Jeffrey Liker-TBM Toyota Way Culture

Jeffrey K. LikerProfessor, Industrial and Operations EngineeringThe University of Michigan

TBM Lean Leaders ConferenceApril 26, 2008

Learning from Toyota:Creating a Culture of

Continuous Improvement

© Copyright Jeffrey Liker

Lean is about obtainingbrilliant results from brilliant processes

By focusing on (Jim Womack & Dan Jones):ValueValue streamsFlowPullPerfection

By eliminating waste from all processes


how

Sounds good, so let s do lean !


Let s Implement theLean System

Let s create aLean Office

to implementa system

We need to adaptTPS to our business

And have aroadmap

to implementModel lines Wall to wall stability


Problem with Implementing the system

We get systematic change

Impressive model lines and wall to wall stability

BUT:

Still disappointing budget results

Hard to spread beyond model line

Lots of conflict between the Lean Excellence Office and line management

Hard to sustain

But


For ongoing success Integral role of shared culture

A culture of quality people working

together with shared (Toyota) values

to continuously improve.

Answer: Build a Culture of Continuous Improvement


Culture is an integral part of the system: It is not just brilliant

processes, but exceptional people in a supportive culture

Process Quality Stability

Product Value Stream

InputsCustomer

Q,C,D

Culture


People are the Heart and Soulof the Toyota Way

The Toyota DNA =

PRODUCT VALUE STREAM

PEOPLE VALUE STREAM


Is shared culture necessary for Lean?No

1. Initial low hanging fruit stage

2. If a lot of supervision will be available

3. If just better Q,C,D are good enough

Yes

1. If you need highest Q,C,D as standard

2. If you want voluntary help - when Andon goes red!

3. If you want continuous improvement

4. There will never be enough managers for total quality!


What is Culture?

Norms and BehaviorsWays of acting considered normal, authorized, habitual or taboo.

ArtifactsPhysical results, materials,operating concepts.

Beliefs, Assumptions, ThinkingExplicit beliefs, implicit cultural assumptions, and paradigms of thought

What we see

What drives us


What is Shared Culture?

Jane

Bill

Joe

Supervisor

Conflicting or Disengaged Culture

Shared Values and Direction

Forces of Entropy cause Culture Decay

Bill

Supervisor

Joe

Jane

DirectionValues


Toyota s Culture


Toyota s Cultural Roots

Group identity as rice farmers in Japan

Samurai Tradition - Honor and the leader protects

Zen - from empty Mind comes new insight

Confucius - Honor the community, rules

Deming - Most problems are managementissues, apply quality tools

Toyoda Family - strive to contribute (looms)

Henry Ford - Pragmatism, fair to working class, integrated flow


What are inspirational values to Eastern Culture?

The Great Wave Off Kanagawa


What are inspirational values to Western Culture?

Rugged, self reliant, individualist winners !

Marlboro Man


Fluid, process view, Together we can adapt

and learn to succeed

Concrete, Material view, Can do -results oriented

Life and Work

Individual enmeshed in group, mutual obligations

Individual primary, strong ego, winners and losers

Role of Individual

Community partners needed to survive

Rugged, self reliant, individualist winners

Interdependence

Standards, experiment, adjustment

Project plans and financial controls

Change

Partially Concealed, Both Awesome and Threatening:Human adapts

Rational, Logical: Humanity exploits

World

West Vs. East


Two Culture Coaching Processes

On-Job Development Coaching1. What is the standard? what should be happening?2. What is happening now? (Go to Gemba if needed)3. What is the biggest problem? Agree on urgency?4. What is the next step? What action is needed?5. Gain commitment6. Check on progress and adjust

Mentoring Values1. Clarify the event or values in question2. Reflect on the Thought Cycle and Experience3. Raise the level of self-awareness thru dialogue4. Discuss alternative Thinking or Values5. Ask individual to self reflect (Hansei)


What to Coach? Toyota Business Process (TBP)

Thorough communication

Involve all stakeholders

Standardize successful processes

Think and act persistently

Follow each process with sincerity and commitment

Monitor both results and processes

Visualization (Mieruka)

Judgment based on facts

See countermeasures through

Customers First

Always Confirm the purpose of your work

Ownership and responsibility

Clarify the problem

Break down the problem

Target setting

Root cause analysis

Develop Countermeasures

Concrete Actions Drive and Dedication (Principles)

