the obeya system and hoshin kanri at...

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The Obeya System and Hoshin Kanri at Toyota

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Does Everyone Understand the Direction and Priorities?

Does everyone understand this system of aligning their goals with the company?

3

Probably Not!

4

What is Hoshin Kanri?

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Ideal Work Environment for Enterprise Excellence

One Voice Leadership

Clear Roles

Engaged Staff

Abnormality ManagementContain

Chronic Problems

Problem Solving Process

Standard Processes

1 2 3 4

PRODUCT

GOAL

Highest

Customer

Satisfaction

Challenge a better way

Leader

Board

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Hoshin Planning Seeks to Align Resources and

Insure Unity of Effort

After Hoshin Kanri

Company Planning with PDCA

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Key Points

1. What is Hoshin Kanri?

2. Points of each step in Deploying Hoshin Kanri

1. Hoshin Establishment and Deployment

2. Hoshin Checks

3. Actions

3. Associate’s Role in Hoshin Kanri

4. Hoshin Kanri Process Simulation (Activity)

5. Summary

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Hoshin is Management Kaizen for BREAKTHROUGH

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Hoshin Breakthrough Vision: Bring Lexus to Kentucky!

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Overview of Toyota’s Hoshin Process

One Voice LeadershipExecutive and Senior Leaders must align their Hoshin plans before

deployment through the organization to ensure consistency of direction

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Hoshin Kanri Requires One Voice Leadership

Principles

Behaviors

One Voice Leadership

Processes & Tools

Methodology

Engaged Staff

Continuous Improvement

Consistent Principles Applied Via Every Day Behaviors

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Toyota’s Thinking on the Role of Leaders

Customers

Product

The person in the process is in the best position to improve the process

From To This… This…

Customers Product

Partners

Stakeholders

‘You do not work for me; I work for you!’ Chairman Fujio Cho to TMMK Team

Company

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The Hoshin Process

• Long term goals are achieved via a series of 12-month plans

• The Annual Hoshin process reviews the long term goals, adjusts as needed, then sets the next actionable 12 month plan

12 Month Plan

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Total Problem Solving Culture

Management led

Problem Solving

Operations Problem Solving(Staff)

Hoshin(Long Term

Strategy

and Plans)Top

Management

Challenge

Breakthrough

Improvements

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Hoshin Kanri System – Annual Hoshin System

(Activities/Targets)

Hoshin of

Dept. A

Hoshin of

Dept. B

Hoshin of

Dept. C

Company Vision and

mid to long-term

management plan etc.

Company

Hoshin(Activities/Targets)

Hoshin of

Group 2

Hoshin of

Group 3

Hoshin of

Group１


Individual

Theme

Individual

Theme

Individual

Theme

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Direction/Activities & Targets

Company

Group

Individual

Department

Company Hoshin

Department

Hoshin

Individual Priorities




Implementation Plan

Catchball

Hoshin Must Incorporate “Catchball” back and forth

between the levels?

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How is Hoshin Different?

←Achie

vem

ent /

Corp

ora

te

Constitu

tion L

evel

Time→Now Achievement Date

Line representing what

Daily Operations /Work

Kaizen can achieve

Gap (Setting Type Problems)

Reform line that is written from

corporate needs

Hoshin Kanri

Bridges the Gap

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Hoshin Kanri Process

BUSINESS

ASSESSMENT

ESTABLISH

HOSHIN

DIRECTION

DEVELOP

THE

HOSHIN

IMPLEMENT

THE

HOSHIN

ACHIEVE

RESULTS

I

II

IIIIV

V

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Hoshin Kanri Flow

Company

Hoshin

Hoshin of

Dept. ＢHoshin of

Group ２

(Activities/Targets) (Activities/Targets)

Individual

Theme

Individual

Theme


Hoshin of

Group１Hoshin of

Dept. Ａ

PLAN

Hoshin Strategies

and Deployment

Check Implementation of Hoshin Check（Mid term , end of term , etc.）

ＤO Implementation of Hoshin

P

D

C

A

P

D

C

A

P

D

C

A

P

D

C

AP

D

C

AP

D

C

A

PD

CA

PD

CA

PD

CA

PD

CA

PD

CA

Act Standardization and Reflection on Hoshin for the Following Year

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Toyoda Precepts - Basic Philosophy - Five Values

Hoshin in each division & department

Annual President

Policy

Activity / Implementation Check:

Department, Section, Group

Midterm VisionDesign and Goal of Business Model

as a whole Company

Following up：Division General Manager Check⇒President Check

Environmental

ChangeBusiness

Task

Half Year

Monthly, Weekly, Daily

Annual

Annual

3-5 Year

Continuous

Hoshin Management Flow and Timeline for Planning

and Review

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Grasping the Current Situation during Problem Identification

Dept.

