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
viii Contents 4.1.1 Problem Solving versus Kaizen (Improvement) 60 4.2 Structured Problem Solving 61 4.3 Toyota's Eight-Step Problem-Solving Methodology 62 4.4 Human Problem-Solving Background 65 4.5 Literature Review of Problem-Solving Methodologies 67 4.6 Limitations with Problem-Solving Methodology Research 74 4.7 Problem-Solving Theory and Core Thinking Skills 75 4.8 Criteria for Evaluating Effective Cognitive Processes 76 4.9 Applying Human Problem-Solving Theory to Toyota's Eight-Step Process 80 4.9.1 Goal Clarity in A3 Thinking 81. 4.9.2 Productive Thinking in A3 Thinking 82 4.10 Putting It All Together 86 4.11 Summary 88 References 88 Chapter 5 The System Property of Regulation in TPS 91 5.1 System Property: Regulation 91 5.2 The System Property of Regulation and the Toyota Production System 95 5.3 Literature Review of Jishukens 97 5.4 Literature Review of Quality Circles 97 5.5 Using Quality Circles and Jishukens to Create a Shared Vision 99 5.6 The Weakening and Strengthening of TPS using Shared Visions 102 5.7 The Regulation Cycle of TPS 105 5.8 Jishuken and Quality Circle Implementation Concepts 106 5.8.1 Asking for Help and Promoting Waste Elimination 107
Contents ix 5.8.2 Starting Point for Workplace Improvement 110 5.8.3 The Team Structure of Jishukens and Quality Circles 110 5.8.4 Significance of Roles in Management- Directed Activities 112 5.8.5 Support Functions in QCs and Jishukens 113 5.8.5.1 Coach and Facilitate Problem Solving 113 5.8.5.2 Jishukens and QCs Must Advance Stability through Standardization 114 5.8.5.3 Model the Company's Approach to Work 115 5.9 Summary 116 References 117 Chapter 6 The System Property of Differentiation in TPS 121 6.1 System Property: Differentiation 121 6.2 Toyota Production System and System Differentiation 123 6.3 Literature Review of Leadership 124 6.3.1 The Distinction between Management and Leadership 125 6.4 Literature Review of Leadership Theory 127 6.5 Leadership Theory for TPS 128 6.6 The What Function of TPS Leadership 129 6.7 The Why Function of TPS Leadership 134 6.8 The How Function of TPS Leadership..., 136 6.8.1 What If Leadership Is Not on Board with Defining, Coaching, or Implementing Lean? 139 6.9 The Where Function of TPS Leadership 140 6.10 The When Function of TPS Leadership 141 6.11 Summary 146 References 147
x Contents Chapter 7 The System Property of Hierarchies in TPS 151 7.1 System Property: Hierarchy 151 7.2 The Hierarchical Property of the Toyota Production System 152 7.3 Decision Making in Hierarchies 153 7.3.1 Vertical Decision Making 153 7.3.2 Horizontal Decision Making 154 7.3.3 Interdependent Decision Making 155 7.3.4 Interdependent Performance 156 7.3.5 Monitoring and Progress 157 7.3.6 Routine Work and Nonroutine Work inhoshin 157 7.4 Literature Review of Strategic Planning 158 7.4.1 Problems and Challenges in Strategic Planning 160 7.5 Strategic Planning Theories 161 7.6 A System of Hierarchies: The Hoshin Process 163 7.6.1 Planning Phase of Hoshin 163 7.6.2 Preparation Phase of Hoshin 167 7.6.3 Hoshin Implementation Phase 171 7.6.4 Hoshin Evaluation 174 7.6.5 End-of-Year Evaluation 176 7.7 A Theoretical Interpretation of Hoshin 176 7.8 Summary.- 179 References 179 Chapter 8 The System Property of Transformation in TPS 183 8.1 System Property: Transformation 183 8.2 The Conversion Process in the Toyota Production System 186 8.3 Literature Review of Change Management 187 8.4 Conversion Process: Ingestor 196 8.5 Conversion Process: Motor 198 8.6 Conversion Process: Converter 200 8.7 Conversion Process: Producer 203 8.8 Conversion Process: Supporter 205 8.9 Conversion Process: Distributor 208
