Professional Documents
Culture Documents
TPS
Best Quality Lowest Cost Shortest lead Time Best Safety High Morale
People & Teamwork Problem Solving
(Continuous Improvement & Learning)
Selection Common Goals Ringi Decision-making Cross-Trained
DKD
TOYOTA LEADERS
Right Part, Right Amount, Right Time Takt Time Planning Continuous Flow Pull System Quick Changeover Integrated Logistics
(In-station Quality) Make Problems Visible Automatic Stops Andon Person-Machine separation Error-proofing In-station Quality Control Solve Root Cause of Problems (5 Whys)
Bottom-up (Development)
Just-in-Time
Top-Down (Directives)
Process
(Eliminate Waste)
Leveled Production (Heijunka) Stable & Standardized Process Visual Management Toyota Way Philosophy
Bureaucratic Manager
Follow the Rules
Task Master
Here is what to do and how Do It!
Philosophy
(Long-Term Thinking)
DKD
Sneaks .
DKD
The Toyota Way can be briefly summarized through two pillars that support it : Continuous Improvement and Respect for People. Managements critical role would be to motivate and engage large numbers of people to work together toward a common goal.
Defining and explaining what the goal is, sharing a path to achieving it, motivating the people to take the journey with you, and assisting them by removing obstacles --- those are managements reason for being.
They designed-in quality and built-in quality at every step of the process, and they did it with remarkably few labor hours. There was a sense of partnership between Toyota and its suppliers the top tier suppliers were all integrally part of the product development process.
The key to Toyota Way and what makes Toyota stand out is not any of the individual elements But what is important is having all the elements together as a system. It must be practiced everyday in a very consistent manner --- not in spurts Fujio Cho, President of Toyota Motor Company.
Its success is derived from balancing the role of people in an organizational culture that expects and values their continuous improvements, with a technical system focused on high-value-added flow.
Long-term Philosophy
The Right Process will produce the Right Results Add Value to the Organization by Developing your People and Partners
DKD
DKD
Toyotas Terms
Continual organizational Learning through Kaizen Go see for yourself to thoroughly Understand the Situation (Genchi Genbutsu ) Problem Solving Make decisions slowly by Consensus, thoroughly considering all options; (Continuous Improvement Implement Rapidly
& Learning)
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 Use pull systems to avoid over production Level out the workload (Heijunka) Stop when there is a quality problem (Jidoka) Standardize tasks for continuous improvement Use Visual Control so no problems are hidden Use only reliable, thoroughly tested technology.
Process
(Eliminate Waste)
Philosophy
(Long-Term Thinking)
Base management decisions on a Long-term philosophy, even at the expense of short-term financial goals
DKD
DKD
Best Quality Lowest Cost Shortest lead Time Best Safety High Morale
People & Teamwork Just-in-Time
Right Part, Right Amount, Right Time Selection Common Goals Ringi Decision-making Cross-Trained
Jidoka
(In-station Quality) Make Problems Visible Automatic Stops Andon Person-Machine separation Error-proofing In-station Quality Control Solve Root Cause of Problems (5 Whys)
Takt Time Planning Continuous Flow Pull System Quick Changeover Integrated Logistics
Principle 1 Base Your Management Decisions on a Long-Term Philosophy, Even at the Expense of Shot-Term Financial Goals 1. 2. 3. 4. 5. 6. Toyotas Starting Point in Business To Generate Value for the Customer, Society and the Economy.
A Mission Greater than Earning a Paycheck: Do the Right Thing for the Company, its Employees, the Customer, and Society a Whole.
DKD
Do the Right Thing for the Customer. Building Trust with Employees. Do not Let Business Decisions Undermine Trust and Mutual Respect. Use Self-Reliance to Decide Your Own Fate. Toyotas Mission Statement & Guiding Principle: TMMNA
1. 2. 3. As an American Company, contribute to the economic growth of the community and the United States. As an Independent Company, contribute to the stability and well being of team members. As a Toyota Group Company, contribute to the overall growth of Toyota by adding value to our customers.
