Lean Process And Six Sigma Instructor Guide
TABLE OF CONTENTS Preface ..............................................................................................................................................5 What is Courseware? ................................................................................................................................ 5 How Do I Customize My Course? .............................................................................................................. 5 Materials Required ................................................................................................................................... 7 Maximizing Your Training Power .............................................................................................................. 7 Module One: Getting Started .............................................................................................................9 Housekeeping Items.................................................................................................................................. 9 The Parking Lot ....................................................................................................................................... 10 Workshop Objectives .............................................................................................................................. 10 Pre-Assignment Review .......................................................................................................................... 11 Action Plans and Evaluations.................................................................................................................. 11 Module Two: Understanding Lean .................................................................................................... 12 About Six Sigma ...................................................................................................................................... 12 About Lean .............................................................................................................................................. 15 History Behind Lean ................................................................................................................................ 17 Toyota Production Systems .................................................................................................................... 18 The Toyota Precepts ............................................................................................................................... 19 Module Two: Review Questions.............................................................................................................. 22 Module Three: Liker’s Toyota Way ................................................................................................... 24 Philosophy............................................................................................................................................... 24 Process .................................................................................................................................................... 25 People and Partners................................................................................................................................ 28 Problem Solving ...................................................................................................................................... 29
Module Three: Review Questions ........................................................................................................... 31 Module Four: The TPS House ............................................................................................................ 34 The Goals of TPS ..................................................................................................................................... 34 The First Pillar: Just In Time (JIT) ............................................................................................................. 36 The Second Pillar: Jidoka (Error-Free Production) .................................................................................. 37 Kaizen (Continuous Improvement) ......................................................................................................... 38 The Foundation of the House.................................................................................................................. 41 Module Four: Review Questions ............................................................................................................. 42 Module Five: The Five Principles of Lean Business ............................................................................. 44 Value ....................................................................................................................................................... 44 Value Stream .......................................................................................................................................... 45 Flow ........................................................................................................................................................ 46 Pull .......................................................................................................................................................... 48 Seek Perfection ....................................................................................................................................... 49 Module Five: Review Questions .............................................................................................................. 50 Module Six: The First Improvement Concept (Value) ......................................................................... 52 Basic Characteristics ............................................................................................................................... 52 Satisfiers ................................................................................................................................................. 53 Delighters................................................................................................................................................ 54 Applying the Kano Model ....................................................................................................................... 56 Module Six: Review Questions ................................................................................................................ 58 Module Seven: The Second Improvement Concept (Waste)............................................................... 61 Muda....................................................................................................................................................... 61 Mura ....................................................................................................................................................... 62 Muri ........................................................................................................................................................ 63 The New Wastes ..................................................................................................................................... 64
Module Seven: Review Questions ........................................................................................................... 65 Module Eight: The Third Improvement Concept (Variation) ............................................................... 67 Common Cause ....................................................................................................................................... 67 Special Cause .......................................................................................................................................... 68 Tampering............................................................................................................................................... 69 Structural ................................................................................................................................................ 70 Module Eight: Review Questions ............................................................................................................ 72 Module Nine: The Fourth Improvement Concept (Complexity) .......................................................... 74 What is Complexity? ............................................................................................................................... 74 What Causes Complexity? ...................................................................................................................... 75 How to Simplify? ..................................................................................................................................... 76 Module Nine: Review Questions ............................................................................................................. 78 Module Ten: The Fifth Improvement Concept (Continuous Improvement) ......................................... 79 The PDSA Cycle (Plan, Do, Study, Act)..................................................................................................... 79 The DMAIC Method ................................................................................................................................ 81 Module Ten: Review Questions .............................................................................................................. 83 Module Eleven: The Improvement Toolkit ........................................................................................ 84 Gemba .................................................................................................................................................... 84 Genchi Genbutsu..................................................................................................................................... 85 Womack’s Principle................................................................................................................................. 86 Kaizen...................................................................................................................................................... 88 A Roadmap for Implementation ............................................................................................................. 89 Module Eleven: Review Questions .......................................................................................................... 92 Module Twelve: Wrapping Up .......................................................................................................... 94 Words from the Wise .............................................................................................................................. 94 Parking Lot .............................................................................................................................................. 94
Action Plans and Evaluations.................................................................................................................. 95
Learning is a treasure that will follow its owner everywhere. Chinese Proverb Preface What is Courseware? Welcome to Courseware.com, a completely new training experience! Our courseware packages offer you top-quality training materials that are customizable, user-friendly, educational, and fun. We provide your materials, materials for the student, PowerPoint slides, and a takehome reference sheet for the student. You simply need to prepare and train! Best of all, our courseware packages are created in Microsoft Office and can be opened using any version of Word and PowerPoint. (Most other word processing and presentation programs support these formats, too.) This means that you can customize the content, add your logo, change the color scheme, and easily print and e-mail training materials.
