Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558 1
21 - 22 เมษายน 2558 โรงแรม โกลเดน้ ทวิลปิ ซอฟเฟอรนี และ บรษิทั นวพลาสตกิอตุสาหกรรม (สระบรุ)ี จ ากดั
กฤชชยั อนรรฆมณี
Lean and Productivity Consultant
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Self Introduction
• ’91 - ’99 : Toyota Motor Thailand Production Control Dept.
• ‘99 – ’04 : Thailand Productivity Institute Training Div.
• ‘04 – ’10 : Toyota Motor Thailand Sales Planning Dept.
• ‘10 – ‘14 : Asian Productivity Org., Tokyo Industry Dept.
• ‘14 – Now : Lean and Productivity Consultant
2
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
PRESENTATION OUTLINE
1.) Lean Concepts Review
2.) Lean Culture and Necessity
3.) Toyota Way Concepts and Practices
3
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Lean Concepts Review
4
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Lean means ?
Adjective
• Thin in a healthy and attractive way
• Lean meat does not have much fat
on it
==> Imply there is no wastes !!!
Verb
• To bend body in a
particular direction • To put something in a
sloping position
Lean Definition
< From Dictionary >
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Sales Increasing
Profit
Cost
Profit
Sales = Cost + Profit
Cost-based price
Cost Reduction
Sales Profit
Profit
Profit = Sales - Cost
Market-based price
Cost
Reduction
!!!
Profit Increasing Alternatives
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
How were resources utilized?
Necessary
Unnecessary
Improvement by Eliminating or
Reducing all wastes
Resources
Idle / Delay
Non Value Added Job Job
Net Job
WASTE ==>
Any activities that can not create value of products
or services for customers
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
3 “MU” Elimination
1.Overproduction 2.Unnecessary stock 3.Transportation 4.Unnecessary motion 5.Uneffective Process 6.Idle / Delay of resources 7.Defects / Rework
A. Muri (Overburden) - of Man & Machine
B. Mura (Uneveness, Variation, Fluctuation)
C. Muda (Waste)
7 Wastes of Toyota
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Toyota Production System Structure
(1) Just In Time Produce only needed Product
in needed Quantity & when needed Time
• Heijunka / Leveled Production
• Pull System - Use Kanban as
a tool
• Continuous-Flow Processing
• Takt Time & Cycle Time
(2) Jidoka
(Automation with human touch)
Principle of stopping work
immediately whenever a problem
occurs to prevent producing &
delivering defective items
[Built-in Quality by Human &
Machine]
• Visualization
• Andon
• Poka-yoke
Standardized Work
& Kaizen
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Leveled Production/Mixed Production
1. Leveled Production Volume
Maximum Minimum Leveling
Constant Volume ( Reduce variation) Variation
Time
Volume
2. Leveled Production Sequence
Product Sequence
A B C X X X
Product Sequence
A B C X X X
Leveling
Sequence
( SMALL LOT )
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
It’s too much!!!
I must achieve
Target !!!
Production
Store
Push System (Conventional system)
Produce goods regardless of the
following process requirement.
BOM. (Bill Of Material)
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
KANBAN
Customer
This is your order.
There’s order 4 pcs.
Store
Pull System
Following process pull goods, then process
produce to replenish that.
Production • Apply from Supermarket concept • Kanban is a tool for Pull system
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Continuous-Flow Processing is production which is
operated and moved without stopping or waiting as
stock in process
==> To shorten Production Lead Time
Process
1
Process
2
Process
3
Process
4
Continuous-Flow Processing
Raw Material
Products
Work in Process Minimize
WIP
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Long
Set up
Time Defects
Poor
Maintenance
Poor
Planning
System
Inefficient Production
• Plant Layout
• Process Design
Lack of
Skill
Poor
Line
Balancing
Inventory hide problems
Inventory & Production Line Problems
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
= Working Time Required volume
Takt time
= 480 Min. / Day
240 pcs. / Day
Takt Time = 2 Min./pc.
Takt time
EX. Working time is 8 Hrs/Day Need 240 pcs. / Day
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Assy 1 1 2 3 4 5 6 Warn
Sto
p Yellow Light
“Warning”
Red Light
“Line stop”
Process Number
ANDON
No
rma
l
1 2 3 4 5 6
ANDON Concept
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
• Predict mistake (human and machine) which
may happen and design process to prevent it.