Contents xi 8.10 Conversion Process: Matter-Energy Storage 210 8.11 Summary 210 References 211 Chapter 9 The System Property of Entropy in TPS 215 9.1 System Property: Entropy 215 9.2 Entropy in Organizations 217 9.3 Entropy in the Toyota Production System 219 9.4 Literature Review: The Human Resource Function 221 9.4.1 Japanese Management Techniques in Human Resources 222 9.4.2 Japanese Management Practices and Toyota 225 9.5 Minimizing Entropy Using the Human Resource Function in TPS 225 9.6 Hygiene Theory and TPS: The Essential Needs of the Individual 227 9.6.1 Stable Employee Relations 228 9.6.2 Fair Appraisal and Treatment 229 9.6.3 Improve the Terms and Conditions of Employment 232 9.6.4 Workplace Communication 233 9.7 Motivation Theory and TPS: The Intrinsic Needs of the Individual 235 9.7.1 Decision Making 238 9.7.2 Teamwork 239 9.7.3 Workplace Competence 241 9.8 Summary 243 References 244 Chapter 10 The System Property of Reversibility in TPS 247 10.1 System Property: Reversibility 247 10.2 Minimizing Entropy in the Management and Labor Relationship (Reversibility) 249 10.3 Literature Review: The Birth of the Toyota Production System as a Union 251
xii Contents 10.3.1 The Role of Trade Unions and the Human Resource Function in the United States 255 10.3.2 The Use of Lean in Human Resource Development 256 10.3.3 A Difficult Implementation of Lean in Union Environments in the United States 256 10.3.4 Union Problems and Lean Production in the Automotive Industry 258 10.3.5 A Successful Case of Lean Production in the Automotive Sector in a Union Environment 260 10.3.6 The Influence of Labor Unions in Japan on Lean Production 262 10.4 Internal Reversibility in TPS: A Union Perspective 263 10.4.1 Larger Employment Issues 267 10.5 External Reversibility in TPS: A Union Perspective 272 10.6 Summary 275 References 276 Chapter 11 The System Property of Negative Entropy in TPS 279 11.1 System Property: Negative Entropy 279 11.2 Negative Entropy and the Toyota Production System 280 11.2.1 Exceptional Creativity, Mundane Creativity, and Lifelong Learning 281 11.3 Organizational Learning and Communication: Some Basic Similarities with TPS 284 11.4 Literature Review of Organizational Learning and Communication 285 11.5 Organizational Learning Theory 288 11.6 Connecting the Kaizen Mind 292 11.7 The Preferred Learning and Communication Style for the Kaizen Mind 296
Contents xiii 11.8 Summary 298 References 299 Chapter 12 The System Property of Requisite Variety in TPS 303 12.1 System Property: Requisite Variety 303 12.2 A Theoretical Response to Complexity and Variety 304 12.3 Toyota Production System and the Law of Requisite Variety 306 12.4 Literature Review: Production Leveling 308 12.5 The Technical and Social Structures of Production Leveling 311 12.5.1 Technical System: Prevention 313 12.5.2 Technical System: Reactive 315 12.5.3 Social System: Prevention 319 12.5.4 Social System: Reaction "..323 12.6 Summary 324 References 325 Chapter 13 The System Properties of Interrelationship and Interdependence in TPS 329 13.1 System Properties: Interrelationship and Interdependence 329 13.2 Interrelationship and Interdependence in the Toyota Production System 332 13.3 Literature Review: Supplier Development 333 13.4 A Review of Toyota's Supplier Development Practices 337 13.5 Building Positive and Interdependent Structures in TPS 344 13.6 Summary 352 References 353 Chapter 14 The System Property of Equifinality in TPS 357 14.1 System Property: Equifinality and Multifinality 357
xiv Contents 14.2 The System Property of Equifinality for a Management System 358 14.3 The System Property of Equifinality for Non- Value-Added Work Environments 359 14.4 Literature Review 361 14.5 The TPS Goal in Facilities Maintenance 368 14.6 The Tenets of Waste Elimination in Maintenance 372 14.6.1 Establishing Normal Work in Unknown and Nonroutine Work Environments 372 14.6.2 Fewer Higher-Skilled Employees 376 14.6.3 Seibi: Starting Point for Equipment and Maintenance Standards 379 14.6.4 Improving Equipment Availability Using Problem Solving 380 14.7 Summary 382 References 383 Chapter 15 Summary 387 15.1 Systems Theory and the Modern Theory 387 15.2 Management System Properties Can Be Satisfied in Many Ways 390 15.3 Organizing the Properties of TPS for Implementation 390 15.4 Timing and Pace 392 15.5 How Do You Know When the Modern Theory of TPS Is Working? 393 Index 395