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Applying TPS in the Philippine Context
Alden M. Sapit TOYOTA MOTORS PHILIPPINES CORP.
29 January 2016
Acacia Hotel, Alabang, Muntinlupa City
Pursuing Self-Reliance Through Kaizen Initiatives
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 3
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Outline of Presentation
2003 2008 2010 2012 2016 2018 a. ASEAN 5% 5% 5% 0% 0% 0%
b. JAPAN 30% 20% 20% 20% 20% 20%
b. KOREA 30% 30% 30% 20% 5% 5%
c. CHINA 30% 30% 30% 20% 20% 5%
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 4
Can’t survive without… Cost
Competitiveness
Increasing Cost of Company
2003 2008 2010 2012 2016 2018 a. ASEAN 5% 5% 5% 0% 0% 0%
b. JAPAN 30% 20% 20% 20% 20% 20%
b. KOREA 30% 30% 30% 20% 5% 5%
c. CHINA 30% 30% 30% 20% 20% 5%
Possible Threat
Strong Competitors
Maintain Profitability
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 5
KPI LINKAGE OVERVIEW
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 6
KPI LINKAGE IMAGE
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 7
KPI TREE
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 8
ROAD MAP
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 9
ROLL-OUT OF PLAN
From Top (Management)
To Bottom (Team Members)
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 10
ROLL-OUT OF PLAN
From Top (Management)
To Bottom (Team Members)
Direction must be understood
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 11
ROLL-OUT OF PLAN
From Top (Management)
To Bottom (Team Members)
Direction must be understood
Develop and equip Team
Members to be PROBLEM SOLVERS
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 12
Toyota Production System
Create a Problem Solving Culture
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Applying TPS in TMP
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 13
Toyota Way and Toyota Business Practice(TBP)
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 14
Problems
TMP’s thinking…
A problem is a negative word or a bad thing. In effect: • Problems are hidden
by workers • The opportunity to
improve or identify points for kaizen is hindered
Others’ thinking…
Problems are GOLDEN EGGS for Kaizen
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 15
Problems
TMP’s definition
IDEAL SITUATION * Standard; if you can set a
clear standard
CURRENT SITUATION
PROBLEM * The gap between the ideal
situation and the current situation
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 16
Problems
TMP’s thinking…
• Problems are disguised KAIZENs. We need to aggressively uncover them!
• Knowing what didn’t go well so we can make it better.
• You can’t solve a problem unless you admit it.
No one has more trouble than the person
who claims to have no trouble.
(Having NO problem is the BIGGEST problem of all)
- Taiichi Ohno
”
“ PROBLEM STRATEGY CHALLENGE KAIZEN
INITIATIVES KEY
LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 17
3 Essential Attitudes
1. Insatiable
2. Relentless
3. Abnormal but Sane
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 18
1. Insatiable
Adj. (of an appetite or desire) impossible to satisfy; “an insatiable hunger for success” • Is there a problem? • Could it be better?
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 19
2. Relentless
• Minor lang ‘yan! • Allowable error ‘yan. • This happened by chance. Mindset: Any variation, however, small it seems, is hinting at a problem.
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 20
Abnormal – having a problem is not bad • Western way – a problem is something you AVOID, something you
HIDE • Toyota way – a problem is something you SOLVE and you CREATE;
something you VISUALIZE
Relationship to Toyota Way • Respect • Continuous Improvement
Mindset: Finding problems and taking countermeasures is the only way towards continuous improvement
3. Abnormal but Sane
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 21
“Danger” (Wei)
“Opportunity” (Ji)
Crisis (in Chinese)
3. Abnormal but Sane
”
“
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 22
3. Abnormal but Sane
Insanity is doing the SAME things
and expecting DIFFERENT results.
- Albert Einstein
”
“
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 23
Problem Identified
Root Cause Analyzed
Countermeasures Developed
Resistance to Change
Countermeasures Developed
Problem Identified
Root Cause Analyzed
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 24
Resistance to Change Most organizations operate using consuming, laborious & cost ineffective methods when better methods or means for improvement are available
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 25
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 26
Resistance to Change
What do Employees Resist? Why do Employees Resist?
The Type of Change
Introduced
The Way The Change is Introduced
Change is an imposed decision, not a conscious
one
It is a move out of “Comfort Zone” or
“The Way We Do Things”
There are apprehensions regarding job security,
workload & work pay, etc. during Transition Phase
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 27
1. Consider different people 2. Work with values and beliefs 3. Understand and relate to needs and problems 4. Tailor your message to your audience
Dealing with Resistance to Change
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 28
1. Consider different people Dealing with Resistance to Change
Identify: • Starters • Wall flowers • Parking lot boys
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 29
2. Work with values and beliefs Dealing with Resistance to Change
• Assess what’s important to people with regard to the change at personal, professional and organizational levels
• Understand and relate to what people consider important
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 30
3. Understand and relate to needs and problems Dealing with Resistance to Change
• For all key players, assess “what’s in it for me?”
