1oyoLa's Clobal CompeLlLlve

AdvanLage
W 1oyoLa's global compeLlLlve advanLage ls
based on a corporaLe phllosophy known as Lhe
1oyoLa roducLlon SysLem 1he sysLem
depends ln parL on a human resources
managemenL pollcy LhaL sLlmulaLes employee
creaLlvlLy and loyalLy buL also on a hlghly
efflclenL neLwork of suppllers and componenLs
manufacLurers
mployee mpowermenL Average
Annual 8esulLs
W More Lhan 700000 lmprovemenL suggesLlons
were submlLLed by 1oyoLas employees
W 1haL ls an average of over 10 lmprovemenL
suggesLlons per employee per year
W Cver 99 of suggesLlons were lmplemenLed
1oyoLa CulLure and ManagemenL
hllosophy
W 1he fundamenLal reason for 1oyoLas success ln Lhe global
markeLplace lles ln lLs corporaLe phllosophy Lhe seL of rules and
aLLlLudes LhaL govern Lhe use of lLs resources 1oyoLa have
successfully peneLraLed global markeLs and esLabllshed a world
wlde presence by vlrLue of lLs producLlvlLy 1he companys approach
Lo boLh producL developmenL and dlsLrlbuLlon ls very consumer
frlendly and markeLdrlven 1oyoLas phllosophy of empowerlng lLs
workers ls Lhe cenLerplece of a human resources managemenL
sysLem LhaL fosLers creaLlvlLy conLlnuous lmprovemenL and
lnnovaLlon by encouraglng employee parLlclpaLlon and LhaL
llkewlse engenders hlgh levels of employee loyalLy knowlng LhaL a
workplace wlLh hlgh morale and [ob saLlsfacLlon ls more llkely Lo
produce rellable hlghquallLy producLs aL affordable prlces 1oyoLa
have lnsLlLuLlonallzed many successful workforce pracLlces 1oyoLa
has done so noL only ln lLs own planLs buL also ln suppller planLs
Lhose were experlenclng problems
1he 1oyoLa Way
W 1he 1oyoLa Way ls noL Lhe 1oyoLa roducLlon
SysLem (1S) 1he 1oyoLa Way ls a
managemenL phllosophy used by Lhe 1oyoLa
CorporaLlon LhaL lncludes 1S also known as
lean manufacLurlng 1S ls Lhe mosL
sysLemaLlc and hlghly developed example of
whaL Lhe prlnclples of Lhe 1oyoLa Way can
accompllsh 1he 1oyoLa Way conslsLs of Lhe
foundaLlonal prlnclples of Lhe 1oyoLa culLure
whlch allows Lhe 1S Lo funcLlon so effecLlvely
1he Maln ldeas of Lhe 1oyoLa Way
W 1o base managemenL declslons on a
phllosophlcal sense of purpose"
W 1o Lhlnk long Lerm
W 1o have a process for solvlng problems
W 1o add value Lo Lhe organlzaLlon by developlng
lLs people
W 1o recognlze LhaL conLlnuously solvlng rooL
problems drlves organlzaLlonal learnlng
1he 1oyoLa Way has 4 SecLlons and 14 prlnclples
l Pavlng a longLerm phllosophy LhaL drlves a
longLerm approach Lo bulldlng a learnlng
organlzaLlon
W (1) 8ase your managemenL declslons on a
longLerm phllosophy even aL Lhe expense of
shorLLerm flnanclal goals
ll 1he rlghL process wlll produce Lhe rlghL resulLs
W (2) CreaLe a conLlnuous process flow Lo brlng problems
Lo Lhe surface
W (3) use pull sysLems Lo avold overproducLlon
W (4) Level ouL Lhe workload (hel[unka) (Work llke Lhe
LorLolse noL Lhe hare)
W (3) 8ulld a culLure of sLopplng Lo flx problems Lo geL
quallLy rlghL Lhe flrsL Llme
W (6) SLandardlzed Lasks and processes are Lhe
foundaLlon for conLlnuous lmprovemenL and employee
empowermenL
W (7) use vlsual conLrol so no problems are hldden
W (8) use only rellable Lhoroughly LesLed Lechnology LhaL
serves your people and processes
lll Add value Lo Lhe organlzaLlon by developlng
lLs people and parLners
W (9) Crow leaders who Lhoroughly undersLand
Lhe work llve Lhe phllosophy and Leach lL Lo
oLhers
W (10) uevelop excepLlonal people and Leams
who follow your companys phllosophy
W (11) 8especL your exLended neLwork of
parLners and suppllers by challenglng Lhem
and helplng Lhem lmprove
W lv ConLlnuously solvlng rooL problems Lo drlve
organlzaLlonal learnlng