4.
5. 6. 7. 8.
DKD
DKD
1. 2.
Most Business Processes are 90% Waste and 10% Value-Added Work.
Create continuous Flow wherever applicable in Core Manufacturing & Service Processes.
8 Non-Value-Adding Wastes;
1. 2. 3. 4. 5. 6. 7. 8. Overproduction Waiting Unnecessary Transport Over processing Excess in Inventory Unnecessary Movement Defects Unused Employee Creativity
3.
4.
Flow means that when your customer places an order, this triggers the process of obtaining raw materials needed just for that customers order. The raw material then flow immediately to supplier plants, where workers immediately fill the order with components, which flow immediately to a plant, where workers assemble the order, and then the completed order flows immediately to the customer. The Heart of One-Piece Flow Takt Time (Rhythm in German) The rate of Customer Demand - Setting the pace of production and alert workers whenever they are getting ahead or behind.
5.
Frees up Floor Space Improves Safety Improves Morale Reduces Cost of Inventory
DKD
1.
The Principle Customer Pull & Replenishment: The Toyota Way is not about Managing Inventory, it is about Eliminating It. Toyota Production System (TPS) is not a Zero-Inventory System. It relies on Stores of Materials that are replenished using Pull Systems. Kanban means a signal of some kind. Kanban System is used for managing and ensuring the flow and Production of materials in a just-in-time production system. Kanban System Remarkable, Simple, Effective and Highly Visual.
2.
Toyotas Kanban System: When pure flow system is not possible process too far apart, cycle times vary a great deal. Kanban is an organized system of Inventory Buffers. The challenge is to develop a learning organization that will find ways to reduce the number of Kanban and thereby reduce and finally eliminate the inventory buffer.
3. 4.
DKD
DKD
1.
In the application of TPS, the first thing that must be done would be to even out or level the production. This is primarily the responsibility of Production Control or Production Management. Toyota found out that it can create the leanest operation and ultimately give customers better service and better quality by leveling out the production schedule and not always build to order. Comparison between unleveled and leveled schedules of production:
Unleveled Schedule Disadvantages
1. 1. 2. 3. 4. Customers usually do not buy products predictably. There is risk of unsold goods. The use of resources is unbalanced. Placing an uneven demand on upstream processes. 2. 3. 4.
2.
BATCH PROCESSING
Economies of Scale foe Each Individual Piece of Equipment
MIXED-MODEL PROCESSING
Leveling Customer Demand to a Predictable Sequence
KEY FEATURE
Large Batches of Product before Changeover
MIXED-MODEL PROCESSING
Elimination of Set-up Time for Changeover
3.
A small inventory of finished goods is often necessary to protect a suppliers level production schedule from being jerked around b sudden spikes in demand. To achieve the lean benefits of continuous flow, leveling the workload is important. Eliminating Muda (Wastes) is only 1/3rd of achieving flow. Eliminating Muri (Overburden) and Mura (Unevenness) are equally important. Heijunka (Leveling Workload) focuses on Muri and Mura by leveling product volume and mix i.e. leveling the demand on people, equipment, and suppliers. Standardized work is far easier, cheaper, and faster to manage.
To be The Best Manufacturer of WOW Automobiles in Asean
4.
5.
DKD
Principle 5 Build a Culture of Stopping to Fix Problems, to Get Quality Right the First Time (Jidoka) 1. 2.
DKD
Quality should be built-in require a method for detecting defects when they occur and automatically stop production so an employee can fix the problem before the defect continues downstream.: In-station quality (preventing problems from being passed down the line) is much more effective and less costly than inspecting and repairing quality problems after the fact.
3.
4.
When equipment shuts down, flags or lights, usually with accompanying alarm, are used to signal that help is needed to solve quality problem. This signaling system is called Andon.
The Andon is a fixed position line stop system:
When the Andon Button is pushed or Andon Cord is pulled, light will light up but the line will continue moving. The Team Leader has until the vehicle moves to the next work station zone to respond! before the Andon turn Red and the line segment automatically stops. Team Leaders must be trained in carefully trained in standardized procedures on how to respond to Andon calls.
