Toyota and Lean

Since Toyota is usually referenced for great Lean examples and has received much negative news lately, sharing some viewpoints from Lean leaders might add perspective.

Norm Brodek started studying Lean over 20 years ago as a translator and publisher of books written by Japanese Lean leaders. He has made many trips to Japan researching how companies apply Lean. He is the author of Quick and Easy Kaizen. He writes:

“I am sure most of us agree that the current Toyota problem should not dissuade us from pursuing excellence in manufacturing and the realization that Lean is a key methodology towards attaining that goal. Lean is great but it is not the end of the journey. In fact, from my latest study missions to Japan, I found that other companies like Canon are even further along the path. For example, at Toyota, I saw one worker installing eight bolts in every car, 500 cars a day, while at Canon one worker, called a supermeister, can build a whole copier, by herself in a cell, in from one to three hours, 1000 to 3000 parts. People are truly able of accomplishing astounding things if we educate and challenge them. If you don¹t water a plant it dies. If you don¹t feed people opportunities to grow and change they will do just do their job, period. The journey should include challenging every worker to develop their creative abilities. Work should be a joy not just a means to make a living.

John Shook another Lean expert who worked for Toyota for many years writes:

“He probably didn't ask for a problem of quite this magnitude, but like it or not, Akio Toyoda has his crisis. Akio took the reigns with a proclamation that he wanted to change the company, to rid it of (his words) "pervasive hubris and arrogance" or, (my words) the same Big Company disease that he saw grip GM so deeply for so long. For about a year now Akio has been saying that he wants to take the company "back to basics." No less an authority than Taiichi Ohno said you need a crisis to truly embrace TPS. So, Akio has his opportunity.

“As always with things like this (Toyota's crisis, if it doesn't go without saying) it's not the crisis; it's how you respond to it. So far Toyota hasn't responded well. The company will pay a price for that. But, if they problem-solve their way out of the quality and cost issues, the public may forgive them quickly enough.

“Murphy on Steroids

Things can and do go wrong for any company. Yet Toyota has a special relationship with problems. The company has thrived for years by developing an obsessive focus on continuous improvement and problem solving. In Japan, they call Toyota people "problem-solving junkies." If any company can get to the bottom of an issue like this, a problem like this, it's Toyota.

“The first thing they have to do is protect the customer. For whatever reasons, through whatever set of complex circumstances, they have failed their customers. I know that fact is absolutely excruciating to the leaders of the company now. Secondly, they have to take care of their dealers, so that the dealers can take care of the customers.

“Thirdly, the company must turn its attention back to itself, to examine the root causes of what has happened throughout this entire episode. Toyota must conduct this investigation on two levels. First it has to confirm the specific technical cause or causes. People have died here. The company tells us it has figured that part out. Secondly, it must look at itself deeply and ask whether there is something more systemic going on: is there something deeper inside us as an organization that has allowed this to occur? Knowing the company as I do, there is no question in my mind that it will go through this reflection, this deep self-examination.”

Read the rest of his article

Hal Macomber writes and trains on Lean Construction- he says:

“Unlike the vast majority of firms, Toyota's management approach goes to great lengths to rapidly discover mistakes without diminishing the creativity of the workforce. They couple rapid problem-solving with everyday KAIZEN. They implore managers to "go and see" for yourself with the role manager-as-teacher. The Lexus and Prius were born in the spirit of "no compromises" in customer experiences while meeting aggressive market pricing. These are remarkable pairings that bring out the best in people while attempting to prevent defects from escaping.

“Manage in a way that every person observe, speak up and share freely and quickly what they learn. There are lessons in Toyota's troubles for everyone in business. I'll address a lesson for project managers. We live in an uncertain and unknowable world and there is far more that can be known than we have an ability to know. We can accept that as the basis of how we design our project environments or we can ignore that. When we do our project plans we can't know what will happen in 3 weeks, let alone 3 months. Our plans necessarily must change. People will make mistakes. People will learn something unanticipated. The circumstances for our customers will change. We therefore must manage in a way that every person on our projects and those concerned for our project success observe, speak up and share freely and quickly what they learn. Toyota is grappling with all of that. We must as well.”

- Hal Macomber - Reforming Project Management - What Is Going on with Toyota, 02/09/10 and Toyota’s Lesson for Project Managers – Feb. 10, 2010

I feel bad for any company that has quality problems. Toyota has grown fast as a worldwide company and that sometimes causes leaders to lose focus on their real values. I also feel there are other agendas as US government officials take shots at Toyota. Does it have anything to do with who now owns part of GM? That being said, it does not take away from what Toyota has done in developing Lean techniques and that the techniques do work. Failure to follow the principles and tools can result in quality failures in any company – no one is exempt – you must continue to practice it and then seek improvement. Notice too that the failures seem to be in design, not production.

