Toyota are 18 months into an agile transformation. In his talk at the Lean Digital Summit 2018, Nigel Thurlow explained why they need to adopt Agile and why being Lean is not enough on its own. Discover more Lean IT stories on www.lean-digital-summit.com

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Lean is NOT Enough
Nigel Thurlow - Chief of Agile
Toyota Connected
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Lean Digital Summit Lisboa 2018

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Nigel Thurlow - Chief of Agile
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Lisboa 2018

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The Toyota Connected Agile Leaders
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Why Toyota Connected?
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TPS/Lean is NOT Enough
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Our Focus is Changing
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“It's my goal to transition Toyota
from an automobile company to
a mobility company, and the
possibilities of what we can build,
in my mind, are endless.”
Akio Toyoda at CES, Jan 2018

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We Are Connected to the Past
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This logo reaches into TOYOTA’s past for
inspiration to establish a modern mark for
this new company.
It is the bridge from where the company
started to where we are going.

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Our History is Innovation
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And Are Still Toyota!
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But We Are Very Different
Yep, That’s Beer!
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Very Very Different
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HR Director

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Because We MUST Change
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We need to become more like IT companies, before IT companies become more like us!

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Shared Sense of Crisis Needed
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“We aren’t giving up on our main business, but we can’t
vaguely just continue to make cars. For everyone to
share this sense of crisis is still a challenge.”
Toyoda-san himself has singled out tech companies as “our new
rivals, with speed many times greater than our own.”
“A life-or-death battle has begun in a world of unknowns.”
Source: https://www.bloomberg.com/news/features/2018-09-19/toyota-s-vision-of-autonomous-cars-is-not-exactly-driverless
Akio Toyoda - President TMC
Shigeki Tomoyama - Senior Managing Officer TMC
Chairman Toyota Connected
Akio ToyodaShigeki Tomoyama

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So what do we do?
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Telematics Data
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Steering Angle
Accelerometer
Brake Sensor
Tire Pressure
Sensor
Odometer
Speedometer
RPMs
Gas Pedal
Window Sensor
Fuel Level
GPS

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Truly BIG Data
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48 average driving minutes per day
7.2 Million data points
per Connected Vehicle
per day
500+ unique data points
generated every 200 milliseconds
captured in real-time

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AI & Machine Learning
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Future Ideas

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Telematics Based Insurance
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• Overall Trip Score
• Acceleration Score
• Speed Score
• Braking Score
• Cornering Score
• Trip History

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HUI Ride Sharing

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Ride Sharing is Part of the Future
22Toyota Have Invested $1.7 Billion This Year in Ride Sharing Companies

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What Does Agile Mean?
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What Agility Delivers
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Deliver Faster Higher Quality Lower Cost
Reduce Complexity Faster Decisions Stay Ahead

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Agility Enables Customer 1st
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Shotaro Kamiya, the first
President of Toyota Motor Sales
Co., Ltd. Japan, was the first
Toyota executive to publicly
declare that the primary focus of
the car manufacturer must always
be the customer. May 1946
Source: http://www.toyota-
global.com/company/toyota_traditions/philos
ophy/mar_sep_2010.html

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Delivering Better Services Faster
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2010-2014 Models
2.43 Million Cars
Updating…
Est Cost: $315 Million
Based on $130 per vehicle labor costs
Added New Dash Cam Capability
And Various Enhancements
Est Cost: Free
Owners Simply Connect to WiFi

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BUT Agile is for Software Right?
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CHANGE
PLANS
OF
Responding to Change Over Following a Plan

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HVAC with Scrum The Toyota Way
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John Kramer Chairman
I wish I had this 10 years ago.
I’m watching it change our
people’s lives every day as they
go home with a sense of
accomplishment. —John Kramer

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DPD Narcotics Division
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Source: Major Max Geron DPD

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Agile is About Working Differently
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Problem
Partner Toyota
</>
Independent Testing of
Hardware & Software
Countermeasure
Create a multi Vendor Team
and test together!

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SMED - Rapidly Retool Your Machines
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Rapidly Retool Your Business?
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Right Product at the Right Time for the Right Customer
What if we don’t change at all…
and something magical just happens?

