Philosophy of ToyotaPhilosophy of Toyota

BETTER CARSAT BETTER PRICESFOR MORE PEOPLE

SOCIETY’S BENEFIT EMPLOYEE’S BENEFIT

Philosophy(Long-term Thinking)

People and Partners

(Respect, Challenge and Grow Them)

Process(Eliminate Waste)

ProblemSolving

(Continuous Improvement & Learning)

•Continual organizational learning through Kaizen•Go see for yourself to thoroughly understand the situation (Genchi Genbutsu)•Make decisions slowly by consensus, thoroughly considering all options; implement rapidly

•Grow leaders who live the philosophy•Respect, develop, and challenge your people and teams•Respect, challenge, and help your suppliers

•Create process “flow” to surface problems•Use pull systems to avoid overproduction•Level out the workload (Heijunka)•Stop when there is a quality problem (Jidoka)•Standardize tasks for continuous improvement•Use visual control so no problems are hidden•Use only reliable, thoroughly tested technology

•Base management decisions on a long-term philosophy, even at the expense of short-term financial goals

““4 P” Model of The Toyota Way4 P” Model of The Toyota Way

Philosophy(Long-term Thinking)

People and Partners

(Respect, Challenge and Grow Them)

Process(Eliminate Waste)

ProblemSolving

(Continuous Improvement & Learning)

•Continual organizational learning through Kaizen•Go see for yourself to thoroughly understand the situation (Genchi Genbutsu)•Make decisions slowly by consensus, thoroughly considering all options; implement rapidly

•Grow leaders who live the philosophy•Respect, develop, and challenge your people and teams•Respect, challenge, and help your suppliers

•Create process “flow” to surface problems•Use pull systems to avoid overproduction•Level out the workload (Heijunka)•Stop when there is a quality problem (Jidoka)•Standardize tasks for continuous improvement•Use visual control so no problems are hidden•Use only reliable, thoroughly tested technology

•Base management decisions on a long-term philosophy, even at the expense of short-term financial goals

Genc

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Where Most“Lean”

Companiesare

Philosophy(Long-term Thinking)

People and Partners

(Respect, Challenge and Grow Them)

Process(Eliminate Waste)

ProblemSolving

(Continuous Improvement & Learning)

•Continual organizational learning through Kaizen•Go see for yourself to thoroughly understand the situation (Genchi Genbutsu)•Make decisions slowly by consensus, thoroughly considering all options; implement rapidly

•Grow leaders who live the philosophy•Respect, develop, and challenge your people and teams•Respect, challenge, and help your suppliers

•Create process “flow” to surface problems•Use pull systems to avoid overproduction•Level out the workload (Heijunka)•Stop when there is a quality problem (Jidoka)•Standardize tasks for continuous improvement•Use visual control so no problems are hidden•Use only reliable, thoroughly tested technology

•Base management decisions on a long-term philosophy, even at the expense of short-term financial goals

Genc

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Genb

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Resp

ect &

Team

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Kaiz

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Chal

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Toyota’sTerms

People & Teamwork• Selection • Common Goals • Ringi Decision Making• Cross – Trained

Waste Reduction• Genchi Genbutsu • 5 Why’s • Eyes for Waste • Problem Solving

Toyota Production System HouseToyota Production System House

Continuous Improvement

Creating Flow and PDCACreating Flow and PDCA

Evaluate Results(Check)

SurfaceProblems

(Plan)

Counter Measures

(Do)

EliminateWaste

CreateFlow(Act)

Three M’sThree M’s

MURI : overburden MURA : unevennessMUDA : waste - non added value

How to deliver ?

4 tons

Capacity : 4 tons

X 6

X 2

?

12 TON

X 3 =No MudaNo MuraNo Muri

EXAMPLE : ELIMINATION MUDA MURA MURI

??

