Toyota Way
Marc Zolghadri
[email protected] Marc.Zolghadri@ims
This is the end of an American Dream !
2007 : The end of an American Dream ! Toyota becomes the first car maker in the World. GM cedes its first place after 25 years.
2008 : Looking for laying off 34000 workers.
2008 : 18 /minute = 9 340 000 /y 1935 : 25 /y
234b$
13 times higher
17b$ 2007 : Market capitalisation
Market capitalisation :
Toyota> (GM + Ford + DaimlerChrysler + VW)
% of turnover for R&D : Toyota : 8% Renault : 6% PSA : 5%
Most Innovative Enterprise (Business Week) in 2006 Toyota : 4th
BMW (16), Honda (23), Porsche (26), DaimlerChrysler (31), Renault (49), Nissan (57)
1990 : 1st Toyota plant in England 2008 : 8 plants 64% of cars sold in Europe are made in Europe ! 66% of cars sold in the USA are made in the USA !
In Valenciennes : 23 japaneseworkers 4000 french workers
Toyota with numbers (2004) Corolla is the most sold car in the whole car history.
Camry is the most sold car in the USA since 5 years.
Lexus was launched in 1989. Lexus are sold more than BMW, M-Benz, Cadillac (since 3 years) The shortest Product Development cycle : 12 months ! (2/3 years for the competitors). According to the Consumer Reports in 2003, 15/38 cars the most reliable over 7 years are made by Toyota/Lexus. GM, Mercedes and BMW are not in that list ! Toyota is declared as the most reliable car byAmercian Drivers (Consumer Reports 2003).
Toyota with numbers (2004)
Corolla is the most sold car in the whole car history !
Toyota with numbers (2004)
Camry is the most sold car in the USA for 5 years.
1989 : Lexus was launched in 1989.
2004 : Lexus are sold more than BMW, MBenz, Cadillac (since 2001 years)!
The shortest Product Development cycle : 12 months ! (2/3 years for the competitors).
TPS A leanenterpriseis a companywherethe TPS isapplied to already all of the firm’sfunctions. Lean tools ≠ Lean system Lean system needsverydeep cultural transformations.
Toyota Supplier Support Center (USA) hadworkedwith a sensor manufacturer in the USA whichhadobtained Shino Award. After 9 months : Product lifecyclewithin the plant : 12days 6.5h (97.8%) In-process inventory : 9h 1.5h (84%) Final productinventroy : 30500 2890 (91%) Overtime : 10h 5h/person/week (50%) Productivity : 2.5 4.5items/person/hour (83%)
TPS vs Toyota Way Toyota way contains all fundamental principals of the Toyota culture.
Toyota Way
Thanks to these principals, the TPS works. TPS : is the example of the most systematic and completed set of applicabale principals of the Toyota way. Using TPS tools is not enough !
TPS
TPS 1930 : Born of Toyota 1950 : The Goal : Obtain the sameproductivity as Ford 9000 Ford par month (Hugemarket). Toyota had to makeseveralmodels on a sameassembly line (smallmarket).
Ford in 1950 : visit of Ford plants byChiefEngineer Mr. Ohno No changes between 1930 and 1950! Huge machines separated by huge in-process articles. Workersshouldoccup the machines. 100% occupation of machines (over production). Chaotic flow of components.
Ohnowanted : A continuous flow. One-By-One flow of products. No waste (muda). Automation with a humantouch.
TPS
Ohnowanted : No production beforeneed. (Gasneed management for car, no fillbeforeneed). Put the need gauge for every production activity. (Kanban). When gauge isRed for the activity 2, the activity 1 shouldfill the stock. Pull Production. Internal customer : The previous process should always do the next process wants.
In 1960 : TPS wasestablished.
