Toyota Kata and Operational Excellence: A Prescriptive Approach

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This presentation highlights the shared approach between two leading experts and renowned authors: Mike Rother and Kevin Duggan. Learn how Kata enables companies to achieve Operational Excellence as we take a look at how concepts presented in Toyota Kata and Design for Operational Excellence work together in this progressive approach to lean thinking.

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  • Welcome, instructor introduction & background Ask students to display their names on the front of their desks, then go around the room for student introductions – ask for name, position, experience with Lean and/or value stream mapping, and what they want to get out of the class Value stream mapping is a tool to help you see – doesn’t make your shop any more Lean itself; rather, it directs your attention to those areas where work would yield the greatest benefit – designed to increase speed through your facility, and speed = money We like to teach informally, so questions are welcome at any time
  • Toyota Kata and Operational Excellence: A Prescriptive Approach

    1. 1. © 2013 Institute for Operational Excellence. All Right Reserved.Toyota Kata &Operational Excellence:A Prescriptive ApproachKevin Duggan, FounderInstitute for Operational Excellencewww.instituteopex.org
    2. 2. © 2013 Institute for Operational Excellence. All Right Reserved.Message from the author:“We have learned in the past that lean is a neverending continuous improvement journey. A journey ofgetting better every day. In fact, I used to teach thisvery concept. In the past seven years, I havediscovered that companies can greatly accelerate theirjourney and achieve great business results by setting adestination, and building a roadmap to that destination.After learning about Kata, I found the approach to move acompany forward to be very similar to the approach we useto teach Operational Excellence, as it provides a prescriptivemethod to achieve results. Therefore, I am very pleased toprovide this overview of how Kata can help companiesachieve Operational Excellence.”~Kevin J. Duggan
    3. 3. © 2013 Institute for Operational Excellence. All Right Reserved.1. http://www-personal.umich.edu/~mrother/What_is_a_Kata.htmlKata• Kata is defined as our “practice routines orprotocols.”1• It refers to the repeated actions weundertake, and the patterns that we enact,that enable us to master a new skill.
    4. 4. © 2013 Institute for Operational Excellence. All Right Reserved.Kata• Initially when we learn a new skill, we needto consciously think about executing it.• However, over time and with focused,deliberate practice, we becomeunconsciously capable of executing theskill.http://www.mwcmc.org/Resources/Documents/01-04-01_Rother_Toyota_Kata_Mindset.pdf
    5. 5. © 2013 Institute for Operational Excellence. All Right Reserved.Kata• It’s like pressing the brake pedal to stopyour car. At first, we have deliberately thinkabout what we’re doing in order to do it.• But, with enough practice, we no longerhave to think about the action tosuccessfully complete it.• We just do it and it happens.
    6. 6. © 2013 Institute for Operational Excellence. All Right Reserved.Rother, Mike. Toyota Kata: Managing People for Improvement, Adaptiveness, and Superior Results. McGraw-Hill. New York, 2010.CurrentCondition ObstaclesNextTargetConditionVision1. In consideration of a strategic vision or direction…2. Define an overarching breakthrough challenge (usuallysomething that impacts a customer, such as reducing lead time).3. Now, grasp the current condition at the process level.4. Define the next target condition at the process level, in thedirection of the challenge.5. Move toward that target condition with PDCA, which uncoversobstacles that need to be worked on.The Improvement Kata (IK) pattern teaches us howto align and conduct improvement activities towarda defined, breakthrough challenge.BreakthroughChallenge
    7. 7. © 2013 Institute for Operational Excellence. All Right Reserved.Operational Excellence• We can use Improvement Kata (IK)methodology to achieve OperationalExcellence.• This is done by setting the destination ofOpEx as the challenge and the principles ofOpEx as successive target conditions.
    8. 8. © 2013 Institute for Operational Excellence. All Right Reserved.Vision vs. Destination• While a traditional vision is directional, faroff, and vague on how it will beaccomplished, a destination is exact,practical, and can be achieved.• A destination means we can objectively tellwhether or not we have reached it notthrough management reports or metrics,but by simply observing the operation withour eyes and ears.
    9. 9. © 2013 Institute for Operational Excellence. All Right Reserved.Visions vs. Destinations• Vision: Be the #1 parts supplier in the world.• Destination / Challenge: I can stand at anyprocess, on the shop floor or in the office, and tell ifthat process is on time to customer demand withoutasking any questions.While the vision statement is a goal or direction inwhich to head, the destination is something wewould be able to observe with our eyes and ears.
