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Summary
Summary
A lean blueprint for creating long-term sustainability the Toyota way!
Winner of the 2012 Shingo Research and Professional Publications Award
During Toyota's highly publicized recalls of 2009 and 2010, the legendary carmaker's 60-year-old reputation for operational excellence was put under the microscope. Business pundits wondered out loud if Toyota's quality levels had decreased dramatically, while the harshest critics predicted the end of the company as we know it. For the most part, the government's findings absolved Toyota of serious defects and accidents, and Toyota recovered rapidly--but mistakes were made, which showed that Toyota is not perfect. In fact, there is always opportunity for improvement in every process.
In his bestselling business management classic The Toyota Way , Jeffrey Liker introduced the world to the foundational principles that have made Toyota the envy of companies around the world. Now, in The Toyota Way to Continuous Improvement , Liker teams up with former Toyota production engineer James Franz to explain the underlying thinking behind continuous improvement and why any company needs a disciplined approach to process improvement in every part of the organization.
Liker and Franz outline the common mistakes in thinking that limit results, and they reveal how Toyota achieves its dual objectives of improving business performance and developing its people through following Dr. W. Edwards Deming's teachings of Plan-Do-Check-Adjust (PDCA). Through detailed case examples in many industries, you'll learn how to:
Determine why your processes aren't achieving anticipated results Build a sustainable lean process with a well-defined purpose Create a system that reveals problems Teach every leader and team member at every level the art of PDCA for process improvementWith The Toyota Way to Continuous Improvement , you have the foundation you need to develop a vision of continuous improvement specific to your organization and plot a path to turn your vision into a measurable reality.
Praise for The Toyota Way to Continuous Improvement :
"I have found inspiration and lessons in these real stories from real people who try, sometimes fail, and yet find creative ways to succeed in adapting the principles of Deming and Toyota. Despite the diversity of applications revealed here, the commonality in vision, values, and desired outcomes unifies these leaders. You won't be able to put this book down."
RICHARD ZARBO, MD, DMD, Senior Vice President and Chairman of Pathology and Laboratory Medicine, Henry Ford Health System
"Lean is no longer an idea, a hypothesis, or a theory--it is a proven set of principles and practices that more and more people are using to achieve substantial, sustainable continuous improvement in a variety of enterprises. This book details the practices and case studies to help you bring Lean transformation to your enterprise!"
CHARLES BAKER, former Chief Engineer and former Vice President, Honda R&D Americas
Author Notes
Jeffrey K. Liker , author of the bestselling The Toyota Way , is professor of industrial and operations engineering at the University of Michigan. His most recent book, Toyota Under Fire , chronicles Toyota's response to the recession and recall crisis.
James K. Franz has more than 24 years of manufacturing experience and learned "lean" as a Toyota production engineer in the United States and Japan. He has worked for and consulted with various organizations, including Ford, Bosch, the U.S. Air Force, Exxon Mobil, AMCOR, Hertz, and Applied Materials. He also teaches for the University of Michigan's Center for Professional Development's Lean Certification course.
