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Dr. C. W. Richards 1/12/99
John Boyd and the Toyota Production System
• This might seem like and odd topic. After all, nowhere in the many descriptions of the TPS are OODA loops mentioned, and I don’t think John ever even owned a Toyota. • On the other hand, he did devour the translations of Taiichi Ohno and Shigeo Shingo and freely acknowledged that they drew from many of the same sources as he did—the strategic tradition that includes Sun Tzu’s Art of War and Musashi’s Book of Five Rings. • Most important, the TPS represents a spectacularly successful confirmation of the preeminence of time, a fact explicitly recognized by Toyota itself and a main theme of Boyd’s theory of competition.
Dr. C. W. Richards 1/12/99
To paraphrase Tom Peters’ “Turn Manufacturing into a Marketing Weapon,” a chapter in Thriving on Chaos
Dr. C. W. Richards 1/12/99
Richards 1/12/99 Industrial Blitzkrieg 4 . W. C.Manufacturing as a Competitive Weapon • Shorter throughput (order to delivery) • Lower costs • Higher quality • More flexibility Dr.
C.The Strategy Toyota Motor Company. 2 Dr. Toyota Production System. Richards 1/12/99 Industrial Blitzkrieg 5 . W. p.
W. Richards 1/12/99 Industrial Blitzkrieg 6 . C.The Plan Why Toyota? Dr.
C. and faster development & production times will increase sales. you may need to •Reduce people at all levels in the organization Over time.Cost reduction is the goal “Cost Reduction Is the Goal” “Cost Reduction Is the Goal” There are two ways to increase efficiency: 1) increase production quantity or 2) reduce the number of workers—Taiichi Ohno. Dr. W. Why? In the short term. Richards 1/12/99 Manufacturing as a Competitive Weapon Industrial Blitzkrieg 7 . lower costs. higher quality.
as result of improvement. but if you eliminate people Reducing costs means reducing people. W. C. eliminating wasteful and meaningless jobs enhances the value of work for workers. Dr. On the other hand. you will get no more improvement. you will get no more improvement. Hiring people when business is good and production high just to lay them off is a bad practice. Taiichi Ohno.A Lean Paradox (Just One of Many) Reducing costs means reducing people. The Toyota Production System clearly reveals excess manpower… Management’s responsibility is to identify excess manpower and utilize it effectively. but if you eliminate people as aaresult of improvement. Richards 1/12/99 •Resolve how to maintain mutual trust while reducing people Industrial Blitzkrieg 8 .
W. sell lean/TPS as the solution •Hire a sensei & retain design talent •Establish targets •Resolve how to maintain mutual trust while reducing people •Give preliminary thought to supplier issues •Consider the competitive environment Design The Manufacturing System •Identify the customer base and product range •Identify takt time & its range •Apply axiomatic •design axiomatic Apply to create the basic factory design to create system factory the basic system •Eliminate nonessential infrastructure and layers above the factory floor Establish Flow Establish Flow Within Cells Within Cells •Form cells based on takt time •Define standard work content for each operation to be < takt time •Separate worker from machine (jidoka) •Develop quick setups & standard WIP (SMED) •Standardize operations Establish Pull Establish Pull Between Cells Between Cells •Design an information system to produce only the products required by the downstream cells •Incorporate takt time to drive flows •Institute leveled production (heijunka) •Use visual control systems •Implement total productive maintenance Strive For Perfection •Institute kaizen & institutionalize 5Ss throughout organization •Transfer ownership of all processes to work force •Push lean down to suppliers •Integrate product development •Reduce people at all levels in the organization Manufacturing as a Competitive Weapon (Hit any key/left mouse button to continue) A TPS Glossary Dr.” Toyota takes to convert customer orders into deliveries.” Toyota Motor Corporation. 1992 Motor Corporation.Implementing the TPS All activities must support the goal of “shortening the time it All activities must support the goal of “shortening the time it takes to convert customer orders into deliveries. 1992 Develop A Lean Strategy •Create a sense of urgency •Throughout the enterprise. Richards 1/12/99 Industrial Blitzkrieg 9 . C.