• Whenever defects happen, operators must be
acknowledged suddenly.
• System to stop delivering defects to next
process.
Poka-Yoke (Mistake Proof)
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Other Supporting Subjects
• 5S (Seiri Seiton Seiso Seketsu Shitsuke)
• Skill Development / Multiskilled Workers
• Set up Time Reduction
• Machine Maintenance (TPM Activity)
• U - Shape Layout / Cellular/ Work cell concept
• Supplier / Supply Chain Development
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558 19
1. Specify what creates value
from the customers perspective
2. Identify all steps across the
whole value stream
3. Make those actions that
create value flow
4. Only make what is pulled by
the customer just-in-time
5. Strive for perfection by
continually removing
successive layers of waste
The Five Principles of Lean Thinking
Source :
Lean Thinking
Womack and Jones
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Lean Culture and Necessity
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Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Necessity of Lean Culture
• Is “LEAN” the new thing ?
21
219 million results
Published in 1991
• WHY case study of “lean”
always be from Toyota?
• WHY other organization
can not apply “lean” easily?
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
The Most Important Things are Invisible to the Eyes
22
Edgar Schein's organizational culture model
Underlying
Assumption
Norms and
Value
Artifacts
& Behavior
What we SEE Employee dress, Organization Chart,
Physical arrangement, Working Layout,
Logo, Mission statements, Ceremonies and
Rituals
What they SAY The reason why things are the way they are.
Official philosophies, Public statements
Unconscious, taken-for-granted beliefs
about the organizations and its
work/purpose
What they deeply BELIEVE
and ACT on
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Principles
at Toyota
• Always be faithful to your duties, thereby contributing to the company and
to the overall good.
• Always be studious and creative, striving to stay ahead of the times.
• Always be practical and avoid frivolousness.
• Always strive to build a homelike atmosphere at work .. warm and friendly.
• Always have respect for spiritual matters, and remember to be grateful at
all times.
23
Sakichi Toyoda,
Founder of Toyota
Five Main Principles of Toyoda, Guiding Toyota’s Initiatives
Source : Toyota Website
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Origin of Toyota Culture
• 1924 Sakichi Toyoda invented Model G Automatic Loom.
It’s patent was later sold to a British company.
• 1937 Toyota Motor Co., Ltd. was established
by Kiichiro Toyoda (Sakichi’s sun).
• 1946 Economics problem, after WW-II finished
• 1949 Great dispute between company and
Employee
- Plant shut down 2 months
- 1600 workers (25%) laid off, Salary cut
- Management resigned
• 1953 Corporate slogan "Good Thinking,
Good Products" was established.
• 1962 Joint Declaration of Labor
and Management was signed.
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Kiichiro Toyoda
Grandfather of
current president
Signing ceremony
Source : http://www.toyota-global.com/company/history_of_toyota/ and others
Good Thinking,
Good Products
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558 25
Pictures from Toyota commemorative Museum of Industry and Technology, Nagoya, Japan
First Type G Automatic Loom,
invented in 1924 by Sakichi Toyoda Group Running
of Toyoda Automatic Loom, Type G
• A device to detect broken threads was invented.
• Automatic looms that stopped to prevent defective cloth.
• One operator who can control several machines
Evolution of Jidoka concept
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
The Toyota Way :
14 Management Principles (by Jeffrey K. Liker )
Section I: Long-Term PHILOSOPHY
1.) Base your management decisions
on a long-term philosophy
26
Published in 2004
4. PROBLEM
SOLVING
3. PEOPLE AND
PARTNERS
2. PROCESS
1. PHILOSOPHY
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Process & Result Relationship
27
Bad Good
Good
Bad
Process
Results
Which one do you prefer between and ?
A?
B?
A? B?
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
14 Management Principles (Cont. 2/5)
28
Sect. II: The Right PROCESS Will
Produce the Right Results
2.) Create a continuous process “flow” to bring
problems to the surface.
3.) Use “pull” systems to avoid overproduction.
4.) Level out the workload (heijunka).
