Global Production Engineering

Lean Management - 2011 Summer Semester

Dr. Ing. Ingo Lmkemann
Decoding the DNA of the Toyota Production Systems
By Steven Spear and H.Kent Bowen
Harvard Business Review
roup Report
roup No. !
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Contents
Introduction:.............................................................................................................. $
The Complete Poster:................................................................................................ $
1. How people WORK?.............................................................................................. %
As it is Version:...................................................................................................... %
Improed Version:.................................................................................................. 2
!. How people CO""#CT?......................................................................................... 2
As it is Version:...................................................................................................... 2
$. How production line is CO"%TR&CT#'?..................................................................,
As it is Version:...................................................................................................... ,
Improed Version:.................................................................................................. 1
(. How to I)PROV#?................................................................................................. &
As it is Version:...................................................................................................... &
Improed Version:................................................................................................ 10
*essons *e+rnt:....................................................................................................... 10
,i-lio.r+ph/............................................................................................................ 11
List of Figures:
0i.ure 1 Complete Poster1 As It Is............................................................................... '
0i.ure ! How people wor2 1 As It Is.............................................................................. %
0i.ure $ How people wor2 1 Improed.......................................................................... 2
0i.ure ( How people connect1 As It Is.......................................................................... 2
0i.ure 3 How production line is constructed 1 As It Is......................................................,
0i.ure 4 How production line is constructed 1 Improed..................................................1
0i.ure 5 How to Improe1 As It Is................................................................................ &
0i.ure 6 How to Improe1 Improed........................................................................... 10
-g. 2
Introduction:
The o-7ectie o8 the discussion on 19:1;:!;1( w+s to -rin. out the insi.hts e<pl+ined in the
H+r+rd ,usiness Reiew +rticle =Decoding the DNA of the Toyota Production System
by Steven Sear and !"#ent $o%en. The +rticle emph+si>es on the s/stem o8 To/ot+ th+t
encodes itsel8 in -ecomin. the prim+r/ 8+ctor o8 To/ot+?s success r+ther th+n the tools +nd
pr+ctices incorpor+ted in the s/stem@ which m+n/ other comp+nies +ssume@ to -e the 2e/
8ocus to +chiee its .o+ls. Ap..1B
To/ot+ h+d +n e<tremel/ open s/stem c+lled the To/ot+ Production %/stem which w+s
e<tremel/ 8le<i-le +nd +d+pt+-le. Thou.h the s/stem w+s 8le<i-le@ To/ot+?s 8+ctor/ w+s
ri.idl/ scripted. Ap..!B
0le<i-ilit/
Ri.id %peci8ic+tion Ap..$B
Cre+tiit/
To/ot+ s/stem +pp+rentl/ cre+ted + communit/ o8 scientists@ who 8ollowed strict scienti8ic
methods who 8ollowed ri.orous pro-lem solin. +ppro+ch th+n ,lind 8olded tri+l +nd error.
)uch in its pr+ctices@ the s/stem w+s not incorpor+ted -ut n+tur+ll/ .rew oer 8ew dec+des.
Ap..$B
We structured our present+tion durin. the session with + poster which h+s Cuestions which
8orms the structure o8 TP%@ its +nswers +nd collectie outcome.
The 8our rules:
1: How people wor2?
!: How people connect?
$: How Production line is constructed?
(: How to Improe?
-g. $
The Com&ete Poster:
The poster e<pl+ins the '"A structure@ which poses ( Cuestions@ the +nswers TP% h+s to
+ddress the ( Cuestions +nd +s + result its pr+ctices -/ which the s/stem 2eeps 8unctionin..
The p+.e num-ers +re mentioned in eer/ 2e/ point which is t+2en 8rom Decoding the DNA
of the Toyota Production System by Steven Spear and H.Kent Bowen pubished by!
Harvard Business "eview. #pg.$%$&'
Figure ' Com&ete Poster( As It Is
-g. '
'" !o% eo&e )*+#,
As it is -ersion:
Fig" ." !o% eo&e %or/ ( As It Is
'" Devi is in the detais:
The To/ot+ )+n+.ers reco.ni>e th+t ='eil is in the det+ilsD Ap..$B. #+ch +nd eer/
step is specified +nd 8+ilure to notice sm+ll det+ils mi.ht le+d to -i..er pro-lems in the
8uture.