Hoshin

Candidate

Kaizen issues

(from Workplace

Management

review)

Departmentmission

Department vision(with mid-longterm issues,plans)

Environmentalchanges /forecast (withbenchmarks)

Topmanagementthinking

Review result of previous year

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Recognize

Strengths,

Weakness,

Opportunities and

Threats

Determine the

Current State of

Performance

against Objectives

Define the

Required and/or

Desired State

(Future State

Objective)

Envision Your Ideal

State

Select and

Prioritize

Breakthrough

Objectives

And Targets

Create Flight Plan

and Allocate

Resources; Define

Priorities of

Support

Create a Deployment

Plan

Chain of

Responsibility and

Communication

Loop

Define how you

will Manage the

Progress of the

Plan

Annual Review:

Reflection and

Learning Points

Review Plan

Progress

Mid-year

Quarterly

Monthly

Confirm and

Implement Plan:

A3 Report

How will you

Check?

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SWOT Analysis of Hoshin Missions

S-O: Pursue opportunities

that are a good fit to your

strengths

W-O: Overcome

weaknesses to pursue

opportunities

S-T: Identify ways to use

strengths to reduce

vulnerability

W-T: Establish a defensive

plan to minimize threats

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Critical Annual Priorities

• Which processes will be impacted by the Critical Few?

• What will be changed in these processes to achieve the goals?

Business Process

Business Process

CAP

CAP

CAP

Breakthrough Objective

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Now, It’s Your

Turn

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Example of Hoshin Breakdown

Maximize Effectiveness

of TPS & TQMPresident

Executive

Dept.

Manager

Target

Direction/

Activity Target＝

TargetDirection/

Activity

Improve Kaizen Activity

Improve Employee Ability

Group

Leader ＝ TargetDirection/

Activity

Direction/

ActivityMember

Level-up Employee Training

1. Conduct Needs Assessment

2. Identify Skill Gap

3. Develop Training

4. Conduct Training

etc..

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Setting Hoshin Items

Expressions that are easily understood are used for

specific procedures.

(1) Why “Purpose”

(2) What “Target Problem”

(3) How “Method”

Note：Do not use ambiguous expressions.

NG: Enhance the education curriculum for different ranks.

Example

OK: Promote the internalization of shared values (why), by

reviewing the education curriculum for different levels

(what) based on trainee and management needs (how).

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Setting Hoshin Targets

When Issues are solved, exactly how things will be changed should be clarified.(1) What “Evaluation Standard

/Performance Indicator”

(2) How Much “Target Level”

(3) When “Deadline for Accomplishment”

Perspective on Setting Targets

Review

education

curriculum in

order to share

values

Issues

A.Amount Reviewed

B. Trainee Eval.

C.Manager Eval.

Evaluation Standard

A.% of Courses Reviewed

B. Trainee Survey Eval. Score

C.Manager Survey Eval. Score

Performance Indicators

Example of What:

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What Should You Measure? Only the Most Important

1. Define what must we improve Voice of the Business: What must we improve for our stakeholders and shareholders?

Are we part of the growth plan for the organization?

Voice of the External Customer: If we had your Top 5 Customers here, right now, what would they say you need to improve to gain more of their business? How would they measure these improvements?

Voice of our Operation: People, Processes, Performance?

2. Set Targets “State what you really need to accomplish without prejudice”

3. Prioritize Measures: Top Five/Hot Five:

“If you fail these measures, will you will be fired?”

-Takashi Tanaka

4. Catch-ball – Determine who will lead. Ask: How can we? What can we do?

5. Check alignment: Tie in Company Hoshin to Plant Hoshin to Shop-floor

Hoshin: Set SQDCP-HRD KPI

6. Manage Progress: How will you check and mentor? How often?

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Hoshin Planning

WHAT :

Target Problem

WHERE :

Which departments

WHAT : Evaluation Standard

/Performance Indicators

HOW MUCH : Target Level

WHEN :

Deadline for Accomplishment

Targ

ets

WHY :

Purposes

WHO :

Person

ResponsibleWHEN :

Implementation Plan

HOW :

Measure/Method

Hosh

in Ite

ms

Hoshin

Plan

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Example of a Hoshin Plan

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EX. Hoshin A3 to Improve Productivity for Mold Dept.

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Company

Group

Individual

Department

Company Hoshin

Department

Hoshin

Individual Priorities




Implementation Plan

Catchball

Hoshin Must Incorporate “Catchball” back and forth

between the levels?

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Beware of “Tunnel” Management

Company Hoshin

Department Hoshin

Group Hoshin

IndividualHuman

DevelopmentHuman

Development

Human Development

There is a danger that orders will just be

passed on down the line without any idea

for specific actions.

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The Purpose of Hoshin Checks

Purposes of Checks:

To turn over the Kanri Wheel (ＰＤＣＡ)

Make Corrections on the Implementation Plan for each Theme and Set New Action Plan.

Grasp Kaizen Issues at the Management level that include Establishment of Hoshin and Deployment Methods

Check Points:

Check not only results, but also processes.

Check not only implementation processes for each theme, but also Workplace Management processes.

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Rapidly Turning Over The Check Cycle

Check Results

Rapidly turning over the check cycle and immediately taking Action is Important

Check results on Monthly,

Quarterly, Half Yearly, Yearly for

company and department

＋

・Grasping the gap between the daily plan and actual performance

・Analyzing the gap causes and clarification of actions to be taken the

following day

Process Management (Action)

Day Week

Company

Department ○

Group ○ ○

Individual ○ ○

Month6

monthsYear

○ ○ ○

○

○

○

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Visual Management for Hoshin Check

Visualization of progress

situation

Awareness sharing of

issues

Quick

action

Example of Visual

Management

1. Numerical

presentation

2. Numerical data

compiled into

graphs.

