Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Activities
October 2002
TABLE OF CONTENTS
INTRODUCTION...............................................................................................................1
ACKNOWLEDGMENTS....................................................................................................2
PURPOSE.........................................................................................................................3
The Manual ................................................................................................................4
The Kaizen Activity Groups ........................................................................................4
Benefits for Staff.........................................................................................................5
STRATEGY .......................................................................................................................6
The manual....................................................................................................................7
Adapting the culture ...................................................................................................7
Facilitating process improvement...............................................................................7
Harness internal synergies.........................................................................................8
Global approach.........................................................................................................8
Summary....................................................................................................................8
Kaizen............................................................................................................................9
Dual focus ................................................................................................................10
ESTABLISHING GROUP GUIDELINES .........................................................................11
1.0 Preparing for Kaizen Activities ...........................................................................12
2.0 Kaizen Activity Group Responsibilities ...............................................................14
3.0 Other Reading and Related Information.............................................................16
KAIZEN REVIEW ............................................................................................................17
1.0 Plan.....................................................................................................................18
1.1 Plan What Definition of Problem and Analysis of Problem ..............................18
1.2 Plan Why Identification of Causes...................................................................21
1.3 Plan How Planning Countermeasures.............................................................22
2.0 Do Implementation..............................................................................................24
3.0 Check Confirmation of Results ...........................................................................26
4.0 Action Standardisation ........................................................................................27
CONTINUOUS IMPROVEMENT.....................................................................................29
Continuously improving ............................................................................................30
Future strategies and opportunities..........................................................................31
APPENDIX A...................................................................................................................32
Analysis tools...............................................................................................................32
Cause and effect diagrams ......................................................................................35
Histograms ...............................................................................................................37
Control Charts ..........................................................................................................42
APPENDIX B...................................................................................................................44
Contact List..................................................................................................................44
Toyota Customer Service Marketing ........................................................................45
Best Practices Team USA........................................................................................45
Global Best Practice Group......................................................................................46
Other References.....................................................................................................47
APPENDIX C...................................................................................................................48
Definitions ....................................................................................................................48
Common Language of Kaizen..................................................................................49
APPENDIX D...................................................................................................................50
INTRODUCTION
The Toyota Way was launched globally in 2001. Following this, Mr Hideo Ozaki,
President of Toyota Financial Services Corporation outlined a plan to focus upon building
the internal synergies and processes within each Sales Finance Company (SFC). To
facilitate the introduction of The Toyota Way, Global Best Practice Group (GBPG) was
established.
The GBPG consists of a representative Champion from each SFC within Toyota Financial
Services (TFS). A Regional Coordinator has been appointed for each of the four global
best practices regions: Asia/Oceania, Northern Europe, Southern Europe (including South
Africa) and Americas. Together this group reports to a Global Coordinator.
The focus of the GBPG is to champion the introduction of The Toyota Way concepts into
each SFC. These concepts are:
Continuous Improvement
Respect for People
This manual will assist you to achieve success through proven methods of Continuous
Improvement (Kaizen), a concept adapted from the world-recognised Toyota Production
System (TPS). This system has been responsible for the improving profits, quality and
delivery time of Toyota vehicles over the past 60 years. It has also provided a basis for
empowerment, encouraging factory staff to make improvements to their jobs.
Whilst TPS concepts have their roots in a manufacturing environment, they can also apply
to operations of SFC's. The task of translating these concepts has been a major challenge
and will also be subject to continuous improvement.
ACKNOWLEDGMENTS
This first release must acknowledge invaluable assistance and support in developing this
manual:
Hideo Ozaki President TFSC
Koji Kobayashi Executive Vice President TFSC
Larry Cannon Senior Vice President TFSC
Ross Springer President Asia/Oceania TFS
Ichrio Yajima Deputy Managing Director Australia TFS
Walter Leyendecker Chairman Europe/Africa TFS
Yoshihiko Morinaga President Europe/Africa TFS
David Betteley Vice President Europe/Africa TFS
George Borst President Americas TFS
Ken Arnold Managing Director Canada TFS
Nampachi Hayashi Executive Advisory Engineer TPS
The TPS group at Araco Corporation, Toyota Industries Corporation Takahama Plant and
Toyotomi Kiko Plant, Best Practice Team USA, and representative Champions and
Coordinators of Global Best Practices Group are also acknowledged for their participation
in the first year of GBPG.
