The document outlines 14 management principles from Toyota's production system (TPS), also called the Toyota Way. The principles are organized under four categories: philosophy, process, people/partners, and problem solving. The philosophy principle emphasizes long-term decision making. The process principles focus on eliminating waste through continuous flow, pull systems, leveling workload, and stopping production to fix quality problems. The people/partners principles involve respecting, challenging, and growing employees and suppliers. The problem solving principles prioritize continual learning and improvement. Overall, the Toyota Way principles aim to provide high quality products through efficiency and respect for people.
The toyota way is a book written by jeffrey k. liker
the book underlines 14 main principles of toyota nmoto corp. japan which took them to new heights. by manpreet singh digital
it is a very good book for those who want to be a successful manufacturery
In any SME manufacturing organizations, one of the major causes for low plant utilization is changeover loss.In this presentation, using SMED methodology, step by step process is given to reduce the changeover loss.Also shared the real examples of changeover loss reduction in various manufacturing industries using SMED concept.Hope this is useful for any organization struggling with low plant utilisation due to changeover loss..
Webinar held on July 15, 2009
Lean Fundamentals Overview
Presented by: Michael E. Parker
Description:
Utilizing my one-on-one training by lean experts from Toyota Motor Corporation (TMC) in Japan's Toyota City, you'll receive an overview on the main fundamentals that drive the lean management philosophy and learn how you can begin implementing these philosophies in your business. Whether you are a small business owner, entrepreneur, mid-level to senior-level manager or director, you will gain valuable insight on the critical business issues you are facing today and how to utilize lean management principles to recognize areas to reduce costs, add value and change your processes for the better.
We will discuss these key fundamentals of lean management:
o Cost Reduction Principle
o Lead-Time Reduction
o 7 Forms of Waste
o Just-In-Time
o Built-in-Quality (Jidoka)
o Level Scheduling (Heijunka)
o Pull Systems (Kanban)
o Kaizen
In all reality, there are the production waste. Here I explain the 7 wastes from most towns elliminare. Based on the TPM and Lean Management.
For info please contact me.
Lean manufacturing is a production process based on an ideology of maximising productivity while simultaneously minimising waste within a manufacturing operation
The toyota way is a book written by jeffrey k. liker
the book underlines 14 main principles of toyota nmoto corp. japan which took them to new heights. by manpreet singh digital
it is a very good book for those who want to be a successful manufacturery
In any SME manufacturing organizations, one of the major causes for low plant utilization is changeover loss.In this presentation, using SMED methodology, step by step process is given to reduce the changeover loss.Also shared the real examples of changeover loss reduction in various manufacturing industries using SMED concept.Hope this is useful for any organization struggling with low plant utilisation due to changeover loss..
Webinar held on July 15, 2009
Lean Fundamentals Overview
Presented by: Michael E. Parker
Description:
Utilizing my one-on-one training by lean experts from Toyota Motor Corporation (TMC) in Japan's Toyota City, you'll receive an overview on the main fundamentals that drive the lean management philosophy and learn how you can begin implementing these philosophies in your business. Whether you are a small business owner, entrepreneur, mid-level to senior-level manager or director, you will gain valuable insight on the critical business issues you are facing today and how to utilize lean management principles to recognize areas to reduce costs, add value and change your processes for the better.
We will discuss these key fundamentals of lean management:
o Cost Reduction Principle
o Lead-Time Reduction
o 7 Forms of Waste
o Just-In-Time
o Built-in-Quality (Jidoka)
o Level Scheduling (Heijunka)
o Pull Systems (Kanban)
o Kaizen
In all reality, there are the production waste. Here I explain the 7 wastes from most towns elliminare. Based on the TPM and Lean Management.
For info please contact me.
Lean manufacturing is a production process based on an ideology of maximising productivity while simultaneously minimising waste within a manufacturing operation
The Toyota Company is the biggest auto-manufacture in the world. T.docxssusera34210
The Toyota Company is the biggest auto-manufacture in the world. The company headquarters are located in Japan but has global plants in Europe, North America, Australia and Asia. The company has indulged in a customer driven philosophy that has kept top amid economic recession in Europe and North America, its chief customers. This philosophy is known by the company employees as the Toyota Production system (TPS). The three main objectives of this philosophy includes: providing their customers with the best quality vehicles in terms of cost and timely delivery, to treat their employees in such a way that they are satisfies with their jobs and ensure job security. Thirdly, TPS intends to give the company flexibility to respond to market while recording returns through cost reduction measures (Wilson, 2012).