P

C

D

A


The Quality People Value Stream to Build a Lean Culture

Commitment and Tools for Stable Employment

Powerful HR Supports Fair and Consistent

Policies and Practices

Slow Promotion & Rewards for

Teamwork

Hoshin Kanri Policy Deployment

Work Groups & Team Problem Solving

Clean (5S) and Safe Workplace

Two-Way Communication via Visual Mgmt

Servant Leadership

Organizational Supporting Processes

Human Resource Management

People Supporting Processes Daily Management

Building Culture and People the Toyota Way:

The Human System

for Lean Management

Quality People Value

Stream

INPUTS Toyota

Philosophy & Values, Toyota

Production System

Principles,

Pool of Eligible Human

Resources

OUTPUTS Exceptional

teams working to

continuously improve based on shared Toyota Values

-Roles -Training/ Coaching

-OJD

Engage

Enroll

Able

Performing

Committed

Plan

Do

Check

Act

Respect for People & Continuous Improvement via Plan-Do-Check-Act

-Recruitment -Selection

-Initial Orientation

Attract

Develop

Trainable

--Follow standards --Improve standards --Problem Solving

ID with Team

PURPOSE Long-Term

Mutual Prosperity by

producing high quality, low cost, and

on-time products

--Career Development

-Community/ Family -Environment

--ID with Company

Practice


do itlearn it Practicebe it

commit

Able1. Clear Roles2. Training3. Coaching4. OJT

Perform1. Standards2. Problem Solve3. Identify with

Team

Committed 1. Values2. Community3. Environment4. Company

PDCA

Inputs

Quality People Value Stream

Inputs1. Purpose2. Philosophy3. TPS Principle4. Eligible People

Engaging People with the Real Place

Develop Engage InspireSelect


Purpose is Central to Philosophy

Internal External

People

Business

Toyota s Purpose

Learning Community

Contributor to SocietyLean Systems

Improving Partners


Toyota s Purpose

Survive as an organization by improving and evolving how we make

good products for customers.



commit



Team


PDCA

Inputs






Characteristics Toyota Selects For

Team Orientation

Initiative

Communication Skills

Problem Identification Skills

Problem Solution Skills

Practical Learning Skills

Adaptability

Specific Technical Competencies Needed


Original Recruitment to Selection Process for Georgetown, Kentucky

Ph

ase

1A

dver

tizin

g &

Rec

ruitm

ent

Ph

ase

2O

rient

atio

n, A

pplic

atio

n &

Tes

ting

Ph

ase

3A

sses

smen

t Cen

ter

142,000Applicants

28,000Passed

12,000Passed

Ph

ase

4F

inal

Scr

eeni

ng

8000Passed

Ph

ase

5A

sses

s H

ealth

&R

efer

ence

s

6000Job Offers

Ph

ase

6P

roba

tion



commit



Team


PDCA

Inputs






Highly Organized TrainingTMMK NEW HIRE TRAINING SCHEDULE

ASSEMBLY NEW HIRE TRAINS WITH PROFESSIONAL TEAM MEMBER

TIME NO O.T. NO O.T. NO O.T.

1st / 2nd MONDAY WEDNESDAY FRIDAY

5:15 - 7:15p CQPO

Intro to Quality

Circles

CQPO

Review/Testing

Modules 1-4

7:15 - 7:30p BREAK BREAK JIT primary process OJT 25% primary

BY PRODUCTION T/L WITH PROFESSIONAL 7:30 - 9:45p

OJT 25% primary TEAM MEMBER

9:45 - 10:30p LUNCH LUNCH JIT secondary process OJT 25% secondary

BY PRODUCTION T/L WITH PROFESSIONAL 10:30p - 12:30a

OJT 25% secondary TEAM MEMBER

12:30 - 12:45a BREAK BREAK

12:45 - 1:05a Travel to Fitness

Facility Travel to Fitness

Facility Core / Cardio Work Conditioning

1:05 - 2:00a

GPC TRAINING IN ASSEMBLY

Circuit Circuit

EACH NEW HIRE IS TO FILL OUT THIS FORM DAILY DURING 2ND

BREAK (5 MINUTES OF COMPANY TIME) AND LEAVE IT WITH THEIR G/L. EACH NEW HIRE IS TO RETURN THIS TRAINING SCHEDULE TO HFC STAFF BY F RIDAY.

Did you train with a professional team member?

Y / N Was the training schedule followed?

Y / N

Are you experiencing any discomfort performing processes? If yes, did you report it to your TL or GL?

Y / N

Is additional training needed?