(Work like the tortoise, not the hare)
5.) Build a culture of stopping to
fix problems, to get quality right the first time.
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
14 Management Principles (Cont. 3/5)
Sect. II: The Right PROCESS Will
Produce the Right Results (cont.)
6.) Standardized tasks and processes are the
foundation for continuous improvement and
employee empowerment.
7.) Use visual control so no problems
are hidden.
8.) Use only reliable, thoroughly tested
technology that serves your people and
processes.
29
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
14 Management Principles (Cont. 4/5)
Sect. III: Add value to the organization by
developing its PEOPLE AND PARTNERS
9.) Grow leaders who thoroughly understand the
work, live the philosophy, and teach it to others.
10.) Develop exceptional people
and teams who follow your
company's philosophy.
11.) Respect your extended
network of partners and suppliers
by challenging them and helping them improve.
30
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
14 Management Principles (Cont. 5/5)
Sect. IV: Continuously SOLVING ROOT
PROBLEMS to drive organizational learning
12.) Go and see for yourself to
thoroughly understand the situation
(Genchi Genbutsu).
13.) Make decisions slowly by consensus,
thoroughly considering all options;
implement decisions rapidly (Nemawashi).
14.) Become a learning organization
through relentless reflection (Hansei)
and continuous improvement (Kaizen).
31
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558 32
“ I want to discuss the philosophy of Toyota’s quality control.
I myself, as well as Toyota, am not perfect. At times, we do find
defects. But in such situations, we always stop, strive to
understand the problem, and make changes to improve further.
In the name of the company, its long-standing tradition and
pride, we never run away from our problems or pretend we
don’t notice them. By making continuous improvements,
we aim to continue offering even better products for society.
That is the core value we have kept closest to our hearts
since the founding days of the company…
At Toyota, we believe the key to making quality products is
to develop quality people. Each employee thinks about
what he or she should do, continuously making improvements,
and by doing so, makes even better cars ”
Mr. Akio Toyoda, President of Toyota Motors
on February 24, 2010, U.S. Congressional Committee
regarding safety issues with Toyota’s automobiles
http://www.theguardian.com/business/2010/feb/24/akio-toyoda-statement-to-congress
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Q : How can you avoid the dangers of what you've
called "Big Business disease“ of Toyota becoming
too large and complacent?
A : Everyone should be dissatisfied with the present
situation and should constantly try to improve or
change things. It's important to realize that
there is always something more we need to aim at.
That's what needs to be recognized by
every individual. When you're growing
you're satisfied with the status quo,
and that's not good. Mr. Katsuaki Watanabe, Former President of Toyota
Interviewed by Time Magazine, July 2005
33
http://www.time.com/time/magazine/article/0,9171,1086192,00.html#ixzz27GEu6vQQ
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Toyota Way Concepts
and Practices
34
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
The DNA of Toyota
Continuous Improvement
Respect for People
“ We are never satisfied with
where we are and always improve our business
by putting forth our best ideas and efforts.
We respect people and believe the success of
our business is created by individual efforts and
good teamwork. “ Introduction of Toyota Way Guidebook
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
The Toyota Way 2001 Foundations
Continuous Improvement
Respect for People
Respect
Teamwork
Challenge
Kaizen
Genchi
Genbutsu
“We are preparing to operate as a truly global company guided by a common
corporate culture. ..We have identified the company fundamental DNA,
which summarizes the unique outstanding elements of our company culture.
These are managerial values and business method that are known
collectively as the Toyota Way” Fujio Cho,Former President TMC
“…The rapid growth of Toyota in the past
decade have increased the scope of our
company throughout the world ..
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Toyota Way Structure CHALLENGE We form a long-term vision, meeting challenges with courage and creativity to realize our dreams.
37
KAIZEN We improve our business operation continuously, always driving for innovation and revolution.
GENCHI GENBUTSU We go to the source to find the facts to make correct decisions, build consensus and achieve goals at our best speed.
RESPECT We respect others, make effort to understand each other, take responsibility and do our best to build mutual trust.
TEAMWORK We stimulate growth, share the opportunities of developments and maximize individual and team performance.
