toyota - process

Lessons Learned fromthe Toyota Way

7

Words of Wisdom

“It is not the strongest nor the mostintelligent of the species that survives, butthe one that is most adaptable to change”

-Charles Darwin-

7/22/2009

“4 P” Model of the Toyota Way

ProblemSolving(Continuous

Improvement and Learning)

People and Partners

¾ Continual organizational learning through Kaizen¾ Go see for yourself to thoroughly understand the situation.

(Genchi Genbutsu)¾ Make decisions slowly by consensus, thoroughly

considering all options; implement rapidly ( Nemawashi )

¾ Grow leaders who live the philosophy¾ Respect, develop and challenge your people

and teams(Respect, Challenge and Grow Them) ¾ Respect, challenge, and help your suppliers

Adding Value to Customers &Proce Society

(Eliminate Waste) improvement

ems

Jidoka)ion

¾ Use visual control so no problems are hidden¾ Use only reliable, thoroughly tested

technology

Philosophy(Long-term Thinking)

¾ Base management decisions ona long-term philosophy, even

at the expense of short-termfinancial goals

7/22/2009

Base management decisions on along term philosophy, even at the

expense of short-term financialgoals

Toyota mission:

1

• Contribute to the economic growth of the country inwhich it is located (external stakeholders)

• Contribute to the stability and well being of teammembers and partners (internal stakeholders)

• Contribute to the overall growth of Toyota

7/22/2009

Principle One

1

“The most important factors forsuccess are patience, a focus onlong term rather than short-termresults, reinvestment in people,product, and plant, and anunforgiving commitment toquality.”

-Robert B. McCurry,former Executive V.P., Toyota Motor Sales

7/22/2009


ProblemSolving

(ContinuousImprovement and Learning)




Eliminate Waste through FlowPeople and

(Respect, Challenge

Process(Eliminate Waste)


& Standardization

¾ Create process “flow” to surface problems¾ Level out the workload (Heijunka)

¾ Stop when there is a quality problem (Jidoka)¾ Use pull systems to avoid overproduction

¾ Standardize tasks for continuousimprovement


technology



7/22/2009

Lean Manufacturingis a manufacturing philosophy which shortens the timebetween the customer order and the product build /shipment by eliminating sources of waste.

Business as UsualCUSTOMER

ORDERWaste PRODUCT

BUILT & SHIPPED

TimeLean Manufacturing

CUSTOMER PRODUCTORDER BUILT & SHIPPED

Waste

Time (Shorter)

7/22/2009

Product Lead Time

CastingWaiting

TransportationMachining

Staging InventoryAssembly

Staging

RawMaterial

Time

= ValueAdded Time

= Non-ValueAdded Time(WASTE)

FinishedParts

�Value Added Time is only a very smallpercentage of the Lead time.

�Traditional Cost Savings focused on onlyValue Added Items.

� LEAN FOCUSES ON NON-VALUEADDING ITEMS .

7/22/2009

Before Lean: Organization By Machine Type WithConvoluted Flow

No Organization and No Control

LATHE

PART FLOW

MILL

LATHE

MILL

LATHELATHE

500pcs.

MILL MILLMILL

750pcs.

GRINDER

DRILL

GRINDER

250pcs.

DRILL DRILL

GRINDER

7/22/2009

After Lean: U-Shaped One-Piece Flow Cell

Organization and Control

PART FLOW

Build toTakt Time!

7/22/2009

Simplified Pull SystemDownstream processes withdraw what they need when they need it.

Empties +production kanban

ABCDEF

New product GH

Supplier Plant

Empties + withdrawalkanban

PULLCustomer Plant

NeededComponents + kanban

Preceding processes replenish what is taken away.

Value Stream Perspective

Get away from isolated perspective / improvements

Process 1 Process 2 Process 3

Kaizen Kaizen

Kaizen

7/22/2009

Why Focus on Flow?