According to Toyota (2012) TPS has the responsibility of minimizing wastes and overloading its employees. It works to ensure that the whole process of production through distribution flows smoothly and efficiently. The integration of human and mechanical resources to ensure maximum quality of the cars as well as improving efficiency and reduction of wastes is the foundation philosophy of the Toyota Company and defines best kaizen. To achieve this, the employees continuously work to improve the standards of increasing their efficiency and waste elimination. This is called kaizen in Japanese ‘or change for the better’ in English. The kaizen was invented by Toyota decades ago and have since acquired a universal acceptance. Just in time production was also coined by the same company in an effort to respond to the forces of demand and supply. The whole process is initiated once the customer places an order to the company. The company then moves to produce the exact parts ordered, assemble and dispatch the car. This limits the production of inventory since production is proportional to the magnitude of the demand (Toyota. (2012).
Lean Production 2
For instance, if the company received a daily order of 400 cars and happen to be operating in 920 minutes daily, the takt time (from German ‘taktzeit’ meaning cycle time) will amount to 2.3 minutes. If this time is operated at a minimum, then the resources will be increased.
Jidoka is a Japanese word for automation. The Toyota Company defines the word as 'automation with a human touch'. This allows all employees the responsibility to stop the production process in case he or she identifies a problem within the production line (Toyota, 2012).
Lean Production Philosophy
Lean production encompasses the reduction of wastages through labor, inventory management, time, space with the primary objective of delivering high quality products. This strategy strives at responding to the market needs through introduction of the right product in the right place in the quantity in the right time. In turn, the production process helps in the realization of reduced wastes and responds to fluctuating market demands. The pr ...
Lean - PPT (Lean manufacturing and six sigma)Blankdevil
Lean manufacturing is a methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity. Waste is seen as anything that customers do not believe adds value and are not willing to pay for. Some of the benefits of lean manufacturing can include reduced lead times, reduced operating costs and improved product quality.
Lean manufacturing, also known as lean production, or lean, is a practice that organizations from numerous fields can enable. Some well-known companies that use lean include Toyota, Intel, John Deere and Nike. The approach is based on the Toyota Production System and is still used by that company, as well as myriad others. Companies that use enterprise resource planning (ERP) can also benefit from using a lean production system.
Lean manufacturing is based on a number of specific principles, such as Kaizen, or continuous improvement.
Lean manufacturing was introduced to the Western world via the 1990 publication of The Machine That Changed the World, which was based on an MIT study into the future of the automobile detailed by Toyota's lean production system. Since that time, lean principles have profoundly influenced manufacturing concepts throughout the world, as well as industries outside of manufacturing, including healthcare, software development and service industries.
5 principles of lean manufacturing
A widely referenced book, Lean Thinking: Banish Waste and Create Wealth in Your Corporation, which was published in 1996, laid out five principles of lean, which many in the field reference as core principles. Value is created by the producer, but it is defined by the customer. Companies need to understand the value the customer places on their products and services, which, in turn, can help them determine how much money the customer is willing to pay.
The company must strive to eliminate waste and cost from its business processes so that the customer's optimal price can be achieved -- at the highest profit to the company.
2. Map the value stream. This principle involves recording and analyzing the flow of information or materials required to produce a specific product or service with the intent of identifying waste and methods of improvement. Value stream mapping encompasses the product's entire lifecycle, from raw materials through to disposal.
Companies must examine each stage of the cycle for waste. Anything that does not add value must be eliminated. Lean thinking recommends supply chain alignment as part of this effort.
3. Create flow. Eliminate functional barriers and identify ways to improve lead time. This aids in ensuring the processes are smooth from the time an order is received through to delivery. Flow is critical to the elimination of waste. Lean manufacturing relies on preventing interruptions in the production process and enabling a harmonized and integrated set of processes in which activities move in a constant stream.ean manufacturing requires a rel
When a student asks you to explain Lean Mfg, it requires a simple way of explaining.
By giving examples, pictures and case studies, each Lean philosophy can be explained.