Table of Contents
Acknowledgments and Guest Author Biographies | p. xiii |
Prologue: Is Toyota Still a Great Company Others Can Learn From? | p. xix |
Section 1 The Journey to Continuous Improvement | p. 1 |
Chapter 1 Continuous Improvement toward Excellence | p. 5 |
Continuous Improvement as the Pursuit of Excellence | p. 5 |
The Toyota Way as the Path to Excellence | p. 8 |
Lean and Why Companies Fail at It | p. 12 |
Is Lean More than Mediocrity at a Cheaper Price? | p. 15 |
The Real Journey to Excellence Follows PDCA | p. 16 |
Learning Organizations Need Managers Who Are Teachers | p. 20 |
The Sensei Perspective of This Book | p. 23 |
Chapter 2 PDCA and Striving for Excellence | p. 25 |
PDCA as a Way of Thinking and Learning | p. 25 |
The Folly of ôLean Solutionsö | p. 30 |
Toyota Business Practices to Grow People and Processes through PDCA | p. 35 |
PDCA Is a Way of Life; Copying Shouldn't Be | p. 41 |
Chapter 3 How Process Improvement Can Develop Exceptional People | p. 43 |
Not Excellent: A Tale of Refrigerator Baskets | p. 43 |
The Torque Wrench Problem: Developing a Manager to Find the Real Root Cause | p. 46 |
The Business Purpose and the People Purpose | p. 50 |
Innovation Comes from Working toward the Targets and Purpose | p. 51 |
Chapter 4 Lean Processes Start with a Purpose | p. 55 |
A Tale of Two Lean Transformations (Composite Cases) | p. 55 |
Inspiring People through a Sense of Purpose | p. 57 |
From Vision to Plans | p. 60 |
A Target Is a Concrete Guidepost to Compare Against | p. 69 |
Combining Short-Term and Long-Term Thinking in a Crisis | p. 73 |
What You Work on Now Depends on Your Situation | p. 75 |
Lean as a Culture of Continuous Improvement | p. 78 |
Chapter 5 Lean Out Processes or Build Lean Systems? | p. 79 |
ôLeaning Outö Processes | p. 79 |
Are Organizations Like Machines or Organic Systems? | p. 83 |
Entropy: The Antagonist to Mechanistic Lean Deployment | p. 86 |
An Effective Work Group Can Overcome Entropy | p. 89 |
The Real Purpose of Lean Systems Is to Bring Problems to the Surface | p. 92 |
Mechanistic versus Organic? Not So Fast | p. 95 |
Section 2 Case Studies of Lean Transformation through PDCA | p. 97 |
Chapter 6 When Organic Meets Mechanistic: Lean Overhaul and Repair of Ships | p. 103 |
How We Got Started on Lean at Reman | p. 104 |
Overhaul and Repair Compared to Volume Manufacturing | p. 108 |
Phases of Deployment | p. 110 |
Phase 1 Early Awareness | p. 111 |
Phase 2 Grassroots Deployment | p. 112 |
Phase 3 Spreading Lean Broadly | p. 121 |
Phase 4 Corporate Engagement and the Next Level of Deployment | p. 122 |
Phase 5 Crisis in Lean Manufacturing Deployment | p. 130 |
Phase 6 Regrouping and Redefinition | p. 131 |
Evaluating the Success of Small Ship and Big Ship | p. 135 |
Chapter 7 An Australian Sensei Teaches a Proud Japanese Company New Tricks: Bringing TPS to a Complex Equipment Manufacturer | p. 141 |
Background of the Japanese Company and the First Visit | p. 143 |
The Power of Public Humiliation | p. 147 |
The Starting Point: ôComponent Aö TPS Pilot | p. 151 |
Building a Lean System-Summary of Pilot Results and Learning | p. 156 |
Postscript on the Pilot | p. 159 |
Further Expansion | p. 163 |
Navigating the Global Financial Crisis | p. 168 |
Reflection on Building Lean Systems Organically | p. 169 |
Chapter 8 Lean Iron-Ore Mining in the Pilbara Region of Western Australia | p. 177 |
How We Got Here | p. 178 |
Welcome to the Bush | p. 181 |
Getting the Big Picture | p. 184 |
Starting by Understanding the Current State | p. 185 |
The Final Recap of the Gemba Visit | p. 198 |
On to a Future State Vision and an Action Plan | p. 199 |
Communicating across the Site | p. 204 |
Planning for the Morning Meeting | p. 205 |
