industrial blitzkrieg

8/2/2019 Industrial Blitzkrieg

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Dr. C. W. Richards 1/12/99 Industrial Blitzkrieg 1

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2/32


John Boyd and the Toyota

Production System

This might seem like and odd topic. After all, nowhere in the

many descriptions of the TPS are OODA loops mentioned, and

I dont think John ever even owned a Toyota.

On the other hand, he did devour the translations of TaiichiOhno and Shigeo Shingo and freely acknowledged that they

drew from many of the same sources as he didthe strategic

tradition that includes Sun TzusArt of Warand Musashis

Book of Five Rings.

Most important, the TPS represents a spectacularly successful

confirmation of the preeminence of time, a fact explicitly

recognized by Toyota itself and a main theme of Boyds

theory of competition.


3/32


To paraphrase Tom Peters Turn

Manufacturing into a Marketing

Weapon, a chapter in Thriving on

Chaos

The Goal


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Manufacturing as a Competitive Weapon

Shorter throughput (order to delivery)

Lower costs

Higher quality

More flexibility


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Toyota Motor Company,Toyota Production System, p. 2

The Strategy


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Why Toyota?

The Plan


7/32Dr. C. W. Richards 1/12/99 Industrial Blitzkrieg 7

Costreduction is the goal

Manufacturing

as a

Competitive

Weapon

There are two ways to increase

efficiency: 1) increase production

quantity or 2) reduce the number of

workersTaiichi Ohno.

Over time, lower costs,

higher quality, and faster

development & production

times will increase sales.

Reduce

people at all

levels in theorganization

Cost Reduction Is the GoalCost Reduction Is the Goal

In the short term,

you may need to

Why?



A Lean Paradox(Just One of Many)

Resolve how to

maintain

mutual trust

while reducing

people

Reducing costs means reducing people, but if you eliminate people

as a result of improvement, you will get no more improvement.

Reducing costs means reducing people, but if you eliminate peopleas a result of improvement, you will get no more improvement.

The Toyota Production System clearly reveals

excess manpower

Managements responsibility is to identify excessmanpower and utilize it effectively.

Hiring people when business is good and

production high just to lay them off is a bad

practice.

On the other hand, eliminating wasteful and

meaningless jobs enhances the value of work for

workers.

Taiichi Ohno.



Implementing the TPS

Develop A

Lean Strategy

Create a sense of urgency

Throughout the enterprise,

sell lean/TPS as the solution

Hire asensei & retain design

talent

Establish targets

Resolve how to maintain

mutual trust while reducing

people

Give preliminary thought to

supplier issues

Consider the competitiveenvironment

Manufacturing

as a

Competitive

Weapon

Design The

Manufacturing

System

Identify the

customer base

and product range

Identify takt time

& its rangeApply axiomatic

design to create

the basic factory

system

Eliminate non-

essential

infrastructure and

layers above thefactory floor

Establish FlowEstablish Flow

Within CellsWithin Cells

Establish FlowEstablish Flow

Within CellsWithin Cells

Form cells based

on takt time

Define standard

work content for

each operation tobe < takt time

Separate worker

from machine

(jidoka)

Develop quick

setups & standard

WIP (SMED)

Standardizeoperations

Form cells based

on takt time

Define standard

work content for


Separate worker

from machine

(jidoka)

Develop quick

setups & standard

WIP (SMED)


Establish PullEstablish Pull

Between CellsBetween Cells

Establish PullEstablish Pull

Between CellsBetween Cells

Design an

information

system to produce

only the products

required by the

downstream cells

Incorporate takt

time to drive flows

Institute leveled

production

(heijunka)

Use visual control

systemsImplement total

productive

maintenance

Strive For

Perfection

Institute kaizen

& institutionalize

5Ss throughout

organization

Transferownership of all

processes to work

force

Push lean down

to suppliers

Integrate product

development

Reduce people atall levels in the

organization

All activities must support the goal of shortening the time ittakes to convert customer orders into deliveries. Toyota

