Difference in Leadership Roles

Improvement

FirefightingDaily WorkImprovement

Daily Work FirefightingBAD

Better

I love trouble shooting!

I really feel like I am doing

something!

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Daily WorkImprovementIdealState

Develop others and self, in all activities

Sam MacPherson, Founder,

The Lean Leadership Academy™

(910) 217-LEAN

Twitter @LeanLeaderWay

Poll QuestionHow Many of You are New to

Obeya

Experience Level

• No Experience – I am here to learn and apply?

• Some Experience?

• Struggle with my current understanding and application?

• Experienced in a version but ready to expand based on other business process needs?

What We Will Cover Today

• What is an Obeya

• Obeya as Lean Culture Accelerator

• Obeya as a Leadership Development Platform

• Types of Obeya in Toyota

• Connecting Hoshin Kanri or Strategy Management to Daily Management

• How to Get Started

• Organize for Flow and Connections

• Your Questions

What is an Obeya?

BIG ROOM

A Room with a View

• The Obeya, or “The Big Room”, dates back to its early days of Toyota, in Japan; where office space was premium.

• Often, managers and staff shared these are large open office areas without the isolationism created by offices and cubicles remove barriers.

“Information and Material Must Flow.” A “No Cubicles or Walls” Obeya environment reduces waste in “Digital Lead-time,” Improves

Face-to-Face Communication, Problem Awareness and Team-member Engagement in Sales, Administrative, Engineering, Production Planning, Manufacturing and

Distribution Operations

Obeya “No Cubicles Walls” Environment

What is Not an

Obeya

Obeya Will Require a Culture Shift

We equate Success with having an

office. Having a high-floor, corner offices

is the Ultimate Statement of Success

The Theory behind Obeya is Based on a Simple Idea

“Dedicate Space and Time to Coordination and Problem-Solving, then organizational barriers will

be minimized.”

“If a problem is left unsolved and the supervisor is uninformed, neither Kaizen nor Cost Reduction can be applied. When there is trouble, stopping the machine means also identifying the problem. Once the problem is clear, Kaizen becomes possible.”

Taiichi Ohno,Former Executive Vice PresidentOf Toyota Motor Corporation

Why Must All Problem be made Known and Communicated?

Obeyaand the Kaizen Mindset

“Having (a) proper awareness of problems and an extremely low tolerance for the current condition

is a proper attitude.”

-Isao Kato: Father of Standardized Work and Toyota’s Supervisor Leadership Development Program

Obeya and Managing to See

• See the vision

• See Management at a glance

• See the Organizational Perspective of Processes

• See the Gaps (exceptions)

• See the Disconnects

• See what needs to Change

• See what support is needed

• See Action

Types of ObeyaLayouts

Focus Obeya Floor Mgmt &

Development Team Problem

Solving Jishuken(Mgmt Study Group) Dept. Hoshin

Business Process Layout ObeyaDaily Management, target setting, trend analysis, priority setting and action planning, status review

Global ObeyaWhen developing a new vehicle, managers responsible for decision making in design, production engineering, and manufacturing gather in one place to shorten lead-time through real-time communications & simultaneous engineering

Global Camry Launch

TMM Australia

An Obeya for Every Level

Toyota FMDS Team Room

Toyota Industrial Equipment

Mfg (TIEM) Operation

Obeya

Large Complex Obeya

• Large Open Office areas

• Accommodates dozens of team-members

• Manufacturing Operations

• Sales and Finance

• Design Engineering

• Manufacturing Engineering

Potential Issues:

• Interoperability of IT between operations

• Sensory overload

• Information Blindness

• Risks being too formal and rigid

Toyota Motor Sales and Finance

Small-Focused Obeya• Focused with a defined purpose

• Specific Projects

• Jishuken “Study Group” or Team room

• Problem analysis away from noisy gemba environment

• Limits group size by design

• Economical

• Closed rooms melt down barriers

• Encourages idea contribution

• 5-7 Team-members accelerates trust building

How Should I LayoutOur Obeya for Flow?

It Depends…

Types of ObeyaLayouts

Customer First Cycle

Voice of

Every

Customer

And

Partner

Obeya in Sales Operations• Introduced by TMS VP Hiroaki

Sunakawa, “Can the Obeya concept work in Sales in the United States?’

• Follows a “Customer Focused Plan-Do-Check-Act Cycle.

