How to implement lean - Executive overview

1Marek.Piatkowski@Rogers.com
How to Implement
Lean/TPS
Executive Overview
Thinkingwin, Win, WIN
How to Implement TPS / Lean
Executive Overview
Marek Piatkowski – February 2017
CAPABILITIES
DEVELOPMENT
Sustainable
improvement
capabilities in
all people at
all levels
PROCESS
IMPROVEMENT
Continuous,
real, practical
changes to
improve the
way the work
is done
Responsible
Leadership
LEAN
TRANSFORMATION
- Value Driven Purpose -
MANAGEMENT
SYSTEM
Basic Thinking, Acceptance, Mindset and Awareness
PDCA – PROBLEMS SOLVING – GEMBA - SCIENCE
WHAT PROBLEMS DO WE NEED TO SOLVE?

How to Implement
Lean/TPS
Executive Overview
Introduction - Marek Piatkowski
 Professional Background
 Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from
1987-1994
 TPS/Lean Transformation Consulting - since 1994
 Professional Affiliations
 TWI Network – John Shook, Founder
 Lean Enterprise Institute (LEI) – Jim Womack
 Lean Enterprise Academy (LEA) – Daniel Jones
 CCM/CAINTRA – Monterrey, Mexico
 SME, AME, ASQ, CME
 Lean Manufacturing Solutions - Toronto, Canada
http://twi-network.com

How to Implement
Lean/TPS
Executive Overview

How to Implement
Lean/TPS
Executive Overview
The Most Studied Company in the World

How to Implement
Lean/TPS
Executive Overview
Toyota
Production
System
(TPS)

How to Implement
Lean/TPS
Executive Overview
Toyota’s Philosophy - People
 The Toyota Production System (TPS) itself is based on the belief that the company
that ignores human respect will not endure
 People – a company’s greatest asset is its people. Toyota does as much as possible
to take care of the employees, recognizing first and foremost the importance of job
security
 People enjoy their work when it involves trying out their own ideas, mastering new
skills and making visible contributions
 Teamwork is a foundation of TPS – all employees are required to participate and to
follow rules and principles of TPS
 Operators who are the most knowledgeable of any manufacturing operation are
people who perform that job daily – their involvement is critical to the success of
implementation of TPS
 “Good Thinking, Good Product” – employees are expected to contribute to the
improvement of their own work.
Sakichi Toyoda
Founder of Toyota

How to Implement
Lean/TPS
Executive Overview
Stability
GOAL: Highest Quality, Lowest Cost, Shortest Lead Time
1. Stable Manufacturing Processes
2. 100% Quality Parts
Heijunka Standardized Work Kaizen
Just-in-Time Jidoka
Stopthe line
and fix
the Problem
Separate man’s
workfrom
machine’s work
Continuous
Flow
Takt Time
Pull System
The Toyota House
Toyota
Production
System
(TPS)

9
Production should take place with a
little inventory as possible,
preferably only the one component that
is to be processed or assembled next.

How to Implement
Lean/TPS
Executive Overview
Toyota Production System (TPS)
We never asked Toyota how did they build their
house of TPS?
Taiichi Ohno
Credited with realizing
the concept of the
Toyota Production
System.

How to Implement
Lean/TPS
Executive Overview
What is Lean Transformation?
Lean Transformation
of
Tools and Methodologies
Lean Transformation
of how we
Think and Manage
Lean does not work for us
Operational Stability
Continuous
Flow
Takt Time
Pull System
Stop and
fix the
Problem
Separate
man’s
work from
machine’s
work
Jidoka
The Toyota House
Just-in-Time
Operational Stability
Continuous
Flow
Takt Time
Pull System
Stop and
fix the
Problem
Separate
man’s
work from
machine’s
work
Jidoka
The Toyota House
Just-in-Time

How to Implement
Lean/TPS
Executive Overview
Chairman of Toyota Motor Corp. and former
President of Toyota Motor Manufacturing, KY
and Toyota Motor Corp.
Toyota’s Chairman
Fujio Cho
Three Keys to Lean Leadership
 Go See
 “Senior Management must spend time
on the front lines”
 Ask Why
 “Use the “Why” techinques daily.”
 Show Respect
 “Respect your people.”

How to Implement
Lean/TPS
Executive Overview
Chairman of Toyota Motor Corp. and former
President of Toyota Motor Manufacturing, KY
and Toyota Motor Corp.
Toyota’s Chairman
Fujio Cho
“Many good companies have respect for
individuals and practice Kaizen and other TPS
tools. But what is important is having all
elements together as a management system.
It must be practiced every day in a very
consistent matter – not is spurs – in a concrete
way on the shop floor.”

