Learning From Toyota: Achieving Basic Stability

Transcription

1 Learning From Toyota: Achieving Basic Stability Some key points from history and implementation Art Smalley President Art of Lean, Inc. Art of Lean, Inc.

2 TPS/Lean is a widely accepted improvement program Starting from simple roots in Toyota in the 1950 s TPS has spread around the world to become a dominant improvement methodology Annually for the several years Toyota has earned in excess of $10 Billion in profits Toyota will overtake GM in a year or two as the automotive industry leader in volume and add this to their already dominant positions in quality and profitability Triple Crown TPS has been discovered by multiple people over the years and identified as various different items such as: QC circles Kanban system Kaizen events Value stream mapping What s next?

3 The parable of the elephant and the blind men 1970 s QC circles! TPS It is not what you call it that counts but why and how you do it and the results you obtain that really matters! 2000 It s all about flow and the Value Stream! 1980 s It s Kanban! 1990 s It s Kaizen!

4 However Despite all this discovery and wealth of information no one has been able to consistently copy this elusive system and produce the same type of results Additionally as Lean/TPS spreads I am starting to see more implementation instances with either limited or poor results to show for all the hard work in several cases it has even somehow added cost. Why is this proving so difficult?

5 Multiple possible explanations exist Toyota took about 20 years or so between to build up the system and implement it across several plants. Most practitioners are in about year five or less TPS in Toyota is fairly different from Lean programs I observe in North America. (This may or may not be a problem ) There is a shortage of talented TPS implementation leaders Most of us don t have Taiichi Ohno for example (and for the record Toyota struggles sometimes overseas as well). Perhaps creating this new system in companies with an established culture and old way of doing things is just inherently very difficult (i.e. we are fighting some form of invisible law of change / gravity?) Other reasons no doubt exist as well Note: With today s time limit I can only touch briefly on these two items as time allows

6 1) TPS development timeline Influences Mass Production moving conveyor lines Scientific Principles Of Management TPS Development Standardization Of Parts Guess what it did not just happen overnight!

7 TPS Summary* Topic / Dates Process flow Conveyance 50 Machining and Assembly Line Flow 55 Engine to Vehicle Plant Flow 50 Machine Shop Flow 60 Intra Plant Flow Material Handling Call System 60 Intra Plant Time Delivery 55 Fixed quantity unfixed time based system JIT Set up Reduction Kanban Purchase Parts Management Hour Set Up Time Minute Average C/O (New Technology Danly Stamping Presses) 48 Replenishment pull pilot 62 Company wide pull established 53 Machine shops implement pull & level scheduling 55 Fixed quantity delivery control system 65 Adoption of supplier kanban Ordering System Production Instruction 55 Monthly Production Plans 57 Adoption of Sequence List 63 JIT Production Instruction Signals Jidoka Multi-Process Handling & Standardized Work Visual Control & In Process Control 47 1 Man 2 Machines 53 Standardized Work 49 1 Man 4 Machines 55 1 Man 7 Machines (average in machine shop) 50 Andon lights on engine assembly line 62 Full work control system / Pokayoke *Source: 創 造 限 りなくトヨタ 自 動 車 50 年 史. Toyota 50 Year History Published 1987

8 TPS Summary* Topic / Dates JIT Process flow Conveyance Set up Reduction 75 Synchronization of Flow Between Plants 75 Development of Equipment for Flow Production 70 All Plants on Call Conveyance Method 77 Cross Docking Methods 83 Review from Sales to Manufacturing 71 3 Minute Average C/O Press Machines 75 Single Minute C/O Machines at Suppliers Kanban 77 Kanban Auto Sorting and Reading Purchase Parts Management Ordering System Production Instruction 77 Bar Code Reader for Supplier Kanban Day Order Entry System 74 New Order System 70 Daily Order Entry System 85 Lead Time Reduction Project 71 Development Plant Production Instruction Signals 80 Adoption of Automatic Signals 86 New Technology System Jidoka Multi-Process Handling & Standardized Work Visual Control & In Process Control 75 Company Wide Standardized Work 66 Full Automated Machining Lines (JIT & Jidoka Fulfilled Kamigo Model Plant) *Source: 創 造 限 りなくトヨタ 自 動 車 50 年 史. Toyota 50 Year History Published 1987

9 2) TPS in Toyota versus Lean in most companies Typical Questions for a Value Steam 1. What is takt time? 2. Where can you use continuous flow? 3. What is the pacemaker? 4. Where will you need a supermarket pull system? 5. Will you build to a finished goods supermarket or to customer order? 6. How will you level production mix at the pacemaker? 7. What increment of work will you consistently release and take away at the pacemaker? 8. What process improvements will be necessary for the value stream to flow as your future state design specifies?