Lean in the real Lean sense.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
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⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
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"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
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CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
2. THE TOYOTA WAY 02/49
Toyota Production System
(TPS)
Also called The Toyota Way
3. THE TOYOTA WAY 03/49
Toyota Production System
14 Principles
ΩPhilosophy (01 principle)
ΩProcess (07 principles)
ΩPeople / Partners (03 principles)
ΩProblem Solving (03 principles)
4. THE TOYOTA WAY 04/49
Lean Engineering / Manufacturing / Thinking /
Enterprise /System is a: -
A Five Step Process
Defining customer value (internal / external)
Defining the Value Stream (Process)
Making it Flow (Process)
“Pulling” from the Customer back (Inventory)
Striving for Excellence (Long term)
5. THE TOYOTA WAY 05/49
Objectives of TPS
Eliminating wasted time and resources
Building quality into workplace systems
Finding low cost but reliable alternatives to
expensive new technology
Perfecting business processes
Building learning cultures for continuous
improvements
6. THE TOYOTA WAY 06/49
Problem Solving
(Continuous Improvement and Learning)
People & Partners
(Respect, Challenge and Grow Them)
Process
(Eliminate Waste)
Philosophy
(Long Term Thinking)
+Continual org learning.
+Go & see yourself.
+Decision slowly by consensus and implement
rapidly.
+Grow leaders who live the philosophy.
+Respect, develop and challenge people, teams
and suppliers.
+Create process flow to surface problems
+Use pull system to avoid over production
+Stop when there is a quality problem. (Jidoka)
+ Level out the workload. (heijunka)
+Standardize tasks for continuous improvement.
+Use visual control so no problems are hidden.
+Use only reliable technology.
+Base management decisions on a long term
philosophy, even at the expense of short term
financial gains.
“4 P” MODEL OF THE TOYOTA WAY
7. THE TOYOTA WAY 07/49
Long-Term Philosophy
Principle 1 - Management Decisions on a Long–Term
Philosophy, even at the expense of Short-Terms Financial
Goals.
We wanted to break new ground in ride quality. To get
that, our tire compounds were fairly soft. So even though
the customer experienced a good ride and the tires were
well within our specs, they did not last as long initially as
many customers wished. 5-7% of the customers actually
complained about tire life. For Toyota that is a big deal, as
Toyota is used to dealing in complaint level far < 1%.
8. THE TOYOTA WAY 08/49
Long-Term Philosophy
Base Management Decisions on a Long–Term Philosophy,
even at the expense of Short-Terms Financial Goals.
So Toyota sent the owner of every Lexus who had the
specified batch of tires, a coupon they could redeem for $500
and apologised for inconveniency. Many of these customers
had already sold their Lexus.
The way you treat your customer when you do not owe them
anything, like how you treat somebody who can not fight back
– that is the ultimate test of character and long term
philosophy of values.
9. THE TOYOTA WAY 09/49
Problem Solving
(Continuous Improvement and Learning)
People & Partners
(Respect, Challenge and Grow Them)
Process
(Eliminate Waste)
Philosophy
(Long Term Thinking)
+Continual org learning.
+Go & see yourself.
+Decision slowly by consensus and implement
rapidly.
+Grow leaders who live the philosophy.
+Respect, develop and challenge people, teams
and suppliers.
+Create process flow to surface problems
+Use pull system to avoid over production
+Stop when there is a quality problem. (Jidoka)
+ Level out the workload. (heijunka)
+Standardize tasks for continuous improvement.
+Use visual control so no problems are hidden.
+Use only reliable technology.
+Base management decisions on a long term
philosophy, even at the expense of short term
financial gains.
