Leadership and the Toyota Production System
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1 AME 2002 Conference Leadership and the Toyota Production System Hajime Ohba Cindy Kuhlman-Voss, Inc
2 , Inc Toyota Supplier Support Center () Formed 1992 in response to increasing interest in the Toyota Production System or TPS
3 , Inc, Inc. After 10 years experience in supporting North American companies to implement TPS,, Inc has been formed in May Our focus is to work with companies outside of Toyota who have an interest in TPS and continue Toyota s s contribution to society
4 , Inc Why did this result happen? What is the principle? Objective: To assist North American companies in implementing their own version of TPS Method: Create learning through trying and reflecting
5 Industries We Have Worked With: Number of Projects Present /92 12/92 06/93 12/93 06/94 12/94 06/95 12/95 06/96 12/96 06/97 12/97 06/98 09/98 07/00 08/01 Products Air Bags Air Ducts Appliance Trim Body Panels Engine Components Exhaust Sys. Floor Mats Flywheels Food Mfg. Gas Springs Glass Heating/Cooling Sys. Hospital Beds Learning Aids for Blind Leather Luggage Arm Office Furniture Pneumatic Fasteners Powertrain Components Remanufactured Alternators Seat Recliner Components Shock Absorbers/Struts Structural Components Temp./Pressure Sensors Toys Trailer Towing Prod. Trim (Int. Ext.; Door) Weather Stripping Winches Windshield Wipers Processes Assembly Casting Forging Machining Plastic Molding Sewing Stamping Tanning, Cutting Welding Wire Forming
6 , Inc. Characteristics of Successful TPS Companies Plant First philosophy: Learn TPS on the shop floor Enthusiasm for improvement Persistence Willing to start small, learn through trial and error
7 Willing to start small, learn through trial and error TPS is built on the scientific way of thinking Develop a way of thinking how do I respond to this problem not a tool box
8 Willing to start small, learn through trial and error Activity Desired Result Activity Activity Each activity builds on the other to achieve the desired result
9 TPS Vision of the Ideal True North Customer Satisfaction 0 defects 100% value added 1x1, in sequence, on demand c Toyota N What We Should Do, not What We Can Do + EVERYONE every minute every day Current Condition Human Development Physical & Mental Safety Security Professional Challenge 9
10 The Journey to True North Where do I start? N Customer Satisfaction 0 defects 100% value added 1x1, in sequence, on demand What We Should Do, not What We Can Do + EVERYONE every minute every day Current Condition Human Development Physical & Mental Safety Security Professional Challenge
11 Where do I start? Analyzing the big picture? Inventory Count Customer Production Control Material Supplier Molding Paint Ass y. Warehouse Shipping Where does this lead us
12 Analyzing the big picture? Inventory Count Customer Info. stagnation and rework Production Control Production info. not connected to customer No quality -- sorting, rework No standard Throw people at the problem Scrap Bad parts shipped Large warehouse Material Supplier Long lead time Large lots Consuming Excess Resources Operators tied to one M/C Molding Paint Ass y. Inventory covering problems M/c are monuments Large M/C s with long changeover Large Long C/O Large batch production Uneven flow through processes Machine DT, no PM Warehouse (5 days inventory) Operator pace based on own decision Shipping Quality standards unclear So many problems Again where do I start? Takes much time for investigation -- People lose energy finding problems but not fixing -- People become frustrated nothing is changing Looking only at the surface -- What are we observing skill to see is not developed
13 Where do I start? Inventory Count Customer Production Control Material Supplier Molding Paint Ass y. Warehouse (5 days inventory) Shipping We start at the activity level
14 Foundation to TPS Heijunka, Standardized Work and Kaizen Goal: Highest Quality, Lowest Cost, Shortest Lead Time Just-In-Time Jidoka Continuous Flow Takt Time Pull System Stop and notify of abnormalities Separate man s work and machine s work Heijunka Standardized Work Kaizen
15 How to See if Activity based on True North? N True North Standardized Work Customer Satisfaction 0 defects 100% value added 1x1, in sequence, on demand Human Development Physical & Mental Safety Security Professional Challenge The most efficient work flow - + considering safety, quality, quantity and cost EVERYONE every minute every day Current Condition Manual 3 Auto 25
16 Standardized Work as the Window to True North We say Physical and mental safety for people This shows where we are applying Physically - Safety guarding, procedures in place Mentally Team member confirmation of quality in their process Manual 3 Auto 25 Kaizen Shows where Is my bottleneck We say 0 defects; 100% value add; 1x1 on demand, in sequence This shows where we are applying: 0 defects Each team member confirming own quality 100% value add -- work flow is smooth, movement is minimized -- cycle time = takt time 1x1 -- where and how many pieces of inventory in this process
17 Creating Standardized Work Most efficient work flow - considering safety, quality, quantity and cost With the main consideration on human movement 8/9 10 6/7 Takt Time Work sequence Standard in-process stock /3 How can I create work so that it can be repeated?
