Toyota Management System by Takashi Tanaka and Sharon Tanner

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© 2011 QV System, Inc. All rights reserved

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TMSTMSToyota Management SystemToyota Management System

Takashi TanakaSharon Tanner

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History of Toyota

1950 1990

Lean introduced in Western corporations

Sales

2010

TPS

• New Leader set vision & clear target• Visualization & Oobeya• Globalization• Quality into Process• Multi skilled engineers

Worke

d and

developed to

olsIncrease outside of Japan

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Uesugi Youzan (1751-1822)

1700 1800 1900 2000

Ninomiya Kinjiro (1787-1856 ) Toyoda Sakichi (1867-1930 )

Ohno Taiichi (1912-1990 )

Roots of Toyota

Show them, tell them, have them do it, and then praise them.Focus on people.

Toyota WayFamous governorJ.F. Kennedy respects

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Toyota Way

• Externalized Rule and Principle of Toyota in 2001

• Preparation for more globalization

• Challenge• Improvement• Genchi, Gembutu

Continuous Improvement

• Respect• Teamwork

Respect for People

Principle of TOYOTA

Toyota Way

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Output Definition

Σi=1

n

iOutput = (Person) x

i(Ability) x

i(Motivation)

Total number of employees n = Workers + Staff

By the improvement activity

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Toyota Management System

TMS (Toyota Management System)TDS (Toyota Development System)Total TPS (Total Toyota Production System)TMSS (Toyota Marketing & Sales System)

Design

Engineering

ProductionTPS

Marketing Concept

Marketing Design

ProductionConcept

Product Concept

TDS

TMSS

TMS

ProductionDesign

Sales, After sales and CRM

Total TPS

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TMS Tools

TDSDevelopment

System

TMSManagement

System

TMSSMarketing & Sales System

Total TPS

Production System

Oobeya

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Difficulty of Implementation

Rate of improvement

Time

Toyota Japan

Toyota USA

Western

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

Problem

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Do we understand each other?

Western

Toyota

Think

Do

Do

Think

• Genchi• Gembutsu

What is the goal?

Continue PDCA Cycle

Finished!

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Do we understand each other?

Work

Culture blocks understanding of Principles, Culture blocks understanding of Principles, Rules and management.Rules and management.

Tools

Rules

Principles

Japanese Culture

Toyota Culture

Jap

an

ese

Cu

ltu

re

To

yota

Cu

ltu

re

Oth

er

Cu

ltu

re

?Management Western

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Procedure to Implement

4 4 4

Self Sustaining

New Working Culture

Higher Perspective

Visualization

18-months

Tools Management

Kick-off

LfL Studio

6

Tools•TMS• TDS• Total TPS• TMSS

• New role • Accountablity• Working habit

• Oobeya• Visual board

Using both Tools (Method-side) and Management (Human-side), we can create sustained improvement.

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Issue Board: Panel

•Project Background•Project Objective•Technical Spec•Project Organization

Potential Real Finish Record

Design

Engineering

Production

Marketing

Objective Metrics

Weight

Cost

Capital

Target

1 2 3 - 12

Target

1 2 3 - 12

Decomposition Area

Issue Board

Go

od

Go

od

Expected Output

Concurrent Schedule

Jan Feb Mar ---Dec

Action Board

Design

Engineering

Production

Marketing

Service

Projectorfor Virtual

Design Review or meeting

Expected Output

Prototype

R & DMain Board

2-issuesper week

Oobeya: Big Project Room • Progress check, only Green & Red

• All related members, Planning, Design, Production and Sales & Marketing

• Identify issues for management decisions

To

day

New concept

Drawingdelay

Line AImprove

3/5

Supplierselect4/3 Supplier

select4/3Supplierselect4/3

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Visualization Hierarchy—3 levels only

Oobeya: Hierarchy with Flow

Visualization of GEMBA (Work place)

Executive (Main) Board

Decisions

TargetsMetrics

Policy

Escalate two decision-ready

issues per meeting cycle

Escalate two decision-ready

issues per meeting cycleGlobal

development core team

Clinical Regulatory CMC - - -

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Increase

Before

Now

Ideal

Improvement

Improvement

Daily Work (Meeting, Decision

making, Team management, etc.)

Daily Work (Meeting, Decision

making, Team management, etc.)

Trouble shootingTrouble shooting

Improvement

(Product, Process and Personnel development)

Improvement

(Product, Process and Personnel development)

Daily WorkDaily Work

生産稼働維持生産稼働維持

Effective and Efficient

Decrease

Role of Managers

Manager: use more than 50% of time on improvement work.

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CEChief Engineer CE

Body

----

VP Marketing & Sales

Chassis

VP Engineering

Cost Quality Delivery

Prius

-20% DOK80%

On timeDec 15

Corolla ---

VP Production

VP Strategy

CEO

Chief Engieer of Toyota

Under-10%

DOK90%

1st protoMay 1

Matrix & Metrics Target break down

Only one VP to manage all Chief Engineers and functions

Co

st R

ed

uct

ion

Co

mm

itte

e

New navigation system committee

Platform Standardized committee

Executives lead cross-functinal committee. . .