TPS
In 1990 : Lean production : MIT’s Int. Motor Vehicle Program : "Lean Production (a term coined by IMVP researcher John Krafcik) is "lean" because it uses less of everything when compared to mass production-half the manufacturing space, half the investment in tools, half the engineering hours to develop a new product in half the time. Also, it requires keeping far less than half the needed inventory on site, results in many fewer defects, and produces a greater and ever growing variety of productions."
Muda (Ohno 1995)
Over-production. The greatest source of waste and is an outcome of producing more than is needed by the next process. Waiting time. This is the time spent by labour or equipment waiting to add value to a product. This may disguised by undertaking unnecessary operations which are not immediately needed. Transport. Unnecessary transportation of Work-in-progress (WIP). Process. Some operations do not add value to the product but are simply there because of poor design or preventive maintenance should eliminate these processes. Inventory. Over Inventory of all types (eg. Pipeline, cycle, …). Motion. Simplification of work movements will eliminate unnecessary motion of labour and equipments. Defective goods. The total cost of poor quality can be very high and will include scrap material, wasted labour time and time expediting orders and loss of goodwill through missed delivery dates.
LEAN : eliminate waste, Muda (Ohno 1995)
LEAN : eliminate waste, Muda (Ohno 1995)
Raw Materials Added Value Muda
Final Products •Traditional management methods are concentrated on tasks with added value. •Lean focuses on the whole value chain eliminating tasks without added value.
Organisation of the plant as a set of Cells. Each cell works on an one-by-one flow of parts.
TPS home model Better quality – Cost as low as possible Throughout as fast as possible – Better secirity – Good mood Thanks to waste elimination Just-In-Time Right part, right quantity, right moment •Takt time calculation •Continuous flow •Pull production •Rapid tool changing •Integrated logistic
Employees Selectin Common goals Decision making Ringi Cross-training Continuous improvments(Kaizen) Waste reduction Genchi genbutsu 5S Waste Detection Problem solving Balanced production (heijunka) Standard and stable process Visual management
Toyota philosohy
Jidoka (Highlitgh problems, never let the problems go to the next step) •Automatic stop •Andon •Human-machine separation •Error free systems •Quality control in place •Correct the profound causes (5 why)
Produce the most luxury car in the world !
Lexus History Hard context: BMW, M-Benz, Jaguar, … Clear identification of the market needs (1980)
Yes
No
M-Benz
Quality, good investment, solid
Too small, ordinary (vs. BMW)
BMW
Design, operational
Too much BMW on the roads
Audi
Pace, place, price
Quality, low service
Jaguar
Classy
Quality, small places inside
Lexus History Priority of the criteria of buyers of M-Benz 1. 2. 3. 4. 5.
Prestige Quality Resale value Performance Security
These two contradictory criteria are used by Ing. Suzuki (Lexus Project manager) to launch the specifications to the designers. Ex :
Speed Air factor
Lexus
M 420 SE
BMW 735i
250km/h 0.28-0.29
222km/h 0.32
220km/h 0.37
Lexus History The set of inflexible objectives : Stability in high speed BUT without decreasing the comfort. Drive rapidly BUTDo not consume highly. Be ultra silent BUTRemain light. Elegant BUT Good aerodynamic. User-friendly BUTOperational.
For instance: by using 5Why, Lexus engine was designed in order to Be ultra silent BUT remain light. The very first reaction of engineers : IMPOSSIBLE ! The result : same silence in the car at 100km/h than at 160km/h.
Produce the most environmentally responsible car in the world ! (not a prototype or concept car)
TOYOTA Prius From the begining of 1990. Reducing fuel consumption for the next century Small car with enough internal space, lowest consumption as possible
The industrial goals were : To develop new manufacturing methods To imagine a new product development process
Technical goal : 20Km/l (normal rate was 13.5km/l) First meeting of the development meeting: presentation of the concept in septembre 1993. The Chief Engineer of the project was nominated according to a long internal discussions.