W (12) Co and see for yourself Lo Lhoroughly
undersLand Lhe slLuaLlon (Cenchl CenbuLsu)
W (13) Make declslons slowly by consensus
Lhoroughly conslderlng all opLlons lmplemenL
declslons rapldly (nemawashl)
W (14) 8ecome a learnlng organlzaLlon Lhrough
relenLless reflecLlon (hansel) and conLlnuous
lmprovemenL (alzen)
1he locus of 1oyoLa roducLlon SysLem
W 8eal 1S ls noL [usL abouL flow" or pull producLlon"
or cellular manufacLurlng" or load levellng 1S ln
1oyoLa ls prlmarlly concerned wlLh maklng a proflL and
saLlsfylng Lhe cusLomer wlLh Lhe hlghesL posslble
quallLy aL Lhe lowesL cosL ln Lhe shorLesL leadLlme
whlle developlng Lhe LalenLs and skllls of lLs workforce
Lhrough rlgorous lmprovemenL rouLlnes and problem
solvlng dlsclpllnes 1hls sLaLed alm ls mlxed ln wlLh Lhe
Lwln producLlon prlnclples of !usL ln 1lme (make and
dellver Lhe rlghL parL ln Lhe rlghL amounL aL Lhe rlghL
Llme) and !ldoka (bulld ln quallLy aL Lhe process) as
well as Lhe noLlon of conLlnuous lmprovemenL by
sLandardlzaLlon and ellmlnaLlon of wasLe ln all
operaLlons Lo lmprove quallLy cosL producLlvlLy lead
Llme safeLy morale and oLher meLrlcs as needed
7 rlnclples of 1S
W (1) 8educed SeLup 1lmes All seLup pracLlces are wasLeful
because Lhey add no value and Lhey Lle up labor and
equlpmenL 8y organlzlng procedures uslng carLs and
Lralnlng workers Lo do Lhelr own seLups 1oyoLa managed Lo
slash seLup Llmes from monLhs Lo hours and someLlmes
even mlnuLes
W (2) SmallLoL roducLlon roduclng Lhlngs ln large baLches
resulLs ln huge seLup cosLs hlgh caplLal cosL of hlghspeed
dedlcaLed machlnery larger lnvenLorles exLended lead
Llmes and larger defecL cosLs 8ecause 1oyoLa has found
Lhe way Lo make seLups shorL and lnexpenslve lL became
posslble for Lhem Lo economlcally produce a varleLy of
Lhlngs ln small quanLlLles
W (3) mployee lnvolvemenL and mpowermenL
1oyoLa organlzed Lhelr workers by formlng Leams
and gave Lhem Lhe responslblllLy and Lralnlng Lo
do many speclallzed Lasks 1eams are also glven
responslblllLy for housekeeplng and mlnor
equlpmenL repalr ach Leam has a leader who
also works as one of Lhem on Lhe llne
W (4) CuallLy aL Lhe Source 1o ellmlnaLe producL
defecLs Lhey musL be dlscovered and correcLed
as soon as posslble Slnce workers are aL Lhe besL
poslLlon Lo dlscover a defecL and Lo lmmedlaLely
flx lL Lhey are asslgned Lhls responslblllLy lf a
defecL cannoL be readlly flxed any worker can
halL Lhe enLlre llne by pulllng a cord (called
!ldoka)
W (3) qulpmenL MalnLenance 1oyoLa operaLors are
asslgned prlmary responslblllLy for baslc malnLenance
slnce Lhey are ln Lhe besL poslLlon Lo defecL slgns of
malfuncLlons MalnLenance speclallsLs dlagnose and flx
only complex problems lmprove Lhe performance of
equlpmenL and Lraln workers ln malnLenance
W (6) ull roducLlon 1o reduce lnvenLory holdlng cosLs
and lead Llmes 1oyoLa developed Lhe pull producLlon
meLhod whereln Lhe quanLlLy of work performed aL
each sLage of Lhe process ls dlcLaLed solely by demand
for maLerlals from Lhe lmmedlaLe nexL sLage 1he
kamban scheme coordlnaLes Lhe flow of small
conLalners of maLerlals beLween sLages 1hls ls where
Lhe Lerm !usLln1lme (!l1) orlglnaLed
W (7) Suppller lnvolvemenL 1oyoLa LreaLs lLs
suppllers as parLners as lnLegral elemenLs of
1oyoLa roducLlon SysLem (1S) Suppllers are
Lralned ln ways Lo reduce seLup Llmes
lnvenLorles defecLs machlne breakdowns eLc
and Lake responslblllLy Lo dellver Lhelr besL
posslble parLs
!usLln1lme (!l1)
W !l1 ls a vlLal componenL of Lean ManufacLurlng !usLln
Llme manufacLurlng means produclng Lhe necessary
lLems ln necessary quanLlLles aL Lhe necessary Llme lL