• The Obeya is organized to reflect the ownership lifecycle, beginning with the Voice of the Customer

• Reflects the Customer’s Experience

Toyota Motor Sales - NA

Toyota Motor Sales Thailand

Shopping

Product Design & Quality

Sales and Financing

Vehicle Delivery

Service Warranty,

MaintenanceVoice of

The

Customer

The Toyota “T” Approach“Mile Wide-Inch Deep; Inch Wide-Mile Deep”

Process by Process Hoshin Targets for “Customer First” Value Creation Business Process Flow

Bu

sin

ess

Pro

cess

Tre

nd

s, G

aps,

An

alys

is,

Pla

ns,

Act

ion

s, a

nd

Res

ult

s

HoshinTarget

“GTS”Customer

First Trends

Analysis &

Plans

Actions &

Status

Results Tracking

Customer First Cycle

Our End User

Our ”Next Process”

Our Dealers and Merchants

Our Shareholders

Our Suppliers

Our People

Our Community

Our Company

The Lean Strategic PillarsCulture of Collaboration

The Voices of Our Stakeholders

Going Places Together;

Pursuit of Perfection in Stakeholder Relationships

The Toyota “T” Approach“Mile Wide-Inch Deep; Inch Wide-Mile Deep”

Process by Process Hoshin Targets for “Customer First” Value Creation Business Process Flow

Bu

sin

ess

Pro

cess

Tre

nd

s, G

aps,

An

alys

is,

Pla

ns,

Act

ion

s, a

nd

Res

ult

s

HoshinTarget

“GTS”Customer

First Trends

Analysis &

Plans

Actions &

Status

Results Tracking

Identify Information and Material Flow

GAPsIn Process to Process

ConnectionsBetween

Customers and SuppliersProcesses

With Weak PointManagement

Hoshin ManagementObeya at Toyota

• Hoshin Vision: 3-5 Years +

• Strategy Management Annually, Semi-annually, Monthly, Weekly

Toyota Operations Obeya

Daily Operations Obeya at TimkenOut on the Shop-floor

Flow in the Lean Enterprise Business Process Obeya

Obeya Visual Management of

Value Streams:

Daily Management of the

Enterprise follows and monitors the

Expected of flow of Information,

Material, Talent and Resources.

There are no static displays.

Leaders “touch” all activities and act

on anything that does not flow as

expected.

Obeya Center-line Flowat LeanCor

Obeya In Logistic and ServiceLean Office and Supply-chain

Product Design/Design Review Process Layout Model

Obeya in Lean Product Development and Design

• Collaboration here is critical

• Most projects are Front loaded

• At Toyota, Concurrent Planning does not allow for Delay – most IT tools not helpful

• Room Layout Follows a (CAP-DO) flow

Check – Adjust – Plan – Do Cycle

• Visual Process Flow for Information

• Identify bottle necks and collaborate to implement Countermeasures

• Uses Post-it’s with few colors to eliminate confusion and ensure meaning understood

• Allow only two issues a week per team –potential solution must accompany issues

• Ambiguity is not allowed in this type of Obeya

Red or Green; No Amber

Focused Obeya PDCA & Problem Solving Process Layout

PDCA Wall to Wall Flow is for Problem Solving

Funnel GTS-PDCA Flow Down

Funnel GTS-PDCA Flow Down

Funnel/HopperGTS-PDCA Flow

Toyota’s Floor Management and Development System Obeya

Connects the Hoshin to the Genba

Toyota Hoshin Management

By Shift through

Floor Management & Development System

Obeya Accelerates Lean Culture

Transformation

Can an Obeya AccelerateCulture Change?

Obeya Provides a Platform for Social Networking

Humans are Hardwired to Socialize

Obeya Provides a Platform for Social Networking

Humans are Hardwired to Socialize

“The whole purpose of the Obeya at TMMK

is to get people CONNECTED”- Ernie Richardson

Obeya Accelerates Lean LanguageWhich Accelerates Lean Culture

Leader Development

The Obeya accelerates Leader and People Development. Most leaders

Will be in a leadership role for over 10 years before getting training

Obeya and Building a Lean Culture

“Every time we get together, in the Obeya, and speak the language of the Toyota Way, practice our routines for daily

planning, management, and problem solving, gather to hold each other accountable to our shared expectations, or share our reflections and learnings, as leaders, we are creating our Lean Culture. Then, as leaders, we take that culture to the

Genba.”

AND, there is Always Room for

In Communication and Collaboration!

Thank You For Allowing Me to Share

What Questions Can I Answer for You?