Three Levels Of Culture - CCMM

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Three Levels of CultureArtifacts& BehaviorNorms& ValuesWhat we see, what a newcomer, visitor orconsultant would notice (e.g., dress,organization charts, physical layout, degree andformality, logos, and mission statement.What they say, What we would be told isthe reason things are the way they areand should be. Company philosophy,norms and justifications.Underlying AssumptionsWhat they deeply believe in and act onUnconscious, taken for granted beliefsabout the organization and itswork/purpose, about people, rewards etc.Based on Edgar Schein, “Coming to a new awareness of organizational culture,” pp. 375-390 in J.B. Lau and A.B.Shani, Behavior in Organizations, Irwin, 1988

Company GoalsEmployee GoalsProfitLong TermSuccessContribute toEconomyA PaycheckGrowthLong TermMutualProsperityContribute toSocietyGood BenefitsA SafeWorkplaceMeaningfulWorkGood QualityMutual Trust

A Partnership between an Organization & itsEmployeesOrganization provides Stable Employment &Sustains or Improves Working ConditionsOrganizationalProsperity ershipMutual TrustContinuousImprovementEmployeesSatisfaction isexperiencedthrough theContinuousImprovementProcessEmployees Contribute Efforts to RealizeCompany Objectives

Make problems and opportunities for kaizen d Work, 5-SPDCAVisual Control (Andon, Line-stop, Visual Management)Problem Solving (Daily Activities, QC Circle, Suggestions)

The Toyota WayTHE TOYOTA WAYRespectfor PeopleContinuousImprovementTeamworkRespectby concentrating knowledgeof each & every employeefor the benefit of allcustomers & stakeholdersChallengewe strive to realizeambitious goalsGenchiGenbutsuthrough steady, fact- drivenprogressKaizenValuesToyota Basic Business Practicespursuing highest standards ofexcellence guided by bestpossiblePracticescourse of action

Identifying Lean CoreCompetenciesThinking and Operational Abilities Grasp the SituationProblem SolvingProcess ManagementCompany Business PerspectiveDevelopmentOperational and Technical Skills

Identifying Lean CoreCompetenciesLeadership & Teamwork Abilities Coordinate and Communicate Collaborate and Cooperate Initiate and Influence Build and Maintain Relationships

Phase 1Advertizing & Recruitment142,000ApplicantsPhase 2Orientation, Application & Testing28,000PassedPhase 3Assessment Center12,000PassedPhase 4Final Screening8000PassedPhase 5Assess Health &References6000Job OffersPhase 6ProbationOriginal Recruitment to SelectionProcess for Georgetown, Kentucky

Example on-line Simulationfor Second Phase Testing

Applicant doing simulated “welding” exercisein the Assessment Area

Step-by-Step Progression to Stable JobPerformanceID Fundamental Skillsfor a Class of jobsTrain in Fundamental Skills offof Line (GPC)ContinuouslyImprove Job &Job InstructionJob Breakdown to WorkElements for Specific JobOff-LineSkills TrainingUse Toyota Job Instruction(TJI) to Train AssociateOn-JobDevelopmentFollow-up & Supportuntil Masters Job

Example Video Manual

Example Simulated JobsPainting requires rhythmand precisionSimulations and ImageTraining make hiddenwork visible

THE OBJECTIVES OFSTANDARDIZATION Reduce variability, increase predictabilityEnhance repeatability, confidence, consistencyClarify proceduresEnhance communicationImprove Problem SolvingSet good disciplineDevelop awarenessEstablish “Problem Consciousness”Establish a basis for education and trainingEstablish a baseline for performanceImprove Quality, Safety, Delivery, CostProvide the basis for Improvement

The Four Steps of JITStep 1: PREPAREWORKERStep 4: FOLLOW UPActionPlanMajor StepsKey PointsCheckStep 3: TRY OUTPERFORMANCEReasonsDoStep 2: PRESENTOPERATION

