A path is an arrangement of actions to achieve something.
The past is the past and what is important is the current condition and what we will do next to go beyond where we are today. 1
The secret of the Toyota Production System (TPS) and the resulting culture is found in the actions, through trial and error, of Ohno and others over many years in implementation of the TPS. Remember, Ohno wasn’t on a mission to create a system or a certain culture. He was on a mission to catch up with American auto manufacturers. The system and culture have been the result.
A lean culture has never resulted, and never will, from the haphazard application of tools. In tool-oriented lean initiatives, “having all the elements together as a system” 2 does not exist. Since not all the elements are present, they’re not “practiced every day in a very consistent manner” 3 but instead, are implemented “in spurts.” 4
In the previous pages, the important concepts and methods that Taiichi Ohno implemented and the things that were emphasized to me during my time at Toyota have been laid out. Coincidentally, these elements are inclusive of the items in the original “Toyota House.” Important additional concepts that are integral parts of the template and the culture have been added. For example, quick changeovers, accomplished with Single-Minute Exchange of Dies (SMED), are a crucial element that aids and enables the successful implementation of heijunka. And heijunka is a requirement for a just-in-time (JIT) production system. The result of the implementation of the “elements together as a system,” 5 the Toyota Template, is that the goal of the TPS, “the highest quality, at the lowest cost, in the shortest lead time,” is continuously improved.
When the steps taken in building the most efficient and admired company in the world are understood, there exists a plan, the Toyota Template, that can be used as a guide in pursuit of efficiency. The template demonstrates an order of events that will result in the development of a lean culture along the way. This is how it happened at Toyota. That being said, this is not a cookie cutter approach to lean.
The TPS elements are solid and are not in dispute. The Toyota Template contains the important elements of the TPS to aid in a smoother transition away from traditional manufacturing. However, the template is in no way representative of the entire TPS.
WHEN SHOULD THE TEMPLATE BE IMPLEMENTED?
Here’s what Ohno said about when …
Kaizen should be done when times are good or when the company is profitable, since your efforts to streamline and make improvements when the company is poor are limited to reduction in staff. Even if you try to go lean and cut out the fat to improve business performance, when your business is in a very difficult position financially there is no fat to be cut. If you are cutting out muscle, which you need, then you cannot say that your efforts to become lean are succeeding. The most important thing about doing kaizen is to do kaizen when times are good, the economy is strong, and the company is profitable. 6
The right time is when the company is profitable and when resources can be dedicated. There are no preconditions to becoming efficient.
IN WHAT ORDER SHOULD THE TEMPLATE BE IMPLEMENTED?
Ultimately, the goal is to arrive at a JIT system. The first consideration in the implementation order of the template is the current condition. This could influence the order of the elements. Some systems may already be in place and adequate. For example, a plant may have already minimized set-up times or have a well-functioning Total Productive Maintenance (TPM) program. The key is having as many of the concepts in place as possible prior to implementation of the pattern (flow, pull, and heijunka). This is because each of these concepts will greatly aid in the transition from a push to a pull method.
In terms of the order, context is important. Ohno developed most of these concepts and systems as he went along over many years, with the goal throughout to eliminate waste. As they say, hindsight is 20/20.
As I said, the gamechanger for Toyota was the implementation of the pattern of the template, consisting of continuous flow, pull, and heijunka. Continuous flow, which was done early, followed by pull many years later, and then heijunka were the keys that enabled Toyota to become a JIT manufacturer. Without these key elements, Toyota would not have realized the efficiency they enjoy today, because they would not have a JIT production system. For companies to become JIT producers, they must ultimately strive for the pattern.
Though the elements are intertwined and are all important, the Toyota Template arranges them in a logical implementation sequence, given what is now known. The sequence is determined, in part, by the sequence of events implemented by Taiichi Ohno and, in part, with the knowledge that the implementation of some elements before others makes sense. In addition to the sequence, some elements can be accomplished simultaneously. Implementing elements at the same time, if done properly, will accelerate the path toward JIT.
The two prerequisites necessary before moving forward with the Hoshin plan are
1.Will/skill
2.Plant first commitment.
Leadership must be committed, and the skill set must be present. The focus is on the plant.
After the prerequisites are met, the Hoshin plan should be put in place.