“If some problem occurs in one-piece-flowmanufacturing then the whole productionline stops. In this sense it is a very badsystem of manufacturing. But whenproduction stops everyone is forced tosolve the problem immediately. So teammembers have to think, and throughthinking team members grow and becomebetter team members and people.”

-Teruyuki Minoura, former President,Toyota Motor Manufacturing, North America

7/22/2009

Lean Tools to Support Flow

• 5S-Visual Workplace

• Total Productive Maintenance

• Quick Changeover

• Standardized Work

• Quality Methods

7/22/2009

What is a Visual Workplace?

When anyone can walk into aworkplace and visuallyunderstand the currentsituation.

7/22/2009 4

Describe this area...

7/22/2009

What is TPM?

Total Productive Maintenance (TPM)is

Productive Maintenance withEVERYONE’s participation

Maintenance=Teachers, Doctors of EquipmentOperators=Clean, inspect, routine repair

7/22/2009

Why Quick Change Over?

Change Over

Average inventory levels

Difference in averageinventory level withmore changeovers

Time

The more quickly we changeover, the more ourinventory levels decrease. This helps accomplishour goal of waste elimination.

7/22/2009

Standard Work Tools

StandardizedWork Chart

Detail of each TaktProcess Step 90s

Work Element Sheet

Detail of the Elementsof each Process Step

1 2 3 4 5Assembly Process #

Stack Chart(Yamazumi)

A Visual Tool forBalancing Processes

7/22/2009

Standardized tasks are the foundationfor continuous improvement and 6

employee empowerment

“Today’s standardization…is the necessaryfoundation on which tomorrow’simprovement will be based. If you think of“standardization” as the best you knowtoday, but which is to be improvedtomorrow-you get somewhere. But if youthink of standards as confining, thenprogress stops.”

Henry Ford, Today and Tomorrow, 1926

7/22/2009




People and Partners

The heart & soul ofituation.The Toyota Way

considering all options; implement rapidly (Nemawashi)


and teams(Respect, Challenge and Grow Them)



¾ Respect, challenge, and help your suppliers





technology



7/22/2009

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 followyour company’s philosophy

11. Respect your extended network of partners andsuppliers by challenging them and helping themimprove

7/22/2009

One-Piece Flow Demands Team Work!

Traditional WesternTeam

x x

xx x

Station B

x x x

xx x x x

x

Station A Station C

Needhelp? Need

help?

x

x

x

X

Toyota Way TeamWorkcell

7/22/2009

Principle Five: Stop & FixProblems

“Mr. Ohno used to say that no problem discoveredwhen stopping the line should wait longer thantomorrow morning to be fixed. Because whenmaking a car every minute we know we will havethe same problem again tomorrow.”

-Fujio Cho, President, Toyota Motor Corporation

7/22/2009

1 2 3 4 5 6 7

8 9 10STOP BUTTON

(STOP THE L NE AUTHOR ITY )

4

11 12 13 14STOP BUTTON

(STOP THE L NE AUTHOR ITY )

5

AbnormalityStation 5

Team Leader

Typical Toyota Organization to support Continuous ImprovementT

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

7/22/2009

• Job Instruction Training is designed to teach

people how to do a particular job by:

¾ Hearing (what to do)

¾ Seeing (how it is done)

¾ Using (what was learned)

¾ Saying (what was learned)

¾ Doing (the task)

¾ REPEATEDLY !!

7/22/2009

The Four Steps of TJI

Step 4: FOLLOW UP Step 1: PREPAREWORKER

Action Plan

Major Steps

Key Points

Check Reasons Do

Step 3: TRY OUT Step 2: PRESENTPERFORMANCE OPERATION

7/22/2009

Bumper Trimming Job Breakdown Sheet

JOB BREAKDOWN SHEET Phil Turek Todd Chambers

DATE: 7/20/2006 Team Leader Supervisor

AREA: Bumper molding JOB: Rear bumper molding operator - Trimming WRITTEN BY: Phil Turek

MAJORSTEPS

Step # 1

KEYPOINTSSAFETY: Injury avoidance, ergonomics, danger pointsQUALITY: Defect avoidance, check points, standardsTECHNIQUE: Efficient movement, special method

COST: Proper use of materials

1. Hold flash straight up and tight

REASONS FOR KEYPOINTS

1. Makes trimming easier

2. Trim away from body and arm 2. Prevents injury- cuts

Trim flash ball on left side 3. Blade flush with top surface 3. Visible surface, flash line 1mm max.