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
1.) Challenge (1/2)
• “What it has achieved today .. has emerged
from a combination of diligent research by a
vast number of people possessing year-long
efforts .. and overcoming of countless failure.” (Kiichiro Toyoda)
• We accept challenges with a creative spirit and
the courage to realize our own dreams without
losing drive or energy.
• “We at Toyota welcome Detroit’s resurgence
and this fierce competition ..
because competition benefits all of our
customers by providing improved products they
have right to expect.” (Yale Gieszel,Former EVP TMS)
38
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
1.) Challenge (2/2)
• “..the most important factors for success are
patience, a focus on long rather than short
term results, reinvestment in people, product
and plant “ (Robert B McCurry, Former EVP TMS)
• Unlike exporting, opening
overseas plant involves
serious risks.
However,I do not like to take
half-hearted action once
a decision has been made. (Eiji Toyoda, at the startup
of a US Plant in 1990)
39
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
2.) Kaizen (1/2)
• “Be an innovative and creative thinker.”(Sakichi Toyoda) < It leads to Toyota’s motto “Good Thinking, Good Products” >
• “We must be careful not to become complacent
through our past achievement, but unite and take
on the challenges of the new world.” (Hiroshi Okuda, Former president , TMC)
• We view errors as opportunities for learning.
Rather than blaming individuals,
the organization takes corrective actions.
• “A chain is made of it’s individual links ;
a careless mistake by one person can set back
the effort of everyone in the plant. .. Each worker
should do his job with utmost care.” (Kiichiro Toyoda)
40
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
2.) Kaizen (2/2) • “If a problem is left neglected where supervisor
does not know, improvement is not made and
cost does not fall. Stopping the machines
in the event of a problem .. leads to
identifying the problem” (Taiichi Ohno)
• Toyota organizations are structured to yield the top
quality and efficiency that achieves the highest
profit at market prices. Cost controls and
cost-reduction effort are never-ending.
• Successful practices are adopted
as standard and then transferred,
spread in the organization
to leverage their effect. (Yokoten)
41
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
3.) Genchi Genbutsu (1/2)
Genchi = On the spot, actual place
Genbutsu = Actual thing
• Observe the production floor without
preconceptions and with a blank mind.
Repeat “why” 5 times to every matter (Taiichi Ohno)
• We recognize that a full understanding of situations
and problems requires extensive study and the
gathering .. Facts with Genchi Genbutsu : go the
first-line and see for ourselves
• “Coordination among many divisions and departments
always become necessary. I want you to think of the
entire company rather than yourself alone”
(Eiji Toyoda)
42
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
3.) Genchi Genbutsu (2/2)
• “…since the Toyota production system has been
created from actual practices in the factories of
Toyota, it has a strong feature of emphasizing
practical effects, and actual practice and
implementation over theoretical analysis… “ (Taiichi Ohno)
• “How can you expect to do your job without getting
your hands dirty?” (Kiichiro Toyoda)
• We seek full consensus with member of our
groups and with those from others.
• “An engineer who has power to criticize but not
take action is not able to make cars.” (Kiichiro Toyoda)
43
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
4.) Respect (1/2)
• Our company owes it’s existence to the support and
satisfaction of customers, stockholders, employees,
business partners and host societies.
• “Any big business will face the threat of non-growth and
even collapse without the positive support of society.” (Eiji Toyoda)
• “We wish to make Toyota not only strong but a universally
admired company, winning the trust and respect of the
world. .. That is goal of “Harmonious Growth” (Hiroshi Okuda, Former president)
• “..There’s no end to the process of learning about the
Toyota Way. I don’t think I have a complete understanding
even today, and I have worked for the company
for 43 years…” (Katsuaki Watanabe, former president)
44
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
4.) Respect (2/2)
• We must trust our team members, provide opportunities for
personal growth .. and compensate fairly all individual
contributions.
• “Both the company and the labor union pledge to cooperate
and work to achieve glory for Toyota as a world business.” (Declaration with Union in 1962)
• As global citizens, we demonstrate respect
for other cultures and welcome the contributions
of people of all races, faiths and beliefs.
