TOYOTA. by TOYOTA. Reflections from the Inside Leaders on the Techniques That Revolutionized the Industry. Edited by Samuel Obara and Darril Wilburn
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1 TOYOTA by TOYOTA Reflections from the Inside Leaders on the Techniques That Revolutionized the Industry Edited by Samuel Obara and Darril Wilburn CRC Press Taylor & Francis Group Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Croup, an informa business A PRODUCTIVITY PRESS BOOK
2 Contents Foreword Introduction About the Authors ix xi xiii Chapter 1 Courage, Humility, Kaizen 1 Darril Wilburn The Toyota Way Courage, Humility, Kaizen at the Heart 4 Teaching Others 14 Chapter 2 Stability and Standardized Work 21 Gerson Valentim Damiani Importance of Standard Work 27 Why Work Using Standards? 28 Operational Procedures, Work Instructions, and Work and Labor Procedures 29 How the Work Was Done at Toyota: Standard Work before Technology 31 How Standard Work Was Done at Toyota after the Introduction of Technology 32 Factory Layout 35 Objectives of the Layout 37 Human Factor 38 Problems in the Implementation of Standard Work 39 Where to Place Standard Work Instructions 40 Chapter 3 Jidoka 43 Renato Eiji Kitazuka, with Carlos Moretti Origins 43 Jidoka as a Pillar of the Toyota Production System 44 So, What Is the Purpose of Using Jidoka? 48 Using Jidoka 49 Implementation Stages of Jidoka 51 Hi
3 iv Contents It Was Too Early 53 Conclusion 54 Chapter 4 Just-In-Time and Kanban 55 Carlos Yokio Fukamizu Just-In-Time 56 Introduction 56 Introduction of Jidoka and Just-In-Time as the Pillars oftps 56 Jidoka 56 Just-In-Time Manufacturing 57 Just-In-Time (JIT) 58 Concept 58 Total Customer Satisfaction 59 More Evident Waste in the Manufacturing 60 Continuous Flow Process (One-Piece Flow) and Pull System 62 Lean Methodologies for Waste Elimination 63 Examples 63 Kaizen (Continuous Improvement) 63 Kanban as a Technique of JIT 64 Conclusion 69 Chapter 5 Problem-Solving PDCA 71 Sammy Obara Definition 71 Why Problem Solving Is So Important along a Lean Transformation 71 WhatlsPDCA? 74 Do You Really Need a Method? 74 How and Where to Find Problems 75 The Mosquitoes Case 76 How Well Do You Understand the Problem? 76 Genchi Genbutsu: The Point of Cause 77 How Well Can You State the Problem? 78 How Well Do You Understand the Causes? 81 Doing Well What Does Not Need to Be Done 84 Project Management 85
4 Contents v A QuickNote on Deadlines 85 Standardization 86 Recognition 87 A Higher Level of Recognition 88 Yokoten: Spreading the Learning Laterally 90 What Is Next? 91 Chapter 6 Toyota Kaizen Methods 93 Art Smalley Step 1: Discover Improvement Potential 100 Step 2: Analyze the Current Method 102 Step 3: Generate Original Ideas 105 Step 4: Make a Kaizen Plan 107 Step 5: Implement the Plan 108 Step 6: Verify the Results 109 Summary 109 Chapter 7 Kaizen Culture: The Continuous Improvement Engine Stephen J. Ansuini The Key Elements of a Kaizen Culture 112 Visible Sponsorship and Support by Management 112 Leadership Support 113 Clear Purpose and Aligned Goals 115 Evolving Continuous Improvement System 117 Phase 1: Introduction Participation Emphasis 117 Phase 2: Transition Participant Development 120 Phase 3: Process Maturation 122 Summary 124 Chapter 8 Elimination of Waste in Product Design 127 Patrick Muller Value Engineering/Value Analysis 127 Waste in Process Design 127 Waste in Product Design 128 Toyota's Purchasing Philosophy 129 Fair Competition Based on an Open-Door Policy Ill
5 vi Contents Mutual Prosperity Based on Mutual Trust 130 Abide by the Law 131 Toyota's Purchasing Practices 131 Cost Breakdown 131 Target Costing, VE/VA, Kaizen 132 Value Engineering/Value Analysis 134 History 134 At Toyota, Suppliers Challenges 134 VE/VA and FMEA 135 VE/VA and Marketing 135 Practical Example 136 Chapter 9 Adapting Lean for Made-to-Order/High-Mix, Low-Volume Organizations 137 Greg Lane OSKKK to Learn and Transform 139 Learning the Processes before Managing Them 140 Constraints Require More than Quick Fixes 141 Process Focused, Not Product Focused 143 Segregating Parts to Manage Differently 146 Managing in Real-Time Necessitates Other Lean Principles 149 Proportionally More Indirect Costs Necessitate Lean Accounting 152 Failures 155 Summary 156 Chapter 10 Lean Logistics 159 Robert Martichenko Part 1: Purpose + People 159 Introduction 159 Purpose 160 Customer and 3PL Collaboration 161 People and Planning 162 Part 2: Process 163 Logistics Route Design 163 Pull Replenishment 164
6 Contents vii Velocity and Understanding the Importance of Lead-Time Reduction 165 Driving Velocity 168 Manufacturing Plant Integration 169 Leveled Flow 170 Trailer Yard Layout and Visual Management 172 Quality at the Source and Discipline of Process 173 Lessons Learned and Conclusion 174 Chapter 11 Leading a Kaizen Culture 177 Bob Plummer A TPS Symphony 178 Discovering the Kaizen Culture 179 Creating and Sustaining the Kaizen Culture in American Factories 182 Implementing TPS Methods 185 Back to the Beginning Leaving GM 188 Chapter 12 Hoshin Kanri 189 Alistair Norval, with Darril Wilburn What Is Hoshin Kanri? Why We Need a Strategic Planning System 191 What Does This Result In? 192 Countermeasure to Strategic Planning Problems 192 Hoshin Kanri Enables Organizations to Develop Strategic Plans That Are 192 True North 193 Tree of Focused Activity 194 Plan, Do, Check, Act (PDCA) 196 Management Process 199 Catchball 200 Key Thinker 201 A3 201 The Power of Hoshin 203 Summary 205 Index 207
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