14 Toyota Way Principles • Long – Term Philosophy Base your Management Decisions on a Long-Term Philosophy, even at the Expense of Short-Term Financial Goals Continue …….
14 Toyota Way Principles• Long – Term Philosophy
Base your Management Decisions on a Long-Term Philosophy, even at the Expense of Short-Term Financial Goals
Continue …….
14 Toyota Way Principles• The Right Process Will Produce the Right Results
Create Continuous Process Flow to Bring Problems to the Surface
Use “Pull” Systems to avoid Over Production
Level out the Work Load (Heijunka)
Build a Culture of Stopping to Fix Problems, to get Quality Right the First Time
Standardised Tasks are the foundation for Continuous Improvement and Employee Empowerment
Use Visual Control so no Problems are Hidden
Use Only Reliable, Thoroughly Tested Technology that Serves your People and Processes Continue …….
14 Toyota Way Principles
• Add Value to the Organisation by Developing Your People and Partners
Grow Leaders who thoroughly understand the Work, Live the Philosophy and Teach it to Others
Develop Exceptional People and Teams who follow your Company’s Philosophy
Respect your Extended Network of Partners and Suppliers by Challenging them and Helping them Improve
Continue …….
14 Toyota Way Principles
• Continuously Solving Root Problems Drives Organisational Learning
Go and See for Yourself to thoroughly Understand the Situation
Make Decisions Slowly by Consensus, thoroughly Considering all Options, Implement Decisions Rapidly
Become a Learning Organisation through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen)
Philosophy(Long-term Thinking)
People and Partners
(Respect, Challenge and Grow Them)
Process(Eliminate Waste)
ProblemSolving
(Continuous Improvement & 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
•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 overproduction•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
•Base management decisions on a long-term philosophy, even at the expense of short-term financial goals
“4 P” Model of The Toyota Way
Philosophy(Long-term Thinking)
People and Partners
(Respect, Challenge and Grow Them)
Process(Eliminate Waste)
ProblemSolving
(Continuous Improvement & 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
•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 overproduction•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
•Base management decisions on a long-term philosophy, even at the expense of short-term financial goals
Gench
i G
enbuts
u
Resp
ect
&Team
work
Kaiz
en
Challenge“4 P” Model – Most Companies
Where Most“Lean”
Companiesare
Philosophy(Long-term Thinking)
People and Partners
(Respect, Challenge and Grow Them)
Process(Eliminate Waste)
ProblemSolving
(Continuous Improvement & 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
•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 overproduction•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
•Base management decisions on a long-term philosophy, even at the expense of short-term financial goals
Gench
i G
enbuts
u
Resp
ect
&Team
work
Kaiz
en
Challenge
Toyota’sTerms
“4 P” Model of The Toyota Way
Leveled Production (Heijunka)
Stable and Standardized Processes
Visual Management
Toyota Way Philosophy
Just-in-TimeRight Part, Right
Amount, Right Time
• Take Time Planning• Continuous Flow • Pull System • Quick Changeover • Integrated Logistics
Jidoka(In-station Quality)
Make ProblemsVisible
• Automatic Stops • Andon • Person – Machine
Separation • Error Proofing • In-station Quality
Control • Solve Root Cause of Problems (5 Why’s)
Best Quality – Lowest Cost – Shortest Lead Time – Best Safety – High Morale
Through shortening the production flow by eliminating waste
People & Teamwork• Selection • Common Goals • Ringi Decision Making• Cross – Trained
Waste Reduction• Genchi Genbutsu • 5 Why’s • Eyes for Waste • Problem Solving
Toyota Production System House
Continuous Improvement
Check
Check
Check
Check
Plan
Plan
Plan
Plan
Act Act Act Act Do Do Do Do
Across Companies
Company
Group
Project
Deming Cycle
Creating Flow and PDCA
Evaluate Results(Check)
SurfaceProblems
(Plan)
Counter Measures
(Do)
EliminateWaste
CreateFlow(Act)
MudaWaste
Muri Overburden
MuraUnevenness
Three M’s
Toyota Leader’s View
PEOPLE
Long – term Asset –> Learned Skills
Machinery Depreciates -> Loses Value
People Appreciates -> Continue to Grow
PHILOSOPHICAL
MANAGEM
ENTTE
CHNIC
ALTechnical
• Stability• JIT• Jidoke• Kaizen• Heijunka
Management• True North• Tools to Focus Management Attention• Go and See• Problem – Solving• Presentation Skills• Project Management• Supportive Culture
Philosophy / Basic Thinking• 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
Supply Chain Need Hierarchy
LearningEnterprise
Enabling Systems
Clear Expectations
Stable, Reliable Processes
Fair and Honorable Business Relations
Pro
gre
ssin
g N
eed S
atis
fact
ion
Reg
ressing N
eed S
atisfaction
Next Level ofImprovement
Stability
Decide andAnnounce
Seek IndividualInput, thenDecide andAnnounce
Seek GroupInput, thenDecide andAnnounce
GroupConsensus,
ManagementApproval
GroupConsensus,With FullAuthority
Level of
Involv
em
en
t
Time
Alternative Toyota Decision Making Methods
• Decision Making is Highly Situational• Philosophy is to seek Maximum Involvement for Each Situation
MythWhat TPS is Not
Myth Vs. Reality
RealityWhat TPS Is
• A Tangible recipe for Success
• A Management Project or Program
• A set of Tools for Implementation
• A system for Production Floor only
• Implementable in a Short or Mid-term Period
• A Consistent way of Thinking
• A Total Management Philosophy
• Focus on Total Customer Satisfaction
• An Environment of Teamwork and Improvement
• A Never-ending Search for a Better Way
• Quality Built in Process
• Organised, Disciplined Workplace
• Evolutionary
Motivation Theories & The Toyota WayInternal MotivationTheories
Concept
Maslow’s NeedHierarchy
Satisfy Lower LevelNeeds and MoveEmployees up the Hierarchy toward SelfActualization.