10 Any lens affects how well and what you see Eye Glasses Microscope Telescope Blurred image Small image Distant image Clear image Magnified image Closer image They are all useful for their respective purpose but no one lens can do everything!

11 TPS Framework & Lean Questions LTS* - Map the value stream 1. Takt time? 2. Continuous flow? 3. Pacemaker? 4. Supermarket pull system? 5. MTO/MTS? 6. Level production? 7. Pitch increment? 8. Process improvements for flow? (Add in CCF, MMF, CLP, etc.) Where is the focus? Quality Just-in-time -Flow production -Takt time -Pull system -Level production Customer satisfaction & Company profit Cost Lead time Jidoka Standardized Work & Kaizen Equipment Stability *LTS - Learning to See, followed by CCF - Creating Continuous Flow, MMF - Making Materials Flow, & CLP Creating Level Pull

12 TPS Framework LTS* - Map the value stream 1. Takt time? 2. Continuous flow? 3. Pacemaker? 4. Supermarket pull system? 5. MTO/MTS? 6. Level production? 7. Pitch increment? 8. Process improvements for flow? Quality Just-in-time -Flow production -Takt time -Pull system -Level production Customer satisfaction & Company profit Cost Lead time Jidoka Most of the Lean focus in the U.S. today is on just a part of overall TPS mainly JIT, inventory and lead-time reduction Standardized Work & Kaizen Equipment Stability *LTS - Learning to See, followed by CCF - Creating Continuous Flow, MMF - Making Materials Flow, & CLP Creating Level Pull

13 TPS Framework - Progress and Understanding? System Pillar Key Elements* Progress Flow / Small Lot Production A- Just in Time Takt Time Pull via Kanban B+ B Good emphasis here TPS Leveling (Heijunka) B- Jidoka Build in Quality at the Process Separation of Man & Machine 100% Operational Availability C C C Less success here *More elements exist of course. List abbreviated for today s discussion

14 JIT/VSM focus is necessary but not sufficient Process A Availability = 65% Capability =.8 Cpk Flexibility = 1 Hr. C/O + Supervisors inundated with other problems (First 20 years of TPS) Sometimes the process is what needs to be fixed and not just the JIT flow across the process In other words truly learning to see certain problems involves crawling under the hood and getting the 1 foot view and not the 10,000 foot VSM view Companies won t improve quality, cost, and delivery significantly until all these types of problems are addressed better than today.

15 Basic Process Stability / Problem Solving 101* 1. Man 3. Material Basic Problems 2. Machine 4. Method *With the key TPS Principles driving the thinking and decisions.

16 4 M s Manpower Related Training Within Industry (TWI) Courses - Started in 1951 continues today in various forms 1. Job Instruction 2. Job Relations 3. Job Methods 4. Job Safety* *Note: Added by Toyota. Not part of original TWI material

17 Job Instruction Goal How to teach safely, correctly, quickly, and conscientiously Motto If the employee has not learned then the instructor has not taught! Pattern 1. Prepare the learner 2. Present the operation 3. Tryout by the learner 4. Follow up

18 Job Relations Goals Make the best use of each persons ability. Give credit where credit is due. Tell people in advance about changes that affect them. Make best use of everyone s ability Motto Good relations = Good results Treat each person as an individual! Pattern 1. Get the facts 2. Weigh and decide 3. Take action 4. Check results

19 Job Methods Goals How to produce greater quantities of quality products in less time, by making the best use of existing manpower, machines, and materials now available Motto ECRS. Eliminate unnecessary details, combine work elements, rearrange or simplify work. Pattern 1. Breakdown the job 2. Question every detail (5W 1H) 3. Develop new method 4. Apply and check results