Prius New product development technique : Obeya (Big Room). Detail design of the product was done in 6 months. Concurrent alternative developments. Big Room meetings : Two Key words Natural resources Environment Hybride engine
In 1994 : the choice of hybride engine wasn’t finalised. In October 1995 : Toyota wanted to present Prius as a concept car for Tokyo Car Show. 1 year !!
In one year the developmenttealstudied 80 hypbridsolutions ! Toyota decided in june 1995 to produce Prius in serie ! First project Prototype dvp
Improvment of proto
1997
Second project
Prius dvp
Dec 1997
1998
Finalisation & Industrialisation
1999
Prius 15 months for : A new manufacturing process A new sale plan A new After Sale service
At the same time in the USA the development cycle of a new car was about 5 – 6 years. Toyota decided to create a Joint Venture with Matsushita Electric in order to develop batteries for Prius and later for other car makers. In 1997, 1000 engineers worked at the same time on Prius. 24h/day. Prius was launched successfully in october 1997. 3500 sales per month after 3 months.
A brief history of car making.
14 Toyota Principles J.Liker Michigan University
Problem Solving (continuous improvement And learning)
Employees and partners (respect, mettre au défi, develop)
Process (eliminate waste)
Philosophy (long term ideas)
1) Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.
1. Base your management decisions on a longlong-term philosophy, even at the expense of shortshort-term financial goals.
Have a philosophical sense of purpose that supersedes any short-term decision making. Work, grow, and align the whole organization toward a common purpose that is bigger than making money. Understand your Pace in the history of the company and work to bring the company to the next level. Your philosophical mission is the foundation for all the other principles. Generate value for the customer, society, and the economy—it is your starting point. Evaluate every function in the company in terms of its ability to achieve this. Be responsible. Strive to decide your own fate. Act with selfreliance and trust in your own abilities. Accept responsibility for your conduct and maintain and improve the skills that enable you to produce added value.
1. Base your management decisions on a longlong-term philosophy, even at the expense of shortshort-term financial goals. Mission is something bigger than salary. “the firm is an organization which survives due to its own success, protect its children (!), let them live in the best possible situations in order to grow up and to create and to conserve their forces.” (page 93) The raison d’être of Toyota is to produce value for customers, for the society and for the economy. (page 93) The way that you manage the customer is important. (example Lexus: 500$ for tires, page 95).
1. Base your management decisions on a longlong-term philosophy, even at the expense of shortshort-term financial goals.
Mutual trust (workers, …) Help partners and even concurrent (GM in NUMMI plant). : A profound conviction ! Prove that human resources are the most important resources of the company. (98) Missions of the CEO of Toyota (: 103) Contribution to the economy Contribution to the employees Contribution to the global Toyota growth
MANAGEMENT POLICY 1. Toyota's Basic Management Policy Toyota Motor Corporation ("TMC") holds up the "Guiding Principles at Toyota Motor Corporation" as its basic management policy and believes that efforts to achieve the goals set forth in the principles will lead to an increase in corporate value. The "Guiding Principles at Toyota Motor Corporation" are as follows: (1) Honor the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world. (2) Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities. (3) Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our activities. (4) Create and develop advanced technologies and provide outstanding products and services that fulfil the needs of customers worldwide. (5) Foster a corporate culture that enhances individual creativity and teamwork value, while honoring mutual trust and respect between labor and management. (6) Pursue growth in harmony with the global community through innovative management. (7) Work with business partners in research and creation to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.