PURPOSE
The Manual
TFS operates in an increasingly competitive market, where internal and external demands
require more than just the provision of goods and services. The increasing international
expansion of TFS and the changing nature of the business environment into the
technologically reliant economy have seen new opportunities evolve. To continue to
exceed customer expectations, the harnessing of synergies within the TFS global
community is paramount. Your contributions to TFS are recognised as important to the
company's success. This first release manual will assist you to become involved in groupbased activities where your contributions can result in improvements to your work
environment.
The manual is designed to be used in all SFC's by staff with a wide ranging skill set. The
manual will also provide a universal platform for information sharing and permit direct
comparison between SFC's. The building of Knowledge Management will eventually stem
from the use of this standardised process of Kaizen initiatives, involving concepts,
measuring, fact/data recording and eventual reporting to a GBPG.
The manual also gives a framework to help staff undertake Kaizen activities that qualify for
a TFS Global Kaizen Award. Further information is available in the Global Best Practices
Group pack, or from your Global Best Practices representative.
STRATEGY
The manual
TFS is looking to sustain long term growth. The company's strategic goals are focused
upon creating opportunities to make this happen. One such strategy has been the
formation of the GBPG. This group will contribute towards the goal of long term growth by:
Changing the culture of TFS
Facilitating process improvement
Harnessing internal synergies
Promoting a global approach
Methods of achieving this are briefly addressed below.
develop best practices or for established SFCs to compare and assess their ongoing
practices.
Global approach
This Kaizen Activity Manual contributes towards a global approach by:
Being a universally adaptable resource
Providing a common language for Kaizen
Providing a common platform for activities
Providing a universally comparable output
Summary
Kaizen Activity Group outcomes and activities will become comparable throughout the TFS
global community. This will improve:
Cultural adaptation
Facilitation of process improvements
Internal synergies
Global approach
Kaizen
The principles of Kaizen are:
1. the most important company assets are the people
2. evolution of processes will occur by gradual improvement rather than radical
changes
3. beneficial changes are to be implemented immediately where possible
4. improvement recommendations must be based on statistical and quantitative
evaluation of processes
The Kaizen Activity Groups support and encourage the principles of Kaizen.
Kaizen strategies are generally implemented at three different levels:
1. Management Oriented
2. Group Oriented
3. Individual Oriented
This activity manual will explain and address Group Oriented activities.
Briefly, the support mechanism of Group Orientated Kaizen activities will integrate with the
Hoshin Kanri from Management and a suggestion system from Individuals. These two
areas provide some meaningful guidance for Kaizen Activity Groups pre work activities.
Supporting the strategies of planning and staff development the Kaizen Activity Groups will
develop the skills of participants to a level where they may become group leaders for
future process reviews.
The manual is a resource that is to be used throughout the TFS family to ensure a
consistent approach to Kaizen training and application, provide a universal comparison of
activities and outcomes, and globalise Kaizen Activity Group practices.
Other than the incentives for Kaizen Activity Groups which are related to the
empowerment and participation of staff, increased job satisfaction and exposure to a
global concept, TFSC is also recognising and rewarding Kaizen activities. The next World
Sales Finance Conference will host the winner of a TFS Global Kaizen Award competition.
The winner will present their implemented Kaizen Group Activity to the Senior
Management and Country Managers of the company. (For further information see the
TFS Global Kaizen Award criteria)
The use of existing Policy and Procedure as a basis to move forward is paramount. Policy
and Procedure documents will explain the "as is" situation, and initiate the base of the
Kaizen activity. Kaizen Activity Group outcomes will in turn update and create new and
improved Policies and Procedures. These documents will form Best Practices within TFS,
9
and will build the platform for further improvement opportunities, by looking both within
TFS and externally.
Dual focus
During the identification stage of the activity, focus will be upon identifying problems in
processes. A method for this is to observe a job function in its entirety in order to measure
those aspects that add value, are incidental or wasteful. This will in turn identify processes
that can be improved upon or eliminated.
The group is structured to address and deliver:
1. Process improvements
2. Job function improvements
Processes that are improved will become Best Practices. Full utilisation of staff will
eliminate Muda and maximise value added work.
10
11
Project Management
Some basic statistical analysis
Microsoft Word
Microsoft Excel
Microsoft Visio
3. General Ledger
Research into submissions in a Kaizen suggestion scheme may also provide direction
for various areas of improvement.