Toyota Approach
Job Security, Good Pay, Safe WorkingConditions satisfy Lower Level NeedsCulture of Continuous Improvementsupports Growth towards SelfActualization
Herzberg’s JobEnrichment Theory
Eliminate “Dissatisfiers”(Hygiene Factor) andDesign Work to CreatePositive Satisfiers(Motivators)
5S, Ergonomics Programs, VisualManagement, HR Policies addressHygiene Factors. ContinuousImprovement, Job Rotation and Build-in Feedback Support Motivators.
External MotivationTheoriesTaylor’s ScientificManagement
Scientifically Select, Design StandardizedJobs, Train & Rewardwith Money Performancerelative to Standards.
All Scientific Management Principles followed but at the Group Level rather than Individual Level and based on Employee Involvement
Behaviour Modifications Reinforce Behaviour onthe spot when the Behaviour NaturallyOccurs
Continuous flow & andon createsshort-lead times for Rapid Feedback.Leaders constantly on the floor andProviding Reinforcement.
Goal Setting Set Specific, Measur-able, AchieveableChallenging Goals andMeasure Progress.
Sets Goals that meet these CriteriaThrough Hoshin Kanri (PolicyDeployment). ContinuousMeasurements relative to Targets.
Coercive Vs. Enabling Bureaucracy
Coercive Bureaucracy
• Rigid Rule Enforcement• Extensive Written Rules and Procedures• Hierarchy Controls
Enabling Bureaucracy
• Empowered Employees• Rules and Procedures as Enabling Tools• Hierarchy Supports Organisational Learning
Autocratic
• Top Down Control• Minimum Written Rules and Procedures• Hierarchy Controls
Organic
• Empowered Employees• Minimum Rules and Procedures• Little Hierarchy
SOCIAL STRUCTURE
TEC
HN
ICA
L S
TR
UC
TU
RE
Coercive Enabling
Low
Bu
reau
cra
cy
Hig
hB
ure
au
cra
cy
5 S’s
SortClear out rarely usedItems by Red Tagging
StraightenOrganise and Label aPlace for Everything
ShineClean ItStandardise
Create Rules to Sustainthe first 3 5’S
SustainUse Regular ManagementAudits to Stay Disciplined Eliminate
Waste
Waste in a Value System
Time
Casting
Transportation
StagingSetup
Machining
Inspection
Assembly
Staging
RawMaterial
Time FinishedParts
Value – Added Time
Non-Value-Added Time (Waste)
• Value-added Time is only a Small Percentage of the Total Time• Traditional Cost Savings focuses only on Value-adding Items• Lean Thinking Focuses on the Value Stream to Eliminate Non-Value-Adding Items
Practical Problem-Solving Process1. Initial Problem Perception
(Large, Vague, Complicated Problem)
POC
The “Real Problem
2. Clarify the Problem
3. Locate Area / Point of Cause
5. Countermeasure
6. Evaluate
7. Standardise
Basic Cause and EffectInvestigation
4. 5 – Why? Investigationof Root Cause
DirectCause
Cause
Cause
Cause
Cause
Root Cause
Grasp theSituation
CauseInvestigation
Why?
Why?
Why?
Why?
Why?
The Andon System
Waste in a Truck Chassis Assembly Line
TPS Flow Environment
Product Development Matrix
Team & Batch Production Vs. On-Piece Flow