The First Morning Meeting | p. 210 |
Daily Production Boards | p. 213 |
5S at the Western Ranges Crusher | p. 214 |
Coaching Problem Solving | p. 216 |
Process Confirmation | p. 217 |
Early Deployment Challenges | p. 219 |
Lessons Learned at Start-Up | p. 220 |
Expanding the Efforts | p. 221 |
PDCA as a Key Driver | p. 222 |
The End for Us | p. 222 |
Chapter 9 Bringing Ford's Ideas Alive at Henry Ford Health System Labs through PDCA Leadership | p. 225 |
The Motivation for Change Started with Quality | p. 226 |
We Wanted It, but We Did Not Understand It | p. 228 |
Beginning the Lean Journey: Every Breakthrough Starts with a Failed Experiment | p. 232 |
A Little Help from a Friend | p. 233 |
Surgical Pathology as Our Learning Laboratory | p. 234 |
Our Henry Ford Production System | p. 238 |
Deepening Ownership by Work Groups | p. 248 |
Lessons Learned | p. 256 |
Chapter 10 Teaching Individuals to Fly by the Numbers: Transforming Health-Care Processes | p. 261 |
The Problem | p. 262 |
Background | p. 264 |
Case 1 Insurem (Insurance Company) | p. 265 |
Case 2 T-City Care Homes | p. 269 |
A Final Reflection | p. 273 |
Chapter 11 Transforming How Products Are Engineered at North American Automotive Supplier | p. 275 |
Who Am I? | p. 276 |
Case Background | p. 280 |
The Problem | p. 280 |
Grasping the Situation at the Gemba | p. 282 |
An Overall Vision for Transformation | p. 284 |
Getting Started on People Engagement and Stability | p. 285 |
Metrics the Lean Way-Making Flow, Waste, and Value Visible | p. 289 |
Teaching Problem Solving: A Case Example | p. 293 |
The Need for Emotional as Well as Intellectual Engagement | p. 297 |
Another Win as a Result of Lean | p. 298 |
The Importance of Tactical Planning by Whiteboard | p. 299 |
Definition of Lean Management Philosophy: ORPMAR | p. 301 |
The Second Stage: Sustaining and Expanding Lean | p. 306 |
Identification of Subject Matter Technical Experts | p. 307 |
Implementing Design for Cost | p. 308 |
Reverse Engineering to Gain Overwhelming Competitive Advantage | p. 311 |
The Change Process-the Underestimated Critical Variable | p. 312 |
Chapter 12 Going Nuclear with Lean | p. 315 |
Background on Lean at Nuclear | p. 316 |
Phases of Deployment | p. 318 |
Phase 0 Structural Changes in Preparation for Lean Deployment | p. 319 |
Phase 1 Lean Awareness and Value Stream Vision | p. 320 |
Phase 2 Implementation of Lean Pilots | p. 322 |
Phase 3 Spreading the Implementation across the Other Value Streams | p. 325 |
Shortage of Internal Lean Leaders to Support and Coach the Expanding Number of Teams | p. 327 |
Phase 4 Management Learning and the Start of Continuous Improvement | p. 333 |
Final Reflection | p. 340 |
Section 3 Making Your Vision a Reality | p. 343 |
Chapter 13 One Time around the Plan-Do-Check-Adjust (PDCA) Loop: A Lean Short Story at Alte Schule | p. 345 |
The First Pilot Team Meeting | p. 345 |
Getting Started on the Deep-Dive Pilot | p. 348 |
One Last Hansei before the Executive Presentation | p. 366 |
The Executive Report | p. 369 |
Kate's Reflections on What She Learned | p. 373 |
Chapter 14 Sustaining, Spreading, Deepening: Continuing Turns of the PDCA Wheel | p. 375 |
The Role of the Lean Sensei | p. 378 |
Developing Internal Coaches as Lean Evangelists | p. 382 |
How Do We Learn Complex Skills Like Lean Coaching? | p. 384 |
The Dangers of Creating a Mechanistic Lean Bureaucracy | p. 387 |
Sustaining the Gains | p. 390 |
Spreading While Deepening | p. 398 |
Managing Change Is Political | p. 408 |
Chapter 15 Continuous Improvement as a Way of Life | p. 411 |
Does Lean Ever Become Self-Perpetuating? | p. 422 |
The Journey Needs Leadership | p. 427 |
Is Continuous Improvement a Realistic Vision? | p. 429 |
Notes | p. 433 |
Index | p. 441 |