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Sales

Profit

4 5 6 7 8 9 10 11

Target

Actual

Achievable

4 5 6 7 8 9 10 11

Target

Actual

Achievable

4 5 6 7 8 9 10 11

Target

Actual

Achievable

Weekly Actions

Schedule 2009 Jan Feb --- Dec

Issue Board

Cost

Productivity

Quality

DeliverProduct

Product AProduct B

- - -

Clear Targets Drive Results

Improve-ment

Planning

R&D

Production

Marketing

Sales

HR

Target this year

Current Status

Suitable Target

GapOnly 3-5 focused metrics

Clear and concise

activity and action

Only decision

ready issues

Oobeya creates a more action-oriented organization.

1. Improve products A2. Experimental process - - -

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Brain Activity

E-mail PhoneDialog

Oobeya

Communication Support tools

Individual MASS

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Process 1 Inspection

No defect

DeliveryProcess 2

No defect

Process 3

No defect

Process 4

No final inspection!!No final inspection!!

Concept of “Quality into Process”

Occurrence prevention

Outflow prevention

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5. Improved Design Review• Gate DR • Collaborative review• Open/closed issues

Outflow prevention at each gate

4. Quality assurance• Sustain standard work • Support improvement activity

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.

Design Check SheetEng Type Parts# Depart R Ｇ

Factory Car Type Name Outside design request #:Distribute Other Other Design change #:

Requested section Document, Memo CE agree GM Leader EstablishOrder Final

M D M D M D M D

Planning Cost Estimated Weight min min min Inspect drawing

Drawing Purchase, Fin

Change drawing Cost Planning Y - N Y - N Y - N with leader

Outside design $ Outside g Final audit of draw ingRecognized draw (+ - %) ( ) (+ - %) 1. No problem

Others Background, Objective 2. No confirmation, but no problem

Change spec Commonalization Reduce weight 3. There is issue, but goDurability, Reliability check Research Performance Productivity What is issue?

Item Count Check VA, VE Solution of Issue Service efficiency

Others

Continue hi-speed Explain:If it needed, Full throttle U/D Contents of change, Problems by GM Attachment Planning figuredistribute to Low sw eep U/D Engineering check sheetproduction Total pattern Objective, reason by GM Required specificationengineering Total temperature Performance Solution of Issue NV improve contact issue Others ( )

of each factory Low temperature Request from others (CE, Production) Commonalization Service efficiency Reduce weight

Ex main temp. Cost reduction SOC problem Others( )

Long driveHammering Contents of change 1.SOP phase

Stresses 2.Target cost

Resonance 3.Current

Dirt course 4.Supplier estimate

Hi-speed reliability 5.Gap

Heat test Anxious by change Countermeasure 6.Countermeasure

Body test PrototypeCAE Stress 1.Parts cost

2.Mold

3.Total

Reflect for test (Left table) Reflect to production Weight1.SOP phase

2.Target cost

3.Current

4.Supplier estimate

If necessary 5.Gap

internally, Later Recognized draw ing Plan ( / ) Plan ( / ) 6.Countermeasure

OR Follow up ( Y - N ) M D M D M D M D

Copy N Check grade Check CheckEngineer １

２GY １ No issue : ++ Regulation check require ( Y - N) Conf irm with Material dep: rubber, plastic, paint

No guessing issue : + Acceptance f or F/R, F/F General name of material( )

Guessing issue : - Parts list of OBD(On-board diagnosis) Assembly and serv ice(Line tools, serv ice manual)

No countermeasure: -- Saf ety issue (FH, Crash, OR, Leak) Row material, process with prod. Eng & supplier

Not accept: Blank Conf irmation Engineering check sheet Conf irm guideline of parts f itting (Internal E2-14)

Including all PPC items Drawing: parts table, request, label

The case of - and --, Satisf ied required f unctions by reliability matrix Change Drawing: old parts, ov ersea,

Write f ollow up date Keep dev elopment target by justif ication check sheet Parts table: Saf ety , regulation, maker option

Conf irmed by control design inf ormation matrix Pattent:requested (Y N), Fall f ault (Y N Analy )

Implement DRBFM Deliv ery location, change( )

Prohibited design change, conf irmed by real parts Env ironmental condition & inf luence

Conf lict of parts, distance, slack, f astened, seal Oil, water & gas temperature, f rozen, f uel, etc

Caulking, weld, press, insert choking

Information Roll out other model(Y N), Influence other organization(Y N), informed(Y N):Leader comments:

Total

#1: Each engine & using area has template Check sub-design check sheet of back side

(Revised '05 June) #2: Attach engineering check sheet

Cost

Item Item

Face EngineRelated

FinalOrder

Route: Design room -> Manager ->each CE 2- copy for group

7. Feedback sheet• Lesson and learn from past projects

1. Management• Policy deployment• Target and Metrics• Long-term planning• Daily implementation• Issue board for unexpected problemsOobeya for project

