The document discusses Toyota's creation of a unique synthesis combining quality management, end-to-end value streams, and organizational learning. It presents Toyota's reference model for managing lean organizations, including focusing on vital few priorities, aligning through hoshin planning, analyzing value streams, and achieving stability through gemba management and kaizen problem solving. The model emphasizes defining value for customers and the organization, establishing high-level objectives and interdependencies, deploying through hoshin planning and catchball, and focusing on vital value streams.

1. Managing Lean
Organisations
Daniel T Jones

2. Reflections on Toyota
Toyota created a unique synthesis of three
improvement streams : -
Quality – from analysing variation
to managing using PDCA
End-to-end – from creating value
streams to managing value systems
Learning – from learning by doing
to everyone thinking and doing
The Reference Model
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3. Managing Lean
Direction
Top Focus Vital Few
Aligning Hoshin
Function
End-to-End VS Analysis
Value Stream
Enabling Oobeya
Stability Stability Stability Stability Stability
Gemba Plan/Actual Plan/Actual Plan/Actual Plan/Actual Plan/Actual Kaizen
Problems Problems Problems Problems Problems
The Value Stream

4. Defining Value
Value for the Customer Value for the Organisation
in the Work in the Results
Quality Growth / Customer Satisfaction
Cost Cost / Margins
Time Save Cash and Capital
New Products Investment
The true Win-Win-Win
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5. The Vital Few
High Level Objectives “Follow Me”
Interdependencies
Which
Performance
Gaps?
Hoshin
Deployment
Catchball
Which
Value
Streams?
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6. The Current Supply System
weeks
Seeing the Whole Value Stream

7. The Future Supply System
days
The Next Generation Product
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8. Box Score
“Better, Faster, Cheaper and Closer”
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9. Different Starting Points
Auto – Standard Construction – Specify
Work & Flow the Design up-front
Process – Separate High Healthcare – Unblock
Volume from the Tail Discharge & make the
Plan of Work Visible
Retail – Basket Fulfilment Government – Synchronise
& Rapid Replenishment the Delivery of Services
Service – Turn Unpredictable Finance/Admin – Eliminate
into Predictable Work Created Demand
Software/IT – Rapid Experiments
Automated Testing and Feedback
Every Organisation is a Collection of these Activities
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10. Establishing the Foundations
Sieve Pull Flow Stability
Visual Plan / Actual Teamwork Kaizen
Enable the Work Develop the Capabilities
Standard Work for Managers
“Go See” “Respect People” “Ask Why?”
TWI Learning by Doing A3 Analysis Kata practice
“Learning is the Work”
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11. The Effectiveness of Management
Focus on the vital few and deselect
To stop doing unnecessary things
Visual, frequent, stand up project reviews
To save unnecessary time in meetings
Create stability and Gemba management
To eliminate fire-fighting and emails
To develop the capabilities of subordinates
By mentoring A3s and Gemba learning
And prepare to meet new challenges
By designing lean solutions for the web era
How do managers use their time?
When are they adding value?
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12. Managing Lean
Organisations
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