    10. 10. © 2013 Institute for Operational Excellence. All Right Reserved.Defining Operational Excellence• OpEx has a very clear and practical definition:“When each and every employee can see the flowof value to the customer, and fix that flow before itbreaks down.”SM• This definition of OpEx is the destination orchallenge for all our improvement efforts: on theshop floor, in supporting functions like quality,maintenance, and setup teams, and even in ouroffice functions like engineering, accounting, HR,and so on.
    11. 11. © 2013 Institute for Operational Excellence. All Right Reserved.Self-Healing Flow• We can observe if we’ve reached this destination inall of these areas with our eyes and ears, no needfor other measurements.• Once we reach this destination, working in theenvironment created by it becomes second nature.In other words, it’s just routine to have employeessee flow and fix it before it breaks down, withoutmanagement intervention.• This creates what’s called a “self-healing” flow.• Self-healing flow allows management to spend itstime growing the business.
    12. 12. © 2013 Institute for Operational Excellence. All Right Reserved.Destination / Challenge: OpExCurrentCondition ObstaclesNextTargetCondition#1 PartsSupplierOpExOpEx and Improvement Kata
    13. 13. © 2013 Institute for Operational Excellence. All Right Reserved.Achieving OpEx• Once we set our destination / challenge, weset successive target conditions that weneed to achieve in order to reach thatdestination.• To achieve OpEx, we apply a set ofprinciples in sequence.• These principles are the target conditions.
    14. 14. © 2013 Institute for Operational Excellence. All Right Reserved.Principles of OpExThese principles become the successive targetconditions in order to reach our destination.1. Design a lean flow using lean guidelines.2. Implement a lean flow.3. Make the lean flow visual.4. Create standard work for the lean flow.5. Make abnormal flow visual.6. Create standard work for the abnormal flow.7. Teach employees to maintain and improve the flowto the customer.8. Free management to work on offense.Duggan, Kevin J. Design for Operational Excellence. McGraw-Hill. New York. 2011.
    15. 15. © 2013 Institute for Operational Excellence. All Right Reserved.OpExDestination: OpEx8. Freemanagement towork on offense1. Design alean flowusing leanguidelinesChallenge Challenge Challenge Challenge Challenge Challenge Challenge Challenge2. Implementa lean flow3. Make thelean flowvisual4. Createstandard workfor the leanflow5. Make abnormalflow visual6. Createstandard work forthe abnormalflow7. Teach employeesto maintain andimprove the flowTarget Conditions:The OpEx PrinciplesTargetCondition1TargetCondition2TargetCondition3TargetCondition4TargetCondition5TargetCondition6TargetCondition7TargetCondition8
    16. 16. © 2013 Institute for Operational Excellence. All Right Reserved.CurrentConditionObstaclesTargetConditionOpExValue Stream Design -OpEx Principle #1 and IKChallenge1. Design a lean flowusing lean guidelinesOpEx OpEx#1PartsSupplier
    17. 17. © 2013 Institute for Operational Excellence. All Right Reserved.• It is very important that we don’tdesign our value stream flow bymaking a current state map andlooking at it for areas ofopportunity.• Following that method creates a“Whac – A – Mole” approachwhere we endlessly respond toproblems that arise instead ofachieving a destination.Value Stream Design -OpEx Principle #1 and IK
    18. 18. © 2013 Institute for Operational Excellence. All Right Reserved.Lean Guidelines for ValueStream Design• 8 guidelines for end-to-end value stream design1• 10 guidelines for the mixed model pacemaker2• 6 guidelines for creating flow through sharedresources*• 9 guidelines to creating flow through the office3• 7 guidelines to creating flow through the supply chain*Each set of guidelines must be completed using the IKmethodology in order to completely meet thechallenge of OpEx principle #1.3. The Faculty and Staff of the Institute for Operational Excellence. The Office that Grows Your Business. The Institutefor Operational Excellence. North Kingstown, RI. 2009.* Duggan, Kevin J. Design for Operational Excellence. McGraw-Hill. New York. 2012.1. Rother, Mike and John Shook. Learning to See. Lean Enterprise Institute. Cambridge, MA. 2003.2. Duggan, Kevin J. Creating Mixed Model Value Streams, Second Edition. Taylor and Francis. New York. 2013.
