Post on 01-Sep-2018
9/26/2012
1
Jeff Liker, PhDP f C ll f E i i• Professor, College of Engineering, The University of Michigan
• Association for Manufacturing Excellence (AME) Hall of Fame
• Winner of 11 Shingo Prizes• Author of…..
The Toyota Way to Lean Leadership: Leading the Way to Continuous Improvement
Jeffrey K. LikeryProfessor, Industrial and Operations EngineeringThe University of Michigan
President. Liker Lean Advisors
Keynote AddressLean Accounting Summit, OrlandoSeptember 13, 2012
NewestNewest
Liker Lean Advisors, LLCLiker Lean Advisors, LLC
9/26/2012
2
The problem!
• “Lean” has become a global movementg
• There is a somewhat standard tool set (VSM, kanban, cells, hoshin
kanri, standardized work sheets, kaizen events…)
• Applying the right tools to the right problem can produce results
BUT:
• The results are rarely sustainable
T t th d l l t h li th t l th
Liker Lean Advisors, LLC
• Toyota, the model, rarely teaches or applies these tools as they are
introduced by consultants
The Secret Sauce at Toyota is Developing Leaders who engage and develop people in problem solving
Example of Toyota Profound Teaching:
Gary Convis (NUMMI): “There has been a mistake in the body h Th hi l t th th i fshop. The machines are so close together there is no room for inventory buffers. We will continually shut down the plant.”
Toyota Sensei: “That was no mistake. Please fix the problems.”
Liker Lean Advisors, LLC
9/26/2012
3
TPS, The Toyota Way, and Driving toward a Vision:
It’s a System!
P l L P
Company Purpose
People
Lean Tools
Lean Processes
P bl
X O X O
LR
takt time
Liker Lean Advisors, LLC
Problem Solving
OP
1
OP
3
OP
2A
OP
2B
ta t t e
Lean Leadership Development Model
1 Commit to Self DevelopmentLearn to live True North values through repeated Learning Cycles
Let’sStartHere
2 Coach and Develop Others
4 Create Vision and Align Goals
Create True North visionand align goals vertically
TRUE NORTHVALUESChallenge
Kaizen Mind
Go and See
Teamwork
PD
CA
PD
CA
See and challenge true potential in others though self
Liker Lean Advisors, LLC
3 Support Daily KaizenBuild local capability throughout for daily Management & Kaizen
and horizontallyTeamwork
Respect PD
CA
PD
CA
others though self-development learning cycles
9/26/2012
4
PDCA Problem Solving is the Core of What Leaders should Learn and Coach
Liker Lean Advisors, LLC
From Toyota Way to Continuous Improvement
What is Leader Standard Work?• The repetitive activities are
designed to identify abnormal situations such as:– Non‐standard work – Non‐standard labor– Non‐standard inventory– Non‐standard output
• This is done where the work takes place, “The GEMBA”
O i d Vi l M t
Liker Lean Advisors, LLC
• Organized, Visual Management helps leader see abnormalities
9/26/2012
5
nt
Deep Dive
Today
AssetManagement
Board
HiringPlan
TPMSheets
Kanban
VendorSupport
Example of a daily round for
management
Mai
n
HR
CSR
Finance
War
ehou
se
StdWorkSheet
Process P f
Liker Lean Advisors, LLC
Shi
ppin
gR
ecei
ving
PlantMgr
Engr
PerformanceBoard
9
Leader Standard Work is a necessary step in the beginning stage until leaders develop so it is “the way they think and act”
Liker Lean Advisors, LLC10
9/26/2012
6
Summary of what Lean Leaders Need to Learn
• Managing from the gemba
• Developing themselves and others• Developing themselves and others
– Live the core values of the philosophy (respect for people and continuous improvement)
– Manage effectively from the gemba
