Professional Documents
Culture Documents
Toyota Way Supply Chain
Toyota Way Supply Chain
Jeffrey K. Liker
Professor, Industrial and Operations Engineering
The University of Michigan
and Principal, Optiprise, Inc.
PPM 35%
Inventories -25%
Output/worker 10%
Source: Jeff Dyer, based on 39 supplier plants serving Toyota + U.S. OEM
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Problem
Ge
¾ Continual organizational learning through Kaizen
¾ Go see for yourself to thoroughly understand the situation.
Solving (Genchi Genbutsu)
(Continuous ¾ Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly (Nemawashi)
Improvement and Learning)
rk
Toyota’s
wo
Terms People and Partners ¾ Respect, develop and challenge your people
Te
and teams
ct +
(Respect, Challenge and Grow Them) ¾ Respect, challenge, and help your suppliers
sp e
n
ize
Re
u
u ts
e nb
iG
nch
Problem
Ge
¾ Continual organizational learning through Kaizen
¾ Go see for yourself to thoroughly understand the situation.
Solving (Genchi Genbutsu)
(Continuous ¾ Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly (Nemawashi)
Improvement and Learning)
rk
Toyota’s
wo
Terms People and Partners ¾ Respect, develop and challenge your people
Te
and teams
ct +
(Respect, Challenge and Grow Them) ¾ Respect, challenge, and help your suppliers
sp e
n
ize
Re
Fujio Cho
President, Toyota
Business as Usual
CUSTOMER Waste PRODUCT
ORDER BUILT & SHIPPED
Time
Lean Manufacturing
CUSTOMER PRODUCT
ORDER BUILT & SHIPPED
Waste
Time (Shorter)
© Copyright Jeffrey Liker 2/14/2005
Building Lean Enterprise Excellence
Page 7
INVENTORY HIDES WASTE
SEA OF INVENTORY
LINE LACK OF
QUALITY
LONG IMBALANCE HOUSE KEEPING
PROBLEMS
POOR SET-UP
SCHEDULING TIME
MACHINE LONG
ABSENTEEISM COMMUNICATION
BREAKDOWN TRANSPORTATION VENDOR PROBLEMS 11
DELIVERY
Exposed Waste
“Make Problems Visible”
SEA OF INVENTORY
QUALITY LINE LACK OF
LONG
POOR PROBLEMS IMBALANCE HOUSE KEEPING
SET-UP
SCHEDULING TIME
MACHINE
VENDOR ABSENTEEISM COMMUNICATION
BREAKDOWN
LONG DELIVERY PROBLEMS
TRANSPORTATION 12
The Toyota Production System
Best Quality - Lowest Cost - Shortest Lead Time - Best Safety - High Morale
through shortening the production flow by eliminating waste
Just-In-Time People & Teamwork Jidoka
“Right part, right amount, • Selection • Ringi decision making (In-station quality)
right time” • Common Goals • Cross-trained “Make Problems Visible”
• Takt time • Automatic stops
planning • Andon
• Continuous flow Continuous Improvement • Person-machine
• Pull system separation
• Quick changeover • Error proofing
• Integrated • In-station quality
Waste Reduction control
logistics • Genchi Genbutsu • Eyes for Waste • Solve root cause of
• 5 Why’s • Problem Solving problems (5 Why?)
The focus of
Most
Best Quality - Lowest Cost - Shortest lean
Lead Time - Best Safety - High Morale
through shortening the production flow by eliminating waste
Just-In-Time
programs
People & Teamwork Jidoka
“Right part, right amount, • Selection • Ringi decision making (In-station quality)
right time” • Common Goals • Cross-trained “Make Problems Visible”
• Takt time • Automatic stops
planning • Andon
• Continuous flow Continuous Improvement • Person-machine
• Pull system separation
• Quick changeover • Error proofing
• Integrated • In-station quality
Waste Reduction control
logistics • Genchi Genbutsu • Eyes for Waste • Solve root cause of
• 5 Why’s • Problem Solving problems (5 Why?)
Service Cost
Source: Toyota
© Copyright Jeffrey Liker 2/14/2005
Building Lean Enterprise Excellence
Page 15
Uminger.30
Supplier Partnering Hierarchy
Kaizen &
Learning
Joint
Improvement Activities
Information Sharing
Compatible Capabilities
Control Systems
Interlocking Structures
Kaizen &
z Trust Learning
z Commitment to Co-prosperity
Joint
z Respect for each other’s capability Improvement Activities
z Genchi Genbutsu (actual part, actual place)
Information Sharing
Compatible Capabilities
Control Systems
Interlocking Structures
Information Sharing
Compatible Capabilities
Control Systems
Interlocking Structures
Kaizen &
z Measurement Systems Learning
z Feedback Joint
Improvement Activities
z Target Pricing
Information Sharing
Compatible Capabilities
Control Systems
Interlocking Structures
Kaizen &
z Engineering Excellence Learning
z Operational Excellence Joint
Improvement Activities
z Problem Solving Skills
Information Sharing
Compatible Capabilities
Control Systems
Interlocking Structures
Kaizen &
Learning
z Accurate data collection Joint
and dissemination Improvement Activities
Control Systems
Interlocking Structures
Compatible Capabilities
Control Systems
Interlocking Structures
Average Results
(31complete projects by 1997)
Productivity improvement 124%
Inventory reductions 75%
liker@umich.edu