How Do I Customize My Course? Customizing your course is easy. To edit text, just click and type as you would with any document. This is particularly convenient if you want to add customized statistics for your region, special examples for your participants’ industry, or additional information. You can, of course, also use all of your word processor’s other features, including text formatting and editing tools (such as cutting and pasting). To remove modules, simply select the text and press Delete on your keyboard. Then, navigate to the Table of Contents, right-click, and click Update Field. You may see a dialog box; if so, click “Update entire table” and press OK.
(You will also want to perform this step if you add modules or move them around.)
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If you want to change the way text looks, you can format any piece of text any way you want. However, to make it easy, we have used styles so that you can update all the text at once. If you are using Word 97 to 2003, start by clicking the Format menu followed by Styles and Formatting. In Word 2007 and 2010 under the Home tab, right-click on your chosen style and click Modify. That will then produce the Modify Style options window where you can set your preferred style options. For example, if we wanted to change our Heading 1 style, used for Module Titles, this is what we would do:
Now, we can change our formatting and it will apply to all the headings in the document. For more information on making Word work for you, please refer to Word 2007 or 2010 Essentials by Courseware.com.
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Materials Required All of our courses use flip chart paper and markers extensively. (If you prefer, you can use a whiteboard or chalkboard instead.) We recommend that each participant have a copy of the Training Manual, and that you review each module before training to ensure you have any special materials required. Worksheets and handouts are included within a separate activities folder and can be reproduced and used where indicated. If you would like to save paper, these worksheets are easily transferrable to a flip chart paper format, instead of having individual worksheets. We recommend these additional materials for all workshops:
Laptop with projector, for PowerPoint slides
Quick Reference Sheets for students to take home
Timer or watch (separate from your laptop)
Masking tape
Blank paper
Maximizing Your Training Power We have just one more thing for you before you get started. Our company is built for trainers, by trainers, so we thought we would share some of our tips with you, to help you create an engaging, unforgettable experience for your participants.
Make it customized. By tailoring each course to your participants, you will find that your results will increase a thousand-fold. o o
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Use examples, case studies, and stories that are relevant to the group. Identify whether your participants are strangers or whether they work together. Tailor your approach appropriately. o Different people learn in different ways, so use different types of activities to balance it all out. (For example, some people learn by reading, while others learn by talking about it, while still others need a hands-on approach. For more information, we suggest Experiential Learning by David Kolb.) Make it fun and interactive. Most people do not enjoy sitting and listening to someone else talk for hours at a time. Make use of the tips in this book and your own experience to keep your participants engaged. Mix up the activities to include individual work, small group work, large group discussions, and mini-lectures.
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Make it relevant. Participants are much more receptive to learning if they understand why they are learning it and how they can apply it in their daily lives. Most importantly, they want to know how it will benefit them and make their lives easier. Take every opportunity to tie what you are teaching back to real life.
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Keep an open mind. Many trainers find that they learn something each time they teach a workshop. If you go into a training session with that attitude, you will find that there can be an amazing two-way flow of information between the trainer and trainees. Enjoy it, learn from it, and make the most of it in your workshops.
And now, time for the training!
