Organized to Learn

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This presentation was prepared for the students of Bainbridge Graduate Institute as part of their Sustainable Operations Course. It addresses Toyota's organizational structure and its role in team member development and continuous improvement.

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  • 5/13/95 Conversation with Charles Luttrell, Assembly A/M Charles is A/M for Assembly Trim Area . He has 6 GLs reporting to him. His largest and smallest groups are shown above. He said Assembly is shooting for 1 TL for every 4.5 TMs. This goal is based on years of experience as to what is a manageable team size. Their target for TLs is that they should be on-line 50% of the time. Not up to 50%, but actually on-line 50% of their time. Chassis Area has 1 A/M with 5 groups. Final Area A/M has 6 groups. In addition, each A/M has a functional responsibility for the department; I.e. cost, productivity, quality, etc. They sit on ad hoc committees and perform other activities for the whole shop regarding their functional area.
  • 5/13/95 Conversation with Charles Luttrell, Assembly A/M Charles is A/M for Assembly Trim Area . He has 6 GLs reporting to him. His largest and smallest groups are shown above. He said Assembly is shooting for 1 TL for every 4.5 TMs. This goal is based on years of experience as to what is a manageable team size. Their target for TLs is that they should be on-line 50% of the time. Not up to 50%, but actually on-line 50% of their time. Chassis Area has 1 A/M with 5 groups. Final Area A/M has 6 groups. In addition, each A/M has a functional responsibility for the department; I.e. cost, productivity, quality, etc. They sit on ad hoc committees and perform other activities for the whole shop regarding their functional area.
  • 5/13/95 Conversation with Charles Luttrell, Assembly A/M Charles is A/M for Assembly Trim Area . He has 6 GLs reporting to him. His largest and smallest groups are shown above. He said Assembly is shooting for 1 TL for every 4.5 TMs. This goal is based on years of experience as to what is a manageable team size. Their target for TLs is that they should be on-line 50% of the time. Not up to 50%, but actually on-line 50% of their time. Chassis Area has 1 A/M with 5 groups. Final Area A/M has 6 groups. In addition, each A/M has a functional responsibility for the department; I.e. cost, productivity, quality, etc. They sit on ad hoc committees and perform other activities for the whole shop regarding their functional area.
  • 5/13/95 Conversation with Charles Luttrell, Assembly A/M Charles is A/M for Assembly Trim Area . He has 6 GLs reporting to him. His largest and smallest groups are shown above. He said Assembly is shooting for 1 TL for every 4.5 TMs. This goal is based on years of experience as to what is a manageable team size. Their target for TLs is that they should be on-line 50% of the time. Not up to 50%, but actually on-line 50% of their time. Chassis Area has 1 A/M with 5 groups. Final Area A/M has 6 groups. In addition, each A/M has a functional responsibility for the department; I.e. cost, productivity, quality, etc. They sit on ad hoc committees and perform other activities for the whole shop regarding their functional area.
  • 5/13/95 Conversation with Charles Luttrell, Assembly A/M Charles is A/M for Assembly Trim Area . He has 6 GLs reporting to him. His largest and smallest groups are shown above. He said Assembly is shooting for 1 TL for every 4.5 TMs. This goal is based on years of experience as to what is a manageable team size. Their target for TLs is that they should be on-line 50% of the time. Not up to 50%, but actually on-line 50% of their time. Chassis Area has 1 A/M with 5 groups. Final Area A/M has 6 groups. In addition, each A/M has a functional responsibility for the department; I.e. cost, productivity, quality, etc. They sit on ad hoc committees and perform other activities for the whole shop regarding their functional area.
  • Traditional org structure – 1 Supervisor might have 3 areas like this. Versus Toyota that has 1 Group Leader and 3 Team Members
  • Distribute 11 x 17 page sheets to class Discuss line by line
  • Quiz Question - Reinforce “ What is Span of Control and why is it important?” Answer: It determines how responsive and effective a floor leader will be in supporting his / her workers and processes.
  • Once we got past the first blush of line rebalancing, gross elimination of waste, better process flow, team member training, etc. The looming question became, “Where do we go from here? How do we drive continuous improvement in a systematic fashion?” It would often take 2-3 years to get to this point, but invariably we would get to this challenge. The method that I was using most recently was a more methodic problem solving approach; i.e. Hi-Tech 12-step illustration. / Typical Toyota A-3 style of problem solving. Typically, this effort was backward looking (biggest problem from the last 30/60/90 days). It was also heavily reliant on past data and paretos. Typically the time frame would be 30-60 days… and most people become comfortable with this… i.e. sense of urgency often diminished.