“4 P” MODEL OF THE TOYOTA WAY
10. THE TOYOTA WAY 10/49
Process – Eliminate Waste
Principle 2. Create Continuous Process Flow to Bring
Problems to the Surface
Flow is the heart of the Lean message that shortening the
elapsed time from raw material to finished goods / service will
lead to the best quality, lowest cost and shortest delivery time
Flow means when a customer places an order, this triggers
the process of obtaining raw material from suppliers, flow to
production plant, assemble the order, transport to dealer and
deliver to customer
Flow also forces the implementation of other lean tools such
as preventive maintenance, built-in quality (jidoka), continuous
improvement (kaizan) and even production (heijunka)
11. THE TOYOTA WAY 11/49
Process – Eliminate Waste
Principle 2. Create Continuous Process
Flow to Bring Problems to the Surface
Toyota Identified 7 Major Non-Value Adding Waste
1. Overproduction – Producing items for which there are
no orders
2. Waiting (time on hand) – Worker waiting for a preceding
process to be over, tool, part, lot processing, capacity
bottlenecks
3. Unnecessary transport or conveyance – Carrying work-
in-progress (WIP) long distance
12. THE TOYOTA WAY 12/49
Process – Eliminate Waste
Principle 2. Create Continuous Process Flow to
Bring Problems to the Surface
4. Over / incorrect processing - Inefficient process due to poor
tooling or production design
5. Excess / unavailable Inventory – Extra inventory hides
problems such as production imbalances, late deliveries,
defects, downtime and long set up time
6. Unnecessary Movement – Wasted motion like looking for,
reaching for, stacking part, tools etc, even walking is a waste
during production
7. Defects – Production of defective parts and its correction,
Repair or rework, replacement production and inspection
13. THE TOYOTA WAY 13/49
PROCESS FLOW ‘Batch & Queue’
Computer Base Dept (1 min each)
Computer Monitor Dept (1 min each)
Computer Test Dept (1 min each)
Complete processing of first batch of 10 takes 30 minutes
Transportation from Base to Monitor Dept is in batch of 10
First good computer ready in 21 minutes
There are at least 21 sub-assemblies in process at a time
Batch Processing Example
14. THE TOYOTA WAY 14/49
PROCESS FLOW – ‘One Piece’
Computer Base Dept
Computer Monitor Dept
Computer Test Dept
First part is ready in 3 minutes
10 complete assembly ready in 12 minutes
Only two sub-assembly in process at a time
Continuous Flow Example
Product requires three processes
that takes one minute each
(One Piece Flow Production Cell)
Lean Thinking – Batch size - ONE
15. Process – Eliminate Waste
Principle 3. Use “Pull” Systems to Avoid
Overproduction
“The more inventory a company has, .....the less likely
they will have what they need.” Taiichi Ohno
Provide your down line customers in the production process with
what they want, when they want it, and in the amount they want.
Material replenishment initiated by consumption is the basic principle
of just-in-time (JIT). It triggers at a customer’s orders of Toyota.
Minimize your work in process (WIP) and warehousing of inventory
by stocking small amounts of each product and frequently restocking
based on what the customer actually takes away.
Be responsive to the day-by-day shifts in customer demand rather
than relying on computer schedules and systems to track wasteful
inventory.
15/49
16. Process – Eliminate Waste
Principle 4. Level out the Workload (heijunka)
(Work like the tortoise not the hare)
Eliminating waste is just one-third of the equation for
making lean successful. Eliminating overburden to people
and equipment and eliminating unevenness in the
production schedule are just as important
The slower and consistent tortoise causes less waste
and is much more desirable than the speedy hare that
races ahead and then stops occasionally to doze. The
TPS can be realised only when all move at the speed of
tortoise.
16/49
17. Process – Eliminate Waste
Principle 4. Level out the Workload (heijunka)
(Work like the tortoise not the hare)
Elimination Muda
Waste due to
Non-value
adds Muri
Overburdening
people or
equipment
(safety and quality
problem,
breakdowns and
defects)
Mura
Unevenness of
production (down
time, NA parts,
defects)
17/49
18. Process – Eliminate Waste
Principle 5. Build a Culture of Stopping to Fix
Problems, to Get Quality Right the First Time
GM followed the golden rule of automotive engine
production: do not shut down the assy plant! At GM,
managers were judged by their ability to deliver the
numbers, Get the job done no matter what – and that
meant getting the assy plant to keep it running.
How Toyota Reacted – If you are not shutting down the
assy plant, it means that you have no problem. All mfg
plants have problems. So you must be hiding your
problems. It is better to shut down the plant and work on
quality and continue to solve your problems.
18/49
19. Process – Eliminate Waste
Principle 5. Keep Quality Controls Simple and
Involve Team Members
Things like ISO-9000, an industrial quality standard that
calls for all kinds of detailed SOPs, for whatever good they
have done, have made companies believe that if they put
together detailed rule books the rules will be followed. Quality
planning dept are armed with reams of data analyzed using
most sophisticated statistical analysis methods. Six Sigma has
brought us roving bands of black belts who attack major
quality problems with a vengeance, armed with an arsenal of
sophisticated technical methods. But at Toyota........................