= MURA

= MUDA

= MURI

There are several types of Muda

Increase Cost

[ Muda of over-production ]

Toyota Leader’s ViewToyota Leader’s View

PEOPLELong – term Asset –> Learned Skills

Machinery Depreciates -> Loses Value

People Appreciates -> Continue to Grow

PHILOSOPHICALMANAGEMENTTE

CHNI

CALTechnical

• Stability• JIT• Jidoke• Kaizen• Heijunka

Management• True North• Tools to Focus Management Attention• Go and See• Problem – Solving• Presentation Skills• Project Management• Supportive Culture

Philosophy / Basic Thinking• Customer First• People are most Important Asset• Kaizen • Go and See -> Focus on Floor• Give feedback to Team Members and Earn Respect• Efficiency Thinking• True (vs. apparent) Condition• Total (vs. Individual) Team Involvement

Supply Chain Need HierarchySupply Chain Need Hierarchy

LearningEnterprise

Enabling Systems

Clear Expectations

Stable, Reliable Processes

Fair and Honorable Business Relations

Prog

ress

ing

Need

Sat

isfac

tion

Regressing Need Satisfaction

Next Level ofImprovement

Stability

Decide andAnnounce

Seek IndividualInput, thenDecide andAnnounce

Seek GroupInput, thenDecide andAnnounce

GroupConsensus,

ManagementApproval

GroupConsensus,With FullAuthority

Leve

l of I

nvol

vem

ent

Time

Alternative Toyota Decision Making Alternative Toyota Decision Making MethodsMethods

• Decision Making is Highly Situational• Philosophy is to seek Maximum Involvement for Each Situation

MythWhat TPS is Not

Myth Vs. RealityMyth Vs. RealityReality

What TPS Is• A Tangible recipe for Success

• A Management Project or Program

• A set of Tools for Implementation

• A system for Production Floor only

• Implementable in a Short or Mid-term Period

• A Consistent way of Thinking

• A Total Management Philosophy

• Focus on Total Customer Satisfaction

• An Environment of Teamwork and Improvement

• A Never-ending Search for a Better Way

• Quality Built in Process

• Organized, Disciplined Workplace

• Evolutionary

Motivation Theories & The Toyota WayMotivation Theories & The Toyota WayInternal MotivationTheories ConceptMaslow’s NeedHierarchy

Satisfy Lower LevelNeeds and MoveEmployees up the Hierarchy toward SelfActualization.

Toyota ApproachJob Security, Good Pay, Safe WorkingConditions satisfy Lower Level NeedsCulture of Continuous Improvementsupports Growth towards SelfActualization

Herzberg’s JobEnrichment Theory

Eliminate “Dissatisfiers”(Hygiene Factor) andDesign Work to CreatePositive Satisfiers(Motivators)

5S, Ergonomics Programs, VisualManagement, HR Policies addressHygiene Factors. ContinuousImprovement, Job Rotation and Build-in Feedback Support Motivators.

External MotivationTheoriesTaylor’s ScientificManagement

Scientifically Select, Design StandardizedJobs, Train & Rewardwith Money Performancerelative to Standards.

All Scientific Management Principles followed but at the Group Level rather than Individual Level and based on Employee Involvement

Behaviour Modifications Reinforce Behaviour onthe spot when the Behaviour NaturallyOccurs

Continuous flow & andon createsshort-lead times for Rapid Feedback.Leaders constantly on the floor andProviding Reinforcement.

Goal Setting Set Specific, Measur-able, AchieveableChallenging Goals andMeasure Progress.

Sets Goals that meet these CriteriaThrough Hoshin Kanri (PolicyDeployment). ContinuousMeasurements relative to Targets.

Concept Toyota Approach

Coercive Vs. Enabling BureaucracyCoercive Vs. Enabling Bureaucracy

Coercive Bureaucracy

• Rigid Rule Enforcement• Extensive Written Rules and Procedures• Hierarchy Controls

Enabling Bureaucracy

• Empowered Employees• Rules and Procedures as Enabling Tools• Hierarchy Supports Organisational Learning