ls a phllosophy of conLlnuous lmprovemenL ln whlch
nonvalueaddlng acLlvlLles (or wasLes) are ldenLlfled
and removed
W uLLlng Lhls concepL lnLo pracLlce means a reversal of
Lhe LradlLlonal Lhlnklng process ln convenLlonal
producLlon processes unlLs are LransporLed Lo Lhe nexL
producLlon sLage as soon as Lhey are ready ln !l1 each
sLage ls requlred Lo go back Lo Lhe prevlous sLage Lo
plck up Lhe exacL number of unlLs needed
8eneflLs of !l1
W 8educed operaLlng cosLs
W CreaLer performance and LhroughpuL
W Plgher quallLy
W lmproved dellvery
W lncreased flexlblllLy and lnnovaLlveness
!l1 ComponenLs
W roducLlon Levellng
W ull SysLem
W kamban (label or slgnboard) sysLem
W Cood Pousekeeplng
W Small LoL roducLlon
W SeLup 1lme 8educLlon
W 1oLal revenLlve MalnLenance (1M)
W 1oLal CuallLy ConLrol (1CC)
W !l1 urchaslng
W Llne 8alanclng
W llexlble ManufacLurlng
W Smallgroup AcLlvlLles (SCA)
1he llve Ss
W 1here are 3 prlmary phases of 3S sorLlng
sLralghLenlng sysLemaLlc cleanlng sLandardlzlng
and susLalnlng AddlLlonally Lhere ls an
addlLlonal phase safeLy whlch ls someLlmes
lncluded
W (1)SorLlng (Selrl) llmlnaLe all unnecessary Lools
parLs lnsLrucLlons Co Lhrough all Lools
maLerlals eLc ln Lhe planL and work area keep
only essenLlal lLems veryLhlng else ls sLored or
dlscarded
W (2)SLralghLenlng or SeLLlng ln Crder (SelLon)
1here should be a place for everyLhlng and
everyLhlng should be ln lLs place 1he place for
each lLem should be clearly labeled or
demarcaLed lLems should be arranged ln a
manner LhaL promoLes efflclenL work flow
Workers should noL have Lo repeLlLlvely bend Lo
access maLerlals ach Lool parL supply plece of
equlpmenL eLc should be kepL close Lo where lL
wlll be used (le sLralghLen Lhe flow paLh) SelLon
ls one of Lhe feaLures LhaL dlsLlngulshes 3S from
sLandardlzed cleanup
W (3)Shlnlng or Sweeplng or Cleanllness /
SysLemaLlc Cleanlng (Selso) keep Lhe workplace
Lldy and organlzed AL Lhe end of each shlfL clean
Lhe work area and be sure everyLhlng ls resLored
Lo lLs place 1hls makes lL easy Lo know whaL goes
where and ensures LhaL everyLhlng ls where lL
belongs A key polnL ls LhaL malnLalnlng
cleanllness should be parL of Lhe dally work noL
an occaslonal acLlvlLy lnlLlaLed when Lhlngs geL
Loo messy
W (4)SLandardlzlng (SelkeLsu) Work pracLlces
should be conslsLenL and sLandardlzed veryone
should know exacLly whaL hls or her
responslblllLles are for adherlng Lo Lhe flrsL 3 S's
W (3)SusLalnlng Lhe dlsclpllne (ShlLsuke) MalnLaln
and revlew sLandards Cnce Lhe prevlous 4 Ss
have been esLabllshed Lhey become Lhe new way
Lo operaLe MalnLaln focus on Lhls new way and
do noL allow a gradual decllne back Lo Lhe old
ways Whlle Lhlnklng abouL Lhe new way also be
Lhlnklng abouL yeL beLLer ways When an lssue
arlses such as a suggesLed lmprovemenL a new
way of worklng a new Lool or a new ouLpuL
requlremenL revlew Lhe flrsL 4 Ss and make
changes as approprlaLe
1he 7 WasLes 1o 8e llmlnaLed
W CverproducLlon
W WalLlng
W 1ransporLaLlon
W lnvenLory
W MoLlon
W Cverprocesslng
W uefecLlve unlLs
kamban
W kamban meanlng label or slgnboard ls used as a
communlcaLlon Lool ln !l1 sysLem A kamban ls
aLLached Lo each box of parLs as Lhey go Lo Lhe
assembly llne A worker from Lhe followlng
process goes Lo collecL parLs from Lhe prevlous
process leavlng a kamban slgnlfylng Lhe dellvery
of a glven quanLlLy of speclflc parLs Pavlng all Lhe
parLs funneled Lo Lhe llne and used as requlred
Lhe same kamban ls reLurned back Lo serve as
boLh a record of work done and an order for new
parLs 1hus kamban coordlnaLes Lhe lnflow of
parLs and componenLs Lo Lhe assembly llne
mlnlmlzlng Lhe processes