How to Implement
Lean/TPS
Executive Overview
Lean Transformation in Manufacturing
Life in Manufacturing
consists of solving
problems and
implementing solutions.

How to Implement
Lean/TPS
Executive Overview
Toyota’s Philosophy – Manager’s Role
 In a true TPS environment decision making process should be made at the lowest
possible level of the organization.
 Simple, effective solutions are the most effective
 A manager’s or supervisor’s role consists of leading problem
solving activities in a multi-skilled, cross-functional team
environment
 Managers role is to make sure that for everything that we do there is a well defined
standard process
 Continuous Improvement (Kaizen) activities are management responsibilities.

How to Implement
Lean/TPS
Executive Overview
Two Types of Problems
Sub-standard performance,
abnormal situation
New Standard
New Challenge
1. Daily problems:
deviation from normality
breakdown
quick fixes
2. Long term improvements:
new company objectives
new expectations
looking for a better long term solution

How to Implement
Lean/TPS
Executive Overview
CAPABILITIES
DEVELOPMENT
Sustainable
improvement
capabilities in
all people at
all levels
PROCESS
IMPROVEMENT
Continuous,
real, practical
changes to
improve the
way the work
is done
Responsible
Leadership
MANAGEMENT
SYSTEM
LEAN
TRANSFORMATION
2016

How to Implement
Lean/TPS
Executive Overview
What is a Problem ?
 A problem is defined as any variation (abnormality) between the actual situation
and the standard (Caused Gap) or desired situation (Created Gap)
 Problem solving activity is an effort to reduce or eliminate such a variation
 All problems must be defined in terms of numbers or data
 Key Performance Indicators - KPIs
it is not a problem if you cannot define it as a number
“In God we Trust, everyone
else bring data”
Dr. E. Deming
SAFETY QUALITY DELIVERY PRODUCTIVITY COST PEOPLE

How to Implement
Lean/TPS
Executive Overview
?
I know Lean
Engineering driven
Hobby driven
Knowledge Driven
“So what ?“
Kanban
Leveled
schedule
Supermarket
SMED
PullTPMHeijunka
Jidoka
VSM
Lean Transformation

How to Implement
Lean/TPS
Executive Overview
?
I know Lean
Engineering driven
Hobby driven
Knowledge Driven
“So what ?“
Kanban
Leveled
schedule
Supermarket
SMED
PullTPMHeijunka
Jidoka
VSM
Business NEEDS driven
1. USE KPIs to understand your Current
Status
2. Set goals and objectives
3. Start solving problems
4. Check progress
and measure
results
B
A
True North
Lean Transformation

How to Implement
Lean/TPS
Executive Overview
KPI
KPI
100%
Target – Key Performance Indicators (KPIs)

How to Implement
Lean/TPS
Executive Overview
Levels of Support
 Level I – Meeting Customer Requirements
 The company/ supplier does not meet Customer’s expectations
 Main focus – root cause analysis and improvement of Quality and Delivery KPIs
 Level II – Creating Operational Stability
 The company/supplier meets minimum Customer requirements
 Processes are not stable and predictable
 Root Cause analysis of all six KPIs – Safety, Quality, Delivery, Performance, Cost and
People
 Level III – Process Improvements
 The company/supplier meets minimum Customer requirements
 Process are stable and predictable
 KKKKKK – root cause analysis and process Kaizen of all six KPIs
1
2
3

K.P.I.
Customer
Safety ___
Quality ___
Delivery ___
Performance ___
Cost ___
People ___
Scorecard or or21 3
1 - Does not have (process/system) 2 - Has it, but does not use effectively 3 - Has it and uses it.
K.P.I.
Supplier
Safety ___
Quality ___
Delivery ___
Performance ___
Cost ___
People ___
Scorecard or or21 3
Assessment
Survey Tool
Quality
Delivery
Compare and
evaluate
Assess and
Evaluate
Performance
Tracking
Prod. Weeks
OTD-%
C/M
Today
14 15 16 17 18 19 20 21 22
Prod. Weeks
PPM
C/M
Today
Clarify the Problem
Initial Problem Perception
(Large, vague, complicated problem)
The "Real" Problem
Locate Area /
Point of Cause
PoC
Direct Cause
Why ?
Cause
Cause
Cause
Cause
Countermeasure
Root Cause
Why ?
Why ?
Why ?
Why ?
Cause
Investigation
Grasp the
Situation
5 W hy ?
Investigation of
Root Cause
Basic Cause & Effect
Investigation
Problem ID
Root Cause Analysis
Support Methodology – Level I
Current Condition: The Company does NOT meet Customer expectations - Quality and Delivery
1
2

