Glenn Uminger. Glenn Uminger
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1 Glenn Uminger Glenn Uminger Director of the, University of Kentucky Former General Manager, TPS and Project Planning, Toyota Motor Manufacturing, Kentucky 1
2 University of Kentucky In Partnership with Toyota 2013 Lean Accounting Summit Glenn Uminger Toyota Executive in Residence Institute of Research for Technology Development College of Engineering University of Kentucky Copyright University of Kentucky/Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA) All Rights Reserved Lean Enterprise Excellence Model Consistent Principles and Behaviors Standard Processes Continuous Improvement liers Supp Operations CUSTOMER SATISFACTION Perfect Quality On Time Best Value 4 2
3 Lean Enterprise Excellence Model Consistent Principles and Behaviors Standard Processes Continuous Improvement liers Supp Operations CUSTOMER SATISFACTION Perfect Quality On Time Best Value 5 Leadership Thinking Ways The person in the process is in the best position to improve the process Customers and Supplier Customers and Supplier 6 3
4 Toyota Production System Foundation Goals/ Desired Outcomes Philosophies J I D O K A Most Essential Element Kaizen Flexible, Motivated Employees Maintenance of Standards Standardization Critical Activities For the Customer For the Employees For the Company Highest Quality Lowest Cost Shortest Lead-Time Job Satisfaction Job Security Consistent Income J I T Market Flexibility Profit (from Cost Reduction) Customer First Respect for Humanity Elimination of Waste 7 Standard Process for All Types of Work Production Environment I own my process. I will contain and correct all abnormal. I will continue to improve. Non-Production Environment 8 4
5 Work Environment Shift All Team Members Perform BOTH Normal & Abnormal Work Product Get It Done SHIFT Team Leader Writes Standardized Work Handles Abnormal Work Role Standards Team Member Performs Normal Work Identifies Abnormal Work T/L T/M Abnormal Product SW SW SW SW Systematic Waste Elimination T/Ms do both normal & abnormal work Problems (Waste) are not clearly visible to either management or workers Therefore waste continues Make abnormal conditions visible Quick containment of all abnormal Use facts and data to ID chronic problems Problem solve to eliminate waste Standardize to prevent waste from returning Problem Solving Practice It s a chronic problem and I can fix it myself. It s a chronic problem, but I need help! 5
6 Process Improvement Activity Find a Problem Highest Priority Problem Solving Process Fix the Problem Find the Root Cause, then Countermeasure Keep the Problem from coming back Confirm Effective Countermeasures Lean Focus: Recurrence Prevention Primary Culture Shift Commitment All levels of the organization commit to practice the company s systematic Problem Solving Process Leadership Management Team Member 6
7 What is a problem? Problems are the path toward improvement Positive Problem-solving Environment No one has more trouble than the person who claims to have no trouble. (Having no problems is the biggest problem of all.) by Taiichi Ohno Toyota Chairman Mutual Understanding of Needs Interdependence of Company & Team Member = Mutual TRUST and Success Expectations: Continuous Improvement, Competitiveness, Productivity, Flexibility Profit Interactive Two-Way Communications Expectations: Improved Pay / Benefits, Improved & Safe Work Environment, Stable Employment, Reduced Burden, Family Balance Company Focus Team Member A Balanced System 14 7
8 People Drive Team Member Lifecycle New T/M Recruiting Team Member Performance Continuous Succession & Hiring Orientation Management Development Planning Team members trained and motivated to fulfill their role at all levels and practice continuous improvement 15 Lean Enterprise Excellence Operating Environment 2 Problem Solving Process Quick Fixes Improve Processes chronic 3 Abnormality Management PRODUC T Standard Processes GOAL 1 Highest Customer Satisfaction Engaged Staff 5 Clear Roles 6 Management Support Culture 7 8
9 Lean Implementation Strategy START Model Area Lean Enterprise Excellence Model Consistent Principles and Behaviors Standard Processes Continuous Improvement liers Supp Operations CUSTOMER SATISFACTION Perfect Quality On Time Best Value 18 9
10 Lean Accounting Approach 1. Deeply grasp your Enterprise capabilities and practices. 2. Identify your Value Added to Enterprise goals, within the current capabilities and practices. 3. Ensure most effective and efficient application of People, Processes, and Systems to deliver your Value Added. 4. Influence Enterprise change to improve Lean culture, capabilities and practices. 19?? What are Costs?? Costs are a common denominator to measure the RESULT of Enterprise Activities Thus, focus on strengthening Enterprise capabilities via People, Process and Systems is the key to minimizing future Costs! 20 10
11 ?? When are Costs Committed?? Most Costs are committed when designing the product /service and processes. Material, Labor, Depreciation mostly fixed before manufacturing or delivering the service. Thus the standard Product and Process Design processes are critical to Cost Mgmt. 21?? Impact of Operations?? Operations are executing in a box pre loaded with Costs, and important to execute with excellent processes to avoid all wastes. Safety, Quality, Efficiencies, Controllable Costs. Operations are the front line to satisfy the customer: Perfect Quality, 100% on time, no loss of controllable costs! Operations must be on the team for next generation Product and Process design! 22 11
12 Value Added Assessment Product or Service Customer KPI Process Standardized? Yes or No Top Priority for Improvement Lean: Continuing Challenge Towards Excellence Copyright University of Kentucky/Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA) All Rights Reserved Revised 10/13 12
University of Kentucky
University of Kentucky True Lean Human Resources Management: the People Side of Lean Institute of Research for Technology Development College of Engineering University of Kentucky Copyright 1994-2011 University
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