18 Creating Standardized Work Theory of Standardized Work Most efficient work flow - considering safety, quality, quantity and cost Real World Quality problems, scrap, fluctuation, machine downtime, absenteeism, difference in operator skill, hard work Leader must constantly strive overcome real world problems to create the condition for standardized work to happen
19 Creating Standardized Work Baseline Create the work standard -- How the part should be assembled -- What is ok/no good quality -- How to confirm ok/no good
20 Creating Standardized Work 1. Identify what is preventing the operator from the most efficient work flow considering safety, quality, quantity and cost? Excess walking Defects Rework Heavy Lift & Bend Wait on M/C 2. Eliminate this problem 3. Evaluate 4. Standardize the work
21 Creating Standardized Work 1. Identify what is preventing the operator from the most efficient work flow considering safety, quality, quantity and cost? Periodic Work Walking M/C downtime Wide hand motions 2. Eliminate this problem 3. Evaluate 4. Standardize the work
22 Assembly Process: Case Study Example Process Flow: Stamping Assembly Shipping
23 Case Study Example Creating Standardized Work Questions to ask: Can the operators follow the most efficient work flow considering safety, quality, quantity and cost? Video: Initial Condition What is the biggest problem? Cost -- Cycle time < Takt time Actual 9 operator ΣCT 222 = 5 ops Takt Time
24 Case Study Example Creating Standardized Work Connect the operators to allow sharing of work Video: Create 1 piece flow Connect all processes in sequence Remove sitting for operator flexibility Remove tables in between processes to minimize walk and location for inventory build Reduce width of work stations to minimize walk Rebalanced work to 7 operators Heat Stake Short Guide Install 3 Roller Install 4 Pully Install 5 Bushing Press Stud Frame Assy 6 Final Assy 7 1 x 1 makes more problems visible Heat Stake Long 2 1 Install Paper Guides Bushing Press Rivet #2 Rivet #1
25 Case Study Example Creating Standardized Work Questions to ask: Can the operators follow the most efficient work flow considering safety, quality, quantity and cost? Video: After 1 piece flow What is the biggest problem? Operator # 5 CT > TT can not meet output Takt Time
26 Case Study Example Creating Standardized Work Reduce waste in operators work Video: Reduce empty walk Reduce reach for parts parts at point of use Standard in process stock and transfer position with downstream operator Work while machine works Reduce double handling auto part eject Takt Time
27 Making the System Connection How can I make a better condition for standardized work? -- Output impacted by: - part shortages - high work content / lower work content parts - Large containers from upstream causing downtime to changeover -etc
28 Making the System Connection Inventory Count Customer Production Control Material Supplier Molding Paint Ass y. Warehouse Shipping As a leader you have developed your skill to observe deeply and broadly You can now see the problems caused by connections with other processes Large lot size? Part shortage? What do I make next?
29 System Supports the Process Customer Heijunka Box Material Supplier Molding Ass y. Shipping Creates the condition for the operator to produce what is needed, how many needed, when needed
30 Foundation to TPS Heijunka, Standardized Work and Kaizen Heijunka Standardized Work Kaizen
31 Foundation to TPS Heijunka, Standardized Work and Kaizen Goal: Highest Quality, Lowest Cost, Shortest Lead Time Just-In-Time Jidoka Continuous Flow Takt Time Pull System Stop and notify of abnormalities Separate man s work and machine s work Heijunka Standardized Work Kaizen
32 Leadership Characteristics for TPS 1. Think deeply -- Genchi Genbutsu -- Think deeply on what you see Immediately try your idea 2. Do small and gradually -- Relating the manufacturing method to the people s work 3. Always question What s next -- Don t dwell on how much better we are but how much farther we have to go
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