3. Qualitative data

color coded and

progress

evaluated

0

20

40

60

Jan. Feb. Mar. Apr.

Number of widgets produced

Progress study start check confirm delay

Sticker ● ● ● ● ●

Theme PIC April May June

Multi-processing

through the

creation of

widget pro-

cessing jig

Tim

● ● ●

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Hoshin Evaluation Format

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Example of Hoshin Plan

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Ex. Department Hoshin in Support of Company Hoshin

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Things to Keep in Mind about Actions

Check

Satisfied Points

Standardization

Unsatisfied Points

Recurrence Prevention

and further Kaizens

Action

Hoshin

Implementation (Do)

Hoshin

Establishment and

Deployment (Plan)

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Orientation

• Carry on in principle;

standardize highly effective

processes and

• Review target setting method and

resource allocation method

• Review current methods• Review the importance of theme

• Standardize processes and

transition to daily operation

• Bring out issues to achieve an even

higher target level

Strategy Implementation LevelHighLow

Targ

et A

chie

vem

ent L

evel

Low

Hig

h

• Review activities

• Target Setting Review

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The Hoshin Distillation Process

Define 25% Market

Space

Understand VOC

What Constitutes

Breakthrough?

Define Competitors

Understand

Strengths &

Weaknesses

THE CRITICAL FEW!

Critical Objective #1




Critical Objective #5Idea

Focus!

Owner: Date: Feb 12, 2009

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

a. Reduce # of I/B status calls by 35%.

b. Reduce I/B work content by 25%.

c. Reduce abandonment rate by __%.

Start Target

Week of:

EDM, payment and ISO work content reduction will be pursued as part of the 60 day quality "Blitz." See relevant A3 report

for detail.

6. Countermeasures/Plan

7. Effects Confirmation

8. Follow-up Action

2. Background

1. Theme: Westborough capacity is constrained due to seasonal and weekly demand variation and the related work

content. Inbound status calls comprise a significant portion of total claim work content.

Expansion from single pilot cell to eight additional cells within Westborough operations (initial deployment) was conducted

during October and November (pre-Thanksgiving). Post-Thanksgiving weather driven claim volume, combined with

seasonal FTO requirements and learning curve challenges, as well as the addition of FNOL demand (previously handled

within the call centers) have generated capacity issues. The overcapacity situation has generated increased status calls thus

further straining resources and resulting in high abandonment rates.

3. Current Condition

5. Root Cause Analysis (Inbound Status Calls)

4. Target

WhoWhat

I/B Callers

51%

24%

14%

7% 4%

Insured Shop Claimant

3P Carrier Rental Co.

I/B Call Distribution19%

15%

14%12%

11%

6%

6%

5%4%

4% 4%

Other App Sched/ReschedPmt Info Rental IssueLiab Decision App IssuesSupplement Status/Next StepsPolicy Info SettlementFirst Call

Daily Demand Variation

& Staffing Surplus/(Shortfall)

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Monday Tuesday Wednesday Thursday Friday

% FNOLs % I/B Status Calls

Average Work Content/Claim

0 5 10 15 20

FNOL

I/B

Outbound Calls

EXT In Calls

COA

Payments

EDM's

ISO

@3.4 I/B per FNOL

Include:

DTP, appraisal kaizen, supplements

kaizen, etc.

A3

A3 Diagram

Idea

Idea

Idea

Idea

Idea

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Key Elements of Hoshin Deployment

Vision

3-5 Year

Breakthrough

Objectives

Critical

Projects/

Activities

Annual

Improvement

Priorities

Deploy

Throughout

Organization

Implement

Disciplined

Monthly

Review

Annual

Review

Lean Tools

Critical to Success!

Top Level Planning

Team Development& Ownership

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Deploying Policies at Toyota

45

CEO/COO

Mgmt “Councils”

Division

Plant

Department or Section

Work Group or Team Members

Policy

Policy Policy

Policy Policy Policy

A3 strategies

Action plans

Five-year & Annual corporate policies

People, Cost, NPD, Quality etc.

200+ Divisions

PD

AC

PD

AC

PD

AC

PD

AC

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Catch Ball Process Steps

• Level II

• Review Level III A3’s, matrices, and bowling charts

• Modify/refine level III and II documents

• Approve red-yellow-green

• conditions for each project

• Level I

• Review Level II A3’s and matrices

• Modify/refine level II and I documents

• Create visual “Line of Site” charts for each Level III and integrate into management standard work

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Line of Site Exercise

Plant Business Plan

Department Business Plan

Section KPI’s and Standards

Individual Responsibilities

Think of your responsibilities in this upward cascade.

Your direct responsibility is your cost center or section, which supports your department, which supports the Plant Business Plan.

Are you aligning your responsibilities properly?

In other words is what your doing on a daily basis “value added” to the company’s goals?

You must establish and share the direction you are heading in!

Without a plan we keep covering old territory!

Company Plan –Values and Principles

KPI=Key Performance Indicators' – S, Q,D C,

HRD

MACRO vs. MICROPDCA Thinking–What does that

mean?

Micro Level – You!

Macro Level – Company

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Summary of Hoshin Activity

Vision and Strategy of Company

Activation of workplaces,

Human Resource Development

Daily Management

Hoshin Kanri

Top’s will is permeated

throughout the company

Positioning and the role

of the business

in their charge of

each post become

clear.

・The quality of business and the level of management are

improved and then human resource are developed.

・Workplaces are activated by good communication.

By PDCA being cultured, important problems are solved & business objectives can be attained certainly & effectively.

49

Overview of Toyota

Shop-Floor Leadership

And

Ideal Daily Operations Management

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If, starting today, you could only hire your future leaders by promoting from within?

What if all future senior and executive leaders had to come only from an entry associate or supervisor?

How would that change your approach to Leader and People development?

It would fundamentally change EVERYTHING!

Your very management system could no longer be just about the numbers…could it?

What if?

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Floor Management Development System

Management Roles

MANAGEMENT

PROCESS RESULT

PROCESS

ACTIVITY ACTION

EXECUTIVE MANAGEMENT

SENIOR MANAGER

PROCESS MANAGER

PROCESS MEMBER

OPERATIONS MANAGER

AREA MANAGER

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FMDS is a Comprehensive System that aligns Floor Management and Human Resource Development activities to achieve Company Targets and Support the Succession Pipeline.

• FMDS ensures foundations skills are in place for Ideal Daily Work, and

• Aligns Daily Shop-Floor Activities with Hoshin goals and objectives.

• FMDS Visualizes Shop-Floor Management and Leader Development through:

Visualization of Gap to Standard

Promote Two-way Communication

Defines and Develops Roles and Responsibilities for all members

Supports Toyota’s On-the-Job Development for all members

FMDS is ingrains the Toyota Way Culture into the Managing Structures of FMDS

Understanding FMDS – Floor Management Development System

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Based on Deloitte’s research on leadership,* some of the key steps organizations can take into consideration when planning and implementing leadership development programs include:

1. Aligning leadership strategy with business strategy in order to measure individual and organization success consistently

2. Creating a clear leadership capability framework so the organization has a defined picture of what a future senior leader needs to do well

3. Recognizing that leadership potential is different from current performance—and learning how to spot and assess for potential using objective criteria

4. Putting decision rights and governance in place for developmental job moves by high-potential individuals

5. Creating high-impact programs to accelerate on-the-job development and the formation of critical support networks

6. Ensuring senior leaders are setting the right example, including being “hands-on” in leadership development programs

* Source: Deloitte’s Leadership by design: An architecture to build leadership in organizations, Deloitte Consulting, 2011.

Leadership by Design is the Toyota Way

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Ideal Daily Management Process by Management Level

Shop Floor Leadership and the

Ideal Daily Management Process

Manager

Secure

Conditions for

Ideal

Production

Production

Management

Hoshin

Mgmt

Strategic

Activity

Abnormality

Management

Follow-up

Coach, &

Communicate

Asst.

Manager

Secure

Conditions for

Ideal

Production

Production Management Abnormality

Management

Support

Group Leader

and Mgr

Group

Leader

Ensure Basic

of TPS

Secure

conditions for

Ideal

Production

4M Change

Point

Management

Standardized

work

Management

Abnormality

Control

Follow-up

Team

Leader

Secure Pre-

Conditions for

Ideal

Production

Maintain

Ideal

Production

Ensure

Standardized

Work

Three Pillar

Mgmt

Abnormality

Control

Support

Group Leader

and Team

PLAN DO CHECK ACT

ProcessAlign Ideal

Processes

Determine

Knowledge

and Skill

Practice Role

Skill with OJD

Assess Counter-

measure for

Problems

Ro

le R

ela

tio

nsh

ip

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Managers and Assistant Managers:

• Quickly see how the groups are performing

• Coach Group and Team Leaders in the Business Leadership through Hoshin

• Support Group Leader activity with necessary resources

• Strengthen the groups’ commitment and pride as they strive to achieve shared goals

Group Leaders and Supervisors:

• Focus their management efforts and problem solving activities

• Play a key role in developing Team Leaders and Team Members

• Less reactive and more proactive

• Visually show the need for Support

FMDS as a People and Leader Platform

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Team Leaders

• Help their teams improve skill by working with team members to solve team problems

• Develop their own skills as a coach and leader while they manage daily activities through the team leader process and 3 Pillar Management

Team Members:

• Can see Group/Area/Shift performance

• Understand how important their job is to the Company’s success

• Have access to information to help solve problems

• Improve team member knowledge and skill level

• Can see how their job impacts Company Success

FMDS as a People and Leader Platform

57

Quote:

“From a Leadership perspective, we use our FMDS and Three Pillar Boards and I try to be a leader from that perspective - of always challenging our Group Leaders and Assistant Managers to think of the next level.

How do we get to the next level? How do we achieve the things that we do? The way I do that, I try to provide the vision for them and let them create the road map.