19/49
20. Process – Eliminate Waste
Principle 5. Keep Quality Controls Simple and
Involve Team Members
..........they keep things simple and use very few
complex statistical tools, the quality team have just four
key rules (power of simplicity): -
Go and See
Analyze the situation
Use one piece flow and andon (cord to stop production)
to surface problems
Ask “Why?” Five times to get to the root of problem
Quality for customer drives your value proposition,
because adding value to customer is what keeps you
in business and allow you to make money.
20/49
21. Process – Eliminate Waste
Principle 6. Standardized Tasks are the
Foundation for Continuous Improvement and
Employee Empowerment (Kaizan)
It is impossible to improve any process until it is
standardized.
Standardization, stabilize the process before
continuous improvements can be made.
Until you have the fundamental skill needed to swing
the club consistently, there is no hope of improving your
golf game.
Standardization is to find that balance between
providing employees with RIGID procedures to follow and
providing the freedom to INNOVATE and be creative.
21/49
22. Process – Eliminate Waste
Principle 6
Coercive Vs Enabling Systems and Standards
Coercive Bureaucracy
+Rigid rule enforcement
+Extensive written rules and
procedures
+ Hierarchy controls
Enabling Bureaucracy
+ Empowered Employees
+Rules and procedures as
enabling tools
+ Hierarchy supports
+ Org learning
Autocratic
+ Top down control
+Minimum written rules and
procedures
+ Hierarchy controls
Organic
+Empowered employees
+Minimum rules and
procedures
+Little hierarchy
High
Bureaucracy
Low
Bureaucracy
Coercive Enabling
22/49
23. Process – Eliminate Waste
Principle 7
Use Visual Controls so No Problems Are Hidden
Traffic signals tend to be well-designed visual controls.
Good traffic signs don’t require you to study them: their
meaning is immediately clear
The visual aspect means being able to look at the
process, a piece of equipment, inventory, or information
or at worker performing a job and immediately see the
standards being used to perform the task and if there is a
deviation from standards
Visual management complements humans because we
are visual, touch and audio oriented
23/49
24. Process – Eliminate Waste
Principle 7
Clean It Up and Make It Visual – 5 S
Sort
Clear out rarely used
items by red tagging
(seiri)
Straighten
(Orderliness)
A place for everything and
everything in its place
(seiton)
Shine
Clean it (seiso)
Standardize
Create rules to sustain
the first 3 S (seiketsu)
Sustain
Use regular
management audits to
stay disciplined
(shitsuke)
24/49
25. Process – Eliminate Waste
Principle 8
Use Only Reliable, Thoroughly Tested Technology
That Serves Your People, Processes and Values
“Society has reached the point where one can push a button
and be immediately deluged with technical and managerial
information. This is all very convenient, of course, but if one is not
careful there is a danger of losing the ability to think. We must
remember that in the end it is the individual human being who must
solve the problems”
Eiji Toyoda
Any information technology must meet the acid test of
supporting people and processes and prove it adds value before it is
implemented broadly.
First work out the manual system and then automate it
25/49
26. THE TOYOTA WAY 26/49
Problem Solving
(Continuous Improvement and Learning)
People & Partners
(Respect, Challenge and Grow Them)
Process
(Eliminate Waste)
Philosophy
(Long Term Thinking)
+Continual org learning.
+Go & see yourself.
+Decision slowly by consensus and implement
rapidly.
+Grow leaders who live the philosophy.
+Respect, develop and challenge people, teams
and suppliers.
+Create process flow to surface problems
+Use pull system to avoid over production
+Stop when there is a quality problem. (Jidoka)
+ Level out the workload. (heijunka)
+Standardize tasks for continuous improvement.
+Use visual control so no problems are hidden.
+Use only reliable technology.
+Base management decisions on a long term
philosophy, even at the expense of short term
financial gains.