  • Display poster samples of other Shop Floor Indicators (Daily Data - 5 Key Forms.xls) Why Important?? Sets clear target Can see at a glance the trend over time. Other…….
  • High Visibility Shift-to-shift comparison Daily team meeting to review performance. T/L log for shift-to-shift communication and documentation of problems.
  • 3 Teams: > Frames > Backs > End Panels Key Indicators: (each shift) >> Mis-picked parts (# pcs) >> % On-time deliveries
  • Skill-based training. Expectation is that they apply their skills on the floor.
  • Skill-based training. Expectation is that they apply their skills on the floor.
  • Analogy Coach <-> Sports Team <-> Players Actual Results validates performance Team Results Analysis Sports Team Win-Loose Statistics Business Profit, Growth SQCDM, Data Effectiveness of coach is judged by the performance of his team. Is he developing the skills and abilities in his players so they can win?
  • Organized to Learn

    1. 1. Organized to Learn Prepared for the students of Bainbridge Graduate Institute MGT 564 Sustainable Ops – Winter 2012 Training Segment - Week 9 To be seen PRIOR TO Intensive weekend #3 Rev 4 – Jan 4, 2012 Note: This SlideCast has Audio. Please turn your speakers on!
    2. 2. MGT 564 - First Day of Class Roadmap
    3. 3. Operations Tools MGT 564 - First Day of Class Roadmap MRP Waiting Lines Forecasting Inventory Management
    4. 4. Operations Tools Lean Tools MGT 564 - First Day of Class Roadmap MRP Waiting Lines Forecasting Inventory Management Kanban Takt Time One Piece Flow 5S Standard Work Waste
    5. 5. Operations Tools Lean Tools MGT 564 - First Day of Class Roadmap MRP Waiting Lines Forecasting Inventory Management Kanban Takt Time One Piece Flow 5S Standard Work Waste TPS Genchi Genbutsu Heijunka Kaizen Muda Org Structure
    6. 6. Operations Tools Lean Tools MGT 564 - First Day of Class Roadmap MRP Waiting Lines Forecasting Inventory Management Kanban Takt Time One Piece Flow 5S Standard Work Waste TPS Genchi Genbutsu Heijunka Kaizen Muda Org Structure
    7. 7. Traditional Org Structure – Good Old Days Team Member { 10 - 15 } Team Leader { 3 - 5 } Supervisor { 2 - 5 } Asst. Manager { 2 – 4 } Manager
    8. 8. Traditional Roles & Responsibilities <ul><li>Team Member </li></ul><ul><ul><li>Make product / Keep the line moving </li></ul></ul><ul><li>Team Leader </li></ul><ul><ul><li>Backfill for absenteeism </li></ul></ul><ul><ul><li>Keep the line moving / make product </li></ul></ul><ul><li>Supervisor </li></ul><ul><ul><li>Juggle manpower and production schedules to… </li></ul></ul><ul><ul><li>Hit Daily Labor & Productivity targets </li></ul></ul><ul><ul><li>Chase part shortages </li></ul></ul><ul><ul><li>Team member performance reviews </li></ul></ul><ul><li>Continuous Improvement managed by Engineering Group </li></ul>
    9. 9. Traditional Org Structure – “Leaned out” Team Member { 10 - 15 } Team Leader { 3 - 5 } Supervisor { 2 - 5 } Asst. Manager { 2 – 4 } Manager
    10. 10. Traditional Org Structure – “Leaned out” Team Member { 10 - 15 } Supervisor { 2 - 5 } Asst. Manager { 2 – 4 } Manager
    11. 11. Traditional Org Structure – “Leaned out” Team Member { 10 - 15 } Supervisor { 2 - 5 } Asst. Manager { 2 – 4 } Manager Cell Lead
    12. 12. Toyota Org Structure - Assembly Trim Team Member Team Leader Group Leader Asst. Manager Manager Smallest Group - 4 TLs - 18 TMs Largest Group - 5 TLs - 23 TMs { 3 - 10 } { 2 - 5 } { 5 - 8 } { 4 - 10 } Charles
    13. 13. <ul><li>Team Member </li></ul><ul><li>Perform work to current standard </li></ul><ul><li>Maintain 5-S in their work area </li></ul><ul><li>Perform routine minor maintenance </li></ul><ul><li>Look for Continuous Improvement opportunities </li></ul><ul><li>Support Problem Solving small group activities </li></ul>Roles & Responsibilities <ul><li>Team Leader </li></ul><ul><li>Process start-up and control </li></ul><ul><li>Meet production goals </li></ul><ul><li>Respond to TL calls by TM </li></ul><ul><li>Confirm quality - routine checks </li></ul><ul><li>Cover absenteeism </li></ul><ul><li>Training and cross-training </li></ul><ul><li>Work orders for quick maintenance </li></ul><ul><li>Insure