Toyata Way

7/29/2019 Toyata Way

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THE TOYOTA WAY

PRINCIPLES 6 , 7 , 8

Submitted by :

Group 4

Thanu Ann Peter

Vanshaj Sehrawat

Varsha Advani

Vipin Vinod


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The Toyota Way

People - backbone of successfulimplementation

Tools and techniques that help peoplefor continuous improvement

Four broad Sections Long term philosophy

The right process will produce the right

resultsAdd value to the organization by developing

your people

Continuously solving root problems drives

organizational learning


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Standardized tasks are the foundation forcontinuous improvement and employeeempowerment

Standardization Takt time

Sequence Standardized stock on hand

Identical processes at all manufacturinglocations across the globe

Key driver for Continuous improvement

Quality zero defects

Audit by superiors to ensure conformance to

standardized work sheet

Principle 6


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Employee empowerment Toyota follows neither organic nor

mechanistic model

Study by Paul Adler at NUMMI plant

Principle 6

COERCIVE BUREAUCRACY Rigid rule enforcement

Extensive written rules Hierarchy controls

ENABLING BUREAUCRACY Empowered employees

Rules as enabling tools Hierarchy supports learning

AUTOCRATIC

Top down control

Minimum written rules

Hierarchy controls

ORGANIC

Empowered employees

Minimum rules

Little hierarchy

SOCIAL STRUCTURECoercive Enabler

TE

CHNICALSTRUCTURE

Low

b

ureaucracy

High

bur

eaucrac

y


5/22

Employee empowerment Toyota follows neither organic nor

mechanistic model

Study by Paul Adler at NUMMI plant

Principle 6

COERCIVE BUREAUCRACY Rigid rule enforcement

Extensive written rules Hierarchy controls

ENABLING BUREAUCRACY Empowered employees

Rules as enabling tools Hierarchy supports learning

AUTOCRATIC

Top down control

Minimum written rules

Hierarchy controls

ORGANIC

Empowered employees

Minimum rules

Little hierarchy

SOCIAL STRUCTURECoercive Enabler

TE

CHNICALSTRUCTURE

Low

b

ureaucracy

High

bur

eaucrac

y


6/22

Democratic Taylorism Worker is an analyst and a problem solver

Standardizing for New Product launch Pilot teamworkers from all areas of the

factory

Work in hand with engineering to developinitial standardized work

Passed over to production teams forimprovement

Learning achieved Technical Design and production

Team work

Principle 6


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Standardization of training module Ensured compliance throughout career

through checklist books

Key Requisites Specific yet room for flexibility

Ex : Curvature of hood and air resistance varies

from model to model

Personnel have to improve the standards

Adding own ideas to improvement leads to

Satisfaction

Appreciation

Principle 6


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Principle 7

Use visual control so no problems are

hidden

Basic principle : Clean it up and make it

visual

5 Ss SORT

STRAIGHTEN

SHINESTANDARDIZE

SUSTAIN

Eliminatewaste


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Used to make problems visible Visual control of a well planned system

How work should be done

Deviation from standard Design of JIT information to ensure

Fast and proper execution of processes

Ex: Shadow tool boards Indicators for inventory levels

Charts and graphs

Used to ensure adherence to Kanban andAndon

Principle 7


10/22

Enhancement of flow in a service partswarehouse

Warehouse at Hebron, Kentucky

Biggest Toyota service parts facility in theworld

843000 square feet

319 personnel

154000 parts per day from 400 suppliers and

stocked in shelves

Caters to nine distribution centers and

subsequently Toyota dealers

Principle 7


11/22

Home positions for similar sized parts Powerful computer system

Volume of each part

Physical location

Aggregation of small parts in a standard sizedbox for a particular location

Part picking route developed by an algorithmwhich can be completed in 15 minutes

Process control boards Monitoring progress vs task time

Green magnet On time

Red magnet Running late

Principle 7


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Benefits Industry leaders

Productivity

System fill rate Facing fill rate

Visual control of Office work

Audit of file cabinet by the president/vice

president

Deviations reflect on the grades and

evaluation

Principle 7


14/22

OBEYA BIG ROOM Conference war room Chief engineer and heads of major engineering

groups

Visual management tools indicating status of

each area and deviations Benefits

Fast and accurate decision making

Improves communication

Sense of team integration

A3 reports

Balance of technology and human systems

for visual control

Principle 7


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PRINCIPLE 8

Use only reliable, thoroughly testedtechnology that serves your people

and processes

Careful acquiring of technology thatsupports

People

Process Values

More focus on implementation of value

added technology


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PRINCIPLE 8

Evaluation by all key stake holders Nature of value added work being

performed

New opportunities to eliminate waste Pilot area to improve the process with

existing resources

Comparison of results with introduction of

new technology

Adopted only if it adds extra value

Design and use to support continuous

flow


17/22

IT services are employed for information Retrieval

Exchange

Processing

Technology only as a tool/enabler/support Ex:

American Auto parts supplier of Toyota whichfocused less on IT

Toyotas Chicago parts distribution centreregretted the adoption of the Automated rotaryrack system

PRINCIPLE 8


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Monarch Project

Two year systems initiative

To improve demand forecasting

Inventory planning

Joint project by logistics and IT

specialists

Procurement analysts at part centers

Supplemented by Communication

between

Inventory group

PRINCIPLE 8


19/22

IT in Toyotas product development

process Comprehensive stress analysis using CAD

Slow shift to CATIA after a lot of

customization Collaborative vehicle development using

digital engineering

Lot of testing and visualization digitally prior

to adoption Adherence to Jidoka Ex : Assemblies for instrument panels are done

digitally in 3D

Digital checklists of good and bad design

Engineering animation

PRINCIPLE 8


20/22

Role of technology Flexible body shop

Multiple car bodies in the same shop

Rapid change over from one model to the

other

Relatively expensive due tocustomized pallets

Replaced by robots programmed foreach car body Referred to as The Blue sky system

Also Global body line

PRINCIPLE 8


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Benefits Facilitates build to order approach

Reduced equipment maintenance cost

Less down time

Lean , simple and speedy

Key to success Gradual implementation

Attention to detail visual inspectionAcid test to prove that it Supports people and processes

Adds value before it is implemented broadly

PRINCIPLE 8


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THANK YOU

Toyata Way

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