Sample TMMK New Hire Training Program20082010PHASE I: New Hireor TemporaryOverview:2013PHASE II:TMMK New HireEach Step:Plan ClassroomTrainingDo OJT/HomeworkAction ExtendAssignment Check Assess./Evaluation Skills/Pay*External Hire*Catch-up *Safety*Values*TPSStart 4/3/2006*Teamwork*STW*QC Tools*PDCA*A-3*ProblemSolving*STW II.*KPIÕs*Visual.Control*Ergonomics*Two on*BusinessDirection*STW tation*STWReadyto Hire2 yearsOJT/Production ExperienceGrow-inComplete5 years

Toyota Training and DevelopmentGeneral Manager and VP LevelBusiness Planning and PolicyDeployment Tools: Hoshin Planning& Toyota Business Practices (TBP)Manager LevelFocus on Shop Floor andSystems Improvement.Tools: Visual Factory & TBPTeam Leader and Group LeaderManage Standardized Work, ProcessImprovement and Develop ProblemSolving Skills. Tools: FMDS, TBP & OJDTeam MemberFocus on Fundamental Skills & Standardized WorkTools: Skills Training, Job Instruction, Standardized Workand 5-S

What is a problem in lean?In Lean, we appreciate problems! They are consideredopportunities for Kaizen. We need to aggressivelyuncover them.Finding problems is the first step for problem solving.Otherwise there will be neither Kaizen ideas norevolution in the future.At times it is our tendency to ignore or mask problems, inhopes they will disappear. This action could lead toincreasing costs and muda.“No one has more troublethan the person who claims to have no trouble.”(Having no problems is the biggest problem of all.)Taiichi Ohno

Western versus Toyota View of ProblemsTraditional WesternWhat is a problem?Result of someone messingupWhat is the cause?Individual (5 Whos)Who is responsible?Person who makes mistakeWhat should individual who Solve problem on own ifmakes mistake do?possibleAssumptions about PeopleThey will not accept blameunless forced toProblem solving skillSome have it, some donÕtToyotaDeviation from standardSystem (5 Whys)ManagementCall attention to problemfor assistance and to avoidthe problem in the futureThey will feel empowered ifthey get positive support forsolving problemsIt can and must be taught

PDCA in our Daily WorkBusiness PlanningProject ManagementProblem Solving/KaizenAPGtSPADaily WorkGTSC DDCTLSOOTOOLSA-3 ReportA-3 Action Plans-Master ScheduleHoshin Kanri

Toyota Continuous Improvement CultureEngineers & Pilot TeamsCreate Initial StandardsLearning fromPast ProblemsBroader ProblemSolving to Level UpSystemContinuousImprovementWork Team RootCause ProblemSolvingImproves StandardsWork Teams Workto Standard andDetect DeviationsFrom StandardsWork TeamsContainDisruptions toProductionUnderlying Assumption: Human and Technical Processes are interrelated and dynamic so initialdesigns are only a rough starting point which must be continuously improved by every team member.Results: High levels of engagement at all levels in the actual process leads to continuousstrengthening of the system and high congruence between expectations and reality.

Three Stages of Problem SolvingMaintenance KaizenKaizen“Maintaining”“Raising”New GoalGoal“Reaching” Problem Solving that focuses Problem Solving that results ingetting to the goal. Must establish standards and traint o the standards. Strict follow-up.on maintaining the goal. Establish system / procedures tomaintain the standards Problem Solving that focuseson increasing capability beyondthe goal or to achieve a newgoal- “Kaizen”. Make efforts to challengeand improve upon thestandards.