Y / N

NEW HIRE COMMENT SECTION

DAILY NH SIGNATURE

GROUP LEADER / TEAM LEADER

COMMENT SECTION (Source:

Precision Staffing Document, TMMKÕs Temporary Contractor)


Human Resources Development Modes

OJD TJIÓ

Classroom Training

Personal Training

Opportunities

Motivation & Practical Application


Step-by-Step Progression to Stable Job Performance

ID Fundamental Skills

for a

Class

of

jobs

Job Breakdown to Work Elements

for Specific Job

Use Toyota Job Instruction (TJI)

to

Train Associate

Train in Fundamental Skills off

of

Line

(GPC)

Follow-up & Support until Masters

Job

Continuously

Improve Job &

Job Instruction

Off-Line Skills Training

On-Job- Development


Global Production Center Station to Teach about Center of Gravity

Center of Gravity

Center of Gravity moves up 1/9 away from the open space toward the weight

These two missing cancel each

other out

Center of Gravity moves 1/9 of the way up toward the

weight

These two missing cancel each other out


GPC Greatly Improves Instructional Efficiency

Benefits: Instruction efficiency 6-10 times greater


How Do we Develop People?Research in occupational training

shows that individuals retain about:

10 % of what they read

20 % of what they hear

30% of what they see

50% of what they hear and use

70% of what they say

90% of what they say and do

10 % of what they read

20 % of what they hear

30% of what they see

50% of what they hear and use

70% of what they say

90% of what they say and do


Job Instruction Training is designed to teach

people how to do a particular job by:

Hearing (what to do)

Seeing (how it is done)

Using (what was learned)

Saying (what was learned)

Doing (the task)

REPEATEDLY !!

Job Instruction Training is designed to teach

people how to do a particular job by:

Hearing (what to do)

Seeing (how it is done)

Using (what was learned)

Saying (what was learned)

Doing (the task)

REPEATEDLY !!


The Toyota Job Instruction Training Method

Step 1: PREPARE WORKER

Step 4: FOLLOW UP

Step 3: TRY OUT PERFORMANCE

Step 2: PRESENTOPERATION

Plan

DoCheck

Action

Major Steps

Key Points

Reasons

The Four Steps of TJI

NOTE: The JI method originated with the American Training Within Industry (TWI) program.

Bumper Trimming Job Breakdown Sheet

JOB BREAKDOWN SHEET Phil Turek Todd Chambers

DATE: 7/20/2006

AREA: Bumper molding JOB: Rear bumper molding operator - Trimming WRITTEN BY: Phil Turek

SAFETY: Injury avoidance, ergonomics, danger pointsQUALITY: Defect avoidance, check points, standardsTECHNIQUE: Efficient movement, special methodCOST: Proper use of materials

1. Hold flash straight up and tight 1. Makes trimming easier

2. Trim away from body and arm 2. Prevents injury- cuts

Trim flash ball on left side 3. Blade flush with top surface 3. Visible surface, flash line 1mm max.

1. Start on trim line- 1 mm variation 1. Visible surface- quality spec.

2. Blade must be perpindicular 2. Angled cut not acceptable

Trim left side core flash 3. Follow trim line- 1mm variation 3. Visible surface- quality spec.

4. Curving motion while trimming 4. Technique to make trimming easier

1. Hold gate up horizontally 1. Prevents twisting of bumper during cut

2. Rest blade on bumper edge horizontally 2. Helps make cut horizontal and straight

Trim gate flash 3. Angle knife handle back (blade is horizontal) 3. Cut is easier

4. One continuous movement 4. Stopping will cause a jagged cut

1. Hold flash straight up and tight 1. Makes trimming easier

2. Trim away from body and arm 2. Prevents injury- cuts

Trim flash ball on right side 3. Blade flush with top surface 3. Visible surface, flash line 1mm max.

1. Start on trim line- 1 mm variation 1. Visible surface- quality spec.

2. Blade must be perpindicular 2. Angled cut not acceptable

Trim right side core flash 3. Follow trim line- 1mm variation 3. Visible surface- quality spec.

4. Curving motion while trimming 4. Technique to make trimming easier

L EAN ASSOCIATES, INC. www.leanassociates.com

Team Leader Supervisor

MAJORSTEPS

Step # 1

Step # 2

Step # 4

Step # 5

KEYPOINTS

REASONS FOR KEYPOINTS

Step # 3


Importance of Key Points

Key Points are what people really need to know in order to

successfully complete the job task.

The single greatest determinant of a successful training outcome

(employee can learn the job quickly and perform with no

injuries and with minimal problems) is the ability to identify and

convey CRITICAL Key Point information

Key Points are what people really need to know in order to

successfully complete the job task.

