The DNA of Toyota - January 2017

1Marek.Piatkowski@Rogers.com
Decoding the DNA
of Toyota
Introduction
Thinkingwin, Win, WIN
The DNA of Toyota
Decoding the DNA of TPS
Marek Piatkowski – January 2017
October 1999

Decoding the DNA
of Toyota
Introduction
Introduction - Marek Piatkowski
 Professional Background
 Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from
1987-1994
 TPS/Lean Transformation Consulting - since 1994
 Professional Affiliations
 TWI Network – John Shook, Founder
 Lean Enterprise Institute (LEI) – Jim Womack
 Lean Enterprise Academy (LEA) – Daniel Jones
 CCM/CAINTRA – Monterrey, Mexico
 SME, AME, ASQ, CME
 Lean Manufacturing Solutions - Toronto, Canada
http://twi-network.com

Decoding the DNA
of Toyota
Introduction

Decoding the DNA
of Toyota
Introduction
Steven Spear
H. Kent Bowen
October 1999

Decoding the DNA
of Toyota
Introduction
 Four-year study of the Toyota Production System
 Inner workings of more than 40 plants in the United States, Europe, and Japan,
some operating according to the system, some not
 Studied both process and discrete manufacturers whose products ranged from
prefabricated housing, auto parts and final auto assembly, cell phones, and
computer printers to injection-molded plastics and aluminum extrusions
 Studied not only routine production work but also service functions like equipment
maintenance, workers’ training and supervision, logistics and materials handling,
and process design and redesign

Decoding the DNA
of Toyota
Introduction
 Toyota does not consider any of the tools or practices – such as Kanbans or Andon
cords, which so many outsiders have observed and copied – as fundamentals to the
Toyota Production System.
 Toyota uses them merely as temporary responses to specific problems that will
serve until a better approach is found or conditions change.
 What’s curious is that few manufacturers have managed to imitate Toyota
successfully – even though the company has been extraordinarily open about its
practices. Hundreds of thousands of executives from thousands of businesses have
toured Toyota’s plants in Japan and the United States.
 Frustrated be their inability to replicate Toyota’s performance ,many visitors
assume that the secret of Toyota’s success must lie in its cultural roots. But that’s
not the case
 So why has it been so difficult to decode the Toyota Production System? The
answer, we believe, is that observers confuse the tools and practices they see on
their plant visits with the system itself.

Decoding the DNA
of Toyota
Introduction
How to Improve
 We found that the key to understand that the Toyota Production System creates a
community of scientists.
 Whenever Toyota defines a specification, it is establishing a set of hypotheses that
can then be tested. In other words, it is following the scientific method.
 To make any changes, Toyota uses a rigorous problem-solving process that requires
a detailed assessment of the current state of affairs and a plan to improvement
that is, in effect, an experimental test of the proposed changes.
 With anything less than such a scientific rigor, change at Toyota would amount to
little more than random trial and error – a blindfolded walk through life.
Who, What, Where,
When, Why and How
Clarify the Problem
Initial Problem Perception
(Large, vague, complicated problem)
The "Real" Problem
Locate Area /
Point of Cause
PoC
Direct Cause
Why ?
Cause
Cause
Cause
Cause
Countermeasure
Root Cause
Why ?
Why ?
Why ?
Why ?
Cause
Investigation
Grasp the
Situation
5 Why ?
Investigation of
Root Cause
Basic Cause & Effect
Investigation
Grasp the
Situation
Cause
Investigation
Basic Cause &
Effect Investigation
Ask Why 5 times?
Investigation of
Root Cause

Decoding the DNA
of Toyota
Introduction
How to Improve
 Identifying problems is just a first step. For people to consistently make effective
changes, they must know how to change and who is responsible for making the
changes.
 Toyota explicitly teaches people how to improve, not expecting them to learn strictly
from personal experience. That’s where the rule for improvement comes in.
 Any improvement to production activities, to connection between worker and
machines, or the pathways must be made in accordance with the scientific method,
under the guidance of a teacher, and the lowest possible organizational level.
 To make changes, people are expected to present the explicit logic of the hypothesis.
 Frontline workers make the improvements to their own jobs, and their supervisors
provide direction and assistance as teachers.

