Lessons Learned from the Toyota Way

Words of Wisdom

It is not the strongest nor the most intelligent of the species that survives, but the one that is most adaptable to change
-Charles Darwin-

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4 P Model of the Toyota Way

Problem Solving
(Continuous Improvement and Learning)

Continual organizational learning through Kaizen Go see for yourself to thoroughly understand the situation. (Genchi Genbutsu) Make decisions slowly by consensus, thoroughly considering all options; implement rapidly ( Nemawashi

People and Partners

(Respect, Challenge and Grow Them)

Grow leaders who live the philosophy Respect, develop and challenge your people and teams Respect, challenge, and help your suppliers ems Jidoka) ion

Adding Value to Customers & Proce Society

(Eliminate Waste)

improvement Use visual control so no problems are hidden Use only reliable, thoroughly tested technology Base management decisions on a long-term philosophy, even at the expense of short-term financial goals

Philosophy
(Long-term Thinking)

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Base management decisions on a long term philosophy, even at the expense of short-term financial goals Toyota mission:

Contribute to the economic growth of the country in which it is located (external stakeholders) Contribute to the stability and well being of team members and partners (internal stakeholders) Contribute to the overall growth of Toyota

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Principle One
1

The most important factors for success are patience, a focus on long term rather than short-term results, reinvestment in people, product, and plant, and an unforgiving commitment to quality.
-Robert B. McCurry, former Executive V.P., Toyota Motor Sales
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4 P Model of the Toyota Way

Problem Solving
(Continuous Improvement and Learning)

Continual organizational learning through Kaizen Go see for yourself to thoroughly understand the situation. (Genchi Genbutsu) Make decisions slowly by consensus, thoroughly considering all options; implement rapidly ( Nemawashi

People and
(Respect, Challenge

Eliminate Waste through Flow & Standardization

Create process flow to surface problems Level out the workload (Heijunka) Stop when there is a quality problem (Jidoka) Use pull systems to avoid overproduction Standardize tasks for continuous improvement Use visual control so no problems are hidden Use only reliable, thoroughly tested technology Base management decisions on a long-term philosophy, even at the expense of short-term financial goals

Process
(Eliminate Waste)

Philosophy
(Long-term Thinking)

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Lean Manufacturing
is a manufacturing philosophy which shortens the time between the customer order and the product build / shipment by eliminating sources of waste.
Business as Usual
CUSTOMER ORDER

Waste
Time

PRODUCT BUILT & SHIPPED

Lean Manufacturing
CUSTOMER ORDER PRODUCT BUILT & SHIPPED

Waste
Time (Shorter)
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Product Lead Time

Waiting Casting Transportation Staging Machining Inventory Assembly Staging

Raw Material

Time

Finished Parts

= Value Added Time = Non-Value Added Time (WASTE)

Value Added Time is only a very small percentage of the Lead time. Traditional Cost Savings focused on only Value Added Items. LEAN FOCUSES ON NON-VALUE ADDING ITEMS .

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Before Lean: Organization By Machine Type With Convoluted Flow

No Organization and No Control

LATHE

LATHE

LATHE

LATHE

PART FLOW
500pcs.

MILL

MILL

MILL

MILL

MILL

750pcs.

GRINDER

GRINDER

GRINDER

250pcs.

DRILL

DRILL

DRILL

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After Lean: U-Shaped One-Piece Flow Cell

Organization and Control
PART FLOW

Build to Takt Time!

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Simplified Pull System

Downstream processes withdraw what they need when they need it.
Empties + production kanban

Empties + withdrawal kanban

A B C D E F New product G H

PULL
Customer Plant

Needed Components + kanban

Supplier Plant

Preceding processes replenish what is taken away.

Value Stream Perspective

Get away from isolated perspective / improvements

Process 1
Kaizen

Process 2

Process 3
Kaizen

Kaizen

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Why Focus on Flow?

If some problem occurs in one-piece-flow manufacturing then the whole production line stops. In this sense it is a very bad system of manufacturing. But when production stops everyone is forced to solve the problem immediately. So team members have to think, and through thinking team members grow and become better team members and people.
-Teruyuki Minoura, former President, Toyota Motor Manufacturing, North America

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Lean Tools to Support Flow

5S-Visual Workplace Total Productive Maintenance Quick Changeover Standardized Work Quality Methods

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What is a Visual Workplace?

