toyota production system problem solving model

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How to use Toyota’s legendary A3 problem-solving technique

Georgina Guthrie

February 21, 2020

If you came home one day and found your kitchen taps on full-blast and your house full of water, what’s the first thing you’d do? Grab a bucket and start scooping — or turn off the tap?

When it comes to problem-solving, many of us take a rushed, reactionary approach rather than fixing the issue at the source. So in other words, we see the water, panic, and start scooping. If this sounds like something you’ve done recently, then don’t feel too bad: when the pressure’s high, we often jump towards the quickest fix, as opposed to the most effective one.

This is where the A3 technique comes in. It’s a problem-solving approach designed to efficiently address the root cause of issues.

What is the A3 technique?

The A3 technique is a structured way to solve problems. It’s part of the Lean methodology , developed by Toyota back in the mid-’40s. This doesn’t mean you need to implement a Lean way of working to take advantage of this process — it can work as a standalone exercise.

Granted, A3 isn’t an inspiring name, but the story of its origins is actually pretty interesting. Rumour has it that Taiichi Ohno, inventor of the Toyota Production System, refused to read past the first page of any report. In response, his team created A3 address and summarize problem-solving on one side of A3-sized paper. The A3 technique played a huge part in Toyota’s success and all kinds of industries have since adopted it. Here’s how to get started.

How to solve a problem with A3

The first thing to remember is this: A3 is collaborative and relies on good communication. It’s not something you should do by yourself.

There are three main roles involved:

• Owner (that’s you or someone under your charge)

As you’ve probably guessed, these aren’t roles that already exist in your company; you must create them for the purpose of this process. Here’s what they mean.

The owner is responsible for leading the exercise. They are the lynchpin between the two other roles, fostering good communication and keeping documents up to date. It’s tempting to think of the owner as the head of this trio, but that’s not true: everyone is equal here.

The mentor is someone with solid  problem-solving experience. It’s their job to coach the owner and steer them towards finding a solution. It’s not their job to find the answers themselves.

And finally, there are the  responders . This is someone (or a group of people) who have a vested interest in the outcome of the A3 project. Responders might include the client, stakeholders, or managers. A potential problem here is gaining access to them: if you work somewhere with a strict hierarchy — and you’re somewhere near the bottom of that structure — you may face challenges. There’s no easy way around this. Essentially, you need your organization to support this way of working and make it easy for you to access those at the top if needed.

How to create an A3 report

True to its origins, the A3 report is a one-page document. It typically contains 5-7 sections that systematically lead you towards a solution. These are the most commonly used steps, but feel free to modify them.

• Background:  Explain your project in a few sentences, including its context.
• Problem statement:  Explain the current problem. You can use process mapping to see the different tasks that surround the issue. This isn’t essential, but it will make it easier for you to locate the root cause.
• Goals:  Define your desired outcome, and include metrics for measuring success. You won’t know everything until you reach the end, so you may find you need to come back and refine stages 1-3.
• Root cause analysis:  This is a big stage of the process. You need to work out what you think the root problem is. You can use different methods to help you here, including 5 whys or a fault tree analysis .
• Countermeasures:  Once you’ve worked out your root cause, you can start proposing solutions.
• Implementation:  Work out how you’ll implement these solutions, including an action list with clearly defined roles and responsibilities. Project management software is a useful tool here because it can help everyone on the team track each other’s progress in real-time.
• Follow-up:  Using your metrics for success, decide whether the problem was solved. Report your results back to the team/organization. In the spirit of Lean (continuous improvement), you should go back and modify your plan if the results weren’t as expected. And if they were, you should make this process the new standard.

Final thoughts

A3 is an efficient, methodical way to solve problems at their source. When issues rear their head, rising stress can lead people to panic. Having a clearly designed system in place to guide you towards a solution minimizes the chances of people settling for a ‘quick fix’ or failing to act altogether.

Beyond being a guiding light in times of pressure, A3 is a great team-building exercise because it encourages individuals to work together towards a common goal — across all areas of the organization. Combine this with collaborative tools designed to help teams track progress and work together more effectively, and you’ll be unstoppable.

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• Guide: Toyota Production System (TPS)

Daniel Croft

Daniel Croft is an experienced continuous improvement manager with a Lean Six Sigma Black Belt and a Bachelor's degree in Business Management. With more than ten years of experience applying his skills across various industries, Daniel specializes in optimizing processes and improving efficiency. His approach combines practical experience with a deep understanding of business fundamentals to drive meaningful change.

• Last Updated: July 27, 2023
• Learn Lean Sigma

The  Toyota Production System  (TPS) is a game-changing manufacturing approach that has redefined efficiency and quality. It is a Toyota-developed system that focuses on reducing waste, increasing productivity, and maintaining high-quality standards. This guide delves deeply into TPS, from its fundamental principles and underlying philosophy to the tools and techniques that drive its implementation. We will also look at the system’s outcomes, benefits, and drawbacks, as well as offer advice on how to implement TPS in your own organization.

Table of Contents

Introduction to the toyota production system.

Assume you’re preparing sandwiches for a party. You don’t want to make too many and waste them, or too few and leave your guests hungry. You’d want to make the perfect amount at the perfect time. In a nutshell, this is what the Toyota Production System aims to achieve in the manufacturing world.