Decoding the DNA
of Toyota
Introduction
“Secret” of Toyota’s Success
 To understand Toyota’s success, you have to unravel the paradox – you have to see
that the rigid specification is the very thing that makes the flexibility and creativity
possible.
 The unspoken knowledge that underlies the Toyota Production System can be
captured in four basic rules
 These rules guide the design, operation, and improvement of every activity,
connection, and pathway for every product and service

Decoding the DNA
of Toyota
Introduction
TPS System Rules
Rule 2:
Every customer-supplier
connection must be direct, and
there must be a unmistakable yes-
or-no way to send requests and
receive responses
Rule 1:
All work shall be highly specified
(standardized) as to content,
sequence, timing and outcome
Rule 3:
The pathway for every product and
service must be simple and direct –
flow
Rule 4:
Any improvement must be made in
accordance with the scientific
method, under the guidance of a
teacher, at the lowest possible level
in the organization

Decoding the DNA
of Toyota
Introduction
TPS System Rules
Rule 2:
receive responses
Rule 1:
Rule 3:
flow
Rule 4:
in the organization

Decoding the DNA
of Toyota
Introduction
Job Descriptions
 Every single activity (work) must be specified as to its:
 Content
 Sequence
 Timing
 Outcome
 This exactness must be applied not only to repetitive motions of production
operator but also to the activities of all people regardless of their functional
specialty or hierarchical role
For everything that people do there must a simple, well defined process.
Manager’s job is to make sure that we follow the process.

Decoding the DNA
of Toyota
Introduction
What is Standardized Work?
 Standardized Work is the best know method
for manufacturing products at a production
worksite.
 The principle behind the Standardized Work
is to perform efficient production, in a
consecutive sequence, by focusing on
operator’s movements and systematically
combining work tasks.
3. Standard Work Chart
1. Process Capacity Sheet
Created by:
Work Elements
(Working or Walking - Waiting is NOT a work element) # 1 # 2 # 3 # 4 # 5
1 Load cross bar 4.5 3.5 5.5 7.0 4.5 IW 4.5 A lot of walking
2 Load C bracket 6.5 4.5 5.5 5.5 IW 5.5 A lot of walking
3 Insert pins and screws 7.0 6.0 7.0 6.0 VA 6.0 Using both hands
4 Start the machine 1.0 1.0 1.0 1.0 IW 1.0
x Waiting for machine to cycle 7.0 7.0 7.0 7.0 W 7.0 Waiting - 7 seconds
5 Unload C bracket 4.5 10.0 4.5 4.5 IW 4.5 Walk and inspect
6 Unload cross bar 5.0 5.0 4.0 4.0 IW 4.0 Walk and inspect
Total 25.5 30.0 27.5 28.0 25.5
* Type of work includes one of the three: VA, IW or Waste
** Best time = lowest repeatable time that can be performed on regular basis (Standard operating time)
Notes#
Best
Time**
Process Capability
Operator Time Observations
Total Cycle Times Type of
Work*
Line / Section Date Part Description
2. Standard Work Combination Table

Decoding the DNA
of Toyota
Introduction
Why Standardize?
 To standardize a method is to choose out of many methods the best one, and
use it.... What is the best way to do a thing? It is the sum of all the good ways
we have discovered up to the present. It, therefore, becomes the standard.
 Today’s standardization...is the necessary foundation on which tomorrow’s
improvement will be based. If you think of “standardization” as the best you
know today, but which is to be improved tomorrow - you get somewhere. But
if you think of standards as confining, then progress stops.
Henry Ford - Today and Tomorrow
1926

Decoding the DNA
of Toyota
Introduction
Standardized Work
 Standardized Work is the best known method for manufacturing products at a
worksite.
 Standardized Work is a development of a starting point to measure the interaction
between operator, machine, and materials to be used as a problem solving tool.
 Principles behind the Standardized Work:
 to perform production efficiently
 in a consecutive sequence
 by focusing on operator movements and
 by systematically combining work elements