Motor Corporation, 1992



(Hit any key/left mouse

button to continue)

Apply axiomaticApply axiomatic

design to createdesign to create

the basic factorythe basic factory

systemsystem

A TPS Glossary



Identify the

customer base

and product range

Identify takt time

& its range

Apply axiomatic

design principles

to create the basic

factory system

Develop A

Lean Strategy




Hire asensei & retain design

talent

Establish targets


mutual trust while reducing

people

Give preliminary thought to

supplier issues

Consider the competitiveenvironment

Manufacturing

as a

Competitive

Weapon

Design The

Manufacturing

SystemEstablish Flow

Within Cells

Form cells based

on takt time

Define standard

work content for


Separate worker

from machine

(jidoka)

Develop quick

setups & standard

WIP (SMED)


Establish Pull

Between Cells

Design an

information

system to produce

only the products

required by the

downstream cells

Incorporate takt

time to drive flows

Institute leveled

production

(heijunka)

Use visual control

systemsImplement total

productive

maintenance

Strive For

Perfection

Institute kaizen

& institutionalize

5Ss throughout

organization

Transferownership of all

processes to work

force

Push lean down

to suppliers

Integrate product

development

Reduce people atall levels in the

organization






Eliminate non-essential

infrastructure

and layers

above the

factory floor


mutual trust while

reducing people

jump Hot buttons

Integrate product

development



Transferownership of

all processes to

work forceApply axiomatic

design to create

the basic

factory system

A TPS Glossary

HotButtonExcursions



We strive continuously to find and implement

ways to shorten that (order-to-delivery) sequence

and to make it flow even more smoothly.

A smooth flow of production and continuingimprovements can support tremendous gains

in productivity and product quality.

Toyota Motor Corporation

Success in war depends on the golden rules of war:

Speed, simplicity, and boldness.

Patton



The Toyota Production System

follows The Tao (The Way), the

ancient Eastern concept of

harmony, flow, and power

Home

The End

Zen and the TPSFoundations:

A TPS Glossary



Create a Sense of Urgency. title of a chapter inTom Peters Thriving on Chaos

Companies that are making even a modest profit

never use the Toyota Production SystemCompanies

that are doing fairly well become selective (i.e., in

what measures they are willing to take)Taiichi

Ohno

Only the Paranoid SurviveTitle of Andy Groves(Chairman of Intel) book

Windows (and Microsoft) can be replacedBill Gates

Back

Create a Sense of Urgency



Back

Eliminating Non-Essential Layers Question: Who were the people in those six management layers Mike

Walsh eliminated?

Answer: The railroad's (and the nation's) best and brightest. (Tom Peters,

Crazy Times Call for Crazy Organizations, p. 33, refering to Union Pacific

and its president, the late Michael Walsh)

Neutron Jack nickname for GE Chairman John E. Welch. Early in his

tenure as chairman, he had eliminated so many layers and positions that

people said the place looked like it had been hit by a neutron bomb - the

buildings were standing but the people were gone.

Excessive layers are: expensive, slow, and rob subordinates of initiative.

With one-third the volume and three times the variety, the Japanese

company has only one-eighteenth the number of overhead employees.

(Stalk & Hout, 53)

Elimination of these layers gives an immediate boost to your efforts to

create a sense of urgency. Ideally, this should done in one fell swoop,

before other improvements are well underway. Otherwise, you may be

seen as eliminating people as a result of improvements.



Back

Maintaining Mutual Trust

The most important factoris maintaining a relationshipof trust between labor and managementShigeo Shingo

If you dont trust the people, you make them

untrustworthyTao Te Ching.

Implies that the company system needs to reinforceimprovements, including cost savings: Need to reward

people for reducing the number ofpeople at all levels of

the organization. Toyota has created a way to do this.

For example, when a team reduces the number of peopleit needs, the top member of that team is removed and

promoted or sent for special training, etc.