The TPS is a method of organizing manufacturing and logistics in order to reduce waste, inconsistency, and unreasonable requirements, resulting in increased productivity. The goal is to efficiently produce high-quality goods while responding quickly to customer needs. This approach has changed the way businesses around the world think about production, making it an important contribution to the industrial world.

Let us now return to the mid-twentieth century, when TPS was born. Toyota, a Japanese automaker, was contending with limited resources and the need to compete with larger, more established Western automakers. They needed a new manufacturing strategy to help them catch up. This resulted in the creation of TPS.

The system was critical in Toyota’s transformation from a small company to the world’s largest automaker. It enabled Toyota to produce a wide range of vehicles in much smaller quantities for each model while maintaining productivity. This adaptability, combined with the system’s emphasis on continuous improvement and waste elimination, proved to be a game changer not only for Toyota, but for the entire automotive industry and beyond.

TPS has since been adopted and adapted by countless companies across a wide range of industries worldwide, making it a cornerstone of modern manufacturing and logistics. Its principles have proven to be effective time and again, highlighting its historical significance as well as its ongoing relevance in today’s dynamic business environment.

Philosophy Behind TPS

The Toyota Production System is more than just a more efficient way of producing cars or any other product; it is also a deeply rooted philosophy that guides how work is done. This philosophy serves as TPS’s backbone, supporting and guiding everything else.

This philosophy is based on two central concepts: continuous improvement and respect for people.

Continuous Improvement is like always trying to make your favourite recipe even better. It entails constantly looking for ways to improve efficiency, produce higher-quality products, and eliminate anything that does not add value (waste). This concept is known as “Kaizen” in TPS. It’s all about making small changes that add up to big gains over time.

Respect for People , on the other hand, entails treating everyone involved in the production process with dignity and respect, from factory workers to company executives and even customers. It is about creating an environment in which everyone’s voice is heard and their contributions are valued. It’s also about being a responsible member of society by producing safe, high-quality products while minimizing the negative environmental impacts of production.

TPS combines these two concepts. Respecting people fosters an environment in which everyone feels empowered to contribute to ongoing improvement. And by constantly improving, you create better working conditions and products that benefit both people and society.

So, while TPS is frequently discussed in terms of tools and techniques, it’s critical to remember that they’re all based on a foundation of respect for people and continuous improvement. TPS would not be the transformative system that it is today without this philosophical foundation.

Core Principles of TPS

The Toyota Production System (TPS) is based on several key principles that work in tandem to make the system unique and effective. Consider these principles to be ingredients in a recipe; each one is required and contributes to the final product.

Just-in-Time (JIT) manufacturing:

Just-in-Time is like cooking your pasta so that it is ready when your guests arrive for dinner, not before or after. JIT manufacturing refers to producing only what is required, when it is required, and in the exact quantity required. The goal is to reduce waste caused by overproduction and storage while also responding quickly to changes in customer demand.

Assume you’re a toy manufacturer. You wouldn’t make a bunch of toys and store them in a warehouse hoping they’d sell with JIT. Instead, you’ll begin production when customers place orders, and you’ll only produce enough to meet those orders.

Jidoka (Autonomation):

Jidoka is similar to having a smoke detector in your kitchen—it alerts you when something begins to burn, allowing you to stop cooking and avoid a disaster. Jidoka in TPS means that machines are designed to detect problems and stop automatically when they occur. This prevents the production of defective products and allows workers to address the issue immediately.

Consider a machine that manufactures car parts. If the machine starts producing defective parts, it will immediately stop. This allows workers to address the issue before more defective parts are manufactured.

Heijunka (Leveling):

Heijunka is similar to planning your weekly meals to ensure you have a balanced diet. TPS refers to balancing the production schedule so that a consistent amount of different products are produced each day, rather than producing a large quantity of one product one day and another the next. This contributes to a smoother workflow and less strain on people and machines.

For example, if a factory produces both cars and trucks, they will not produce all of the cars on Monday and all of the trucks on Tuesday using Heijunka. Instead, to balance the workload, they will produce a mix of cars and trucks every day.

Continuous Improvement (Kaizen):

Kaizen is analogous to attempting to beat your personal best time in running. It entails constantly looking for ways to improve, no matter how minor the improvement may appear. TPS defines Kaizen as “constant, small improvements to processes that can lead to significant improvements over time.”

Workers, for example, may suggest a new way to organize their tools that saves a few seconds of work. While this may not appear to be a big deal at first, those seconds add up over time, resulting in significant time savings and increased efficiency.

Each of these principles is important in TPS because it helps to reduce waste, improve efficiency, and ensure the production of high-quality products.

Tools and Techniques of TPS

Toyota Production System (TPS) principles are implemented using a variety of tools and techniques. These tools, like kitchen utensils, each serve a specific purpose and aid in the preparation of a meal.

Kanban is analogous to bringing a shopping list to the grocery store. It is a visual tool that aids in workflow management by signaling when new work should begin or inventory should be replenished. A Kanban in a factory could be a card attached to a box of parts. The card is returned to the supplier when the box is empty, indicating that more parts are required.

Andon is analogous to the red light on your car’s dashboard that illuminates when there is a problem. It is a visual aid that indicates when an issue occurs during the manufacturing process. This could be a light on a machine that illuminates when it stops working or an alarm that sounds when a quality problem is detected. It allows everyone to see when and where problems occur, allowing them to be addressed as soon as possible.

