The Toyota Production System (TPS) -- What Are the Misconceptions?

Earlier this month, Sarah K. Womack published a very interesting new book entitled Toyota's Improvement Thinking from the Inside: From Personal Transformation to Organizational Transformation, which describes how Toyota, through its coaches and leaders, develops its members’ capabilities through a series of continuous improvement (kaizen and problem-solving) activities. For many members of Toyota, this process results in a personal transformation that ultimately leads to organizational transformation.

When I spoke with Sarah this past week, I asked her: "What are the biggest misconceptions about Toyota’s continuous improvement methods and management system?” Here is her complete response:

The biggest misconception I personally had about Toyota’s continuous improvement methods and management system was a degree of personal development and deliberate challenge required to learn how to improve.  It was a journey of mastery of improvement tools, business needs, and how to work with members of your team to accomplish daily objectives.  For most members, that mastery was deeply personal and demanded humility and continuous reflection to transform our mindsets.  And, while there was some talk about Toyota’s philosophy of respect for people, respect is a social construct and difficult to understand from outside of the group.  Once I was inside, I saw how much emphasis there was on reducing team member burden towards the end of reducing waste and creating value for customers. 

More generally speaking of the field, I find many misconceptions about how the entire system works together.  Organizations tend to over-emphasize or de-emphasize the Toyota Production System (TPS) tools for improvement when a successful approach lands at a healthy balance.  The TPS tools are good entry points for people development and continuous improvement.  Value stream mapping, for example, is a tool to chart how material and information flows within a system, show waste, and tell a kaizen story (of waste reduction).  Even if a system is not very complex, learning it through deep study then articulating that learning visually is a special skill set developed over time.  You can feel confident in your skill set when you are able to use such a tool to tell the story of your improvement work.

Finally, I would highlight the misconception around standardization.  Many organizations, within and outside of manufacturing, think it is too rigid to work successfully.  However, Toyota and others have shown that by deeply studying processes and standardizing them, continuous improvements in safety, quality, and other performance outcomes are achievable.

What do you think about Sarah's experience? Has your company implemented a Lean initiative based on the Toyota Production System? Was is transformative?

Your Workplace Culture -- Is It "Sick"?

This month, I had a very enlightening conversation with Robert B. Camp about his most recent book, Workplace Culture Matters: Developing Leaders Who Respect People and Deliver Robust Results. Written in a novel format, this book addresses the challenge of changing  "sick" cultures that exist in many organizations -- That is, it is directed at those organizations that wake up one day and realize they have become something they never intended. Their employees run scared. There is no innovation, only blind obedience. There are warlords within the ranks of management, and they fight over turf without considering the best interests of customers, their employees, or their organization as a whole.

During my conversation with Robert, I asked him specifically: "What are the most common causes of ‘sick’ workplace culture? Here is his full response:

Cultures become sick when leaders no longer care about their people, when they put products, clients, or profit ahead of the vehicle through which they achieve those things: employees (people).

Factories don’t make anything.  They’re just buildings. Machines, including computers, don’t make anything.  Without proper guidance, they are just inanimate objects. 

It is no coincidence that Toyota lists Respect for People among the two factors critical to its success (Toyota-global.com; Toyota Way 2001).   

In Workplace Culture Matters, there is a dialog that takes place that elucidates this concept.  Jim, the VP of Operations for Friedman Electronics, explains the following to Jack, the Branch VP of a troubled organization.

“At Friedman, we believe our future starts with hiring the right people,” Jim explained.  “While there are exceptions, we tend to hire for attitude and train skills."

“Wait,” Jack interrupted, “how do you know you’re getting people who can actually do the job   you’re hiring them for?”

“Good point, Jack,” Jim conceded.  “First, we try to grow talent within, so most of our openings are entry-level.”  

“Also, we have created step-by-step instructions — what is called Standard Work — for all our   jobs, so even if someone had come in already having done that job somewhere else, we’d have to retrain them to do it our way.  We’ve learned that, if we hire self-disciplined people with the right attitude, we can challenge and grow them for the rest of their careers.”

As Workplace Culture Matters makes clear, a healthy culture starts with healthy leaders, leaders who agree to common objectives and hold themselves accountable to them, before they hold anyone else accountable.  They then tailor and cascade those objectives down through the organization as a way of aligning everyone and giving them a way of independently knowing how they are doing.  