• Understand people’s
problems and needs from different perspectives
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 31
4. Tailor your message to your audience Dealing with Resistance to Change
• Do “homework”—get to know what’s important to individuals and groups
• Keep the message as simple as possible
• Use both informal & formal communication
• Highlight pay-offs from change • Use case studies and examples
to show benefits
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 32
Rising up to the challenge
To deal with challenges, it is important to: • Make your people feel significant and involved • Build a better working atmosphere • Create a sense of ownership, good communication
and cooperation with Team Members
Key point: Know your team members
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 33
Involving and empowering employees
• In TMP, all employees are called Team Members. They are considered the company’s most important resources.
• Team Members in Toyota are given the learning tools, methods, opportunities and knowledge to develop their mindset and skills and be good Problem Solvers.
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 34
Involving and empowering employees
• Suggestion System • QC Circle • Jishuken • Hiyari-Hatto • Stop-Call-Wait • Hoshin Kanri
Some TMP Activities and Practices
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 35
Involving and empowering employees
• All Team Members are welcome and encouraged to submit their ideas for improvement (voice out and give value to their creative ideas)
• It recognizes the valuable contributions of Team Members in the improvements they make in their respective work areas and processes
• Monetary rewards are given for their implemented suggestions
Suggestion System
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 36
Involving and empowering employees
• Small groups in TMP conduct this activity for solving problems using the basic QC principles and the QC tools
• Competitions are held twice every year to recognize outstanding QC Circle activities done and to share their good results and best practices in promoting positive and continuous improvement
QC (Quality Control) Circle
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 37
Involving and empowering employees
• Well known practice at TMP where Team Members outside their group / shop form groups to give a different but effective approach (“a fresh pair of eyes”) to do kaizen and complement the regular improvement at line level.
Jishuken Welding
Painting
Assembly Parts Fabrication
MHO
Welding Line
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 38
Involving and empowering employees
• Activity done to prevent the possibility of accidents in the workplace and enhance Team Members’ awareness of possible work hazards
• Team Members are given proper safety reminders and trainings to become safety conscious and are encouraged and involved in identifying possible areas of safety concern
Hiyari-Hatto
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 39
Involving and empowering employees
• Team members on-line have the responsibility to STOP a process when something abnormal (defective) occurs, CALL for the leader’s support and WAIT for support to arrive before proceeding
• This practice supports BUILT-IN QUALITY—stopping to fix problems to get the quality right from the first and not pass problems to the next process
Stop-Call-Wait (SCW)
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 40
Involving and empowering employees
• Team Members help identify key focus points and strategies to steer towards and achieve the Company's vision
• Enables Team Members to “see” where the group / department / division / company is going and partake in preparing the plans on how to get there (build plans and strategize as a Team)
Hoshin Kanri
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 41
Promoting the TPS culture
Provide exposure trainings and share TPS best practices to improve production and services and responsibility to deliver their best output.
• TSC-TPS Society • D-ICT Program
Kaizen development programs for dealers and suppliers
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 42
Promoting the TPS culture
• Strengthen and improve JIT level of member-companies through skills level-up and expand knowledge though lectures, workshops and Jishuken activity participation
• Take the lead in the sustainability of lean manufacturing and spearhead the promotion and establishment of Jidoka in their company in support to TMP’s vision for improvement
TSC-TPS Society Toyota Suppliers Club (TSC)
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 43
Promoting the TPS culture
• Strengthen and improve skills and knowledge of Dealer Kaizen Leaders though lectures, workshops, trainings and exposure to different Toyota principles and operations at the plant and in the office
• Develop kaizen ability and understanding as well as promote kaizen culture to improve operations at Toyota dealers
D-ICT Program Dealer Inter-Company Transferee Program
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 44
Promoting the TPS culture
Key factors to be able to accomplish milestones set and be able to sustain good performance in attaining self-reliance
• Problem solvers
Enabling your Team Members to be:
• Able to handle change
• Involved and empowered
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 45
Promoting the TPS culture
• Show strong and visible commitment
• Participate directly in performing TPS
• Give advice to and motivate middle management
Top Management
3 Success Factors All Employees Company
• Make work site to be in visualized condition
• Participate 100% in putting TPS to work
• Set clear objectives and framework to put TPS to work (e.g. skill development, leader development, etc.)
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Pursuing Self-Reliance Through Kaizen Initiatives
Applying TPS in the Philippine Context Page 46
7 Steps in Genba Management
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Applying TPS in the Philippine Context Page 47
Spirit of TPS = RESPECT HUMANITY
Everyone wants to contribute
Excess energy is put into non-value added work
Change muda into work
Rationalization ≠ Forcing Work
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Applying TPS in the Philippine Context Page 48
Respect Humanity
Kaizen spirit rises, and Kaizen progresses
Everyone can get good results, and value rises
Motivation
Joy of Creation
Spirit of TPS = RESPECT HUMANITY
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
Applying TPS in the Philippine Context Page 49
KAIZEN NEVER ENDS
Standardized Work
Cause Investigation
Problem Finding KAIZEN
Do not be satisfied with things as they already are— IMPROVE CONTINUOUSLY!
Time
Improvem
ent and D
evelopment
Shorten Maintenance Time and Raise the number of Kaizen
PROBLEM STRATEGY CHALLENGE KAIZEN INITIATIVES
KEY LESSONS
In closing,
In closing,
“Stay Lean, Stay Sane”
Applying TPS in the Philippine Context Page 52