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Tips and Tools to be effective Toyota Way for Continuous Improvement Anita Rao June 2013

Continuous Improvement using the Toyota Way

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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.

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Page 1: Continuous Improvement using the Toyota Way

Tips and Tools to be effective Toyota Way for Continuous Improvement

Anita Rao

June 2013

Page 2: Continuous Improvement using the Toyota Way

Y?

By constant improvement based upon action, one can rise to a

higher level of practice and knowledge

- Fuji Cho, Toyota, 2002

Page 3: Continuous Improvement using the Toyota Way

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

Page 4: Continuous Improvement using the Toyota Way

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

Page 5: Continuous Improvement using the Toyota Way

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

Page 6: Continuous Improvement using the Toyota Way

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

Page 7: Continuous Improvement using the Toyota Way

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

Page 8: Continuous Improvement using the Toyota Way

Feedback loop in ecosystem

Partners Customers Company Processes

In Process

Feedback

Feedback from

Customers Feedback to

Partners

Source Jeffrey K. Liker & James K. Franz

Page 9: Continuous Improvement using the Toyota Way

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

Page 10: Continuous Improvement using the Toyota Way

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

Page 11: Continuous Improvement using the Toyota Way

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

Page 12: Continuous Improvement using the Toyota Way

Thank You

Twitter @anitaprao;

Blog:

http://anitapaulrao.wordpress.com/

Linkedin:

www.linkedin.com/in/anitarao/