Two sides of the · 2020. 11. 5. · Continuous Improvement Communication Mutual trust and respect between Labor and Management and long term employment stability Impossible Goals

1© 2009 TOCICO. All rights reserved.

TOCICO 2009 Conference

Two sides of the same coin



Which company is that?Which company is that?

• Excessive administrative headcount

• Avoid reducing Labor Force

• Low speed of promotion

• Homogeneous corporate management

• Accumulation of significant amount of cash

• No clear strategic focus

• One of the most admired companies in the world

• Its products are always among the best in consumers rankings

• Founded in 1937 in Japan

• Serves 170 different markets

• Number 1 in the automotive business



Key questionsKey questions

• Why it’s so difficult to emulate Toyota?

• What is Toyota’s DNA made of?

• Are the Toyota and TOC way really different?

• In which way Toyota and TOC can benefit from each other?



What is the secret of Toyota?What is the secret of Toyota?

• They are from another planet!!!!

• The Toyota Production System

• Discipline, rigor and persistance

• Toyota unique culture



What is culture?What is culture?

BEHAVIOURS

RULESAND

VALUES

BELIEFS

FACTS

POLICIES

PARADIGMS

What we can see from direct observation

What are the identified patterns

What are the basic assumptions

Schein Model



The Six paradoxes in ToyotaThe Six paradoxes in Toyota

Move graduallyMove gradually Take big leaps Take big leaps

Cultivate frugalityCultivate frugality Spending huge sumsSpending huge sums

Operate efficientlyOperate efficiently Operate redundantly Operate redundantly

Cultivate stabilityCultivate stability Paranoid mindsetParanoid mindset

Respect bureaucratic Respect bureaucratic hierarchyhierarchy

Allow freedom to dissentAllow freedom to dissent

Mantain simplified Mantain simplified communicationcommunication

Mantain complex Mantain complex communication communication networknetwork

On one handOn one hand On other handOn other hand



Key conclusionKey conclusion

Contradictions, opposites, and paradoxes within Toyota are self-generated and deliberately imposed.

Toyota strives to remain "extreme," a state of disequilibrium where radical contradictions coexist, pushing it away from the comfort zone to create healthy tension and instability within the organization. This tension becomes the catalyst for movement forward. The organization finds new solutions beyond opposing traits, sending it off on a new trajectory. This trajectory moves upward in an expanding spiral as the firm continuously pursues innovation and self-renewal in the resolution of opposites.

“ ”



The effect of compromisingThe effect of compromising

Protect & Increase Sales Control & Reduce Costs

IMPROVEPROFITS / ROI

now and in the future

Undesirable Effects- Higher level of Costs/ Investments- Lower level of Profits/ ROI - More complaints from sharehoulders- Lower level of Investiments / Cash

Undesirable Effects- More complaints from customers- Lower Sales (Qty/Price)- Higher rework costs - Lowel levels of Profits / ROI

Compromise

FOCUS

OBJECTIVE

EFFECTS

ACTIONS Focus on WIN for

customers (Effective) Focus on WIN for

sharehoulders (Efficiency)



Respect for People

Continuous Improvement

Communication

Mutual trust and respect between

Labor and Management and

long term employment

stability

Impossible Goals

Founder’s PhilosophiesUp or In

Eagerness to Experiment

Local Customization

Nerve System

RespectTeam Work

ChallengeKaizen

Genchi Genbutsu

The opposing forcesThe opposing forces



The Toyota Way 2001 The Toyota Way 2001

Respect for People


Communication


Labour and Management and


stability

RespectTeam Work

ChallengeKaizen

Genchi Genbutsu



About TOCAbout TOC

1975 1985 1990 1995 2000 2007

TOC for Production, Throughput Accounting – OPT, The Goal, The Race, The Haystack Syndrome

The Thinking Processes – Jonah Program

TOC

Evo

lutio

n ov

er la

st 3

0 ye

ars

Distribution, Marketing, Management Skills – It’s Not Luck

Project Management – Critical Chain

The TOC Holistic Approach – 8 Video Sessions

TOC & Technology– Necessary but not Sufficient

TOC Business Strategy - Viable Vision/ S&T

TOC Beliefs– The Choice



The improvement challengeThe improvement challenge

Growth

Stability/ Survival

TIME

PE

RFO

RM

AN

CE

NowPast Future

Constraint

What Next?

