The Fallen Temple

Nick RuhmannBD Medical – Diabetes Care

Agenda

Introductions

Error Prone vs. High Performance Systems

Capabilities of the Operational Outstanding

True North

The Four Levels of Process Design

Team Assignments – Gemba Kaizen

3

IntroductionThis training is based on work developed by Dr. Steven Spear, formerly of the Harvard Business School and in association and collaboration with TOYOTA and the BAMA Education Committee.

Dr. Steven Spear wrote his doctoral thesis based on working at TSSC for Mr. Hajime Ohba and data gathering at over 30 manufacturing sites in the USA and Japan. His experiences and insights were summarized in his HBR articles “Decoding the DNA of Toyota Production System”, “Learning to Lead at Toyota” and “The Essence of Just in Time, Productivity, Planning, and Control”.Author: Chasing the Rabbit, (2009)

The High-Velocity Edge: How Market Leaders Leverage Operational Excellence to Beat the Competition (2010)

Toyota’s Performance vs. Big 3

Profits are greater than all major competitors combined (2006-2009)

Passed Daimler Chrysler as the No.3 automaker and seller of automobiles in North America.

Surpassed Ford as No.2 and later GM as No.1 automaker in worldwide sales

Toyota opened up two new plants in North America, San Antonio, TX and Cambridge, ON, and announced a third new plant for Blue Springs, MS.

GM, Ford, and Chrysler continue to close and idle plants in North America and in Dec 2008 requested government support in order to survive the economic downturn.

Why has Toyota been so successful?

Why has Toyota been successful in its application of TPS?

Why have others failed despite Toyota’s openness to share its practices?

Is there a secret ingredient to the Toyota Production System that Toyota hasn’t shared with others?

Is their success due to cultural differences between Japanese and others?

Why do others fail?

Failure Mode 1:

• Copy Lean tools only without making work self-diagnostic

Failure Mode 2:

• Workaround problems even when they are recognized

Failure Mode 3:

• Don’t share systemically what has been learned locally

Failure Mode 4:

• Don’t develop the capabilities of others to design work, improve work, and institutionalize new knowledge

Failure modes identified in an actual internal problem solving report (A3) by Toyota Production System Support

Center

The Toyota Temple

The Continuous Flow of Material and Information is essential to TPS.

Flow is established using traditional LEAN TOOLS:

•Continuous (1 piece) flow

•Takt Time

•Kanban Pull System

•Heijunka Scheduling

FLOW: A LOT of hard work to establish; required discipline to sustain.

The Continuous Flow of Material and Information is essential to TPS.

Flow is established using traditional LEAN TOOLS:

•Continuous (1 piece) flow

•Takt Time

•Kanban Pull System

•Heijunka Scheduling

FLOW: A LOT of hard work to establish; required discipline to sustain.

The Continuous Flow of Material and Information is essential to TPS.

Flow is established using traditional LEAN TOOLS:

•Continuous (1 piece) flow

•Takt Time

•Kanban Pull System

•Heijunka Scheduling

FLOW: A LOT of hard work to establish; required discipline to sustain.

The Toyota TempleMost Western Organizations have concentrated their efforts for TPS deployment on this pillar

The Toyota Temple

Requires the ENTIRE

organization be transformed into problem solving

experts

Engages the expertise of a few

KEY people

Leadership Requirements

The Fallen TempleGoogle results for info on Just in Time vs. Jidoka

Leveling Standard Work Kaizen

• Just in Time• Continuous Flow• Takt Time• Pull System

A difference of almost 50,000 to

1!

Since people make things, work must begin with developing people...

- Eiji Toyoda

TPS : The Shop Floor Stuff Being able to support the Jidoka pillar

requires people with the right capabilities at the right place at the right time.

TPS : The Shop Floor Stuff

Capability 1 : Design work to see problems

Capability 2 : Swarming problems when they occur

Capability 3 : Sharing knowledge where it is created

Capability 4 : Leaders train, coach, assist, & teach

When former Toyota Motor Manufacturing North American president Atushi (Art) Niimi was asked about his greatest challenge when trying to teach the Toyota Way to his American managers, he responded:

“They want to be managers, not teachers.”

Capabilities of the Operationally Outstanding

20

Reasons for Toyota’s Success

All work is highly specified as to content, sequence, timing, and outcome.

Every customer/supplier connection must be direct, and there must be an unambiguous and specified way to send requests and receive responses

The pathway for every product and service must be specified, simple, and direct

Any improvement must be made in accordance with the scientific method, under guidance of a teacher, at the lowest possible level within the organization.

Characteristics of a TPS Organization

All work is designed so best practices are captured and problems are evident immediately

Problems are immediately addressed, both to contain their effects from propagating, and to trigger problem solving

Knowledge generated locally becomes systemic through shared problem solving

The most senior management has to own the capability development process.

The FOUR Levels of Process Design

1. Defining objectives/outputs for the system

2. Creating pathways by assigning responsibilities

3. Connecting adjacent nodes on the pathway

4. Designing individual work activities

Capabilities of the Operationally Outstanding

Capabilities of the Operationally Outstanding Summarized

C1 – Why is Proper Categorization of (S,P,C,A) Essential?

C2 – Problem Solving

True North (Ideal State)1. On Demand, Immediate

– Pull– 0 Lead Time

2. 1 by 1– Batch Size of 1– 0 Changeover Time

3. DEFECT FREE4. NO WASTE, LOWEST COST

1. Over Production2. Inventory3. Defects, rework4. Motion (Non Value Added)5. Waiting6. Conveyance, material handling7. Processing

5. SAFE– Physical– Professional (job stability, security)– Emotional (fear, threats)

When making a change in direction, check your compass.

Are you heading True North?

C3 – Share Knowledge

C4 – Leaders are Teachers

C4 Leader Skills and Characteristics

Team Assignment – Gemba Kaizen Overview

Go and See to understand TPS 4 levels of Process Design: System (output), Pathway (responsibility), Connection (handoff), Activity (method).

Time: 1 Hrs Including Debriefs

Details Observation Exercise – As individuals select a location within our host

to observe activities. Remain at this location to observe 4 levels of process design, abnormalities, and work arounds. (Silent Observation, No Talking!)

Use “Countermeasure Worksheet” and document Kaizen ideas and suggest rapid experiments for improvement

For each idea, the Countermeasure form must be completed up to “expected outcome” PRIOR TO any experimentation (changes), otherwise you’re tampering!

Return to Room Output:

Each Team will discuss which of the 4 Levels of Process Design they observed, and if the problem was lack of pre-specification, abnormality to pre-specification, or a gap to the ideal state.

Discuss your proposed Kaizen or improvement, how you would test your hypothesis and what the expected result would be.

I will ask Claudia to share our results with our host

Focused Problem Countermeasure Sheet

About the Speaker Nick Ruhmann is a Lean Sensei and Six Sigma Master Black Belt

for BD Medical, Diabetes Care. Prior to entering the medical device industry in January 2010, he spent the previous 12 years working for a major Tier I supplier to various OEM’s including Toyota.

Nick’s career has included functional and managerial positions across R&D, Product Engineering, Operations, Process Engineering, Quality, and Global Supply chain

http://www.linkedin.com/in/nruhmann78