BUILDING A LEAN MANAGEMENT SYSTEM
Daniel T Jones
The Toyota Example
Toyota created a unique synthesis of three improvement streams: Process thinking organising the flow of work Learning by doing and reflecting Quality using the scientific approach Out of this came many new tools and techniques The lean principles for designing value streams And a different way of managing and leading
www.leanuk.org
Starting Point
Hunger! A common language and way of thinking
A shared visual context for dialogue and decision making
www.leanuk.org
What is Important?
Strategic objectives their interrelationship and the significance of time
Understanding the dynamics of your organisation as a system deep causes of variation See the performance gaps that could be closed and actions to turn these into financial results
www.leanuk.org
What Problems?
Agree which gaps are most important Dialogue down the organisation to translate gaps into actions Give someone the end-to-end responsibility to gain agreement to act and to agree the resources Then to deselect the less important
www.leanuk.org
Which Actions?
First step is to create stability by addressing common cause variability Develop a visual hub to see deviations from plan root cause analysis escalation processes Gemba management
Develop and A3 plan for the subsequent countermeasures to get to the Future State
www.leanuk.org
Build Knowledge
Through well chosen controlled experiments creating examples Developing a mentoring infrastructure for A3 thinking
Capturing and sharing knowledge and experience communities of practice recognition - intranet
www.leanuk.org
BUILDING A LEAN MANAGEMENT SYSTEM
Daniel T Jones
Basic Title
TMS
Toyota Management System
Takashi Tanaka Sharon Tanner
1
2011 QV System, Inc. All rights reserved
History of Toyota Basic Title Sales
New Leader set vision & clear target Visualization & Oobeya Globalization Quality into Process Multi skilled engineers
d an ols d o ke ed t r o W elop v de
Increase outside of Japan
TPS 1950
Lean introduced in
Western corporations
1990
2010 2
2011 QV System, Inc. All rights reserved
Roots Toyota Basic of Title
1700 1800 1900 2000
Ninomiya Kinjiro (1787-1856 )
Toyoda Sakichi (1867-1930 ) Ohno Taiichi (1912-1990 )
Famous governor J.F. Kennedy respects Uesugi Youzan (17511822)
Toyota Way
Show them, tell them, have them do it, and then praise them. Focus on people.
2011 QV System, Inc. All rights reserved
Basic Title Toyota Way
Toyota Way Continuous Improvement
Challenge Improvement Genchi, Gembutu
Principle of TOYOTA
Respect for People
Respect Teamwork
Externalized Rule and Principle of Toyota in 2001 Preparation for more globalization
4
2011 QV System, Inc. All rights reserved
History in Western Corporations Basic Title
Lean principles introduced in Western factory in the 1980s; Dan Jones books follow within a decade Lean principles for the Knowledge Workers area followed much later (some companies have not yet started!)
5
2011 QV System, Inc. All rights reserved
Basic Work Title Culture Differences Basic
Typical Western PDCA
6
2011 QV System, Inc. All rights reserved
Basic Title Output Definition
Output =
i=1
(Person)
x i
(Ability)
(Motivation)
By the improvement activity
Total number of employees
n = Workers + Staff
7
2011 QV System, Inc. All rights reserved
Toyota Management System Basic Title
Product Concept Design Sales, After sales and CRM
TDS
TMSS
Engineering Production Concept
TMS
Marketing Design
Marketing Concept Production TPS
Production Design
Total
TPS
TMS (Toyota Management System) TDS (Toyota Development System) Total TPS (Total Toyota Production System) TMSS (Toyota Marketing & Sales System)
8
2011 QV System, Inc. All rights reserved
BasicTools Title TMS
TMS
Management System
Total TPS
Production System
Oobeya
TMSS TDS
Developmen t System Marketing & Sales System
9
2011 QV System, Inc. All rights reserved
Basic Title TMS and Corporate Management
Content Activity 1-1. Capital of senior management
1-1-1. Vision 1-1-2. Leadership 1-1-3. Ability 1-2-1. Corporate policy
Focus