Toyota Business Practices (TBP)Concrete Actionsand ProcessesPDrive and Dedication1. Clarify the Problem Customers First2. Break Down the Problem Always Confirm the Purpose of3. Target SettingYour Work Ownership and Responsibility4. Root Cause Analysis Visualization (MIERUKA)5. Develop Countermeasures Judgment Based on Facts6. See Countermeasures Think and Act PersistentlyD 6.2:ThroughFigureToyota Business Practices (TBP) is the RevisedProblemSolving SpeedyAction ina TimelyMethodC7. Monitor Both Results andProcessesManner Follow Each Process withSincerity andCommitmentToyotaÕs new TBP method has two partsŃ the method describedas Ņconcrete actions andSuccessful Thorough CommunicationprocessesÓand the approachdescribed under Ņdrive anddedication.ÓThere is a lot inA 8. StandardizeProcessescommon with the older practical problem solving method.BothAllarebased on the Plan InvolveStakeholdersDo-Check-Act model and based on management by fact. A few subtle differences makea big difference in some cases. One of the biggest is Ņbreak down the problemÓwhich

Deepening Cycle of Learning andCommitmentAttractInspireNew New JobEngageDevelopDevelopAttractAttractNew JobEngageInspireNew JobInspireAttractDevelopEngage

Family and Community FocusRelationship with Members &The Company A Caring Company9Flower Fund9Grief Committee9Birthday Cards

Family and Community FocusRelationship with Members &The Company Eliminating Social Distinctions9Same Dress Code (Uniforms)9Same Parking Lot9Same Restrooms9Same Lunch Room9Open Offices

Teamwork Organizational Structure Span of Control Horizontal and Vertical Alignment

Teams and Work Groups are Basic Unit of Toyota OrganizationCustomerValueInputsTM TMTMTM TMTM TMTMTM TMTM TMTMTM TMTM ily Management System 5 minute meetings Visual Tracking 5S Audit Standard work Audit Problem ID/Datacollection during shift Problem solving teamsafter shiftGroupLeaderGroup Objectives Achieve Annual Hoshin Perfect Safety Perfect Quality Reduced Cost Improve Productivity Daily KaizenTM TM

Matrix Organization(PRODUCTS X FUNCTION)Manufacturing DepartmentsPOWERTRAINPAINT/PLASTICSBODYGENERAL ASEMBLYPURCHASINGFUNCTIONAL DEPARTMENTSQuality ControlCost ControlProduction ControlLegalSafetyHuman ResourcesIN-HOUSE PRODUCTSOUT-SOURCEDPRODUCTS

ESI PROGRAMEarly Symptom Intervention1InjuryT/M must go to IHSPainDiscomfortESI stageDifficulty on ProcessFirst Prevention, then ID abnormality at first opportunity

Example symptoms in hands and wristSymptomsPostures/movementsPins &needles/numbnessto the medialaspect (littlefinger side) of thehand/fingerProlonged flexion Hammering withor extension of the hand pressurearound the base ofwristthe thumb or sideof handForces/loadsCheck forPoor parts fitTool not used orunavailableNo fixtures tohold work steadye.g. pushing infuses whileholding box

Example Ergonomic Guidelinefor Push Force for Part AssemblyItemSketchPush withthumbShould NotExceed¾ 3 kgIdeal Value 1 kgfCriteriaPurposePushing withthumb wheresurface area 30mm2(approx areaof a finger tip).If a digitcannot besupported, alimit of 1 kgpush isrecommended.The structureof thefinger/thumbtips is notsuitable forabsorbinghigh contactstresses,which canresult in injuryto the nerves,tendons andligamentsDesignApplicationWhere forcesexceedguidelinealternativesmay be toreduce therequired forceor to improvethe grip orsurface areaso greaterforce may begeneratedsafely.TypicalPart/ExampleMeasurement CriteriaSingle clipGrommetMeasured using a push/pullgauge or load cell.Measure should reflect asclosely as possible productionconditions such as timerequired to complete & line offorce