– Become a role model for discipline problem l i
Liker Lean Advisors, LLC
solving
– Become a teacher and coach for disciplined problem solving
Lean Leadership Development Model1 Commit to Self DevelopmentLearn to live True North values through repeated Learning Cycles
PPDA
2 Coach and Develop Others
4 Create Vision and Align Goals
Create True North visionand align goals vertically
and horizontally
TRUE NORTHVALUESChallenge
Kaizen Mind
Go and See
Teamwork
Respect
PD
CA
PDA
PDA
DC
A
See and challenge true potential in others though self-development
Liker Lean Advisors, LLC
3 Support Daily KaizenBuild local capability throughout for daily Management & Kaizen
DC
ADC
A development learning cycles
9/26/2012
7
Coaching and Developing Others
• Learning to assess the current understanding and skills of other people
• Coaching others to develop expertise in disciplined problem solvingg p p p p g
• Breaking down tasks to give people appropriate assignments to increase their skill to the next level
• Teaching by questioning, instead of by telling
• Ability to build trusting relationships
• Interpersonal skills to balance praise with critical feedback
Liker Lean Advisors, LLC
Toyota Work Toyota Work Groups Groups at the Heart of at the Heart of Continuous ImprovementContinuous Improvement
Group Leader
TM TM TMTM TM
TeamLeader
TM TM TMTM TM TM TM TMTM TM TM TM TMTM TM
TeamLeader
TeamLeader
TeamLeader
Group Leader
Liker Lean Advisors, LLC
Ideal TL:TM Ratio= 1:5Group Leader (GL) = 1st level of managementTeam Leader (TL) = Alternates working production and leadership roles.Team Member (TL) = Production worker
Notes
9/26/2012
8
Lean Leadership Development Model1 Commit to Self DevelopmentLearn to live True North values through repeated Learning Cycles
PPDA
2 Coach and Develop Others
4 Create Vision and Align Goals
Create True North visionand align goals vertically
and horizontally
TRUE NORTHVALUESChallenge
Kaizen Mind
Go and See
Teamwork
Respect
PD
CA
PDA
PDA
DC
A
See and challenge true potential in others though self-development
Liker Lean Advisors, LLC
3 Support Daily KaizenBuild local capability throughout for daily Management & Kaizen
DC
ADC
A development learning cycles
Continuous Improvement means a little better every day:Visual Management Boards for Each Work Group (Toyota, Kentucky)
Liker Lean Advisors, LLC
9/26/2012
9
Lean Leadership Development Model1 Commit to Self DevelopmentLearn to live True North values through repeated Learning Cycles
PPDA
2 Coach and Develop Others
4 Create Vision and Align Goals
Create True North visionand align goals vertically
and horizontally
TRUE NORTHVALUESChallenge
Kaizen Mind
Go and See
Teamwork
Respect
PD
CA
PDA
PDA
DC
A
See and challenge true potential in others though self-development
Liker Lean Advisors, LLC
3 Support Daily KaizenBuild local capability throughout for daily Management & Kaizen
DC
ADC
A development learning cycles
Visual Metrics Aligned from Top to Bottom to meet Annual Plan Visual Metrics Aligned from Top to Bottom to meet Annual Plan (Hoshin Kanri)(Hoshin Kanri)
Assembly Division I
Plant-Wide
Door Trim Chassis Final
Stamp Body Paint Assembly
HoshinVision
Floor Management Development System:Trim Group 1
Main KPIs
P
Safety Quality
Productivity
Cost HR
. . . ..
Trim ShopTrim 1 Trim 2 Trim 3 Trim 4
.. . . .xx
xx
x
ProblemX
Shop KPIs
Liker Lean Advisors, LLC
ProcessKPIs
Sub-KPIs
.... ...... X
X X
X
.. ...