5.
The closer to one-piece flow, the quicker quality problems will surface to be addressed:
Using countermeasures and Error-proofing (Poka-Yoke) to fix problems. Keep Quality Control simple and involve Team Members: Four (4) Key Tools: Go and See Analyze the situation Use one-piece flow and andon to surface problems Ask Why 5 Times
6.
DKD
Principle 6 Standardized Tasks are the Foundation for Continuous Improvement and Employee Empowerment 1. Standardized Work consists of three elements:
DKD
Takt Time Time required to complete one job at the pace of customer demand. The sequence of doing things of sequence of processes. How much inventory or stock on hand the individual worker needs to have in order to accomplish the standard work.
2.
The Principle: Standardization is the basis for Continuous Improvement and Quality:
It is impossible to improve any process until it is standardized (Re: Imai Kaizen). The Standard Work Chart is posted outwards at the Shop floor For Team Leaders & Group Leaders to audit the work. Enable those doing the work to design and build in quality by writing the standardized task procedures themselves.
3.
Enabling Systems are simply the Best Practice Methods, designed and improved upon with the participation of the workforce. The standards actually help people control their own work. The worker is the most valuable asset an analyst and problem solver.
Focus best practice methods: information on performance standards is not much use without information on best practices on achieving them. System should allow customization to different level of skill/experience and should guide flexible improvisation. Systems should help people control their own work: help them form mental models of the system. Systems are best practice templates to be improved.
4.
Standardizing Work for a New Product Launch: Develop a Pilot Team in the early planning stages: workers representing all major areas of the factory are brought together full-time to an office area where as a team they help plan launch the vehicle. They work hand-in-hand with engineering and develop the initial standardized work used when the product is first launched. Then it is turned over to the production team to improve.
To be The Best Manufacturer of WOW Automobiles in Asean
DKD
Principle 6 Standardized Tasks are the Foundation for Continuous Improvement and Employee Empowerment 5. Coercive vs. Enabling Design of systems and Standards:
Coercive Systems and Procedures
System focus on performance standards so as to highlight poor performance.
DKD
Standardize the systems to minimize game-playing and monitoring costs. Systems should be designed so as to keep employees out of the control loop.
TECHNICAL STRUCTURE
6.
SOCIAL STRUCTURE
High Bureaucracy
Low Bureaucracy
Autocratic
Top down control Minimum written rules and procedures Hierarchy controls Coercive
Organic
Empowered employees Minimum rules and procedures Little hierarchy Enabling
DKD
DKD
1.
2.
Visual Control systems are about Improving Value Added Flow: Visual Control means Any communication device used in the work environment that tells at a glance how work should be done and whether it is deviating from standard. Refers to the design of just-in-time information of all types to ensure fast and proper execution of operations and processes. Integrated into the process of the value-added work, being able to look at the process, piece of equipment, inventory, or information or at worker performing a job and immediately see the standard being used to perform the task and if there is a deviation from the standard. Visual management charts must allow for communication and sharing.
3.
DKD
Principle 8 Use Only Reliable, Thoroughly Tested Technology that Serves Your People and Processes 1. The Principle Adoption of New Technology must Support your People, Process and Values:
DKD
New technology is introduced only after it is proven through direct experimentation with the involvement of a broad cross-section of people: Analyze the impact it may have on existing processes. Analyze to see if it conflicts with Toyotas philosophies and operating principles (1) Valuing People over Technology (2) Using consensus Decision Making (3) Operational focus on Waste Elimination. The Technology must be highly visual and intuitive.
2.
3.
4.
5.
The acid test for new technology lean, simple, and speedy.
To be The Best Manufacturer of WOW Automobiles in Asean
DKD
Principle 9 Grow leaders who Thoroughly Understand the Work, Live the Philosophy, and Teach it to Others 1. The Principle Growing Your Leaders Rather than Purchasing Them:
Leaders must live and thoroughly understand the Toyota Culture day by day. The Critical element of the culture is Genchi Genbutsu (deeply observing the actual situation in detail). Leaders must demonstrate this ability and understand how work gets one at a shop floor level.
