THE MODERN THEORY OF THE TOYOTA PRODUCTION SYSTEM

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1 THE MODERN THEORY OF THE TOYOTA PRODUCTION SYSTEM A SYSTE Phillip Marksberry, PhD, PE /O\ CRC Press yc**" J Taylor & Francis Group V^_,/ Boca Raton London NewYork CRC Press is an imprint of the Taylor & Francis Group, an informa business

2 viii Contents Problem Solving versus Kaizen (Improvement) Structured Problem Solving Toyota's Eight-Step Problem-Solving Methodology Human Problem-Solving Background Literature Review of Problem-Solving Methodologies Limitations with Problem-Solving Methodology Research Problem-Solving Theory and Core Thinking Skills Criteria for Evaluating Effective Cognitive Processes Applying Human Problem-Solving Theory to Toyota's Eight-Step Process Goal Clarity in A3 Thinking Productive Thinking in A3 Thinking Putting It All Together Summary 88 References 88 Chapter 5 The System Property of Regulation in TPS System Property: Regulation The System Property of Regulation and the Toyota Production System Literature Review of Jishukens Literature Review of Quality Circles Using Quality Circles and Jishukens to Create a Shared Vision The Weakening and Strengthening of TPS using Shared Visions The Regulation Cycle of TPS Jishuken and Quality Circle Implementation Concepts Asking for Help and Promoting Waste Elimination 107

3 Contents ix Starting Point for Workplace Improvement The Team Structure of Jishukens and Quality Circles Significance of Roles in Management- Directed Activities Support Functions in QCs and Jishukens Coach and Facilitate Problem Solving Jishukens and QCs Must Advance Stability through Standardization Model the Company's Approach to Work Summary 116 References 117 Chapter 6 The System Property of Differentiation in TPS System Property: Differentiation Toyota Production System and System Differentiation Literature Review of Leadership The Distinction between Management and Leadership Literature Review of Leadership Theory Leadership Theory for TPS The What Function of TPS Leadership The Why Function of TPS Leadership The How Function of TPS Leadership..., What If Leadership Is Not on Board with Defining, Coaching, or Implementing Lean? The Where Function of TPS Leadership The When Function of TPS Leadership Summary 146 References 147

4 x Contents Chapter 7 The System Property of Hierarchies in TPS System Property: Hierarchy The Hierarchical Property of the Toyota Production System Decision Making in Hierarchies Vertical Decision Making Horizontal Decision Making Interdependent Decision Making Interdependent Performance Monitoring and Progress Routine Work and Nonroutine Work inhoshin Literature Review of Strategic Planning Problems and Challenges in Strategic Planning Strategic Planning Theories A System of Hierarchies: The Hoshin Process Planning Phase of Hoshin Preparation Phase of Hoshin Hoshin Implementation Phase Hoshin Evaluation End-of-Year Evaluation A Theoretical Interpretation of Hoshin Summary References 179 Chapter 8 The System Property of Transformation in TPS System Property: Transformation The Conversion Process in the Toyota Production System Literature Review of Change Management Conversion Process: Ingestor Conversion Process: Motor Conversion Process: Converter Conversion Process: Producer Conversion Process: Supporter Conversion Process: Distributor 208

5 Contents xi 8.10 Conversion Process: Matter-Energy Storage Summary 210 References 211 Chapter 9 The System Property of Entropy in TPS System Property: Entropy Entropy in Organizations Entropy in the Toyota Production System Literature Review: The Human Resource Function Japanese Management Techniques in Human Resources Japanese Management Practices and Toyota Minimizing Entropy Using the Human Resource Function in TPS Hygiene Theory and TPS: The Essential Needs of the Individual Stable Employee Relations Fair Appraisal and Treatment Improve the Terms and Conditions of Employment Workplace Communication Motivation Theory and TPS: The Intrinsic Needs of the Individual Decision Making Teamwork Workplace Competence Summary 243 References 244 Chapter 10 The System Property of Reversibility in TPS System Property: Reversibility Minimizing Entropy in the Management and Labor Relationship (Reversibility) Literature Review: The Birth of the Toyota Production System as a Union 251

6 xii Contents The Role of Trade Unions and the Human Resource Function in the United States The Use of Lean in Human Resource Development A Difficult Implementation of Lean in Union Environments in the United States Union Problems and Lean Production in the Automotive Industry A Successful Case of Lean Production in the Automotive Sector in a Union Environment The Influence of Labor Unions in Japan on Lean Production Internal Reversibility in TPS: A Union Perspective Larger Employment Issues External Reversibility in TPS: A Union Perspective Summary 275 References 276 Chapter 11 The System Property of Negative Entropy in TPS System Property: Negative Entropy Negative Entropy and the Toyota Production System Exceptional Creativity, Mundane Creativity, and Lifelong Learning Organizational Learning and Communication: Some Basic Similarities with TPS Literature Review of Organizational Learning and Communication Organizational Learning Theory Connecting the Kaizen Mind The Preferred Learning and Communication Style for the Kaizen Mind 296

7 Contents xiii 11.8 Summary 298 References 299 Chapter 12 The System Property of Requisite Variety in TPS System Property: Requisite Variety A Theoretical Response to Complexity and Variety Toyota Production System and the Law of Requisite Variety Literature Review: Production Leveling The Technical and Social Structures of Production Leveling Technical System: Prevention Technical System: Reactive Social System: Prevention Social System: Reaction " Summary 324 References 325 Chapter 13 The System Properties of Interrelationship and Interdependence in TPS System Properties: Interrelationship and Interdependence Interrelationship and Interdependence in the Toyota Production System Literature Review: Supplier Development A Review of Toyota's Supplier Development Practices Building Positive and Interdependent Structures in TPS Summary 352 References 353 Chapter 14 The System Property of Equifinality in TPS System Property: Equifinality and Multifinality 357

8 xiv Contents 14.2 The System Property of Equifinality for a Management System The System Property of Equifinality for Non- Value-Added Work Environments Literature Review The TPS Goal in Facilities Maintenance The Tenets of Waste Elimination in Maintenance Establishing Normal Work in Unknown and Nonroutine Work Environments Fewer Higher-Skilled Employees Seibi: Starting Point for Equipment and Maintenance Standards Improving Equipment Availability Using Problem Solving Summary 382 References 383 Chapter 15 Summary Systems Theory and the Modern Theory Management System Properties Can Be Satisfied in Many Ways Organizing the Properties of TPS for Implementation Timing and Pace How Do You Know When the Modern Theory of TPS Is Working? 393 Index 395

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