Toyota. Moving Forward.
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It’s called Kaizen. Kaizen is built on two principles. ‘Continuous improvement’ and ‘respect for people.’ This is not a sound-byte. Management lives it and employees do as well. We reviewed Lean elsewhere in this site; but it is crucial to The Toyota Production System.
If you don’t have time to read my page on Lean, here is a summary: Do more of what matters and is essential. Eliminate everything else. But if you have the time….read my page anyway.
Let’s review the "respect for people" aspect first:
Jobs are classifies by the task at hand and the knowledge required to complete the task correctly. For example, putting on the tires and all the physical actions required to install them.
Training covers not only how to do the specific job, but motivation and goals as well.
Trainers use a deliberate and methodical training approach. Break each process down into its component parts. Point out the important steps. Teach each student how to do each function as part of the overall job. And last but not least…..evaluate performance and follow up later.
Invest in the future of your employees; their training and careers.
Ok....it's not brain surgery. But does your company do it?
Toyota is one of the most successful car companies in the world. How successful? They earned more profit than the earnings of GM, Ford and Chrysler…….did I mention, combined?
Lean production is central to the process. Here are some interesting points about the way things are done:
• Not everything has to be working at all times. In other words, a machine or process can go idle. Overproduction is a major cause of waste.
• Smooth production. Reacting to varying levels of consumer demand can cause problems. It is better to overproduce finished goods if necessary……if it is to keep fulfillment levels steady.
• No need to have max out the assembly line. It seems it would make sense to have employees produce as much as possible. What will you have gained? Overproduction and an increase in costs.
• Senior managers on the floor. To see what needs to be fixed, you must be part of the process. Toyota’s senior managers are involved in the line and the nitty-gritty.
Toyota’s manufacturing process achieves what is called a one-piece flow. The idea is to tightly link each process with the one that comes before it. Each department gets the information it needs, just when it needs it, from the supporting department.
Why? Problems don’t have a place to hide. If for some reason the spray paint department has a disruption in flow…..you know just where to look. Either in the paint department or the process right before it. Immediate feedback, immediate attention.
The most common forms of waste identified by Toyota are: overproduction, excess inventory, needless transportation, time delay, unproductive movement and unused employee creativity.
When other companies try to employ lean production methods they usually run into problems. They think lean is a series of tools or bringing in a consultant who leaves you with a list of steps. It is much more than that. It is a cultural adjustment that affects the entire business and requires employee involvement.
Toyota does not seek the next big idea that revolutionizes the car industry. They look for simple ideas that make an impact.
The Toyota Way can be broken down into several principles. Some will seem obvious…..but not any more obvious than all the management books that come across my desk.
• Warren Buffett doesn’t trade in the short-term, neither should your company. Pursuing a long term strategy is always the surest course. Generating value for your customers, strong relationships with suppliers and employees only happen in the long term.
• As mentioned above, Toyota uses a “one-piece flow.” Otherwise known as lean. By making separate processes dependant on each other, a problem with one event can stop an entire production line. The benefit of a situation like this, is problems are identified immediately.
• Use “pull”. In retail, a “push” system loads inventory onto a retailer's shelves as soon as you can get them out the door. This leads to one of the biggest sources of waste. Overproduction and waste of storage space. A pull system provides inventory just as the store need replenishment.
• Standardize it. Baseball players and golfers swing the way they were taught by coaches. Why? Because time and experience has shown if you want to bash the ball as far as possible, this is how you do it.
Teach employees a standard way to complete tasks. People get better at things they do over and over.
• See everything. Some plant floors are so jammed with goods and machinery you have no idea what’s going on in half your factory. Maintain visual control so you can monitor the process.
• Respect the supply chain. You may buy things from them or they may buy things from you. Either way, you’re only as good as your suppliers and customers. Expect high standards and offer to help your suppliers achieve them.
As I end this brief insight into Toyota’s success, I’d like to repeat the two principles that are ingrained in this company’s culture:
Continuous Improvement ~ Respect For People
They got my vote.
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