Lean Production Toyota(1).ppt

nzbusinesscouncilforsustainabledevelopmentauckland24f,supplychainexcellence:fromleanproductiontoleanconsumption,professordanieltjoneschairman,leanenterpriseacademy,uk,nzbusinesscouncilforsustainabledevelopmentauckland24f,whoami?,co-authorwithjimwomackofthemachinethatchangedtheworld,leanthinkingandthenewleanconsumptionarticleandleansolutionsbookchairmanofthenon-profitleanenterpriseacademyintheuk-partoftheleanglobalnetworkresearchersandpublishersoftheknowledgeneededtobuildaleanbusinesssystemthoughtleadersinpushingforwardthefrontiersofleanthinkinginourleansummitsandmentorstoorganisationsseekingtoimplementleanineverytypeofactivity,nzbusinesscouncilforsustainabledevelopmentauckland24f,leanisold¬japanese,thevenetiansunderstood“flow”productionby1400makingoneshipaday(soprobablydidthechinese!)thefrencharmyunderstoodtheneedforinterchangeablepartsbefore1789brunelwasmakingstandardisedpartsinprocesssequenceforthebritishnavyby1807blanchardmaderiflesonautomaticallycyclingmachineslaidoutincellsinspringfieldin1818forddevelopedthefirstcomplete“flowproduction”systemathighlandpark,detroitin1914,nzbusinesscouncilforsustainabledevelopmentauckland24f,frommasstolean,fordwentontocreate“massproduction”attherougein1927-makinghugevolumesofpartsforassemblygloballyusingbigmachines,bigbatches,andcomplexcoordinationaspullbecamepushtoyotaextended“flowproduction”tocopewithvarietyusingsimplemachineswithquickchangetools,inprocesssequencepulledbycustomerdemandtpsor“leanproduction”wasperfectedby1970andextendedacrossthewholeenterpriseandacrossthewholeoftoyotacityasthe“toyotaway”,nzbusinesscouncilforsustainabledevelopmentauckland24f,toyota-theleanmodel,mostpeoplenowrecognisethattoyotaissettingthepacebasedonitsleanbusinesssystemitleadsinefficiencyandqualityaroundtheworlditalsoleadsintimetomarketfornewproductsandinintroducingnewtechnologies-likehybridsitisglobalisingassemblyandlocalisingpartssupplyithasovertakenfordandplanstoovertakegm!superficiallytoyotasfunctionalorganisationlooksfamiliar!sowhatdistinguishesthewayitoperates?,nzbusinesscouncilforsustainabledevelopmentauckland24f,toyotasleanstrategy,“brilliantprocessmanagementisourstrategy.wegetbrilliantresultsfromaveragepeoplemanagingbrilliantprocesses.weobservethatourcompetitorsoftengetaverage(orworse)resultsfrombrilliantpeoplemanagingbrokenprocesses.”leanthinkingisprocessthinking,nzbusinesscouncilforsustainabledevelopmentauckland24f,leanthinking,theobjectiveistomanagethebusinessbackwardsfromtheconsumerdefinitionofvalue-notforwardsfromyourorganisationandyourassetstocreateleanprimaryprocessestodesign,deliverandsupportthisvalue-withminimumwastedeffortandtimeandthenecessaryleansupportprocessesandtobuildaleanmanagementsystemtodevelop,sustainandimprovetheseprocessesovertimebeclearaboutconsumerpurpose,beforedesigningtheprocessesandthenorganisingthepeople,nzbusinesscouncilforsustainabledevelopmentauckland24f,leanprinciples,specifyvaluefromthestandpointoftheconsumer-(notfromyourassetsandorganisation)identifythevaluestreamthroughthestepsrequiredtocreateeachproduct-fromconcepttolaunchandordertodelivery-andremovethewastedstepsmaketheprocessofvaluecreationflowsmoothlyandquicklytothecustomerbutonlyinlinewiththepulloftheconsumerwhilepursuingperfectionbyconstantlyimprovingtheproductandthevaluestream,nzbusinesscouncilforsustainabledevelopmentauckland24f,thedynamicsoflean,nzbusinesscouncilforsustainabledevelopmentauckland24f,askthekeyquestions,implementinglean,checkprogressandstabilise,nzbusinesscouncilforsustainabledevelopmentauckland24f,timereducedfrom44to24days,timereducedfrom24to3days,acrossthevaluestream,nzbusinesscouncilforsustainabledevelopmentauckland24f,toyotassupplychains,toyotaspent30yearsdevelopingleaninhouseandspreadingitupanddownitssupplychainthemostimpressiveistheiraftermarketpartssystemsupplying400,000skustodealersitoperatesasaseriesoftightreplenishmentloopsdealerscalloffpartsfromdistributioncentreseverydaytheseshipmentstriggerdailyorderstobepickedupfromsuppliersthenextday60%ofwhomcanalsomakeeverypartthatisrequiredinadayeverydaytheresultisthehighestavailability,loweststocklevelsandthesmoothestordersignals,nzbusinesscouncilforsustainabledevelopmentauckland24f,leaningrocerysofar,supplier,rdc,store,ndc,nzbusinesscouncilforsustainabledevelopmentauckland24f,manyprocessindustries,arestuckintheworldofshorttermplanchangesandaneedtorespondflexiblytodemandsfromcustomersactuallytheyarecaughtinaviciouscircledataerrors,forecasterrors,demandamplification,constantrescheduling,expediting,lossofcapacity,finishedgoodsshortagesandexcessstocksetcthebreakthroughistoseewhereyoucanflowandcreatestabilityandbuildonthattoachieveincreasedresponsivenesstodemand,nzbusinesscouncilforsustainabledevelopmentauckland24f,whereandhowtoflow?,nzbusinesscouncilforsustainabledevelopmentauckland24f,whereandhowtoflow?,sequentialpull,replenishmentpull,nzbusinesscouncilforsustainabledevelopmentauckland24f,progressionovertime,skusvolume,nzbusinesscouncilforsustainabledevelopmentauckland24f,butthisisjustthestart!,thereisalotmoretodotoachievethefullpotentialofleanbeyondwhattescohasdoneinmanycasessuppliershaveonlyjustbeguntheirleanjourneysmakingagrowingrangeofproductsotherretailersarepickinguponthislogicsoprogresswillcontinuetheanswerdoesnotlieintechnologybutinrethinkingthesharedsupplychainprocesstheplacetobeginthisjourneyiswiththeconsumer,nzbusinesscouncilforsustainabledevelopmentauckland24f,consumption,improvementsinproductionandlogisticshavegivenconsumersagrowingrangeofhigherqualityproductsatlowerpricesthroughmanydifferentsaleschannelssowhyisconsumptionstillsofrustrating?whydoesthenewcomputerfailtoworkwiththerestofourkit?whydowehavetowastesomuchtimeinhubairportsandgeneralhospitals?whydowefailtofindexactlywhatwearelookingforonatriptothesupermarket?whyisitsodifficulttoconnectconsumptionandprovision?whydowethinkandactdifferentlyasconsumerstohowwedoinourlivesasproviders?,nzbusinesscouncilforsustainabledevelopmentauckland24f,theconsumptionprocess,theanswerbeginsbyseeingconsumptionnotasanisolatedtransactionbetweenstrangersbutbyseeingconsumptionasaprocessofstepstosolveaconsumersprobleminvolvingresearching,selecting,obtaining,integrating,maintaining,upgrading,disposingandreplacingmanyitemsovertimeinteractingwithseveralprovidersofgoodsandservicesinaparallelprovisionprocessaddthisupandyourealisethatmanagingthehouseholdconsumptionprocessesiscomplicatedandtakesalotof“unpaid”timeandmindshare,nzbusinesscouncilforsustainabledevelopmentauckland24f,theconsumersdilemma,weallhavemoreandmorechoicestomakeandmoreandmoreproductstomanagebutlesstimeandenergytodosothissituationcreatesamajoropportunityforprovidersandamajorwin-winopportunityforcollaboration,nzbusinesscouncilforsustainabledevelopmentauckland24f,principlesofleanconsumption,solvetheconsumersproblemcompletelydontwastetheconsumers(ortheproviders)timeprovideexactlywhattheconsumerwantsdeliveritwhereitswantedsupplyitwhenitswantedcontinuallyaggregatesolutionstoreducetheconsumerstimeandhassle,nzbusinesscouncilforsustainabledevelopmentauckland24f,solvemyproblem,itisnottheobjectwearebuyingbuttheusewegetfromtheobjectorserviceinrelationtoitscontexthasitsolvedmyproblemcompletely?whatwasitryingtodoexactly?whatelsedidihavetodotosolvetheproblemcompletely?wasthatahassle?fujitsuservicesreversedthelogicofoutsourcedcustomerserviceandtechnicalsupportgettingexperiencedstafftoaskaboutcustomerpurpose,offerafix,redesigntoeliminatetherootcauseanddiscoveradditionalvalueforfutureproductsweneedadialoguetodiscoverpurposeandhassle,nzbusinesscouncilforsustainabledevelopmentauckland24f,dontwastemytime,theassumptionis“mytimeisfree”soicandomore!inrealitycustomersandproviderstimeiswastedbyapoorlydesignedanddisconnectedconsumptionandprovisionprocessesmappingbothprocessesandtheirinteractionsrevealsthiswastedtimeandcostandidentifiesopportunitiesforwin-wincollaborationtocuttimeandcostforbothbycreatingadialoguewithconsumerstopre-diagnosetheproblem,planningandpreparing,separatingjobtypesandcreatingstandardisedleanprocesses,nzbusinesscouncilforsustainabledevelopmentauckland24f,carrepairbeforelean,nzbusinesscouncilforsustainabledevelopmentauckland24f,leancarrepair,nzbusinesscouncilforsustainabledevelopmentauckland24f,whatiwant,fulfilmentlevelsarepoorinmostsystems98.5%availabilitydropsto92%ontheshelfand55%forabasketof40itemsinthegrocerystore80%availabilityfortheshoewith150dayorderwindowleadsto40%beingremaindered52%ofconsumersgetthecarstheywantedontimeand64%ofservicejobsarecompleterrftotbetterit,rfidandstocksarenottheanswerbutrapid,reflexive,replenishmentloopsbackupstreamandcompressingthelengthofthesupplychain,nzbusinesscouncilforsustainabledevelopmentauckland24f,whereiwantit,weallusemanyformatsdependingonourcircumstancesandtimepressureplacesagrowingpremiumonconveniencewhichsignalstheendofthe“bigbox”dominantmassretailingformatscaleeconomiesdonotderiveprincipallyfromproductioneconomiesorstoresizebutbuyingpowerthekeytoservingmultiplechannelsisacommonfulfilmentsystemanda“waterspider”replenishmentsystemforallformatsincludinglocalstoresandhomeshoppingwhichrequiresmuchmoreaccuratefulfilment,nzbusinesscouncilforsustainabledevelopmentauckland24f,alternativeshoppingtrips,totaltraveltimecost195m$12.00160m$12.0095m$5.0050m$4.0015m-25m-,hypermarket,discountstore,supermarket,retailshop,conveniencestore,nzbusinesscouncilforsustainabledevelopmentauckland24f,wheniwantit,iseverythingpurchasedonimpulse?isthereanyincentivetoplanahead?theconsequenceisthatproductionmustbeinfinitelyflexible,everyeventmustbeplannedandwehavetodisposeofunwantedstockreversingthislogichowcanweplanaheadwithmostconsumerswhileofferingpriceincentivestosmooththedemandforproductionslots?thisstabilitycreatesthepossibilityofrespondingtothe“got-to-have-it-now”consumersatmuchlowercost?th