3. Standard Work• Design standards• Process standards• Structured template

Production DeliveryPlanning Design Test

Occurrence prevention

2. Education/ Training• Knowledge management• Multi-skilled engineer• Supplier training

“Quality into Process” tools Target:- Right on time- Right first time

Front loading tools

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Another Company

TOYOTA

Project leaders

- Problem solving- Decision making

DR-1 2-hours

1 month

3-6 months

All related project members

Internally prepare, sub-systemDR-1

>1 day

Internal Meeting1-hour

Internally prepare Internally prepare

Internally prepare

Marketing

Many long meetings- Just shared issues- No problem solving

Engineering


Supplier


Test

DR-2 1-hour

Comparison of Design Review

All related project members

Many meetings with subset of project members

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Process Metrics: Design Completion

# of Issue

Solved

Opened

Solved

Opened

Hold original date

Plan -> Development -> Delivery

Plan -> Development -> Delivery

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Key Points of 5-Why Procedure

What Happened

1Why?

Issue or Problem

Select themes to implement 5-Why

-Small or big hitter become same countermeasure-Quickly select, implement immediately

To get root cause, 5Why

2Why?

3Why?

4Why?

5Why?

Feedback sheet

Counter-measure

Oobeya Board

3Why?

4Why?

5Why?

4

3

5

67

8

9

Key points to implement

1. Include 3 participants from different organizations (ideal).

2. Train facilitator beforehand.3. Describe issue simply (only

one theme per answer).4. Be “specific”: 1st question is

very important.5. Stick to facts, don’t think

about solution (if you don’t, you may skip an important cause).

6. Stop when the 5-whys are complete or answers are mature.

7. Start new 5-why if you have multiple “because” answers.

8. Close “because” branch if you reached an answer during another why branch.

9. Identify countermeasures at each level of why (pick the best).

10. Relay findings to all members (like natural story and not from bottom to top).

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Selecting ”Right” Person for ICs

Technical strength

Success in leading large projects

Influence at the executive level

Strong collaborative skills

Real network within the organization

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LfL Studio to develop IC

1. QV&TEC’s 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

・・・

Own team

QVS & TECIC

IC

QVS & TEC & IC

Own team / other team

K/L

K/L Team

Team

Team

IC Target level 3 - 4

1.5 days/mo

…

LfL Studio for Kaizen Leader

Kaizen

Leaders

exercise

1. 2.

3. 4.

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To achieve target

IC Support & Development Tools

Basic project plan

IC Field Book: 250-p.

LfL Skill map: 5--gradesTMS Tools: 92

Progress auditProgram,Project

Function

SupportIntroduction Guidebook: by IC

Visual Board

SharePoint

LfL Studio

BackgroundObjective Policy Team

Target Action KPI Schedule

KGI KGI GraphKPI Graph

Theme : XXXXXX

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Progress Check Sheet

Progress Check Sheet: Oobeya/ Project room Section: Date:

1 2 3 4 5 Total

Summary by Project Leader

Progress chartMeasurement

metrics

Indication of priority with green & red

mark

Connection with Total R&D

Member's consistent

check

Objective, TargetAttached suitable contents

Shared with all members

Break down to sub-system

Logical link and connection

Consistently update with

related documents

Expected OutputVisualized with

drawing etc.Shared with all

members

Issues & countermeasur

es are clear

Decomposition of critical part

IT based screen

MetricsSelected prioritized metrics

Clear indication with same format

Update all results

regularlyPriority marks

Forecasted line with scenario

Decomposition / Scenario

Indication of current hot

topics

Connection with other

board

Scenario chart for difficult

issue

Connection with

quickening action

Arriving at 5-why level

Real products or model

Inside a project room, is it real

products

Some decomposition

parts

DR in the project room

Virtual toolsIntegration and

Standard

Quantity Concurrent Schedule

At earlier phase, join all

related member

Due date and milestone with

output / Process

Improvement

Capturing delay &

change for review

Sub-systems are

spontaneously breakdown

Connection with sub-system

schedule

Issue flow Kind etiquetteSelect 2-

issues are smooth activity

Contents & Countermeasure are mutually

kind

Spontaneous attitude for

solution

Potential issue is proactively

capture

From record, issue moving

for PDCA process

Human-side MeetingAgenda & schedule

Explain effectively and

efficiently

Kindly support leader & other

member

Front loading considered

opinion

Conscious of new role &

responsibility

DisplayVisual Control

Level1Visual Control

Level2

Quickening Visualization

Level1

Quickening Visualization

Level2Visualization

Total Grade

Category

Quality

Example of Check Sheet: Project

• Executive (Main) Board

• Project

• Team

• TDS

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Maximizing Value for Millennium

Select and train internal consultants (ICs) to lead implementation

Incorporate a journey-approach to training by creating an LfL (Lean for Leaders) Studio

Create infastructure to support ICs

Institute a disciplined approach to progress checks for teams and ICs

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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

Toyota Management System by Takashi Tanaka and Sharon Tanner

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Transcript of Toyota Management System by Takashi Tanaka and Sharon Tanner