Decoding the DNA
of Toyota
Introduction
Job Breakdown Sheet – Operating room
Major Steps Keypoints Reasons for Key points
Prep the patient 1. Set out central line kit
2. Check lab reports
3. Lay patient on back
4. Place rolled up towel between patient’s shoulderblades
1. immediate access to materials
2. prevents potential adverse affects of
the procedure/check to see if
procedure could be potentially harmful
to the patient
3. makes access to vena cava easier
4. makes finding the clavicle easier
Apply anesthetic 1. Swab chest with antiseptic
2. Inject 5cc’s of lidocaine
1. prevents infection
2. keeps the patient from feeling
excessive pain
Insert needle into vena
cava
1. Find clavicle
2. Puncture chest with right under the clavicle
3. Continue to push needle into the subclavian vein with a
steep angle
4. Pull back on the syringe
5. Pull syringe off, leaving the needle in place
1. makes locating the vena cava easier
2. finds subclavian vein
3. avoid puncturing the lungs
4. indicates if the needle is in the vena
cava or an artery. Maroon blood
indicates vena cava, red blood, artery.
5. helps to put the guidewire in place
Insert guidewire 1. Insert guidewire into the needle’s bore and into the vena
cava
2. Do not force in
3. Do not let go
4. Do not let wire touch anything unsterile
1. serves as a placeholder for the dilator
and the central line
2. prevents damaging the vena cava or
the heart
3. prevents loss of the wire inside the
patient
4. prevents infection
Dilate the puncture point 1. Remove needle and replace it with a thick plastic 1. the plastic widens the vein opening
Put in the central line 1. Remove plastic, thread the line over the wire until it is all the
way into the vena cava
2. Remove wire
3. Flush the line with heparin solution with a syringe
4. Suture the central line into the chest
1. inserts the central line into the vena cava
2. wire is no longer needed
3. removes fluids out of the central line
4. keeps the line in place

Decoding the DNA
of Toyota
Introduction
Standardized Work for Supervisors
 All activities performed by a Supervisor must be defined as a standard process
 A standard process is defined as:
 knowing what to do
 knowing when to perform the activity
 knowing why it needs to be done
 knowing who should do it
 knowing where the activity should take place
 knowing how to perform the activity
 Supervisor follows Standardized Work process

Decoding the DNA
of Toyota
Introduction
Time Elements of Supervisor Activities
All daily activities to be grouped into ten major elements of a work day:
1. Pre-shift activities
2. Shift start-up activities
3. Post start-up activities
4. After 1st break activities
5. Before lunch activities
6. After lunch activities
7. After 2nd break activities
8. Shift to shift review
9. End of shift activities
10. Incidental activities

Decoding the DNA
of Toyota
Introduction

Decoding the DNA
of Toyota
Introduction
Work Standards vs Standardization
 Your companies have and use operating standards:
 Quality standards
 Accounting standards
 Safety standards …
 Rule 1: All work shall be highly specified (standardized) as to content, sequence,
timing and outcome
 Do not confuse rules, regulations and policies with work standards
 Do your employees know the best way to perform their jobs?
 Is everybody performing their work use the best know method?

Decoding the DNA
of Toyota
Introduction
TPS System Rules
Rule 2:
receive responses
Rule 1:
Rule 3:
flow
Rule 4:
in the organization

Decoding the DNA
of Toyota
Introduction
Connections
 Every connection must be:
 standardized and direct
 explicitly specifying the people involved, the form and quantity of the goods and
services to be provided
 the way requests are made by each customer and
 the expected time in which the requests will be met
 The rule creates a supplier-customer relationship between each person and the
individual who is responsible for providing that person with specific parts or
service
 As a result there is no gray zones in deciding who provides what, to whom and
when

Decoding the DNA
of Toyota
Introduction
Connections
 When an operator makes a request for a part, there is no confusion about the
supplier, the number of units required, or the timing of the delivery
 Similarly, when a person needs assistance, there is no confusion over who will
provide it, how the help will be triggered, and what services will be delivered
 The connections are smooth as passing of the baton in the best Olympic relay team
because they are carefully thought out and executed

Decoding the DNA
of Toyota
Introduction
Importance of Connections
 Other companies devote substantial resources to coordinating people, but their
connections generally aren’t so direct and explicit
 Requests for materials or assistance often take a convoluted route from the line
worker to the supplier via an intermediary
 Any supervisor can answer any call for help because a specific person has not been
assigned
 The disadvantage of that approach, as Toyota recognizes, is that when something
is everyone’s problem it becomes no one’s problem.