Finally, leaders of healthy cultures get out of their offices and go to where work takes place, both as a way of knowing what problems their people face and of engaging in dialogs that build bonds of trust and bi-directional loyalty.

What do think of Robert's view on how workplace culture becomes "sick"? How does the leadership in your organization function? Does it encourage or hinder a healthy culture?

Lean in High-Mix Low-Volume (HMLV) Manufacturing -- Does it Work?

Lean thinking and methodology have resulted in many organizations instituting powerful initiatives and gaining major improvements, but most still associate Lean principles with low-mix high-volume (LMHV) manufacturers. There are, however, a gamut of high-mix low-volume (HMLV) manufacturers that wonder if the power of Lean is really applicable to them given their very different factors regarding volume, variety, and scheduling.

I recently spoke with Shahrukh Irani – who actually just published a book entitled Job Shop Lean:  An Industrial Engineering Approach to Implementing Lean in High-Mix Low-Volume Production Systems – and asked him the very specific question: “How is Lean applicable in High-Mix Low-Volume (HMLV) manufacturing?” Here is his detailed answer: 

Of all high-mix low-volume (HMLV) manufacturers, a job shop has the most complex production system.  The classification of different production systems that is shown in Figure 1 provides the simplest evidence that forcing a job shop to adopt a production system and tools that were designed to improve a repetitive assembly line’s performance is like fitting a square peg into a round hole. 

Figure 1: Comparison of an Assembly Plant and a Custom Fabrication Job Shop

Currently, nearly every job shop has failed to realize the full gains from Lean because they have stopped at implementing only the Lean tools listed in the left-hand column of Table 1.  In contrast, the Lean tools in the right-hand column of Table 1 are ineffective, often inapplicable, in any job shop.  So how does any Lean job shop reap additional benefits from Lean?  By implementing a new “Job Shop Lean Toolbox” in which the Lean tools in the right-hand column of Table 1 have been replaced with other tools that were developed for job shops!  

Table 1: A New “Job Shop Lean Toolbox” for High-Mix Low-Volume Manufacturers

Lean tools that will work in job shops also	Lean Tools that will not work in job shops
Strategic Planning	Pencil-and-Paper Problem Solving
Top-Down Leadership	Value Stream Mapping
Gemba Walks by Managers	Assembly Line Balancing
Employee Engagement	One-Piece Flow Cells
Workplace Design with 6S	Product-specific Kanbans
TPM (Total Productive Maintenance)	FIFO Sequencing of Orders
Setup Reduction (SMED)	Pacemaker Scheduling
Error-Proofing (Poka-Yoke)	Inventory Supermarkets
Quality At Source	Work Order Release based on Pitch
Visual Workplace	Production based on Level Loading
Product and Process Standardization	Mixed Model Production with Takt Time
Right-sized Flexible Machines	Right-sized Inflexible Machines
Standard Work	Pull-based Production Scheduling
Continuous Problem-Solving	Manual Scheduling with Whiteboards

 

If the Tool Works for High-Mix Low-Volume, Then Job Shop Lean Uses It!

In Table 1, the tools in the left-hand column will also work in HMLV production systems.  “Top-down Leadership” and “Employee Involvement” are essential.  “Standard Work Instructions” and “Setup Reduction” are needed to minimize variation in setup times on any machine (or manufacturing cell) due to different parts having varying setup sequences, tooling packages, material sizes, tolerances, etc.  “Quality at Source” empowers employees to reduce costs, take pride in their workmanship and have ownership for their work.   “Right-sized Machines” appears in both columns of Table 1 because simple machines are easy to learn to use, setup, operate and maintain.    

If the Tool Does Not Work for High-Mix Low-Volume, Then Job Shop Lean Replaces It!

In Table 1, the tools in the right-hand column will almost never work in HMLV production systems because those tools are simply not applicable to MTO (Make-To-Order) HMLV production systems that do not operate like assembly lines.  It is these tools that have been replaced by a more effective set of tools, often enabled by software, to successfully implement Job Shop Lean.

What do you think of Shahrukh's observations? What are the experiences of those who work in a HMLV environment and have been part of a Lean initiative?

Becoming a New Supervisor -- What are the Challenges?

