Jeff Liker, PhD - Lean Frontiers · Jeff Liker, PhD • PfProfessor ... Plant Shipping Receiving...

9/26/2012

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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

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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.”


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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


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


3 Support Daily KaizenBuild local capability throughout for daily Management & Kaizen

and horizontallyTeamwork

Respect PD

CA

PD

CA

others though self-development learning cycles

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PDCA Problem Solving is the Core of What Leaders should Learn and Coach


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


• Organized, Visual Management helps leader see abnormalities

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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


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”

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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


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




and horizontally


Kaizen Mind

Go and See

Teamwork

Respect

PD

CA

PDA

PDA

DC

A

See and challenge true potential in others though self-development



DC

ADC

A development learning cycles

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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


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


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

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PPDA




and horizontally


Kaizen Mind

Go and See

Teamwork

Respect

PD

CA

PDA

PDA

DC

A




DC

ADC


Continuous Improvement means a little better every day:Visual Management Boards for Each Work Group (Toyota, Kentucky)


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PPDA




and horizontally


Kaizen Mind

Go and See

Teamwork

Respect

PD

CA

PDA

PDA

DC

A




DC

ADC


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


ProcessKPIs

Sub-KPIs

.... ...... X

X X

X

.. ...

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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


Production Line

Production Area


Area ManagerShift Mtg 1/Shift

Summary of Each

STD for each KPI


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

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And figure this outtogether

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Company Hoshin

Hoshin Kanri Aligns Goals & Develops People Horizontally and Vertically

Function Hoshin

Division Hoshin

Department Hoshin

Horizontal Alignment

Vertical Alig


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


CHECK

Implementation

Hoshin Evaluation

Start Here

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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


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


Time

- Both are essential - Maintain good balance

HK with no DMC

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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


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.


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.

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North American Plants Overall Warranty at 3 Months in Service


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


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.”

Jeff Liker, PhD - Lean Frontiers · Jeff Liker, PhD • PfProfessor ... Plant Shipping Receiving...

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