Decoding the DNA
of Toyota
Introduction
Importance of Connections
 The requirement that people respond to supply requests within a specific time
frame further reduces the possibility of variance
 That is especially true in service requests
 A worker encountering a problem is expected to ask for assistance at once
 The designated assistant is then expected to respond immediately and resolve the
problem within the worker’s cycle time

Decoding the DNA
of Toyota
Introduction
Problems in Creating Connections
 The striking thing about the requirement to ask for help at once is that it is often
counterintuitive to managers who are accustomed to encouraging workers to try
to resolve problems on their own before calling for help
 But then problems remain hidden and are neither shared nor resolved
companywide
 The situation is made worse if workers begin to solve problems themselves and
then arbitrarily decide when the problem is big enough to warrant a call for help
 Problems mount up and only get solved much later, by which time valuable
information about the real causes of the problem may have been lost

Decoding the DNA
of Toyota
Introduction
TPS System Rules
Rule 2:
receive responses
Rule 1:
Rule 3:
flow
Rule 4:
in the organization

Decoding the DNA
of Toyota
Introduction
Importance of Flow
 The time for any individual person or and item to move from the start to finish of the
process should be as short as possible
 Elimination of stops and waiting time in a process should be one
of your key concerns
 Why? – do we understand?
 Every time the work stops we consume resources and add costs but we do not add
any value

Decoding the DNA
of Toyota
Introduction
Principles of Flow
 TPS forces us to think about processes from the moment when customer is placing
an order to the moment when customer is receiving the output of the process
 Improving the service to customers and reducing whole-process costs and cycle
times will often mean reducing the efficiency of individual process steps. Too often
we optimise individual steps, not the whole process
 Flow is about how
 People
 Information and
 Products (Materials)
move and interact with each other from the start to the end of a production or
service process
 Flow is about what happens to them and how the process overall compares to
what could be seen as a perfect flow.

Decoding the DNA
of Toyota
Introduction
TPS Operating Principles
 Lead Time - Strive continuously to find and implement ways to shorten the time it
takes to convert customer order into a finished product.
 Manufacturing Efficiency – the goal is to get the material in and out as quickly as
possible
 Machine and manpower utilization is defined by how quickly they support this goal
- NOT as in a traditional maximum utilization approach
 Continuous Flow of Production - is the quickest way for material to get from point
A to point B, with the shortest lead time and least amount of work-in process in
between.
 A smooth continuous flow will result in gains in productivity and quality

Decoding the DNA
of Toyota
Introduction
Information Flow and Material Flow
Material Flow
Operation
Information Flow
Full
Skid
Must be in “real” time

Decoding the DNA
of Toyota
Introduction
Production and Material Flow Strategy
 Create Material Flow in Production
 Design and Implement Production Cells (CCF)
 Operator Flow – no waste
 Material Flow internal to Production Cells
 Standardized Work
 Flow Through Pick, Pack and Ship
 Create a Materials Management Organization
 Develop Plan-For-Every-Part
 Design and build Supermarkets
 Design and implement delivery routes
 Implement pull signals
 Schedule production in small lots
 Implement flow from Production to Customer

Decoding the DNA
of Toyota
Introduction
Create Organization to Support Flow
 Create multiple process responsibility - multi process handling
 Arrange a system so employees perform several tasks that match the Takt time
according to the work sequence.
 Develop multiple skilled employees - provide several levels of training to the
employees so they
 can operate various types of equipment
 do various kinds of work and perform other work besides that for which they are
directly responsible
 Perform work while standing

Decoding the DNA
of Toyota
Introduction
Material Movement Objectives
 Achieve a lean material flow by reducing the time it takes from order to delivery by
eliminating sources of waste in receiving, storage, flow of production material and
shipment of finished goods products
 Produce and deliver what the Customer wants and when the Customer wants it
Customer is the next step in every process!