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Quality means doing it right when no one is looking. Henry Ford Module One: Getting Started During the last couple of decades small, mid-sized and Fortune 500 companies have embraced Six Sigma to generate more profit and greater savings. So what is Six Sigma? Six Sigma is a data-driven approach for eliminating defects and waste in any business process. You can compare Six Sigma with turning your water faucet and experiencing the flow of clean, clear water. Reliable systems are in place to purify, treat, and pressure the water through the faucet. That is what Six Sigma does to business: it treats the processes in business so that they deliver their intended result. What is "Sigma"? The word is a statistical term that measures how far a given process deviates from perfection. Sigma is a way to measure quality and performance. The central idea behind Six Sigma is that if you can measure how many "defects" you have in a process, you can systematically figure out how to eliminate them and get as close to "zero defects" as possible. This workshop will give participants an overview of the Six Sigma methodology, and some of the tools required to deploy Six Sigma in their own organizations.
Housekeeping Items Take a few moments to cover basic housekeeping items.
If you need an opening or a way to introduce the participants to each other, utilize the Icebreakers folder to begin or between breaks during the day.
Let participants know where they can find washrooms, break facilities, and fire exits.
Ask participants to turn off their cell phones or at least turn them to vibrate. If they must take a call, request that they do it outside.
Take this time to encourage the group to ask questions and make this an interactive workshop.
Write the words Respect, Confidentiality, and Practice on a piece of flip chart paper and tape it to the wall. Explain to participants that in order to get the most out of this workshop, we must all work together, listen to each other, explore new ideas, and make mistakes. After all, that’s how we learn!
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The Parking Lot Explain the concept of The Parking Lot to participants.
The Parking Lot is a visible place where you will “park” ideas that arise which are not on the agenda, may be off topic, or are better addressed outside of the program.
At the end of the session, we will review parked ideas and follow up, or make suggestions for your own investigation when you are back at work.
Suggestions for the trainer: 1. If you are working with a large group of participants, you may wish to nominate a recorder to park items as you are facilitating. 2. It’s a good idea to note the name of the contributor along with the parked item. 3. Items noted on the parking lot can be useful to you later as you plan future training sessions.
Workshop Objectives Research has consistently demonstrated that when clear goals are associated with learning, it occurs more easily and rapidly. This workshop is designed to help you in the following ways:
Develop a 360 degree view of Six Sigma and how it can be implemented in any organization.
Identify the fundamentals of lean manufacturing, lean enterprise, and lean principles.
Describe the key dimensions of quality – product features and freedom from deficiencies
Develop attributes and value according to the Kano Model
Understand how products and services that have the right features and are free from deficiencies can promote customer satisfaction and attract and retain new customers.
Describe what is required to regulate a process
Give examples of how poor quality affects operating expenses in the areas of appraisal, inspection costs, internal failure costs, and external failure costs
Using basic techniques such as DMAIC and how to identify Six Sigma Projects
Use specific criteria to evaluate a project
Discover root causes of a problem
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Design and install new controls to hold the gains and to prevent the problem from returning.
Pre-Assignment Review The purpose of the Pre-Assignment is to get you thinking about business improvement and the processes behind business improvement. As a pre-assignment, we asked participants consider an improvement activity they’re about to implement in the work place. The improvement could be about eliminating a certain form, or paper documents, or the use of a certain tool or machine. Have participants take a moment now to think about their improvement ideas. Ask them to keep it in mind during the day as it will help them identify practical applications for the tools and techniques that we discuss.
Action Plans and Evaluations Pass out the participant action plans and evaluations, available in the activities folder. Ask participants to fill these out throughout the day as they learn new things and have ideas on how to incorporate the things we discuss into their lives.
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Six Sigma is the most important training thing we have ever had. It’s better than going to Harvard Business School. Jack Welch Module Two: Understanding Lean Lean and Six Sigma are buzz-words we hear in business all of the time. Before we get started, let’s make sure we all understand just what we mean by “lean” and “Six Sigma”.
About Six Sigma
Six Sigma is a structured, data-driven process of solving critical issues from a business perspective that we haven’t been able to solve with current methodology.
Six Sigma is the single most effective problem-solving methodology for improving business and organizational performance.
The common measurement scale is called the Sigma capability or Z and is a universal scale. It is a scale like a yardstick measuring inches or a thermometer measuring temperature.
The scale allows us to compare business processes in terms of the capability to stay within the quality limits established for that process.
The Sigma scale measures Defects per Million Opportunities (DPMO). Six Sigma equates to 3.4 defects per million opportunities.
What Six Sigma is and is not:
Six Sigma is not an add-on to normal business activities.
It is an integrated part of the improvement process.