” Toyota Motor Corporation.” Toyota takes to convert customer orders into deliveries. W. Richards 1/12/99 10 . sell lean/TPS as the solution sell lean/TPS as the solution •Hire a sensei & retain design talent •Establish targets •• Resolvehow to maintain Resolve how to maintain mutual trust while reducing mutual trust while people reducing people •Give preliminary thought to supplier issues •Consider the competitive environment Design The Manufacturing System •Identify the customer base and product range •Identify takt time & its range •Apply axiomatic design principles •Apply axiomatic to create the basic design to create factory system the basic factory system • Eliminate nonessential infrastructure and layers above the factory floor Establish Flow Within Cells •Form cells based on takt time •Define standard work content for each operation to be < takt time •Separate worker from machine (jidoka) •Develop quick setups & standard WIP (SMED) •Standardize operations Establish Pull Between Cells •Design an information system to produce only the products required by the downstream cells •Incorporate takt time to drive flows •Institute leveled production (heijunka) •Use visual control systems •Implement total productive maintenance Strive For Perfection •Institute kaizen & institutionalize 5Ss throughout organization •• Transfer Transfer ownership of all ownership of processes to work all processes to force force work •Push lean down to suppliers •• Integrateproduct Integrate product development development •Reduce people at all levels in the organization Manufacturing as a Competitive Weapon jump Hot buttons A TPS Glossary Industrial Blitzkrieg Dr. 1992 Develop A Lean Strategy •Create a a sense of urgency •Create sense of urgency •• Throughoutthe enterprise. 1992 Motor Corporation.Hot Button Excursions All activities must support the goal of “shortening the time it All activities must support the goal of “shortening the time it takes to convert customer orders into deliveries. C. Throughout the enterprise.
Richards 1/12/99 Industrial Blitzkrieg 11 . Patton Dr. A smooth flow of production and continuing improvements can support tremendous gains in productivity and product quality.We strive continuously to find and implement ways to shorten that (order-to-delivery) sequence and to make it flow even more smoothly. W. simplicity. Toyota Motor Corporation Success in war depends on the golden rules of war: Speed. and boldness. C.
and boldness. Toyota Motor Corporation Success in war depends on the golden rules of war: Speed. W. Richards 1/12/99 Industrial Blitzkrieg 12 . C. Patton Dr.We strive continuously to find and implement ways to shorten that (order-to-delivery) sequence and to make it flow even more smoothly. A smooth flow of production and continuing improvements can support tremendous gains in productivity and product quality. simplicity.
C. W. and power Home Dr. Richards 1/12/99 A TPS Glossary Industrial Blitzkrieg 13 . the ancient Eastern concept of harmony. flow.The End Foundations: Zen and the TPS The Toyota Production System follows The Tao (“The Way”).
”— title of a chapter in Tom Peters’ Thriving on Chaos • Companies that are making even a modest profit never use the Toyota Production System…Companies that are doing fairly well become selective (i. Richards 1/12/99 Industrial Blitzkrieg 14 .. in what measures they are willing to take)—Taiichi Ohno • Only the Paranoid Survive—Title of Andy Grove’s (Chairman of Intel) book • Windows (and Microsoft) can be replaced—Bill Gates Back Dr.e. C. W.Create a Sense of Urgency • “Create a Sense of Urgency.
you may be seen as “eliminating people as a result of improvements. p. Welch. Early in his tenure as chairman. this should done in one fell swoop. the Japanese company has only one-eighteenth the number of overhead employees. he had eliminated so many layers and positions that people said the place looked like it had been hit by a neutron bomb . Ideally. W.” Back Dr. 33.” (Stalk & Hout. C. refering to Union Pacific and its president. (Tom Peters. Richards 1/12/99 • • • Industrial Blitzkrieg 15 .Eliminating Non-Essential Layers • Question: Who were the people in those six management layers Mike Walsh eliminated? Answer: The railroad's (and the nation's) best and brightest. Excessive layers are: expensive. slow.the buildings were standing but the people were gone. “With one-third the volume and three times the variety. Crazy Times Call for Crazy Organizations. Otherwise. before other improvements are well underway. 53) Elimination of these layers gives an immediate boost to your efforts to create a sense of urgency. and rob subordinates of initiative. the late Michael Walsh) “Neutron Jack” —nickname for GE Chairman John E.
you make them untrustworthy—Tao Te Ching.Maintaining Mutual Trust • The most important factor is maintaining a relationship of trust between labor and management—Shigeo Shingo • If you don’t trust the people. etc. Richards 1/12/99 Industrial Blitzkrieg 16 . including cost savings: Need to reward people for reducing the number of people at all levels of the organization. W. C. For example. • Implies that the company system needs to reinforce improvements. the top member of that team is removed and promoted or sent for special training. Toyota has created a way to do this. Back Dr. when a team reduces the number of people it needs.