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Selling theTPS

As of this writing (1998), the TPS is the only system that

can make major improvements in throughput time andcost

andquality andflexibility, simultaneously

The TPS is the only production system with the stated goal

ofboth reducing costs andincreasing sales

If your employees dont have an opportunity to test your thinking in live

sessions or electronically, your message will seem like so much hot air Resist the temptation to do whats easy here. Communicating strategic

change in an interactive, exposed fashion is not easy. But it is absolutely

necessary. (Andy Grove,Paranoid, 157.)

If your employees dont have an opportunity to test your thinking in live

sessions or electronically, your message will seem like so much hot air

Resist the temptation to do whats easy here. Communicating strategic

change in an interactive, exposed fashion is not easy. But it is absolutely

necessary. (Andy Grove,Paranoid, 157.)

The message:

Sales strategy:

Back


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Transferring Ownership

Writing the standard worksheet yourselftitle ofa section in Ohnos book

An especially important aspect of standardized

work at Toyota is that the employees who

implement its guidelines are the same people whoestablish those guidelinesTMC, Toyota

Production System, p. 40

Experience has proven that the more authority

employees have to manage their own work, the

more inclined they are to pursue improvements in

that workibid, p. 7Back


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Axiomatic Design I

It all starts with our understanding of what thecustomer will buy (wants)

Wants define functional requirements (FR)the

business objectives and whatswhich are then

satisfied by design parameters (DP), the hows.Rule: one DP for each FR

Two major axioms:Independence: Strive for an uncoupled design (maintain

independence in the design matrix), which 1) minimizes the

opportunities for unexpected system behavior and 2) eliminates

need for the extensive optimization required by coupled designs

Information: roughly, minimize the information content.

Implementing

the TPS

AD II

Based on the decomposition of the TPS by Professor David Cochran of MIT


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Axiomatic Design II

Using the axioms, one can develop a productionsystem design hierarchy that proceeds down

several levels to the actual machine and operation

design

The Toyota Production System guides the

decomposition and provides the DPs. For example,

the following are meant to satisfy the high level

FR, Increase Sales Revenue:Mass Production DP: Maximize Production Output

Lean DP: Maximize Customer Satisfaction

AD I

Why

AD


21/32


Why Axiomatic Design?

Using axiomatic design we can create a top-down blueprint for the factory, including

cell layouts (number, composition, arrangement)

integration of subassembly flows into final

assembly

information systems to link components

Most important, when the components are completedand linked, we can be confident that they will work

together harmoniously to produce our products at the

rate we specified and reap the benefits of the TPS.

Most important, when the components are completed

and linked, we can be confident that they will work

together harmoniously to produce our products at the

rate we specified and reap the benefits of the TPS.AD II

Implementing

the TPS


22/32


Back

Toyotas own development system is matched to the TPS. It is

not a case of removing non-value-added activities from a

conventional design process.*

Toyotas own development system is matched to the TPS. It is

not a case of removing non-value-added activities from a

conventional design process.*

Toyota uses a relatively unstructured development process: its

multidisciplinary teams are neither collocated nor dedicated

While conventional concurrent engineering (CE) reduces the

number of prototypes, Toyotas suppliers seem to multiplyprototypes, to an apparently absurd degree

While in most cases, CE seeks to freeze specifications quickly,

Toyotas engineers and managers try to delay decisions and provide

suppliers with hard specifications very late in the process.

Toyotas development process seems to require about 50% fewerperson-years than Chryslers LH.

* From The Second Toyota Paradox: How Delaying Decisions Can Make Better Cars Faster, by Allen

Ward, Jeffrey K. Liker, John J. Christiano, and Durward K. Sobek II, Sloan Management Review,

Spring 1995, pp. 43ff.


