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Learning from The Toyota           Way              Jeffrey K. LikerProfessor, Industrial and Operations Engineering      ...
What is lean?• Obtaining brilliant results from brilliant  processes• By focusing on (Jim Womack & Dan Jones):   –   Value...
Sounds Good, so Let’s      do lean!     But how?© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael...
Answer #1:  Eliminate waste from our processesLean Manufacturing                 CUSTOMER                                 ...
Rapid improvement                  eventsLet’s hire consultants,  who will run lots    of workshops      © Copyright Jeffr...
Rapid improvement            events                                                      • Every workshop has             ...
The problem: “What is important is having all theelements together as a system. It must   be practiced every day in a very...
Answer #2:       Lean is a production system        People                                                  Lean Processes...
Lean Production Elements         CUSTOMER SATISFACTION:        Quality, Lead-time, Cost, Safety               Just-       ...
Implement the system                                                                                              Let’s cr...
Implement the system                                                      •      More systematic change                   ...
The problem:“Creating a Buddha image and forgetting            to inject soul into it”                            Mr. Haji...
Answer #3:Lean is a production system supported by           management behavior      © Copyright Jeffrey Liker and Michae...
Manage for lean                                                                                                Find a sens...
Manage for lean                                                      •      Start to get real top                         ...
The problem:“Kaizen consciousness must be the     mindset of all employees”               Mr. Nampachi Hayashi            ...
What is a mindset?Typical problems                                                  Typical solutions      © Copyright Jef...
Typical lean mindset problems Completely satisfy customers by engineering products that  solve their usage problems Comp...
Typical lean mindset solutions• “Avoiding overproduction has to be built into the  system, a difficult task.”• “And each p...
Answer #4:Lean is a system to make people think & grow                                     1        2        3        4   ...
The sensei teach us thatLean is not applying lean tools or systems              to each process                   but  Dev...
TPS and Toyota Way                   Make the production line visibleHow?                    Reveal problems at all times ...
Measuring and understanding           performance        CUSTOMER SATISFACTION:       Quality, Lead-time, Cost, Safety    ...
Visualizing problems:                 quality            CUSTOMER SATISFACTION:           Quality, Lead-time, Cost, Safety...
Visualizing problems:    overproduction   CUSTOMER SATISFACTION:  Quality, Lead-time, Cost, Safety                   One p...
Analyzing and solving                 problems              CUSTOMER SATISFACTION:             Quality, Lead-time, Cost, S...
Following a learning cycle    CUSTOMER SATISFACTION:   Quality, Lead-time, Cost, Safety         Just-                     ...
Typical Improvement      Opportunities Available© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael...
Improvement Approaches of               Typical Companies© Copyright Jeffrey Liker and Michael Balle (most slides thanks t...
Toyota Leverages Opportunities                         at all Levels  © Copyright Jeffrey Liker and Michael Balle (most sl...
Make people think:• By going to the workplace• Observing operations with them• Showing typical problems• Outlining typical...
Role of management                                 To keep kaizen going    Top management must go to the workplaceLook at ...
Role of lean coach                                                      • Use the lean tools to                           ...
To develop employees by    problem solving                                                                 P            D ...
Toyota Mentor-Mentee                Chain      What Data?                           What’s the                            ...
Answer #5:   Lean is a business model© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Not a production tactic,   but a business strategy                                  Challenge!What do we need             ...
Not a production tactic,but a business strategy            Hoshin Kanri                    catchball                      ...
Connecting Hoshin and Floor               Management System1. What do we need to do?                                      ...
Team Board for Floor Management Development System       © Copyright Jeffrey Liker and Michael Balle (most slides thanks t...
Learning from the Toyota          Way
The lean journey                                                                         Lean culture                     ...
The lean journey starts                  with oneself • How can I learn to identify waste? • How can I become a teacher of...
To help others with the journey• Are people clear on their own  processes, do they follow their own  standards?• Are they ...
To develop kaizen consciousness“Something is wrong if employees do not  look around each day, find things that  are tediou...
The 4 PsKey Elements of ‘The Toyota Way’      © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael B...