1.3 Contribution the towards the attainment of Corporate Goals
Corporate Goals may consist of:
cost reduction
processing improvement
quality improvements
Usually Corporate Goals will stipulate a level of attainment required for the company
as a whole, and during the scope setting, the group can set itself a target to reach. The
Kaizen Activity Group should undertake work that is not only valuable for group
members but that will also contribute to the achievement of Corporate Goals.
1.4 Obtain all related Policy and Procedure documents
The base point for examination and analysis of processes commences with Policies
and Procedures. Current Policies and Procedures should be an accurate and relevant
reflection of the current process, "as is" and business rule. If Policy and Procedure
documents are outdated or inaccurate, the "as is" process will need to be established.
1.5 Identify major stakeholders in the area where the Kaizen Activity Group
propose to work
Prior to commencing work the Kaizen Activity Group must identify all stakeholders that
will be impacted by activity outcomes. The list of stakeholders may include:
operators in the business process for review
the supervisor and manager of the area
other departments with inter-related activities either prior to or after the process
area
senior management
A full list must be drawn up to facilitate communication throughout the activity.
Communication and involvement of stakeholders is an important aspect of successful
Kaizen Activity Group activities.
1.6 Obtain stakeholder support to the Kaizen Activity Group
Stakeholder meetings should be called prior to the commencement of the Kaizen
activity. The meeting should address issues such as:
scope of the Kaizen Activity Group
purpose of the Kaizen activity
role of stakeholders and Kaizen Activity Group
stakeholder concerns
expected length of the Kaizen activity
plan for future communication and involvement of stakeholders
13
14
Incidental work is non value added work which is necessary under present
working conditions
Value added work (Net work) is value added job operations that customers desire.
IMPORTANT: The addition of all parts will equal 100% of a process. Addition of all
processes will equal 100% of a job function.
15
KAIZEN REVIEW
17
1.0 Plan
The Planning stage is the initial stage where multiple activities occur to truly identify:
1. What the problem is
2. Why it is occurring
3. How to correct it
The reasoning for planning is to identify the root cause of an issue. It is not concerned
with improving the work created by the problem, but the reason for the original cause,
which may have formed several steps prior to its actual detection. The issue and the steps
taken during the planning stage may result in detecting the cause of a problem in a far off
environment to where the problem actually exists. This interrelated flow highlights the
effect of processes on the business, and should involve other stakeholders in the Kaizen
Activity Group communications.
By defining the problem, the scope of the Kaizen Activity Groups' activities is set. As a
definition, a problem is "a doubtful or difficult matter requiring a solution"1. The pre-work
18
undertaken has set the basic area and focus of where the Kaizen Activity Group will
commence.
An obvious problem in a process will be associated with Muda. The Muda is making the
process inefficient because of unnecessary actions, such as those listed next to the
diagram below. The detection of Muda in a process and the removal of this will give a
clearer picture, and will expose issues or problems in the process.
Categorising the work requires the definition of all the work that is undertaken by the staff
member during the working day. This includes value added work, incidental work and
Muda. The categorisation is not at this point concerned with a particular process, but is
focused on the efficiency of work undertaken by the staff member.
100% of all processes undertaken within a position must be recorded. A matrix should be
used to record the data as it will be referred to later when work on processes has been
completed, and improvements implemented. The matrix will separately list the processes
undertaken, placed into the three categories of value added, incidental and waste.
Addition of all the time in the matrix will add to the working hours, and therefore give an
indication of each category for improvement.
19
Summary
Areas reviewed
o Whole job function
o Processes
Defined the Problem by:
o Genchi Genbutsu going to the source
o Recorded the facts of the process
o Warusa-Kagen what is it that is not quite right with a process
Analysed the Problem by:
o Matrix revision of whole job processes (value added, incidental, Muda)
o Comparison to the "as is" process
o Comparison to the Policy or Business rules of the process
o Preparing the facts into graphs and models
20
Understanding "why" a problem has been caused is a key aspect in understanding what
countermeasures can be produced to correct the situation. When asking why, do not stop
at the first response. Ask "why" 5 times.
Asking "why" 5 times will result in a more in depth answer and understanding as to the
root cause. The root cause may have gone unnoticed until now and it must be pursued
even if it occurred in another area of the business.
Methods that support the analysis of data gathered to assist with the discovery of why an
issue has occurred are listed below. This is not an exhaustive list of mediums to display
results of analysis. It is at this time that statistical interpretation is required where the
graphs and charts will isolate problems and assist with identification of the root cause.
