Transcript No Slide Title

Welcome!
Slide Show/
View Show
2
1 Except as noted, each
slide is fully animated.
When it’s time to go on,
action buttons will
appear:
Some pages have notes:
After the show, hit Esc,
then select View/Notes
Page. Notes start on P. 2
Jump
This is a
demo button.
It doesn’t
actually work
Hot buttons
generally look
like this.
Click to jump.
4 (Please start the slide
show to begin)
3
Dr. C. W. Richards 1/12/99
You can leave the show at
any time by pressing Esc
Industrial Blitzkrieg
(These buttons are
just examples)
1
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 don’t think John ever even owned a Toyota.
• On the other hand, he did devour the translations of Taiichi
Ohno and Shigeo Shingo and freely acknowledged that they
drew from many of the same sources as he did—the strategic
tradition that includes Sun Tzu’s Art of War and Musashi’s
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 Boyd’s
theory of competition.
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
2
The Goal
To paraphrase Tom Peters’ “Turn
Manufacturing into a Marketing
Weapon,” a chapter in Thriving on
Chaos
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
3
Manufacturing as a Competitive Weapon
• Shorter throughput (order to delivery)
• Lower costs
• Higher quality
• More flexibility
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
4
The Strategy
Toyota Motor Company,
Toyota Production System, p. 2
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
5
The Plan
Why Toyota?
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
6
Cost reduction is the goal
“Cost Reduction Is the Goal”
Why?
There are two ways to increase
efficiency: 1) increase production
quantity or 2) reduce the number of
workers—Taiichi Ohno.
In the short
term, you may
need to
Over time, lower costs,
higher quality, and faster
development & production
times will increase sales.
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
•Reduce
people at all
levels in the
organization
Manufacturing
as a
Competitive
Weapon
7
A Lean Paradox
(Just One of Many)
Reducing costs means reducing people, but if you eliminate people
as a result of improvement, you will get no more improvement.
The Toyota Production System clearly reveals
excess manpower…
•Resolve how to
maintain
mutual trust
while reducing
people
Management’s responsibility is to identify excess
manpower 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.
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
8
Implementing the TPS
All activities must support the goal of “shortening the time it takes to convert
customer orders into deliveries.” Toyota Motor Corporation, 1992
Develop A
Lean Strategy
•Create a sense of urgency
•Throughout the enterprise,
sell lean/TPS as the solution
•Hire a sensei & retain
design talent
•Establish targets
•Resolve how to maintain
mutual trust while reducing
people
•Give preliminary thought to
supplier issues
•Consider the competitive
environment
Design The
Manufacturing
System
•Identify the
customer base
and product
range
•Identify takt time
& its range
•Apply axiomatic
design to create
the basic factory
system
•Eliminate nonessential
infrastructure and
layers above the
factory floor
Establish Flow
Within Cells
Establish Pull
Between Cells
Strive For
Perfection
•Define standard
work content for
each operation to
be < takt time
•Design an
information
system to produce
only the products
required by the
downstream cells
•Institute kaizen
& institutionalize
5Ss throughout
organization
•Separate worker
from machine
(jidoka)
•Incorporate takt
time to drive
flows
•Develop quick
setups & standard
WIP (SMED)
•Institute leveled
production
(heijunka)
•Standardize
operations
•Use visual control
systems
•Form cells based
on takt time
•Implement total
productive
maintenance
(Hit any key/left mouse
button to continue)
A TPS Glossary
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
•Transfer
ownership of all
processes to work
force
•Push lean down
to suppliers
•Integrate product
development
•Reduce people at
all levels in the
organization
Manufacturing
as a
Competitive
Weapon
9
Hot Button Excursions
All activities must support the goal of “shortening the time it takes to convert
customer orders into deliveries.” Toyota Motor Corporation, 1992
Develop A
Lean Strategy
•Create
•Createa asense
senseofofurgency
urgency
•Throughout
•Throughout the
the enterprise,
enterprise,
sell
lean/TPS
asthe
thesolution
solution
sell lean/TPS as
•Hire a sensei & retain
design talent
•Establish targets
•Resolve
•Resolve how
how to
tomaintain
maintain
mutual
mutualtrust
trustwhile
whilereducing
people
reducing people
•Give preliminary thought to
supplier issues
•Consider the competitive
environment
jump
Hot buttons
Dr. C. W. Richards 1/12/99
Design The
Manufacturing
System
•Identify the
customer base
and product
range
•Identify takt time
& its range
•Apply axiomatic
•Apply axiomatic
design principles
design to create
to create the
the basic factory
basic factory
system
system
•Eliminate nonessential
infrastructure
and layers
above the
factory floor
Establish Flow
Within Cells
Establish Pull
Between Cells
Strive For
Perfection
•Define standard
work content for
each operation to
be < takt time
•Design an
information
system to produce
only the products
required by the
downstream cells
•Institute kaizen
& institutionalize
5Ss throughout
organization
•Separate worker
from machine
(jidoka)
•Incorporate takt
time to drive
flows
•Develop quick
setups & standard
WIP (SMED)
•Institute leveled
production
(heijunka)
•Standardize
operations
•Use visual control
systems
•Form cells based
on takt time
•Implement total
productive
maintenance
A TPS Glossary
Industrial Blitzkrieg
•Transfer
•Transfer
ownership of
ownership
ofall
all
processes
to
work
processes to
force force
work
•Push lean down
to suppliers
•Integrate
•Integrate product
product
development
development
•Reduce people at
all levels in the
organization
Manufacturing
as a
Competitive
Weapon
10
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 continuing
improvements 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
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
11
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 continuing
improvements 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
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
12
The End
Foundations:
A TPS Glossary
Zen and the TPS
The Toyota Production System
follows The Tao (“The Way”), the
ancient Eastern concept of
harmony, flow, and power
Home
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
13
Create a Sense of Urgency
• “Create a Sense of Urgency.”— title of a chapter in
Tom Peters’ Thriving on Chaos
• Companies that are making even a modest profit
never use the Toyota Production System…Companies
that are doing fairly well become selective (i.e., in
what measures they are willing to take)—Taiichi
Ohno
• Only the Paranoid Survive—Title of Andy Grove’s
(Chairman of Intel) book
• Windows (and Microsoft) can be replaced—Bill Gates
Back
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
14
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
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
15
Maintaining Mutual Trust
• The most important factor is maintaining a relationship
of trust between labor and management—Shigeo Shingo
• If you don’t trust the people, you make them
untrustworthy—Tao Te Ching.