Standardized Work is followed </li></ul><ul><li>Facilitate small group activities </li></ul><ul><li>On-going Continuous Improvement projects </li></ul><ul><li>Insure parts / materials are supplied to process </li></ul><ul><li>Group Leader </li></ul><ul><li>Manpower / vacation scheduling </li></ul><ul><li>Monthly production planning </li></ul><ul><li>Administrative: policy, attendance, corrective actions </li></ul><ul><li>Team morale </li></ul><ul><li>Confirm routine quality and TL checks </li></ul><ul><li>Shift to shift coordination </li></ul><ul><li>Process trials </li></ul><ul><li>TM development and cross-training </li></ul><ul><li>Report / track daily production results </li></ul><ul><li>Cost reduction activities </li></ul><ul><li>Process improvement projects : productivity, quality, ergonomics, etc. </li></ul><ul><li>Coordinate major maintenance </li></ul><ul><li>Coordinate support from outside groups </li></ul><ul><li>Coordinate work with up-stream and down-stream processes </li></ul><ul><li>Group safety performance </li></ul><ul><li>Help cover TL absence </li></ul><ul><li>Coordinate activities around major model changes </li></ul>
    14. 14. <ul><li>Team Member </li></ul><ul><li>Perform work to current standard </li></ul><ul><li>Maintain 5-S in their work area </li></ul><ul><li>Perform routine minor maintenance </li></ul><ul><li>Look for Continuous Improvement opportunities </li></ul><ul><li>Support Problem Solving small group activities </li></ul>Roles & Responsibilities <ul><li>Team Leader </li></ul><ul><li>Process start-up and control </li></ul><ul><li>Meet production goals </li></ul><ul><li>Respond to TL calls by TM </li></ul><ul><li>Confirm quality - routine checks </li></ul><ul><li>Cover absenteeism </li></ul><ul><li>Training and cross-training </li></ul><ul><li>Work orders for quick maintenance </li></ul><ul><li>Insure Standardized Work is followed </li></ul><ul><li>Facilitate small group activities </li></ul><ul><li>On-going Continuous Improvement projects </li></ul><ul><li>Insure parts / materials are supplied to process </li></ul><ul><li>Group Leader </li></ul><ul><li>Manpower / vacation scheduling </li></ul><ul><li>Monthly production planning </li></ul><ul><li>Administrative: policy, attendance, corrective actions </li></ul><ul><li>Team morale </li></ul><ul><li>Confirm routine quality and TL checks </li></ul><ul><li>Shift to shift coordination </li></ul><ul><li>Process trials </li></ul><ul><li>TM development and cross-training </li></ul><ul><li>Report / track daily production results </li></ul><ul><li>Cost reduction activities </li></ul><ul><li>Process improvement projects : productivity, quality, ergonomics, etc . </li></ul><ul><li>Coordinate major maintenance </li></ul><ul><li>Coordinate support from outside groups </li></ul><ul><li>Coordinate work with up-stream and down-stream processes </li></ul><ul><li>Group safety performance </li></ul><ul><li>Help cover TL absence </li></ul><ul><li>Coordinate activities around major model changes </li></ul>
    15. 17. A Day in the Life at Toyota ( 1 of 5 )
    16. 18. A Day in the Life at Toyota ( 2 of 5 )
    17. 19. A Day in the Life at Toyota ( 3 of 5 )
    18. 20. A Day in the Life at Toyota ( 4 of 5 )
    19. 21. A Day in the Life at Toyota ( 5 of 5 )
    20. 23. <ul><li>Span of Control </li></ul><ul><ul><li>Communication / Responsiveness </li></ul></ul><ul><ul><li>Visual feedback & control </li></ul></ul><ul><ul><li>Workload </li></ul></ul><ul><ul><li>Personal contact - attendance </li></ul></ul><ul><li>T/L off-line up to 50% time </li></ul><ul><ul><li>No off-line repair workers </li></ul></ul><ul><ul><li>No “extra” people </li></ul></ul><ul><ul><li>No vacation relief </li></ul></ul><ul><li>Job rotation : Multi-function workers </li></ul><ul><li>Fluidity - Adjustments to cover absences </li></ul><ul><ul><li>Acting GL <-- TL -- > TM </li></ul></ul><ul><ul><li>Acting AM <-- GL --> T/L </li></ul></ul><ul><li>Development path: TM -> TL -> GL -> AM -> Mgr. </li></ul><ul><li>Developmental strength through internal promotion </li></ul>Key Points - Organization Span of Control includes the people, area, and equipment for which a floor leader is responsible.