1. Pareto diagrams
2. Cause and effect diagrams
3. Histograms
4. Control charts
More detailed information is included in appendix A of this Manual.
21
Countermeasure
Increase
Increase
Decrease
Increase
Best Result
Zero Muda
100% Quality
Zero Cycle time
Zero Variations
22
The decision of how a countermeasure is to be introduced into the process also needs to
be considered here. If the implementation (the next stage) is to occur in a test
environment, that environment needs to be established, and organisation of resources as
to where other work goes during this time needs to be recognised. If the implementation is
to occur to the whole process, then sufficient support is required to ensure service levels
do not drop.
A "to be" decision can be pictured using the matrix of all parts of a job role. The way in
which the "to be" is executed will be the arrangement of job functions that add the most
value. When reviewing the "as is", the process can be arranged for improvement to the "to
be". The "to be" is the process that will be implemented to bring about improvement to the
process and address the issue and problems that have been identified for correction.
At this point, the implementation of countermeasures needs to be discussed with the
stakeholders.
23
2.0 Do Implementation
The Do part of PDCA is where the implementation of all that has occurred during the
planning process happens. For both the whole job function and the processes, the Do's
come from:
1. Immediately recognised improvements/countermeasures
2. More detailed and analysed improvements/countermeasures
Where the immediately recognised improvements/countermeasures are introduced, the
implementation of other countermeasures will usually require a quick measurement of the
improvement, and then a return to the planning process to understand the benefit
achieved by this implementation. The implementation may not bring a resolution to the
issue or problem identified, nor may it even bring about a reduction in cost or time, or an
improvement in quality or profit. It has simply made the working environment conducive to
more improvements, by substituting value added work for Muda.
More detailed and analysed improvements/countermeasures should now be executed as
per the plan. The plan should address:
Responsibilities for implementation
Responsibilities for results measuring
24
As would have been considered during the planning process, adequate time should be
allowed to measure the results of the implemented countermeasure. Determinants of what
amount of time is regarded as adequate include:
Is this implemented in a test environment
Is this implemented more broadly than in a test environment
Does the implementation affect other parts of the business
How complex or relatively simple the implementation is
It is recommended that the implementation of countermeasures should be undertaken into
an environment where there is little effect upon customers and other parts of the business.
This is recommended for two reasons:
1. There is no detraction from service to customers
2. There is a "test environment" created where immediate effects can be
observed, measured and adjusted
The effort exercised during the planning process should see that the countermeasures are
successfully implemented and result in the predicted and desired change. However in
some circumstances this is not always the case and further planning is required following
the implementation. This is covered in the Check.
As implementation is designed to improve and change a process or job role, this must be
done in strict consultation with the persons affected. These stakeholders should already
have been involved in some of the stages of the Kaizen activity already, even if they are
not a part of the Kaizen Activity Group. The Kaizen activity is now at a point of reliance
upon the persons affected, and if these persons are not properly briefed about and
understanding of the change, the passion and enthusiasm of the Kaizen Activity Group
may not be enough for them to appreciate the benefits of this change. Make all attempts
to address the concerns of the people now affected.
25
The Check is the measurement of the Do. This means that the countermeasures
implemented must be measurable. If they are not, there has been a failure in the planning
section. As is understood, if you can not measure it, it is not worth doing.
Result benchmarks that were gathered, observed, measured and recorded during the Plan
stage as the "as is" are now to be compared to the "to be" result. It is the "to be" result
that has been implemented during the Do stage, and is proposed to form the future "as is"
for other Kaizen activities.
As measurable countermeasures, checking should be able to determine:
Decrease in costs
Increase in quality
Decrease in rework
Decrease in cycle time
Increase in processes per period of time
Decrease in variations
Elimination of MUDA
The results of checking are some of the indicators for gauging the success of the Kaizen
Activity Group.
26
Recapping on the process; the planning has resulted in problems and issues being
identified at the root cause, countermeasures were developed to correct the issue at the
root cause and to increase value added work and eliminate Muda. These
countermeasures have been implemented, and their results have been compared and
measured against the benchmark "as is" and the "to be". The results from the measuring
are either:
Satisfactory
Unsatisfactory
Where the results are satisfactory, finalising the Kaizen Activity Group activity is required.