ESI Operating GuidelineSummary of Key StepsT/m first report of discomfort/difficultyInitiate ŅNew CaseÓand gather basicinformationInvestigationCountermeasure PlanCountermeasure Implementation Š Shortterm/temporaryAssessment by Rehab Consultant for all casesopen 10 days completed by no later than Day15*Countermeasure ImplementationCountermeasure ConfirmationTiming 24 hours 2 workingdays 5 workingdays 10 workingdays 10 15working days 20 workingdays 20 tESIRehabG/LT/MT/MSectMgmtESI/G/L* Up to the 10th day assessment by the Rehab Consultant is optional. All cases opengreater than 10 days must be assessed before the 15th day.DefinitionsESI Case Š T/M who has reported signs of discomfort/difficulty as the result ofcumulative stresses.ESI Team Š A t/m or t/mÕs designated by a sectionÕs management to support the ESIProgram.Rehab Consultant Š A medical provider assigned to support the ESI Program.Cumulative Injury Š Injury or disorder arising over time from repeated exposure tophysical stressors.Acute Injury Š Injury resulting from a single traumatic event.(Source: Internal TMMK Document on Operating Procedures for ESI)

Two Way Communication Company Communicating to Members Members Communicating with theCompany Members Communicating with each other

Types of Meetings andStandard Frequency and ch BoxFrequency/Length PurposeAsst. Managerand PlantManagerTown HallMonthly/1 hourDaily/5 minutesDaily/5 minutesMonthly/1 hourAsst GeneralLunch BoxManager andGeneral ManagerMonthly/45 minsVP and PresidentQuarterly/90minutesRoundtableSafetyKPIÕs & discussionIdentification snd PDCA of groupissues with assignment andtrackingState of the Department and opendiscussion, with tracking thecountermeasures of identifiedissuesA random selection of 5-6 teammembers at a time to buildrelationships and ID and resolveissues.A random selection of all teammembers, with 25-30 members ata time, meeting with the Presidentfor sharing of companyinformation and open discussionto ID member issues

Model of Effective Two-Way CommunicationContinuousImprovementRespect wAndRevisit PlanMeYouMutualTrust andRespect3.MonitorandMeasure2.CultivateIdeas

Toyota Way Leadership Servant LeadershipSystem of Checks and BalancesValues Report CardPeer Review Process

Servant LeadershipLeadership develops the capacity that allows teammembers to improve what needs to be doneSuppliers --------Team Members ---------CustomersTeam LeadersGroup LeadersAsst Manager and ManagerAsst & General ManagerVice PresidentPresident

Manpower/PhilosophyThe purpose of HumanResources is to embodymanagement, that respectspeople creating continuousprosperity, for thecompany.

Role of HRFair & Consistent Policies andPractices Ensure no favoritismMaintain work disciplineConsistent and Fair disciplineControlled attendanceCheck Action – Trust Audit

Recognition & Corrective Action Company and supervisor recognizingquality work Trust economy vs. Entitlement Economy Company recognizing sub standard workor unfair work practices and addressing it Members having the ability to recognizesub standard performance and unfair workpractices and getting it addressed (checksand balances)

Wage & Benefit Philosophy Support employment security Stable pay program – avoid fluctuations Remain competitive within the industry Reflect overall company performance Promote & reward continuousimprovement

Compensation Graph12%5%83%BaseBonusPerformance Award

Comparison between MBO andHoshin KanriManagement by ObjectivesHoshin Kanri Results Oriented Evaluation ofEffort Concerned with both Resultsand Process of getting thoseResults Top down Communication Top down Direction Setting andBottom-up flow of Informationand means Directive Participative Primarily Authority Oriented Primarily ResponsibilityOriented

Comparison between MBO andHoshin Kanri (cont.)Management by ObjectivesHoshin Kanri Linear-A one shot Image ofeffort to reach the Goal(No feedback, no secondchance, just start over fromscratch each time) Circular/spiral Focus Considerprimarily on Targetson Control of Resources,People, and Resultsimage of howto reach a Goal(Add feedback loop andchance for improvement)entire situation(Target and Means) Focus Focus Seeking SeekingInformation relatingto Outcomes when checkingon checking on Process,Control of Resources andDevelopment of People to getResultsInformation relatingto what has happened whenchecking45

