Toyota Management System by Takashi Tanaka and Sharon Tanner

Basic Title
© 2011 QV System, Inc. All rights reserved
1
TMSTMS
Toyota Management SystemToyota Management System
Takashi Tanaka
Sharon Tanner

Basic Title
2
History of Toyota
1950 1990
Lean introduced in
Western corporations
Sales
2010
TPS
• New Leader set vision
& clear target
• Visualization & Oobeya
• Globalization
• Quality into Process
• Multi skilled engineers
W
orked
and
developed
tools
Increase outside
of Japan

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3
Uesugi Youzan (1751-
1822)
1700 1800 1900 2000
Ninomiya Kinjiro (1787-1856 )
Toyoda Sakichi (1867-1930 )
Ohno Taiichi (1912-1990 )
Roots of Toyota
Show them, tell them, have them do it,
and then praise them.
Focus on people.
Toyota WayFamous governor
J.F. Kennedy
respects

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4
Toyota Way
• Externalized Rule and Principle of Toyota in 2001
• Preparation for more globalization
• Challenge
• Improvement
• Genchi, Gembutu
Continuous Improvement
• Respect
• Teamwork
Respect for People
Principle of
TOYOTA
Toyota Way

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5
Output Definition
Σ
i=1
n
i
Output = (Person) x
i
(Ability) x
i
(Motivation)
Total number of employees n = Workers + Staff
By the improvement
activity

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6
Toyota Management System
TMS (Toyota Management System)
TDS (Toyota Development System)
Total TPS (Total Toyota Production System)
TMSS (Toyota Marketing & Sales
System)
Design
Engineering
Production
TPS
Marketing
Concept
Marketing Design
Production
Concept
Product
Concept
TDS
TMSS
TMS
Production
Design
Sales, After sales
and CRM
Total TPS

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7
TMS Tools
TDS
Development
System
TMS
Management
System
TMSS
Marketing
& Sales
System
Total
TPS
Production
System
Oobeya

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Difficulty of Implementation
Rate of
improvement
Time
Toyota Japan
Toyota USA
Western
Background
- The use of tools has improved factories
- Knowledge work areas has been more difficult
- Most managers do not advance to the implementation
of Toyota Management System
Problem

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9
Do we understand each other?
Western
Toyota
Think
Do
Do
Think
• Genchi
• Gembutsu
What is the
goal?
Continue
PDCA
Cycle
Finished!

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10
Do we understand each other?
Work
Culture blocks understanding of Principles,Culture blocks understanding of Principles,
Rules and management.Rules and management.
Tools
Rules
Principles
Japanese Culture
Toyota Culture
JapaneseCulture
ToyotaCulture
OtherCulture
?Management Western

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11
Procedure to Implement
4 4 4
Self
Sustaining
New Working
Culture
Higher Perspective
Visualization
18-months
Tools
Management
Kick
-off
LfL Studio
6
Tools
•TMS
• TDS
• Total TPS
• TMSS
• New role
• Accountablity
• Working habit
• Oobeya
• Visual board
Using both Tools (Method-side) and Management (Human-side),
we can create sustained improvement.

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12
Issue Board: Panel
•Project Background
•Project Objective
•Technical Spec
•Project Organization
Potential Real Finish Record
Design
Engineering
Production
Marketing
Objective Metrics
Weight
Cost
Capital
Targ
et
1 2 3 - 12
Targ
et
1 2 3 - 12
Decomposition
Area
Issue Board
GoodGood
Expected Output
Concurrent Schedule
Jan Feb Mar ---Dec
Action Board
Design
Engineering
Production
Marketing
Service
Projector
for Virtual
Design
Review or
meeting
Expected Output
Prototype
R & D
Main Board
2-issues
per week
Oobeya: Big Project Room
•　 Progress
check, only
Green & Red
• All related members,
Planning, Design,
Production and Sales
& Marketing
•　 Identify issues
for management
decisions
Today
New
concept
Drawing
delay
Line A
Improve
3/5
Supplier
select4/3 Supplier
select4/3
Supplier
select4/3

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13
Visualization
Hierarchy—3 levels only
Oobeya: Hierarchy with Flow
Visualization of GEMBA (Work place)
Executive
(Main) Board
Decisions
Targets
Metrics
Policy
Escalate two
decision-ready
issues per
meeting cycle
Escalate two
decision-ready
issues per
meeting cycleGlobal
development
core team
Clinical Regulatory CMC - - -

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14
Increase
Before
Now
Ideal
Improve
ment
Improve
ment
Daily Work
(Meeting, Decision
making, Team
management, etc.)
Daily Work
(Meeting, Decision
making, Team
management, etc.)
Trouble shootingTrouble shooting
Improvement
(Product, Process and
Personnel development)
Improvement
(Product, Process and
Personnel development)
Daily WorkDaily Work
生産稼働維持生産稼働維持
Effective and
Efficient
Decrease
Role of Managers
 Manager: use more than 50% of time
on improvement work.