• “Achievement of business performance by the parent
company through bullying suppliers is totally alien
to the spirit of TPS” (Taiichi Ohno)
• Job assignment should allow your staff to utilize and
develop his capability. That is a way of “Respect”
45
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
5.) Team Work (1/2)
• Learning is a continuous, company-wide process
as superiors motivate and train subordinate…
Every team member should be motivated to learn for
his or her own development.
• People are the most important asset of Toyota and
the determinant of the rise and fall of Toyota. (Eiji Toyoda)
• Every team member has the responsibility
to stop the line every time they see something
that is out of standard. That’s how we put the
responsibility in the hands of our team members.
They feel the responsibility – they feel the power.
They know they count. (Alex Warren,Former SVP,TMMK)
46
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
5.) Team Work (2/2)
• Employees provide their precious hours of life to
the company, so we have to use it effectively,
otherwise we are wasting their life. (Eiji Toyoda)
• We bring all team members together to share
value in a team… Through coordination and
collaboration, the contribution of the team is
greater than the sum of its members.
• An “Orchestra” and “Sales” have
the same key factor for success :
that is collaboration of people.
Make a passionate group (Yukiyasu Togo, Former President of Toyota USA)
47
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
EXPERIENCES SHARING
1.) Challenge
48
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
631 615
549
800
269
363
456486
572 589
363
144
218
304
262297
409
533
626
703682
0
100
200
300
400
500
600
700
800
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Tom Yam Kung Crisis
Thai baht depreciated
26 => 53 B./ $
Units
x 1,000
Thailand Auto. Market
1
2
3 5 Fast Market Recovery
Political Instability & Fuel Price
4
Global Economics Crisis
Market Recovery
(From Forecast 600K)
2012 : 1,436,335 U.
(boosted by tax scheme)
2014 : 859,651 ; -34.4%
‘91 – ’99 : Production Control Dept. ‘04 – ’10 :
Sales Planning Dept.
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
95
.9
10
7.1
42
.7 71
.3
83
.5
13
0.1
28
2.1
23
0.6
32
6.0
74
.6
16
3.9
15
9.7
12
6.5
12
0.4
77
.3
75
.1
18
8.7 2
34
.2 27
8.0
289.1
26
2.2
40.7%42.0%31.8%
28.1%
34.2%
29.6%
29.5%
27.8%
27.9%
26.0%
26.4%
26.4%
28.0%
25.4%
27.2%
35.4%
39.5%42.4% 44.7%42.6%
0
50
100
150
200
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'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
TOYOTA
SHARE
Toyota Thailand Sales and Market Share Movement
Units x 1,000
Share < 30 %
Share increase
to 44.7%
Sales
Drop
74% !
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Toyota Global Sales &
Operating Profits
51
Negative Profit
FY 14
9.1 Mil
“ ..as a part of larger restructuring
in the unprofitable region..”
Ford in Europe
1..
2.
2.0
Tril.
Yen
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Overall Image of
Hoshin Kanri
52
Corporate Direction Mid-Long term viewpoint from
top executive
Fiscal Year
Corporate Policy
Sub-Division Hoshin
Department Hoshin
Section Hoshin
Toyota Way 2001 Breakdown of
Hoshin
Contribute to
upper Hoshin
Individual Priority Themes
PDCA
cycle
Catch
Ball
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Hoshin
Kanri
Process
Draft
Corporate
Policy
Final
Corporate
Policy
Sub
Sub-Division
Hoshin
Department &
Section Hoshin
Vertical
Alignment
Horizontal
Coordination
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Comparison of MBO vs. Hoshin Kanri
MBO . Hoshin Kanri
Results-Oriented evaluation
of effort
Concerned with both results and
process of getting those results
Top-Down Communication Top-Down direction setting and bottom-
up flow of information and means
Directive Participative
Primarily authority oriented Primarily responsibility oriented
Linear – a one shot image
of effort to reach the goal
Circular / spiral image of how to reach
the goal
(add feedback loop and
chance for improvement)
54
( Management By Objectives)
Source: Toyota Culture; Jeffrey K. Liker and Michael Hoseus
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
2.) Kaizen
55
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Kaizen Case : Engine Stock Reduction
56
Engine Mounting Process
Assembly Line
Engine
Stock
Engine
Sub-Ass’y Line
Area Capacity : 60 Units
6 Types of Engine
Management Direction : Reduce area 1/3 ( 60 => 40 Units)
Solution : Reduce Lot Size at Engine Sub-Ass’y
10 => 5 Units / lot
Transmission
Manual Auto.
