Lecture Notes: Toyota's Management Systems

Introduction

• Speaker: Takashi
• Topic: Toyota's Management Systems
• Focus on complexity in product development, specifically in the automotive industry

Product Complexity

• Software development in automobiles is highly complex:
  • Example: 787 aircraft has 6.5 million lines of code
  • Lexus LS has 100 million lines of code
• Modern cars have immense complexity (150-200 complexity level)

Toyota's Development and Production System

• Development Stages:
  • Planning Concept
  • Design
  • Real Engineering
• Production Stages:
  • Concept
  • Design
  • Production System

Importance of Early Phase Design

• Perfect design in early phases reduces need for improvement
• Toyota’s unique systems include:
  • Marketing
  • Sales
  • After-sales services

Application Beyond Automotive

• Toyota's management system applicable to various industries:
  • Hospitals
  • Fashion
  • Chemical
  • Biotechnology
  • Governmental areas

Tools and Improvement Efforts

• Toyota employs 92 documented tools
• Focus on Improvement Effort and OA (Obeya - Big Project Room)
• Quality into process due to issues from two years ago

Leadership and Motivation

• Concept by West Gan: "Show them, tell them, have them do it"
• Leaders should demonstrate tasks first
• Motivation is crucial and more immediate to improve than adding personnel
• Praise members for improvement activities

Western vs. Toyota’s Approach

• Western companies often focus on strategizing without immediate action
• Toyota emphasizes immediate action and quick feedback
• Long-term planning with PDCA cycles

Cultural Implementation

• Start with tools rather than management philosophy
• Tools = Method side approach; Management = Human side approach
• Visualize OB current status for higher perspective and accountability

Obeya (Big Project Room)

• Visualizes progress through two-color system (Red/Green)
• Encourages immediate action and accountability

Quality into Process

• Aim for occurrence and outflow prevention
• Focus on early phase quality measures to avoid final inspections

Tools for Global Development

• Use of Vcom tools for global collaboration
• Drawing design reviews and DRBFM for failure mode analysis
• Standardized processes and accountability mapping

Integral Approach for Lean Leadership

• Develop leaders using integrated tool sets (92 tools including visual boards)
• Tools should support planning, progress audits, and skill mapping

Practical Application

• Start from leadership level but can begin with critical projects
• Expand tools and processes to members
• Prioritize standardization and discipline for innovative products

Conclusion

• Innovative products require disciplined processes
• Encourage standardization even in complex jobs
• Closing advice: Employing Toyota’s methods can lead to significant improvements