The Toyota Way

Learning from The Toyota
Way
Jeffrey K. Liker
Professor, Industrial and Operations Engineering
The University of Michigan
and Principal, Optiprise, Inc.

BIFMA Leadership Conference
January 31, 2008

What is lean?
• Obtaining brilliant results from brilliant
processes

• By focusing on (Jim Womack & Dan Jones):
– Value
– Value streams
– Flow
– Pull
– Perfection

• By eliminating waste from all processes

© Copyright Jeffrey Liker and Michael Balle (most slides thanks to Michael Balle)

Sounds Good, so Let’s
do lean!

But how?


Answer #1:

Eliminate waste from our processes

Lean Manufacturing
CUSTOMER PRODUCT
ORDER BUILT & SHIPPED

Waste

Time (Shorter)


Rapid improvement
events
Let’s hire consultants,
who will run lots
of workshops


Rapid improvement
events
• Every workshop has
good results

But… • But these results are
seldom sustained

• And don’t show up in
the budget

• And many managers
grumble


The problem:

“What is important is having all the
elements together as a system. It must
be practiced every day in a very
consistent manner - not in spurts - in a
concrete way on the shop floor.”
Mr. Fujio Cho


Answer #2:
Lean is a production system
People Lean Processes
XOXO 20
20
20
20

R
L

Company
Lean Tools
Purpose
takt time
Problem
OP 2B

Solving
OP 1

OP 3
OP 2A


Lean Production Elements

CUSTOMER SATISFACTION:
Quality, Lead-time, Cost, Safety

Just-
Auto-
In-
quality
Time

Standardized Work / Kaizen

Stability


Implement the system

Let’s create a
Lean Office
to implement
a system
We need to adapt
TPS to our business

And have a
roadmap
to implement
Model lines Wall to wall stability


Implement the system
• More systematic change

• Impressive model lines and wall
to wall stability

• But still disappointing budget
But… results

• Hard to spread beyond model
line

• Lots of conflict between the
Lean Office and line
management

• Hard to sustain


The problem:

“Creating a Buddha image and forgetting
to inject soul into it”
Mr. Hajime Oba
TPS Expert


Answer #3:

Lean is a production system supported by
management behavior


Manage for lean

Find a sensei
Let’s go to the workplace You can work with
Gemba is great teacher!

And teach
change from
The top


Manage for lean
• Start to get real top
management support

• We can see budget level
But… results each year

• But it’s very uneven--results
of a few large projects

• And a constant fight: “the
frozen middle managers just
don’t get it!”


The problem:

“Kaizen consciousness must be the
mindset of all employees”
Mr. Nampachi Hayashi
“The people who
perpetuate a negative,
disengaged culture may
be the leaders
themselves!”


What is a mindset?

Typical problems Typical solutions


Typical lean mindset problems

 Completely satisfy customers by engineering products that
solve their usage problems
 Completely satisfy customers by engineering and
manufacturing defect free products
 Completely satisfy customers by offering a full product range
at market price and renewing models frequently
 Lower costs by continuously value engineering parts
 Lower costs by designing products fit for lean manufacturing
 Lower costs by assembling different products in the same
production units
 Lower costs by eliminating all waste in company activities


Typical lean mindset solutions

• “Avoiding overproduction has to be built into the
system, a difficult task.”
• “And each problem will have to be made visible, and
then tackled by every one of the workers.”
• “Visiting our factory, you will see that on one line we
have eight different types of cars, not just variations.”
• “At the start, the line keeps stopping, for example.
Even when you see it, it is difficult to understand.”
Mr. Fujio Cho


Answer #4:
Lean is a system to make people think & grow

1 2 3 4 5 6 7
8 9 10 11 12 13 14

Deviation Problem
From Solving Learn &
Grow
Standard

Tighten
Standard


The sensei teach us that

Lean is not applying lean tools or systems
to each process
but
Developing a kaizen mindset in every
employee


TPS and Toyota Way

Make the production line visible
How?
Reveal problems at all times

Solve problems one by one

Improve management standards


Measuring and understanding
performance


Express gap
Measure
against target:
local performance
best day, hour, cycle


Visualizing problems:
quality
Stop and notify
any abnormality, now! Auto-
quality

Workers stop line for
every abnormality
and team leaders respond


Visualizing problems:
overproduction
One piece flow

Just-
Auto-
In-
quality
Time At Takt Time

With a PULL system


Analyzing and solving
problems

Just-
Work is specified And carried out Auto-
In-
in detail Time consistently quality


Ask why 5 times And experiment
on any to try new things
problem

Following a learning cycle


Just-
Auto-
In-
quality
Time


Stability


Typical Improvement
Opportunities Available


Improvement Approaches of
Typical Companies


Toyota Leverages Opportunities
at all Levels


Make people think:
• By going to the workplace

• Observing operations with them

• Showing typical problems

• Outlining typical solutions
“We were asked to stand in a circle for 1 week
and come up with 240 improvements and
Implement most of them 140.”
--Toyota Japan TPS Training


Role of management

To keep kaizen going

Top management must go to the workplace

Look at problems revealed day to day, hour by hour

Give people problems to solve and follow up


Role of lean coach
• Use the lean tools to
teach managers and
their teams

• To visualize problems

• Experiment

• And solve them

Teamwork!


To develop employees by
problem solving

P D

C A

Plan - Do - Check - Act


Toyota Mentor-Mentee
Chain What Data?
What’s the
Problem?
•Goals Targets, Metrics What can you
•Dialogue do next?
•Go and see
•Open Questions
•No Blame
•PDCA
•5 Why?
•Regular Checks
against Plan

All practice the same basic patterns of
Problem solving, dialogue, and mentoring


Answer #5:

Lean is a business model


Not a production tactic,
but a business strategy
Challenge!

What do we need Let’s get agreement
to achieve for and plans at all
Success? levels


Not a production tactic,
but a business strategy

Hoshin Kanri

catchball Hansei

Workplace Visual Control


Connecting Hoshin and Floor
Management System

1. What do we need to do? Hoshin
(Company Department Group) Objectives
KPI’s

Floor Mgmt
2. How should we do it?
Daily
(Process)
Activities

Main KPI
3. How are we doing? Sub-KPI
(Results) Process KPI


Team Board for Floor Management Development System


Learning from the Toyota
Way

The lean journey

Lean culture

Business model

Management behavior

Implement system

Eliminate waste


The lean journey starts
with oneself
• How can I learn to identify waste?

• How can I become a teacher of waste elimination?

“Here’s your school lesson for today. Don’t listen to your teachers, just
watch what they do.”
Woody Allen to his niece in Anne Hall

“You must become the change you want to see.”
Ghandi


To help others with the journey
• Are people clear on their own
processes, do they follow their own
standards?

• Are they focusing on the right
problems?

• Are they solving them following our
values and principles?


To develop kaizen consciousness
“Something is wrong if employees do not
look around each day, find things that
are tedious or boring, and then rewrite
the procedures. Even last month’s
manual should be out of date.”
Mr. Taiichi Ohno


The 4 Ps
Key Elements of ‘The Toyota Way’


Key Points for Implementing
Lean System

• Process improvement and people
development must go hand in hand
• You must be patient for people development
– Keep your eyes open to the growth and
strengthening of people (culture change)
– Push when procrastination is preventing the
growth of people (avoiding action)
– Provide necessary challenges and support for
people development!


Lean is…
“A long journey that needs commitment,
patience, long-term thinking, positive
mindset and attitude, and continuous
improvement which are merged together
as operational excellence and as a strategic
weapon.”

Let’s start the journey and Do our Best!

The Toyota Way

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The Toyota Way