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14 MANAGEMENT PRINCIPLES
FROM THE WORLDS GREATEST MANUFACTURER
JEFFREY K. LIKER
CHALLENGE EVERYTHING.
All elements to be practiced everyday in a very consistent manner, not in spurts
PROBLEM SOLVING (Continuous Improvement and Learning) PEOPLE and PARTNERS (Respect, Challenge, and Grow Them) PROCESS (Eliminate Waste) PHILOSOPHY (Long- Term Thinking)
Organizational learning
Philosophy Process right People and partners building Problem solving operational excellence as strategic weapon
Founders thoughts
King of inventors of Japan- Sakichi Toyoda Toyota way- genchi genbutsu (1926) Toyota conglomerate- Keiretsu Automation with a human touch and mistake proofing- Jidoka/ autonomation Hard work, perseverance, discipline- James Watt Management by Facts
Kiichiro Toyoda
everyone should tackle some great project at least once in their life Education from Tokyo Imperial University Learning by Doing Pillars of the Toyota Production Systemjidoka, just-in-time Creativity, challenge, courage, commitment and patience
Taichi Ohno
One piece flow Pull system Kanban Shortening lead time by eliminating waste in each step of a process leads to best quality and lowest cost, while improving safety and morale Spirit of challenge- the acceptance of responsibility to meet the challenge
we accept challenges with a creative spirit and the courage to realize our own dreams without losing drive or energy. We approach our work vigorously, with optimism and a sincere belief in the value of our contribution we strive to decide our own fate. We act with self reliance, trusting on our own abilities. We accept responsibility for our conduct and for maintaining and improving the skills that enable us to produce added value
Kaizen- change for the better Kaikaiku- major revolutionary change Walk the actual path- to construct the value stream Takt- German word for meter Total Productive Maintenance- always a sense of urgency
Framework
Quality Cost Delivery Safety Morale
JIT
(JUST IN TIME)
CONTINUOUS IMPROVEMENT
GENCHI GENBUTSU 5 WHYS EYES FOR WASTE PROBLEM SOLVING
JIDOKA
(IN STATION QUALITY)
Never be satisfied with inaction Question and redefine your purpose to attain progress 5S facilitates teamwork Sensei- mentors Total Budget Control System
Muri- no value added beyond capability Mura- unevenness most businesses are 90% waste (muda) and 10% value added work
4 tools
1. 2. 3. 4. Go and see Genchi genbutsu (refered as Management by Walking Around Analyze situation first by Hewlett Packard) Use one piece flow and Andon Ask why? 5 times
Standardized work
Takt time Sequence of process Inventory required
COERCIVE BUREACRACY
ENABLING
AUTOCRATIC
ORGANIC
A3 reports
State problem Document current situation Determine the root cause Suggest alternate solution Suggest recommended solution Cost-benefit analysis
Jishuken- voluntary study groups Hoshin kanri- policy deployment Horensu- to report, give updates periodically (a form of micro management) Thorough consideration in decision making
Nemawashi- decision making to all options and rapid implementation Integrity and excellence Kozokeikaku- structure plan (K4) a picture is worth a thousand words
Meeting
Clear objectives prior to the meeting The right people at the meeting Prepared participants Effective use of visual aids Separate information sharing from problem solving The meeting starts and ends on time
Hansei (relentless reflection) + kaizen (continuous improvement)= learning organization Pareto- the only statistical tool used in toyota technical center Point of cause (POC)
Hoshin kanri (policy deployment process) for stretching the improvement goals
Adapt-Develop-Sustain
Value Stream Mapping- Material and Information Flow Diagram (Mike Rother and John Shook, 1999) Project review events (Hansei) Box- process, triangle- inventory Task time- TT, Time in System- TIS, Value Ratio- VR Core Value Stream
PEOPLE PHILOSOPHICAL
Builder of Learning Organizations Here is our purpose and direction- I will guide and coach
Top-Down (Directives)
Level of Involvement
Seek group Input, then decide and announce Seek Individual Input, then decide and announce Decide and Announce
Time
The Real Problem 3. Locate Cause/ Point of Cause POC Basic Cause and Effect Investigation 4. 5- Whys? Investigation of Root Cause
Root Cause
5. Countermeasure
6. Evaluate
7. Standardize
High-Level Plan
Check Improvement? Method? Result? Countermeasure? Target & Time? All 3 Levels
Eliminate Waste
Kaizen workshops
Phase I Phase II Phase III
What TPS is
A consistent way of thinking A total management philosophy Focus on total customer satisfaction An environment of teamwork and improvement A never ending search for a better way Quality built in process Organized, disciplined workplace evolutionary
5. Use kaizen workshops to teach and make rapid changes 6. Organize around value streams 7. Make it mandatory 8. A crisis may prompt a lean movement, but may not be necessary to turn a company around 9. Be opportunistic in identifying opportunities for big financial impacts
10.Realign metrics with a value stream perspective 11.Build on your companys roots to develop your own way 12.Hire or develop lean leaders and develop a succession system 13.Use experts for teaching and getting quick results
Thank you..!