When anyone can walk into a workplace and visually understand the current situation.

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Describe this area...

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Describe this area...

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What is TPM?
Total Productive Maintenance (TPM) is Productive Maintenance with EVERYONEs participation
Maintenance=Teachers, Doctors of Equipment Operators=Clean, inspect, routine repair

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Why Quick Change Over?

Change Over

Difference in average inventory level with more changeovers

Average inventory levels

Time

The more quickly we changeover, the more our inventory levels decrease. This helps accomplish our goal of waste elimination.
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Standard Work Tools

Standardized Work Chart

Detail of each Process Step
Takt 90s

Assembly Process #

Work Element Sheet

Detail of the Elements of each Process Step

Stack Chart (Yamazumi)

A Visual Tool for Balancing Processes
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Standardized tasks are the foundation for continuous improvement and employee empowerment

Todays standardizationis the necessary foundation on which tomorrows 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

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4 P Model of the Toyota Way

Problem Solving
(Continuous Improvement and Learning)

The heart & soul of The Toyota Way

ituation.

considering all options; implement rapidly (Nemawashi)

People and Partners

(Respect, Challenge and Grow Them)

Grow leaders who live the philosophy Respect, develop and challenge your people and teams Respect, challenge, and help your suppliers Create process flow to surface problems Level out the workload (Heijunka) Stop when there is a quality problem (Jidoka) Use pull systems to avoid overproduction Standardize tasks for continuous improvement Use visual control so no problems are hidden Use only reliable, thoroughly tested technology Base management decisions on a long-term philosophy, even at the expense of short-term financial goals

Process
(Eliminate Waste)

Philosophy
(Long-term Thinking)

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People and Partners

Respect, Challenge, and Grow Them:
9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others 10. Develop exceptional people and teams who follow your companys philosophy 11. Respect your extended network of partners and suppliers by challenging them and helping them improve

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One-Piece Flow Demands Team Work!

x x xx x

Traditional Western Team

x x x x x

Station B

x x x x x x x

Station A
Need help? Need help?

Station C

Toyota Way Team

Workcell

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Principle Five: Stop & Fix Problems

Mr. Ohno used to say that no problem discovered when stopping the line should wait longer than tomorrow morning to be fixed. Because when making a car every minute we know we will have the same problem again tomorrow.
-Fujio Cho, President, Toyota Motor Corporation

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1
STOP BUTTON

9 10 11 12 13 14
STOP BUTTON
(STOP THE L NE AUTHOR ITY )

(STOP THE L NE AUTHOR ITY )

Abnormality Station 5

Team Leader

Typical Toyota Organization to support Continuous Improvement T

Team Size
Team Member {5-8}

Kaizen
Team Leader {3-4}

Group Leader {5-8}

Asst. Manager
{ 4 - 10 }

Manager
Source: Bill Costantino, former group leader, Toyota, Georgetown.

How Do we Develop People? Research in occupational training shows that individuals retain about:

10 % of what they read

20 % of what they hear

30% of what they see

50% of what they hear and use 70% of what they say 90% of what they say and do
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 Job Instruction Training is designed to teach

people how to do a particular job by:

Hearing (what to do) Seeing (how it is done) Using (what was learned)

Saying (what was learned)

Doing (the task)

REPEATEDLY !!

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The Four Steps of TJI

Step 4: FOLLOW UP
Action Plan
Major Steps

Step 1: PREPARE WORKER

Key Points

Check

Reasons

Do

Step 3: TRY OUT PERFORMANCE

Step 2: PRESENT OPERATION

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Bumper Trimming Job Breakdown Sheet

JOB BREAKDOWN SHEET
DATE: AREA: Bumper molding 7/20/2006 Phil Turek Team Leader Todd Chambers Supervisor Phil Turek JOB: Rear bumper molding operator - Trimming WRITTEN BY:

MAJOR STEPS
Step # 1 Trim flash ball on left side

SAFETY: Injury avoidance, ergonomics, danger points QUALITY: Defect avoidance, check points, standards REASONS FOR TECHNIQUE: Efficient movement, special method COST: Proper use of materials 1. Hold flash straight up and tight 1. Makes trimming easier
2. Trim away from body and arm 3. Blade flush with top surface 2. Prevents injury- cuts

