the toyota way
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Learning from The ToyotaWay
Jeffrey K. LikerProfessor, Industrial and Operations Engineering
The University of Michiganand Principal, Optiprise, Inc.
BIFMA Leadership ConferenceJanuary 31, 2008
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
What is lean?• Obtaining brilliant results from brilliant
processes
• By focusing on (Jim Womack & Dan Jones):– Value– Value streams– Flow– Pull– Perfection
• By eliminating waste from all processes
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Sounds Good, so Let’sdo lean!
But how?
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Answer #1:
Eliminate waste from our processes
Lean ManufacturingPRODUCTPRODUCT
BUILT & SHIPPEDBUILT & SHIPPEDCUSTOMERCUSTOMER
ORDERORDER
Time (Shorter)
Waste
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Rapid improvementevents
Let’s hire consultants,who will run lots
of workshops
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Rapid improvementevents
• Every workshop hasgood results
• But these results areseldom sustained
• And don’t show up inthe budget
• And many managersgrumble
But…
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
The problem:
“What is important is having all theelements together as a system. It must
be practiced every day in a veryconsistent manner - not in spurts - in a
concrete way on the shop floor.”Mr. Fujio Cho
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Answer #2:Lean is a production system
CompanyPurpose
People
Lean Tools
Lean Processes
ProblemSolving
X O X O
20
LR
2020
20
OP
1
OP
3
OP
2AO
P 2B
takt time
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Lean Production Elements
CUSTOMER SATISFACTION:Quality, Lead-time, Cost, Safety
Auto-quality
Just-In-
Time
Standardized Work / Kaizen
Stability
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Implement the system
Let’s create aLean Office
to implementa system
We need to adaptTPS to our business
And have aroadmap
to implementModel lines Wall to wall stability
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Implement the system• More systematic change
• Impressive model lines and wallto wall stability
• But still disappointing budgetresults
• Hard to spread beyond modelline
• Lots of conflict between theLean Office and linemanagement
• Hard to sustain
But…
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
The problem:
“Creating a Buddha image and forgettingto inject soul into it”
Mr. Hajime ObaTPS Expert
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Answer #3:
Lean is a production system supported bymanagement behavior
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Manage for lean
Find a senseiYou can work withLet’s go to the workplace
Gemba is great teacher!
And teachchange from
The top
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Manage for lean
• Start to get real topmanagement support
• We can see budget levelresults each year
• But it’s very uneven--resultsof a few large projects
• And a constant fight: “thefrozen middle managers justdon’t get it!”
But…
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
The problem:
“Kaizen consciousness must be themindset of all employees”
Mr. Nampachi Hayashi
“The people whoperpetuate a negative,
disengaged culture maybe the leadersthemselves!”
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
What is a mindset?
Typical problems Typical solutions
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Typical lean mindset problems
Completely satisfy customers by engineering products thatsolve their usage problems
Completely satisfy customers by engineering andmanufacturing defect free products
Completely satisfy customers by offering a full product rangeat market price and renewing models frequently
Lower costs by continuously value engineering parts Lower costs by designing products fit for lean manufacturing Lower costs by assembling different products in the same
production units Lower costs by eliminating all waste in company activities
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Typical lean mindset solutions
• “Avoiding overproduction has to be built into thesystem, a difficult task.”
• “And each problem will have to be made visible, andthen tackled by every one of the workers.”
• “Visiting our factory, you will see that on one line wehave eight different types of cars, not just variations.”
• “At the start, the line keeps stopping, for example.Even when you see it, it is difficult to understand.”
Mr. Fujio Cho
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Answer #4:Lean is a system to make people think & grow
DeviationFromStandard
Problem Solving Learn &
Grow
1 2 38
49
510 11
6 712 13 14
Tighten Standard
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
The sensei teach us that
Lean is not applying lean tools or systemsto each process
butDeveloping a kaizen mindset in every
employee
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
TPS and Toyota Way
Make the production line visible
Improve management standards
Reveal problems at all times
Solve problems one by one
How?
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Measuring and understandingperformance
CUSTOMER SATISFACTION:Quality, Lead-time, Cost, Safety
Measurelocal performance
Express gapagainst target:
best day, hour, cycle
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Visualizing problems:quality
CUSTOMER SATISFACTION:Quality, Lead-time, Cost, Safety
Auto-quality
Stop and notifyany abnormality, now!