Key Points for Implementing                 Lean System• Process improvement and people  development must go hand in hand•...
Lean is…  “A long journey that needs commitment,  patience, long-term thinking, positive  mindset and attitude, and contin...
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The Toyota Way

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The Toyota Way

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  1. 1. Learning from The Toyota Way Jeffrey K. LikerProfessor, Industrial and Operations Engineering The University of Michigan and Principal, Optiprise, Inc. BIFMA Leadership Conference January 31, 2008
  2. 2. What is lean?• Obtaining brilliant results from brilliant processes• By focusing on (Jim Womack & Dan Jones): – Value – Value streams – Flow – Pull – Perfection• By eliminating waste from all processes © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  3. 3. Sounds Good, so Let’s do lean! But how?© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  4. 4. Answer #1: Eliminate waste from our processesLean Manufacturing CUSTOMER PRODUCT ORDER BUILT & SHIPPED Waste Time (Shorter) © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  5. 5. Rapid improvement eventsLet’s hire consultants, who will run lots of workshops © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  6. 6. Rapid improvement events • Every workshop has good results But… • But these results are seldom sustained • And don’t show up in the budget • And many managers grumble© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  7. 7. The problem: “What is important is having all theelements together as a system. It must be practiced every day in a veryconsistent manner - not in spurts - in a concrete way on the shop floor.” Mr. Fujio Cho © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  8. 8. Answer #2: Lean is a production system People Lean Processes XOXO 20 20 20 20 R L Company Lean Tools Purposetakt time Problem OP 2B Solving OP 1 OP 3 OP 2A © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  9. 9. Lean Production Elements CUSTOMER SATISFACTION: Quality, Lead-time, Cost, Safety Just- Auto- In- quality Time Standardized Work / Kaizen Stability© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  10. 10. Implement the system Let’s create a Lean Office to implement a system We need to adapt TPS to our business And have a roadmapto implement Model lines Wall to wall stability © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  11. 11. Implement the system • More systematic change • Impressive model lines and wall to wall stability • But still disappointing budget But… results • Hard to spread beyond model line • Lots of conflict between the Lean Office and line management • Hard to sustain© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  12. 12. The problem:“Creating a Buddha image and forgetting to inject soul into it” Mr. Hajime Oba TPS Expert © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  13. 13. Answer #3:Lean is a production system supported by management behavior © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  14. 14. Manage for lean Find a senseiLet’s go to the workplace You can work withGemba is great teacher! And teach change from The top © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  15. 15. Manage for lean • Start to get real top management support • We can see budget level But… results each year • But it’s very uneven--results of a few large projects • And a constant fight: “the frozen middle managers just don’t get it!”© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  16. 16. The problem:“Kaizen consciousness must be the mindset of all employees” Mr. Nampachi Hayashi “The people who perpetuate a negative, disengaged culture may be the leaders themselves!” © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  17. 17. What is a mindset?Typical problems Typical solutions © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  18. 18. Typical lean mindset problems Completely satisfy customers by engineering products that solve their usage problems Completely satisfy customers by engineering and manufacturing defect free products Completely satisfy customers by offering a full product range at market price and renewing models frequently Lower costs by continuously value engineering parts Lower costs by designing products fit for lean manufacturing Lower costs by assembling different products in the same production units Lower costs by eliminating all waste in company activities © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  19. 19. Typical lean mindset solutions• “Avoiding overproduction has to be built into the system, a difficult task.”• “And each problem will have to be made visible, and then tackled by every one of the workers.”• “Visiting our factory, you will see that on one line we have eight different types of cars, not just variations.”• “At the start, the line keeps stopping, for example. Even when you see it, it is difficult to understand.” Mr. Fujio Cho © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  20. 20. Answer #4:Lean is a system to make people think & grow 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Deviation Problem From Solving Learn & Grow Standard Tighten Standard © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  21. 21. The sensei teach us thatLean is not applying lean tools or systems to each process but Developing a kaizen mindset in every employee © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  22. 22. TPS and Toyota Way Make the production line visibleHow? Reveal problems at all times Solve problems one by one Improve management standards © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  23. 