the future on a schedule: toyota’s profit...
TRANSCRIPT
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The future on a schedule:
Toyota’s profit management
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General Motors Corporation (1921)
Executive Committee President
Financial Staff
GM Acceptance Corporation
Financial Staff
Financial Staff
Sheridan Division
Oldsmobile Division
Buick Division
Cadillac Division
GM Export Company
Chevrolet Division
GM Truck Division
Canadian Division
Samson Tractor Division
Oakland Division
Inter-company
Parts Division
Scripps Booth
Division
Board of Directors
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Structure and control
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SP
EE
D =
1/C
S = 4
S = 2 0
5
10
15
20
25
Amdahl’s Law
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..and 7 years since our breakup
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SP
EE
D =
1/C
S = 20
S = 10
S = 4
S = 2 0
5
10
15
20
25
Amdahl’s Law
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Market capitalization in US$ (billions)
0 50 100 150 200 250 300
Fiat Chrysler
Nissan
GM
Honda
BMW
Ford
Daimler
Toyota
June 31, 2016
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Cost and quality in one system
• Standard task
• Standard sequence
DEMING
• Standard time
• Standard WIP
FORD
HIGHEST QUALITY, LOWEST COST, SHORTEST LEAD TIME
JIT JIDOKA
OPERATIONAL STABILITY
STANDARD WORK
KAIZEN HEIJUNKA
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Toyota Motor Corporation (circa 1963)
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pT = (p – cT)q
Target profit & target cost
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Interrelationships
Product hows
Relationship matrix
Importance
Technical attributes
and
evaluation
Analy
sis
of
com
petito
rs
Customer
wants
Rankin
gs
House of quality
B.O.M.
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Labor cost
L = SCTi / t
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Inventory
Swip = L = SCTi / t
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Process reliability
OEE = A•E•Q
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Order line profitability
Revenue $60,000
Direct cost - $40,000
Indirect cost Volume-related - $3,500
Structural - $2,750
Costs of newness - $2,500
Order line profitability $11,250
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X
T T T T
Strategic ini- a- ves Corpora- on
Value Streams
X
A3‐X Matrix A3‐Ts for corporate departments • F = fin
a
nce • M = marke- ng • S = sales • R = R&D
Engineer‐to‐Order Company Deployment Tree
X
X
T T T F
VS2 VS1 R S M F Pr IT L Pu
• Pu = purchasing • Pr = produc- on
• IT = IT • L = legal
T T T T
Processes
T T T T
Processes
VS2
A3‐Ts for • Value Streams
T
A3‐Ts for • Processes
Deployment tree (manufacturing)
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X T T T T T T
Strategic initiatives Support Departments
Service Lines
Service line departments
Service line initiatives
Deployment tree (healthcare)
T
T
T
X X X X X X
T T T T T
T
T
T
T
T
T
T
T
T
T
T
T
T
T
T
T
T
T
T
T
T
T
T
T
X X X X X X
T T T T T
T T T T T
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1500
2500
0 500 1000 1500 2000 2500 3000
Normal
Launch
Andon triggers / shift at Toyota
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Toyota kata
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External failure
Inspection & rework
Quality and profit at the source X 1
X 10
X 100
X 0 Zero quality and financial defects
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