1-1-4. Decision making 1-1-5. Existence of key person 1-2-4. Standardization 1-2-5. Active atmosphere 1-3-4. Power of middle management 1-3-5. Adequate cost center
1. Corporate Management 2. Finance 3. Cost Planning 4. Globalization
1-2. Policy deployment 1-2-2. Divisional policy
1-2-3. Daily management 1-3-1. Organizational structure 1-3-2. Collaboration with vice president 1-3-3. Collaboration among organizations 1-4-1. Reduction of fixed cost 1-4-2. Debt 1-4-3. Productivity 1-5-1. Attitude of top management 1-5-2. Working structure 1-5-3. Function and role 1-6-1. Target achievement
1-3. Organizational power
1. Corporate management
1-4. Improvement effort
1-4-4. Commitment for target profit 1-4-5. Drastic cost reduction activity 1-5-4. Creation of ability for audit staff 1-5-5. Risk management 1-6-4. Countermeasure for daily customer expectation 1-6-5. Recognition from customer
1-5. Audit
1-6. Customers
1-6-2. Price adjustment for customer 1-6-3. Customer satisfaction
10
2011 QV System, Inc. All rights reserved
Difficulty of Implementation Basic Title
Background
- The use of tools has improved factories
- Knowledge work areas has been more difficult - Most managers do not advance to the implementation of Toyota Management System
p an a J ta o y o T
Rate of improvement
U Toyota
SA
Western
Problem Time
11
2011 QV System, Inc. All rights reserved
Basic Do weTitle understand each other?
Finished!
Think
Western
Do
What is the goal?
Think
Toyota
Do
Genchi Gembutsu
Continue PDCA Cycle
12
2011 QV System, Inc. All rights reserved
Basic Do weTitle understand each other?
Work Tools
Japanese Culture Toyota Culture
Rules Principles
Toyota Culture Japanese Culture
Other Culture
Management
?
Western
Culture blocks understanding of Principles, Rules and management.
13
2011 QV System, Inc. All rights reserved
Basic Titleto Implement Procedure
Using both Tools (Method-side) and Management (Human-side), we can create sustained improvement. Tools Management
Kick -off 6 4 4 4 18-months
Visualization
Oobeya Visual board Higher Perspective
Tools
TMS Culture Self TDS New role Sustaining Total TPS Accountablity TMSS LfL Studio Working habit
New Working
14
2011 QV System, Inc. All rights reserved
Basic Title Oobeya: Big Project Room
Objective
Project Background Project Objective Technical Spec Project Organization
Expected Output
Expected Output
Metrics
Weight Cost Capital
Targ et 1 2 3 - 12 Targ et 1 2 3 - 12
Progress check, only Green & Red
Action Board
Concurrent Schedule
Today
Good Good
Projector for Virtual Design Review or meeting
Jan Feb Mar ---Dec
Prototype
All related members, Planning, Design, Production and Sales & Marketing
Issue Board
Potential Real Finish Record
Design Engineering Production Marketing Service
Decomposition Area
Issue Board: Panel
R&D Main Board
2-issues per week
Design Engineering
Production
New concept Drawing delay 3/5 Line A Improve Supplier select 4/3
Marketing
Supplier select 4/3 Supplier select 4/3
Identify issues for management decisions
15
2011 QV System, Inc. All rights reserved
Basic Title Oobeya: Hierarchy with Flow
Visualization Hierarchy3 levels only Policy Decisions Targets Metrics
Project Oobeya
Executive (Main) Board
Escalate two decision-ready issues per meeting cycle
Team A
Team B
Team C
--16
2011 QV System, Inc. All rights reserved
Visualization of GEMBA (Work place)
Basic Title Review Activity
DUNS -- Did, Understood, Next Steps
MyName Listened(Did) SomenewconceptIhave learned,oranewinsight aboutaconceptIalready knew(Understood) WhatIwilldodifferently backatmyorganization (Next Step)
17
2011 QV System, Inc. All rights reserved
Role of Leaders Basic Title
Before
Improve Improve ment ment Daily Daily Work Work
(Meeting, (Meeting, Decision Decision making, making, Team Team management, management, etc.) etc.)
Trouble Trouble shooting shooting
Now
Improvement Improvement
(Product, (Product, Process Process and and Personnel Personnel development) development)
Daily Daily Work Work
Decrease
Ideal
Increase
Effective and Efficient
Leader: use more than 50% of time on improvement work.