DKD
2.
Toyota uses the constancy of purpose throughout the organization, which lays the groundwork for consistent and positive leadership as well as an environment for learning.
We build cars not Intellectuals! Quality First, Safety First. Extra Effort. Extra Caring.
3.
TECHNICAL
Stability
JIT Jidoka Kaizen Heijunka
MANAGEMENT
True North
Tools to focus management attention Go and See Problem-solving Presentation skills Project Management Supportive Culture
PEOPLE
Long-Term Asset Learned Skills Machinery Depreciates Loses Value People Appreciate Continue to Grow
PHILOSOPHICAL
Customer First
People are most important Asset Kaizen Go and See Focus on Floor Give feedback to team members and earn respect Efficiency Thinking True (vs. Apparent) Condition Total (vs. Individual) team involvement
DKD
Principle 9 Grow leaders who Thoroughly Understand the Work, Live the Philosophy, and Teach it to Others 4. The Chief Engineer: Critical Link to Innovation, Leadership and Customer Satisfaction:
Example Toyotas Product Development Matrix Organization: Vehicle Centers 1,2 & 3 each focus on a family of products. The functional group within each center, are technical specialty groups with their own GM. The GM controls the engineers by assigning them projects, generating their performance evaluations etc.. The CE (Chief Engineer) controls the vehicle program and is responsible for the results. The CE has to depend on all the functional groups to supply the people and get the work done.
Power train Engineering Division
DKD
Center 1
Component and System Development
Center 2
5.
CE Heavyweight Project Manager: Even though perceived as having Responsibility without Authority, the CE is:
Blessed by Top Executives Controlling the Vehicle Program Leading the Program Having Proved that he is an exceptional engineer Being the critical link between engineering and customer satisfaction
Center 3
Center Head
Chief Engineer
DKD
Principle 9 Grow leaders who Thoroughly Understand the Work, Live the Philosophy, and Teach it to Others 6. The Common Themes of Leadership at Toyota:
Primary Leadership Role is as Builders of a Learning Organization:
Bottom-up (Development)
DKD
TOYOTA LEADERS
Common Traits: Focused on Long-term Purpose as a ValueAdded Contributor to Society. Never deviated from the Precepts of the Toyota Way DNA and lived and modeled their themselves around this for all to see. Worked their way up doing the Detailed Work and continued to Go and See the Gemba. Saw Problems as Opportunities to train and coach their people.
Group Facilitator
You are Empowered
Top-Down (Directives)
Bureaucratic Manager
Follow the Rules
Task Master
Here is what to do and how Do It! In-Depth Understanding Of Work
The Leaders real challenge is having the longterm vision of knowing what to do, the knowledge of how to do it, and the ability to develop people so they can understand and do their job excellently.
DKD
Principle 10 Develop Exceptional People and Teams who Follow Your Companys Philosophy
DKD
1.
The Principle Developing Excellent Individual Work While Promoting Effective Team Work:
Excellent balance between Individual Wok and Group Work, and between Individual Excellence and Team Effectiveness. The capabilities and characteristics of individual matter. Until Individuals understand the Toyota Way and TPS, they not in position to be empowered.
2.
3.
4.