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Six Sigma is management methodology driven by data.
Six Sigma focuses on projects that will produce measurable business results.
Six Sigma is not a standard, a certification or a metric like percentage.
The central idea behind Six Sigma is that if you can measure how many" defects” you have in a process, you can systematically determine how to eliminate those and approach “zero defects”.
Sigma is a value from 1 to 6 that signifies the maximum number of defects per million: 1 Sigma = 690,000 defects/million = 31% accurate 2 Sigma = 308,537 defects/million = 69.1463% accurate 3 Sigma = 66,807 defects/million = 93.3193% accurate 4 Sigma = 6,210 defects/million = 99.3790% accurate 5 Sigma = 233 defects/million = 99.9767% accurate 6 Sigma = 3.4 defects/million = 99.999997% accurate Six Sigma is about reducing variation.
Six Sigma find out the facts before acting.
Estimated Time
10 minutes
Topic Objective
To understand that “Six Sigma” is a methodology for improving processes.
Six Sigma is a structured, data-driven process of solving critical issues from a business perspective that we haven’t been able to solve with current methodology.
Six Sigma is the single most effective problem-solving methodology for improving business and organizational performance.
The common measurement scale is called the Sigma capability or Z and is a universal scale. It is a scale like a yardstick measuring inches or a thermometer measuring temperature.
The scale allows us to compare business processes in terms of the capability to stay within the quality limits established for that process.
The Sigma scale measures Defects per Million Opportunities (DPMO). Six Sigma equates to 3.4 defects per million opportunities.
Topic Summary
Materials Required
List the activities below on a flip chart.
Planning Checklist
Before the workshop, write the following on the flip chart:
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For every 300,000 letters delivered With 99% delivery rate = With Six Sigma = For every 500,000 computer starts With 99% start rate = With Six Sigma = Out of 450,000 order lines per month With 99% order fills = With Six Sigma = Have the group work on the numbers below. Here are the answers: For every 300,000 letters delivered With 99% delivery rate = 3,000 wrong deliveries With Six Sigma = 1 wrong delivery Recommended Activity
For every 500,000 computer starts With 99% start rate = 5,000 crashes With Six Sigma = >2 crashes Out of 450,000 order lines per month With 99% order fills = 4,500 broken promises With Six Sigma = >2 broken promises Motorola, the place where Six Sigma began, saved $2.2 billion in four years using Six Sigma.
Stories to Share
GE saved $2 billion over 3 years implementing Six Sigma. Jack Welch, former CEO became an ambassador of Six Sigma and inspired Corporate America, and the rest of the world to follow. It is important to show the group that Six Sigma is not just about improving efficiencies in a factory or for manufacturing. Here are some examples:
Delivery Tips
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Call Centers (response / resolution time)
Ordering Systems (order time to deliver, order accuracy)
Hospital Systems (Patient Flow)
Human Resource Management (Customer Service Training)
Retail Services (Wait time, Customer Satisfaction)
Review Questions
What is Six Sigma? What and where is it used?
About Lean “Lean” means continuously improving towards the ideal and achieving the shortest possible cycle time through the tireless reduction of waste.
It is focused on eliminating waste in all processes
It is about expanding capacity by reducing costs and shortening cycle times
It is about understanding what is important to the customer
It is not about eliminating people
Examples of Lean Projects:
Reduced inventory
Reduced floor space
Quicker response times and shorter lead times
Decreased defects, rework, scrap
Increased overall productivity
Estimated Time
10 minutes
Topic Objective
To understand what is meant by the term “lean”. “Lean” means continuously improving towards the ideal and achieving the shortest possible cycle time through the tireless reduction of waste.
Topic Summary
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It is focused on eliminating waste in all processes
It is about expanding capacity by reducing costs and shortening cycle times
It is about understanding what is important to the customer (e.g. value)
It is not about eliminating people
Examples of Lean Projects
Recommended Activity
Reduced inventory
Reduced floor space
Quicker response times and shorter lead times
Decreased defects, rework, scrap
Increased overall productivity
Have group share examples of lean activities in their organizations. In Lean, Value Added means:
Customers are willing to pay for it
It physically changes the product
It’s done right the first time
In Lean, Non Value-Added means:
Delivery Tips
It is not essential to produce output
Does not add value to the output
This Includes:
Review Questions
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Defects, errors, omission
Preparations/setup, control/inspection
Over-production, processing, inventory
Transporting, motion, waiting, delays
What are examples of Lean Projects?