Corolla 1.3 L. 1
1.6 L. 2 3
Corona 1.6 L. 4
2.0 L. 5 6
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Computerized Production Control Project
Production Start
SYSTEM PURPOSE : - Daily Production Ordering - Production Instruction Making - Vehicle Progress Control
MAIN FUNCTION : - Leveling Prod. Sequence & Part Code Creation - On line Production Order Distribution - Production Data Inquiry
S Y S T E M S E R V E R
System Terminal
W E L D I N G L I N E P A I N T I N G L I N E A S S E M B L Y L I N E
- VehicleTracking - Serial Printer - Manifest Printer
White body stock
C S. L I N E
Painted
Stock
Frame Stock
Frame Welding Plant
Line off Printing Input
Stock Input Assembly
Input
Trim Line
Final Line
Line off
Final Inspection
Chassis Line EDP.
EDP. SealerCoating
ID Card Print out
Frame Stock Input
Body
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Toyota Viewpoints on Financial Crisis
and Recall Problem
Q: Toyota likely achieved a record group profit for the year
ending March 2014. What's behind this expansion?
A: After going through the 2008 global financial crisis
and recall problems, we became more aware of
our weaknesses. In particular, we keenly felt
that our rapid expansion had cost us dearly.
As a result of merely focusing on selling more cars,
we failed to foster personnel capable of
keeping pace with our growth.
We've learned a lot from our mistakes. I tell my employees
that we are on the starting line for moving into sustainable
growth. They are not overly excited about the record profit.
58
Akio Toyoda,
Toyota President
Interviewed on March 24, 2014 http://asia.nikkei.com/Business/Companies/Toyota-forecasts-record-profit-sales-of-10-million-units
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Kaizen after “Recall” Crisis in USA
59
Units
$
Sales
Fixed Cost
Total Cost
Variable Cost
BEP.
(Break Even Point)
80% Capacity
Global Direction:
Reduce BEP 80% => 70%
1. VC
2. FC
3. FC => VC ( Change structure)
Source :
Cap.
80%
Negative Profit
Positive Profit
70%
70%
Before After
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
3.) Genchi Genbutsu
60
Genchi = On the spot, actual place
Genbutsu = Actual thing
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Genchi Genbutsu • Genba Behavior of Management
- Informal : MBWA, Problem Solving
(Management by wandering around)
- Formal : Shopfloor Auditing, Meeting
• My 1st job in Toyota Generating and Distributing “Daily production order”.
• Production Progress Control [ Strengthen PDCA ]
- Closely worked with production at shopfloor
• New comer orientation at Genba (and Dealers) 61
http://www.nhkseating.com/facility.html
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
TBP (Toyota Business Practice)
Approach
62
TBP
Toyota Way
Action
Values
1. Clarify Problem
2. Breakdown the
Problem
3. Target Setting
4. Root Cause
Analysis
5.
6.
7. Monitor both
Results and Process
8. Standardize
Successful Processes
See
Countermeasures
Through
Develop
Countermeasure
• Customer First
• Always confirm the
Purpose of Your Work
• Ownership and
Responsibility
• Visualization (Mieruka)
• Judgment Based on Fact
• Think and Act Persistently
• Speedy Action in a Timely
Manner
• Follow each Process with
Sincerity and
Commitment
• Through Communication
• Involve all Stakeholders
Drive and
Dedication • 8 Steps ( Concrete Action
and Processes)
Source : TMT Internal Training
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Shopfloor Manpower Structure and
Empowerment
63
Team
Leader
Team
Member
Team
Member
Team
Member
Team
Member
Team
Member
Team
Member
•Team members are working together,
leaded by highly skilled team leader (TL).
•TL’s role
- Respond Andon call - Ensure safety and ergonomics
- Auditing standardized work - Facilitate Problem solving
•Whenever team member absent, TL has to work instead.
