Expanded presentation pulling together concepts from S. Spear, Pascal Dennis, and Toyota

1. The Fallen Temple
Nick Ruhmann
BD Medical – Diabetes Care

2. Agenda
Introductions
Error Prone vs. High Performance Systems
Capabilities of the Operational Outstanding
True North
The Four Levels of Process Design
Team Assignments – Gemba Kaizen

3. Introduction
This training is based on work developed by Dr. Steven Spear,
formerly of the Harvard Business School and in association and
collaboration with TOYOTA and the BAMA Education
Committee.
Dr. Steven Spear wrote his doctoral thesis based on working at TSSC for Mr.
Hajime Ohba and data gathering at over 30 manufacturing sites in the USA
and Japan. His experiences and insights were summarized in his HBR
articles “Decoding the DNA of Toyota Production System”, “Learning to Lead
at Toyota” and “The Essence of Just in Time, Productivity, Planning, and
Control”.
Author: Chasing the Rabbit, (2009)
The High-Velocity Edge: How Market Leaders Leverage Operational
3
Excellence to Beat the Competition (2010)

4. Toyota’s Performance vs. Big 3
Profits are greater than all major competitors combined (20062009)
Passed Daimler Chrysler as the No.3 automaker and seller of
automobiles in North America.
Surpassed Ford as No.2 and later GM as No.1 automaker in
worldwide sales
Toyota opened up two new plants in North America, San
Antonio, TX and Cambridge, ON, and announced a third new plant
for Blue Springs, MS.
GM, Ford, and Chrysler continue to close and idle plants in North
America and in Dec 2008 requested government support in order to
survive the economic downturn.

5. Why has Toyota been so successful?
Why has Toyota been successful in its application of
TPS?
Why have others failed despite Toyota’s openness to
share its practices?
Is there a secret ingredient to the Toyota Production
System that Toyota hasn’t shared with others?
Is their success due to cultural differences between
Japanese and others?

6. Why do others fail?
Failure Mode 1:
• Copy Lean tools only without making work self-diagnostic
Failure Mode 2:
• Workaround problems even when they are recognized
Failure Mode 3:
• Don’t share systemically what has been learned locally
Failure Mode 4:
• Don’t develop the capabilities of others to design
work, improve work, and institutionalize new knowledge
Failure modes identified in an actual internal problem solving
report (A3) by Toyota Production System Support Center

7. The Toyota Temple

8. The Toyota Temple
Most Western Organizations
have concentrated their efforts
for TPS deployment on this pillar
The Continuous Flow of Material
and Information is essential to
TPS.
Flow is established using
traditional LEAN TOOLS:
•Continuous (1 piece) flow
•Takt Time
•Kanban Pull System
•Heijunka Scheduling
FLOW: A LOT of hard work to
establish; required discipline to
sustain.

9. The Toyota Temple
Leadership Requirements
Requires the ENTIRE
organization be
transformed into
problem solving
experts
Engages the expertise
of a few KEY people

10. The Fallen Temple
Google results for info on Just in Time vs. Jidoka
A difference of
almost 50,000 to 1!
•Just in Time
• Continuous Flow
•Takt Time
•Pull System
Leveling
Standard Work
Kaizen

11. Since people make things, work must begin
with developing people...
- Eiji Toyoda

12. TPS : The Shop Floor Stuff

Being able to support the Jidoka pillar
requires people with the right capabilities at
the right place at the right time.

13. TPS : The Shop Floor Stuff

14. Capability 1 : Design work to see
problems

15. Capability 2 : Swarming problems when
they occur

16. Capability 3 : Sharing knowledge where
it is created

17. Capability 4 : Leaders train, coach, assist,
& teach

18. When former Toyota Motor Manufacturing
North American president Atushi (Art) Niimi
was asked about his greatest challenge when
trying to teach the Toyota Way to his
American managers, he responded:
“They want to be managers, not teachers.”

19. Capabilities of the Operationally
Outstanding

20. Reasons for Toyota’s Success
All work is highly specified as to
content, sequence, timing, and outcome.
Every customer/supplier connection must be direct,
and there must be an unambiguous and specified
way to send requests and receive responses
The pathway for every product and service must be
specified, simple, and direct
Any improvement must be made in accordance with
the scientific method, under guidance of a teacher, at
the lowest possible level within the organization.
20

21. Characteristics of a TPS Organization
All work is designed so best practices are captured and
problems are evident immediately
Problems are immediately addressed, both to contain
their effects from propagating, and to trigger problem
solving
Knowledge generated locally becomes systemic through
shared problem solving
The most senior management has to own the capability
development process.

22. The FOUR Levels of Process Design
1.
2.
Defining objectives/outputs for the system
Creating pathways by assigning
responsibilities
3.
Connecting adjacent nodes on the pathway
4.
Designing individual work activities

23. Capabilities of the Operationally
Outstanding

24. Capabilities of the Operationally
Outstanding Summarized

25. C1 – Why is Proper Categorization of
(S,P,C,A) Essential?

26. C2 – Problem Solving

27. True North (Ideal State)
On Demand, Immediate
1.
–
–
Pull
0 Lead Time
1 by 1
2.
–
–
Batch Size of 1
0 Changeover Time
DEFECT FREE
NO WASTE, LOWEST COST
3.
4.
1.
2.
3.
4.
5.
6.
7.
Over Production
Inventory
Defects, rework
Motion (Non Value Added)
Waiting
Conveyance, material handling
Processing
SAFE
5.
–
–
–
Physical
Professional (job stability, security)
Emotional (fear, threats)
When making a change in
direction, check your
compass.
Are you heading True
North?

28. C3 – Share Knowledge

29. C4 – Leaders are Teachers

30. C4 Leader Skills and Characteristics

31. Team Assignment – Gemba Kaizen

Overview


Time:


Go and See to understand TPS 4 levels of Process Design: System
(output), Pathway (responsibility), Connection (handoff), Activity (method).
1 Hrs Including Debriefs
Details


Observation Exercise – As individuals select a location within our host to observe
activities. Remain at this location to observe 4 levels of process
design, abnormalities, and work arounds. (Silent Observation, No Talking!)
Use “Countermeasure Worksheet” and document Kaizen ideas and suggest rapid
experiments for improvement



Return to Room
Output:



For each idea, the Countermeasure form must be completed up to
“expected outcome” PRIOR TO any experimentation
(changes), otherwise you’re tampering!
Each Team will discuss which of the 4 Levels of Process Design they
observed, and if the problem was lack of pre-specification, abnormality to prespecification, or a gap to the ideal state.
Discuss your proposed Kaizen or improvement, how you would test your
hypothesis and what the expected result would be.
I will ask Claudia to share our results with our host

32. Focused Problem Countermeasure Sheet

33. About the Speaker


Nick Ruhmann is a Lean Sensei and Six Sigma Master Black Belt for BD
Medical, Diabetes Care. Prior to entering the medical device industry in
January 2010, he spent the previous 12 years working for a major Tier I
supplier to various OEM’s including Toyota.
Nick’s career has included functional and managerial positions across
R&D, Product Engineering, Operations, Process Engineering, Quality, and
Global Supply chain
http://www.linkedin.com/in/nruhmann78