The following areas need to be completed:
1. Changes are implemented throughout the company where the processes are
undertaken
2. Resources are reallocated to either the increase in value added work or
elimination of Muda
3. Changes are documented into Policy and Procedure
4. Changes are documented into updated Process Maps
5. All stakeholders and staff affected are advised of the changes
6. Kaizen Activity Group finalise A3
27
Where the results of Checking are unsatisfactory, the Kaizen Activity Group is required to
revisit the Planning process to repeat the PDCA cycle. Before returning to the Plan stage,
the Kaizen Activity Group must complete the A3. The learning section of the A3 is a time
for reflection upon how the activity could have achieved different results. The reason/s for
unsatisfactory results are usually isolated to incorrect identification of the root cause to an
issue or problem. It may be that a root cause was identified, but that there was more than
one root cause. If however the root cause has been correctly identified, attention should
be turned to the countermeasures or their implementation. Countermeasures should
address the root cause. If the countermeasures do not do this directly, then they require
further development. If however they do, then the implementation may not have been
successful and have therefore skewed the results of measurement during the Check stage.
These are important lessons for the Kaizen Activity Group and future groups. By
documenting into the A3, learning and improvement to Kaizen Activity Groups can occur.
28
CONTINUOUS IMPROVEMENT
29
Continuously improving
Kaizen and PDCA is a continuous cycle as the following picture depicts. As the Kaizen
Activity Group is closing their activity, it does not mean that this process will now be
exempt from further process improvement initiatives.
The Kaizen Activity Group, through the process it has undertaken will leave a legacy of
learning in the business. This will permit the education and development of staff; not only
those who participated in the Kaizen Activity Group, but also those who were affected by
the change, to participate in future activities and contribute suggestions through the
acceptable medium within the SFC.
30
31
APPENDIX A
Analysis tools
32
Pareto diagrams2
The Pareto diagram will help to isolate the characteristics that are the major contributors to
a process. By isolating these features, a more focused approach can be taken upon the
process itself. The characterisation and isolation of parts to a process (the inputs) will also
assist determine the factors that are related to an issue.
Best application of Pareto diagrams
The Pareto chart is most suitable where problems are isolated. This does not mean that
the root cause of the problem has been identified; it is just that a problem is readily
identifiable, such as:
Complaints
Rework
Downtime
Errors
35
120%
30
100%
25
80%
20
60%
15
# of Errors
Percentage
40%
10
20%
5
0
0%
Deposit Check data Process
cheque
cheque
Logon to
program
The Pareto effect operates on the principle that 80% of problems usually stem from 20% of
the causes. Pareto charts are used to display the Pareto principle in action, arranging data
so that the few vital factors that are causing most of the problems reveal themselves.
Concentrating improvement efforts on these few will have a greater impact and be more
cost-effective than undirected efforts.
Things to look for
2
33
In most cases, two or three categories will tower above the others. These few categories
which account for the bulk of the problem will be the high-impact points on which to focus.
If in doubt, follow these manual lines:
1. Look for a break point in the cumulative percentage line. This point occurs where
the slope of the line begins to flatten out. The factors under the steepest part of the
curve are the most important.
2. If there is not a fairly clear change in the slope of the line, look for the factors that
make up at least 60% of the problem. You can always improve these few, redo the
Pareto analysis, and discover the factors that have risen to the top now that the
biggest ones have been improved.
3. If the bars are all similar sizes or more than half of the categories are needed to
make up the needed 60%, try a different breakdown of categories that might be
more appropriate.
Often, one Pareto chart will lead to another:
charts that break down the most important factors discovered in an earlier chart
charts that use different scales, such as number of complaints and the cost to
respond, with the same categories.
the average of all the values in the series, i.e. the average bar height.
the sum of all the values in the series.
34
35
becomes difficult to find and compare items that are the same distance from the effect
because they are dispersed over the diagram. With the tree structure, all items on the
same causal level are aligned vertically.
36
Histograms4
A histogram is a specialised type of bar chart. Individual data points are grouped together
in classes, so that you can get an idea of how frequently data in each class occur in the
data set. High bars indicate more points in a class, and low bars indicate fewer points.
The strength of a histogram is that it provides an easy-to-understand diagram of the
location and variation in a data set. There are, however, two weaknesses of histograms
that you should bear in mind:
1. The first is that histograms can be manipulated to show different pictures. If too few
or too many bars are used, the histogram can be misleading. This is an area which
requires some judgment, and perhaps some experimentation, based on the
analyst's experience.
2. Histograms can also obscure the time differences among data sets. For example, a
histogram of a process run tells only one part of a long story. There is a need to
keep reviewing the histograms and control charts for consecutive process runs over
an extended time to gain useful knowledge about a process.
