Continuous Improvement using the Toyota Way


Published on

This slide deck provides a summary of the famous Toyota Way and process framework for continous improvement. It can be used in any industry not specifically manufacturing. I created it for Hi Tech.

Published in: Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Continuous Improvement using the Toyota Way

  1. 1. Tips and Tools to be effectiveToyota Way for Continuous ImprovementAnita RaoJune 2013
  2. 2. Y?By constant improvement based upon action, one can rise to ahigher level of practice and knowledge- Fuji Cho,Toyota, 2002
  3. 3. Agenda The “4P” model Process guiding principles PDCA Problem Solving Business outcomes from Problem Solving Feedback Loop in ecosystem RCA for process improvements Strong foundational culture Formula for Delighted Customer
  4. 4. The 4 “P” ModelProcess(Eliminate Waste)People & Partners(Respect, Challenge & GrowThem)Problem Solving(ContinuousImprovement& Learning)• Continual organizational learning through kaizen• Thoroughly understand the situation• Make decisions, thoroughly considering alloptions, implement rapidly• Base managementdecisions on long termphilosophy even at theexpense of short termfinancial goals• Create process flow to surfaceproblems• Level out workload• Stop when there is a quality problem• Use visual controls• Grow leaders who live the philosophy• Respect, develop and challenge your peopleand teams• Respect, challenge and help suppliersPhilosophy(LongTermThinking)Source Jeffrey K. Liker
  5. 5. Process Guiding PrinciplesCreate process “flow” to bring problems tothe surfaceUse pull systems to avoid “over engineering”of processLevel out the workload (heijunka)Stop where there is a quality problem (jidoka)Standardize tasks for continuousimprovementUse visual controls so no problems are hiddenUse reliable, thoroughly test technologySource Jeffrey K. Liker & James K. Franz
  6. 6. PDCA Problem Solving1. Monitor Progress ofImplementation Plan2. Modify Plan if Necessary3. Monitor Results1. Develop implementation plan2. Communicate Plan3. Execute Plan1. EvaluateResults2. StandardizeEffective CounterMeasures3. Identify Further Improvement4. Spread Best Practices5. Start PDCA Again1. Identify gap to target2. Analyze root cause3. Formulate countermeasureGrasptheSituationCheckAdjustPlan Do
  7. 7. Work towards the business outcomethrough creative problem solvingCurrentStateTargetConditionTargetStateBusinessOutcomeTargetConditionTargetConditionCreativeTensionProblemSolvingGraspTheSituationPlanDoCheckAdjustGraspTheSituationPlanDoCheckAdjustGraspTheSituationPlanDoCheckAdjustGraspTheSituationPlanDoCheckAdjustGap = ChallengeSource Jeffrey K. Liker & James K. Franz
  8. 8. Feedback loop in ecosystemPartners CustomersCompany ProcessesIn ProcessFeedbackFeedback fromCustomersFeedback toPartnersSource Jeffrey K. Liker & James K. Franz
  9. 9. Root Cause Analysis: “why” ProcessImprovements are continual9Why?Process improvements are continual andaffect KPIsPeople in the work area are accountable &trainedThey report to leaders who are accountable &trainedThey report up to senior leaders who believein respect for people & continuousimprovementSo that we can Protect and manageinformation, so everyone is free to focus onachieving their goalsWhy?Why?Why?
  10. 10. Guiding Leadership builds a strongfoundational cultureHighly Developed WorkGroupsMiddle Managersas CoachesExecutives asvisionaries andguidesContinuous Checkingand AdjustingConsistency of DirectionThroughHoshin KanriCulture of continuous improvement : Skills & CommitmentSource Jeffrey K. Liker & James K. Franz
  11. 11. Engaged People and Exceptional Processes= Delighted CustomersStruggling Getting ByFire-fightingExcellingHighLowProcess StrengthStep4LowStep4Step4LowHighPeopleStrengthSource Jeffrey K. Liker & James K. FranzLowHigh
  12. 12. ThankYouTwitter @anitaprao;Blog: