The Toyota Way Chapters September 23, 2014

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1 The Toyota Way Chapters September 23, Level Out the Workload (Heijunka) Chapter 10 2 If production levels vary from day to day, there is no sense in trying to apply those other systems, because you simply cannot establish standardized work under such circumstances Fundamental Statement 3 1

2 Accumulate orders Level the schedule Reduce production lead times Reduce parts inventories Quote shorter lead times Produce greater customer satisfaction Heijunka 4 Muda Waste Mura Unevenness Muri Overburden The three M s 5 Production Level Leveling What are the costs associated with this production profile? Time Mean 6 2

3 The slower but consistent tortoise causes less waste and is much more desirable than the speedy hare that races ahead and then stops occasionally to doze. The TPS can be realized only when all workers become tortoises. Ohno 7 Unleveled Production 8 Customers usually do not buy products predictably Risk of unsold goods Use of resources is unbalanced Places an uneven demand on upstream processes What are examples of muda, mura, and muri with unleveled production? Unleveled Production Problems 9 3

4 Reduce changeover time Maintain inventory of parts on movable racks easy movement Mount necessary tools over assembly line Create and use flexible pallet Eliminate changeover time Obtaining Leveled Production 10 Leveled Production 11 Flexibility to make what the customer wants when they want it. Reduced risk of unsold goods Balanced use of labor and machines. Smoothed demand on upstream processes and the plant s suppliers. Leveled Production Benefits 12 4

5 Production Unit Finished Product Order Buffer Internal or External Customer Buffer 13 Buffers Parts Work in Progress Finished Goods The Role of Inventory 14 Examples of Service Operations Fit customer demand into a leveled schedule Establish standard times for different types of services. Heijunka in Service Operations 15 5

6 Eliminates mura Eliminates muri Facilitates eliminating muda Heijunka 16 What was the situation? What was the objective in redesign? How was this achieved? Building Aluminum Gutter Case 17 Build a Culture of Stopping to Fix Problems, to Get Quality Right the First Time (Jidoka) Chapter

7 Method to detect defects when they occur Ability to stop production Fix the problem before defect moves downstream Requirements 19 Andon Buffer Process 1 Process 2 Team Member has a problem pushes andon signal yellow light goes on Team Leader has time (within takt time) to help TM solve problem If problem is solved within that time, andon button is pushed canceling the andon signal If problem is not solved within that time, andon turns red and the process line stops Buffer allows Process 2 to continue 20 What is a poka-yoke? What examples have you seen? Poka-yoke 21 7

8 Go and see Analyze the situation Use one-piece flow and andon to surface problems Ask Why five times Do Not Overcomplicate Toyota Quality Tools Keep It Simple, Stupid 22 The Toyota Way is to build into the culture the philosophy of stopping or slowing down to get quality right the first time to enhance productivity in the long run. 23 Standardized Tasks Are the Foundation for Continuous Improvement and Employee Empowerment Chapter

9 Today s standardization is the necessary foundation on which tomorrow s will be based. If you think standardization as the best you know today, but which is to improved tomorrow you get somewhere. But if you think of standards as confining, then progress stops. Henry Ford 25 Technical Structure Low Bureaucrac High Bureaucracy Coercive Bureaucracy Rigid rule enforcement Extensive written rules and procedures Hierarchy controls Autocratic Top down control Minimum written rules and procedures Hierarchy controls Social Structure Enabling Bureaucracy Empower employees Rules and procedures as enabling tools Hierarchy supports organizational learning Organic Empowered employees Minimum rules and procedures Little hierarchy Coercive Enabling 26 Coercive Systems & Procedures Systems focus on performance standards so as to highlight poor performance Standardize the systems to minimize game playing and monitoring costs Systems should be designed so as to keep employees out of the control loop Systems are instructions to be followed, not challenged Enabling Systems & Procedures Focus on best practice methods: information on performance standards is not much use without information on best practices for achieving them Systems should allow customization to different levels of skill/experience and should guide flexible improvisation Systems should help people control their own work: help them form mental models of the system by glass box design Systems are best practice templates to be improved 27 9

10 Standards have to be specific enough to be useful guides, yet general enough to allow some flexibility The people doing the work have to improve the standards Standards