History Behind Lean The phrase “lean manufacturing” was coined in the 1980's and has its roots in the Toyota Production System. (See later in this module) Most of the basic goals of lean manufacturing are common sense, and some fundamental thoughts have been traced back to the writings of Benjamin Franklin. Henry Ford cited Franklin as a major influence on his lean business practices, which included Just-in-time manufacturing. The founders of Toyota designed a process with inspiration from Henry Ford and their visits to the United States to observe the assembly line and mass production that had made Ford rich. The process is called the Toyota Production System, and is the fundamental principle of lean manufacturing. Two books have since shaped the ideologies of Lean: “The machine that changed the world” (1990) and “Lean Thinking” (1996).
Estimated Time
10 minutes
Topic Objective
Understand how “lean” became an integral part of modern manufacturing and corporate ideologies. The phrase “lean manufacturing” was coined in the 1980's and has its roots in the Toyota Production System. (See later in this module) Most of the basic goals of lean manufacturing are common sense, and some fundamental thoughts have been traced back to the writings of Benjamin Franklin.
Topic Summary
Henry Ford cited Franklin as a major influence on his lean business practices, which included Just-in-time manufacturing. The founders of Toyota designed a process with inspiration from Henry Ford and their visits to the United States to observe the assembly line and mass production that had made Ford rich. The process is called the Toyota Production System, and is the fundamental principle of lean manufacturing. Two books have since shaped the ideologies of Lean: “The machine that changed the world” (1990) and “Lean Thinking” (1996).
Materials Required
Copy of “Lean Thinking” if possible.
Planning Checklist
Obtain a copy of “Lean Thinking” before the workshop
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Recommended Activity
Pass around “Lean Thinking” for participants to look at.
Stories to Share
In 1910 Henry Ford moves his factory into Highland Park, the “birthplace of lean manufacturing”, with continuous flow of parts.
Toyota Production Systems The Toyota Production System (TPS) is a mindset and management system that embraces continuous improvement. TPS organizes manufacturing and logistics, including interaction with suppliers and customers. Originally called "Just in Time Production," it builds on the approach created by the founders of Toyota. TPS revolves around 5 simple steps: 1. Define Value of your product > Make it according to Customer needs and Customer Defined 2. Identify Value Stream of your product > Follow the product and identify unnecessary actions 3. Study the Flow your product > Eliminate All Waste 4. Make only what the customer orders > Produce Just In Time for Demand 5. Strive for Perfection > Continuous Improvement. Good enough is never enough.
Estimated Time
10 minutes
Topic Objective
Understanding the TPS system on which modern manufacturing is modeled upon. The Toyota Production System (TPS) is a mindset and management system that embraces continuous improvement. TPS organizes manufacturing and logistics, including interaction with suppliers and customers.
Topic Summary
Originally called "Just In Time Production," it builds on the approach created by the founders of Toyota. TPS revolves around 5 simple steps: 1. Define Value of your product > Make it according to Customer needs and Customer Defined 2. Identify Value Stream of your product > Follow the product and
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identify unnecessary actions 3. Study the Flow your product > Eliminate All Waste 4. Make only what the customer orders > Produce Just In Time for Demand 5. Strive for Perfection > Continuous Improvement. Good enough is never enough. Materials Required
Handout: The TPS House
Planning Checklist
Print out one TPS House-diagram per participant
Recommended Activity
Have participants review the TPS House and encourage them to share other ideologies and manufacturing processes they are familiar with.
Delivery Tips
If you handed out the TPS-House Diagram at the beginning of the workshop, this activity should go smoothly.
Review Questions
What does TPS stand for?