    19. 19. © 2013 Institute for Operational Excellence. All Right Reserved.CurrentConditionTargetConditionChallenge1. Design a leanflow using leanguidelines8 guidelinesfor end-to-end valuestreamdesign10 guidelines forthe mixed modelpacemaker6 guidelinesfor creatingflow throughsharedresources9 guidelines tocreate flowthrough theoffice7 guidelines forcreating flowthrough thesupply chainOpExValue Stream Design -OpEx Principle #1 and IKOpEx OpEx#1PartsSupplier
    20. 20. © 2013 Institute for Operational Excellence. All Right Reserved.• OpEx principle #1 teaches us to design value streamflow using lean guidelines. These guidelines provide astructured design of flow through the operation thatwill enable Operational Excellence.• We will encounter obstacles in designing our futurestate, and we must work through each one.Value Stream Design -OpEx Principle #1 and IK
    21. 21. © 2013 Institute for Operational Excellence. All Right Reserved.CurrentConditionObstaclesTargetConditionOpExMultiple “Branches” for theChallengeChallengeDesign a lean flowthrough assemblyCurrentConditionObstaclesTargetConditionCurrentConditionObstaclesTargetConditionThere will be multiple, separatecurrent process conditions, eachwith its own next target condition,all leading to the same destination,or the fulfillment of the sameoverall challenge.http://www-personal.umich.edu/~mrother/Handbook/Direction.pdfOpEx OpEx#1PartsSupplierDesign lean flow through sharedresources with sequenced FIFODesign a pull system forsheet metal parts
    22. 22. © 2013 Institute for Operational Excellence. All Right Reserved.• Once we’ve designed our future state using theseguidelines, they become our new current condition,and OpEx principle #2 becomes our next targetcondition in our improvement kata.Value Stream Design -OpEx Principle #1 and IK
    23. 23. © 2013 Institute for Operational Excellence. All Right Reserved.CurrentConditionObstaclesTargetConditionOpExOpEx Principle #2Challenge2. Implement a lean flowOpEx OpEx#1PartsSupplierWe have designed a leanflow using lean guidelines.
    24. 24. © 2013 Institute for Operational Excellence. All Right Reserved.Implementing Lean Flow• OpEx principle #2 teaches us to break our value streammap into loops and implement flow starting with theprocesses closest to the customer and then workingour way back upstream.• Like before, we will encounter obstacles whenimplementing flow, and we must work through eachone.• Once we’ve implemented our future state, OpExprinciple #2 becomes our new current condition, andOpEx principle #3 becomes our next target condition inour improvement kata.
    25. 25. © 2013 Institute for Operational Excellence. All Right Reserved.CurrentconditionTargetconditionOpExImprovement Kata and OpExWherewebegan.ObstaclesWe continue applying the rest of the OpExprinciples in the same way, setting the just-completed principle as our current condition,the next one as our target condition, andworking through obstacles that come up byfollowing defined design guidelines in order toachieve the target condition. We applyprinciples 1-7 in this way.1. Design alean flowusing leanguidelines2.Implementa lean flowNewCurrentconditionLean flowdesignedNewTargetconditionVSMMS/ROfficeSC
    26. 26. © 2013 Institute for Operational Excellence. All Right Reserved.Achieving OpEx with Kata• From where we are, we set our destinationto be Operational Excellence. We thenproceed to get there by using ourimprovement kata to apply OpEx principles1-7, ending up with an operation where:“Each and every employee can see theflow of value to the customer, and fix thatflow before it breaks down.”SM
    27. 27. © 2013 Institute for Operational Excellence. All Right Reserved.Business Growth• Once OpEx principles 1-7 are applied usingour improvement kata, we are able toeffectively remove management personnelfrom the day-to-day running of theoperation (defense), giving them the timethey need to work on offense, or theactivities that grow the business.
    28. 28. © 2013 Institute for Operational Excellence. All Right Reserved.Business Growth• Freeing up management’s time to work onoffense is the real end game in OpEx,unleashing the resources of theorganization to achieve both top andbottom line growth.
    29. 29. © 2013 Institute for Operational Excellence. All Right Reserved.Business GrowthFurther information on the principles of OpEx,companies that have applied this thinking,and their success can be found in:Available at www.instituteopex.org
    30. 30. © 2013 Institute for Operational Excellence. All Right Reserved.Further ReadingBecome a member of the Institute forOperational Excellence at ww.instituteopex.org.Membership is free and includes access tohelpful articles, podcasts, and videos on OpEx.

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