23/32


As educated Japanese, the creators of the TPS were followers of the

philosophy/religion known in the West as Zen The fundamental ideas of the TPS have immediate roots in

e.g.,

Total elimination of waste: When people practice an art, they always think

they will have another chance to try again, so they are not aware of the

slackness in their minds at the moment. Each time, determine that you will

settle the matter with this one arrow. The Japanese Zen classic,

Tsurezuregusa

Flow: Zen Master Takuans instructions to the martial artist Yagyu Munenori

all hinge on the central principle of fluidity Thomas Cleary, The

Japanese Art of War. TPM: He who excels at resolving difficulties does so before they arise.Tu

Mu, canonical commentator on the Taoist classic, Sun TzusArt of War

We seek the Way and study it devotedly.Taiichi Ohno

Zen and the Art of Implementing the TPS

Zen/Taoism

The

End

More

Zen


24/32


You dont need to be a Zen master to implement TPS. However,

The whole of the TPS reflects a coherent philosophy about the

way the world works.

So, pieces of the TPS taken out of context may not produce the

results we want.

For example, kanban are generally considered just a control

mechanism. But compare:

The paperwork is minimal. The efficiency is maximal. And

the employees themselves are completely in charge. Toyota

Motor Corporation, Toyota Production System, 1992, p. 29 The Master does not talk, she acts. When her work is done,

the people say, Amazing: We did it, all by ourselves! Tao

Te Ching, c. 500 B.C., 17.

*

*On the other hand, it couldnt hurt

Implications

The

End

Zen/

TPS


25/32


Zen and Taoism in The TPS Although this presentation tends to use the labels interchangeably, Zen and

Taoism are actually different things (with Zen borrowing heavily from the

indigenous Taoism). Zen is a school of Buddhismoriginally from Indiathat arose in China in the

7th Century A.D. and came to Japan starting in the 13th Century. Among its

fundamental ideas, as applied to the TPS, are the mind that does not stick,

objective perception of the world, and implicit communication among

individuals. The samurai Miyamoto Musashis classic,Book of Five Rings (1645

A.D.), which is widely studied in Japanese business schools, embodies a Zenapproach to competition.

Taoism is an ancient Chinese philosophy dating back (according to legend) to

the Yellow Emperor in the 3rd millennium B.C. It stresses harmony and flow

and recommends a minimalist approach to management. The ideal Taoist doctor

has no reputation as a healer because there is no disease in his or her area.

Perhaps the best known Taoist texts to westerners are the Tao Te Ching, c. 500

B.C., and Sun TzusArt of War, from c. 400 B.C.

More info? The introductions to Thomas Clearys The Japanese Art of Warand

his translation of Sun Tzus Art of War(both from Shambhala Press), and, of

course, Robert M. PirsigsZen and the Art of Motorcycle Maintenance andLila. Back


26/32


Cost vs. Vitality & Growth

As you reduce costs, you create options:Lower prices, which often lead to higher market share

More R & D

Growth through acquisitions or diversification

Higher investment in training and equipment

Greater profitability, which rewards shareholders,

including employees

Options give the company the means to surviveon its own terms, even in slow economic times,

and grow as the economy recoversBack


27/32


A TPS Glossary 5Ssfive Japanese words, all beginning with an s sound, which

establish the cultural environment for continuous improvement

Cycle timefor a machine or cell, time from completion of one item tocompletion of the next. Cycle times must harmonize with takt time

(which defines balanced production). Often confused with throughput

time, which is the length of time a part is in the cell (also, factory

throughput time, from the start of production to delivery).

Heijunka(fm. Japanese*, smoothing, making level) productionleveling. Involves producing in sequences like abacababac rather than

aaaaabbbcc (where a, b, and c are models or products). Solves problems

inherent in the TPS that can cause queuing and line stoppages.

Jidoka(fm. Japanese, automation with human characteristics)

separation of worker and machine. Implies that machines will stop if anerror occurs. Alternative is people watching machines work. Allows

manning of cell to vary with demand. Encourages teamwork and

facilitates kaizen.

Implementing

the TPS II

*Many thanks to Lennart Kampman of the Copenhagen Business School for his

translations and interpretations.