Poka-yoke functions similarly to a round peg that can only fit into a round hole in that it prevents mistakes from occurring in the first place. This could be a tool that only allows the correct assembly of parts or a scanner that checks barcodes to ensure the correct parts are used. Poka-yoke contributes to high-quality products by preventing errors.

SMED (Single-Minute Die Exchange):

SMED is like being able to switch from baking cookies to baking a cake in your kitchen in a matter of seconds. It’s a manufacturing technique for shortening the time it takes to switch from one product to another. This enables smaller production batches and greater responsiveness to customer demand.

Each of these tools and techniques is essential in TPS. Kanban and Andon aid in the implementation of Just-in-Time and Jidoka by signalling when work should begin or when issues arise. Poka-yoke ensures high-quality products by eliminating errors. SMED also improves flexibility and efficiency by shortening setup times. These tools, when used together, aid in the implementation of TPS principles in factory operations.

Outcomes and Benefits of TPS

The Toyota Production System (TPS) has proven to be a powerful manufacturing approach with numerous advantages. It’s similar to planting a seed: with the proper care and conditions, it can grow into a healthy tree.

TPS, when implemented correctly, can result in significant productivity gains. It’s the equivalent of discovering a new route to work that cuts your commute time in half. TPS enables businesses to produce more with fewer resources by eliminating waste and improving processes.

TPS also aids in the improvement of product quality. It’s the equivalent of hiring a master chef to prepare your meals. TPS ensures that the products coming off the production line meet high quality standards by focusing on defect prevention and problem solving at the source.

TPS can also increase efficiency. It’s similar to organizing your kitchen so that everything you need is easily accessible. TPS allows work to flow smoothly and quickly through the production system by streamlining processes and balancing workload.

Let’s take a look at some companies that have successfully implemented TPS:

• Toyota: As the inventor of TPS, Toyota is the poster child for its success. TPS enabled Toyota to become one of the world’s leading automakers. They were able to efficiently manufacture a wide range of vehicles, respond quickly to changes in demand, and consistently produce high-quality vehicles.
• Danaher Corporation (Danaher): Danaher, an American multinational conglomerate with products in the environmental, test/measurement, industrial technologies, and life sciences sectors, implemented TPS principles in their manufacturing process. As a result, productivity increased, product quality improved, and profitability increased.

These examples demonstrate TPS’s potential. Companies can transform their production processes by implementing its principles, tools, and techniques, resulting in better products, happier customers, and a healthier bottom line.

Challenges and Criticisms of TPS

While the Toyota Production System has many advantages, it is not without its challenges and criticisms, similar to attempting to master a complex recipe. To get it right, it takes time, effort, and the right ingredients.

The required cultural shift is a common challenge. TPS is about changing people’s attitudes and behaviors, not just processes. From the factory floor to the executive suite, everyone must be committed to continuous improvement and waste reduction. This can be difficult in a resistant-to-change culture.

Furthermore, implementing TPS necessitates a significant time and resource investment. Employee training, process redesign, and system implementation all take time and money. Some businesses may struggle to find the necessary resources or may not see immediate returns on their investment.

Some critics argue that TPS places too much pressure on employees. High-stress work environments can result from an emphasis on efficiency and continuous improvement. Others argue that focusing on reducing waste and inventory can leave businesses vulnerable to supply chain disruptions.

These challenges and criticisms, however, can be addressed. Leadership, training, and communication can all help to facilitate the cultural shift. Employees must understand why changes are being implemented and how they will benefit.

TPS investment can be viewed as just that—an investment. While the initial costs may be high, long-term gains in efficiency, productivity, and quality can more than compensate.

Regarding the criticisms, keep in mind that TPS is about respect for people as well as continuous improvement. This entails creating a workplace that values employees and cares about their well-being. It also entails having backup plans in place to deal with supply chain disruptions.

Finally, implementing TPS is a balancing act. It’s all about finding the right balance of efficiency, quality, and human respect. While it is not without difficulties, the potential benefits can make the effort worthwhile.

Implementing TPS in Your Organization

• Understand the Principles: Before you can begin implementing TPS, you must first understand its fundamentals. Just-in-Time, Jidoka, Heijunka, and Kaizen are all examples. It’s similar to learning the rules of the road before getting behind the wheel.
• Commit to the Philosophy: Next, you must commit to the philosophy of continuous improvement and human respect. This commitment must come from the top and be clearly communicated to all employees.
• Evaluate Your Current Situation: Just as you must know where you are starting from in order to plan a journey, you must understand your current processes and performance. This can be accomplished using techniques such as Value Stream Mapping.
• Identify Improvement Opportunities: Look for areas where you can cut waste, improve processes, and better align production with demand. This could range from inventory reduction to workspace reorganization.
• Implement Changes: Put the changes you’ve identified into action. This could include the implementation of new tools, the retraining of employees, or the redesign of processes. Remember, TPS is all about incremental improvement.
• Measure Results: Just as you would check a map to ensure you’re on the right track, you should measure your results to ensure your changes are having the desired effect.
• Constantly Improve: TPS is a never-ending journey. There is always room for improvement. Continue to look for ways to cut waste, improve processes, and boost efficiency.