KEYPOINTS

KEYPOINTS

3. Visible surface, flash line 1mm max.

Step # 2

1. Start on trim line- 1 mm variation 2. Blade must be perpindicular 3. Follow trim line- 1mm variation 4. Curving motion while trimming

1. Visible surface- quality spec. 2. Angled cut not acceptable 3. Visible surface- quality spec. 4. Technique to make trimming easier 1. Prevents twisting of bumper during cut 2. Helps make cut horizontal and straight 3. Cut is easier 4. Stopping will cause a jagged cut

Trim left side core flash

Step # 3

1. Hold gate up horizontally 2. Rest blade on bumper edge horizontally 3. Angle knife handle back (blade is horizontal) 4. One continuous movement

Trim gate flash

Step # 4 Trim flash ball on right side

1. Hold flash straight up and tight 2. Trim away from body and arm 3. Blade flush with top surface

1. Makes trimming easier 2. Prevents injury- cuts 3. Visible surface, flash line 1mm max.

Step # 5

1. Start on trim line- 1 mm variation 2. Blade must be perpindicular

1. Visible surface- quality spec. 2. Angled cut not acceptable

Trim right side core flash

3. Follow trim line- 1mm variation

4. Curving motion while trimming

3. Visible surface- quality spec.

4. Technique to make trimming easier

LEAN ASSOCIATES, INC.

www.leanassociates.com

Auditing Standardized Work

Roles and Responsibilities

General Manager and VP Level Concentrate on Business Planning and Policy Improvement. Tools: Hoshin Planning & TBP

Manager Level Focus on Shop Floor and Systems Improvement. Tools: Visual Factory & TBPT

Team Leader and Group Leader Manage Standardized Work, Process Improvement and Develop Problem Solving Skills. Tools: FMDS, TBP & OJD

Team Member Focus on Fundamental Skills & Standardized Work Tools: Skills Training, Job Instruction, Standardized Work and 5-S

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Toyota Way Principles in 4P Model

The dynamic of The Toyota Way

Problem Solving
(Continuous Improvement and Learning)
Continual organizational learning through Kaizen Go see for yourself to thoroughly understand the situation. (Genchi Genbutsu) Make decisions slowly by consensus, thoroughly considering all options; implement rapidly ( Nemawashi

People and Partners

(Respect, Challenge and Grow Them)

Grow leaders who live the philosophy Respect, develop and challenge your people and teams Respect, challenge, and help your suppliers Create process flow to surface problems Level out the workload (Heijunka) Stop when there is a quality problem (Jidoka) Use pull systems to avoid overproduction Standardize tasks for continuous improvement Use visual control so no problems are hidden Use only reliable, thoroughly tested technology Base management decisions on a long-term philosophy, even at the expense of short-term financial goals

Process
(Eliminate Waste)

Philosophy
(Long-term Thinking)

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Typical Improvement

Opportunities Available

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Improvement Approaches of Typical Companies

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Toyota Leverages Opportunities at all Levels

7 Page 37

Most common mistake

Jumping from problem to solution without clear understanding and analysis

PROBLEM

SOLUTION

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Principle Twelve Genchi Genbutsu

12

Observe the production floor without preconceptions and with a blank mind. Repeat why five times to every matter.
-Taiichi Ohno

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No Problem is problem
Problems are opportunities to learn Hiding problems undermines the system

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Learning from the Toyota Way

Characteristics of Effective Lean Transformation

Top Down Directive that this is the new way. Bottom-up involvement in concrete projects with clear results. Develop internal experts through learning by doing. Expert sensei to guide the process and teach. Learning philosophy: every project, activity, is a chance to learn. Start with value stream transformation projects. Build on successes to transform broader organization and culture over time---YEARS!

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Why is this hard to do?

Traditional organizations in fire fighting mode No clear vision of the future state culture change is hard Organizational change is disruptive

Management has to change its role from managing from the office to deeply understanding processes!

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Lean is
A long journey that needs commitment, patience, long-term thinking, positive mindset and attitude, and continuous improvement which are merged together as operational excellence and as a strategic weapon.

Lets start the journey and Do our Best!

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