Group
Leader
Generally, 6-8 members / team
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
4.) Respect
64
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Mutual Trust and Respect between
Company and Employee
65
COMPANY
PROSPERITY GOOD LIVING
OF EMPLOYEE
Ensure
• Stability of Employment
• Improve Working Condition
Maximize Cooperation
with Company
Common
Value
Source: Toyota Way in Human Resource Management
• Enhance
“Transparency”
• Keep “Consistency”
• Express “Sincerity”
• Communicate
“Comprehensively”
• Be always “Fair”
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Respect (Self Experience) • Employee
o Company welfare (Medical reimbursement, Uniform, ..)
o ES (Employee Satisfaction) Survey & Improvement
o Half year conference
o President’s home meeting (2-way informal communication)
66
Questions XXX
Department
I would not hesitate to recommend Toyota
to a friend seeking employment
XX%
Given the opportunity, I tell others great things
about working here
XX%
I hardly ever think about leaving Toyota
to work somewhere else
XX%
Toyota motivates me to contribute
more than is normally required to complete my work
XX%
Sample ES. Survey Information
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Respect (Self Experience)
• Not only Employment but Relationship
o If you were a worker making defect, what would
you do?
o Do you feel you should
buy your company
products/ services ?
67
“Making defect,
cut salary ….. Baht”
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Respect (Self Experience)
• Dealers
o Monthly meeting with president (or EVP of Marketing)
o Information sharing :
- Macro & Micro economics
- Market competition by province
- New product development / Information
o Dealer assistant during crisis
o “..When the Detroit Three representative comes
knocking at my door, it is to pressure me to buy more
cars that I will not be able to sell...when the Toyota
rep. come, he wants to know what he can do to help.
They give us information on the local market.. “ (Owner of a Toyota dealership who also owns a Detroit three
dealership, from Toyota Culture; Jeffrey K. Liker and Michael Hoseus)
68
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Respect (Self Experience)
• Labor Union
o Mutual trust and Relationship
o Information sharing with Union committee
( HRD, PCD, FPD and SPD )
o Annual negotiation : Salary, Bonus, Welfare < Opened communication >
• Social Responsibility
o Import Duty Reduction and Vehicle Pricing
JTEPA (Japan – Thai Economic partnership Agreement )
and Hiace Van
AFTA (ASEAN Free Trade Area )
and Innova, Avanza
69
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
SCG VISION and HR Development
70
“ ..คนถอืเป็นทรัพยากรทีม่คีา่สงูสดุ เราใหค้วามส าคัญอยา่งจรงิจังในการสง่เสรมิศักยภาพ ทัง้ความรู ้ความสามารถ และคณุธรรม .. โดยมองวา่เป็นการลงทนุทีต่อ้งท าอยา่งตอ่เนือ่ง”
Source : ASEAN Focus Magazine Mar. 2015
• งบประมาณพัฒนาทรัพยากรบคุคลปีละ 1,200 ลา้นบาท
• พนักงานทัง้ไทยและชาตอิาเซยีน 30,000 คน
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
5.) Teamwork
71
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
- Linkage with Promotion
- AP-GPC Establishment
(Asia Pacific Global Production
Training Center )
Training and Development Strategy :
[ Focus and Tools ]
72
General Manager and VP Level
Business Planning and Policy Deployment
Tools : Hoshin Kanri and TBP (Toyota Business Practice)
Manager Level
Shopfloor and System Improvement
Tools : Visual Factory and TBP
Team Leader and Group Leader
Manage Standardized Work, Process Improvement
and Develop Problem Solving Skills
Tools : FMDS*, TBP, OJT/OJD
FMDS* (Floor
Management
Development
System)
Team Member
Fundamental Skills and Standardized Work
Tools : Skill Training, Job Instruction, Standardized Work and 5S
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
One Page Report / A3
• A3 is recognized as a tool of “Lean” < Proposal, Problem solving (TBP), Other reports >
• Summarize all necessary information into 1 page.
• Less texts, more table, graph, flow, picture, diagram,..
73
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558 74
One page document (A3) / Project at a glance
Background
Current
Condition
Goals/Targets
Analysis
Countermeasures
Future Stage Map
Implementation Plan
Follow up
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Obeya (Big Room)
• Apply “War room” concept into new product
development, new project. < Camry Hybrid, Prius Introduction & EOPD >
• Visualize all necessary information.