TPS implementation is not without challenges. These can include resistance to change, a lack of understanding of TPS principles, and the difficulty of altering established processes. Effective communication, training, and leadership can help to overcome these obstacles.

Finally, commitment is essential for successful TPS implementation. Commitment to the philosophy, principles, and commitment to continuous improvement. You can navigate the journey of TPS implementation and arrive at your destination of improved efficiency, quality, and productivity with commitment, persistence, and a clear plan.

In closing, the Toyota Production System offers valuable insights and methodologies for achieving operational excellence. Despite its challenges and criticisms, its core principles of waste elimination, continuous improvement, and human respect have proven to be universally beneficial. TPS will continue to guide firms in their pursuit of efficiency, quality, and long-term growth as manufacturing evolves. Whether you’re new to TPS or want to learn more, we hope this guide has given you valuable insights into this remarkable system.

• Ohno, T., 1982. How the Toyota production system was created.  Japanese Economic Studies ,  10 (4), pp.83-101.
• Pegels, C.C., 1984. The Toyota production system—lessons for American management.   International Journal of Operations & Production Management ,  4 (1), pp.3-11.

Q: What is the Toyota Production System (TPS)

A: The Toyota Production System (TPS) is a manufacturing philosophy developed by Toyota that focuses on eliminating waste and continuously improving processes to increase efficiency and quality.

Q: What are the core principles of TPS?

A: The core principles of TPS are Just-in-Time (producing only what is needed, when it’s needed), Jidoka (automation with a human touch), Heijunka (leveling production), and Kaizen (continuous improvement).

Q: What are some common tools used in TPS?

A: Common tools used in TPS include Kanban (a signaling system to start work), Andon (a system to signal problems), Poka-yoke (error-proofing methods), and SMED (Single-Minute Exchange of Die, a system for reducing setup times).

Q: What are the benefits of implementing TPS?

A: Implementing TPS can lead to a range of benefits including improved productivity, increased efficiency, higher quality products, and a reduction in waste.

Q: What are some challenges of implementing TPS?

A: Some challenges of implementing TPS include overcoming resistance to change, the initial investment of time and resources, and maintaining the focus on continuous improvement over the long term.

Q: How can TPS be implemented in my organization?

A: Implementing TPS in your organization involves understanding and committing to the principles of TPS, assessing your current processes, identifying opportunities for improvement, implementing changes, measuring results, and continually seeking improvements.

Q: Is TPS only applicable to manufacturing industries?

A: While TPS was developed in a manufacturing context, its principles can be applied to any industry or organization that aims to improve efficiency, reduce waste, and increase quality. This includes service industries, healthcare, software development, and more.

Daniel Croft is a seasoned continuous improvement manager with a Black Belt in Lean Six Sigma. With over 10 years of real-world application experience across diverse sectors, Daniel has a passion for optimizing processes and fostering a culture of efficiency. He's not just a practitioner but also an avid learner, constantly seeking to expand his knowledge. Outside of his professional life, Daniel has a keen Investing, statistics and knowledge-sharing, which led him to create the website learnleansigma.com, a platform dedicated to Lean Six Sigma and process improvement insights.

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Toyota’s Secret: The A3 Report

How Toyota solves problems, creates plans, and gets new things done while developing an organization of thinking problem-solvers.

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While much has been written about Toyota Motor Corp.’s production system, little has captured the way the company manages people to achieve operational learning. At Toyota, there exists a way to solve problems that generates knowledge and helps people doing the work learn how to learn. Company managers use a tool called the A3 (named after the international paper size on which it fits) as a key tactic in sharing a deeper method of thinking that lies at the heart of Toyota’s sustained success.

A3s are deceptively simple. An A3 is composed of a sequence of boxes (seven in the example) arrayed in a template. Inside the boxes the A3’s “author” attempts, in the following order, to: (1) establish the business context and importance of a specific problem or issue; (2) describe the current conditions of the problem; (3) identify the desired outcome; (4) analyze the situation to establish causality; (5) propose countermeasures; (6) prescribe an action plan for getting it done; and (7) map out the follow-up process.

The leading question

Toyota has designed a two-page mechanism for attacking problems. What can we learn from it?

• The A3’s constraints (just 2 pages) and its structure (specific categories, ordered in steps, adding up to a “story”) are the keys to the A3’s power.
• Though the A3 process can be used effectively both to solve problems and to plan initiatives, its greatest payoff may be how it fosters learning. It presents ideal opportunities for mentoring.
• It becomes a basis for collaboration.

However, A3 reports — and more importantly the underlying thinking — play more than a purely practical role; they also embody a more critical core strength of a lean company. A3s serve as mechanisms for managers to mentor others in root-cause analysis and scientific thinking, while also aligning the interests of individuals and departments throughout the organization by encouraging productive dialogue and helping people learn from one another. A3 management is a system based on building structured opportunities for people to learn in the manner that comes most naturally to them: through experience, by learning from mistakes and through plan-based trial and error.

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About the Author

John Shook is an industrial anthropologist and senior advisor to the Lean Enterprise Institute, where he works with companies and individuals to help them understand and implement lean production. He is author of Managing to Learn: Using the A3 Management Process to Solve Problems, Gain Agreement, Mentor, and Lead (Lean Enterprise Institute), and coauthor of Learning to See (Lean Enterprise Institute). He worked with Toyota for 10 years, helping it transfer its production, engineering and management systems from Japan to its overseas affiliates and suppliers.