Jeff Hurst, Manager, Powertrain, TMMK

Leadership, Hoshin, FMDS and Three Pillar Management

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Overview of Toyota Hoshin Management Connection to


59

• FMDS Uses Hoshin to Set Direction linked to the Company Hoshin

• Drives Activity through Problem Solving (Toyota Business Practice ) and Kaizen

• Engages all Levels of the team through Roll Specific Actions

FMDS - A Leadership Development and Management Tool

60

Hoshin Process and FMDS Activity

Company Hoshin

Main KPISub

KPI

Plant 1

Sub

KPI

Plant 2

Sub

KPI

Plant 3

Plant 1 Hoshin

Main KPISub

KPI

GM 1

Sub

KPI

GM 2

Sub

KPI

GM 3

Department/Section

Hoshin

Main KPISub

KPI

MGR 1

Sub

KPI

MGR 2

Sub

KPI

MGR 3

Group FMDS

Main KPISub

KPI

Factor 1

Sub

KPI

Factor 2

Sub

KPI

Factor 3

Process

KPI

Activity

Process

KPI

Activity

Process

KPI

Activity

Activity

Result

Activity

Result

Activity

Result

Toyota (TIEM)

Hoshin Vision

K21

“Breakthrough”

Initiatives

Only

Toyota (TIEM)

Annual Hoshin

FY ‘18 Toyota (TIEM)

Hoshin

Management

By Department/

Section“A3 Management”

Toyota Hoshin

Management

By Shift through

FMDS

61

Managing at the Process Level

1. Upper Hoshin Achieving Activity

2. Vision Achieving Activity

3. Daily Control; Sustainment Management Activity


Company Hoshin

Main KPISub

KPI

Plant 1

Sub

KPI

Plant 2

Sub

KPI

Plant 3

Plant 1 Hoshin

Main KPISub

KPI

GM 1

Sub

KPI

GM 2

Sub

KPI

GM 3

Department/Section

Hoshin

Main KPISub

KPI

MGR 1

Sub

KPI

MGR 2

Sub

KPI

MGR 3

Group FMDS

Main KPISub

KPI

Factor 1

Sub

KPI

Factor 2

Sub

KPI

Factor 3

Process

KPI

Activity

Process

KPI

Activity

Process

KPI

Activity

Activity

Result

Activity

Result

Activity

Result

62

The General Manager establishes the Plant vision through Hoshin and communicates targets and expectations


Company Hoshin

Main KPISub

KPI

Plant 1

Sub

KPI

Plant 2

Sub

KPI

Plant 3

Plant 1 Hoshin

Main KPISub

KPI

GM 1

Sub

KPI

GM 2

Sub

KPI

GM 3

Department/Section

Hoshin

Main KPISub

KPI

MGR 1

Sub

KPI

MGR 2

Sub

KPI

MGR 3

Group FMDS

Main KPISub

KPI

Factor 1

Sub

KPI

Factor 2

Sub

KPI

Factor 3

Process

KPI

Activity

Process

KPI

Activity

Process

KPI

Activity

Activity

Result

Activity

Result

Activity

Result

63

Hoshin Kanri Connection at Every level

Toyota Hoshin Management

By Department – Total Department Engagement

Weekly (VP); Daily (GM)

64

The Department or Section Manager gathers direction from upper level Hoshins and communicates to Section to create Section Hoshin


Company Hoshin

Main KPISub

KPI

Plant 1

Sub

KPI

Plant 2

Sub

KPI

Plant 3

Plant 1 Hoshin

Main KPISub

KPI

GM 1

Sub

KPI

GM 2

Sub

KPI

GM 3

Department/Section

Hoshin

Main KPISub

KPI

MGR 1

Sub

KPI

MGR 2

Sub

KPI

MGR 3

Group FMDS

Main KPISub

KPI

Factor 1

Sub

KPI

Factor 2

Sub

KPI

Factor 3

Process

KPI

Activity

Process

KPI

Activity

Process

KPI

Activity

Activity

Result

Activity

Result

Activity

ResultThe Assistant Mgr understands Goals, Plans Actions to support Mgr Hoshin and Communicates to Groups or Shift Supervisors

65

Group Leaders/Supervisors Grasp the Area Plan, Plans Group actions to support Hoshin Targets, and Communicates to Group Members targets and collaborates to develop Sub-KPI and Process Activities


Company Hoshin

Main KPISub

KPI

Plant 1

Sub

KPI

Plant 2

Sub

KPI

Plant 3

Plant 1 Hoshin

Main KPISub

KPI

GM 1

Sub

KPI

GM 2

Sub

KPI

GM 3

Department/Section

Hoshin

Main KPI

Sub

KPI

MGR 1

Sub

KPI

MGR 2

Sub

KPI

MGR 3

Group FMDS

Main KPISub

KPI

Factor 1

Sub

KPI

Factor 2

Sub

KPI

Factor 3

Process

KPI

Activity

Process

KPI

Activity

Process

KPI

Activity

Activity

Result

Activity

Result

Activity

Result

Team Leaders implement group plan components, secure resources, supports team-members and Group Leaders through standards and suggest improvement activities to achieve targets

Team members follow implementation plan and standards, suggest improvement activities and participate in problem solving