MANAGEMENT POLICY 2. Medium- and Long-term Management Strategy To put in place a solid foundation while continuing to achieve further growth, the Toyota Group will make combined efforts to address the following agenda. First, one short-term issue is the stimulation of the Japanese market through the introduction of market-creating products that anticipate customer needs and the implementation of demand-generating strategies with a sense of speed that will promote stronger interest in automobiles. Overseas, on the other hand, we will make every effort to ensure the smooth start up of our new plants in the United States (Mississippi), Canada, Russia, and China, and through further development of the foundation of production, purchasing, and sales structures, promote corporate activities that are rooted in the local regions. Medium- to long-term issues include the development and commercialization of innovative new technologies related to the environment, safety, and energy, which lead to the realization of the ultimate automobile manufacturing that is beneficial to people, society, and the earth. Next, we will implement global quality improvements in local procurement, one of Toyota's strengths, to maintain and enhance the world's leading level of quality and raise cost competitiveness, thus supporting high-quality and sustainable growth. In addition, Toyota fulfills its social responsibilities by carrying out corporate social responsibility (CSR) activities through philanthropic activities undertaken from a global perspective and thorough corporate ethics including full compliance with applicable laws and regulations. Based on the belief that the development of human resources is fundamental to corporate competitiveness, Toyota is engaged in the training of highly-creative personnel that will pass on Toyota's manufacturing technologies, skills and values to the next generation. By addressing these agenda, Toyota is working to enhance its corporate value as a company with energy and dignity and maintain growth in harmony with society rooted in "manufacturing" over the 21st century.
Problem Solving (continuous improvement And learning)
Employees and partners (respect, mettre au défi, develop)
Process (eliminate waste)
Philosophy (long term ideas)
2) Create a continuous process flow to bring problems to the surface. 3) Use “pull” systems to avoid overproduction. 4) Level out the workload (heijunka). (Work like the tortoise, not the hare.) 5) Build a culture of stopping to fix problems, to get quality right the first time. 6) Standardized tasks and processes are the foundation for continuous improvement and employee empowerment. 7) Use visual control so no problems are hidden.
2) Create a continuous process flow to bring problems to the surface. With a continuous one-by-one production process, the whole production line stops when a problem occurs. Collaborative approach to solve the problem.
90% of operational processes are waste and 10% brings added-value. Eliminate these waste. > Eliminate working by batches ! Eliminate stocks. When impossible, put small stocks and reduce them continuously.
Watse in mass production. Group similar machines and human operators. Economy of scale: 100% of usage of a huge complex machine. Apparent flexibility. 5 similar operators can be more easily affected to various tasks.
Each workstation should be used at 100%.
100%
100%
100%
100%
100%
This is : Over-production, Waiting time, Transport,Inventory.
Lot size = 10
Operation duration = 1min
10min/batch
10min/batch
10min/batch Added value = 3min for a computer
Complete production time = 21min
Process flux : Takt time (Rowing)
Too powerful, too speed = problem and loose of speed
Takt time Production capability = 440min/day * 20 days minutes If customers buy 17600 units, then produce 2 unit/min.
How to reduce Muda by One-to-One flux? It makes quality. An operator is his/her own inspector. It creates flexibility. It improves productivity. It liberates space. It improves safety. (scanner 124 et 125)
3) Use “pull” systems to avoid overproduction.
Gas fill in cars: fill it based on your needs and not only based on programmed moments. In firms, we produce based on forecasts => waste (forecasts are rarely true). In production and supply, let the customers pull.
3) Use “pull” systems to avoid overproduction. Even if it is impossible to eliminate the stocks, the target is stock =0. There is no obsession about the push flow. There are push flows between Japan and the USA.
4) Level out the workload (heijunka). Work like the tortoise, not the hare. If you want to give products to customers on time, you should manufacture goods on time. Customers behaviours are chaotic. > Unlevelled work load.
Three Ms that collectively describe wasteful practices to be eliminated
Muda: Any activity that consumes resources without creating value for the customer. (gaspillage)
Mura: Unevenness in an operation; for example, an uneven work pace in an operation causing operators to hurry and then wait. (irregularités)
Muri: Overburdening equipment or operators. (surcharge) Change the real order to obtain a regular program AABABBBAB… > ABABABA…
4) Level out the workload (heijunka). Work like the tortoise, not the hare.