• Collaboration among functions can be easily done
through leadership of chairperson (President)
• Standing meeting, 1 hour.
75
http://toyotadriverseat.com/pr/tds/new-product-quality-system-turns-216494.aspx http://pilotzone.ucoz.ru/index/obeja/0-37
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Traditional & Toyota Leader
Traditional Leader Toyota Leader
Quick Results Patient / Long term
Proud Humble
Climb Ladder Rapidly Learn Deeply and Horizontally and
Gradually Work Way up Ladder
Management by the
Numbers (Bottom line)
Deeply Understand the Process
Right Process will Lead to the Right Results
Accomplish Objectives
Through People
Develop People
Overcome Barriers Take Time to Deeply Understand Problem
and Root Cause Before Acting
76
Modified from Toyota Culture; Jeffrey K. Liker and Michael Hoseus
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Toyota Staff Development • “ Toyota develop T-Type People ..
the vertical stroke stands for the
fact that employees must intensify
or deepen what they do,
77
Broad experience across job
Deep knowledge
within a specialty
domain
and the horizontal stroke indicates that they must learn
other jobs.” (Katsuaki Watanabe, former president)
GM
AGM
MGR
AM
ENG / GL
TL
TM
18 25 30 35 40 45 50 55 60 Position Age
General
Manager
Assistant GM
Manger
Assistant MGR
Group Leader
Team Leader
Team Member
Production Side
Engineer Side
Source: Toyota Culture; Jeffrey K. Liker and Michael Hoseus
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
A culture of contradictions
• Move slowly, yet take big leaps
• Grow steadily, yet paranoid <“No change is bad” >
• Operations are efficient, but Toyota uses employee’s
time in seemingly wasteful ways <Meeting>
• Frugal, but splurge on key area <Manu. Facilities,Dealer Network>
• Insist internal communications be simple, yet build
complex social networks
• Strict hierarchy, but give employee freedom to push back
Forces of Expansion
• Impossible goal
• Local customization
• Experimentation
“Soft” Innovation that drive Toyota’s success
78
Ref.: The contradictions that drive Toyota’s success,
Havard business review June 2008
(1/2)
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
• Forces of Integration (Cont.)
• Value from founders
• Tomorrow will be better than today
• Everybody should win
• Genchi Genbutsu
• Customers first, Dealer second and Manufacturer last
• Up-and-in people management (not up-or-out)
<‘97 Asian crisis,”cut all costs but don’t touch people”>
• Open communication
• Disseminate know-how laterally <Yokoten, Obeya>
• Give people the freedom to voice contrary opinions
• Have frequent face-to-face interactions
• Make tacit knowledge explicit <Toyota way>
• Create support mechanism <Toyota Institute>
“Soft” Innovation that drive Toyota’s success
79
(2/2)
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
SUGGESTION
How to “CHANGE”
organizational culture ?
80
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
7 Habits of Highly Effective People Stephen R. Covey
81
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
How Cultural change
Organization Culture
Value and
Attitudes
What
We Do Change
Thinking
to change
Behavior
Change
Behavior
to change
Thinking
Source: John Shook : MIT Sloan Management Review Winter 2010
1 2
Which one is more effective?
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
Which words do you speak ?
83
“There’s no problem at
my work.”
“No problem means you have problem.”
“Mistake has been solved.
It’s finished.
“How can we learn to prevent that
mistake happening again?”
“Who made that defects?” “Why that defects happened?”
“I define my own methods.” “Methods and procedures should be
standardized.”
“I can do better than my
colleagues.”
“I work as a part of the team.”
“Set that target.
It is easy to achieve.”
“Objective of target setting is to
challenge. Easy target is meaningless.”
“Improvement is
someone else job, not mine.”
“Improvement is the job for everyone.”
Lean Culture .. DNA to the success of LEAN; กฤชชัย อนรรฆมณี, 21-22 เมษายน 2558
ขอบคณุครบั
กฤชชยั อนรรฆมณี
Kritchai Anakamanee
Lean and Productivity Consultant
e-mail: [email protected]
84