) Back Dr. But it is absolutely necessary. exposed fashion is not easy. Richards 1/12/99 Industrial Blitzkrieg 17 . (Andy Grove. Paranoid. C. exposed fashion is not easy. 157.Selling theTPS The message: • As of this writing (1998). Communicating strategic Resist the temptation to do what’s easy here. W. Communicating strategic change in an interactive. the TPS is the only system that can make major improvements in throughput time and cost and quality and flexibility.) necessary. (Andy Grove. 157. your message will seem like so much hot air … sessions or electronically. But it is absolutely change in an interactive. your message will seem like so much hot air … Resist the temptation to do what’s easy here. Paranoid. simultaneously • The TPS is the only production system with the stated goal of both reducing costs and increasing sales Sales strategy: If your employees don’t have an opportunity to test your thinking in live If your employees don’t have an opportunity to test your thinking in live sessions or electronically.
Richards 1/12/99 Back 18 Industrial Blitzkrieg . 7 Dr. the more inclined they are to pursue improvements in that work—ibid. Toyota Production System. p. p.Transferring Ownership • “Writing the standard worksheet yourself”—title of a section in Ohno’s book • An especially important aspect of standardized work at Toyota is that the employees who implement its guidelines are the same people who establish those guidelines—TMC. W. C. 40 • Experience has proven that the more authority employees have to manage their own work.
minimize the information content. Richards 1/12/99 Industrial Blitzkrieg Implementing the TPS 19 .” Rule: one DP for each FR • Two major axioms: – Independence: Strive for an uncoupled design (maintain independence in the design matrix). which 1) minimizes the opportunities for unexpected system behavior and 2) eliminates need for the extensive optimization required by coupled designs – Information: roughly. AD II Dr.Axiomatic Design I Based on the decomposition of the TPS by Professor David Cochran of MIT • It all starts with our understanding of what the customer will buy (“wants”) • Wants define functional requirements (FR)—the business objectives and “whats”—which are then satisfied by design parameters (DP). C. the “hows. W.
C. For example. Richards 1/12/99 Why AD Industrial Blitzkrieg 20 . W. the following are meant to satisfy the high level FR.Axiomatic Design II • Using the axioms. one can develop a “production system design hierarchy” that proceeds down several levels to the actual machine and operation design • The Toyota Production System guides the decomposition and provides the DPs. “Increase Sales Revenue”: – Mass Production DP: Maximize Production Output – Lean DP: Maximize Customer Satisfaction AD I Dr.
W. including – cell layouts (number. composition. when the components are completed Most important. we can be confident that they will work and linked. Richards 1/12/99 Industrial Blitzkrieg Implementing the TPS 21 . when the components are completed and linked. rate we specified and reap the benefits of the TPS. C. AD II Dr. arrangement) – integration of subassembly flows into final assembly – information systems to link components Most important.Why Axiomatic Design? • Using axiomatic design we can create a topdown blueprint for the factory. we can be confident that they will work together harmoniously to produce our products at the together harmoniously to produce our products at the rate we specified and reap the benefits of the TPS.
” by Allen Ward. 43ff.* • Toyota uses a relatively unstructured development process: its multidisciplinary teams are neither collocated nor dedicated • While conventional concurrent engineering (CE) reduces the number of prototypes. Richards 1/12/99 Back 22 Industrial Blitzkrieg . It is not aacase of removing “non-value-added” activities from aa not case of removing “non-value-added” activities from conventional design process. W. pp.* conventional design process. Sobek II. and Durward K. • Toyota’s development process seems to require about 50% fewer person-years than Chrysler’s LH. Toyota’s suppliers seem to multiply prototypes. Spring 1995. CE seeks to freeze specifications quickly. Christiano. Dr. Jeffrey K. Toyota’s engineers and managers try to delay decisions and provide suppliers with hard specifications very late in the process.Toyota’s own development system is matched to the TPS. John J. C. Liker. It is Toyota’s own development system is matched to the TPS. Sloan Management Review. to an apparently absurd degree • While in most cases. * From “The Second Toyota Paradox: How Delaying Decisions Can Make Better Cars Faster.