DKD
Principle 10 Develop Exceptional People and Teams who Follow Your Companys Philosophy 5. The TOYOTA ORGANIZATION (Assembly Operation), Roles and Responsibilities:
Team Size Team Member 5~8 Team Leader 3~4 Group Leader 5~8 Assistant Manager 4 - 10 Manager
DKD
PTMSB Working Group Associate Associate Leader/ Line Keeper Supervisor Executive Head Of Department
TEAM MEMBER
(Associate)
TEAM LEADER
(Associate Leader/Line keeper)
GROUP LEADER
(Supervisor)
Perform Work to Current Standard (SOP) Maintain 5S in their Work Area Perform Routine Minor Maintenance Look for Continuous Improvement Opportunities Support Problem Solving Small Group Activities
Process Start-up and Control Meet Production Goals Respond to Andon call by Team Member Confirm Quality Routine Checks Cover Absenteeism Training and Cross Training Work Orders for Quick Maintenance Insure Standardized Work is Followed Facilitate Small Group Activities On-Going Continuous Improvement Projects Insure Parts/Materials are Supplied to Process
Manpower Vacation / Scheduling Monthly Production Planning Administrative: Policy, Attendance, Corrective Actions Hoshin Planning (Policy Deployment) Team Morale Confirm Routine Quality and Team Leader Checks Shift-to-shift Coordination Process Trials (Change in process) Team Member Development & Cross Training Report/Track Daily Production Results Cost Reduction Activities Process Improvement Projects Coordinate Major Maintenance Coordinate Support form Outside Groups Coordinate Work with Upstream & Downstream Processes Group Safety Performance Help Cover Team Leader Absence Coordinate Activities around Major Model Changes
DKD
Principle 11 Respect Your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve 1. The Principle: Find Solid Partners and Grow Together to Mutual Benefit in the Long-Term:
DKD
Serious investment in building a network of highly capable suppliers integrated into Toyotas extended lean enterprise i.e. grow the business together and mutually benefit in the long-term. Supplier development includes a series of aggressive targets and challenges to meet those stretch targets, e.g. innovation, engineering, manufacturing and overall reliability. Break down barriers among functions so everyone is working toward a common goal.
2.
3.
DKD
Principle 11 Respect Your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve 4. Working with Suppliers for Mutual Learning of TPS:
Toyota works with highly capable suppliers that are following TPS or an equivalent system: Toyota needs its suppliers to be as capable as its own plants at building and delivering high quality components JIT. Toyota cannot cuts costs unless suppliers cut costs. Methodology - Learning by Doing , Real Projects on the shop floor, Jishuken Voluntary Study Groups.
DKD
5.
6.
Stability
Principle 12 Go and See for Yourself to Thoroughly Understand the Situation (Genchi Genbutsu) 1. Genchi Genbutsu Distinguishes the Toyota Way from other management approaches:
You cannot be sure you really understand any parts of the business problem unless you go and see for yourself firsthand. Tables and Numbers may measure results, but they do not reveal the details of the actual process being followed everyday.
DKD
2.
3.
2. 3.
Genchi Genbutsu
4. 5. 6. 7. 8. 9. 10.
DKD
Principle 12 Go and See for Yourself to Thoroughly Understand the Situation (Genchi Genbutsu) 4. Ohno Circle Watch and Think For Yourself
The power of deep observation, what you are seeing, to question, to analyze, and to evaluate. Data is of course important in manufacturing, but I place the greatest emphasis on facts Taiichi Ohno Think and speak based on Personally Verified Data. How can you expect to do your job without getting your hands dirty! Kiichiro Toyoda
DKD
5. 6.
DKD
Principle 13 Make Decisions Slowly by Consensus, Thoroughly Considering All Options; Implement Rapidly
DKD
Toyota stands out as the preeminent analyst of strategy and tactics. Nothing is assumed. Everything is verified. The goal is getting it right. 1. The Principle: Thorough Consideration in Decision Making:
How you arrive at the decision is just as important as the quality of the decision. Toyotas Secret to flawless implementation of new initiatives is careful, upfront planning. Underlying the entire process of planning, problem solving, and decision making is careful attention to every detail. Thorough consideration in decision making includes 5 major elements: 1. 2. 3. 4. 5. Finding out what is really going on, including Genchi Genbutsu. Understanding underlying causes that explain surface appearances asking Why 5 Times. Broadly considering alternative solutions and developing a detailed rationale for the preferred solution. Building consensus within the team, including Toyota employees and outside partners. Using very efficient communication vehicles to d one through four, preferably one side of one sheet of paper.