The Toyota Precepts The five methods defined by Toyota contain some basic principles: 1. CHALLENGE: Form a long-term vision, meeting challenge with courage and creativity to realize your dreams. Create Value through Manufacturing and Delivery of Products and Services Nurture a spirit of Challenge Always have a Long Range Perspective Thorough Consideration in Decision Making 2. KAIZEN: Improve your business operations continuously, always driving for innovation and evolution. Have a Kaizen Mind and Innovative Thinking (See later this module) Build Lean Systems and Structure Promote Organizational Thinking
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3. GENCHI GENBUTSU (Go and see): Go to the source to find the facts to make correct decisions, build consensus, and achieve goals at our best speed. Genchi Genbutsu (Go and See) Lead with Consensus Building Create Commitment to Achievement 4. RESPECT: Respect others, make every effort to understand each other, take responsibility and do your best to build mutual trust. Respect for Stakeholders and community Develop Mutual Trust and Mutual Responsibility Be Sincere, transparent and open in all Communication 5. TEAMWORK: Stimulate personal and professional growth, share the opportunities of development, and maximize individual and team performance. Have Commitment to Education and Development Have Respect for the Individual; Realizing Consolidated Power as a Team
Estimated Time
10 minutes
Topic Objective
To understand the five precepts of TPS. According to Toyota, consistency is central to the success of TPS. Consistency comes from Operational excellence. The operational excellence is based on the quality improvement tools and methods in the TPS:
Topic Summary
1. Challenge (Challenge existing methods) 2. Kaizen (Improve what’s not working) 3. Genchi Genbutsu (go and see for yourself) 4. Respect (Towards employees, Customers, Suppliers, Community) 5. Teamwork (Stand together undivided)
Materials Required
Handout: My Improvement Plan (MIP)
Planning Checklist
Print out one copy of MIP per participant
Recommended Activity
Have participants review their MIP and fill out the information based on the 5 precepts.
Delivery Tips
If you handed out the MIP at the beginning of the workshop, this activity
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should go smoothly. Review Questions
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Does your MIP pass the check point questions?
Module Two: Review Questions 1) Six sigma equates to: a) b) c) d)
1.4 DPMO 2.4 DPMO 3.4 DPMO 4.4 DPMO
2) Which letter is used Sigma capability? a) b) c) d)
S C Y Z
3) Which of the following actions is not so typical for the lean process? a) b) c) d)
Eliminating waste Eliminating people Reducing costs Shortening time cycles
4) Which of the following is not an example of lean process? a) b) c) d)
Reduced inventory Increasing overall productivity Decreased defects Skipped details in reports
5) Which car company’s production system is related with early usage of ‘lean manufacturing’? a) b) c) d)
Mercedes-Benz Toyota General Motors BMW
6) Besides “The machine that changed the world”, which book also shaped the ideologies of ‘Lean’? a) b) c) d)
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“Lean process” “Lean manufacturing” “Lean thinking” “Lean world”
7) What was the original name of TPS? a) b) c) d)
Just in time production Just right production Just precise production Just appropriate production
8) What is the last step of TPS? a) b) c) d)
Defining value of your product Striving for perfection Making only what the customer orders Studying the flow of your product
9) What does GENCHI GEBUTSU mean? a) b) c) d)
Wait and see Come and see Go and see Look and see
10) Committing to education and development is especially important for: a) b) c) d)
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Respect Kaizen Challenge Teamwork
Do you value practices, or do you practice values? Anonymous Module Three: Liker’s Toyota Way In this module we will look closer at Toyota’s philosophies that have become a spiritual pinnacle of modern manufacturing. “The Toyota Way” is a book about the 14 principles that drive Toyota’s culture. The book was written by Dr. Jeffery Liker, a leading author on lean practices and an expert on U.S. and Japanese differences in manufacturing.
Philosophy Have a Long-Term Philosophy Principle 1: Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.
In Toyota’s vision, the purpose is to work, grow, and align the organization toward a common purpose that is bigger than making money.
The vision instills the importance of generating value for the customer, society, and the economy. The business and its people must accept responsibility for its conduct and continuously improve its skills.
Estimated Time
5 minutes
Topic Objective
To understand that long-term planning and strategizing supersedes shortterm goals. Have a Long-Term Philosophy
Topic Summary
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Principle 1: Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.
In Toyota’s vision, the purpose is to work, grow, and align the organization toward a common purpose that is bigger than making money. The vision instills the importance of generating value for the customer, society, and the economy. The business and its people must accept responsibility for its conduct and continuously improve its skills.