Monday Most sold engines Tuesday Tools changing Wednesday
Small engines
Thursday Tools changing Friday
Least sold engines
4) Level out the workload (heijunka). Work like the tortoise, not the hare. Customers are unforeseeable. If they want more big engines at the beginning of the week ? Stock ? Unsold risks. If the medium engines are not sold at the beginning? Stock ? Resources are used irregularly.> Needs of more operators at the beginning of the week, less in the middle and highly at the end !operators work program? The Bullwhip effect ! (for suppliers)
Made
A
2
3
B Bought 2 C
4) Level out the workload (heijunka). Work like the tortoise, not the hare. Tools changings !!!
Monday
Tuesday
Wednesday
Thursday
Friday
5. Build a culture of stopping to fix problems, to get quality right the first time.
Stop the process to build quality (jikoda). “each operator has the obligation to stop the assembly line each time that a problem occurs.” “… if we did not produce at 100%, we had to explain to topmanagers …” Do not propagate the problem to next workstation. It costs less than inspect and correct it later. Do it now ! Use Andon (page165)
5. Build a culture of stopping to fix problems, to get quality right the first time. Andon runs workstation by workstation. Operator 5 pushes the button, A Yellow light is run but the the line continues to run. Inspection and correction should be done within the takt time (30s) before the product reaches the next workstation. If no, the light goes to RED and the line is stopped. After correction the light goes to green and the line is launched.
The assembly line is subdivided into segments with small stocks (7 to 10). This allows the assembly line to work between 7 to 10 minutes before stops. For any problem, provide simple solution. Thanks to various techniques and solved problems, there are many pokayoke which limits hardly errors.
5. Build a culture of stopping to fix problems, to get quality right the first time. 4 simple tools to produce quality for Toyota: Go and see inside the plant. Analyse the situation. Use the piece-to-piece system and Andon to underline problems. Ask 5 times why. Produce quality is a principle not a technology.
5. Build a culture of stopping to fix problems, to get quality right the first time. Build into your equipment the capability of detecting problems and stopping itself. Develop a visual system to alert team or project leaders that a machine or process needs assistance. Jidoka (machines with human intelligence) is the foundation for “building in” quality. Build into your organization support systems to quickly solve problems and put in place countermeasures. Build into your culture the philosophy of stopping or slowing down to get quality right the first time to enhance productivity in the long run.
6. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment. Use stable, repeatable methods everywhere to maintain the predictability, regular timing, and regular output of your processes. It is the foundation for flow and pull. Capture the accumulated learning about a process up to a point in time by standardizing today’s best practices. Allow creative and individual expression to improve upon the standard; then incorporate it into the new standard so that when a person moves on you can hand off the learning to the next person.
6. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.
Toyota standardisation is used for every kind of tasks. To improve your processes you should standardise it first. In Toyota, each time that a problem is identified the first question is to know if the standards have been respected ! The standards have to be defined by users not by quality engineers !
6. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment. Does standardisation mean top-down control, mechanistic, …?
Social structure
For Toyota, the most precious resources •Top-down control •Minimum written rules and procedures •Hierarchical control Domination
•Responsible employees •Rules and procedures that facilitates the job •Hierarchy that support the organizational learning
are•Responsible the employees. employees •Minimum rules and procedures •Light control Allowable
High bureaucracy
•Rigid application of rules •Numerous written rules and procedures •Hierarchical control
TPS
Low bureaucracy
Technical structure
Taylorism
7) Use visual control so no problems are hidden. Use simple visual indicators to help people determine immediately whether they are in a standard condition or deviating from it. Avoid using a computer screen when it moves the worker’s focus away from the workplace. Design simple visual systems at the place where the work is done, to support flow and pull. Reduce your reports to one piece of paper whenever possible, even for your most important financial decisions.
7) Use visual control so no problems are hidden. Sort means to separate needed tools, parts, and instructions from unneeded materials and to remove the latter. Straighten means to neatly arrange and identify parts and tools for ease of use. Sweep means to conduct a cleanup campaign. Standardize means to conduct Sort, Straighten, and Sweep at frequent, indeed daily, intervals to maintain a workplace in perfect condition. Sustain means to form the habit of always following the first four Ss.