“4 P” MODEL OF THE TOYOTA WAY
27. PEOPLE & PARTNERS
Principle 9
Grow Leaders Who Thoroughly Understand the
Work, Live the Philosophy, and Teach It to Others
The Automotive News recognized newsmakers in the
auto industry. Direct quotes from the issue about these
newsmakers: -
Bill Ford (Ford): Talks up revitalization, brings backs old guys, stars in
TV commercial. Ford stock remains mired in the $10 range
Robert Lutz (GM): Former Marine pilot inspires GM’s troops and
simplifies product development, giving designers a bigger voice
Dieter Zetzsche (Chrysler): Turns the company around a year early
with 3 Qtrs in the black
27/49
28. PEOPLE & PARTNERS
Principle 9
Grow Leaders Who Thoroughly Understand the
Work, Live the Philosophy, and Teach It to Others
Fujio Cho (Toyota): Toyota President presides over rise in operating
profit to industry record. Take lead on hybrids. Grabs 10 point of US
market. Joins with Peugeot for plants in Eastern Europe.
Changing the culture each time a new leader comes into office
necessarily means jerking the company about superficially, without
developing any real depth or loyalty from the employees. The problem
with the radical shifts in the culture is that organization will never learn
– it loses its ability to build on achievements, mistakes, or enduring
principles.
Deming, the Quality Guru terms it “Constancy of Purpose”.
28/49
29. PEOPLE & PARTNERS
Principle 9
Grow Leaders Who Thoroughly Understand the Work, Live the
Philosophy, and Teach It to Others
Long term assets Learned skills
Machinery depreciates Loses value
People appreciates continue to grow
PHILOSOPHY
Customer First
People are most important asset
Kaizan – continuous improvement
Go and See – Give feedback
Efficiency thinking
True (vs. Apparent) condition
Total (vs. Individual) team involvement
PEOPLE
+Stability
+JIT
+Jidoka
+Kaizan
+Heijunka
+Growth
+Attention
+Go & See
+Problem solving
+Presentation skills
+Project Mgt
+Supportive culture
Toyota Leader’s view of the TPS
29/49
30. PEOPLE & PARTNERS
Principle 9
TOYOTA LEADERSHIP MODEL
Group Facilitator
“You are empowered”
Builder of Learning
Organization
“Here is our purpose
and direction – I will
guide and coach”
Bureaucratic
Manager
“Follow the rules”
Task Manager
“Here is what to do
and how – do it”
Bottom-Up
(Development)
TopDown
(Directional)
General Management
Expertise
In-depth Understanding
of Work
30/49
31. PEOPLE & PARTNERS
Principle 10
Develop Exceptional People and teams Who Follow Your
Company’s Philosophy
Internal
Motivation
Theories
Concept Toyota Approach
Maslow’s Need
Hierarchy
Satisfy lower level of
needs and move
employees up the
hierarchy towards self
actualization
Job security, good pay, safe
working conditions satisfy
lower level needs. Culture of
continuous improvement
supports growth towards self
actualization.
Herzberg’s Job
Enrichment
Theory
Eliminate “dissatisfies”
(hygiene factors) and
design work to create
positive satisfiers
(motivators)
5 S, ergonomics programs,
visual management, HR
policies address hygiene
factors. Continuous
improvement. Job rotation,
and built-in feedback
supports motivators.
31/49
32. PEOPLE & PARTNERS
Principle 10
External
Motivation
Theories
Concept Toyota Approach
Taylor’s
Scientific
Management
Scientifically select,
design, standardize jobs,
train, and reward with
money performance
relative to standards
All scientific management
principles followed but at the
group level other than
individual learned based on
employee involvement
Behaviour
Modification
Reinforce behaviour on
the spot when the
behaviour naturally occurs
Continuous flow and andon
creates short lead times for
rapid feedback. Leaders
constantly on the floor and
providing reinforcement
Goal Setting Set specific, measurable
goals, achievable
challenging goals and
measure progress
Set goals that meet these
criteria through policy
deployment. Continuous
measurement of targets
32/49
33. PEOPLE & PARTNERS
Principle 11
Respect Your Extended Network of Partners
and Suppliers by Challenging Them and
Helping Them Improve
Auto industry suppliers consistently report that TOYOTA is their
best customer ….and also their toughest.
Have respect for your partners and suppliers and treat them as
an extension of your business.
Challenge your outside business partners to grow and develop.
It shows that you value them.
Set challenging targets and assist your partners in achieving
them.