Materials Required
The 4P model
Planning Checklist
Print out one copy of the 4P model per participant
Stories to Share
The philosophy is contradictory to the central profit drivers of Western business and short-term decisions.
Delivery Tips
Encourage the group to share the experiences they’ve had with short termdecision based leadership.
Process Principle 2: Most Business Processes are 90% Waste and 10% Value-Added Work.
Create continuous flow and a process flow to bring problems to the surface.
Work processes are redesigned to eliminate waste (Muda).
Strive to cut back to zero the amount of time that any project is sitting idle or waiting for someone to work on it.
The Heart of One-Piece Flow is called Takt Time (Rhythm in German) “The rate of Customer Demand.”
Principle 3: Use a pull system to avoid overproduction.
Provide your customers with what they want, when they want it, and in the amount they want.
Minimize your work in process and warehousing of inventory by stocking small amounts of each product and frequently restocking based on what the customer actually takes away.
The Toyota Way is not about Managing Inventory, it is about Eliminating It.
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Principle 4: Level out the workload (Heijunka).
Work like the tortoise, not the hare. This helps achieve the goal of minimizing waste (Muda), not overburdening people, or the equipment (Muri), and not creating uneven production levels. (Mura).
Level out the workload as an alternative to the stop and start approach of working on projects in batches that is typical at most companies.
Principle 5: Build a culture of stopping to fix problems, to get quality right the first time.
Build into your equipment the capability of detecting problems and stopping itself. Any employee in the Toyota Production System has the authority to stop the process to signal a quality issue.
It is OK to stop or slow down to get quality right the first time to enhance productivity in the long run.
Principle 6: Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.
Although Toyota has a bureaucratic system, the way that it is implemented allows for continuous improvement (Kaizen) from the people affected by that system.
Principle 7: Use visual control so no problems are hidden.
Included in this principle is the 5S Program - steps that are used to make all work spaces efficient and productive, help people share work stations, reduce time looking for needed tools and improve the work environment: Sort: Sort out unneeded items Straighten: Have a place for everything Shine: Keep the area clean Standardize: Create rules and standard operating procedures Sustain: Maintain the system and continue to improve it Principle 8: Use only reliable, thoroughly tested technology that serves your people and processes.
Use technology to support people, not to replace people. Often it is best to work out a process manually before adding technology to support the process.
New technology is often unreliable and difficult to standardize. A proven process that works generally takes precedence over new and untested technology.
Conduct actual tests before adopting new technology in business processes, manufacturing systems, or products.
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Reject or modify technologies that conflict with your culture or that might disrupt stability, reliability, and predictability.
Estimated Time
10 minutes
Topic Objective
To understand that production is a systematic process which is continuously improved, monitored, and standardized. The Right Process Will Produce the Right Results
Topic Summary
Principle 2: Create a continuous process flow to bring problems to the surface.
Principle 3: Use a pull system to avoid overproduction.
Principle 4: Level out the workload (Heijunka). (Work like a tortoise not the hare.)
Principle 5: Build the culture of stopping to fix problems to get quality right the first time.
Principle 6: Standardize tasks are the foundation for continuous improvement and employee empowerment.
Principle 7: Use visual control so no problems are hidden.
Principle 8: Use only reliable, thoroughly tested technology that serves your people and processes.
Materials Required
The 4P Model from the previous exercise.
Planning Checklist
Print out one copy of the 4P model per participant Put emphasis on the 5S
Recommended Activity
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Sort: Sort out unneeded items
Straighten: Have a place for everything
Shine: Keep the area clean
Standardize: Create rules and standard operating procedures
Sustain: Maintain the system and continue to improve it
Delivery Tips
Encourage group to share how 5S is being used in their work place.
Review Questions
What is meant by 5S?
People and Partners Principle 9: Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
The principles have to be engrained; it must be the way one thinks. Employees must be educated and trained: they have to maintain a learning organization.
Grow leaders and develop role models from within, rather than buying them from outside the organization.
A good leader must understand the daily work in great detail so he or she can be the best teacher of your company’s philosophy.
Principle 10: Develop exceptional people and teams who follow your company’s philosophy.
Success is based on the team, not the individual. Teamwork is something that has to be learned.
Principle 11: Respect your extended network of partners and suppliers by challenging them and helping them improve.