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Sheila colinlak, patrick doyle, acta de constitución de proyecto ágil, un elemento diferenciador. | agilia, dave whaley, william harrod, howard s weinberg, systemental, khucxuanthinh.

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The Toyota Production System 4P Model | Lean thinking

Published on: Jul 12, 2019

Topics: Lean leadership , lean thinking

Editor's note: Original blog Published on: Apr 3, 2017

Though the Lean history dates back to the old days of Japanese manufacturing industry, it did not came to limelight until the pre-20th century author/researcher, John Krafcik in his 1988 article - Triumph of the Lean Production System (based on his master's thesis at the MIT Sloan School of Management) officially coined the term.

There onwards a lot happened. The years of discovery and rediscovery in the search to reduce waste. Since then, decades have passed. Today we all know who and what played critical roles in developing a lean production system since the last industrial revolution.

I am unmistakably talking about the success stories of Toyota (Since 1990), and it's great makers, carrying the unique signature flares of lean thinking (i.e., Philosophy, Process, People and Problem-solving). All of these efforts are interwoven to form the product and avoid the waste created through overburden (Muri) and dissemblance in workloads (Mura).

Closely working from a client perspective, Toyota developed more than one way to achieve desired results. These amicable teachings/methods of leading a process / team / product are something awe-inspiring and can be counted as the foundation of a good organization that genuinely values the experiments, learnings, mistakes, reflections, and improvements. We now call it the 4P Model of TPS (Toyota Production System).

Here is the brief understanding of the 4P Model:

Philosophy:

As Toyota ventured in, it has proven to be more than capable of earning its own identity. In the journey, Toyota leaders accepted long-term Philosophies as the fundamental law for everything.

As I have mentioned many times, Philosophy should not be something that goes as "Sayings." It should be a medium to explore and interpret the world changes in various ways. Coming to learn philosophy, the overall idea is based on respect for people.

• Toyota’s leaders see the company as a vehicle for adding values to customer, society, and community.

It's not always about delivering a perfect product or cost reduction or avoiding waste. Behind everything, there are concepts of humanity, humility, empathy, and connection building that you must understand. And all these elements are integrated into Toyota's culture from the very beginning.

A sneak-peek into Toyota's History: Today's Toyota is the remanence of an adventurous youth named Sakichi Toyoda-- who was born (on February 14, 1867) into a family of farming and carpentry in the village of Yamaguchi, Japan. As Sakichi grew up, he showed no interest in inheriting the family business. Instead, he left his village and came to Tokyo.

In his staying period, Sakichi saw many modern factories and the latest machinery. He was fascinated by stepping into the automation world, where human labor was considerably reduced. That was the point that hit him hard. Being born into a farming community, Sakichi was well accustomed to the struggles of farmers, especially women. To make his life better, he came back and started his research on improving the handloom business. Soon after, In 1891 he obtained his first patent for the Toyoda wooden hand loom (i.e., Toyota Boshoku) - Predecessor of Toyota Motor Co. and Toyota Industry Co.

• Toyota believes on developing people.

They have this beautiful saying - "We don't just build cars; we build people." I am so in love with this phrase and can not count how many times I have used it in my blogs. This one message bullheaded directs everything to the heart. And the most beautiful thing is they have successfully done something so high-scaled that most of us have fancied yet failed in practice.

• Developing exceptional people is the key to great success.

In organizations, everything starts with happy employees. And Toyota shows enormous interest in cultivating passionate people and building their careers. There is a very honest rule that exists for that- Managers in Toyota must be good teachers. Therefore, they spend an enormous amount of resources for training and coaching. This has been engraved in their culture and ethics.

• Building a common sense of purpose and responsibility in people (doesn’t matter if the count is on hundreds or thousands; doesn’t matter whether you are supervisor or a manager)

And with this being said, let me give you an example: There are very few brave leaders who keep faith in their people, help the organization in change adversities and don't hesitate to take responsibility. And among them Kiichiro Toyoda's (son of Sakichi Toyoda) story is well-known. As per the Toyota history, Kiichiro resigned from the company because of flagging sales and profitability, which made him lay off many associates. Not only for leaders but for any human being to say, " This is my fault, and I must take responsibility " is not something so easy to do.

Toyota leaders learned through mentorship and experience that when they follow the right process, they get the right results. The company has a stronger inclination towards long-term investments on process development that are most difficult to achieve. And I believe, the overall idea is to integrate the perception of Kaizen in their culture and eliminate waste from the system.

In regards to this, I found an interesting theory. The literal meaning of this Japanese word is- Kai (change) and Zen (better)- Change for the better. It doesn't say anywhere that it should be continuous. The change/improvement can be for one time, or constant, large or small. But Toyota has taken it as a process of " continuous improvement. "  The process welcomes each of Toyota's employees (from the clerk to CEO) to participate and articulate their views of improvements. The overall

History of Kaizen : Dr. Deming (U.S. advisor) came to Japan with a purpose to build the community after world war 2. There he identified Kaizen and introduced it in his 14 points for management. It was reintroduced to western business by Masaaki Imai when he published his book on " Kaizen: The Key To Japan's Competitive Success. "

People/Partner:

When the whole industry is buzzing with the extensive search for the best talent, Toyota demands hard skills and shows interest in nurturing them into the very best leaders or workers. They believe, if a person has the desire for personal growth and the capacity to learn something, they are worthy of giving resources and labor to develop.

