Toyota are creating a new style of factory, but I think this is an extension of, & a more aggressive application of the basic principles that have always driven their activities. ---
The main performance goals for TPS are to give customers;
- What they want. (The best P, S, & E in your industry. Product, Service & Experience.)
- In the quantity they want, without defects. (One piece flow facilitates this capability. Jidoka & Poka- yoke will ensure zero defects)
- Delivered when they want it. (Just in time to suit their needs. Takt time is the driver)
These values must also be improving faster than any existing or future competitor.
(The new ‘Toyota New Global Architecture’ with enable designs to be customised to specifically suit local market needs. 75% of the investment saving from TNGA will be invested into ‘making even better cars’. TNGA will achieve significant reductions in new model introduction times. The new factories can adjust output to suit a 50% change in demand within a single shift.)
There are 3 main activity goal areas in TPS to achieve this. They are the 3 R's. ---
The first 'R' is Resources. The goal in this area is to achieve the 3 performance goals using the minimum ‘Resources’ (i.e. materials – machinery - methods - movement – minutes - manpower - money). Anything above the minimum resources required to produce the P, S &E that will delight the customer is defined as waste, & is a target for removal. This is one the main areas of focus for TPS & Lean activities - Waste elimination. What cannot be removed should then be seen as a target to be continuously improved. The first rule in this area is; remove it before you try to improve it. ---
(The new ‘simple and slim’ factory design takes waste elimination to a new level. They will be 25% smaller, cost less to build, use much less energy and reduce emissions. Other features are listed below.) ---
The second 'R' has been largely missed by the Lean movement. This is Resourcefulness.
The goal in this area is to release the 'Resourcefulness' (talent, creativity & enthusiasm) of all our people to achieve the main 3 goals. This ability must also drive the waste elimination & continuous improvement process throughout your organisation & through your supply chain. A key rule in this area is; sustain the gains, maintain the change.
(This Toyota programme is a wonderful example of the resourcefulness of their people. From the design of the new smaller style of factory with their no ‘hanging no digging’ features & surface mounted conveyors. To new paint plants that are smaller, 40% cheaper to build and use 40% less energy. Equipment that reduces pre-heat times on sheet metal parts from 5 mins to 15 seconds & now can preheat one piece. To Laser Screw Welding that can halve welding times.) —
A Japanese proverb sums up this attitude; When you have limited resources, make resourcefulness you resource.---
The third ‘R’ is ‘Respect’. Again this was missed by the original Lean thinkers. We must see 'RESPECT' as the password that gives access to the file that contains our people’s total ability (talent, creativity & enthusiasm). Without the correct password, access will not be possible. This is one of the key bonding elements between managers & their people.
The key rule in this area is; Star managers must make their people shine. --- Respect should not be seen as a 'soft-side' subject. A lot is given & a lot is will be returned. ---
(Respect is the essential element needed to achieve the full effect in the first 2 R’s)
When you apply this thinking not only to external & internal customer contact areas, but also down your supply chain, you will start to understand where & how Toyota’s amazing performance & competitive advantage is created. The new developments at Toyota illustrate the power & their mastery of the 3 R’s.
Mr. Sid Joynson