Best application of histograms
The histogram is suited best where a large data set is held and requires comparison to
both upper and lower limit standards of TFS. The application builds the data into a
diagram (as above) and then it is compared to the standards of TFS, thereby addressing
variations. This process assists in producing regular standard levels in areas such as:
Time
Cost
Quality
Productivity
The SFC will need to determine the upper and lower benchmarks, as well as the mid point
of acceptability prior to detailed analysis occurring. The benchmarks should be aimed at
reducing variation in a process and delivering the best result possible.
37
Histograms require a level of mathematical ability, so prior to undertaking this analysis the
internal strengths of the group should be reviewed to ensure this method can be correctly
applied in practice.
Histogram statistics
For histograms, the following statistics are calculated:
Mean
Minimum
Maximum
Std Dev
Class Width
Number of Classes
Skewness
Kurtosis
38
If the histogram shows that the process is wider than the specification limits, then it is not
presently capable of meeting TFS specifications. This means the variation of the process
should be reduced.
Also, if the process is not centred on the target value, it may need to be adjusted so that it
can, on average, hit the target value. Sometimes, the distribution of a process could fit
between the specification limits if it was centred, but spreads across one of the limits
because it is not centred. Again, the process needs to be adjusted so that it can hit the
target value most often.
Centre of a Distribution
Processes have a target value (the value that the process should be producing) where
most output of the process should fall. The centre of the distribution in a histogram should,
in most cases, fall on or near this target value. If it does not, the process will often need to
be adjusted so that the centre will hit the target value.
Spread of a Distribution
The spread or width of a process is the distance between the minimum and maximum
measured values. If the spread of the distribution is narrower than the specification limits, it
is an indication of small variability in the process. This is almost always the goal, as
consistency is important in most processes. If the distribution is wider than the
specification limits then the process has too much variability. The process is generating
output that does not conform to specifications, and is therefore unwanted.
Shape: Skewness and Kurtosis
A "normal" distribution of variation results in a specific bell-shaped curve, with the highest
point in the middle and smoothly curving symmetrical slopes on both sides. The
characteristics of the standard normal distribution are tabulated in most statistical
reference works, allowing the relatively easy estimation of areas under the curve at any
point.
Many distributions are non-normal. They may be skewed, or they may be flatter or more
sharply peaked than the normal distribution.
A "skewed" distribution is one that is not symmetrical, but instead has a long tail in one
direction. If the tail extends to the right, the curve is said to be right-skewed, or positively
skewed. If the tail extends to the left, it is negatively skewed. Where skewness is present,
attention should usually be focused on the tail, which could extend beyond the process
specification limits, and where much of the potential for improvement generally lies.
39
Kurtosis is also a measure of the length of the tails of a distribution. For example, a
symmetrical distribution with positive kurtosis indicates a greater than normal proportion of
product in the tails. Negative kurtosis indicates shorter tails than a normal distribution
would have.
Taken together, the values for process centre, spread, skewness and kurtosis can tell you
a great deal about your process. However, unless you have a solid statistics background,
you will probably learn more from looking at the histogram itself than from looking at the
statistics. Remember that where there is data in the tails near a specification limit, chances
are that some non-conforming output is occurring. If your process is actually making five
outputs in every thousand, and you are sampling twenty in every thousand, it will take
some time before you find anything outside of the specifications. There are two things you
should do:
1. continue tracking data
2. make sure your sampling plan is efficient
Distributions you may encounter
The standard normal distribution, with its zero skewness and zero kurtosis. Focus
for improvement should be with any outlying results.
A skewed distribution, with one tail longer than the other. Focus for improvement
should be with the outlying results, most likely in the direction that the data is
skewed.
A double-peaked curve often means that the data actually reflects two distinct
processes with different centres. You will need to distinguish between the two
processes to get a clear view of what is really happening in either individual process.
A truncated curve (with the peak at or near the edge while trailing gently off to the
other side) often means that part of the distribution has been removed through
40
screening, 100% inspection, or review. These efforts are usually costly and make
good candidates for improvement efforts.
A plateau-like curve often means that the process is ill-defined to those doing the
work, which leaves everyone on their own. Since everyone handles the process
differently, there are many different measurements with none standing out. The
solution here is to clearly define an efficient process, standardise and remeasure.