2.
Broadly Consider Alternative Solutions with a Set-Based Approach: Set-based Concurrent Engineering Toyota Engineers and Managers were trained to thin in sets of alternative solutions. Getting on the Same Page through Nemawashi:
Process of Nemawashi Make decisions slowly by consensus, thoroughly considering all options; implements rapidly. Example: Broad circulation of ideas works in the early stages of product development. Each design is meticulously analyzed and countermeasures are developed through study drawings. The completed study-drawing phase put together in a binder called the K4 (Kozokeikaku the study drawings that collectively address the structure and integration of the vehicle). Uncovers the facts that if not considered could lead to a great deal of pain and backtracking further down the road. Gets all the parties on board and supporting the decision so any resistance is worked-out before implementing anything. Achieves a great deal of learning up front even before anything is even planned or implemented.
To be The Best Manufacturer of WOW Automobiles in Asean
3.
DKD
Principle 13 Make Decisions Slowly by Consensus, Thoroughly Considering All Options; Implement Rapidly 4. Alternative Toyota Decision Making Methods:
Preferred
Group Consensus, With Full Authority
DKD
TITLE
Grasp The Situation
Background (Existing Value, Expectation, Policy, Goal or Plan) Current Situation (Analysis of Need and Contributing Conditions) Recommendations (cost/Benefits)
Level of Involvement
Fallback Fallback
PLAN
Implementation (Details of the Plan) Follow-up (Expected Results When, How they will be checked)
Time Decision making is highly situational Philosophy is to seek maximum involvement for each situation.
PLAN-DO-CHECK-ACT in the proposal process Pre-requisites to an efficient meeting 1. Clear objectives prior to the meeting. 2. The right people at the meeting. 3. Prepared participants. 4. Effective use of visual aids. 5. Separate information sharing from problem solving. 6. The meeting starts and ends on time.
5.
2.
PROPOSAL
5.
IMPLEMENTATION
3.
ANALYSIS
6. 7.
CONTROLS TIMELINE
DKD
Principle 14 Become A Learning Organization through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen)
DKD
A Learning Organization as a place where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together. 1. The Principle: Identify Root Causes and Develop Countermeasures:
Process-oriented and invests long term in systems of people, technology, and processes that work together to achieve high customer value. Systems are work processes & appropriate procedures to accomplish a task with the minimum amount of time & effort. The Right Process will Produce the Right Results continuous improvement (Kaizen) can only occur only after a process is stable and standardized. To be a learning organization, it is necessary to have stability of personnel, slow promotion, and very careful succession systems to protect the organizational knowledge base. The Core of Kaizen is an attitude of self-reflection and even self-criticism, a burning desire to improve. The greatest sign of strength is when an individual can openly address things that did not go right, take responsibility, and propose countermeasures to prevent these things from happening again.
2.
3.
DKD
Principle 14 Become A Learning Organization through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen) Practical Problem Solving in Seven Steps 1. Initial Problem Perception
(large, Vague, Complicated Problem) 2. Clarify the Problem
DKD
POC
Direct Cause Cause Cause Cause Cause
Cause Investigation
Why? Why?
6. Evaluate
7. Standardize
DKD
Principle 14 Become A Learning Organization through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen) 4. Process vs. Results Orientation The Role of Metrics::
There are at least three (3) types of measures at Toyota: 1. Global Performance Measures How is the Company Doing? Uses Financial, Quality and Safety Measures. 2. Operational Performance Measures How is the Plant or Department Doing? Painstakingly track progress on key metrics and compare with aggressive targets. The metrics tend be specific to a process. 3. Stretch Improvement Metrics How he Business Unit or Work Group Doing? Sets stretch goals for the Corporation and translated to business units etc. Tracking at the work group and project level. The measures are very particular to what the teams are trying to accomplish.
DKD
5.
Plan - Do
Work plan by item Action Measurement Countermeasure WORK TEAM
Check Improvement? Method? Result? C/Measure? Target & Time? ALL 3 LEVELS
DKD