5S
8) Use only reliable, thoroughly tested technology that serves your people and processes.
Toyota utilises approved technologies. Do not speed up to use the latest technique (even internet, …). Every technique should be tested by a huge amount of people. A new technique should help in adding added value. For a given problem: First determines if by existing people, methods, tools and techniques, it can be solved. If no, try a new technique by analysing its consequences. Is it in accordance with Toyota Philosophy? Does it respect operators? Make operators contribute to the new technique integration (no more resistance, consensus,…).
8) Use only reliable, thoroughly tested technology that serves your people and processes.
Before modifying existing solutions, be sure that computeraided X could really help? It is a tool. The problem is solved generally by human. It is easy to learn Kaizen (continuous improvements) to operators not to machines. For design: Ford uses a 1st system by spending hundreds of M$. They change to CATIA after in a huge project. Toyota uses from the beginning CATIA. CATIA is used in a global demarche. Development delay: from 48 m to minus than 12m ! Project: Collaborative development by using numerical engineering.
8) Use only reliable, thoroughly tested technology that serves your people and processes.
Toyota's Global Body Shop. The Japanese automaker is putting the final touches on a new strategy: being able to build almost anything, anywhere. “FORTUNE magazine, February 2004
8) Use only reliable, thoroughly tested technology that serves your people and processes.
Every kind of body maintained by Robots that can be programmed easily ‘without stopping the line! No need for pallet. The Global Body Line is introduced without stopping the lines. (Georgetown plant: changing the system by maintaining 96% production rate; 80% to 85% for other American plants!)
Problem Solving (continuous improvement And learning)
Employees and partners (respect, mettre au défi, develop)
Process (eliminate waste)
Philosophy (long term ideas)
9) Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. 10) Develop exceptional people and teams who follow your company’s philosophy. 11) Respect your extended network of partners and suppliers by challenging them and helping them improve.
9) Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
Major CEO of automotive industry Bill Ford: CEO of FORD Robert Lutz: CEO of GM Dieter Zetche: CEO Chrysler Carlos Ghosn: CEO Nissan Fujio Cho: CEO of Toyota. The only “normally” promoted personal from the enterprise.
A principle: Don’t buy your leaders; Grow them up! The first lesson of these internal managers: Clients first. Create 3L. “Life-Long Loyalty”
9) Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
In 1999, the biggest Toyota plant oversee obtained an American manager who had worked for the company 15 years. The first lesson of a manager: The clients first. Determine clear definition of the NPD project: one chief engineer in charge of a project.
9) Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. Responsibility without authority Project Manager (no authority)
Function Manager (authority)
Centre manager
Centre 1 project Centre n
9) Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. The general functional manager controls the engineers (allocate them to projects, evaluate them). The project manager is responsible of the project but not the people. The project manager has to ask general functional manager to perform the tasks. The project manager has to argue its decision in order to convince the function mangers.
Top-down down (orders)
Bottom-up (development)
9) Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
Group Animator
Learning promoter
“You are responsible”
“This is your way and objective. I’ll guide you, I’ll help you”
Bureaucratic manager
Military chief “Do it”
“Follow the line”
General management Competencies
Deep knowledge Of works
Before making cars, we make individuals.
10. Develop exceptional people and teams who follow your company’s philosophy. Create a strong, stable culture in which company values and beliefs are widely shared and lived out over a period of many years. Train exceptional individuals and teams to work within the corporate philosophy to achieve exceptional results. Work very hard to reinforce the culture continually. Use cross-functional teams to improve quality and productivity and enhance flow by solving difficult technical problems. Empowerment occurs when people use the company’s tools to improve the company. Make an ongoing effort to teach individuals how to work together as teams toward common goals. Teamwork is something that has to be learned.