The single greatest determinant of a successful training outcome

(employee can learn the job quickly and perform with no

injuries and with minimal problems) is the ability to identify and

convey CRITICAL Key Point information


Auditing Standardized Work

How it works:Group leader checks one process/day

--cards contain questions--notes discrepancies/countermeasures--move card to slot in next row--turn card dark side out if discrepancy

Assistant Manager checks daily--randomly select card--obtain standard work sheet--go through audit with group leader

**NUMMI has 90+ boards throughout plant


Manager Level

Focus on Shop Floor and Systems Improvement. Tools: Visual Factory & TBP

TBP

Team Leader and Group Leader

Manage Standardized Work, Process Improvement and Develop Problem

Solving Skills. Tools: FMDS, TBP & OJD

Team Member

Focus on Fundamental Skills & Standardized Work Tools: Skills Training, Job Instruction, Standardized Work

and 5-S

General Manager and VP Level

Business Planning and Policy Deployment Tools: Hoshin Planning & Toyota Business Practices (TBP)

Leaders at all Levels Support Value Added Process


Multifunction Training Chart for Team Leader to Prepare for Future Group Leader Role

Name: Jeff Key Mike Mary Mark Margaret0%

Dept.: Assy 50%100%

Date: 1/2/12

Process or Skill

1 Team 1 Processes

2 Team 2 Processes

3 Team 3 Processes

4 Team 4 Processes

5 Time/Attendance

6 Safety Task Force

7 Lead Quality Circle

8 Cost Committee

9 Scrap processing

10 TPM on equipment

Team Leader NameGL: (Group Leader Name)



commit



Team


PDCA

Inputs






The Silver Bullet of Change

ProblemSolving

and Kaizen

Inspires Develops

PracticesEngages

Joint Problem Solving and Kaizen are the driving force of a functioning daily lean culture!


Daily Problem Solving Culture

It is this constant coaching of the problem solving process that develops the culture and level of skill that Toyota has been able to achieve. Having the opportunity to practice and develop daily problem solving is the Toyota Culture. Every deviation is seen as a chance to problem solve.

Toyota Culture p. 186


TPS and Toyota Way

Lean Processes Surface Problems

Improve management standards

Problems openly Identified

Solve problems one by one

How?

JIT Standards


Mentor-Mentee Chain

Goals Targets, MetricsDialogueGo and seeOpen QuestionsNo BlameSystem ProblemsPDCA5 Why?One Page A3 sRegular Checks against PlanGo and SeePlease TryJust Do Now

What Should Be?What Is Happening? Biggest Problem?What is Next Step?

All practice the same basic patterns ofProblem solving, dialogue, and mentoring values everyday



commit



Team


PDCA

Inputs






Lean Leadership


Jeffrey Liker, The Toyota Way

Upper Management Role


Make people think:

By going to the workplace

Observing operations with them

Showing typical problems

Outlining typical solutions

We were asked to stand in a circle for 1 weekand come up with 240 improvements andImplement most of them.

--Toyota Japan TPS Training


Role of ManagementQuestion, Challenge, Do Not Give Answers!

To keep kaizen going

Give people problems to solve and follow up

Look at problems revealed day to day, hour by hour

Top management must go to the workplace


Role of lean coach

Use the lean tools to teach managers and their teams

To visualize problems

Experiment

And solve them

Teamwork!


To develop employees by problem solving

P D

C A

Plan - Do - Check - Act


Traditional Western leadership compared to Toyota leadership

Traditional Western Leader Toyota Leader

Quick Results Patient

Proud Humble

Climb Ladder Rapidly Learn Deeply and Horizontally and gradually work way up ladder

Results at all Costs The Right Process will Lead to the Right Results

Accomplish objectives through People

Develop People

Overcome Barriers Take Time to Deeply understand Problems and Root Cause before

Acting Manage by the Numbers Deeply understand the process


HR Supports the People Value Stream

Commitment and Tools for Stable Employment

Powerful HR Supports Fair and Consistent

Policies and Practices

Slow Promotion & Rewards for

Teamwork

Hoshin Kanri Policy Deployment

Work Groups & Team Problem Solving

Clean (5S) and Safe Workplace

Two-Way Communication via Visual Mgmt

Servant Leadership

Organizational Supporting Processes

Human Resource Management

People Supporting Processes Daily Management

Building Culture and People the Toyota Way:

