Operations Management the Japanese way.pptx

OPERATIONS
MANAGEMENT
from the Japanese perspective
Ravindran Raghavan
Web: www.ravi311.com Email: ravi311@outlook.com

OPERATIONS
MANAGEMENT
What is Operations
Management?
Ravindran Raghavan
Email: ravi311@outlook.com

OPERATIONS
MANAGEMENT
What is Operations
Management?
Converting material,
labour and services into
money!
Ravindran Raghavan

OPERATIONS
MANAGEMENT
What is Operations
Management?
If operations is efficient
 we make more money
 we waste less resources
Ravindran Raghavan

1. Continuous Improvement
2. Respect for People
3. Right Process Right Results
4. Adding Value to Your Processes
5. Root Cause Problem Solving
OPERATIONS
MANAGEMENT
Ravindran Raghavan

Continuous
improvement Ravindran Raghavan

Continuous versus continual
Continuous improvement
process (CIP), is an ongoing
effort to improve products,
services, or processes
1
ISO9000:2000 uses the term
continual to mean “step-wise
improvement or improvement
in segments”
2
Ravindran Raghavan

Principles of
CIP
• The core principle of CIP is the (self)
reflection of processes.
Feedback
• The purpose of CIP is the identification,
reduction, and elimination of suboptimal
processes.
Identify weakness
• The emphasis of CIP is on incremental,
continual steps rather than giant leaps
Incremental steps
Ravindran Raghavan

Masaaki Imai
What is special about him?
Ravindran Raghavan

Masaaki Imai
Wrote the book
Kaizen: The key to Japan's
competitive success
A well-known CIP concept adopted
worldwide
Ravindran Raghavan

Is this a recipe for chicken rice?
Ravindran Raghavan

Kaizen:
A well known CIP concept adopted
worldwide
Ravindran Raghavan

The Japanese
experience  Kaizen = translated as
kai (“change”) zen
(“good”)
 This method became
famous from Masaaki
Imai’s published in 1986
Ravindran Raghavan

The Kaizen
Umbrella
Ravindran Raghavan

Ravindran Raghavan

Take small incremental steps
and improve continuously
Not one high jump at high
speed
Ravindran Raghavan

Respect for
People
Ravindran Raghavan

Source: Mark Graban (https://www.leanblog.org/)
Display at
Toyota Museum,
Japan
Ravindran Raghavan

The Toyota
Way 2001
Ravindran Raghavan

The Toyota
Way 2001
There is no limit to how far human
wisdom can be developed
Within the company we continually
aim to achieve
 mutual understanding,
 fulfil mutual responsibilities,
and
 combine the power of our
individual employees.
Ravindran Raghavan

The Toyota
Way 2001
What are the principles of
Toyota Way?
Ravindran Raghavan

The Toyota Way
We will selectively
review the relevant
principles
Ravindran Raghavan

Add value by developing people
 Principle 9 - to ensure that leaders embrace and promote the corporate
philosophy.
 Principle 10 - individuals and work teams to embrace the company's
philosophy, with teams who are judged in success by their team
achievements, rather than their individual efforts.
 Principle 11 - looks to business partners, who are treated by Toyota much
like they treat their employees. Help suppliers discover and fix problems
so that they can become a stronger, better supplier.
Ravindran Raghavan

… Switcher
Ravindran Raghavan

Right Process –
Right Results
Ravindran Raghavan

The art of
getting it right!
Right
Process
+ Right
People
= Right
Results
Ravindran Raghavan

The
misconceptions
Misconception #1:
Managers think
standardization is about finding
the one and only best way to
do something.
Misconception #2:
Staff think that once their job is
standardized, they’ll be
replaced.
Right
Process
+ Right
People
= Right
Results
Ravindran Raghavan

The
misconceptions
Misconception #3:
If I document my work, I will
lose my importance.
Misconception #4:
To save my job, I must not be
transparent. Keep some
information to myself
Right
Process
+ Right
People
= Right
Results
Ravindran Raghavan

Eliminate the 7 wastes
 Principle 2 - Create a
continuous process flow to
bring problems to the
surface. Eliminate the 7
“muda” (waste)
1. Over-production
2. Waiting (time on hand)
3. Unnecessary transport
4. Over-processing or incorrect
processing
5. Excess inventory
6. Motion
7. Defects
Ravindran Raghavan