    21. 24. Suzaki’s Mini-Company
    22. 25. Team Leader Daily Huddle
    23. 26. Typical Mini-company Glass Walls
    24. 27. Shop Floor Indicators Simple visual measures of key indicators that directly reflect workgroup performance by shift.  Scrap or Yield  Downtime  Productivity  Schedule attainment
    25. 28. Shop Floor Indicators (cont’d) <ul><li>Key Points: </li></ul><ul><li>Trend graph </li></ul><ul><li>Target Line </li></ul><ul><li>By Day / Shift </li></ul><ul><li>Numeric Data </li></ul><ul><li>Hand written by Operator or T/L </li></ul>
    26. 29. Production Analysis Board 7-8:00 Time 1st Shift Actual Plan Comment 8-9:00 9-10:00 10-11:00 11-12:00 12-1:00 1-2:00 2-3:00 3-4:00 Time 2nd Shift Actual Plan Comment 4-5:00 5-6:00 6-7:00 7-8:00 8-9:00 9-10:00 10-11:00 Hour 1 2 3 4 5 6 7 8 9 10 11-12:00 Time 3rd Shift Actual Plan Comment 12-1:00 1-2:00 2-3:00 3-4:00 4-5:00 5-6:00 6-7:00 20 20 20 20 20 20 20 20 20 40 60 80 100 120 140 160 20 20 20 20 20 20 20 20 20 40 60 80 100 120 140 160 20 20 20 20 20 20 20 20 20 40 60 80 100 120 140 160
    27. 30. Production Analysis Board 7-8:00 Time 1st Shift Actual Plan Comment 8-9:00 9-10:00 10-11:00 11-12:00 12-1:00 1-2:00 2-3:00 3-4:00 Time 2nd Shift Actual Plan Comment 4-5:00 5-6:00 6-7:00 7-8:00 8-9:00 9-10:00 10-11:00 Hour 1 2 3 4 5 6 7 8 9 10 11-12:00 Time 3rd Shift Actual Plan Comment 12-1:00 1-2:00 2-3:00 3-4:00 4-5:00 5-6:00 6-7:00 20 20 20 20 20 20 20 20 20 40 60 80 100 120 140 160 20 20 20 20 20 20 20 20 20 40 60 80 100 120 140 160 20 20 20 20 20 20 20 20 20 40 60 80 100 120 140 160 Hour by hour Process Metric Outcome Metric In support of achieving the daily
    28. 31. Attention is the Key! <ul><li>How to ensure data is regularly reviewed: </li></ul><ul><ul><li>Data is meaningful </li></ul></ul><ul><ul><li>What is it showing us? </li></ul></ul><ul><ul><li>Where to focus our effort? </li></ul></ul><ul><ul><li>What should we do to try to improve? </li></ul></ul><ul><li>Management must provide regular attention and guidance!! </li></ul>
    29. 32. Glass wall management
    30. 33. Team Leader Daily Huddle
    31. 34. Mini-companies at Delta Faucet
    32. 35. Make People before Product <ul><li>Importance of Skill-based training </li></ul><ul><li>Truly Empowering WG to think and act for themselves … with guidance. </li></ul>
    33. 36. Toyota Training / Development Matrix (1995)
    34. 37. Toyota Training / Development Matrix (1995) Programs aimed specifically at Coaching & Continuous Improvement
    35. 38. Problem Solving Models
    36. 39. Problem Solving / Suggestions <ul><li> TRADITIONAL </li></ul><ul><li>“ Throw it over the wall” </li></ul>Supervisor Team Member I’ve got an idea! It looks good to me. Give it a try! Review & Coach Let me talk with my team and see how I can test it. Team Member Supervisor EMPOWERED “ I can do most of it myself”
    37. 41. Toyota’s “Kata” for Continuous Improvement
    38. 42. Building Partnership Management <ul><li>Establish Culture </li></ul><ul><li>Set Direction </li></ul><ul><li>Provide Structure and training </li></ul>Workers <ul><li>Participate fully </li></ul><ul><li>Accept responsibility </li></ul><ul><li>Apply the tools to Continuously improve </li></ul>TRUST Provide Coaching Accept Coaching Partnership <ul><li>Mutual Respect </li></ul><ul><li>Joint Effort </li></ul><ul><li>Accountability to each other </li></ul>Fundamentally Attitude is key

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