3 Toyota Way - Methodology for improvement

Toyota Way for improvement

1. Productivity Improvement
Strategy
“Toyota Way –Methodology”
Hardianto Iridiastadi, Ph.D.

2. Toyota –A Review
•Toyota –a very profitable company
–$30 -$50 cash reserved
–Earned $10 billion (2004)
•Others lost market share and struggle earning a
profit
–Won 10 (out of 18) category –J.D. Power
Initial Quality Award (2005)
–Increasing sales abroad (US)

3. •Company philosophy
–What is the company’s philosophy?
–A sense of purpose
–Creating the philosophy
•Starting the process
–VSM approach
–Current state map
–Understand objectives
–Limitations of VSM
Why A Company Exists

4. •Basic stability
–Capability to produce consistent results over
time
–Basic level of process stability
•Indicators of instability
•Objectives of stability
–Reality and random activities
–Basis for improvement
•Strategies and tools
Create Initial Process Stability

5. •Why flow?
•Ideal –one piece flow
•Complex flow situation
•Pull in a custom manufacturing
environment
•Flow, pull, and eliminate waste
Connected Process Flow

6. •Standardization
–Not coercive
–Starting point for continuous improvement
–Standardized work vs. work standards
–Objectives
–Strategies to establish standardized
processes and procedures
–Types of standardization
–Specifications & procedures
–Visual control
Establish Standards

7. •Leveling paradox
•Heijunka
•How to establish leveled schedule
•Dealing with high product variety
Leveling

8. •Developing the culture
•Jidoka
–Intelligent machines
–Machine’s ability to detect a problem and
stop itself
•Quality inspection into every job
•Poke Yoke
Culture that Stops to Fix Problems

9. •Technology fitting the people and
operating philosophy
•Traditional vs. lean automation process
–See Fig. 9-1 and 9-2
•Lean IT
•Keeping technology in perspective
Fitting Technology to People

10. •Leadership
•Exceptional team associates
•Partners and suppliers as extensions of
the enterprise
Exceptional People and
Partners

11. •Problem as improvement opportunities
•Root cause analysis
•Thorough understanding of the problem
•Developing alternatives while building
consensus
•PDCA
–Plan
–Do
–Check
–Act
Problem Solving

12. •A3 report
–Outline
–Formatting
–Examples
Reporting

13. •Where do we start?
•Politics in lean transformation
•Metric in lean
Lean Implementation Strategies