20 4 M s Machines Machines, materials, and technology are part of TPS tradition 1. Separate man from machine 2. Build in quality 3. Operational availability of 100%

21 Separate man from machine Sakichi Toyoda Inventor Automated machine Low capital cost Jidoka stoppage features 1 person ran machines Zero shuttle change over time 24 technical patents Magic loom 1890 Wooden Loom 1896 Auto Loom 1924 Type G Auto Loom

22 Separation of man from machine in loom plants 1890 Wooden Japanese Loom 1 Person 1 Machine Low Productivity 1924 Type G Loom by Toyoda 1 Person 24 to 36 Machines High Productivity

23 Separate man from machine in engine plants 1945 Machine Tool in Toyota 1 Person operates 1 machine Low Productivity 1990 Machining Line in Toyota 1 Person operates 20+ machines High Productivity

24 4 M s Material Machines, material and technology are part of TPS tradition 1. Separate man from machine 2. Build in quality 3. Operational availability of 100%

25 Build in quality 1924 Toyoda Auto Loom 1. Automated processes cycling normally 2. Mechanical probe detects if there is a broken thread or not. This time okay!

26 Build in quality 1924 Toyoda Auto Loom 3. This time the thread is broken and the probe will stop the machine (i.e. Jidoka) 4. Production team member responds and fixes the broken thread with a new shuttle

27 Build in quality 1990 Toyota Motor Corporation 1. Automated process cycling normally 2. Mechanical probe detects broken cutting tool and stops the machine

28 Build in quality 1990 Toyota Motor Corporation 3. Probe signals an andon board for visual display 4. Production team member responds and replaces the broken tool

29 4 M s - Method Practice over theory Managing Director Ohno Taiichi 1. TPS is a series of related activities aimed at elimination of waste in order to reduce cost, improve quality, and improve productivity. First TPS Manual Education & Training Department 2. Scientific Mindset: On the shop floor it is important to start with actual phenomenon and search for the root cause in order to solve the problem. In other words we must emphasize getting the facts.. 3. In problem solving the purpose must be made clear in Kaizen the needs must be made clear.

30 TPS is built on the scientific way of thinking* General Scientific Method** 1. Identify the problem. 2. Devising preliminary hypothesis 3. Collection of additional facts 4. Formulating the explanatory hypothesis 5. Deducing further consequences 6. Testing the consequences 7. Applying the theory TPS Basic Thinking Pattern 1. Define the problem 2. Analyze the causes 3. Set a goal 4. Implement the action items 5. Verify the results 6. Follow up / Standardize * Source: Hajime Ohba General Manager Toyota Supplier Support Center **Introduction to Logic 11 th Edition by Irving Copi and Carl Cohen

31 Let s revisit some basic TPS questions Key TPS Questions Typical Problems Countermeasures or analysis tools 3. How will you achieve 100% JIT? On-time delivery Inventory Lead-time VS Mapping Flow of product Pull system / kanban 1. How will you satisfy the customer and obtain a profit? 2. What are your main problems in production? (or elsewhere)? 4. How will you build in 100% quality? 5. How will you stabilize the availability to 100%? 6. How will you standardized work 100%? Customer defects Scrap Rework Capacity losses Downtime Scrap & Rework Labor productivity Scrap & rework Safety Abnormality detection Stop the machine Process Cpk 6 losses OA / Maintenance Problem solving Job Instruction Standardized work Motion analysis 7. How will you develop natural work team leaders? Team morale Skills development Small improvements TWI/JR TWI/JI TWI/JM 8. How will you sustain and improve? Recurring problems Firefighting Poor problem solving PDCA Root cause analysis Recurrence prevention

32 APPENDIX

33 Inventory Turns Toyota Motor Corp: Profits & Inventory Trend 13.7 Net Income (Billions $) Sources: Exchange Rate: Toyota Motor Corporation Consolidate Statements of Income Toyota A History of the First 50 Years 120 Yen to 1 US Dollar Exchange Rate Assumption

34 Toyota Motor Corporation: Productivity Chart