Decoding the DNA
of Toyota
Introduction
Flow in Production
 Create successive production
 Manufacture and assemble each single piece or unit in the process order so the
product will flow one after the other between workstations or processes
 Create multi-process operations
 Initiate small lots production
 Shorten the die-change time or changeover process in lot production processes and
keep the lots small
 Design and implement work cells
 Layout equipment according to the sequence of production
 Synchronize and balance work to Takt Time
 Develop flow work, people and material in and between work cells

Decoding the DNA
of Toyota
Introduction
TPS System Rules
Rule 2:
receive responses
Rule 1:
Rule 3:
flow
Rule 4:
in the organization

Decoding the DNA
of Toyota
Introduction
Toyota’s Philosophy Statements
 People who are the most knowledgeable of any manufacturing operation are
people who perform that job daily – their involvement is critical to the success of
implementation of Lean Manufacturing
 Teamwork is a foundation of Lean Transformation – all employees are required to
participate and follow rules and principles of Lean Manufacturing
 A manager’s or supervisor’s role consists of leading problem solving activities in a
multi-skilled, cross-functional team environment

Decoding the DNA
of Toyota
Introduction
Continuous Improvement must be Leadership driven
 Continuous Improvement is a process of discovering and eliminating problems –
elimination of Waste
 There are two types of CI activities – methods improvements and equipment
improvements
 Leaders must be skillful in identifying these problems and leading Continuous
Improvement activities to eliminating them
 Production Leaders (Supervisors) must become experts in Standardized Work
 They should be able to analyze, study, and simplify work methods. It is a starting
point for making improvements

Decoding the DNA
of Toyota
Introduction
Continuous Improvement activities
 Toyota does not expect their employees to initiate any CI activities or to learn how
to conduct improvements strictly from their personal experience
 Toyota explicitly teaches people how to improve
 Toyota provides training and creates environment to foster (to encourage)
Continuous Improvement activities:
 Quality circles
 Suggestion program
 Daily problem “Auctions”
 Kaizen events
 Etc …

Decoding the DNA
of Toyota
Introduction
Problem Solving process
 TPS creates a community of scientists and analysts
 Toyota uses rigorous problem solving process that requires a detailed assessment
of the current state of affairs and a plan for improvement
 With anything less than such a scientific rigor, change would amount to little more
than random trial and error – a blindfolded walk through life
 This process actually stimulates operators and managers to engage in the kind
experimentation that is widely recognized as a starting point of Continuous
Improvement

Decoding the DNA
of Toyota
Introduction
2. Analyze the Current
Situation
1. Clarify the Goal
3. Generate Original
Ideas
4. Develop
Implementation Plan
5. Implement the Plan
6. Evaluate the New
Method
2. Analyze the Current
Situation
1. Clarify the Goal
3. Generate Original
Ideas
4. Develop
Implementation Plan
5. Implement the Plan
6. Evaluate the New
Method
Standardized CI methodology

Decoding the DNA
of Toyota
Introduction
TPS - Problem Solving process
Who, What, Where, When,
Why and How
Clarify the Problem
Initial Problem Perception
(Large, vague, complicated problem)
The "Real" Problem
Locate Area /
Point of Cause
PoC
Direct Cause
Why ?
Cause
Cause
Cause
Cause
Countermeasure
Root Cause
Why ?
Why ?
Why ?
Why ?
Cause
Investigation
Grasp the
Situation
5 W hy ?
Investigation of
Root Cause
Basic Cause & Effect
Investigation
Grasp the
Situation
Cause
Investigation
Basic Cause &
Effect Investigation
Ask Why 5 times?
Investigation of
Root Cause