They don’t have to end up being legendary leaders or greatest geniuses but at least achieve the status of good. As I have mentioned previously, Toyota managers and leaders play vital roles in building raw teams into higher-class workers. They are trained to play the role of teachers, who need to pass their knowledge and experience to the next generation. It is quite similar to the code of Shu-Ha-Ri ( Read more ).

Coming to partners, Toyota considers them as part of the organization, and they give their utmost efforts to building them up. So that they become better as a result of working together with Toyota.

Problem Solving:

If you are someone into lean-Agile, you must have heard about Genchi genbutsu and Gemba. Usually, theses two are thought to be the same thing, but they are not. Gemba means “the actual place, actual thing”. While the meaning of Genchi Genbutsu is going and seeing the actual place, actual thing to take a right decision.

These key principles of Toyota suggest-- To root out any problem, the leader has to go the actual place (where the problem is occurring). It means staying in the same environment, experiencing, observing and analyzing to find out the solution rather than being offsite and devising strategy without any real idea (of what’s happening out there).

Toyota Sienna’s chief engineer (2nd generation) Yuji Yokoya set a perfect example on this. He drove a Sienna about 53, 000 miles (i.e. from Anchorage to the Mexican border, south Florida to Southern California). The experiment was to find out the problems and necessary improvements. And what he observed was -- the improvement requirements on the crosswind stability, excessive steering drifting, tighter turning radius, and many other things.

After reading all this, you would stop wondering why Toyota is so successful in the manufacturing industry. Another best candidate who achieved success by adopting these 4Ps and 14 principles was Henry Ford, which we will be discussing in my upcoming blogs.

Information Courtesy:

The Toyota Way Fieldbook by Jeffrey K. Liker

The Toyota Talent by Jeffrey K. Liker

Lean Manufacturing ( Wiki )

http://www.shmula.com

Have a happy reading :-)

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Understanding Toyota's 5 Whys Approach to Problem Solving

Toyota, a global powerhouse in the automotive industry, is not just renowned for its cars, but also for its unique management principles. Among these principles, the "5 Whys" approach stands out as a systematic methodology for problem-solving. Rooted in the lean manufacturing system, this approach provides an avenue for professionals to dig deep into problems and find their underlying causes.

A Brief History

The origins of the 5 Whys can be traced back to Toyota's post-war Japan production system. Taiichi Ohno, often called the father of the Toyota Production System, emphasized the importance of understanding problems rather than just correcting them superficially. For Ohno, getting to the root cause was paramount, and the 5 Whys became a cornerstone of Toyota's problem-solving and continuous improvement culture.

The Core Principle

At its core, the 5 Whys methodology is breathtakingly simple: when a problem arises, you ask "why" five times. Each answer forms the basis of the next question. By the time the fifth "why" is answered, the fundamental cause of the problem is often illuminated.

An Illustrative Example

Imagine a car doesn't start in the morning. Let's apply the 5 Whys:

• Why? - The car's battery is dead.
• Why? - The alternator is not functioning.
• Why? - The alternator belt has broken.
• Why? - The belt was well beyond its useful service life and not replaced.
• Why? - The vehicle was not maintained according to the recommended service schedule.

By the end, we discover that the root problem is not just a dead battery or a broken belt, but a systemic failure in maintaining the vehicle.

Benefits of the 5 Whys Approach

• Simplicity : The 5 Whys don't require statistical analysis or advanced tools. It's a straightforward method accessible to everyone in the organization.
• Efficiency : By targeting the root cause, you can ensure that the problem doesn't recur. This saves time and resources in the long run.
• Encourages Team Collaboration : Engaging in the 5 Whys promotes team discussions and collective problem-solving.
• Enhances Understanding : It ensures a deep understanding of problems in the processes, leading to smarter decisions and strategies.

Limitations and Points of Caution

However, like all methodologies, the 5 Whys has its limitations.

• Over-Simplicity : For complex issues, five iterations might not be enough, and there's a risk of arriving at a simplistic answer.
• Bias and Assumptions : The answers can sometimes be influenced by personal bias, leading to incorrect root causes.
• Lack of Depth : If not done rigorously, the process might stop at symptoms rather than causes.

To avoid these pitfalls, it's crucial to:

• Ensure diverse participation to minimize individual biases.
• Cross-verify findings with data and other diagnostic methods.
• Always be open to the possibility that more than five questions may be needed.

Toyota's 5 Whys approach has transcended the automotive world, finding a home in sectors ranging from IT to healthcare. Its beauty lies in its simplicity and its relentless focus on understanding problems rather than merely firefighting them. While it's not without its limitations, when applied judiciously and supplemented with other tools and methodologies, it remains a potent weapon in any problem-solver's arsenal.

By embracing the spirit of continuous improvement and a genuine curiosity to understand the heart of challenges, any organization can harness the power of the 5 Whys, just as Toyota has for decades.