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15
CE
Chief
Engineer
CE
Body
----
VP Marketing &
Sales
Chassis
VP Engineering
Cost Quality Delivery
Prius
-20% DOK
80%
On time
Dec 15
Corolla ---
VP Production
VP Strategy
CEO
Chief Engieer of Toyota
Under
-10%
DOK
90%
1st
proto
May 1
Matrix & Metrics
Target break down
Only one VP to
manage all Chief
Engineers and
functions
CostReductionCommittee
New navigation system committee
Platform Standardized committee
Executives lead
cross-functinal
committee. . .

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16
Sales
Profit
4 5 6 7 8 9 10 11
Target
Actual
Achievable
4 5 6 7 8 9 10 11
Target
Actual
Achievable
4 5 6 7 8 9 10 11
Target
Actual
Achievable
Weekly
Actions
Schedule 2009
Jan Feb --- Dec
Issue
Board
Cost
Productivity
Quality
Deliver
Product
Product A
Product B
- - -
Clear Targets Drive Results
Improve
-ment
Planning
R&D
Production
Marketing
Sales
HR
Target
this year
Current
Status
Suitable
Target
Gap
Only 3-5
focused
metrics
Clear and
concise
activity and
action
Only
decision
ready issues
Oobeya creates a more action-oriented organization.
1. Improve
products A
2. Experimental
process
- - -

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17
Brain Activity
E-mail Phone
Dialog
Oobeya
Communication Support tools
Individual MASS

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18
Process 1 Inspection
No
defect
DeliveryProcess 2
No
defect
Process 3
No
defect
Process 4
No final inspection!!No final inspection!!
Concept of “Quality into Process”
Occurrence prevention
Outflow prevention