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Lean is Product Flow Efficiency
33Flow Efficiency
Resource
Efficiency
Low High
Low
High
“All we are doing is looking at the time line from
the moment the customer gives us the order to
the point when we collect the cash.
Are we reducing the timeline by reducing the non
value adding waste”
Start
Ultimate
Goal

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Building the
Right Product
AGILE
Applying Lean - Agile - Scrum
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Building the
Product Right
TPS/LEAN
Empirical Planning
w/Feedback Loop
SCRUM
You Can Be
Lean without
Being Agile
You Can Be
Agile without
Being Lean
Ideally We Want to Be Lean AND Agile

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Agile is a KAIKAKU for Toyota
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Change Transform
Change Good

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Agile Leadership - Customer 1st
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Masahiro Nakashima
Chief Operating Officer
“I clean Toyoda room at least once a day
because it is where most important customers
visit.”
“I can’t code but I can clean”

37. Real Agility at Toyota
Next Gen Hardware

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How is Toyota Connected Agile?
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Lean Scrum Agile - The Connection
TPS/Lean 1950s
Inspired
Scrum 1995
eXtreme Programming 1996
Created
Agile 2001
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Scrum Project Management 1986
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Hirotaka
Takeuchi
Ikujiro
Nonaka

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Jeff Sutherland & Ken Schwaber first presented it in
1995 in Austin Texas.
Scrum had two key influences. Toyota & Dupont.
• Toyota - Toyota Production System TPS.
• Dupont - Empirical Planning Process.
Scrum Guide Published in 1995
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Ken met with the Process group at Dupont and as a result added empirical planning to Scrum
"I told them about the work we were doing and they told me I was an idiot applying a plan driven
approach. I took that idea back to Jeff and we added an empirical model to Scrum.” — Ken Schwaber

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Scrum - A Framework for Agility
• Scrum is an empirical approach with a rapid customer feedback loop.
• A basic discipline to enable small teams to deliver rapid increments of
value in short time boxes.
• Scrum enables us to respond to changing customer demand more
rapidly.
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Requirement VALUE

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How Scrum Works
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• Sprint Planning - Create a plan for the
short iteration called a Sprint
• Backlog Refinement - Spend time every
sprint refining upcoming requirements.
• The Sprint - Deliver working iterations of
the product or service.
• Daily Scrum - Inspect and Adapt the
plan daily. Solve Impediments.
• Sprint Review - Review completed work
with customers & update requirements.
• Sprint Retrospective - Kaizen the team
and delivery process.

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PDCA and SCRUM
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Scrum is PDCA Codified
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2hrs/wk/sprint 1-4 weeks 1hr/wk/sprint 45m/wk/sprint
Plan DO Check Act

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Understanding Complexity
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Great Teams are Not Automatic
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Doing Scrum Does Not
Make You a Team
Task Interdependency (context)
Determines if you need a team.
Interdependently, Adaptively, and
Dynamically Toward a Shared & Valued Goal.
+
GOAL
Teamwork is Associated with Emergent
States like Affect, Behaviors, & Cognitions
Teams Need to Learn How to
be a Team. It’s not automatic!
The Interactions Matter More than
the People Doing the Interacting.
Teamwork
vs
Task Work

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Partnership with Scientists
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Toyota Connected is working with UNT on Multi Team Systems to improve Agility at Large Scale
Team Science Department

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North America Manufacturing Companies
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As of August 2018
186 69Days Days
Before Scrum After Scrum

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Internal Logistics Mgmt System (ILMS)
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Shared Services Teams
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Problem Countermeasure
Significant Impact to Customer 1st Decisions Made in Real Time
11 Weeks to build a server! Horizontal Cross Functional Bridge TeamDocuments Created
in Real Time
Design
Document
Quality
Cost Delivery
All The Skills
Result: 11 weeks to 2 days!

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Agility at Toyota
200+ Teams 1 Week Sprints
Debbie West
TMNA

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Continuous Improvement

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Self Guided Correction
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Tracked at the Meta Level
*
*
*

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Meta Team View
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Team
Names

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TOYOTA AJAIRU GIJUTSU
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August 21st 2018
July 30th 2018 Yokoten with DPD and the Navy

57. Maybe put new TC video here about 3 mins long
Building the Future

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Kaizen is our Culture
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Before you say you can’t do something, try it! —Sakichi Toyoda