K.P.I.
Company
Safety ___
Quality ___
Delivery ___
Performance ___
Cost ___
People ___
Scorecard or or21 3
Assessment
Survey Tool
Safety
Quality
Delivery
Performance
Cost
People
Assess and
Evaluate
Performance
Tracking
Prod. Weeks
OTD-%
C/M
Today
14 15 16 17 18 19 20 21 22
Prod. Weeks
PPM
C/M
Today
Clarify the Problem
The "Real" Problem
Locate Area /
Point of Cause
PoC
Direct Cause
Why ?
Cause
Cause
Cause
Cause
Countermeasure
Root Cause
Why ?
Why ?
Why ?
Why ?
Cause
Investigation
Grasp the
Situation
5 W hy ?
Investigation of
Root Cause
Investigation
Problem ID
Root Cause Analysis
2
3
2
3
2
2
Support Methodology – Level II
Current Condition: Processes are not stable and predictable

STEP 1
STEP 2
STEP 3
STEP 4
STEP 5
Identifying Business
Needs
 Review and Assess Customer
KPIs – Quality and Delivery
 Which Internal KPIs need to be
addressed:
- Safety - Performance
- Quality - Cost
- Delivery - People
 Opportunities Analysis
 Target Conditions and
Milestones
Building the Foundation
Process Improvements
Cycle Time and Lead Time
Reductions
Sustain and Improve
 Creating Operational Stability –
Predictable Performance
 Root cause analysis of problems
 Visual Controls
 Roles and Responsibilities
 Heijunka – leveled production,
reduction of variation
 Standardized Work
 Training and Development of
Internal Change Agents
 Building TPS Pillars:
• JIT – creating continuous
flow of production
• Jidoka – stop the Line, fix
the problem
 Pull System - Information Flow
and Material Flow
 SMED – Set-up Reduction
 Information Centers
 SFM – Shop Floor
Management
 Team Leader based
Organization
 Takt Time - Operational
Transformation
 Layout improvements
 Manufacturing Work Cells
 TPM – Equipment
Maintenance
 Minimum lot sizes – single
piece flow
 Reduction of Inventory buffers
 Employee Engagement –
Quality Circles & Suggestion
Program
 Closing performance gaps
 Partnership with Suppliers
 Removing obstacles to the
flow of work
 Aligning decision-making
process to respond quickly to
changes and problems
 Flexible workforce -
multiskilled operator
 Self-directed Work Teams
 How to manage in a Lean
Environment
 Kaizen, Kaizen, Kaizen
Support Methodology – Level III
Step-by-Step Implementation of Lean Manufacturing
CAPABILITIES
DEVELOPMENT
Sustainable
improvement
capabilities in
all people at
all levels
PROCESS
IMPROVEMENT
Continuous,
real, practical
changes to
improve the
way the work
is done
Responsible
Leadership
LEAN
TRANSFORMATION
MANAGEMENT
SYSTEM

How to Implement
Lean/TPS
Executive Overview
Steven Spear
H. Kent Bowen
October 1999

How to Implement
Lean/TPS
Executive Overview
Decoding the DNA of TPS
 Four-year study of the Toyota Production System
 Inner workings of more than 40 plants in the United States, Europe, and Japan,
some operating according to the system, some not
 Studied both process and discrete manufacturers whose products ranged from
prefabricated housing, auto parts and final auto assembly, cell phones, and
computer printers to injection-molded plastics and aluminum extrusions
 Studied not only routine production work but also service functions like equipment
maintenance, workers’ training and supervision, logistics and materials handling,
and process design and redesign

How to Implement
Lean/TPS
Executive Overview
How to Improve
 We found that the key to understand that the Toyota Production System creates a
community of scientists.
 Whenever Toyota defines a specification, it is establishing a set of hypotheses that
can then be tested. In other words, it is following the scientific method.
 To make any changes, Toyota uses a rigorous problem-solving process that requires
a detailed assessment of the current state of affairs and a plan to improvement
that is, in effect, an experimental test of the proposed changes.
 With anything less than such a scientific rigor, change at Toyota would amount to
little more than random trial and error – a blindfolded walk through life.
Who, What, Where,
When, Why and How
Clarify the Problem
The "Real" Problem
Locate Area /
Point of Cause
PoC
Direct Cause
Why ?
Cause
Cause
Cause
Cause
Countermeasure
Root Cause
Why ?
Why ?
Why ?
Why ?
Cause
Investigation
Grasp the
Situation
5 Why ?
Investigation of
Root Cause
Investigation
Grasp the
Situation
Cause
Investigation
Basic Cause &
Effect Investigation
Ask Why 5 times?
Investigation of
Root Cause