18
2011 QV System, Inc. All rights reserved
BasicEngieer Title Chief of Toyota
CEO
VP Engineering Only one VP to manage all Chief Engineers and functions
Prius
Cost Body Chassis ---Under -10%
Chief Engineer
Corolla
CE
---
CE
Quality Delivery
DOK 90% 1st proto May 1
Matrix & Metrics Target break down
Platform Standardized committee New navigation system committee Cost Reduction Committee
VP Strategy VP Production VP Marketing & Sales ...
-20%
DOK 80%
On time Dec 15
Executives lead cross-functinal committee
19
2011 QV System, Inc. All rights reserved
Basic Targets Title Clear Drive Results
Oobeya creates a more action-oriented organization.
Productivity
Target
Schedule 2009 Jan Feb --- Dec
Weekly Actions
Issue Board
Sales Target this year Profit Quality
Achievable Actual
4 5 6 7 8 9 10 11
Deliver Product
Product A Product B ---
Planning R&D Production Marketing Sales HR
Actual
Achievable
Target
4 5 6 7 8 9 10 11
Cost
Achievable Actual Target
1. Improve Improve products A 2. Experimental -ment process ---
4 5 6 7 8 9 10 11
Suitable Target
Gap Current Status Only 3-5 focused metrics Clear and concise activity and action Only decision ready issues
20
2011 QV System, Inc. All rights reserved
Basic Setting Title Target and Decomposition
Organizational (or VP) Targets Quality Cost Schedule Team A Targets Team B Targets Team C Targets Team D Targets Decompose targets to a meaningful level for the team Metrics show teams unique contributions to overall organizational goals
Specific Accurate Measurable
Team metrics = Organizational Target
21
2011 QV System, Inc. All rights reserved
Basic Title Targets with Barashi Visualizing
22
2011 QV System, Inc. All rights reserved
Basic Title Example of Western Client Barashi
LeanforLeadersImplementationTeam,2007
ProgramPlan
Program ToAchieve Target Function
Product Improvements
Quality
Metrics
Selected prioritized metrics Indication of current hot topics Clear indication with same format Connection with other board Update all results regularly Scenario chart for difficult issue DR in the project room Priority marks Connection with quickening action Virtual tools Forecasted line with scenario Arriving at 5why level
TeamProgressAudit
Progress Check Sheet: Oobeya/ Project room
Category 1 2 3
Indication of priority with green & red mark
Section: 4
Connection with Total R&D
Date: 5
Member's consistent check Consistently update with related documents IT based screen
Key Goal Indicator Graph
ProgramMetrics
Target Actua l l
Total
Measurement Summary by Project Progress chart metrics Leader Attached suitable contents
Product
Objective, Target
Shared with all Break down to Logical link members sub-system and connection
Expected Output
Issues & Visualized with Shared with all Decomposition countermeasur drawing etc. members of critical part es are clear
Decomposition / Scenario Real products or model
Process Improvements
Inside a project Some room, is it real decomposition products parts
Integration and Standard
Quantity
Concurrent Schedule
Due date and At earlier milestone with phase, join all output / related Process member Improvement
Capturing delay & change for review
Sub-systems are spontaneously breakdown
Connection with subsystem schedule
Apr. May. Jun July Aug. Sep. e
Issue flow
Kind etiquette
Contents & From record, Select 2Spontaneous Potential issue Countermeasur issue moving issues are attitude for is proactively e are mutually for PDCA smooth activity solution capture kind process
TMSImplementation
Process
Target
Human-side
Meeting
Agenda & schedule
Explain Kindly support effectively and leader & other efficiently member
Front loading considered opinion
Conscious of new role & responsibility
Visualization
Display
Visual Control Visual Control Level1 Level2
Quickening Visualization Level1
Quickening Visualization Level2
Total Grade
TeamSupport
Apr May JunJul AugSepOct
ICSkill Map
5levels
Internal Consultant Development
TMSImplementation Phased implementation Emphasizing TDS toolset Developing internal consultants (IC) Supporting teamand ICmaturity Achieveprogramtargets
23
2011 QV System, Inc. All rights reserved
Basic Title Concept of Quality into Process
Occurrence prevention
Process 1
Process 2
Process 3
No defect
Process 4
No defect
Inspection
Delivery
No defect
No final inspection!!