9/26/2012
10
Visualization &Striving to Meet Aligned Standards
ExecMgmtExecMgmt
Regional OPS Regional OPS
Plant LevelPlant Level
Who Forum Frequ’cy Detail
CEO, Group President, EVP
MOR 1/MthConsolidated Plant
Performance -vs- Prev Month and Budget
WhoWho ForumForum Frequ’cyFrequ’cy DetailDetail
Group VP, OP DIRConf Call
WeeklyConsolidated Plant Performance to StdKPIs -vs- Prev Week
WhoWho ForumForum Frequ’cyFrequ’cy DetailDetail
Plant ManagerDirect
Run MtgDaily
Summary of EachProduct Area to STD
For Each KPI
“Workers are far more committed and do a far better job when they understand how they can have a
Liker Lean Advisors, LLC
Production Line
Production Area
Who Forum Frequ’cy Detail
Area ManagerShift Mtg 1/Shift
Summary of Each
STD for each KPI
Who Forum Frequ’cy Detail
SupervisorProd Board
1/HRPlan -vs- Actual for
Production Pace
For Each KPI
Product Line to
positive impact on the outcome.”--Gary Convis
Lean Leaders are at the gemba, Asking Questions, listening thoughtfully
Bad news first
Every concernis legitimate
Let’s focus on facts
Liker Lean Advisors, LLC20
And figure this outtogether
9/26/2012
11
Company Hoshin
Hoshin Kanri Aligns Goals & Develops People Horizontally and Vertically
Function Hoshin
Division Hoshin
Department Hoshin
Horizontal Alignment
Vertical Alig
Liker Lean Advisors, LLC
Individual Priority Themes
OJDOJD
P/SP/S
gnment
KEY: Concepts: OJD = On-Job-Development P/S = Problem Solving
PLAN Hoshin Development- Standardize to Daily Mgmt- Reflect to next Hoshin
Hoshin Kanri Cycle
DOACTIONHoshin
Implementation
PDCA of Hoshin Kanri
Liker Lean Advisors, LLC
CHECK
Implementation
Hoshin Evaluation
Start Here
9/26/2012
12
Hoshin Kanri and Floor Management System Harnesses the Hoshin Kanri and Floor Management System Harnesses the Energy of Work GroupsEnergy of Work Groups
1. What do we need to do?(Company Department Group)
Hoshin Objectives
2. How should we do it?(Process)
KPI’s
Floor MgmtDaily Activities
Liker Lean Advisors, LLC
3. How are we doing?(Results)
Main KPISub-KPI
Process KPI
Hoshin
Daily Mgt with Kaizen
e (K
PI)
PDA
PD
CA
Relationship between HK & Daily Management
DM with no HK
Perf
orm
ance C
PDA
PD
CA
PD
CA
PD
CA
Liker Lean Advisors, LLC
Time
- Both are essential - Maintain good balance
HK with no DMC
9/26/2012
13
Comparison between MBO and Hoshin Kanri
Management by Objectives Hoshin Kanri
Short-Term, No Philosophy Long-Term, Strong Guiding PrinciplesPrinciples
Results Oriented Evaluation of Effort
Concerned with Results and Process with Focus on People
Development
Top down Communication
Top down Direction Setting and Bottom-up flow of Information and
means
Liker Lean Advisors, LLC
Directive Participative
Primarily Authority Oriented Primarily Responsibility Oriented
HK Drives Kaizen at all Levels:Toyota Business Practices for Warranty Reduction
TBP Step Warranty Reduction Problem Solving
1. Clarify the Problem vs Ideal State
Ideal is customers who are completely satisfied. Currently some customers are inconvenienced by automotive problems.
2. Grasp the Present Situation and See the Gaps
Too many customers are bringing in Toyota vehicles for warranty work which costs them time and satisfaction and costs Toyota money.
3. Breakdown Problem and Set Warranty problems originate in product development (e.g., poor error proofing), are Targets contributed to in manufacturing (e.g., errors) and discovered in the field.
Immediate focus will be on manufacturing through to customer feedback and response. Target=60% reduction.
4. Analyze Underlying Causes Manufacturing--poor understanding of potential errors throughout manufacturing process and miss defects in inspection.
Feedback and response--Problems in field not well diagnosed and communicated and requests for changes are diffuse and ineffective.
5. Develop Countermeasures Manufacturing--Built-in Quality with Ownership at every work process + improved inspection process.
Feedback and response--System for finding root causes of warranty returns and streamlining feedback to appropriate engineering design function.
Liker Lean Advisors, LLC
6. See Countermeasures Through Deployed through global network of leaders who take responsibility.
7. Monitor Results and Processes Monitored closely over seven years with continual adjustment.
8. Standardize and Spread Many new processes were standardized in manufacturing, engineering and sales. Work progressed further on root cause: better training and development of engineers and standardization in engineering, built--in quality with ownership in manufacturing, and an improved warranty reporting system in sales.
9/26/2012
14
North American Plants Overall Warranty at 3 Months in Service
Liker Lean Advisors, LLC
Percent Annual Warranty Reductions
Strong Lean FoundationLong-Term Strategy
• Individual initiative
• People developmentp p
• Grow through challenging assignments
• Strategic roadmap for success“Management has no more critical role than motivating and engaging large numbers of people to work together toward a common goal; defining and explaining what
Liker Lean Advisors, LLC
to a d a co o goa ; de g a d e p a g atthe goal is; sharing a path to achieve it; motivating people to take the journey with you; and assisting them by removing obstacles.”