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• Pinnacle of the global auto industry
• Overtaken Ford Motor Co and General Motors Corp in vehicle sales
• Has 40 vehicle assembly plants around the world and 12 research, development and design centers and employs 310,000 people.
Book Review
Jwala Nayak 41
Kapil Mhatre 34
Shahzad Khan 24
Joe Augustine 38
Kapil Singh 52
Gaurav Taishete 53
Presented by
The current Toyota Mark consists of three ovals:
The two perpendicular center ovals represent a Relationship of mutual trust between the customer and Toyota.
These ovals combine to symbolize the letter "T" for Toyota.
The space in the background implies A global expansion of Toyota's technology and unlimited
potential for the future.
• Honor the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world.
• Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities.
• Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our activities.
Guiding Principles at Toyota
• Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide.
• Foster a corporate culture that enhances individual creativity and teamwork value, while honoring mutual trust and respect between labor and management.
• Pursue growth in harmony with the global community through innovative management.
• Work with business partners in research and creation to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.
Guiding Principles at Toyota
Part I - Background to the Field book
• Toyota has a reputation for excellence in quality, cost reduction & hitting the market with vehicles that sell.
• Contributed a new paradigm in marketing ‘’ Lean production’’
• Creating a ‘’learning organization’’ and pass on the DNA as they expand globally through dedicated Sensei.
• There is always more than one way to achieve desired result.
The 4 P Model – The Toyota Way
PHILOSOPHY – Adding value to customers , society, communityand its associates.
PROCESS – Right process ,Right resultsEg. Principle of creating flow
PEOPLE AND PARTNERS – Add value to your organization bychallenging your people and partners to grow. Toyota production system (TPS) was called ‘’Respect for humanity’’ system
PROBLEM SOLVING – Solve root problems to drive organizational learning.When someone learns an important lesson, it is shared so that companycan learn.
Overview of Toyota Way Principles
I Philosophy as the foundation
1. Base your management decisions on a long term philosophy, even at the expense of short-term financial goals.
II The Right process will produce Right Results
2. Create a continuous process flow to bring problems to the surface
3. Use ‘’Pull’’ systems to avoid overproduction.
4. Level out workload
II The Right process will produce Right Results
5. Build a culture of stopping to fix problems, to get quality right the first time.
6. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment
7. Use visual control so no problems are hidden
8. Use only reliable, thoroughly tested technology that serves your people and process.
Overview of Toyota Way Principles
III Add value to your organization by developing your people and partners
9. Grow with leaders who thoroughly understand the work, live the philosophy and teach it to others.
10. Develop exceptional people and teams who follow your company’s philosophy.
11. Respect your extended network of partners and suppliers by challenging them and helping them improve.
Overview of Toyota Way Principles
IV Continuously solving root problems drives organizational learning
12. Go and see for yourself to thoroughly understand the situation.
13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly.
14. Becoming a learning organization through relentless reflection and continuous improvement.
Overview of Toyota Way Principles
PART II - Why Does Your Company Exist ?
What is your Company’s Philosophy ?
Survive ? Contributing to Society , Associates & Partners ? Profits ?
Defining the Company’s Purpose
Company Purpose
Learning CommunityST – Capable peopleLT – Learning to improve
Learning EnterpriseST – Capable partnersLT – Learning Enterprise
Lean SystemsST – Capable processesLT – Value stream improvement
Value-adding ContributorST – ProfitableLT – Growth & contribution to society
PART III – Creating Lean Processes Throughout Your Enterprise
Lean – Eliminating Waste
Toyota’s 7 major types of non-value adding Activities in business or manufacturing processes –
1. Overproduction
2. Waiting (Time on hand)
3. Transportation or Conveyance
4. Over processing or Incorrect processing
Toyota’s 7 major types of non-value adding Activities in business or manufacturing processes –
5. Excess inventory
6. Unnecessary movement
7. Defects
Eight Waste
Unused Employee Creativity
• Developing a long – term philosophy of Waste Reduction - “Get Lean”
• Value Stream Mapping Approach Beginning at the end of the flow • Strategies to create stability Capability to produce consistent results over time.
PART III – Creating Lean Processes Throughout Your Enterprise
5 S and Workplace Organization
EliminateWaste
SortClear out rarely
Used items
StraightenOrganize and label
a place for everything
SustainUse regular audits
ShineClean it
StandardizeCreate procedures
To maintain first 3s
Production in the entire facility & across multiple facilities will be shut down if problems are not correctedeffectively.
Importance of equipment readiness, manpower availabilityand material supply when thousands of people stop working If there is a failure.
At Toyota –• Entire operation is connected and a problem will main component halts the entire facility.
• Sees it as an opportunity to identify weakness within the system, to attack weakness and strengthen the overall system.
Connected flow across the enterprise
Toyota considers overproduction to be the worst ofseven types of wastes.
Stopping overproduction- producing more, sooner orin greater quantity than next operation requires.
Creating Pull between Separate Operations
“Always satisfy the customer’’
‘’ Never short the customer’’
Establish correct amount of WIP between supplier and the customer to buffer time requirement of the supplier to changeover and also to supply to second customer.
Less is more – Reduce Waste by Controlling Overproduction
Objective of Standardization –
Maximize he entire system and considers ‘’Total Cost’’via waste reduction as a primary indicator of success.
Toyota considers development of standardization to bebaseline for continuous improvement, meaning that future results are expected to improve from the standard.