Outflow prevention
24
2011 QV System, Inc. All rights reserved
Quality into Process tools Basic Title
Front loading tools
Planning Design Test
Production
Target:
- Right on time - Right first time
Delivery
2. Education/ Training
Occurrence prevention
Knowledge management Multi-skilled engineer Supplier training
1. Management 7. Feedback sheet
Lesson and learn from past projects Policy deployment Target and Metrics Long-term planning Daily implementation Issue board for unexpected problems Oobeya for project
3. Standard Work
Design standards
Process standards Structured template
4. Quality assurance
Sustain standard work Support improvement activity
Outflow prevention at each gate
6. Check sheet
Front page, Whole process Back sheet, a part or a process
Rem: Follow up later items is establish another file, GM checks w eekly.
5. Improved Design Review
Gate DR Collaborative review Open/closed issues
Face
Engine Related
Design Check Sheet
Parts# Name Other Requested sectio n Order Final
Final Order
Route: Design room -> Manage r ->each CE 2- copy for group Depart R Outside design request #: Design change #:
Eng Type Facto ry Car Type D istribute Other
Document, Memo
CE agree
GM
Le ader
Estab lish
Pl ann ing D rawi ng C ha nge draw ing Outs ide des ig n R ec ogn ized d raw Othe rs
Cost
Estimated
Purchase, Fin st Plann in g Co
Weight
min
min
min Insp ec t drawi ng
with l ea der
$ (+ -
Ou t si d e
g ) (+ %)
%) (
Y -N Y -N Y -N Final audit of dra w ing 1. No problem 2. No confirmation, but no problem 3. There is is sue, but go What is is sue?
Background, Objective
g e spec Common ali za Reduce we i ght Chan Rese arch Pe rf o rmance Prod uctivi ty So lu t ion o f Iss Service e f ficiency rs Ot he
Durability, Reliability check
It e m Co unt
Check VA, VE
I f i t nee ded , distri b ute t o prod uction enginee ri n g of e ach fact ory
Continue hi-speed Full throttle U/D Low sw eep U/D Total pattern Total temperature Low tempe rature Ex main temp. Long drive Hammering Stresses Resonance Dirt course Hi-speed reliability Heat test Body test CAE Stress
Explain: Contents of change, Problems by GM Objective, reason by GM
rf o rmance So lu t ion o f Issu e Pe Request from others (CE, Produ c Common ali zati o n Cost redu cti o n SOC pro blem Others(
Attachment Planning figure Engineering c heck sheet Required specif ication
ntact i ssue Others ( NV improv co Service effi ci en cy ) ) Red uce weight
Cost Contents of change
1.SOP pha se 2.Targ e t co st 3.Curren t 4.Supplier estimate 5.Gap
A nxious by change
Countermeasure
6.Coun te rmeasure
Prototype
1.Part s cost 2.M o ld 3.Total
Ref lect f or test (Lef t table)
Reflect to production
Weight
1.SOP pha se 2.Targ e t co st 3.Curren t 4.Supplier estimate
I f necessary in te rnally,
5.Gap
Copy
Later Recognized draw ing OR Follow up ( Y - N ) Check grade
N o i ssu e : ++
Plan ( / Item
)
M D M D
Plan ( Check
)
M D
6.Coun te rmeasure M D
Item
C onf irm with Ma teria l de p: rub ber, pla stic , pai nt Gene ral n ame of ma teria l( )
Check
En g ine er GY
R eg ula tion che ck requ ire ( Y - N )
N o g ues sin g i ssu e : + Gue ssi ng i ss ue : N o c oun term eas ure: -N ot a cce pt:
Ac cep tan ce f or F/R , F/F Pa rts l ist o f OBD (On -boa rd d iag nos is) Sa fe ty iss ue (FH , C ras h, OR, L eak ) In clu di ng a ll PPC ite ms
Ass emb ly an d s erv ic e(Li ne to ols , se rv ice man ual ) R ow ma teria l, p roce ss wi th pro d. En g & su ppl ier C onf irm gui del in e of pa rts f ittin g (In terna l E2-1 4) D rawi ng: p arts tabl e, req ues t, la bel C ha nge Dra win g: ol d pa rts, ov e rse a, Pa rts tab le: S af ety , reg ula tion , ma ker o ptio n Pa ttent:re que ste d (Y N), Fa ll f a ult (Y N Anal y ) D eli v ery lo cati on , cha nge ( Env i ronm en tal c ond itio n & in f lue nce Oi l, wate r & ga s tem pera ture, f ro ze n, f uel , etc )