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Embracing The Toyota Way: A Practical Problem-Solving Framework for Improved Efficiency

This entry was posted by pabloadmin on March 19, 2023 at 11:17 pm

Introduction

The Toyota Production System (TPS) has long been regarded as a paragon of efficiency and effectiveness in the manufacturing industry. One of the primary principles of TPS is “The Toyota Way,” a management philosophy emphasizing continuous improvement and respect for people. In this blog post, we will share a practical problem-solving framework inspired by The Toyota Way that can be applied to various industries and organizations. This comprehensive blog post will delve into the critical elements of this framework and provide insights on how you can leverage it to improve problem-solving and boost efficiency within your organization.

Understanding the Problem-Solving Framework

This framework consists of five distinct stages, which together form a systematic approach to problem-solving:

• A. Define the Problem
• B. Break Down the Problem
• C. Set Targets
• D. Analyze the Root Causes
• E. Implement Countermeasures

Each stage is vital in identifying and resolving issues and ensuring practical and sustainable solutions. Let’s look at each stage and how they contribute to the framework.

Stage-by-Stage Analysis

A. define the problem:.

Before diving into problem-solving, clearly defining the issue at hand is essential. This involves understanding the gap between the current situation and the desired state and identifying the symptoms and effects of the problem. A well-defined problem sets the stage for more effective problem-solving and helps ensure that the correct issues are being addressed.

B. Break Down the Problem:

Once the problem has been defined, the next step is to break it down into smaller, more manageable components. This process helps clarify the issue’s scope, making it easier to understand and address. By breaking down the problem, you can more easily identify the underlying causes and focus on finding targeted solutions.

C. Set Targets:

After breaking down the problem, it’s crucial to establish measurable targets that define the desired outcome. These targets should be Specific, Measurable, Achievable, Relevant, and Time-bound ( SMART ). Setting clear and achievable goals ensures that your problem-solving efforts are directed toward meaningful improvements and allows you to track progress over time.

D. Analyze the Root Causes:

With targets in place, it’s time to dive deeper and identify the root causes of the problem. This stage thoroughly analyzes the underlying issues, using tools such as the “5 Whys” technique or the Fishbone Diagram. By identifying the root causes, you can develop targeted countermeasures that address the core issues rather than merely treating the symptoms.

E. Implement Countermeasures:

The final stage of the framework involves developing and implementing countermeasures to address the root causes of the problem. This may include changes to processes, systems, or behaviours. Once countermeasures are in place, monitoring their effectiveness and making adjustments is essential, ensuring that the problem is fully resolved and improvements are sustainable.

Benefits of the Toyota Way-Inspired Problem-Solving Framework

Adopting a structured problem-solving framework like the one inspired by The Toyota Way offers several benefits:

• Enhanced problem-solving capabilities: The systematic approach ensures that problems are thoroughly analyzed and addressed, leading to more effective and lasting solutions.
• Improved efficiency: By identifying and resolving the root causes of issues, organizations can optimize their processes and systems, reducing waste and improving productivity.
• Increased employee engagement: The framework emphasizes teamwork and collaboration, fostering a culture of continuous improvement and empowering employees to contribute to the organization’s success.

Implementing the Framework in Your Organization

To successfully implement this problem-solving framework within your organization, consider the following steps:

• Develop a strong understanding of the framework: Ensure that key stakeholders and team members are familiar with the five stages of the problem-solving framework and understand how they contribute to the overall process. This may involve conducting training sessions or workshops to educate employees on the principles and techniques of The Toyota Way-inspired framework.
• Establish a culture of continuous improvement: Encourage a mindset of ongoing growth and development within your organization. Promote open communication, collaboration, and a willingness to learn from mistakes. Foster an environment where employees feel empowered to share ideas and contribute to problem-solving efforts.
• Adapt the framework to your organization’s unique needs: While its fundamental principles remain the same, it’s essential to tailor the approach to your organization’s specific context and requirements. This may involve adjusting the tools and techniques used in the analysis stage or adapting the implementation process to fit your organization’s structure and culture.
• Monitor progress and measure results: Regularly assess the effectiveness of the problem-solving framework by tracking progress towards established targets and measuring the impact of implemented countermeasures. Use this information to identify further improvement areas and refine the framework.
• Celebrate successes and share learnings: Recognize and celebrate your team’s achievements as they successfully navigate the problem-solving framework and implement effective solutions. Share the lessons learned and best practices across the organization, fostering a culture of knowledge-sharing and continuous improvement.

The Toyota Way-inspired problem-solving framework offers a structured and systematic approach to identifying and resolving issues within your organization. By embracing this framework, you can enhance problem-solving capabilities, boost efficiency, and foster a culture of continuous improvement. By implementing the framework thoughtfully and deliberately, you can unlock your organization’s potential and achieve lasting success in today’s competitive business environment.

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Toyota Production System

A production system based on the philosophy of achieving the complete elimination of all waste in pursuit of the most efficient methods.

Toyota Motor Corporation's vehicle production system is a way of making things that is sometimes referred to as a "lean manufacturing system," or a "Just-in-Time (JIT) system," and has come to be well known and studied worldwide.

This production control system was established based on many years of continuous improvements, with the objective of making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as swiftly as possible. The Toyota Production System (TPS) was established based on two concepts: "jidoka" (which can be loosely translated as "automation with a human touch"), as when a problem occurs, the equipment stops immediately, preventing defective products from being produced; and the "Just-in-Time" concept, in which each process produces only what is needed for the next process in a continuous flow.

Based on the basic philosophies of jidoka and Just-in-Time, TPS can efficiently and quickly produce vehicles of sound quality, one at a time, that fully satisfy customer requirements.