Pressure to Change

Pressure to Not Change

Stability / Security

Growth / Satisfaction

Be Successful/

HappyStakeholder’s

Conflict:

DECISION NEED

GOAL



TOC OverviewTOC Overview

Gro

wth

Stability

t

P



Living TOCLiving TOC

Full Life

Meaningful successes

Stamina to overcome failures

Have many opportunities

Collaborate with people

Think clearly

Overcome 4 obstacles

Overcome perception of reality

as complex

Don’t accept conflicts as given

Avoid blaming Don’t think that you know

Every situation is simple

Every conflict can be removed

People are good Every situation can be substantially

improvedWin-Win is always

possible

Gro

wth

Stability

P

t

Inherent Inherent SimplicitySimplicity HarmonyHarmony RespectRespect Inherent Inherent

PotentialPotential



TOC PrinciplesTOC Principles

Inherent Inherent SimplicitySimplicity HarmonyHarmony RespectRespect Inherent Inherent

PotentialPotential

BA

DC

CE

HB

A

F

GD

Bad Behaviour by Person

Bad Person

“Cause”

(Some) People are Bad

Belief

IF

THEN

BECAUSE

Undesirable Effect

A windmill can have 2

heights?

Bad Behaviour by Person

Person with Bad

Assumption

People are Good

IF

THEN

“Cause”Belief

Undesirable Effect

Current / Past Performance

There are MANY Constraints and MOST are Out of our Control

Within our ControlGoalGoal

CurrentCurrent10%10%

90%90%

PotentialPotential

Current / Past Performance

Out of our Control

FEW real Constraints and

MOST are Within

our Control or Influence

GoalGoal

CurrentCurrent

10%10%

90%90%

Within our Influence under new Paradigm

PotentialPotential



Two sides of the same coin Two sides of the same coin

Impossible Goals

Eagerness to experiment

Local Customization

Founder’s PhilosophiesUp or In

Nerve System

Stability

t

P

Gro

wth

EVER FLOURISHING COMPANY




Katsuaki WatanabeToyota Motor Company Former CEO

Pick a friendly fight!!!“Combining the words "friendly" and "fight" may seem like a

contradiction, but we make it work because both sides share the same goal—to produce cars that make customers happy. The first item on my list of my priorities is to make this an organization where nobody hides concerns or problems and where constructive discussion takes place routinely. Without such discussion people will tend to let problems slide with slapdash solutions that barely scratch the surface”

What is needed is just the courage to face inconsistencies and avoid running away from them just because “that’s the way it was always done” The Goal

Reality doesn’t contain contradictions The Choice

Eli Goldratt

Harmony




Inherent Inherent SimplicitySimplicityHarmonyHarmony RespectRespect Inherent Inherent

PotentialPotential

Respect for People


Communication


Labour and Management and


stability

RespectTeam Work

ChallengeKaizen

Genchi Genbutsu

PRINCIPLES



What is the next decisive competitive edge?

How to boost continuous improvement?

How to consistently deploy TOC principles, tools and processes in a massive scale?

How can Toyota and TOC benefit How can Toyota and TOC benefit from each other?from each other?



About Guilherme AlmeidaAbout Guilherme Almeida

Married with Carolina, Married with Carolina, father of Marcelo and father of Marcelo and

MarinaMarina

Things I like to do: Things I like to do: learning, working, racing learning, working, racing

and runningand running

More than 20 years More than 20 years working in the working in the

automotive industry automotive industry

Strong belief in the Strong belief in the tremendous potential of tremendous potential of

every human being every human being

e-mail: [email protected]

Site: www.vectis-solutions.com

Documents

Two sides of the · 2020. 11. 5. · Continuous Improvement Communication Mutual trust and respect between Labor and Management and long term employment stability Impossible Goals