33/49
34. PEOPLE & PARTNERS
Principle 11
Respect Your Extended Network of Partners and Suppliers by
Challenging Them and Helping Them Improve
Toyota is very carefully when deciding what to outsource
and what to do in house. Toyota outsource about 70% of the
components. It still wants to maintain internal competency
Even when Toyota chooses to outsource a key component,
it does not want to lose internal capability
As a general rule, Toyota wants to have at least two
suppliers for every component
Toyota is very bureaucratic in their dealings with suppliers,
having extensive standards, auditing procedures, rules etc.
But suppliers consider Toyota as their partner and Toyota is
viewed as enabling customer who participate and solve their
problems too.
34/49
35. PEOPLE & PARTNERS
Principle 11
Respect Your Extended Network of Partners and Suppliers by
Challenging Them and Helping Them Improve
Reliable
Partnership
Enabling
Systems
Clear Expectations
Stable, Reliable Processes
Fair and Honourable
Business Relations
Supply Chain Need Hierarchy
Next Level of
Improvement
Stability
35/49
36. THE TOYOTA WAY 36/49
Problem Solving
(Continuous Improvement and Learning)
People & Partners
(Respect, Challenge and Grow Them)
Process
(Eliminate Waste)
Philosophy
(Long Term Thinking)
+Continual org learning.
+Go & see yourself.
+Decision slowly by consensus and implement
rapidly.
+Grow leaders who live the philosophy.
+Respect, develop and challenge people, teams
and suppliers.
+Create process flow to surface problems
+Use pull system to avoid over production
+Stop when there is a quality problem. (Jidoka)
+ Level out the workload. (heijunka)
+Standardize tasks for continuous improvement.
+Use visual control so no problems are hidden.
+Use only reliable technology.
+Base management decisions on a long term
philosophy, even at the expense of short term
financial gains.
“4 P” MODEL OF THE TOYOTA WAY
37. PROBLEM SOLVING
Principle 12
GO and SEE to Thoroughly Understand
the Situation (Genchi Genbutsu)
“Observe the production floor without preconceptions and
with a blank mind. Repeat “why” five times to every
matter.”
Taiichi Ohno (as quoted in the Toyota Way document)
It is more than going and seeing. “What happened? What did you see? What
are the issues? What are the problems?” At the root of all of that, we try to
make decisions based on factual information, not based on theory, statistics
and number contribute to the facts, but it is more than that. Some time we get
accused of spending too much time doing all the analysis. Some will say,
“Common sense will tell you. I know what the problem is.” But collecting data
and analysis will tell you if your common sense is right.
37/49
38. PROBLEM SOLVING
Principle 12
GO and SEE to Thoroughly Understand
the Situation (Genchi Genbutsu)
Mr. Ohno at times made his supervisor / managers to draw a circle on
the floor of a plant and they were told, “Stand in that and watch the
process and think for yourself”, and then he did not even give you any
kind of hint of what to watch for. This is the real essence of TPS.
The Power of Deep Observation
To Question, Analyze and Evaluate
We often depend upon computers to analyze and evaluate data
Like Six Sigma quality improvement initiatives – we collect data and
run it through statistical analysis – correlations, regressions, variance
etc, some of the results we get are statistically significant. But do we
really understand the context of what is going on or the nature of the
problem?