Outlying results in a histogram bars that are removed from the others by at least
the width of one bar. Sometimes this may indicate that perhaps a separate process
is included, but one that doesn't happen all the time. It may also indicate that
special causes of variation are present in the process and should be investigated,
though if the process is in control before the histogram is made, as it should be, this
latter option is unlikely.
41
Control Charts5
Every process varies to some degree (both system managed and human related
processes). There is an inherent variation with each process, however through
management controls it should vary between predictable limits. For many processes, it is
important to notice "special causes" of variation as soon as they occur.
There is also "common cause" variation. In most processes, reducing this saves money
and produces a more reliant standard of output that customers expect.
There are many different subspecies of control charts which can be applied to the different
types of process data that are typically available.
All control charts have three basic components:
a centreline, which is usually the mathematical average of all the samples plotted.
upper and lower statistical control limits that define the constraints of common
cause variations.
42
Types of errors
Control limits on a control chart are commonly drawn at 3 (3-sigma) from the centreline.
3 limits are a good balance point between two types of errors:
Type I or alpha errors occur when a point falls outside the control limits even though
no special cause is operating. Tampering with data usually distorts a stable process
and wastes time.
Type II or beta errors occur when a special cause is missed as the chart is not
sensitive enough to detect it. In this case, you will proceed unaware that the
problem exists and thus unable to identify it.
All process control is vulnerable to these two types of errors. The reason that 3
control limits balance the risk of error is that, for normally distributed data, data points will
fall inside 3 limits 99.7% of the time when a process is in control. This makes the
Type I errors infrequent but still makes it likely that unusual causes of variation will be
detected.
If your process is in control, that is not necessarily good enough. You have to start
removing special causes, so that you have a stable process to work with. But then the
most substantial benefits occur when improving the process, so that common cause
variation is reduced.
The concept of Jidoka will assist here. Building quality into the process, supported by an
undertaking from the staff in the process that they will not pass on a defective result to the
next person is true Jidoka. For this to happen effectively, staff must be aware of what is a
defective standard, and the diagrams displaying the deviations greater from 3 will be a
good starting point.
43
APPENDIX B
Contact List
44
DIST
NAME
TITLE
TELEPHONE
U.S.A.
Lexus
310-468-3296
Jim_Anderson@toyota.com
Canada
TCI
Manager,
Service Process Development
416-431-8389
rebanks@toyota.ca
Australia
TMCA
61-2-9710-3333
john.cutler@toyota.com.au
Thailand
TMT
66-2-386-1126
ssuthong@toyota.co.th
Saudi
Arabia
ALJ
General Manager
Field Operations Tech. Training
02-678-3333
oraabioa@alj.com
Brazil
TDB
55-11-4390-5298
bruschi@toyota.com.br
South
Africa
TSAM
27-11-809-2247
cokayne@tsb.toyota.co.za
Belgium
TMME
Manager
After Sales Planning Department
32-2-7452737
Jose.Munoz@toyotaeurope.com
Venezuela
TMV
58-212-242-46-22
dlugo@toyota.com.ve
Malaysia
UMWT
03-55191911
ismet@umwt.toyota.co.jp
United
Kingdom
TGB
Manager
TSM Planning & Development
44-1737-363633
jon.micklefield
@tgb.toyota.co.uk
National Manager
Best Practices Group
310-468-3489
Jesse_zamora@toyota.com
U.S.A.
Toyota
45
COUNTRY
DIST
NAME
TITLE
TELEPHONE
U.S.A.
TMCC
Mr Ron Dockstader
Group Leader
1-310-468-6410
Ron_dockstader@toyota.com
Canada
TCCI
Mr Sylvain Gareau
1-905-513-5440
sylvain_gareau@toyotacredit.
ca
Argentina
TCA
Mr Jorge Sganzetta
SFC Champion
54-11-4341-7857
Jsganzetta
@toyotacredit.com.ar
Brazil
BTB
Mr David Cunha
SFC Champion
55-11-5504-2060
david_cunha
@bancotoyota.com.br,
U.S.A.
