Toyota Way

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14 Toyota Way Principles Long Term Philosophy Base your Management Decisions on a Long-Term Philosophy, even at the Expense of Short-Term Financial Goals

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14 Toyota Way Principles The Right Process Will Produce the Right Results Create Continuous Process Flow to Bring Problems to the Surface Use Pull Systems to avoid Over Production Level out the Work Load (Heijunka) Build a Culture of Stopping to Fix Problems, to get Quality Right the First Time Standardised Tasks are the foundation Improvement and Employee Empowerment Use Visual Control so no Problems are Hidden Use Only Reliable, Thoroughly Tested Technology that Serves your People and ProcessesContinue .

for

Continuous

14 Toyota Way Principles Add Value to the Organisation by Developing Your People and Partners Grow Leaders who thoroughly understand the Work, Live the Philosophy and Teach it to Others Develop Exceptional People and Teams who follow your Companys Philosophy Respect your Extended Network of Partners and Suppliers by Challenging them and Helping them Improve

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14 Toyota Way Principles Continuously Solving Organisational Learning Root Problems Drives

Go and See for Yourself to thoroughly Understand the Situation Make Decisions Slowly by Consensus, thoroughly Considering all Options, Implement Decisions Rapidly Become a Learning Organisation through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen)

4 P Model of The Toyota WayProblem Solving (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

People and Partners (Respect, Challenge and Grow Them)

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

Process (Eliminate Waste)

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

Philosophy (Long-term Thinking)

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

4 P Model Most CompaniesGe Ge nch i nb uts u

Problem Solving (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

Ka ize n

Re Te spec am t & wo rk

Where Most Lean Companies are

People and Partners (Respect, Challenge and Grow Them)

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

Process (Eliminate Waste)

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

ge

Ch all en

Philosophy (Long-term Thinking)

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

4 P Model of The Toyota WayGe Ge nch i nb uts u

Toyotas Terms

Problem Solving (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

Re Te spec am t & wo rk

People and Partners (Respect, Challenge and Grow Them)

Ka ize

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

n

Process (Eliminate Waste)

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

ge

Ch all en

Philosophy (Long-term Thinking)

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

Toyota Production System HouseBest Quality Lowest Cost Shortest Lead Time Best Safety High Morale Through shortening the production flow by eliminating waste

Just-in-TimeRight Part, Right Amount, Right Time Take Time Planning Continuous Flow Pull System Quick Changeover Integrated Logistics

People & TeamworkSelection Common Goals Ringi Decision Making Cross Trained

Jidoka(In-station Quality) Make Problems Visible Automatic Stops Andon Person Machine Separation Error Proofing In-station Quality Control Solve Root Cause of Problems (5 Whys)

Continuous Improvement Waste ReductionGenchi Genbutsu 5 Whys Eyes for Waste Problem Solving

Leveled Production (Heijunka) Stable and Standardized Processes Visual Management Toyota Way Philosophy

Deming CyclePlan

Across CompaniesPlan

CompanyPlan

GroupPlan

Act

Act

Act

Act

Project

Do

Do

Do

Do

Check

Check Check

Check

Creating Flow and PDCACreate Flow (Act)

Evaluate Results (Check)

Eliminate Waste

Surface Problems (Plan)

Counter Measures (Do)

Three Ms

Muda Waste

Mura Unevenness

Muri Overburden

Toyota Leaders ViewManagement

AN M

JIT Jidoke Kaizen Heijunka

NI

Technical Stability

L

PEOPLE

Long term Asset > Learned Skills Machinery Depreciates -> Loses Value People Appreciates -> Continue to Grow

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

CA

AG EN EM

TE

CH

T

PHILOSOPHICALPhilosophy / 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 Hierarchy

Learning EnterpriseRe

io n

Next Level of Improvement

gr es

ct

si ng

tis fa

Enabling Systems

Ne

Sa

ed

ed

Sa

Ne

ti s

g

c fa

in

re ss

Clear Expectations

t io n

Pr og

Stability

Stable, Reliable Processes

Fair and Honorable Business Relations

Alternative Toyota Decision Making Methods

Level of Involvement

Seek Individual Input, then Decide and Announce Decide and Announce

Seek Group Input, then Decide and Announce

Group Consensus, Management Approval

Group Consensus, With Full Authority

Time

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

Myth Vs. RealityMyth What TPS is Not 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

Reality What TPS Is 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 Organised, Disciplined Workplace Evolutionary

Motivation Theories & The Toyota WayInternal Motivation TheoriesMaslows Need Hierarchy

ConceptSatisfy Lower Level Needs and Move Employees up the Hierarchy toward Self Actualization. Eliminate Dissatisfiers (Hygiene Factor) and Design Work to Create Positive Satisfiers (Motivators)

Toyota ApproachJob Security, Good Pay, Safe Working Conditions satisfy Lower Level Needs Culture of Continuous Improvement supports Growth towards Self Actualization 5S, Ergonomics Programs, Visual Management, HR Policies address Hygiene Factors. Continuous Improvement, Job Rotation and Build -in Feedback Support Motivators.

Herzbergs Job Enrichment Theory

External Motivation TheoriesTaylors Scientific Management Scientifically Select, Design Standardized Jobs, Train & Reward with Money Performance relative to Standards. Reinforce Behaviour on the spot when the Behaviour Naturally Occurs Set Specific, Measurable, Achieveable Challenging Goals and Measure Progress. All Scientific Management Principles followed but at the Group Level rather than Individual Level and based on Employee Involvement Continuous flow & andon creates short-lead times for Rapid Feedback. Leaders constantly on the floor and Providing Reinforcement. Sets Goals that meet these Criteria Through Hoshin Kanri (Policy Deployment). Continuous Measurements relative to Targets.

Behaviour Modifications

Goal Setting

Coercive Vs. Enabling BureaucracySOCIAL STRUCTURECoercive Bureaucracy Rigid Rule Enforcement Extensive Written Rules and Procedures Hierarchy Controls

TECHNICAL STRUCTURE

High Bureaucracy

Enabling Bureaucracy Empowered E