23. Measuring and understanding performance CUSTOMER SATISFACTION: Quality, Lead-time, Cost, Safety Express gap Measure against target:local performance best day, hour, cycle © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  24. 24. Visualizing problems: quality CUSTOMER SATISFACTION: Quality, Lead-time, Cost, Safety Stop and notifyany abnormality, now! Auto- quality Workers stop line for every abnormalityand team leaders respond © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  25. 25. Visualizing problems: overproduction CUSTOMER SATISFACTION: Quality, Lead-time, Cost, Safety One piece flow Just- Auto- In- quality Time At Takt Time With a PULL system© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  26. 26. Analyzing and solving problems CUSTOMER SATISFACTION: Quality, Lead-time, Cost, Safety Just-Work is specified And carried out Auto- In- in detail Time consistently quality Standardized Work / Kaizen Ask why 5 times And experiment on any to try new things problem © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  27. 27. Following a learning cycle CUSTOMER SATISFACTION: Quality, Lead-time, Cost, Safety Just- Auto- In- quality Time Standardized Work / Kaizen Stability © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  28. 28. Typical Improvement Opportunities Available© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  29. 29. Improvement Approaches of Typical Companies© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  30. 30. Toyota Leverages Opportunities at all Levels © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  31. 31. Make people think:• By going to the workplace• Observing operations with them• Showing typical problems• Outlining typical solutions “We were asked to stand in a circle for 1 week and come up with 240 improvements and Implement most of them 140.” --Toyota Japan TPS Training © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  32. 32. Role of management To keep kaizen going Top management must go to the workplaceLook at problems revealed day to day, hour by hour Give people problems to solve and follow up © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  33. 33. Role of lean coach • Use the lean tools to teach managers and their teams • To visualize problems • Experiment • And solve them Teamwork!© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  34. 34. To develop employees by problem solving P D C A Plan - Do - Check - Act© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  35. 35. Toyota Mentor-Mentee Chain What Data? What’s the Problem?•Goals Targets, Metrics What can you•Dialogue do next?•Go and see•Open Questions•No Blame•PDCA•5 Why?•Regular Checks against Plan All practice the same basic patterns of Problem solving, dialogue, and mentoring © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  36. 36. Answer #5: Lean is a business model© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  37. 37. Not a production tactic, but a business strategy Challenge!What do we need Let’s get agreement to achieve for and plans at all Success? levels © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  38. 38. Not a production tactic,but a business strategy Hoshin Kanri catchball HanseiWorkplace Visual Control© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  39. 39. Connecting Hoshin and Floor Management System1. What do we need to do? Hoshin(Company Department Group) Objectives KPI’s Floor Mgmt 2. How should we do it? Daily (Process) Activities Main KPI 3. How are we doing? Sub-KPI (Results) Process KPI © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  40. 40. Team Board for Floor Management Development System © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  41. 41. Learning from the Toyota Way
  42. 42. The lean journey Lean culture Business model Management behavior Implement system Eliminate waste© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  43. 43. The lean journey starts with oneself • How can I learn to identify waste? • How can I become a teacher of waste elimination?“Here’s your school lesson for today. Don’t listen to your teachers, just watch what they do.” Woody Allen to his niece in Anne Hall “You must become the change you want to see.” Ghandi © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  44. 44. To help others with the journey• Are people clear on their own processes, do they follow their own standards?• Are they focusing on the right problems?• Are they solving them following our values and principles? © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  45. 45. To develop kaizen consciousness“Something is wrong if employees do not look around each day, find things that are tedious or boring, and then rewrite the procedures. Even last month’s manual should be out of date.” Mr. Taiichi Ohno © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  46. 46. The 4 PsKey Elements of ‘The Toyota Way’ © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  47. 47. Key Points for Implementing Lean System• Process improvement and people development must go hand in hand• You must be patient for people development – Keep your eyes open to the growth and strengthening of people (culture change) – Push when procrastination is preventing the growth of people (avoiding action) – Provide necessary challenges and support for people development! © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
  48. 48. 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.”Let’s start the journey and Do our Best! © Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
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