28/32


A TPS Glossary, II Just-in-timeIn a flow process, the right parts needed in assembly

reach the assembly line at the time they are needed and only in the

amount needed. (Ohno, p. 4). As Ohno explains, this does notimplythat the parts must arrive exactly when needed. Instead, a pull

(kanban) system is used. Toyota explains that the goal of JIT is to

translate each order into a delivery of a finished, quality vehicle as

quickly and efficiently as possible.

Kaizen(fm. Japanese kai, change, modify, improve and zen,

goodness, virtue - not the zen in Zen, which comes from the original

Chinese, Chan) continuous improvement. Activities carried out by

the members of a cell or other unit in order to improve production

within that unit. May involve work process or machines. Ultimate

goal is to shorten throughput times and increase the ratio of

processing (value added) time to total time, leading to an eventual

reduction in manpower. Other improvement efforts are kaikaku, or

radical change, carried out under the direction ofsensei.

I III

Implementing

the TPS


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A TPS Glossary, III

Kanban(fm. Japanese for signboard) Primary means forcontrolling production in the TPS. Kanban are usually cards

that the downstream cells take to the upstream cells in order to

withdraw (pull) parts. The upstream cell then uses the kanban

as shop orders to replenish just the parts taken.

Lean productionproducing with a shorter delivery span, at

lower cost, with greater quality, and with more flexibility

(variety on the line; quicker introduction of new models)

Senseiteacher, commonly of the martial arts; used to denote

an expert with a track record of implementing the TPS SMEDsingle minute exchange of dies. Very rapid set-ups

so that heijunka sequences can be produced economically

II IV

Implementing

the TPS


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A TPS Glossary, IV Takt time(fm. the German for meter or measure, as in

music) pace of customer demand. Time to produce one itemsold, e.g., a car every 2 minutes or an aircraft every 8 days.

Cycle times of all components of the factory must harmonize

with takt time (axiomatic design ensures this), or shortages &

build up of inventory will occur. Toyota Production System (TPS)only known example of

a lean production system. Pillars of the TPS are just-in-time

(pull) andjidoka. These rest on leveled (heijunka) &

balanced production, and lead time reduction, which depends

on reducing set-up times to under 10 minutes (ideally less

than 1). The basic form evolved at Toyota from 1948 to

1973, largely under the guidance of Taiichi Ohno.

III V

Implementing

the TPS


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A TPS Glossary, V

Total Productive Maintenanceensuring that machines

are 100% available during the production period. Generally

requires operating machines at well under full utilization to

allow time for maintenance & modification

Value addeda term used by Toyota only in connection

with kaizen, where it is generally synonymous with

processing (see Ohno, p. 57)

Visual controlmanagement by sight. The TPS arranges

the factory so that abnormalities stand out and so can (and

will) be eliminated.

More info? Most of these terms are well defined and illustrated inLean Thinking, by

James P. Womack and Daniel T. Jones (New York: Simon & Schuster, 1996)

IV

Implementing

the TPS


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Whats So Great About Toyota? Spurred by the mid-1970s recession, other Japanese companies began

installing the TPS, achieving gains in labor productivity in the 150%

range, and increasing net asset productivity by an average 50% (Stalk andHout, Competing Against Time, 152)

By the mid-1980s, the International Motor Vehicle Program at MIT

documented that Toyota was building cars in roughly half the time, at

roughly 2/3 the manhours, and with one-fifth the defects. IMVP

researchers coined the phrase lean production to describe the TPS andcompiled their findings in the bookThe Machine that Changed the World.

Further, it could develop cars in half the time required in Europe or

Detroit. Companies using the TPS consistently provide fresher product

offerings that have a higher degree of technological sophistication. (Stalk

& Hout, 30)

Despite the current Asian economic troubles, which caused a 14.4% drop

in Toyotas Japanese car sales, its automobile operations actually

increased in profitability, and continued to gain market against rivals in

North America (New York Times, November 21, 1998) Back

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