." #+ch +nd eer/ process in To/ot+ wor2s +nd ensures to Ap..$B
i' (ontent
ii' Se)uence
iii' Timing
iv' *utcome
The Car Seat Insta&&er:
#er/ 7o- is well de8ined +nd seCuenced in +n/ To/ot+?s pl+nt. In inst+ll+tion o8 ri.ht 8ront
se+t in To/ot+ C+mr/@ the wor2 is desi.ned +s + seCuence o8 5 t+s2s which is e<pected to
complete in 33 seconds +s the c+r moes +t 8i<ed speed in the +ssem-l/ line. I8 the wor2er is
doin. t+s2 4 -e8ore ( he is doin. some wron.. His dist+nce is m+r2ed +nd time 8or the
p+rticul+r su-t+s2 is speci8ied. I8 there is some 2ind o8 del+/ the dei+tion is +pp+rent to the
superisor. This helps in correction o8 the pro-lem +t the s+me inst+nce. #er/ step is
speci8ied +nd time -+sed. Ap..(B
0" The/ -eliee variations transate into poorer )uaity+ ower productivity and
higher cost. Ap..$B
1" TP% 8ollows we defined se)uence of steps 8or + p+rticul+r 7o- +nd hence
'ei+tions -ecome immedi+tel/ +pp+rent. #<+mple: The c+r se+t Inst+ller. Ap..(B
2" #en comple< E in8reCuent +ctiities 8ollow this rule. Ap..(B
3" TP% 8orces to test hypotheses through actions: Ap..(B
iB Person doin. the +ctiit/ is c+p+-le o8 doin. it correctl/
iiB Per8ormin. the +ctiit/ cre+tes the reCuired outcome.
4" A activities must have buit in tests which detects the 8+ilures immedi+tel/ een i8
missed -/ the *ine oper+tor or wor2er. This ensures -oth Cu+lit/ +nd reduces rewor2
to + l+r.e e<tent possi-le. Ap..(B
5" The improvement for any activity must have scientific conformation! *i2e 8or
inst+nce@ when + c+r?s se+t is inst+lled the -olts +re +lw+/s ti.htened in the s+me
-g. %
The Car Seat
order@ the time it t+2es e+ch -olt +nd so the torCue to which it should -e ti.htened.
%uch scienti8ic con8orm+tion +oids +ll con8usion +nd +ri+tions. Ap..$B
Imroved -ersion:
Figure 0 !o% eo&e %or/ ( Imroved
1B ,ec+use dei+tions -ecome immedi+tel/ +pp+rent the corrections 8or the +ctions
could -e immedi+tel/ +-sor-ed r+ther th+n detectin. +t the end o8 the line. Ap..(B
!B The ,our "ues: This 8orms + connectin. p+th 8or the ( Cuestions posed -/ the
+uthor. Ap.. (B
The t+cit 2nowled.e in the TP% s/stem is enc+psul+ted into ( -+sic rules:
iB All wor2 sh+ll -e speci8ied to content@ seCuence@ timin. E Outcome
iiB The connection -etween eer/ supplier +nd customer must -e direct +nd
un+m-i.uous
iiiB The p+thw+/ 8or eer/ product must -e simple +nd direct
." !o% eo&e C*NN6CT,
As it is -ersion:
Figure 1 !o% eo&e connect( As It Is
)or/er /no%s )hat )hen and )ho:
-g. 2
A8ter the indiidu+l wor2 is de8ined@ the To/ot+ production s/stem 8ocuses on how these
indiidu+l wor2s +re connected in + 8low. The rule de8ines th+t eer/ connection h+s to -e
st+nd+rdi>ed +nd direct st+tin. wh+t is needed@ when the reCuest will -e 8ul8illed +nd who will
8ul8ill the reCuirement.
1. Suppier (ustomer "eationship% The rule st+ted 8ocuses on est+-lishin. + cle+r
underst+ndin. +nd connection -etween supplier +nd customer rel+tionship. To/ot+
-elieed th+t within or.+ni>+tion +s well eer/ indiidu+l who is proidin. the serice
+nd to whom the serice is proided is tre+ted +s in the 8orm o8 supplier +nd
customer. Hence it is necess+r/ to m+int+in + cle+r connection so th+t there +re no
gray 7ones in decidin. who proides wh+t to whom +nd when.AP. 3B
!. Specific Person Specific Tas-% To cre+te + connection in st+nd+rdi>ed w+/ To/ot+
8ollows the rule o8 speci8ic person speci8ic t+s2. As +n e<+mple mentioned in the
re+din. when + person needs pl+stic -olt coers 8or se+t inst+ller@ he will tr+ns8er +
K+n-+n c+rd st+tin. the reCuired Cu+ntit/ to the speci8ic person@ hence le+in. no
+m-i.uit/ in the communic+tion.AP. (B
$. ,e.ibiity / "esponsiveness% To/ot+ 8ollows direct +nd un+m-i.uous connections
-etween people@ th+t is i8 there is need o8 +ssist+nce to 8i< the pro-lem speci8ic
person responds in de8ined time 8r+me +nd i8 the pro-lems is not 8i<ed it is tested 8or
its h/pothesis. Hence s/stem is const+ntl/ under testin. m+2in. it 8le<i-le 8or
continuous construction.AP. 4B
(. "emove Piing of Probem% To/ot+ h+s +lw+/s encour+.ed its wor2er to sole
pro-lem on their own -ut it +lso stresses to 8+ct th+t pro-lem must -e sh+red@ so th+t
its +n+l/>ed to its root leel. I8 pro-lems +re not sh+red it mi.ht le+d to pillin. o8
pro-lems with tempor+r/ solution hence m+2in. it -i. pro-lem +t the end.AP. 3B
-g. ,
0" !o% roduction &ine is C*NST+8CT6D,
As it is -ersion:
Figure 2 !o% roduction &ine is constructed ( As It Is
F&o% through sim&e and secified ath:
Production lines +t To/ot+ 8or m+teri+ls +nd serices +re desi.ned +nd constructed +lon. +
simple +nd speci8ied p+th. &nless this production line is e<plicitl/ redesi.ned the p+th should
not -e ch+n.ed. When production lines +re desi.ned in this w+/@ it le+es no 8or2s +nd loops
to conolute its suppl/ ch+in AP.. 4B.