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19
5. Improved
Design Review
• Gate DR
• Collaborative review
• Open/closed issues
Outflow prevention at each gate
4. Quality assurance
• Sustain standard work
• Support improvement activity
6. Check sheet
• Front page, Whole process
• Back sheet, a part or a processRem: Fo llo w up late r it ems is e sta blish an ot her f ile , G M ch ec ks w e ekly.
Design Check Sheet
Eng Ty pe Parts# De part R Ｇ
Fac tor y Car Typ e Name O uts ide des ign re qu est #:
Dis tr ibut e Ot he r Ot her De sign ch an ge #:
Reque ste d s ec tion Docu me nt, Memo CEa gr ee GM L ea de r Esta blish
Or der Fina l
M D M D M D M D
Plan n ing Cost Es timat ed Weigh t min min min In sp ect drawin g
Drawi ng 　 Purchas e, Fin
Cha ng e dr awin g 　 Cos tPlanning Y - N Y - N Y - N wi th l ea de r
Outsi d e de si gn $ 　 Outside g Final aud it of d ra w ing
Rec og ni ze d draw ( + - %) 　( ) (+ - %) 1. No pr ob lem
Other s Backgr ou nd , Ob je ct iv e 2. No conf irma tion , b ut n o pr oble m
　　Changespec 　　Comm onaliz ation　　　Reduc eweight 3. The re is is su e, b ut go
Dur a bilit y, Re lia bility c he ck 　　Research 　　Performance 　　　Produc tivity 　　 Wh at is iss ue ?
Item C ount Chec k 　　VA,VE 　　SolutionofIss ue　　　Servic eefficiency
　　　Others
Con tinu e h i-s pe ed Expla in :
Ifit needed, Full th ro ttle U/ D Conten ts of ch an ge , Pr ob lems by GM Atta ch men t Plann ing fig ur e
dis tributeto L ow s w ee p U/D Eng ine erin g c he ck s he et
produc tion Tota l pa tter n Object iv e, re as on by GM Re qu ir e ds pec ific ation
engineering Tota l tem per a tur e 　　Perfor mance 　　SolutionofIss ue 　　 NVimprove　　contactis sue 　　O thers ( 　　　　　 )
ofeachfactory L ow t emp er atu re 　　Request fr om others (CE ,Produc tion)　　Comm onalization 　　Serv ic eefficienc y 　　Reduce weight
Ex m ain t emp . 　　Costr educ tion 　　SOC problem　　Others ( )
L ong d rive
Ham mer ing Conten ts of ch an ge 1.SO Pphas e
Str es se s 2.Targetcost
Res on an ce 3.Cur rent
Dirt co ur se 4.Supplieres tim ate
Hi-s pe ed re lia bility 5.Gap
Hea t t est Anxiou s b y cha ng e Co un ter me asu re 6.Countermeasure
Bod y tes t Pr o toty pe
CAE Str ess 1.Partsc ost
2.Mold
3.Total
Reflec t f or te st ( Le f t ta ble) Re fle ct to p ro du ctio n W eigh t
1.SO Pphas e
2.Targetcost
3.Cur rent
4.Supplieres tim ate
Ifnecess ary 5.Gap
internally, L ate r Re co gn iz ed dr awin g Pla n ( / ) Plan ( / ) 6.Countermeasure
OR Follow up ( Y - N ) M D M D M D M D
Copy 　N Che ck gr ade Che ck Che ck
Engineer　１
２GY　　１ No i ss ue : ++ 　 Re gul a ti o n ch eck req uir e (Y - N) Co nf irm wi th Materi al de p: rub be r, pl as ti c, pa in t
No gu es si ng is su e : + Acc ep ta nc e fo r F/R, F/F Ge ne ra l na me o f mate ri al( 　　　　　　　　　)
Gue ss in g i ss ue : - Parts lis t of OBD(On -b oa rd d i agn os i s) As se mbl y an d se rv ice (Li n e to ol s, se rv ic e man ua l )
No co un te rm eas ure: -- 　 Safety i ss ue (FH, Cra sh , OR, Lea k) Ro w mat eri al, p ro ce ss wi th pro d. Eng & su pp li e r
Not a cc ep t: Bl an k Con fi rmat ion En gi ne eri ng c he ck s he e t Co nf irm gu idel i ne o f p arts fi tt ing (Inter nal E2 -1 4)
In cl ud ing al l PPC i te ms 　　Dr awin g: pa rts tabl e , re qu es t, labe l
Th e ca s e of -an d --, Sati sf ie d req ui re d fu nc ti o ns b y re li a bi lity ma tr ix 　　Ch an g e Drawin g: o ld pa rts ,ov erse a,
Wri te fo ll o wup d at e Kee p de v el o pme ntta rge tb y ju sti fi c atio n ch ec k she et 　　Pa rts tab le :Sa fety ,r eg ula tio n ,ma ker opti on
Con fi rmed b y co ntro l de si gn in fo rm atio n ma tr ix 　　Pa tten t:req ue sted (Y N),Fa ll faul t (Y N An al y )
Imp le me nt DRBFM De l iv er y lo ca ti o n, c ha nge ( )
Prohi b ite d de si gn c ha n ge ,co nf irme d by rea l p arts En v iro nme ntal c on dit ion &i nf lu en ce
　 Con fli ct o fp a rts ,d is ta nc e, s la ck ,f as te ne d, s eal 　Oi l, water &ga s te mpe ra ture ,f ro ze n, fu el, e tc
　　　Cau lki ng , we ld ,p re ss, i nse rt ch ok ing
Inf o rma tion Ro ll ou t ot her m ode l(Y N) , In flu enc e oth er or ga niza tion (Y N), inf or med (Y N):
L ead er c omme nt s:
Total
#1 :Ea ch en gine & u sing area ha s t emp late 　 Che ck s ub -d es ig n ch ec k sh eet of b ac k si de
(Revis ed' 05June) #2 :Att ach e ngin eer ing ch ec k sh ee t
Co st
Item Item
Face Engine
Related
Final
Order
Rou te: Des ig n ro om - > Man ag er -> ea ch CE
2- co py fo r gr ou p
7. Feedback sheet
• Lesson and learn
from past projects
1. Management
• Policy deployment
• Target and Metrics
• Long-term planning
• Daily implementation
• Issue board for unexpected problems
Oobeya for project
3. Standard Work
• Design standards
• Process standards
• Structured template
Production DeliveryPlanning Design Test
Occurrence prevention
2. Education/ Training
• Knowledge management
• Multi-skilled engineer
• Supplier training
“Quality into Process” tools
Target:
- Right on time
- Right first time
Front loading tools

Basic Title
20
Another Company
TOYOTA
Project leaders
- Problem solving
- Decision making
DR-1
2-hours
1 month
3-6 months
All related project
members
Internally prepare, sub-system
DR-1
>1 day
Internal
Meeting
1-hour
Internally prepare Internally prepare
Internally prepare
Marketing
Many long meetings
- Just shared issues
- No problem solving
Engineering
Internal
Meeting
1-hour
Supplier
Internal
Meeting
1-hour
Test
DR-2
1-hour
Comparison of Design Review
All related project members
Many meetings with subset of project members

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21
cess Metrics: Design Completion
# of Issue
Solved
Opened
Solved
Opened
Hold
original date
Plan -> Development -> Delivery
Plan -> Development -> Delivery