• Implies that the company system needs to reinforce
improvements, including cost savings: Need to reward
people for reducing the number of people at all levels of
the organization. Toyota has created a way to do this.
For example, when a team reduces the number of people
it needs, the top member of that team is removed and
promoted or sent for special training, etc.
Back
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
16
Selling theTPS
The message:
• As of this writing (1998), the TPS is the only system that
can make major improvements in throughput time and cost
and quality and flexibility, simultaneously
• The TPS is the only production system with the stated goal
of both reducing costs and increasing sales
Sales strategy:
If your employees don’t 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 what’s easy here. Communicating
strategic change in an interactive, exposed fashion is not easy. But it is
absolutely necessary. (Andy Grove, Paranoid, 157.)
Back
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
17
Transferring Ownership
• “Writing the standard worksheet yourself”—title
of a section in Ohno’s book
• An especially important aspect of standardized
work at Toyota is that the employees who
implement its guidelines are the same people who
establish those guidelines—TMC, 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 work—ibid, p. 7
Back
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
18
Axiomatic Design I
Based on the decomposition of the TPS by Professor David Cochran of MIT
• It all starts with our understanding of what the
customer will buy (“wants”)
• Wants define functional requirements (FR)—the
business objectives and “whats”—which 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.
AD II
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
Implementing
the TPS
19
Axiomatic Design II
• Using the axioms, one can develop a “production
system 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
Why
AD
AD I
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
20
Why Axiomatic Design?
• Using axiomatic design we can create a topdown 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 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
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
Implementing
the TPS
21
Toyota’s 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, Toyota’s suppliers seem to multiply
prototypes, to an apparently absurd degree
• While in most cases, CE seeks to freeze specifications quickly,
Toyota’s engineers and managers try to delay decisions and
provide suppliers with hard specifications very late in the process.
• Toyota’s development process seems to require about 50% fewer
person-years than Chrysler’s 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.
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
Back
22
Zen and the Art of Implementing the TPS
• 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 Zen/Taoism
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 Takuan’s 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 Tzu’s Art of War
• We seek the Way and study it devotedly.—Taiichi Ohno
The
End
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
More
Zen
23
Implications
You don’t 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.
The
End
*On the other hand, it couldn’t hurt
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
Zen/
TPS
24
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 Buddhism—originally from India—that 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 Musashi’s classic, Book of Five Rings
(1645 A.D.), which is widely studied in Japanese business schools, embodies a
Zen approach 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 Tzu’s Art of War, from c. 400 B.C.
More info? The introductions to Thomas Cleary’s The Japanese Art of War and
his translation of Sun Tzu’s Art of War (both from Shambhala Press), and, of
course, Robert M. Pirsig’s Zen and the Art of Motorcycle Maintenance and Lila. Back
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
25
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 survive
on its own terms, even in slow economic times,
and grow as the economy recovers
Back
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
26
A TPS Glossary
• 5Ss—five Japanese words, all beginning with an “s” sound, which
establish the cultural environment for continuous improvement
• Cycle time—for a machine or cell, time from completion of one item to
completion 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”) production
leveling. 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 an
error occurs. Alternative is “people watching machines work.” Allows
manning of cell to vary with demand. Encourages teamwork and
facilitates kaizen.
*Many thanks to Lennart Kampman of the Copenhagen Business School for his
translations and interpretations.
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
Implementing
the TPS
27
II
A TPS Glossary, II
• Just-in-time—“In 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 not imply
that 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 of sensei.
Implementing
the TPS
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
I
III
28
A TPS Glossary, III
• Kanban—(fm. Japanese for “signboard”) Primary means for
controlling 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 production—producing with a shorter delivery span, at
lower cost, with greater quality, and with more flexibility
(variety on the line; quicker introduction of new models)
• Sensei—teacher, commonly of the martial arts; used to
denote an expert with a track record of implementing the TPS
• SMED—single minute exchange of dies. Very rapid set-ups
so that heijunka sequences can be produced economically
Implementing
the TPS
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
II
IV
29
A TPS Glossary, IV
• Takt time—(fm. the German for meter or measure, as in
music) pace of customer demand. Time to produce one item
sold, 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) and jidoka. 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.
Implementing
the TPS
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
III
V
30
A TPS Glossary, V
• Total Productive Maintenance—ensuring 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 added—a term used by Toyota only in connection
with kaizen, where it is generally synonymous with
“processing” (see Ohno, p. 57)
• Visual control—management 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 in Lean Thinking, by
James P. Womack and Daniel T. Jones (New York: Simon & Schuster, 1996)
Implementing
the TPS
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
IV
31
What’s 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 and Hout,
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 and compiled their
findings in the book The 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
Toyota’s 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
Dr. C. W. Richards 1/12/99
Industrial Blitzkrieg
32