Each time.—Tu Mu. The Japanese Art of War. Richards 1/12/99 More Zen Industrial Blitzkrieg 23 .Zen and the Art of Implementing the TPS • As educated Japanese. so they are not aware of the slackness in their minds at the moment.g.” —The Japanese Zen classic. – TPM: He who excels at resolving difficulties does so before they arise. they always think they will have another chance to try again. W.—Taiichi Ohno The End Dr. Sun Tzu’s Art of War • We seek the Way and study it devotedly. canonical commentator on the Taoist classic. – Total elimination of waste: “When people practice an art.. the creators of the TPS were followers of the philosophy/religion known in the West as “Zen” • The fundamental ideas of the TPS have immediate roots in Zen/Taoism e. C. determine that you will settle the matter with this one arrow. Tsurezuregusa – Flow: “Zen Master Takuan’s instructions to the martial artist Yagyu Munenori all hinge on the central principle of fluidity…” —Thomas Cleary.
When her work is done. C. ‘Amazing: We did it. • The whole of the TPS reflects a coherent philosophy about the way the world works. *On the other hand. 500 B.Implications You don’t need to be a Zen master to implement TPS. But compare: – “The paperwork is minimal.C. 1992. • For example. kanban are generally considered just a control mechanism. W. • So. Richards 1/12/99 The End Zen/ TPS Industrial Blitzkrieg 24 . all by ourselves!’” Tao Te Ching. 17. 29 – “The Master does not talk. the people say. And the employees themselves are completely in charge.. The efficiency is maximal. pieces of the TPS taken out of context may not produce the results we want. p. it couldn’t hurt Dr. * However. Toyota Production System. she acts.” Toyota Motor Corporation. c.
are “the mind that does not stick. Zen and Taoism are actually different things (with Zen borrowing heavily from the indigenous Taoism). It stresses harmony and flow and recommends a minimalist approach to management. of course. which is widely studied in Japanese business schools. c. embodies a Zen approach to competition. as applied to the TPS. W. Back Dr. 400 B. Pirsig’s Zen and the Art of Motorcycle Maintenance and Lila. Robert M.C. Book of Five Rings (1645 A.D. Among its fundamental ideas. C.Zen and Taoism in The TPS • • Although this presentation tends to use the labels interchangeably. and Sun Tzu’s Art of War. and implicit communication among individuals. from c. and.. Taoism is an ancient Chinese philosophy dating back (according to legend) to the Yellow Emperor in the 3rd millennium B. The ideal Taoist doctor has no reputation as a healer because there is no disease in his or her area.C. 500 B.C. and came to Japan starting in the 13th Century.). Richards 1/12/99 • • Industrial Blitzkrieg 25 .” objective perception of the world.D. The samurai Miyamoto Musashi’s classic. Zen is a school of Buddhism—originally from India—that arose in China in the 7th Century A. Perhaps the best known Taoist texts to westerners are the Tao Te Ching. More info? The introductions to Thomas Cleary’s The Japanese Art of War and his translation of Sun Tzu’s Art of War (both from Shambhala Press).
Vitality & Growth • As you reduce costs. including employees • Options give the company the means to survive on its own terms.Cost vs. Richards 1/12/99 Industrial Blitzkrieg 26 . W. which rewards shareholders. you create options: – – – – – Lower prices. C. which often lead to higher market share More R & D Growth through acquisitions or diversification Higher investment in training and equipment Greater profitability. even in slow economic times. and grow as the economy recovers Back Dr.
Solves problems inherent in the TPS that can cause queuing and line stoppages. and c are models or products). Richards 1/12/99 Implementing the TPS II Industrial Blitzkrieg 27 . Alternative is “people watching machines work. Implies that machines will stop if an error occurs. Cycle times must harmonize with takt time (which defines balanced production). making level”) production leveling. “factory throughput time. Japanese*. • Heijunka—(fm. all beginning with an “s” sound.A TPS Glossary • 5Ss—five Japanese words. “smoothing. C. which establish the cultural environment for continuous improvement • Cycle time—for a machine or cell.” from the start of production to delivery). “automation with human characteristics”) separation of worker and machine. *Many thanks to Lennart Kampman of the Copenhagen Business School for his translations and interpretations. time from completion of one item to completion of the next. W. Involves producing in sequences like abacababac rather than aaaaabbbcc (where a. Dr. b.” Allows manning of cell to vary with demand. which is the length of time a part is in the cell (also. Japanese. • Jidoka—(fm. Often confused with throughput time. Encourages teamwork and facilitates kaizen.
