continuous improvement using the toyota way
Post on 13-Sep-2014
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This slide deck provides a summary of the famous Toyota Way and process framework for continous improvement. It can be used in any industry not specifically manufacturing. I created it for Hi Tech.TRANSCRIPT
Tips and Tools to be effective Toyota Way for Continuous Improvement
Anita Rao
June 2013
Y?
By constant improvement based upon action, one can rise to a
higher level of practice and knowledge
- Fuji Cho, Toyota, 2002
Agenda
The “4P” model
Process guiding principles
PDCA Problem Solving
Business outcomes from Problem Solving
Feedback Loop in ecosystem
RCA for process improvements
Strong foundational culture
Formula for Delighted Customer
The 4 “P” Model
Process
(Eliminate Waste)
People & Partners
(Respect, Challenge & Grow
Them)
Problem Solving
(Continuous
Improvement
& Learning)
• Continual organizational learning through kaizen
• Thoroughly understand the situation
• Make decisions, thoroughly considering all
options, implement rapidly
• Base management
decisions on long term
philosophy even at the
expense of short term
financial goals
• Create process flow to surface
problems
• Level out workload
• Stop when there is a quality problem
• Use visual controls
• Grow leaders who live the philosophy
• Respect, develop and challenge your people
and teams
• Respect, challenge and help suppliers
Philosophy
(Long Term Thinking)
Source Jeffrey K. Liker
Process Guiding Principles
Create process “flow” to bring problems to the surface
Use pull systems to avoid “over engineering” of process
Level out the workload (heijunka)
Stop where there is a quality problem (jidoka)
Standardize tasks for continuous improvement
Use visual controls so no problems are hidden
Use reliable, thoroughly test technology
Source Jeffrey K. Liker & James K. Franz
PDCA Problem Solving
1. Monitor Progress of Implementation Plan
2. Modify Plan if Necessary 3. Monitor Results
1. Develop implementation plan 2. Communicate Plan
3. Execute Plan
1. Evaluate Results 2. Standardize Effective Counter Measures 3. Identify Further Improvement 4. Spread Best Practices 5. Start PDCA Again
1. Identify gap to target 2. Analyze root cause 3. Formulate counter measure
Grasp the Situation
Check Adjust
Plan Do
Source Jeffrey K. Liker & James K. Franz
Work towards the business outcome
through creative problem solving
Current State
Target Condition
Target State
Business Outcome
Target Condition
Target Condition Creative
Tension
Problem
Solving
Grasp
The Situation
Plan
Do
Check
Adjust
Grasp
The Situation
Plan
Do
Check
Adjust
Grasp
The Situation
Plan
Do
Check
Adjust
Grasp
The Situation
Plan
Do
Check
Adjust Gap = Challenge
Source Jeffrey K. Liker & James K. Franz
Feedback loop in ecosystem
Partners Customers Company Processes
In Process
Feedback
Feedback from
Customers Feedback to
Partners
Source Jeffrey K. Liker & James K. Franz
Root Cause Analysis: “why” Process
Improvements are continual
9
Why?
Process improvements are continual and affect KPIs
People in the work area are accountable & trained
They report to leaders who are accountable & trained
They report up to senior leaders who believe in respect for people & continuous improvement
So that we can Protect and manage information, so everyone is free to focus on achieving their goals
Why?
Why?
Why?
Source Jeffrey K. Liker & James K. Franz
Guiding Leadership builds a strong
foundational culture
Highly Developed Work Groups
Middle Managers as Coaches
Executives as visionaries and
guides
Continuous Checking
and Adjusting
Consistency of Direction
Through
Hoshin Kanri
Culture of continuous improvement : Skills & Commitment
Source Jeffrey K. Liker & James K. Franz
Engaged People and Exceptional Processes
= Delighted Customers
Struggling Getting By
Fire- fighting
Excelling
High Low
Process Strength
Step 4Low
Step 4
Step 4
Low
H
igh
Peo
ple
Str
engt
h
Source Jeffrey K. Liker & James K. Franz
Low
H
igh
Thank You
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