How to Implement
Lean/TPS
Executive Overview
How to Improve
 Identifying problems is just a first step. For people to consistently make effective
changes, they must know how to change and who is responsible for making the
changes.
 Toyota explicitly teaches people how to improve, not expecting them to learn strictly
from personal experience. That’s where the rule for improvement comes in.
 Any improvement to production activities, to connection between worker and
machines, or the pathways must be made in accordance with the scientific method,
under the guidance of a teacher, and the lowest possible organizational level.
 To make changes, people are expected to present the explicit logic of the hypothesis.
 Frontline workers make the improvements to their own jobs, and their supervisors
provide direction and assistance as teachers.

How to Implement
Lean/TPS
Executive Overview
“Secret” of Toyota’s Success
 To understand Toyota’s success, you have to unravel the paradox – you have to see
that the rigid specification is the very thing that makes the flexibility and creativity
possible.
 The unspoken knowledge that underlies the Toyota Production System can be
captured in four basic rules
 These rules guide the design, operation, and improvement of every activity,
connection, and pathway for every product and service

How to Implement
Lean/TPS
Executive Overview
TPS System Rules
Rule 2:
Every customer-supplier
connection must be direct, and
there must be a unmistakable yes-
or-no way to send requests and
receive responses
Rule 1:
All work shall be highly specified
(standardized) as to content,
sequence, timing and outcome
Rule 3:
The pathway for every product and
service must be simple and direct –
flow
Rule 4:
Any improvement must be made in
accordance with the scientific
method, under the guidance of a
teacher, at the lowest possible level
in the organization
1999

How to Implement
Lean/TPS
Executive Overview
Using scientific
methods to
Solve Problems
Use Scientific Problem Solving
to dig beyond symptoms of
common causes
Does your company
use Lean Tools and
Methodologies to
Solve Problems?
Addressing this is more effective than jumping to solutions and launching hundreds of project

How to Implement
Lean/TPS
Executive Overview
Knowledge and Skills
To know, to understand the meaning
correctly and to be able to teach
Lean Knowledge
Kanban, Pull system, Jidoka,
Supermarket, 5S, TPM, SMED,
JIT, Kaizen, STW, SOS, WCT,
FTQ, PPM, Takt Time, etc …
I know this!
Lean Skills
Be able to solve problems and advance
the organization by using Lean
Knowledge properly
Use Lean knowledge to motivate
people, achieve results, reduce
costs, improve the operation and
address business needs
Can you Play a
Violin?

How to Implement
Lean/TPS
Executive Overview
Solving Problems

How to Implement
Lean/TPS
Executive Overview

How to Implement
Lean/TPS
Executive Overview
Implementation of Lean – The Six Steps Approach
Step 1 – Sort out as many quality problems as you can, as well as downtime or other
instability problems. Make sure that you ship 100% on time to your Customers. Get
Engineers to worry seriously about internal scrap.
Step 2 – Make sure the flow of parts through the system is as continuous as possible,
which involves setting up the U-calls and making market locations, avoiding variations
in the operator’s work cycle.
Step 3 – Introduce Standardized Work and make sure the pace of work stabilizes
through the various processes
Step 4 – Start pulling, so that no parts or material move forward until they are called
for. Start looking at production schedule and eventually replace production weekly or
daily orders with some type of frequent signal, like Kanban card.
Step 5 – Even out the production flow by reducing batch sizes, increasing the rhythm
of internal deliveries, and leveling your internal demand.
Step 6 – And when you accomplish all that and everything works perfectly you pull
resources out and start again.

How to Implement
Lean/TPS
Executive Overview
Changing the World. One Transformation at a time
This presentation is an intellectual property of W3 Group Canada Inc.
No parts of this document can be copied or reproduced
without written permission from:
Marek Piatkowski
W3 Group Canada Inc.
iPhone: 416-235-2631
Cell: 248-207-0416
Marek.Piatkowski@rogers.com
http://twi-network.com

How to Implement
Lean/TPS
Executive Overview
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How to implement lean - Executive overview