The Human System

for Lean Management

Quality People Value

Stream

INPUTS Toyota

Philosophy & Values, Toyota

Production System

Principles,

Pool of Eligible Human

Resources

OUTPUTS Exceptional

teams working to

continuously improve based on shared Toyota Values

-Roles -Training/ Coaching

-OJD

Engage

Enroll

Able

Performing

Committed

Plan

Do

Check

Act

Respect for People & Continuous Improvement via Plan-Do-Check-Act

-Recruitment -Selection

-Initial Orientation

Attract

Develop

Trainable

--Follow standards --Improve standards --Problem Solving

ID with Team

PURPOSE Long-Term

Mutual Prosperity by

producing high quality, low cost, and

on-time products

--Career Development

-Community/ Family -Environment

--ID with Company

Practice

HR Supports aSafe, Secure, andFair Environment


Mutual Trust Connects theProduct and People Value Streams

JUST-IN-TIME

STABILIZATION

VISUALIZATION

STANDARDIZATION

TOYOTA CULTURE

PRO BLEMS

IDENTIFIED

PRODUCT VALUE

STREAM

PEOPLE VALUE

STREAM

MUTUAL

TRUST

PRO BLEMS

SOLVED

Lean Structure and Systems

Culture


Stable Workforce Planning is the Foundation of Mutual Trust: Key Methods

Flexible Staffing:

Flexible workforce (broad job classifications, cross-training, job rotation)

Part-time workforce and freshman jobs

Flexible daily overtime (2 shift system)

Planned production Saturdays

Flexible Factories:

Multiple cars on same line

Multiple factories make products (e.g., Japan and US)

Leveled schedule

Zero changeover time (e.g., paint, body shop)


Two Shift Production with Overtime Capability Provide

Flexible Production

Shift Production Time Overtime Capability First 6:30 A.M.

3:15 P.M. (with 45 minutes unpaid lunch)

3:15 P.M.

5:15 P.M.

Second 5:15P.M.

2:00 A.M. 2:00 A.M.

4:00 A.M. Third Shift Maintenance

None

utilized for Preventative Maintenance

None for Production 4:00 A.M.

6:30 A.M.


Example NEED/HAVE monthly report

Body Paint Assembly Quality Total Needed # of Employees

299 199 398 100 996

Actual # of Employees

304 208 410 100 1022

Forecasted long term absences

5 6 10 2 23

Forecasted attrition/transfer promotions

2 1 3 1 7

Need/Have Gap

-2 +2 -1 -3 -4


Hoshin Goal-Setting Directs Continuous Improvement from Top to Bottom

Hoshin System

Division

Section

Team/Group

Individual

Division Hoshin(Direction/activity & Targets)

Section Hoshin(Direction/activity & Targets)

Individual Priority(Activities & Targets)

Hoshin Breakdown

Implementation Plan(Direction /activity & Targets)Understanding,

interpretation, freedom of how to support, ownership, motivation

Background

Assessment of individual performance, bonus


Connecting Hoshin and Floor Management Development System

1. What do we need to do?(Company Department Group)

2. How should we do it?(Process)

3. How are we doing?(Results)

Hoshin Objectives

KPI s

Daily Activities

Main KPISub-KPI

Process KPI

FMDS


Team Board for Floor Management Development System


Reward System base on Long-Term Trust Economy

Commodity Economy Trust Economy One for one exchanges Fair exchange works it self out over time Low risk High risk Easy to rectify bad exchange Betrayals hard to repair Relationship must be renewed after each exchange

Open-ended relationship

Terms available to all Terms highly personalized Each side maximizes its advantage at the expense of the other side

Both sides give up something for the common goal

Goal is individual advantage Goal is mutual growth Currency is money Currency is trust


Three Compensation Components and their Respective Percentages of Total Pay for Georgetown

Hourly Team Associates in Typical Year

83%

5%

12%

Base Bonus Performance Award

Bonus= Company performancePerformance= Plant performance (based on key performance indicators)**Managers also have an individual development plan for individual bonus


Can culture be re-trained?

What is the track record of the following?

Executive or cross-functional teambuilding?

Diversity training?

Corporate mergers?

Transfer of culture and practices off-shore?


Realizing New Values

Result Feeling

Behavior

Values

Hansei


Mentoring Process

1. Clarify the event or values in question

2. Reflect on the Thought Cycle with the individual

3. Raise the level of self-awareness thru dialogue

4. Discuss alternative approaches and values

5. Ask individual to self reflect (Hansei)


Key Points for Implementing Lean System

Process improvement and people development must go hand in hand

You must be patient for people developmentKeep your eyes open to the growth and strengthening of people (culture change)

Push when procrastination is preventing the growth of people (avoiding action)

Provide necessary challenges and support for people development!


The lean journey starts with oneself

How can I learn to identify waste?

How can I become a teacher of waste elimination?

You must become the change you want to see.Gandhi

Jeffrey Liker-TBM Toyota Way Culture

Documents

Transcript of Jeffrey Liker-TBM Toyota Way Culture