Toyota treats suppliers much like they treat their employees, challenging them to do better and helping them to achieve it.
Have respect for your partners and suppliers and treat them as an extension of your business.
Challenge your outside business partners to grow and develop. It shows that you value them. Set challenging targets and assist your partners in achieving them.
Estimated Time
5 minutes
Topic Objective
To understand how Toyota grows its people and extends its philosophy to its partners and suppliers. Add value to the organization by developing your people and partners
Topic Summary
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Principle 9: Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
Principle 10: Develop exceptional people and teams who follow your company’s philosophy.
Principle 11: Respect your extended network of partners and suppliers by challenging them and helping them improve.
Materials Required
The 4P Model from the previous exercise.
Planning Checklist
Print out one copy of the 4P model per participant
Delivery Tips
Discuss how partners and suppliers are currently being involved in the organizations of the participants.
Problem Solving Principle 12: You need to go and see for yourself to thoroughly understand the situation (Genchi Genbutsu). Principle 13: Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly (Nemawashi). The following are decision parameters:
Find what is really going on; go and see to test
Determine the root cause
Consider a broad range of alternatives
Build consensus on the resolution
Use efficient communication tools
Do not pick a single direction and go down that one path until you have thoroughly considered alternatives. When you have picked, move quickly and continuously down the path. Principle 14: Become a learning organization through relentless reflection (Hansei) and continuous improvement (Kaizen). The general problem solving technique to determine the root cause of a problem includes:
Initial problem perception
Clarify the problem
Locate the area or point of cause
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Investigate root cause (5 whys)
Countermeasure
Evaluate
Standardize
Once you have established a stable process, use continuous improvement tools to determine the root cause of inefficiencies and apply effective countermeasures.
Estimated Time
10 minutes
Topic Objective
To understand that finding the root cause is central to achieving zero defect manufacturing. Continuously solving root problem drives organizational learning
Topic Summary
Principle 12: You need to go and see for yourself to understand the situation (Genchi Genbutsu).
Principle 13: Make decisions slowly by consensus, thoroughly considering all options, implement decisions rapidly.
Principle 14: Become a learning organization through relentless reflection (Hansei) and continuous improvement (Kaizen).
Materials Required
Handouts: The Five Why’s Example & The Five Why’s Form
Planning Checklist
Print out one copy of the 5 Why’s-set per participant Have the group review the first example of 5 Why’s.
Recommended Activity
Then instruct to the group to review their MIP’s and applying the same method, try using the 5 Why’s to identifying a root cause for the problem in their MIP.
Stories to Share
Toyota managers are expected to "go-and-see" operations. Without experiencing the situation firsthand, managers will not have an understanding of how it can be improved.
Delivery Tips
By applying the 5 Why’s we identify the real root cause. The error is not always where it seems!
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Module Three: Review Questions 1) How many principles are in Dr. Jeffrey Linker’s book “The Toyota Way”? a) b) c) d)
6 7 10 14
2) In Toyota’s vision, what’s the most important thing for a company’s philosophy? a) b) c) d)
To be original To be verified To be long-term To be safe
3) According to 3rd principle, what kind of system should you use to avoid overproduction? a) b) c) d)
Push Pull Drag Scratch
4) According to 7th principle, what kind of control should we use to make all the problems visible? a) b) c) d)
Digital Classical People Visual
5) According to 4th principle (Heijunka), we should work like: a) b) c) d)
Ants Bees Turtles Rabbits
6) Which principles refer to people and partners? a) b) c) d)
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1, 2, 3 5, 6, 7 9, 10, 11 12, 13, 14
7) According to one of the principles, how do you respect the extended network of partners and suppliers? a) b) c) d)
By awarding them By criticizing them By including them in more company’s activities By challenging them
8) Which of the following is not necessary for a good leader? a) b) c) d)
Understanding the work Leaving the philosophy ‘Teaching’ that philosophy to others Upgrading that philosophy
9) What are the last principles related to? a) b) c) d)
Problem solving Profit Management Personal development
10) What is Kaizen? a) b) c) d)
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Continuous work Continuous problem solving Continuous improvement Continuous earnings
END OF FREE PREVIEW FULL WORKSHOP AVAILABLE EXCLUSIVELY AT:
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