1. ,ow to specific peope and machine9 'esi.nin. the production line +ccordin. to
Rule $ stipul+tes th+t .oods +nd serice does not 8low to the ne<t ++il+-le person@
r+ther it 8lows to + speci8ied person. I8 the ne<t speci8ied person or m+chine is not
++il+-le@ then the production line +t To/ot+ is redesi.ned AP.. 4B.
!. Products as we as services: The third rule doesn?t +ppl/ onl/ to .oods@ -ut it +lso
+pplies to serices li2e help des2s. This p+thw+/ o8 +ssist+nce .oes &pto 8ie lin2s
+nd connects people on shop 8loor with pl+nt m+n+.er AP.. 4B.
$. Direct Path: Foods +nd serices 8ollow + direct p+th in the production 8low. This
helps To/ot+ to le+e no +m-i.uit/ +nd in turn o88ers To/ot+ to +chiee 8le<i-ilit/ +nd
Cuic2 responses AP.. 4B.
(. No unnecessary stoc-s: Production +t To/ot+ is on dem+nd +nd it stron.l/
emph+si>es on no unnecess+r/ stoc2s. Foods +re m+nu8+ctured in speci8ic reCuired
Cu+ntit/ AP.. 4@ 5B
Imroved -ersion:
Figure 3 !o% roduction &ine is constructed ( Imroved
-g. 1
1. *ny connected suppiers re)uired! Foods +nd serices 8lowin. throu.h +
speci8ied desi.ned p+th emph+si>es th+t eer/ supplier connected to the p+th is
necess+r/@ +nd +n/ supplier not connected is not necess+r/ AP.. 5B
!. ,e.ibiity and responsiveness! 0low o8 .oods +nd serices +ccordin. to rule $
helps To/ot+ +chiee 8le<i-ilit/ in production +nd +lso helps them h+e Cuic2
responses to pro-lems.
1" !o% to I:P+*-6,
As it is -ersion:
Figure 4 !o% to Imrove( As It Is
1. 0mprovement by Scientific method% An/ improements to the process@ wor2er or
m+chine connections or 8low p+th must -e m+de throu.h Scientific method@ under
the .uid+nce o8 the te+cher or %uperisor +nd +t the lowest possi-le or.+ni>+tion+l
leel. This (
th
rule is one o8 the most import+nt +mon. the ( rules. GP.. 1H I8 it h+s to
-e re+li>ed to 8ull e<tent the 8ollowin. thin.s h+e to -e implemented:
!. Scientific method to wor-ers% In order to +ccomplish +n/ speci8ic t+s2 there h+s to
-e + scienti8ic method th+t h+s to -e 8ollowed. I8 +n/ wor2er su..ests +n/
improements@ the ch+n.es h+e to -e m+de in +ccord+nce with the %cienti8ic
method.GP..5H
$. (hange % How1 2ho1 % I8 +n/ ch+n.e su..ested -/ the 8ront line wor2ers or
+n/-od/ in the or.+ni>+tionI there is + speci8ic person who is responsi-le 8or th+t
p+rticul+r ch+n.e. There is +lso + scienti8ic method th+t is 8ollowed to m+2e th+t
ch+n.e.GP.6H
(. Training from Superiors% The tr+inin.s +re .ener+ll/ proided 8rom the superiors.
This is the usu+l w+/ -/ which the 2nowled.e tr+ns8er h+ppens +t To/ot+. #en the
people +t the Top )+n+.ement .et the tr+inin.s 8rom their %uperisors.GP..6H
3. 3earner 3eader Teacher% Wheneer there is +n/ pro-lems or di88iculties within the
production processI To/ot+ hires consult+nts e<tern+ll/ whose prim+r/ o-7ectie is to
tr+in the Top )+n+.ement. The/ identi8/ su-tle +nd di88icult pro-lems +nd -/ te+chin.
people how to sole these pro-lems.