Basic Title
22
Key Points of 5-Why Procedure
What
Happened
1
Why?
Issue or
Problem
Select themes to
implement 5-Why
-Small or big hitter become
same countermeasure
-Quickly select, implement
immediately
To get root cause, 5Why
2
Why?
3
Why?
4
Why?
5
Why?
Feedback sheet
Counter-
measure
Oobeya Board
3
Why?
4
Why?
5
Why?
4
3
5
6
7
8
9
Key points to implement
1. Include 3 participants from
different organizations (ideal).
2. Train facilitator beforehand.
3. Describe issue simply (only
one theme per answer).
4. Be “specific”: 1st
question is
very important.
5. Stick to facts, don’t think
about solution (if you don’t,
you may skip an important
cause).
6. Stop when the 5-whys are
complete or answers are
mature.
7. Start new 5-why if you have
multiple “because” answers.
8. Close “because” branch if you
reached an answer during
another why branch.
9. Identify countermeasures at
each level of why (pick the
best).
10. Relay findings to all members
(like natural story and not
from bottom to top).

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23
Selecting ”Right” Person for ICs
 Technical strength
 Success in leading large projects
 Influence at the executive level
 Strong collaborative skills
 Real network within the organization

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24
LfL Studio to develop IC
1. QV&TEC’s role is to develop IC.
2. IC exercises Kaizen with own team.
3. IC develops Kaizen Leader (KL) with support of QV&TEC.
4. KL develops own team / other team.
LfL Studio for Senior / Organization IC
・
・
・
Own team
QVS & TEC
IC
IC
QVS & TEC & IC
Own team / other team
K/L
K/L Team
Team
Team
IC Target level 3 - 4
1.5 days/mo
…
LfL Studio for Kaizen Leader
Kaizen
Leaders
exercise
1. 2.
3. 4.

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25
To achieve
target
IC Support & Development Tools
Basic project plan
IC Field Book: 250-p.
LfL Skill map:5--gradesTMS Tools:92
Progress auditProgram,
Project
Function
Support
Introduction Guidebook:
by IC
Visual Board
SharePoint
LfL
Studio
BackgroundObjective Policy Team
Target Action KPI Schedule
KGI KGI GraphKPI Graph
Theme : XXXXXX

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26
Progress Check Sheet
Progress Check Sheet: Oobeya/ Project room Section: Date:
1 2 3 4 5 Total
Summary by Project
Leader
Progress chart
Measurement
metrics
Indication of
priority with
green & red
mark
Connection
with Total R&D
Member's
consistent
check
Objective, Target
Attached
suitable
contents
Shared with all
members
Break down to
sub-system
Logical link
and connection
Consistently
update with
related
documents
Expected Output
Visualized with
drawing etc.
Shared with all
members
Issues &
countermeasur
es are clear
Decomposition
of critical part
IT based
screen
Metrics
Selected
prioritized
metrics
Clear
indication with
same format
Update all
results
regularly
Priority marks
Forecasted
line with
scenario
Decomposition /
Scenario
Indication of
current hot
topics
Connection
with other
board
Scenario chart
for difficult
issue
Connection
with
quickening
action
Arriving at 5-
why level
Real products or
model
Inside a project
room, is it real
products
Some
decomposition
parts
DR in the
project room
Virtual tools
Integration and
Standard
Quantity Concurrent Schedule
At earlier
phase, join all
related
member
Due date and
milestone with
output /
Process
Improvement
Capturing
delay &
change for
review
Sub-systems
are
spontaneously
breakdown
Connection
with sub-
system
schedule
Issue flow Kind etiquette
Select 2-
issues are
smooth activity
Contents &
Countermeasur
e are mutually
kind
Spontaneous
attitude for
solution
Potential issue
is proactively
capture
From record,
issue moving
for PDCA
process
Human-side Meeting
Agenda &
schedule
Explain
effectively and
efficiently
Kindly support
leader & other
member
Front loading
considered
opinion
Conscious of
new role &
responsibility
Display
Visual Control
Level1
Visual Control
Level2
Quickening
Visualization
Level1
Quickening
Visualization
Level2
Visualization
Total Grade
Category
Quality
Example of Check Sheet: Project
• Executive (Main) Board
• Project
• Team
• TDS

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27
Maximizing Value for Millennium
 Select and train internal consultants (ICs)
to lead implementation
 Incorporate a journey-approach to training
by creating an LfL (Lean for Leaders)
Studio
 Create infastructure to support ICs
 Institute a disciplined approach to progress
checks for teams and ICs

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28
Summary
Clear, focused targets will empower teams and
drive accountability
Deep reflections and strategic planning will
improve long-term success
Visibility of knowledge work & metrics will
foster continuous improvement
Standard work and disciplined process
approach enhance quality improvements
IC development will ensure a self-sustaining
lean culture within Millennium

Toyota Management System by Takashi Tanaka and Sharon Tanner

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