66

THE FIVE MAIN MISSIONS OF

FMDS SHOP-FLOOR LEADERSHIP

FMDS and the Five Mission of Shop-Floor Management

Safety Quality Productivity Cost

Human

Resource

Development

The Management Activities

Of the Shop-Floor Group

Actions of the Shop-floor Leadership Group are

responsible for the safety of members and ensuring

the quality, volume, cost, and delivery of the product

created as well as the development of all members

67

THE FIVE MAIN MISSIONS OF

FMDS SHOP-FLOOR LEADERSHIP

FMDS Management Review Cadence

Safety Quality Productivity Cost

Human

Resource

Development

The

1st Week

Of the

Month

The

2nd Week

Of the

Month

The

3rd Week

Of the

Month

The

4th Week

of the

Month

Every

Other

Friday

The Management Activities

Of the Shop-Floor Group

5S is the focus if there is a 5th Week in the Month

68

FMDS Board Layout StandardsHoshin

And the

Five Missions

Safety

Hoshin

Quality

Hoshin

Productivity

Hoshin

Cost

Hoshin

Human

Resource

Development

Hoshin

PLAN

Main KPI

• Main KPI are derived from Sub-KPI’s one Management Level Up

• Main KPI’s Directly linked to the Annual Hoshin

• Visualize Monthly and Historical Trend

• Clear Target is Specified and Visual

• Color Coded/Symbol judgement of Current Status

PLAN

Sub-KPI’s

& Process

Sub-KPI’s

• Breakdown of Main KPI to Pro-active and Reactive Sub-KPI’s

• Clear Visual Targets and Visual Management

• Spikes annotated using handwritten “call-out bubbles”

• Measures daily activity sub-KPI’s to the Process level to support Sub-KPIs

PLAN

Process

Activities

• Evidence of GTS-PDCA Process and Thinking

• Breakdown of Gaps (Issues) that effect Sub-KPI Trends

• Handwritten Concrete Actions to tackle Gaps

• Timetable and Status of Progress

• Ownership and Teamwork

DO

Results

Tracking

• Shows Results tracking from Activities

• Handwritten using QC Tools/Charts

• Logical Connection to Sub-KPI’s

• Did we achieve the target? What was the Result?CHECK

History

Binders

• Toyota Business Practice (Problem Solving Process) supporting documents

• History of Process activities and Results (greater than 90 Days)

• A3, A3, Kaizen Sheet, etc.

• Used to share lessons learned and reflection as part of Yokoten

A

C

T

FM

DS

RE

VIE

W

69

All Support Groups attend the FMDS Review, Including:

• Section or Department Manager*

• Assistant Manager

• All Plant Group Leaders/Supervisors

• Mission Leader (e.g. Safety Team Leader on Safety Review)

• Process Engineering

• Quality Engineering

• Occupational Safety

• Human Resource Representative for Group

Who Attends the FMDS Five Mission Review?

70

Toyota Business Practice (TBP – 8 Step Problem Solving A3 Process) and Quality Circle Leadership and Participation are activity drivers for Leader and People Development

Quality Circle Leadership is the Original Leader development platform of Toyota

Production Team Leaders must Lead at least one TBP or Quality Circle Activity per year

The Group FMDS Board is the Source for TBP, Safety Circle, Quality Circle or Kaizen Circle Activity for Team Leaders to Lead

Some Focus activities may be the focus of a Manager Led or Cross Functional Problem Solving Activity (aka Jishuken)

FMDS, Toyota Business Practice and Leader Development

71

“When I think of FMDS and Three Pillar, it’s REALY TBP (Toyota Business Practice). It’s all about how you get from a large, vague problem to pinpoint the exact issue that you can work on.

When my Team Leaders are looking for a TBP to work on, I say ‘Let’s Go to the FMDS Board.”

– Jeremiah Duncan, V6 Assembly Group Leader, TMMK Powertrain

FMDS, Three Pillar Toyota Business Practice

and Leadership Development

72

The Role of the Production Group Leader

And


73

Supervisor Ideal Daily Management Process

• The Group Leader Role is supported by The Group

Leader Management Process (GLMP).

• The GLMP Process is made up of supporting

management, Leadership and People Development

Routines is Cycled before during and after the Work Shift.

Ensure the Basics

Ensure Operational Imperatives

Secure Conditions for

Ideal Production

Manage 5M Change Points

Manage Standardized

Work

Control Abnormality

Follow-up Cycle (Observe to verify and adjust)

PDCA and Communicate (Observe to verify and adjust)

74

Top portion is daily routines and checks aligned with shop-floor leadership roles.

Problem activity is connect to Group Leader FMDS Board

All problems that are found through:

• Weak Point Management

• audits

• operator suggestion,

• scrap or rework events,

• premature tool failure

Are logged on one set of sheets divided up by the 4Ms – called “Problem Registration System”

Understanding Visual Management Boards

Ideal

Daily

Management

Activity

Proactive

Daily

Activities

Leader Routines

Aligned with Role

Problem

Activity &

Tracking

Problem

Registration

System &

Support

Documents

Counter-

measures for

Previous and

Current month

Support

Documents

75

Promote visualization to clarify and quickly grasp the situation. Information should be shared in a way that is beneficial to all.