Hoshin KanriCompany HoshinspeReHoshin Kanri porrHo shyaninpomocbuesssininownofHos hIndividual PriorityThemesntOJDtioDepartment Hoshinppei buto utrona kdycB renbDivision HoshinHorizontal AlignmentP/Sti n gib uh owVertical AlignmentFunction Hoshinn trCole seopDirection Managementct fCompanyHoshin

Company Hoshin(for Long-term Prosperity)PADCHoshin KanriPAPD ACCPProblemSolvingAPPCD ACADCDCPPDOJDPD ACADAPDCADCThe Origin of Toyota’s Strength

Visual Management System A comprehensive system that aligns floormanagement and development activities toachieve company targets by: Aligning Hoshin shop floor activities with Hoshin goals/objectives Visually demonstrating: The management condition of the shop. Alignment of daily activities to Hoshin targets. Promoting two-way communication, creating the environment to:Address abnormal conditions through targeted problem solving. Determine needed support and resources. Develop team members.

VMS Components Effective Shop FloorManagement Focuses on buildingan effective, visualmanagement systemto help the groupachieve Hoshintargets. Team Member SkillDevelopment– Activities and toolsto help develop TMscapabilities toperform STW andachieve dailyproduction goalswith safety andquality.

Team Board for Floor Management Development System

Quality Section of Team Board for Floor Management Development System

Building the human system model in your organizationWhatHowUse Lean Projects as a Vehicle forDeveloping People and CultureSensei role is to challenge, support and teach by challenging student, not doing theprojects. Projects must be viewed as teaching tool, not simply ROI.Build deep models, while spreadingtools broadlyMust commit to certain processes or mini-value streams to go deep building asystem and developing people, while applying tools more broadly.Senior leaders take a serious look atthemselves and their motivesSenior leaders must change before they can expect others to change--requiresreflection, offsites, leadership coaching.Develop Daily Management Systemsstarting in the models then spreadingA minimum of stability and TPS tools must be in place before the supervisors canbe coached to the point of establishing a daily management system.Change supporting HR systems atfirst to eliminate barriers todevelopmentStart with very targeted changes in HR system such as job instruction training,adding broader metrics and eliminating those obviously conflicting with leansystems, eliminating obvious disincentives in reward system, and adding symbolicawards like awards and ceremonies.As the lean effort and organizationmatures add in hoshin at a high levelHoshin requires sound plans at the top that are challenging, yet achieveable andthe problem solving capability to achieve the stretch targets. This requires adegree of maturity.As the organization matures addsupporting HR structuresStructural changes such as career planning, pay and benefit systems, systems forfair treatment, active HR roles in all promotions and pay increases should becarefully considered and gradually adapted to the local condition.Continue reflecting, planning, andimprovingThe goal is to make this a natural part of the culture.

Traditional Company Approachto Lean Six Sigma DeploymentPhilosophyLowest Unit CostPerformance MeasuresPrincipleProject ROI, Movement ofKPIs. Total cost savingsLean & Six Sigmareduce costStrategyDeploy lean & sixsigma initiativesacross the enterpriseToolsLean and Six Sigmacomplementary toolkitsMethodExecutives delegate tolean six sigma expertsdeploy lean projectsReasonTogether lean and six sigmareduces inventory costand operating costControl MethodEffectKPIs tracked,management reviews,reportsProjects save , butonly localizedimpacts and onlyblack belts developResultShort-term costsavings, changes notsustainable, churningand instability ofcompany and culture

Toyota Approach to Developing the Toyota WayPhilos ophyKaizen & Respect for PeoplePerformance MeasurementSafety, Morale, Quality,Cost, DeliveryPrincipleQuality People ContinuouslyImprove SystemStrategyQuality PeopleValue StreamResultKey Lean ToolsStd Work, JI TrainingGPS, Floor mgmt system,Andon, Problem

T/M ESI/G/L * Up to the 10 th day assessment by the Rehab Consultant is optional. All cases open greater than 10 days must be assessed before the 15 th day. Definitions ESI Case Š T/M who has reported signs of discomfort/difficulty as the result of cumulative stresses. ESI Team Š A

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