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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

[email protected]

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


PRESENTATION OUTLINE

1.) Lean Concepts Review

2.) Lean Culture and Necessity

3.) Toyota Way Concepts and Practices

3


Lean Concepts Review

4


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 >


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


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


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


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


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 )


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)


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


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


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


= 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


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


• 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)


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


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 and Necessity

20


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?


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


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


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.

24

Kiichiro Toyoda

Grandfather of

current president

Signing ceremony

Source : http://www.toyota-global.com/company/history_of_toyota/ and others

Good Thinking,

Good Products

http://www.toyota-global.com/company/history_of_toyota/




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


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


Process & Result Relationship

27

Bad Good

Good

Bad

Process

Results

Which one do you prefer between and ?

A?

B?

A? B?


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.



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



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



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


“ 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


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


Toyota Way Concepts

and Practices

34


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


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 ..


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.


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


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


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


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


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

http://www.google.co.th/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://queaprendemoshoy.com/metodos-de-produccion-en-la-industria-del-automovil-el-metodo-toyota-ii/taiichi-ohno/&ei=MAIhVfGRENC_uASLioHgBw&bvm=bv.89947451,d.c2E&psig=AFQjCNEHbyLQ7V4ireaL90BuDZnVGFNLTA&ust=1428312883660645


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


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


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


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


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


EXPERIENCES SHARING

1.) Challenge

48


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.


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

250

300

350

'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% !


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


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


Hoshin

Kanri

Process

Draft

Corporate

Policy

Final

Corporate

Policy

Sub

Sub-Division

Hoshin

Department &

Section Hoshin

Vertical

Alignment

Horizontal

Coordination


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


2.) Kaizen

55


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


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


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


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


3.) Genchi Genbutsu

60

Genchi = On the spot, actual place

Genbutsu = Actual thing


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


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


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


4.) Respect

64


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”


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


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”



• 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



• 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


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


5.) Teamwork

71


- 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


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


One page document (A3) / Project at a glance

Background

Current

Condition

Goals/Targets

Analysis

Countermeasures

Future Stage Map

Implementation Plan

Follow up


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

http://toyotadriverseat.com/pr/tds/artwork/1/6/4/9/4/216494/Uchiyamada_Picture_Obeya_visit_2_12.06.jpg


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


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


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)


• 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)


SUGGESTION

How to “CHANGE”

organizational culture ?

80


7 Habits of Highly Effective People Stephen R. Covey

81


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?


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.”


ขอบคณุครบั

กฤชชยั อนรรฆมณี

Kritchai Anakamanee

Lean and Productivity Consultant

e-mail: [email protected]

84

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