Technology & Operations Week 7 Reading Notes
Process Improvement
Decoding the DNA of the Toyota Processing System
Steven Spear & H. Kent Bowen
• Based on an extensive 4-year study by HBS professors Spear & Bowen
• Few manufacturers have managed to imitate the Toyota Processing System (TPS) because imitators confuse tools and practices they see with the system itself
• Makes impossible to solve the paradox of rigidly scripted connections and production flows with Toyota’s highly flexible and adaptable operations
KEY FACTS
• Evolved naturally over 5 decades and was never written down
• Precursor to the more generic “lean manufacturing”
• Originally called the “just-in-time production”
• Kaizen – continuous improvement
• Constant challenge to existing processes, pushing for higher performance, which demands continual innovation and improvement
• Rigidity = Flexibility: It is TPS’ rigidity that makes the flexibility and creativity possible
• Scientific method: TPS creates a community of scientists who establish sets of hypotheses that can be tested. Allows for a rigorous problem-solving method that utilises the detailed assessment of current state to plan for improvement. Inverse of trial and error, far more scientific
• Everything highly procedure-based: every task broken down into activities and sub-activities with a set order and duration and designated worker/team/leader
• Nested modular structure (Russian doll) so change in one part possible without unduly affecting other parts
• 4 Principles
DESIGN
1. HOW PEOPLE WORK
a. All work shall be highly specified as to content, sequence, timing and outcome
b. Discrepancies immediately signalled
c. Product and procedure variation minimised
2. HOW PEOPLE CONNECT
a. Every customer-supplier connection mist be direct and involve unambiguous yes-or-no way to send and receive responses (no grey zones)
b. Kanban card, Andon cords – direct link with customers and suppliers
3. PRODUCTION LINE...