Level the workload
Principle 4 – Level out
the “heijunka” (workload)
 Equal load on all people
 Distributed load on machines
Ravindran Raghavan

“5S” – Use visual control
1. seiri (整理)
2. seiton (整頓)
3. seisō (清掃)
4. seiketsu (清潔)
5. shitsuke (躾).
Five
“S”
Ravindran Raghavan

“5S” – Use visual control
Principle 7 - use visual control so no
problems are hidden.
 Sort: Sort out unneeded items
 Straighten: Have a place for everything
 Shine: Keep the area clean
 Standardize: Create rules and standard
operating procedures
 Sustain: Maintain the system and continue
to improve it
Ravindran Raghavan

Adding Value to
your Processes
Ravindran Raghavan

Adding value to your process
Adding value for
customer
1
Adding value for
staff
2
Adding value for
Principal
3
Ravindran Raghavan

Adding value to processes
Principle 8 - use only reliable, thoroughly tested technology that serves your
people and processes.
 Technology is pulled by manufacturing, not pushed to manufacturing.
 Technology is deployed based on expected value-addition and not
implemented because it is available
Ravindran Raghavan

Root Cause
Problem Solving
Ravindran Raghavan

Understand the ground reality
Principle 12 - (Genchi Genbutsu) - managers will
personally evaluate operations so that they have a
firsthand understanding of situations and problems.
Ravindran Raghavan

Tadashi Yamashina
Who is he?
Who is this man?
What is his
contribution for
management?
Where is he now?
Ravindran Raghavan

Tadashi Yamashina
President, Toyota Technical
Center
1951
Born in 8 May, Yachimata City,
Japan
1977-1998
Toyota Motor
Corporation (TMC)
1998-2001
TMC, General Manager of
Vehicle Evaluation &
Engineering Division 2
2001-2003
Toyota Technical
Center USA, President
2003-2006
Toyota Technical Center USA,
Managing Officer
2006-2007
TMC, motorsport technology
R&D and business activities.
Toyota Motorsport, Vice
Chairman
2007-present
Toyota Motorsport, Chairman
and Team Principal
Ravindran Raghavan

Ten Management
Principles
1. Keep the final target in mind.
2. Clearly assign tasks to yourself (and others.)
3. Think and speak on verified, proven information
with data.
4. Take full advantage of the wisdom and experiences
of others to send, gather or discuss information.
5. Share information with others in a timely fashion.
Tadashi Yamashina
President, Toyota Technical Center
Ravindran Raghavan

Ten Management
Principles
6. Always report, inform and consult in a timely
manner.
7. Analyze and understand shortcomings in your
capabilities in a measurable way.
8. Relentlessly strive to conduct kaizen activities.
9. Think "outside the box," or beyond common sense
and standard rules.
10.Always be mindful of protecting your safety and
health.
Tadashi Yamashina
President, Toyota Technical Center
Ravindran Raghavan

Use consensus & rapid implementation
Principle 13 - encourages thorough consideration of
possible solutions through a consensus process, with
rapid implementation of decisions once reached
(nemawashi).
Ravindran Raghavan

 Principle 13 - encourages
thorough consideration of
possible solutions through a
consensus process, with rapid
implementation of decisions
once reached (nemawashi).
1.Find what is really going on (go-and-
see) to test
2.Determine the underlying cause
3.Consider a broad range of alternatives
4.Build consensus on the resolution
5.Use efficient communication tools
Ravindran Raghavan

The Five “Why”
analysis
What is this?
Ravindran Raghavan

Source: https://kanbanize.com/lean-management/improvement/5-whys-analysis-tool/
Ravindran Raghavan

What is the last
principle?
Principle 14 …
Ravindran Raghavan

 Principle 14 - be a "learning organization", continually reflecting on its
practices and striving for improvement.
Ravindran Raghavan

 Principle 14 - be a "learning
organization", continually
reflecting on its practices and
striving for improvement.
Problem solving technique to determine
the root cause :
1. Initial problem perception
2. Clarify the problem
3. Locate area/point of cause
4. Investigate root cause
5. Countermeasure
6. Evaluate
7. Standardize Ravindran Raghavan

Thank you
Prepared by:
Ravindran Raghavan
Web: www.ravi311.com

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