Mieruka (Visualize or to Make Visable)

76

How Quickly Can You Understand these Visualized Charts?

77

Now, It’s Your

Turn

78

Toyota’s KPI Pyramid – Visualizing Leading Indicators

79

Start with the Hoshin Statement – Quantitative and Qualitative High Level Vision of the Dept or Section.

Main KPI’s for the FMDS Board are High Level Indicators deemed critical and Targets are derived from the Department or Section Hoshin

FMDS Safety Hoshin Example: Respect our community and create a family-like environment through ensuring mental, emotional, physical and environmental Safety.

FY 2018 Targets: Main KPI’s

Lost Time Accidents: 0%

Recordables: 0%

T/M Safety Dojo Training: 100%

100% T/M Completion of Find and Fix Safety Kaizen: 1 per month

Stimulate Team-member (T/M) involvement to support eyes for safety

and problem solving:

1. Safety Culture: Create a culture for Safety and Health Through

Leadership, Management and T/M engagement

2. Safety System: Enhance safety performance through

implementation of Safety Best Practices

3. Environmental Management: Reduce non-Safe waste through

process kaizen and segregation

Hoshin Main KPI’s

Note:

Safety

is a

Focus

80

FMDS Sub-KPI’s are Proactive and Reactive Measures that can be measured to show potential improvement to achieve Main KPI.

Sub-KPI’s are indicators that will support the overall achievement of the Main KPI and are Fact Driven

Sub-KPI’s may change quarterly and may be Direct (reactive) or Indirect (proactive)

Process Sub-KPI’s breakdown to process level

Sub-KPI’s are tracked by area by shift.

• Safety Sub-KPI Example:

• Acute Injuries Incidents

• Ergonomic Incidents

• Behavior-based

• Near Misses

• Process Related

• Workplace Organization and Layout Related

• Eyes for Safety Dojo Training Completion

Sub-KPI’s and Process Sub-KPI’s

81

FMDS Process Activities are activities at the Process Level intended to Improve the Sub-KPI’s through Countermeasure implementation as a result of Toyota Business Practice 8 Step Problem Solving Process.

There are 2 Measures of daily process activity:

1. Completion

2. Outcome

Process Activity is measured by completion status and is typically displayed on the activity board.

Just as there are 2 measurements of Activities there are also 2 types of Activities:

1. Direct: Results from problem solving a Gap to a standard, defined cause and effect, quantifiable results, and easily linked to Sub and Main KPI’s

2. Indirect Activity: Results from a broad Problem Solving activity with no specific Gap; generally Kaizen or effort to improve overall environment or culture

Process Activity Schedule

82

FMDS Process KPI’s are the Quantifiable results indicators of the process level activity intended to improve the Sub-KPI’s

The Process KPI is the measure of Outcome compared to the target set for the Activity

Process Results KPI answers the question:

• How will you Check?

• How often will you Check?

• How long will you Check? (e.g. 90 days)

• Did you achieve the desired outcome

• Do you understand both success and failure

• What did you learn?

Process Results Tracking

83

Now, It’s Your

Turn

84

• Dojo is used to train and refresher – in a “hands-on” way the leadership and management concepts of The Toyota Way, TPS, FMDS, Point Control, and 3 Pillar Management to all Leaders

• Once per Quarter, the FMDS Dojo team will audit FMDS Boards and Management Boards for Gaps.

• This Gaps are shared with Groups for Improvements

• Groups can earn Bronze, Silver, or Gold Status as they mature their FMDS and 3 Pillar Management Boards and Process

FMDS Dojo Audit

85

The Role of the Production Team Leader

And

Three Pillar Management

86

Operations Team Leader

Ideal Daily Management Process

• The Group Leader Role is supported by The Team

Leader Management Process (TLMP).

• The TLMP Process is made up of supporting

management, Leadership and People Development

Routines is Cycled before during and after the Work Shift.

Ensure the Basics

Ensure Operational Imperatives

Secure Pre-Conditions for

Ideal Production

Maintain Ideal

Production

Ensure 4 Pillar

Standardized Work

Control Abnormality

Follow-up Cycle: Support Team Members and Group Leader Throughout

PDCA and Communicate (Observe to verify and adjust)

87

Two Way Communication regarding any Change:

• Man – Manning and Line Starting Position and Rotation

• Machine – Any Change to equipment or layout

• Material – Any Change to material

• Methods – Any Change to Standardized Work

Change Point must indicate:

• Planned or Unplanned Change

• What Changed and Why (Reason for Change)

• When Change will Start

• When Change will End

Anyone affected by a Change Point must ”Buy off” on the change, risk, effect

Team Leader and Change Point Management

Change Point is Part of

“Secure Pre-Conditions for

Ideal Production” by the

G/L & T/L and is part of the

5 minute morning meeting

88

The Team Leader’s Standardized Work Management Board is the Visual Management the T/L’s STW Management Process, and includes:

• Team Leadership

• Standardized Work Charts

• Weak Points in Standardized Work

• Standardized Work Audits

• Fundamental Knowledge and Skill

• Line Balance of Work Elements

• Safety and 5S Audits

• Safety Kaizen by T/M’s

• One Point Lessons

Team Leaders are Challenged by training and getting T/M involved in performing and improving Standardized Work

3 Pillar: Standardized Work Process Management Board

Standardized Work Process Management

Board

89

The Team Leader’s Machine Care Management Board is the Visual Management of the T/L’s Management Process in support of Total Productive Maintenance Activities, and includes:

• Team Leadership

• Routine Machine Care Audits

• Operator Inspections and Care

• Weak Points in Operational

Availability of Equipment

• Machine Care Standards

• Machine Care Records

• One Point Lessons

• Machine Kaizen Activity

Team Leaders are Challenged by getting T/M involved in performing Machine Care and performing Maintenance themselves.