3.Hoshin Kanri: Develop a plan for implementation based on the template and the current condition.
4.Waste elimination, problem-solving, jidoka, SMED, TPM/machine back-up, 5S.
These elements can be accomplished simultaneously. They involve some classroom learning but mostly are taught, learned, and practiced at the worksite. Each should be driven using 8-Step problem-solving with an accompanying A3 that is reviewed regularly. Each of these will involve hands-on implementation over an extended period. Keep at it until they’re routinized in daily work. Many results of the implementation will be reflected in Key Performance Indicators going forward.
5.Continuous flow
This element is important for reasons cited in Chapter 9. Continuous flow may already partially exist in the current condition. One-piece flow production areas are the most important to consider. There are many advantages to continuous flow in these areas, and this should be the goal. There’s one-time cost associated with rearranging the floor, and there’s potentially daily cost associated with a decision not to rearrange.
6.Pull
Pull involves two major components:
a.Batch build processes: The next step toward a JIT system in the plant is to install a pull system in batch build processes. The reduction in changeover times, done previously, was in preparation to implement the linkage between batch building and one-piece flow. This is accomplished with the Triangle Kanban. The kanban will eliminate schedules. Pulling in batch build processes is a significant change. Visually, it’s much easier to manage for supervision and easier for employees to understand. This is because the kanban institutes a standard production method that schedules production based on actual use and a build order based on first-in, first-out (FIFO). Implementing the Triangle should be carefully planned, coordinated, and monitored because of the change from schedules (push) to kanban (pull). This is done before pulling in the one-piece flow processes, because it will decrease shortages when one-piece flow is implemented.
b.One-piece flow processes: Establish a sequence for orders/jobs to be pulled through the plant. If there are reliable data suggesting a way to level load now, try it. Pull orders through the plant in the sequence. This establishes a pace for production. As this is done, bottleneck, staffing, machine, and material issues will become visible. It’s likely that many previous problems will no longer exist. The focus changes from schedule attainment to buffers, and the sense of urgency will increase. At this point, problems will pop up that have always existed but weren’t visible or urgent before. With good problem-solving skills, some of these issues can be anticipated and planned for as part of the A3.
7.Standard work: As stated earlier (Chapter 7), standard work is implemented after, or during, the implementation of the pull system. This is because there already exists a certain way that products were made in the prior push system. In a pull system, the standard work changes, because a pace based on TAKT time is established. Though the work content to make a particular item may not change, where the steps are done could change. If time is spent writing standard work prior to pull, much of it will likely need to be rewritten.
The flow chart in Figure 11.1 illustrates this sequence. 7
FIGURE 11.1
The Toyota Template Flow Chart.
As stated at the beginning of the chapter, the intention of the Toyota Template is to understand the critically important elements of the TPS, analyze the sequence of implementation as the system developed, and put these elements in a logical order of implementation based on current knowledge. It will guide any organization to focus on “the current condition and what [they] will do next to go beyond where [they] are today”7 to achieve greater productivity and a problem-solving culture. It has worked well for Toyota in many diverse cultures over many years, and it will work for you.
1. Ohno, Taiichi. 2013. Taiichi Ohno’s Workplace Management: Special 100th Birthday Edition, p. xi. New York, NY: McGraw-Hill.
2. Liker, Jeffrey K. 2004. The Toyota Way, 14 Management Principles From The World’s Greatest Manufacturer, p. 27. New York, NY: McGraw-Hill.
3. Liker, Jeffrey K. 2004. The Toyota Way, 14 Management Principles From The World’s Greatest Manufacturer, p. 27. New York, NY: McGraw-Hill.
4. Liker, Jeffrey K. 2004. The Toyota Way, 14 Management Principles From The World’s Greatest Manufacturer, p. 27. New York, NY: McGraw-Hill.
5. Liker, Jeffrey K. 2004. The Toyota Way, 14 Management Principles From The World’s Greatest Manufacturer, p. 27. New York, NY: McGraw-Hill.
6. Ohno, Taiichi. 2013. Taiichi Ohno’s Workplace Management: Special 100th Birthday Edition, p. 52. New York, NY: McGraw-Hill.
7. 7.Ohno, Taiichi. 2013. Taiichi Ohno’s Workplace Management: Special 100th Birthday Edition, p. xi. New York, NY: McGraw-Hill.