A very knowledgeable Lean expert said “A final word to the wise: betting against Toyota after they have been knocked down has not historically been a good idea. Each time they have come roaring back.”

Time will tell.

What are you?

Are you a Lean company, or a company doing Lean things? Consider the differences - Lean companies:

Truly value employees’ opinions and ideas.

Constantly look to add value to their customers by listening to their voice.

Do all 5S’s “ not just the first two

Make things visible so it is easy to see when something is not normal.

Measure PPC and use it as a tool to eliminate constraints.

Display the key measures for the company’s performance so employees know the score.

Do the 5S’s to improve flow and reduce waste, not to look spick and span.

Managers do Muda walk regularly not symbolically.

Invest in training all employees.

See no conflict of productivity with quality or safety.

Seek for a zero punchlist and not accept a punchlist as a typical business practice.

Look to create flow for the whole project and not just their own parts.

Share information with partners.

Look for root causes of problems, not solutions that solve symptoms.

Value experimentation (PDCA) and use failures as learning experiences.

Treat suppliers as they want their customers to be treated, including not just going for low bid on purchases.

Understand the seven types of waste and are always seeking ways to eliminate it.

Plan strategically, not react randomly to their markets.

Do not use Lean as an excuse to downsize.

Communicate regularly and frequently to employees so they know the company plans, goals, progress, and priorities, and how they fit into the plans.

See Lean as just adding value, not as just eliminating waste.

I am sure there are many more, but this is a start.

The 2-Hour House

Can one build a house in two hours? Check this video out

Learning Opportunities

You may be interested in attending one of these training seminars:

Feb. 25, 2010 - Eliminating Treasure Hunts – Applying the 5S’s - Phoenix, AZ, Sponsor: PIPE & 469 JAC, contact Cathy Mayeux at 480.966.0377 or CMayeux@pipetrust.org

March 10, 2009 – Lean works in Construction – sponsored by Mid Atlantic SMACNA Chapter. Contact them at (301) 446-0002 or info@smacnaatl.org for details. Must be a SMACNA Member or affiliate to attend.

March 25, 2010 - Job Planning that Really Works – The Last Planner not the First Planner system – Phoenix, AZ, Sponsor: PIPE & 469 JAC, contact Cathy Mayeux at 480.966.0377 or CMayeux@pipetrust.org

April 22, 2010 - Lean Applied to Service – Phoenix, AZ, Sponsor: PIPE & 469 JAC, contact Cathy Mayeux at 480.966.0377 or CMayeux@pipetrust.org

May 20, 2010 - Getting to the Root Cause by Analysis not Luck - Phoenix, AZ, Sponsor: PIPE & 469 JAC, contact Cathy Mayeux at 480.966.0377 or CMayeux@pipetrust.org

Sept 30, 2010 – Lean Construction – It can work for you - Phoenix, AZ, Sponsor: PIPE & 469 JAC, contact Cathy Mayeux at 480.966.0377 or CMayeux@pipetrust.org

Oct. 28, 2010 – Gaining Customer Loyalty by Design - Phoenix, AZ, Sponsor: PIPE & 469 JAC, contact Cathy Mayeux at 480.966.0377 or CMayeux@pipetrust.org

Other Lean Construction Leaning Opportunities

Feb 25, 2010 - LCI DFW Chapter >> Chapter Formation Meeting: Forming the LCI Dallas-Fort Worth Chapter, (Dallas, TX) Although the meeting is free, please register ahead of time to help us plan enough food for all. Registration details

Feb 25, 2010 - LCI New England Chapter >> Chapter Kick-Off Meeting: Introducing Lean Construction to Manage Projects and Improve Reliability - Waltham, MA -New England Chapter. Registration details

March 11, 2010 - LCI DFW Chapter >> Chapter Formation Meeting Chapter, Dallas, TX - Although the meeting is free, please register ahead of time to help us plan enough food for all. Registration details

March 16, 2010 - LCI Arizona Chapter >> DPR's Lean Journey, Tempe, AZ - Featuring Dean Reed of DPR. Registration details

May 10 to 12, 2010 - LCI Academic Forum, Louisville, CO Save the date for the 6th meeting of the LCI Academic Forum! Event and registration details coming soon!

May 20, 2010 - LCI San Diego Chapter -A3 Problem Solving, San Diego, CA

Save the date - event and registration details coming soon!

A Quick Thought

Great spirits have always encountered violent opposition from mediocre minds.

- Albert Einstein

For more information about Lean applications to construction and especially the 5S’s contact Dennis Sowards at his office at 480-835-1185 or his cell at 602-740-7271

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