Workers stop line for every abnormality
and team leaders respond
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Visualizing problems:overproduction
CUSTOMER SATISFACTION:Quality, Lead-time, Cost, Safety
Auto-quality
Just-In-
Time
One piece flow
At Takt Time
With a PULL system
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Analyzing and solvingproblems
CUSTOMER SATISFACTION:Quality, Lead-time, Cost, Safety
Auto-quality
Just-In-
Time
Standardized Work / Kaizen
Work is specifiedin detail
And carried outconsistently
Ask why 5 timeson any
problem
And experimentto try new things
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Following a learning cycle
CUSTOMER SATISFACTION:Quality, Lead-time, Cost, Safety
Auto-quality
Just-In-
Time
Standardized Work / Kaizen
Stability
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Typical ImprovementOpportunities Available
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Improvement Approaches ofTypical Companies
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Toyota Leverages Opportunitiesat all Levels
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Make people think:• By going to the workplace
• Observing operations with them
• Showing typical problems
• Outlining typical solutions
“We were asked to stand in a circle for 1 week and come up with 240 improvements andImplement most of them 140.”
--Toyota Japan TPS Training
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Role of management
To keep kaizen going
Give people problems to solve and follow up
Look at problems revealed day to day, hour by hour
Top management must go to the workplace
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Role of lean coach• Use the lean tools to
teach managers andtheir teams
• To visualize problems
• Experiment
• And solve them
Teamwork!
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
To develop employees byproblem solving
P D
C A
Plan - Do - Check - Act
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Toyota Mentor-MenteeChain
•Goals Targets, Metrics•Dialogue•Go and see•Open Questions•No Blame•PDCA•5 Why?•Regular Checks against Plan
What Data?What’s theProblem?What can youdo next?
All practice the same basic patterns ofProblem solving, dialogue, and mentoring
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Answer #5:
Lean is a business model
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Not a production tactic,but a business strategy
Challenge!
What do we needto achieve for
Success?
Let’s get agreementand plans at all
levels
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Hoshin Kanri
Not a production tactic,but a business strategy
Workplace Visual Control
catchball Hansei
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Connecting Hoshin and FloorManagement System
1. What do we need to do?(Company Department Group)
2. How should we do it? (Process)
3. How are we doing? (Results)
HoshinObjectives
KPI’s
DailyActivities
Main KPISub-KPI
Process KPI
Floor Mgmt
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Team Board for Floor Management Development System
Learning from the ToyotaWay
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
The lean journey
Eliminate waste
Implement system
Management behavior
Business model
Lean culture
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
The lean journey startswith oneself
• How can I learn to identify waste?
• How can I become a teacher of waste elimination?
“Here’s your school lesson for today. Don’t listen to your teachers, justwatch what they do.”
Woody Allen to his niece in Anne Hall
“You must become the change you want to see.”Ghandi
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
To help others with the journey• Are people clear on their own
processes, do they follow their ownstandards?
• Are they focusing on the rightproblems?
• Are they solving them following ourvalues and principles?
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
“Something is wrong if employees do notlook around each day, find things thatare tedious or boring, and then rewrite
the procedures. Even last month’smanual should be out of date.”
Mr. Taiichi Ohno
To develop kaizen consciousness
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
The 4 PsKey Elements of ‘The Toyota Way’
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
Key Points for ImplementingLean System
• Process improvement and peopledevelopment must go hand in hand
• You must be patient for people development– Keep your eyes open to the growth and
strengthening of people (culture change)– Push when procrastination is preventing the
growth of people (avoiding action)– Provide necessary challenges and support for
people development!
© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)
““A long journey that needs commitment,A long journey that needs commitment,patience, long-term thinking, positivepatience, long-term thinking, positivemindset and attitude, and continuousmindset and attitude, and continuousimprovement which are merged togetherimprovement which are merged togetheras operational excellence and as a strategicas operational excellence and as a strategicweapon.weapon.””
LetLet’’s start the journey and Do our Best!s start the journey and Do our Best!
Lean isLean is……
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