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Decoding Toyota's DNA Rev 1

The document summarizes the key rules and principles of the Toyota Production System. It discusses four main rules: 1) how work is highly specified, 2) how the production line is constructed with direct customer-supplier connections, 3) how the production line pathway is simple and direct, and 4) how improvements are made using the scientific method. It also outlines Toyota's notions of an ideal production system and how their system impacts organization.

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Mike Glez
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213 views9 pages

Decoding Toyota's DNA Rev 1

The document summarizes the key rules and principles of the Toyota Production System. It discusses four main rules: 1) how work is highly specified, 2) how the production line is constructed with direct customer-supplier connections, 3) how the production line pathway is simple and direct, and 4) how improvements are made using the scientific method. It also outlines Toyota's notions of an ideal production system and how their system impacts organization.

Uploaded by

Mike Glez
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Decoding the DNA of the Toyota Production System

Steven Spear and H. Kent Bowen Harvard Business Review

Introductory Points
Companies that have tried to adopt practices are diverse as aerospace, consumer products, metal processing and industrial products Toyotas performance secret does not lie in cultural roots - as other Japanese companies have also tried and failed Observers confuse tools/practices with the system itself Must understand the paradox of the system rigid specifications is the key to flexibility and creativity

October 2002

Decoding Toyota DNA rev 1.ppt

Rule One: How People Work


All work shall be highly specified as to content, sequence, timing and outcome
variation impacts quality

Learning by doing, managers and coaches ask key question to help the learners achieve understanding and develop problem solving skills
How do you do this work? How do you know you are doing this correctly or free of defects? What do you do if you have a problem?

Visual management techniques applied to help with error detection

October 2002

Decoding Toyota DNA rev 1.ppt

Rule Two: How the Production Line is Constructed


Every customer-supplier connection must be direct and there must be an unambiguous yesor-no way to send requests and receive promises (Kanban Cards)
Most companies devote substantial resources to coordinating people - but information flow is not so direct

Workers who encounter a problem are expected to ask for help immediately
This is the opposite of our current expectations for workers to try to resolve the problem on their own

October 2002

Decoding Toyota DNA rev 1.ppt

Rule Three: How the Production Line is Constructed


The pathway for every product and service must be simple and direct
Products flow along a simple and specified path

Good and services do not flow to the next available person or machine but to a specific person or machine
This too is the opposite of our current expectations and beliefs

All ambiguity is removed from the process

October 2002

Decoding Toyota DNA rev 1.ppt

Rule Four: How to Improve


Any improvement must be made in using the scientific method
Change are never made with out thorough discussion and defining the expected outcome of the change Before any changes are made people are expected to present the explicit logic of the hypotheses

Production workers make improvements to their own jobs, supervisors provide direction and assistance

October 2002

Decoding Toyota DNA rev 1.ppt

Countermeasures
Temporary responses to a specific problem until a permanent resolutions can be implemented
Kanban or andon used until a better approach is found or conditions change

Safety stock is used to protect against unpredictable downtime or yields Buffer stock is kept at or near shipping points to help manage variation in customer Safety stock and buffer stock kept separate and is owned by different people Reducing changeover times and batch sizes decreases the need for large amounts of inventory
October 2002 7 Decoding Toyota DNA rev 1.ppt

Toyotas Notion of Ideal


Defect free (features and performance is what customer expects) Delivered one request at a time (small batch or one piece flow) Supplied on demand in the version requested Delivered immediately Produced without wasting any materials, labor, energy or other resources Produced in a work environment that is safe physically, emotionally and professionally for every employee

October 2002

Decoding Toyota DNA rev 1.ppt

Organizational Impacts
Make people capable of and responsible for doing and improving their own work Standardizing connections between customer and suppliers Pushing process improvements and resolutions of problems to the lowest level of the organization Creates a modular structure that allows changes to be made without unduly affecting other parts
This allows the delegation of responsibility without creating chaos!
October 2002 9 Decoding Toyota DNA rev 1.ppt

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