Bl ank C on fi rma tion Engi nee ring ch eck she et Sa tisf i ed re qui red f un ctio ns by rel iab ili ty ma trix Ke ep dev e lop men t targe t by j usti fi cati on c he ck s hee t C on fi rme d by c ontro l de si gn i nf orma tion ma trix Im ple me nt D RBFM Pro hib ite d de sig n ch ang e, c onf irm ed b y rea l pa rts C on fl ict o f p arts, d is tanc e, sl ack , fa ste ned , sea l Ca ulk ing , weld , pre ss, i nse rt cho kin g
The c ase of - an d --, Wri te f oll ow u p da te
Inf ormation Leader comments:
To ta l
Roll out other model(Y N ), Inf luence o ther organization(Y N), informed(Y N ):
(Revised '05 Ju ne)
#1: Each engine & using area has template #2: Attach en gineering check sheet
Ch eck su b-de sig n ch eck sh eet o f b ack sid e
25
2011 QV System, Inc. All rights reserved
Comparison Basic Title of Design Review
DR at US manufacturer
Engineering, Purchasing Test and production
~ 6 months
1st DR
Individually prepare, Engineering sub-teams
1 - 2 days
Internally prepare, Production
Internally prepare, Test
Many hours in large meetings
-- Much discussion -- Little problem solving
Internally prepare, Finance, Purchasing, etc.
Toyota DR
Engineering Purchasing
Internal Meeting 1-hour
1-month
1st DR
Engineering
Purchasing
Internal Meeting 1-hour
2nd DR
2-hour
Leaders Production
Internal Meeting 1-hour
2-hour
Leaders Production
Internal Meeting 1-hour
Test
Internal Meeting 1-hour
Test
Internal Meeting 1-hour
- Problem solving - Decision making
- Problem solving - Decision making
26
2011 QV System, Inc. All rights reserved
Basic Title Process Metrics: Design Completion
# of Issue Opened
Solved Plan -> Development -> Delivery Opened Solved
Hold original date
Plan -> Development -> Delivery
27
2011 QV System, Inc. All rights reserved
Basic Title Value Maximizing
Start at the topExecutives apply TMS to themselves first. Lean is not a delegated activity that executives sponsor. Select and train internal consultants (ICs) to support the implementation Incorporate a journey-approach to training by creating an LfL (Lean for Leaders) Studio Create infastructure to support Ics & teams Institute a disciplined approach to progress checks for teams and ICs
28
2011 QV System, Inc. All rights reserved
Basic Title Principle of Implementation
Developing both simultaneously
Horizontal
- Organizational roll-out - Participation of all members
Vertical
1) Tool installation - Multi-skilled Worker -TLSC, Structured 5-Why - Oobeya - etc. 2) Management skill - Vision, Target setting - Decision-making - Leadership 29 - etc.
2011 QV System, Inc. All rights reserved
Basic Title Selecting the Right IC
Internal Consultants:
Learn quickly, by working with consultants on multiple projects within the organization Apply techniques themselves Aid executives/teams implementing TMS.
Necessary Characteristics:
Technical strength Success in leading large projects Influence at the executive level Strong collaborative skills Real network within the organization
30
2011 QV System, Inc. All rights reserved
LfL Studio to develop IC Basic Title
1. QV&TECs role is to develop IC.
2. IC exercises Kaizen with own team. 3. IC develops Kaizen Leader (KL) with support of QV&TEC. 4. KL develops own team / other team.
LfL Studio for Senior / Organization IC
1.
QVS & TEC
IC Target level 3 - 4
2. Own team
IC IC Team
1.5 days/mo
exercise
LfL Studio for Kaizen Leader
3.