Establish Standardized Processes and Procedures
The Leveling Paradox
“Heijunka” – Level or make smooth Produce smaller quantities more aligned with actual customer consumption.
Points of Control
Kanban – Point of control for inventory management
Establish Standardized Processes and Procedures
• Principle of building in Quality and decision to stop and fix problems as they occur rather than pushing them down the line to be resolved later.
• Toyota has build in system that provides long-term benefits of stopping the line and minimizes negative effect by building a support structure to quickly identify ,respond and correct problems.
What Toyota does that makes their quality consistently better than other Car companies ?
The Toyota method of stopping to fix problems
PhilosopyWaste elimination
PrincipleGet quality Right the
First time
Strategy Stop to fix problems
Method Fixed position stop and
Support structure
ReasonIncrease urgency to
Identify & correct problems
EffectLong-term
strengthening
Performance MeasureFirst-Time
Quality
Lean ToolsJikoda,
Problem solving
Control methodsStandardized work
Quality audits
ResultSystem waste
and cost is reduced
Role Of Jikoda : Self Monitoring Machines
Jikoda – Intelligent machines Machine’s ability to detect a problem and to stop itself.
Problem solving Cycle1. Recognition2. Elevate3. Evaluate4. Control5. Containment6. Prevention
Poka Yoke “Mistake Proofing’’ or ‘’Error proofing’’
Tailor Technology to Fit your People and Operating Philosophy
Keep Technology in Perspective
Toyota is an engineering-driven company and technology based company.
Innovative product and process technology is at thecore of Toyota’s success.
People are at the core in creating and successfully implementing innovative product and process technology.
Make Technology Fit with People and Lean Processes
Success starts with LeadershipToyota views leaders as crucial elements and ratioof leaders to team members is one –to- 20 /30
Importance of Leadership within ToyotaToyota philosophy is to disperse responsibility to the lowest level possible. Three basic responsibilities – 1. Support for operations 2. Promotion of the System 3. Leading Change
Four Key performance Results- 1. Safety 2. Quality 3. Productivity 4. Cost
PART IV – Develop Exceptional People and Partners
1. Willingness and desire to lead
2. Job Knowledge
3. Job Responsibilities
4. Continuous Improvement Ability
5. Leadership Ability
6. Teaching Ability
Requirements For Leaders
“We Don’t Just Build Cars, We Build People’’ People truly are the greatest assets.
• Select the right people• Assimilating team associates into your culture• Training Plan and Tracking Performance• Quality Circles – Vital part of Kaizen• Toyota Suggestion Programme – Providing a sense of ownership • Invest in Skill in all areas of company
Develop Exceptional Team Associates
Develop Suppliers and Partners as Extensions of the Enterprise
• Supplier partners in a Globally Competitive World
• Short term Cost Savings vs. Long term Partnerships
• Supplier partnering at Toyota –
1. Mutual understanding & Trust 2. Control systems 3. Compatible capabilities 4. Information sharing 5. Joint Improvement activities 6. Continuous improvement and Learning
Building a Lean Extended Enterprise
1. Become a Role Model Lean Customer You cant teach suppliers what you yourself have not yet mastered.
2. Identify your Core Competencies Outsourcing entails more than simple make –buy decision
3. Develop your core suppliers Make sure their systems and philosophies are compatible with yours and they are at a comparable level of operational excellence.
Building a Lean Extended Enterprise
4. Use control Systems for continuous improvement Manage supplier relationship by minimizing bureaucratic systems and procedures to a critical minimum
5. Favor an incremental approach Start small with selective outsourcing for a new supplier.
6. Develop mechanisms for Joint Enterprise Learning Learn together and capture learning in standardized routines.
PART V – Root CAUSE Problem Solving for Continuous Learning Problem Solving The Toyota Way
Identify and remove obstacles on the path to perfection • Every problem is an improvement opportunity• Find the True Problem to get the most significant results
“Yoi Shina,Yoi Kangai’’ – “Good thinking, good products’’
Plan – Do- Check – Act
Plan : Develop an Action PlanDo: Implement SolutionsCheck : Verify ResultsAct : Make necessary adjustments to Solutions and to the Action plan
A 3 Report
Implementation Plan
A3 Report Title and Description
Problem Definition andDescription
Problem AnalysisResults
Future Steps
AUTHOR : _________ DATE:______
PART VI – Managing the Change Lean Implementation Strategies and Tactics
1. Philosophy2. Process3. People4. Problem Solving
Leading the Change
Lean Coach
• Smart• Quick studies• Love to learn • Hands-on• Passionate about improving process• Leadership skills• Strong inter-personal skills• Excellent communicators• Basic technical skills• System thinkers• Natural problem solving skills• Read books• Open to new ideas• Personally organized
Lean Sensei - Sensei “Teacher ”
Key Ingredients for Change
Change Effort
Participation &OwnershipStructure
Committed Knowledgeable
Leadership
AccountabilityLearning by
doing Education& Mentoring
Lasting Results
Learnings
• Define company’s purpose and develop a long-term philosophy
• In a multi-national set-up create a culture adaptable to people across countries.
• Encourage the concept of being a “ Learning organization”
• Create value systems with flow, standardized work, and level production.
Learnings
• Stop and fix problems – Take timely action
• Develop leaders who promote and support the system
• Find and develop exceptional people and partners
• Lead the change process and transform the total enterprise
Thank You