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The Toyota Way Fieldbook A Practical Guide for Implementing Toyota's 4Ps Contents Acknowledgments Foreword Preface xi xv xix Part I. Learning from Toyota 1. Background to the Fieldbook 1 3 Why The Toyota Way Fieldbook? How the Book Is Organized Overview of the Toyota Way Principles How to Use This Book 3 6 8 14 15 17 Part II. Why Does Your Company Exist? 2. Define Your Corporate Philosophy and Begin to Live It What Is Your Company's Philosophy? A Sense of Purpose Inside and Out Creating Your Philosophy Living Your Philosophy Making a Social Pact with Employees and Partners Maintaining Continuity of Purpose 17 18 23 24 25 27 31 33 Part Ill. Creating Lean Processes Throughout Your Enterprise 3. Starting the Journey of Waste Reduction Lean Means Eliminating Waste Developing a Long-Term Philosophy of Waste Reduction Value Stream Mapping Approach Benefits of the Value Stream Mapping Approach 33 37 37 41 Developing a Current State Map Understand Your Objectives When Mapping the Current State Limitations of the Value Stream Mapping Approach Creating Flow Step by Step Sequential and Concurrent Continuous Improvement 4. Create Initial Process Stability 42 43 47 49 52 56 First Get to Basic Stability Indicators of Instability Clearing the Clouds Objectives of Stability Strategies to Create Stability Identify and Eliminate Large Waste Standing in the Circle Exercise Standardized Work as a Tool to Identify and Eliminate Waste 5S and Workplace Organization Consolidate Waste Activities to Capture Benefits Improve Operational Availability Reduce Variability by Isolating It Level the Workload to Create a Foundation for Flow and Standardization 5. Create Connected Process Flow 56 57 58 58 59 60 60 61 64 65 71 74 77 80 One-Piece Flow Is the Ideal Why Flow? Less Is More: Reduce Waste by Controlling Overproduction Strategies to Create Connected Process Flow Single-Piece Flow Key Criteria for Achieving Flow Pull Complex Flow Situations Pull in a Custom Manufacturing Environment Creating Pull Between Separate Operations Flow, Pull, and Eliminate Waste 6. Establish Standardized Processes and Procedures 80 81 83 89 89 91 94 98 100 102 108 111 Is Standardization Coercive? Standardized Work or Work Standards? Objective of Standardization Strategies to Establish Standardized Processes and Procedures 111 113 114 117 Types of Standardization Quality, Safety, and Environmental Standards Standard Specifications Standard Procedures Myths of Standardized Work Standardized Work Standardized Work Documents Some Challenges of Developing Standardized Work Auditing the Standardized Work Standardized Work as a Baseline for Continuous Improvement Takt Time as a Design Parameter Importance of Visual Controls Standardization Is a Waste Elimination Tool 7. Leveling: Be More Like the Tortoise Than the Hare 118 119 120 121 122 124 126 131 134 135 136 139 141 145 The Leveling Paradox Heijunka Provides a Standardized Core for Resource Planning Why Do This to Yourself? Smoothing Demand for Upstream Processes How to Establish a Basic Leveled Schedule Incremental Leveling and Advanced Heijunka Incremental Leveling Points of Control Point of Control for Managing Inventory A Leveled Schedule Dictates Replenishment Slice and Dice When Product Variety Is High Leveling Is an Enterprisewide Process 8. Build a Culture That Stops to Fix Problems 145 146 147 148 151 157 157 158 158 159 161 166 171 Developing the Culture The Role of Jidoka: Self-Monitoring Machines The Problem-Resolution Cycle Minimizing Line Stop Time Build Quality Inspections into Every Job Poka Yoke Creating a Support Structure 9. Make Technology Fit with People and Lean Processes 172 177 178 182 184 186 195 198 Back to the Abacus? What Do You Believe About Technology, People, and Processes? 198 200 Tailor Technology to Fit Your People and Operating Philosophy Contrasting Models of Technology Adoption Keep Technology in Perspective 203 205 213 217 219 Part IV. Develop Exceptional People and Partners 10. Develop Leaders Who Live Your System and Culture from Top to Bottom Success Starts with Leadership Importance of Leadership Within Toyota Toyota Georgetown Production Leadership Structure Toyota Georgetown Staff Leadership Structure Requirements for Leaders Group Leader Responsibilities on a Typical Workday Creating a Production Leadership Structure Selecting Leaders Developing Leaders Succession Plan for Leaders 11. Develop Exceptional Team Associates 219 220 222 224 224 226 232 234 237 239 242 "We Don't Just Build Cars, We Build People" Start by Selecting the Right People Assimilating Team Associates into Your Culture Job Instruction Training: The Key to Developing Exceptional Skill Levels Making a Training Plan and Tracking Performance Building Team Associates for the Long Term Quality Circles Toyota Suggestion Program Developing Team Associates for Leadership Roles Personal Touch Creates Stronger Bonds Invest in Skill in All Areas of the Company 12. Develop Suppliers and Partners as Extensions of the Enterprise 242 243 246 247 255 258 258 261 263 265 265 270 Supplier Partners in a Globally Competitive World Short-Term Cost Savings vs. Long-Term Partnerships Supplier Partnering the Toyota Way Seven Characteristics of Supplier Partnering Building a Lean Extended Enterprise Traditional vs. Lean Models of Supplier Management 270 271 273 275 290 294 Part V. Root Cause Problem Solving for Continuous Learning 13. Problem Solving the Toyota Way 305 307 More Than Solving Problems Every Problem Is an Improvement Opportunity Telling the Problem-Solving Story 14. Develop a Thorough Understanding of the Situation and Define the Problem 307 309 313 323 Carefully Aim Before Firing Find the True Problem to Get the Most Significant Results Examining a Problem in Reverse Defining the Problem Building a Strong Supporting Argument 15. Complete a Thorough Root Cause Analysis 323 327 333 334 337 341 Principles of Effective Analysis Seeking Problem Causes That Are Solvable Distill Root Cause Analysis to Simplest Terms A Picture Is Worth a Thousand Words Putting It All Together: The A3 One-Page Report Dig Deeply into Possible Causes 16. Consider Alternative Solutions While Building Consensus 341 346 349 349 351 352 356 Broadly Consider All Possibilities Simplicity, Cost, Area of Control, and the Ability to Implement Quickly Develop Consensus Test Ideas for Effectiveness Select the Best Solution Define the Right Problem and the Solution Will Follow 17. Plan-Do-Check-Act 356 357 359 360 362 362 364 Plan: Develop an Action Plan Do: Implement Solutions Check: Verify Results Act: Make Necessary Adjustments to Solutions and to the Action Plans Act: Identify Future Steps Finally Some Action 18. Telling the Story Using an A3 Report 364 368 368 371 371 372 376 Less Can Be More in Report Writing 376 Determining How to Use an A3 The A3 Problem-Solving Report Process Outline for an A3 Formatting Tips Final A3 Version of Problem-Solving Story Final Comments on A3s Part VI. Managing the Change 19. Lean Implementation Strategies and Tactics 377 379 381 382 383 387 391 393 Where Should You Start? Lean Implementation Levels, Strategies, and Tools Having the Patience to Do It Right 20. Leading the Change 393 394 417 427 Can We Avoid Politics in Lean Transformation? Leadership from the Top, Middle, and Bottom Can You Metric Your Way to Lean? Changing Behavior to Change Culture Spreading Your Learning to Partners Now Please Try . . . and Do Your Best Index 427 430 449 452 458 461 467