During May, Hugh Alley published a book that introduces the central skills that any supervisor must master with, at least, a basic working competency: instructing, leading, and making improvements in their own area. It is entitled Becoming the Supervisor
Achieving Your Company's Mission and Building Your Team, and it presents some of the more widely used tools that a new supervisor may need. More importantly, it ties these tools and skills to solving particular problems.

I spoke with Hugh this month and asked him: “What are the common mistakes many new supervisors make?” Here is his complete response:

I’d say that there are three common mistakes among new supervisors.

First, they are not clear enough with their employees when they assign work. They’ll describe what need to be done, but they’ll skip over the details of how the work is to be done. These details are what set the orders apart, and they are where the mistakes happen. You need to go over them with your employee. And you need a conversation about how long the work will take. When that happens, both supervisor and worker can agree, and the supervisor’s stress goes down.

Second, they act without thinking through a situation when something is amiss. Usually that’s because they don’t have a structured way to approach this sort of problem. In the book, Julie, the GM, introduces Trevor, the young supervisor to the Job Relations approach, which gives a nice structured way to think about any situation. I’ve seen team leads charging across the floor to “deal with” someone stop in their tracks and reconsider when they remember the steps of the Job Relations program. It’s very powerful.

Third, they don’t pay enough attention to standard work. They don’t make sure that people are using the best way to do a job that the organization currently knows. That consistency will typically increase productivity by 10%. The best route to that is a good job breakdown, and the concepts of the Job Instruction module from Training Within Industry are very helpful here. In the book, Trevor learns how to do this, and it solves several problems. I’ve seen it reduce the time to get new staff up to speed from three months down to one month.

If new supervisors can get those three skills nailed, they’ll be much better off. From there, they can learn all the other skills. 

What is the quality of the leadership training within your organization? Do you agree with Hugh's assessment of common mistakes by new supervisors? Has your company experienced the benefits of a training within industry (TWI) program?

How Do Service Organizations Translate Lean Principles into Sustainable Practices?

In January, Karyn Ross published  a new and very important book entitled How to Coach for Creativity and Service Excellence: A Lean Coaching Workbook -- It is a self-contained workbook, in which the reader completes twenty-one days of practical exercises and activities focused on creativity, Lean, and coaching (one set per day). These exercises enable readers to develop their capability and confidence to be creative, adapt Lean principles, practices and tools to their unique service organization, and coach others to do the same.

I had a chance to meet and discuss the book with Karyn during the recent KataCon5 conference in Savannah, Georgia. One of the questions I asked her was: “Why do service organizations struggle to translate Lean principles into sustainable practices?” Here is her complete and enlightening answer:

Michael, that’s a great question. And, as a Lean coach, consultant and practitioner who has only worked in services, I could give you any of the traditional answers you might expect:

•             Lean is for manufacturing.

•             Senior leadership doesn’t really support it.

•             Lean is just another "flavor of the month."

But while all these may be contributing factors, over the years, I’ve come to understand that the real reason people in service organizations struggle to turn Lean principles into sustainable practices is the same reason people in manufacturing organizations struggle: They aren’t able to overcome what I call the long list of "I can’ts" -- those underlying assumptions that each of us has about what is and what isn’t possible. Possible for our organization, our team, and for each of us as individuals:

• “We can’t possibly customize our service for every customer. There are too many of them!”
• “I can’t ask my team for 100% accuracy. It’s demotivating and they can’t do it.
• “I can’t work more efficiently. I know the way I do this is the best way.”

As a Lean community, we’ve spent a lot of time focused on tools and some time on principles. But, we haven’t spent any time at all helping people learn how to use their innate creativity. That’s why this book, written as a workbook, focuses so heavily on two factors: 

1. Coaching people to use my simple, disciplined, practical approach to PDCA so that anyone, at any level of the organization, can generate creative ideas to overcome those “I can’ts."
2. How to then turn those creative ideas into more effective and efficient ways to work by adapting Lean principles such as flow, leveling, and standard work in services.   

These factors ensure that customers are satisfied – now and for the long-term -- and the organization will be able to fulfill its purpose. And, whether you’re in services – or manufacturing – that’s exactly what sustainable Lean practices are all about!

Do any readers work for service or transactional organizations that are applying Lean principles to achieve excellence? What do you think of Karyn's perspective?