Kaizen
QVS & TEC & IC
4. Own team / other team
K/L Team Leaders K/L Team
31
2011 QV System, Inc. All rights reserved
IC Support Basic Title & Development Tools
Program, Project
To achieve target
Basic project plan Progress audit
SharePoint
IC Field Book: 250-p.
Function
Support
Introduction Guidebook: by IC
TMS Tools: 92 LfL Studio
LfL Skill map: 5--grades
Visual Board
Background Objective Policy Target Action
Theme : XXXXXX KPI
Team
Schedule
KGI
KGI Graph KPI Graph
32
2011 QV System, Inc. All rights reserved
Progress Basic TitleCheck Sheet
Example of Check Sheet: Project
Progress Check Sheet: Oobeya/ Project room
Category 1 2 3
Indication of priority with green & red mark
Section: 4
Connection with Total R&D
Date: 5
Member's consistent check
Total
Summary by Project Progress chart Measurement metrics Leader
Attached suitable contents
Executive (Main) Board Project Team TDS
Objective, Target
Consistently Shared with all Break down to Logical link update with members sub-system and connection related documents IT based screen Forecasted line with scenario Arriving at 5why level
Expected Output
Issues & Visualized with Shared with all Decomposition countermeasur drawing etc. members of critical part es are clear Selected prioritized metrics Indication of current hot topics Clear indication with same format Connection with other board Update all results regularly Scenario chart for difficult issue DR in the project room
Quality
Metrics
Priority marks Connection with quickening action Virtual tools
Decomposition / Scenario Real products or model
Inside a project Some room, is it real decomposition products parts
Integration and Standard
Quantity
Due date and At earlier milestone with phase, join all output / Concurrent Schedule related Process member Improvement
Capturing delay & change for review
Sub-systems are spontaneously breakdown
Connection with subsystem schedule
Issue flow
Kind etiquette
Contents & From record, Select 2Spontaneous Potential issue Countermeasur issue moving issues are attitude for is proactively e are mutually for PDCA smooth activity solution capture kind process
Human-side
Meeting
Agenda & schedule
Explain Kindly support effectively and leader & other efficiently member
Front loading considered opinion
Conscious of new role & responsibility
Visualization
Display
Visual Control Visual Control Level1 Level2
Quickening Visualization Level1
Quickening Visualization Level2
Total Grade
33
2011 QV System, Inc. All rights reserved
Basic Title Summary
Clear, focused targets will empower teams and drive accountability Deep reflections and strategic planning will improve long-term success Visibility of knowledge work & metrics will foster continuous improvement Standard work and disciplined process approach enhance quality improvements IC development will ensure a self-sustaining lean culture within Millennium
34
2011 QV System, Inc. All rights reserved
Basic Title
The Basics of Oobeya
Lean for Leaders Masterclass Summer 2011 Takashi Tanaka Sharon Tanner
Move to Rochester Purpose Basic Title
To communicate the oobeya technique quickly QV Oobeya makes knowledge-work visible, so that waste and non-value-add activities can be removed. Oobeya means big conference room Developed with Toyota in the 1990s for
first Prius and SUV 50% time-to-market reduction
Basic Title Oobeya Basics--Target A clear problem/target statement
Quantified Includes entire scope Balanced Differentiates internal and external targets
Basic Title Oobeya BasicsTarget Decomposition
Each target is fully decomposed
Broken down into targets for each team or participant
Targets are adequate
60% accurate to start is OK You will improve accuracy and ensure fairness as you go
Bounded with +/- limits
Basic Title Oobeya BasicsRole of the Leader Define targets Maintain time and content discipline Manage issue priority Check that activities are sufficient to meet targets Check member workload; balance as needed Ensure team participation, team skill
Basic Title Oobeya BasicsMember Role Deliver solutions Define activity and task to meet targets Report ahead-or-behind on targets Define and resolve issues in a kind way
Basic Title Oobeya Checklist Clear problem statement Target decomposition (external, internal) Roles/responsibilities defined and followed Problem-solving skills Kind approach/kind issue:
Clear, concise Constructive, contains analysis or recommendation
Issue board basics
Basic Title The PDCA of Oobeya Plan - My target is
I am ahead/behind Issues/countermeasures
Do - Last week I accomplished Check - I learned the following
New insight Aha! moment
Act - Next week I will