Step # 2 1. Start on trim line- 1 mm variation 1. Visible surface- quality spec.

2. Blade must be perpindicular 2. Angled cut not acceptable

Trim left side core flash 3. Follow trim line- 1mm variation 3. Visible surface- quality spec.

4. Curving motion while trimming 4. Technique to make trimming easier

Step # 3 1. Hold gate up horizontally 1. Prevents twisting of bumper during cut

2. Rest blade on bumper edge horizontally 2. Helps make cut horizontal and straight

Trim gate flash 3. Angle knife handle back (blade is horizontal) 3. Cut is easier

4. One continuous movement 4. Stopping will cause a jagged cut

Step # 4 1. Hold flash straight up and tight 1. Makes trimming easier

2. Trim away from body and arm 2. Prevents injury- cuts

Trim flash ball on right side 3. Blade flush with top surface 3. Visible surface, flash line 1mm max.

Step # 5 1. Start on trim line- 1 mm variation 1. Visible surface- quality spec.

2. Blade must be perpindicular 2. Angled cut not acceptable

Trim right side core flash 3. Follow trim line- 1mm variation 3. Visible surface- quality spec.

4. Curving motion while trimming 4. Technique to make trimming easier

LEAN ASSOCIATES, INC. www.leanassociates.com

Auditing Standardized Work

7

Roles and Responsibilities

General Manager and VP LevelConcentrate on Business Planningand Policy Improvement. Tools:Hoshin Planning & TBP

Manager LevelFocus on Shop Floor andSystems Improvement.

Tools: Visual Factory & TBPT

Team Leader and Group LeaderManage Standardized Work, Process

Improvement and Develop ProblemSolving Skills. Tools: FMDS, TBP & OJD

Team MemberFocus on Fundamental Skills & Standardized Work

Tools: Skills Training, Job Instruction, Standardized Workand 5-S

7/22/2009

Toyota Way Principles in 4P Model

The dynamic ofThe Toyota Way



People and Partners





and teams(Respect, Challenge and Grow Them)



¾ Respect, challenge, and help your suppliers





technology



7/22/2009

Typical Improvement Opportunities Available

7/22/2009

Improvement Approaches of Typical Companies

7/22/2009

Toyota LeveragesOpportunities at all Levels

7

Most common mistake

• Jumping from “problem” to “solution” without clear understanding and analysis

PROBLEM

SOLUTION

7/22/2009

Principle TwelveGenchi Genbutsu 12

“Observe the production floor withoutpreconceptions and with a blank mind.Repeat “why” five times to everymatter.”

-Taiichi Ohno

7/22/2009

“No Problem” is problem

• Problems are opportunities to learn

• Hiding problems undermines the system

7/22/2009

Learning from the Toyota Way

Characteristics of EffectiveLean Transformation

• Top Down Directive that this is the new way.

• Bottom-up involvement in concrete projects with clearresults.

• Develop internal experts through learning by doing.

• Expert sensei to guide the process and teach.

• Learning philosophy: every project, activity, is a chance tolearn.

• Start with value stream transformation projects.

• Build on successes to transform broader organization andculture over time---YEARS!

7/22/2009

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 managingfrom the office to deeply understanding processes!

7/22/2009

Lean is…“A long journey that needs commitment,patience, long-term thinking, positivemindset and attitude, and continuousimprovement which are merged togetheras operational excellence and as a strategicweapon.”

Let’s start the journey and Do our Best!

7/22/2009

toyota - process

Documents

make decisions

ne author

term financial

hold flash

continual

surface problems

follow trim

trim line