3 Pillar: Machine Care Management

Machin

e

Care

Kaiz

en

Machin

e

Care

One

Poin

t

Lessons

Machin

e

Care

Guid

e

Group Leaders

Team Leaders

Machine Care Process Management

Board

Daily Machine Care

Kamishibai Station

90

Assembly Point Management is the Team Leader’s Management Process in support of Quality. It includes:

• Team Leader TBP, Quality Circle and Kaizen Activities

• Customer Defect Tracking

• Quality Related Standardized Work

• Pre-control Charts

• Tool torque calibration check sheets

• Quality Check Station calibration

• Start-up/Shut-down check sheets

• Quality Check Audits

• Weak Point Management

• QA Network Activity List

• QA Network Countermeasure Focus

3 Pillar: Assembly Point Management

Assembly Point Management

Board

Team Leaders are Challenged through

leading Toyota Business Practice Problem

Solving and by getting T/M involved Quality

Circle Activities

91

In Machining and Machine intensive areas, Team Leaders must ensure skilled Team Members understand the effect of tooling on quality and equipment. Tooling Point Management is a rigorous process of care and control of tooling.

Other forms of 3 Pillar - Tooling Point Management

Tool inspection

Holder inspection

Ultrasonic wash standard

Tool set standard

Tool run out check standard

Point Angle Degree Confirmation

Point Wear, Flank Wear, Edge Wear,

Surface Wear, etc.

Abnormal Wear, Chipping,

Etc.

92

Don’ts:

• Managing Results

• Reward Lagging Indicators

• Look at FMDS as a task vs. a Management and Development Process

• Manage outside your role (e.g. Group Leaders do not manage as a Team Leader)

Do’s:

• Use FMDS and Three Pillar for Two Way Communication

• Use for Visual Abnormality Management

• Manage Activities not Results

• Practice “Go and See” for FMDS and 3 Pillar Management

• Prioritize One Mission for targeted Problem Solving while maintaining the remaining missions

• Continuously encourage, coach, and support

FMDS and Three Pillar Do’s and Don’ts

93

• The Foundation of FMDS and 3 Pillar Management is The Toyota Way and supports Toyota’s corner stone activities of Hoshin Kanri, Toyota Business Practice, On the Job Development

• FMDS is a System of Visualization for Floor Management

• FMDS is a Gateway Leader Development Platform that combats leadership development failure points by connecting leader development to real business needs and responsibility for leading and developing others

• Abnormality Management is the Toyota Management Way

• FMDS and 3 Pillar Management instill the Toyota Way Culture, daily

• Standards or Basic Rules are critical to identification of Abnormity

• Each level ins the organization has a unique role in FMDS

Summary

94

The Benefits of Implementing the Obeya System

• The Obeya promotes coordination, strategy and flexibility while leveraging the expertise and support of teammates from diverse areas.

• The Obeya promotes the Full and Effective utilization of Resources and Talents in order to reach our full potential, which is critical to a Lean Organization

• The ability to maintain Proper Problem Awareness in Real-time:• Monitor Value Creation, Flow of Value, and Opportunities for our

Customers, Partners, Stakeholders, Team-members, and our Organization.

• Listen to Team-member concerns.

• Collaborate to make discoveries, resolve problems together, accelerate leader and team-member development

• Accelerates Leader development

• Accelerates Lean Culture development and deployment

96

Focus Obeya on Problem Solving

and Burden Reduction

97

Shop Floor LeadershipDaily

“How’s Your Process”CheckAnd

PDCA Meeting

98

Burden Reduction with ”How’s Your Process”

“Without Standards, there can be no Kaizen”

An old Toyota Sensei trick would be to ask an operator, “What makes a good day for you?”

The Operator would respond with “if my machine runs well, or I did not run out of material,

etc.” Then the Toyota Sensei would ask, “Well, are you having a good day?”

1. So the Sensei would set a standard: “What makes a good day?”

2. The Operator would confirm the standard

3. The Sensei would identify the current state

4. The Operator would identify the gaps

Today, we have “How’s Your Process” Checks by Leaders

• “How’s Your Process?” Check is a engagement communication tool to connect with

Team-members on issues and re-enforce a culture of safety at and quality from each

process source.

• From just after the morning meeting until first break, Team Leaders engage each team-

member and asks “How’s Your Process?”

• Process issues are logged, prioritized and countermeasures are developed – whenever

possible – with the support of the Team-member

• Weekly, a HYP meeting is held with Management, Safety and Quality and other leaders

to report out on HYP and the effectiveness of the countermeasures implemented

99

Thank You. What are Your Questions?