Autocratic

• Top Down Control• Minimum Written Rules and Procedures• Hierarchy Controls

Organic

• Empowered Employees• Minimum Rules and Procedures• Little Hierarchy

SOCIAL STRUCTURETE

CHN

ICAL

STR

UCT

URE

Coercive Enabling

Low

Bure

aucr

acy

Hig

hBu

reau

crac

y

5 S’s5 S’s

SortClear out rarely usedItems by Red Tagging

StraightenOrganise and Label aPlace for Everything

ShineClean ItStandardise

Create Rules to Sustainthe first 3 5’S

SustainUse Regular ManagementAudits to Stay Disciplined Eliminate

Waste

Waste in a Value SystemWaste in a Value System

Time

Casting

Transportation

StagingSetup

Machining

InspectionAssembly

Staging

RawMaterial

Time FinishedParts

Value – Added Time

Non-Value-Added Time (Waste)

• Value-added Time is only a Small Percentage of the Total Time• Traditional Cost Savings focuses only on Value-adding Items• Lean Thinking Focuses on the Value Stream to Eliminate Non-Value-Adding Items

Cost

(1) Cost + Profit

(2) Cost Reduction

Selling Price

(1) Selling price = Cost + Profit(2) Profit = Selling Price - CostsCost Principle Cost Reduction

Methods for increasing profit

Raise the selling price Demand > SupplyReduce the costs Demand < Supply

Cost Reduction is Absolute Requirement to Increase Profit

CostCost

Cost

ProfitProfit Profit

Selling Price

ProfitProfit

Cost

Low prices Elimination of waste

TOYOTA COSTPRINCIPLES

Practical Problem-Solving ProcessPractical Problem-Solving Process1. Initial Problem Perception

(Large, Vague, Complicated Problem)

POC

The “Real Problem

2. Clarify the Problem

3. Locate Area / Point of Cause

5. Countermeasure

6. Evaluate

7. Standardise

Basic Cause and EffectInvestigation

4. 5 – Why? Investigationof Root Cause

DirectCauseCauseCauseCauseCause

Root Cause

Grasp theSituation

CauseInvestigation

Why?Why?Why?Why?Why?

The Andon SystemThe Andon System

TPS Flow EnvironmentTPS Flow Environment

Product Development MatrixProduct Development Matrix

Team & Batch Production Vs. On-Piece FlowTeam & Batch Production Vs. On-Piece Flow

Toyota Way On IndomobilToyota Way On IndomobilIntegrity Spiritobedient heartfeltcare responsibility

enthusiastic ethoshonest trust discipline commitment

quickly listen carefully intactly tolerancesure precise

WaysDedicationEffortwithSucceeding

TitiTataTitaTetegTatastutug

The Toyota Way is supported by two main pillars. They are “Continuous Improvement” and “Respect for People”

We never satisfied with where we are and always improve our business by putting forth our best ideas and efforts.

We respect people, and believe the success of our business is created by individual effort and good teamwork.

TOYOTA WAY

Continuous Improvement

Respect for People

Respect for People

THE TOYOTA WAYTHE TOYOTA WAY

Bila X adalah peubah acak normal dengan nilai tengah µ dan simpangan baku σ maka distribusi normal standarnya adalah:

xZ

Dengan :X = nilai pengamatan

µ = nilai rata-rata populasi

σ = simpangan baku

Kurva Normal

Tabel Distribusi Normal

Contoh:Suatu Jenis Aki yang digunakan oleh kendaraan toyota mencapai umur rata-rata 3 tahun dengan simpangan baku 0.5 tahun. Bila umur aki itu menyebar normal, berapa peluang bahwa sebuah aki tertentu akan mencapai umur kurang dari 2.3 tahun?

Contoh:Sebuah Perusahaan alat Listrik Memproduksi bola lampu yang khusus dipakai untuk produk toyota dengan umur menyebar normal dengan nilai tengah 800 jam dan simpangan baku 40 jam. Berapa peluang sebuah bola lampu hasil produksinya akan mencapai umur antara 778 dan 834 jam.

Contoh:Diameter bagian dalam gelang (ring) Piston menyebar normal dengan nilai tengah 10 sentimeter dan simpangan baku 0.03 sentimeter.a.Berapa proporsi ring yang bagian dalamnya lebih dari 10.075 sentimeter?b.Berapa peluang bahwa sebuah ring akan mempunyai diameter bagian dalam antara 9.97 dan 10.03 sentimeter?c.Dibawah nilai berapa terdapat 15% ring yang diproduksi?

Thank YouThank You