-g. &
4. 0mprovement 4.picity5(eary articuated% An/ improements th+t +re m+de
within the or.+ni>+tion +re cle+rl/ well de8ined +nd +rticul+ted. These ch+n.es or
improements +re cle+rl/ mentioned +nd recorded.
Imroved -ersion:
Figure 5 !o% to Imrove( Imroved
1. (hanges at the owest eve of the *rgani6ation% The ch+n.es th+t +re
recommended +re e<ecuted -/ the 8ront line wor2ers. %o e+ch +nd eer/ person is
inole in the Improement process.GP..6H
!. 0ncrementa improvements due to specific changes% An/ ch+n.es th+t +re m+de
in the or.+ni>+tion +t de8ined leels will result in intermittent improements +t eer/
leel o8 the or.+ni>+tion.Gp..9H
Conc&usion:
-g. 10
5ero
In#entories
De6ect 7108
9ontinuous
Im-ro#eme
nt
Stable
:rgani;ati
on
7118
<le=ibilit+
9ounter
Measures
7118
>uick
"es-onses
As + result o8 the 8our rules -/ which TP% wor2s@ +nd -+sed on its own
solutions it de+ls@ some collectie outcome or pr+ctices within the s/stem
o8 To/ot+ h+s -een descri-ed.
;ero Inventories:
Jero Inentories +re +lw+/s the .o+l +nd in the he+rt o8 TP% -ut the
s/stem will ensure minimum stoc2 to +oid stoc2 out +t emer.enc/
situ+tions. Ap..1;B
Continuous Imrovement:
To/ot+ .ies the ch+nce to its 8rontline wor2ers to do the continuous
improement. This is monitored -/ the superisors who .ie them the
8eed-+c2 +nd the c/cle continues. Ap..9B
Stab&e *rgani7ation:
Rules m+2e To/ot+ st+-le. There e<ists st+nd+rdi>ed connection -etween
the indiidu+l supplier +nd the customer +nd -/ pushin. resolution o8
connection +nd 8low pro-lems to the lowest possi-le leel@ this is
+chieed. Ap..11B
F&e<ibi&ity:
The s/stem is ri.idl/ scripted -ut so 8le<i-le to +d+pt +n/ ch+n.es with
scienti8ic con8orm+tion een -/ se.ments which will not +88ect the end
result. To/ot+?s s/stems +re enormousl/ 8le<i-le +nd +d+pt+-le. Ap..!B
Counter :easures:
To/ot+ +nticip+ted unpredict+-le downtimes +nd /ield@ time consumin.
setups@ ol+tilit/ in mi< +nd olume in customer dem+nd +nd To/ot+ +t
times -uilt up its inentories +s + counter me+sure. Ap..1;@ 11B
=uic/ +esonses:
:nce t!e /!ole s+stem is streamlined3 t!e lead time is reduced
and t!is in a /a+ ensures ?uick res-onses to t!e c!anging
customer demand. >uick res-onses also !a--en /!en t!ere is a
de#iation 6rom t!e -rescribed acti#it+ because in @PS e#er+
acti#it+ 6ollo/s a scientiAc -rescri-tion and !ence de#iations are
t!en and t!ere #isible. 7-g. 18
Lessons Learnt:
At the end o8 the session@ we discussed +-out the di88erence -etween wh+t the +uthors
Wom+c2 E Kones@ *i2er +nd %pe+r. %ome o8 the points which distin.uish %pe+r 8rom the
other +uthors +re.
He emph+si>ed more on the
-g. 11
1B %t+nd+rds +nd scienti8ic methods which 8orms the 8und+ment+l structure o8 TP%.
!B 0le<i-ilit/ to +d+pt oer time.
$B %/stem@ which 8ollows + speci8ic st+nd+rd +nd scienti8ic method 8or eer/ step@ th+t
helps in repetitieness@ reproduction er/ e+sil/.
(B Ri.idit/ o8 the scripted s/stem which m+2es it 8le<i-le.
3B An or.+ni>+tion should +lw+/s -e committed to le+rnin. +nd strie 8or continuous
improement to sust+in in the m+r2et +nd m+int+in its Cu+lit/ st+nd+rds.
Our te+m@ Froup ! .+e + cle+r represent+tion o8 the ( Cuestions@ the results +nd the
collectie outcome o8 TP%. The reiew 8or our te+m rem+r2s +-out the inclusion o8
=connection -etween ( CuestionsD.
$ib&iograhy
S-ear3 S. 71&&&8. Decoding the DNA of the Toyota Production System. Bar#ard
0usiness "e#ie/.
-g. 12