TMCC
Mr Jeff Miller
SFC Champion
1-310-468-6410
Jeff_Miller@toyota.com
Australia
TFA
Mr Mark Ramsay
TFC
Mr Takatoshi Ikenishi
61-2-9934-1204
(x 1298)
81-52-954-8171
mark.ramsay@toyota.com.au
Japan
New
Zealand
Thailand
TFNZ
Mr Matthew Bond
SFC Champion
64-9-571-4298
TLT
Ms Raewadee (Ming)
Chiraburanun
SFC Champion
66-2-636-1313
(x 701)
reawadee_c@tlt.co.th
United
Kingdom
TFSUK
Mr Martin Bates
44-1737-365542
martin.bates@toyota-fs.com
Czech
Republic
TFSCZ
Olga Genadievova
SFC Champion
420-2-227-2-2971
olga.genadievova
@toyotafinance.cz
France
TFSF
Mr Rene Laz
SFC Champion
33-1-47-01-6015
rene.laz
@tfrf.toyota-europe.com
Germany
TKG
Mr Juergen Huebinger
SFC Champion
49-2234-102-1805
juergen.huebinger@toyota.de
Mr Gabor Nagy
SFC Champion
Americas Region
Asia/Oceania Region
t_ikenishi@toyotafinance.co.jp
matthew.bond@tfs.co.nz,
Hungary
Italy
TFSI
Mr Armando Colin
SFC Champion
South
Africa
TFSSA
Mr Tony Ayling
SFC Champion
United
Kingdom
TFSUK
Mr Keith Doughty
Denmark
TFSD
Finland
gabor.nagy@toyota.hu
7-11-809-2039
tayling@toyfin.co.za
44-7831-480593
keith.doughty@lexus-fs.com
Henriette.Gamdrup
SFC Champion
45-44-85-03-33
Henriette.Gamdrup
@toyota-fs.com
TFF
Mr Jukka Korkiala
SFC Champion
358-9-8518-2269
Jukka.korkiala@toyota.fi
Norway
TKN
SFC Champion
47-32-20-8402
liv.rosengren@toyota-fs.com
Poland
TBP
Mr Piotr Lanzinski
SFC Champion
48-22-874-4757
piotr.lazinski
@toyotafinance.pl
Sweden
TFSSW
Mr Tommy Wretenlind
SFC Champion
46-8-622-3545
tommy.wretenlind
@toyota-fs.com
46
Other References
Toyota Consulting Group and the Toyota Global Knowledge Centre (located in the US
headquarters)
Monthly GBPG reports - for identifying possible process improvement opportunities.
Benchmarking printed material (many examples on amazon.com).
http://www.benchmarkingnetwork.com/
http://www.apqc.org/
http://www.globalbenchmarking.com/
http://www.iccbc.org/
http://www.qualitydigest.com/
47
APPENDIX C
Definitions
48
Kaizen
Hoshin Kanri
Warusa-Kagen
Standardised
Muda
Waste.
Jidoka
49
APPENDIX D
Process Mapping
50
Mapping a Process
The development of a Process Model can go through much iteration before it is complete.
First, the Process Model has to be created; then it is necessary to verify that the data has
been correctly entered into the Model. Next, a reality check must be conducted to
determine whether the Model is an accurate representation of what the organization
actually does. To pass the verification and reality check phases of Process Model
development, Process data must be viewed and analysed (with updates made to the
Model accordingly) Process Data are Data items that pertain to the attributes of Business
Processes. The Process data items are (but not exclusive to): Activities, External
Processes, Variables, Decisions, and Choices. The key to process is based upon
understanding four important concepts:
1. A Process is chronological. Accurate models must therefore be oriented on a
timeline.
2. Flow modelling should display how objects and/or data are transferred and where
they are going. The majority of business problems stem from interdependent
relationships, which are best identified in a flow chart.
3. A Process can be modelled in a hierarchical fashion and can be viewed from many
levels. That is, Processes can contain other Processes.
4. The Choices made for Decisions, which occur within a Process, determine which of
all potential paths shall be taken. It is vital to capture all potential paths of a Process.
Data collection for Process Modelling efforts can be an individual or a group effort.
Modelling a Process involves the creation of an Activity Decision Flow (ADF) Diagram,
which captures the inner workings of the Process. The boundaries (i.e., beginning and
ending) of a Process are defined first. If large in size, the Process can be broken down into
smaller Processes. Each of these smaller Processes will have its own detailed ADF
Diagram.
51
Stop
Stops: These graphical markers show that a particular path within the
Process has stopped. For the Design Flow variation of the ADF, they mark
the end of paths that are part of the Multi-Thread and Choice Box modelling
objects.
52
53
Fulfill
Customer
Order
Process
Customer
Order
Pack
Customer
Order
Product
Package Order
Rejected
Off Shelf
Enter
Customer
Order
Customer
Customer Rejection
Notice
Customer Order
Form
Assembled Product
Customer Order
Form C1
54