” goodness. this does not imply that the parts must arrive exactly when needed. Toyota explains that the goal of JIT is “to translate each order into a delivery of a finished.not the zen in Zen. quality vehicle as quickly and efficiently as possible. or radical change. the right parts needed in assembly reach the assembly line at the time they are needed and only in the amount needed. W. May involve work process or machines. Richards 1/12/99 Industrial Blitzkrieg .A TPS Glossary. Other improvement efforts are kaikaku. Ultimate goal is to shorten throughput times and increase the ratio of processing (“value added”) time to total time. which comes from the original Chinese. Implementing the TPS I 28 III Dr. improve and “zen. p. leading to an eventual reduction in manpower. “Chan”) continuous improvement. II • Just-in-time—“In a flow process. Activities carried out by the members of a cell or other unit in order to improve production within that unit.” • Kaizen—(fm. a pull (kanban) system is used. As Ohno explains. modify. carried out under the direction of sensei.” change. 4). Instead. virtue .” (Ohno. Japanese “kai. C.
W. Japanese for “signboard”) Primary means for controlling production in the TPS. C. Kanban are usually cards that the downstream cells take to the upstream cells in order to withdraw (pull) parts. commonly of the martial arts. Richards 1/12/99 Industrial Blitzkrieg . quicker introduction of new models) • Sensei—teacher. used to denote an expert with a track record of implementing the TPS • SMED—single minute exchange of dies. and with more flexibility (variety on the line. • Lean production—producing with a shorter delivery span. Very rapid set-ups so that heijunka sequences can be produced economically Implementing the TPS II 29 IV Dr. III • Kanban—(fm.A TPS Glossary. at lower cost. with greater quality. The upstream cell then uses the kanban as shop orders to replenish just the parts taken.
. as in music) pace of customer demand. and lead time reduction. IV • Takt time—(fm. W. Richards 1/12/99 Industrial Blitzkrieg . These rest on leveled (heijunka) & balanced production. • Toyota Production System (TPS)—only known example of a lean production system. Implementing the TPS III 30 V Dr. C. or shortages & build up of inventory will occur.g. Cycle times of all components of the factory must harmonize with takt time (axiomatic design ensures this). Time to produce one item sold. largely under the guidance of Taiichi Ohno. e. the German for meter or measure. Pillars of the TPS are just-in-time (pull) and jidoka. which depends on reducing set-up times to under 10 minutes (ideally less than 1).A TPS Glossary. The basic form evolved at Toyota from 1948 to 1973. a car every 2 minutes or an aircraft every 8 days.
57) • Visual control—management by sight. The TPS arranges the factory so that abnormalities stand out and so can (and will) be eliminated. by James P. Generally requires operating machines at well under full utilization to allow time for maintenance & modification • Value added—a term used by Toyota only in connection with kaizen. 1996) Implementing the TPS IV 31 Dr. Jones (New York: Simon & Schuster. p. W. Womack and Daniel T. Richards 1/12/99 Industrial Blitzkrieg . V • Total Productive Maintenance—ensuring that machines are 100% available during the production period. where it is generally synonymous with “processing” (see Ohno.A TPS Glossary. More info? Most of these terms are well defined and illustrated in Lean Thinking. C.
Companies using the TPS consistently provide “fresher product offerings that have a higher degree of technological sophistication. it could develop cars in half the time required in Europe or Detroit. other Japanese companies began installing the TPS. Competing Against Time. W. and increasing net asset productivity by an average 50% (Stalk and Hout. Further. IMVP researchers coined the phrase “lean production” to describe the TPS and compiled their findings in the book The Machine that Changed the World. and with one-fifth the defects. November 21. at roughly 2/3 the manhours. which caused a 14.” (Stalk & Hout. 1998) Dr. achieving gains in labor productivity in the 150% range. Richards 1/12/99 • • • Industrial Blitzkrieg 32 . and continued to gain market against rivals in Back North America (New York Times. the International Motor Vehicle Program at MIT documented that Toyota was building cars in roughly half the time. 30) Despite the current Asian economic troubles. 152) By the mid-1980s.4% drop in Toyota’s Japanese car sales. C.What’s So Great About Toyota? • Spurred by the mid-1970s recession. its automobile operations actually increased in profitability.
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