11. Respect your extended network of partners and suppliers by challenging them and helping them improve.
Toyota is the most demanding of the car maker (part makers). In 1999, one of the American car maker decided to surpass the Toyota relationships with its partners. (page 252). Built a Supplier training centre. “Tell them to work first on their own process!”
Relationship with partners
11. Respect your extended network of partners and suppliers by challenging them and helping them improve. Work in partnership while conserving internal capability. 70% of a car component are sub-contracted. They do not transfer all of the internal competencies to partners. If 70%
of a Toyota is mastered by partners, how can you differentiate a Toyota from a Renault? Prius: Toyota made a plant to design and manufacture a specific transistor ! Toyota made a joint venture to design the battery !
Toyota wants to know what is within the Black Box! No Black Box, just a Closed Box!
11. Respect your extended network of partners and suppliers by challenging them and helping them improve.
Nippon Denso was as a Toyota division. It becomes independent in 1949. Toyota has two suppliers for every component unless for those Denso components. In 1988 created an electronic plant: Electronic components in a car (10000 of the components are managed electronically). Denso has become BIG and complex situations between them had appeared.
Liker Pyramid (Maslow needs hierarchy)
Next improvement level
Learning Enterprise Enabling Systems
Stability
Clear Expectations Stable, Reliable Processes Fair and Honorable Business Relations
Continuously Solving Root Problems Drives Organizational Learning
Problem Solving (continuous improvement And learning)
Employees and partners (respect, mettre au défi, develop)
Process (eliminate waste)
Philosophy (long term ideas)
12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu). 13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (nemawashi). 14. Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).
12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu).
Solve problems and improve processes by going to the source and personally observing and verifying data rather than theorizing on the basis of what other people or the computer screen tell you. “… Go in the plant to see the problem You are the responsible of the data you communicate to others.
Think and speak based on data that you have personally verified.
12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu).
Understand the USA before create for the USA. The chief engineer of Sienna travelled 50 states of the USA, 13 provinces of Canada, and Mexico He suggested several implemented improvements. Dr. Saito, the director of the international R&D centre goes to Home Depot parking to see the way that Americans use their car to buy things for their DIY. The consequence: the next generation of Sienna is longer than 1m!
12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu).
Maintain the contact with operator and the real situations. The CEO of the Georgetown plant is on the top of the assembly chain.
Learn to your collaborators. Ask them to provide daily reports. Culture: Prof. Nisbett “the Geography of thought” Western people see objects Eastern people see objects + relationships
13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly.
In the USA. For a project = 3m of planning + 9 m pf execution (with problem solving) TPS. For a project= 9 to 10 m of planning + 3m of execution (with minor problems) For Toyota; the way that reach the result is as important as the results you obtained. “God is in the details!”
13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly.
Decision-making procedure Go and see the real problem. Understand the causes: 5 Why. Study roughly alternatives and develop arguments for the most appropriate. Find the tradeoffs with stakeholders, especially with employees and partners. Use efficient communication support: one A4 paper !!!
Help managers to make decision by consensus: step by step, in a long discussion and negotiation process.
13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly. Toyota problem solving is based on Deming Cycle: Plan, Do, Check, Act
Title Context (existing value, requirements, policy, objective and plan As Is situation (Needs and conditions analysis) Recommendations (Cost, advantages) Implement (plan’s details) Follow-up (target results, When/How verify them?) A3 paper
13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly. Problem solving meetings: Clear objectives Good persons present. Prepared attendees Use the efficient visual support document (A3) Separate data exchange and problem solving The meeting begins on time and ends on time.
Eliminate any resistance before making final decision. Do tradeoffs.
14. Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen). A learning organisation is a place where people can develop their creativity, where new thoughts are encouraged, where collective learning is liberated and where they learn to learn collectively. For Toyota, standardisation and innovation are the two facets of the success coin. A learning organisation should have: Stable staff Slow promotions and improvements in order to protect its knowledge capital.