38/49
39. PROBLEM SOLVING
Principle 12
GO and SEE to Thoroughly Understand
the Situation (Genchi Genbutsu)
Data is of course important in manufacturing, but place greatest
emphasis on facts – go and see
Think and speak based on personally verified data
See America, then design for America – to design Sienna minivan in
2004, the Chief Engineer of D&D drove extensively in US, Canada and
Mexico to get a feel of what people wants in a minivan
You can not expect to do your job without getting your hands dirty
39/49
40. PROBLEM SOLVING
Principle 13
Make Decisions Slowly by Consensus, Thoroughly
Considering All Options; Implement Rapidly
If there is a project supposed to be fully implemented
in a year. A typical company anywhere would spend about
three months on planning and begin to implement. But they
encounter all sorts of problems after implementation and
would spend rest of the year in correcting them
Toyota will spend 10 months planning, building
consensus, implement it in a small pilot production – and
fully implement at the end of year, with virtually no
remaining problems
Nothing is assumed. Every thing is verified
40/49
41. PROBLEM SOLVING
Principle 13
Make Decisions Slowly by Consensus, Thoroughly
Considering All Options; Implement Rapidly
Decide and
Announce
Seek individual
input, then
Decide and
Announce
Seek group
input, then
decide and
announce
Group
consensus,
Management
Approval
Group
consensus
with full
authority
Preferred
Fallback
Fallback
If consensus
not achieved
LevelofInvolvement
Time
Decision making is highly situational
Philosophy is to seek maximum
involvement for each situation
Get all the parties on board, iron out all the
resistance, generate consensus, then implementing
41/49
42. PROBLEM SOLVING
Principle 14
A Learning Org Through Relentless Reflection (Hansei)
and Continuous Improvement (Kaizen)
We view errors as opportunities for learning. Rather than
blaming individuals, the organisation takes corrective actions and
distributes knowledge about each experience broadly. Learning is a
continuous company-wide process as superiors motivates and train
subordinates; as predecessors do the same for successors; and as a
team subordinates at all levels share knowledge with one another.
The Toyota Way Document 2001
Toyota has judiciously used stability and
standardization to transfer individual and team innovations
into organisational-wide learning. Standardisation
punctured by innovation, gets translated into new
standards (Kaizen) .
42/49
43. PROBLEM SOLVING
Principle 14
Relentless Reflection (Hansei) and Continuous Improvement (Kaizen)
5 Whys is a method to pursue the deeper, systematic causes of a
problem to find correspondingly deeper countermeasures
Level of Problem Countermeasure
There is a puddle of oil on the shop
floor
Clean up the oil
Because the machine is leaking oil Fix the machine
Because the gasket has deteriorated Replace the gasket
Because we bought gasket made of
inferior material
Change gasket
specifications
Because we got a good price on those
gaskets
Change purchasing
policies
Because the purchase agent gets
evaluated on short term cost savings
Change the evaluation
policy for purchasing agent
43/49
44. Point of Cause
2. Clarify the Problem
1. Initial Problem Solving
(Large, vague, complicated)
3. Locate Area / Point of Cause
Direct Cause
Cause
Cause
Cause
Cause
5. Countermeasure
6. Evaluate
7. Standardize
Root Cause
Why
Why
Why
Why
Why
Grasp the
Situation
Cause
Investigation
Basic Cause
and Effect
Investigation
4. Five Whys?
Investigation
of Root Cause
Toyota’s Practical Problem Solving Process
44/49
45. PROBLEM SOLVING
Principle 14
Relentless Reflection (Hansei) and Continuous Improvement (Kaizen)
Create Flow
(Act)
Surface
Problem
(Plan)
Counter
Measures
(Do)
Evaluate
Results
(Check)
Eliminate
Waste
Deming Circle of Quality (PDCA)
45/49
46. THE TOYOTA WAY
One man did his part, and the other his, and neither even had
to check to make sure both parts were getting done. Like the dance of
atoms Alvin had imagined in his mind. He never realized it before, but
people could be like those atoms, too. Most of the time people were all
disorganized nobody knowing who anybody else was, nobody
holding still long enough to trust or be trusted, just like Alvin
imagined atoms might have been before God taught them who they
were and gave them work to do.
It was a miracle seeing how smooth they knew each other’s
next move before the move was even begun. Alvin almost laughed out
loud in the joy of seeing such a thing. Knowing it was possible,
dreaming of what it might mean – thousands of people knowing each
other that well, moving to fit each other just right, working together.
Who could stand in the way of such people?
Orson Scott Card
Prentice Alvin: The Tales of Alvin Maker
46/49
47. THE TOYOTA WAY
The Lessons and
Secrets of Toyota way
It creates bonds among individual and
patterns such that they “move to fit together just
right, working together” towards a common goal.
Creating a WHOLE much greater and
stronger than the SUM of the individuals
47/49
48. THE TOYOTA WAY
Bibliography &
Recommended Readings
The Toyota Way – Jeffery K. Liker
The Machine that Changed the World –
Womack, Jones & Ross
Lean Thinking – Womack & Jones
48/49
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in
The genesis of my presentation lies in the pilot project on introduction of Lean Engineering practices conducted at 11 BRD by professors consultant of IIT, Kharagpur. The report was submitted some time in