hoshin
Main KPI • Visualize Monthly and Historical Trend PLAN
• Clear Target is Specified and Visual
• Color Coded/Symbol judgement of Current Status

Sub-KPI’s • Breakdown of Main KPI to Pro-active and Reactive Sub-KPI’s

• Clear Visual Targets and Visual Management
& Process • Spikes annotated using handwritten “call-out bubbles”
PLAN
Sub-KPI’s • Measures daily activity sub-KPI’s to the Process level to support Sub-KPIs
FMDS

• Evidence of GTS-PDCA Process and Thinking

Process • Breakdown of Gaps (Issues) that effect Sub-KPI Trends A
• Handwritten Concrete Actions to tackle Gaps DO
Activities • Timetable and Status of Progress C
• Ownership and Teamwork
T
• Shows Results tracking from Activities
Results • Handwritten using QC Tools/Charts
• Logical Connection to Sub-KPI’s CHECK
Tracking • Did we achieve the target? What was the Result?

• Toyota Business Practice (Problem Solving Process) supporting documents

History • History of Process activities and Results (greater than 90 Days)
Binders • A3, A3, Kaizen Sheet, etc. 12
FMDS Board Layout Standards
• Used to share lessons learned and
reflection as part of Yokoten
Hoshin Kanri Connected to the Genba with FMDS

Toyota Hoshin
Management By Shift
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 through
Floor Management & Development System

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Who Attends the FMDS Five Mission Review?

All Support Groups attend the FMDS Review, Including:

• Section or Department Manager*
• Assistant Manager
• All Plant Group Leaders/Supervisors
• Mission Leader (e.g. Safety Team Leader on Safety Review)
• Process Engineering
• Quality Engineering
• Occupational Safety
• Human Resource Representative for Group 15
FMDS, Toyota Business Practice and Leader
Toyota Business Practice (TBP – 8 Step Problem Solving A3 Process) and Quality Circle Leadership and
Participation are activity drivers for Leader and People Development
Quality Circle Leadership is the Original Leader development platform of Toyota Production
Team Leaders must Lead at least one TBP or Quality Circle Activity per year
The Group FMDS Board is the Source for TBP, Safety Circle, Quality Circle or Kaizen Circle Activity for Team Leaders to
Lead
Some Focus activities may be the focus of a Manager Led or Cross Functional Problem Solving Activity (aka
Jishuken)

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FMDS, Three Pillar Toyota Business Practice and Leadership Development

“When I think of FMDS and Three Pillar, it’s REALY TBP (Toyota Business
Practice). It’s all about how you get from a large, vague problem to pinpoint
the exact issue that you can work on.
When my Team Leaders are looking for a TBP to work on, I say ‘Let’s Go to
the FMDS Board.”
– Jeremiah Duncan, V6 Assembly Group Leader, TMMK Powertrain

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 The Role of the Production Group
Leader And
Floor Management Development System

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Supervisor Ideal Daily Management

• The Group Leader Role is supported by The Group

Leader Management Process (GLMP).
• The GLMP Process is made up of supporting management,
Leadership and People Development Routines is Cycled before
during and after the Work Shift.

PDCA and Communicate (Observe to verify and adjust)

Ensure Operational
Secure
Imperatives
Conditions for Ideal Production
Manage 5M Change Points
Manage Standardized Work
Ensure the Control
Basics Abnormality

Follow-up Cycle (Observe to verify and adjust)

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Understanding Visual Management
Top portion is daily routines and
checks aligned with shop-floor Ideal
leadership roles. Daily Management Activity
Proactive Daily Activities
Problem activity is connect to
Group Leader FMDS Board
Leader Routines Aligned with Role
All problems that are found
through:
Counter- measures for Previous and Current month
• Weak Point Management Problem
• audits Activity & Tracking
Problem Registration System & Support Documents
• operator suggestion,
Support Documents
• scrap or rework events,
• premature tool failure
Are logged on one set of sheets
divided up by the 4Ms – called
“Problem Registration System”
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Toyota’s KPI Pyramid – Visualizing Leading

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Hoshin Main
Start with the Hoshin Statement – Quantitative and
Qualitative High Level Vision of the Dept or
Section.
Main KPI’s for the FMDS Board are High Level
Indicators deemed critical and Targets are
derived from the Department or Section Hoshin
FMDS Safety Hoshin Example: Respect our community and
Note: Safety is a Focus create a family-like environment through ensuring mental,
emotional, physical and environmental Safety.
FY 2018 Targets: Main KPI’s
Lost Time Accidents: 0%
Recordables: 0%
T/M Safety Dojo Training: 100%
100% T/M Completion of Find and Fix Safety Kaizen: 1 per month
Stimulate Team-member (T/M) involvement to support eyes for safety and
problem solving:
1. Safety Culture: Create a culture for Safety and Health Through
Leadership, Management and T/M engagement
2. Safety System: Enhance safety performance through
implementation of Safety Best Practices
3. Environmental Management: Reduce non-Safe waste through
process kaizen and segregation
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Sub-KPI’s and Process Sub-
FMDS Sub-KPI’s are Proactive and Reactive
Measures that can be measured to show
potential improvement to achieve Main KPI.
Sub-KPI’s are indicators that will support the overall
achievement of the Main KPI and are Fact Driven
Sub-KPI’s may change quarterly and may be Direct
(reactive) or Indirect (proactive)
Process Sub-KPI’s breakdown to process level
Sub-KPI’s are tracked by area by shift.
• Safety Sub-KPI Example:
• Acute Injuries Incidents
• Ergonomic Incidents
• Behavior-based
• Near Misses
• Process Related
• Workplace Organization and Layout Related
• Eyes for Safety Dojo Training Completion 23
Process Activity
FMDS Process Activities are activities at the
Process Level intended to Improve the Sub-KPI’s
through Countermeasure implementation as a
result of Toyota Business Practice 8 Step
Problem Solving Process.
There are 2 Measures of daily process activity:
1. Completion
2. Outcome
Process Activity is measured by completion
status and is typically displayed on the activity
board.
Just as there are 2 measurements of
Activities there are also 2 types of Activities:
1. Direct: Results from problem solving a Gap to a
standard, defined cause and effect, quantifiable
results, and easily linked to Sub and Main KPI’s
2. Indirect Activity: Results from a broad Problem
Solving activity with no specific Gap; generally
Kaizen or effort to improve overall environment or 24
Process Activity
culture
Process Results
FMDS Process KPI’s are the Quantifiable results
indicators of the process level activity intended to
improve the Sub-KPI’s
The Process KPI is the measure of Outcome
compared to the target set for the Activity
Process Results KPI answers the question:
• How will you Check?
• How often will you Check?
• How long will you Check? (e.g. 90 days)
• Did you achieve the desired outcome
• Do you understand both success and failure
• What did you learn?

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Now, It’s Your
Turn
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FMDS Dojo Audit

• Dojo is used to train and refresher

– in a “hands-on” way the
leadership and management
concepts of The Toyota Way, TPS,
FMDS, Point Control, and 3 Pillar
Management to all Leaders
• Once per Quarter, the FMDS
Dojo team will audit FMDS
Boards and Management
Boards for Gaps.

• This Gaps are shared with

Groups for Improvements

• Groups can earn Bronze, Silver, or

Gold Status as they mature their
FMDS and 3 Pillar Management
Boards and Process 27