Decoding the DNA
of Toyota
Introduction
Problem and countermeasure

Decoding the DNA
of Toyota
Introduction
1
3
2
6
7
8
10
9
5
DESCRIBE THE
PROBLEM – What? What?
Where? Where?
When? When?
How Many? How Many?
The
Problem Is:
Actual
Should Be:
UNDERSTAND NEEDS & REQUIREMENTS – Examine the applicable
policies, procedures, regulations and specifications. Understand the
expectation of the customer (for internal processes, know what the next
operation expects).
Start
End
Process
Step
Process
Step
Process
Step
Process
Step
Multi-
Document
Decision?
Yes
No
45
26
10 8
4 4 2 1
0
10
20
30
40
50
60
70
80
90
100
WrongPart Wrong
Quantity
Duplicate
Part
Wrong
Customer
Document
Error
Packaging
Damage
Wrong
Price
Dimensional
Reject
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
USE A TEAM APPROACH -
Collaborate with relevant team members
from various levels, functions and
organizations, as necessary. Involve those
closest to the process - they usually know
it best.
Samples (Time)
Response
Process
Capability
Study
Process
Control
Process
Improvement
Process
Control
Use
quantifiable
terms and
facts.
COLLECT & ANALYZE DATA – Collect data relevant to the problem using
check sheets, comparisons, observations andinterviews. Display data using
appropriate charts/graphs. What does the data tell you?
Design of Experiments
The objective is:
DRIVING FORCES RESTRAINING FORCES
Force Field Analysis
IDENTIFY ALTERNATIVES & SELECT A
SOLUTION - Check for resource constraints.
Perform experiments or pilot tests to help.
PREPARE A PROJECT
PLAN - Answer: Who?
What? When? Where?
How? How Much?
Be prepared to present your
recommendation for approval.
7 14 21 28 5 12 19 26
$
$$
$$
$$$
Project Plan
Est.
Cost
2 Layout flow Team A 4 weeks
1 Kick-off D.W. 1 day
2 weeks
4 Move/Set-Up Team B 2 days
Task#
5 Validation Q.C. 1 day
3 Pilot tests J.C.
April May
Dura.Resp.
IMPLEMENT THE SOLUTION - Create a detailed task list. Communicate
responsibilities effectively. Execute the plan. Follow-up regularly until complete.
MEASURE, MONITOR & CONTROL YOUR RESULTS - Measure the results
to ensure the problem was truly fixed. Continually or periodically monitor
performance to verify that it stays fixed. Repeat steps 1 thru 10, as necessary.
GET LEADERSHIP APPROVAL & SUPPORT - Seek guidance, suggestions,
support and approval from your leader, process owner, customer, supplier and/or
other affected stakeholders.

LCL
UCLTarget
Capable &
In Control
x's +/- y's
Factors Levels Responses
(Settings)
Mold Temp. Degrees F.
Ram Press. Psig
Moisture Percent (%) y=f(x)
Ram Speed Inches/Sec.
Mold Gate Size (.000)
Time Seconds
(Variables, Inputs) (Outcomes, Characteristics)
Voids,
Shrinkage,
Flash
Type of Error
Occurrences
4
IDENTIFY POTENTIAL CAUSES - Brainstorm to identify potential root
cause(s) that may have caused the problem to occur (these are candidates for
additional data collection). Ask “Why?” five times to reveal the root cause.
Confirm assumptionswith data.
Why?
Why?
Why?
Why?
Why?
(Potential Cause)
Manpower
(Effect)
Problem
Machine
MaterialMethods Environment
Avg.
X' Axis
Time or Sequence
Y'Axis
Measurement
#
Detailed Task List
Task Assigned To Date Due Results Achieved
M Tu W Th F
A I III II I
B I II I II
C IIII I III IIII III III IIII II
P/N: XYZDWG2-2 B2
Problem Solving
©2005 Par ker H annifin Cor porati on
10-Step
Method
History
Trend

Decoding the DNA
of Toyota
Introduction
TPS System Rules
Rule 2:
receive responses
Rule 1:
Rule 3:
flow
Rule 4:
in the organization

Decoding the DNA
of Toyota
Introduction
How Toyota’s Workers Learn these Rules
 Toyota’s managers do not tell workers and supervisors specifically how to do their
work
 Rather, they use a teaching and learning approach that allows their workers to
discover the rules as a consequence of solving problems
 The manager teaching a person, will come to the work site and, while the person is
doing his or her job, ask a series of questions:
 Show me how do you do this work?
 Show me how do you know you are doing this work correctly?
 How do you know that the outcome is free of defects? Show me.
 Show me what do you do if you have a problem?

Decoding the DNA
of Toyota
Introduction
TPS System Rules
Rule 2:
receive responses
Rule 1:
Rule 3:
flow
Rule 4:
in the organization

Decoding the DNA
of Toyota
Introduction
Changing the World. One Transformation at a time
This presentation is an intellectual property of W3 Group Canada Inc.
No parts of this document can be copied or reproduced
without written permission from:
Marek Piatkowski
W3 Group Canada Inc.
iPhone: 416-235-2631
Cell: 248-207-0416
Marek.Piatkowski@rogers.com
http://twi-network.com

Decoding the DNA
of Toyota
Introduction
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The DNA of Toyota - January 2017