TPS and its approach to cost reduction are the wellsprings of competitive strength and unique advantages for Toyota. Thoroughly honing these strengths is essential for Toyota's future survival. We will use these initiatives and develop our human resources to make ever-better cars that will be cherished by customers.

The TPS concept

For Toyota, jidoka means that a machine must come to a safe stop whenever an abnormality occurs. Achieving jidoka, therefore, requires building and improving systems by hand until they are reliable and safe. First, human engineers meticulously build each new line component by hand to exacting standards, then, through incremental kaizen (continuous improvement), steadily simplify its operations.

Eventually, the value added by the line's human operators disappears, meaning any operator can use the line to produce the same result. Only then is the jidoka mechanism incorporated into actual production lines. Through the repetition of this process, machinery becomes simpler and less expensive, while maintenance becomes less time consuming and less costly, enabling the creation of simple, slim, flexible lines that are adaptable to fluctuations in production volume.

The work done by hand in this process is the bedrock of engineering skill. Machines and robots do not think for themselves or evolve on their own. Rather, they evolve as we transfer our skills and craftsmanship to them. In other words, craftsmanship is achieved by learning the basic principles of manufacturing through manual work, then applying them on the factory floor to steadily make improvements. This cycle of improvement in both human skills and technologies is the essence of Toyota's jidoka. Advancing jidoka in this way helps to reinforce both our manufacturing competitiveness and human resource development.

Human wisdom and ingenuity are indispensable to delivering ever-better cars to customers. Going forward, we will maintain our steadfast dedication to constantly developing human resources who can think independently and implement kaizen.

Just-in-Time

―improving productivity―, making only "what is needed, when it is needed, and in the amount needed".

Producing quality products efficiently through the complete elimination of waste, inconsistencies, and unreasonable requirements on the production line (known respectively in Japanese as muda, mura, muri).

In order to fulfill an order from a customer as quickly as possible, the vehicle is efficiently built within the shortest possible period of time by adhering to the following:

• When a vehicle order is received, production instructions must be issued to the beginning of the vehicle production line as soon as possible.
• The assembly line must be stocked with the required number of all necessary parts so that any kind of ordered vehicle can be assembled.
• The assembly line must replace the parts used by retrieving the same number of parts from the parts-producing process (the preceding process).
• The preceding process must be stocked with small numbers of all types of parts and produce only the numbers of parts that were retrieved by an operator from the next process.

Origin of the Toyota Production System A production system fine-tuned over generations

Roots of the toyota production system.

The Toyota Production System (TPS), which is based on the philosophy of the complete elimination of all waste in pursuit of the most efficient methods, has roots tracing back to Sakichi Toyoda's automatic loom. TPS has evolved through many years of trial and error to improve efficiency based on the Just-in-Time concept developed by Kiichiro Toyoda, the founder (and second president) of Toyota Motor Corporation.

Waste can manifest as excess inventory, extraneous processing steps, and defective products, among other instances. All these "waste" elements intertwine with each other to create more waste, eventually impacting the management of the corporation itself.

The automatic loom invented by Sakichi Toyoda not only automated work that used to be performed manually, but also built the capability to make judgments into the machine itself. By eliminating both defective products and the associated wasteful practices, Sakichi succeeded in rapidly improving both productivity and work efficiency.

Kiichiro Toyoda, who inherited this philosophy, set out to realize his belief that "the ideal conditions for making things are created when machines, facilities, and people work together to add value without generating any waste." He conceived methodologies and techniques for eliminating waste between operations, between both lines and processes. The result was the Just-in-Time method.

Via the philosophies of "Daily Improvements" and "Good Thinking, Good Products, TPS has evolved into a world-renowned production system. Even today, all Toyota production divisions are making improvements to TPS day-and-night to ensure its continued evolution.

The Toyota spirit of monozukuri (making things) is today referred to as the "Toyota Way." It has been adopted not only by companies in Japan and within the automotive industry, but in production activities worldwide, and continues to evolve globally.

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What Really Makes Toyota’s Production System Resilient

• Willy C. Shih

“Just-in-time” only works as part of a comprehensive suite of strategies.

Toyota has fared better than many of its competitors in riding out the supply chain disruptions of recent years. But focusing on how Toyota had stockpiled semiconductors and the problems of other manufacturers, some observers jumped to the conclusion that the era of the vaunted Toyota Production System was over. Not the case, say Toyota executives. TPS is alive and well and is a key reason Toyota has outperformed rivals.

The supply chain disruptions triggered by the Covid-19 pandemic caused major headaches for manufacturers around the world. Nowhere was this felt more acutely than in the auto industry, which faced severe shortages of semiconductor chips and other components. This led many people to argue that just-in-time and lean production methods were dead and being superseded by “just-in-case” stocking of more inventory.

• Willy C. Shih is a Baker Foundation Professor of Management Practice at Harvard Business School.

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Explaining the Toyota Production System (TPS) House

The Toyota Production System (TPS) House is a common visual tool used to describe the LEAN Business System and the five (5) Focal Points for its implementation.  But what does it really mean?  And how does it apply to your program efforts?

In order to put a framework around your knowledge and understanding, we will explain the basic principles that the TPS House refers to…  including how it is reflected in everything that we do!

Learn about all of the different Focal Points, and how they are integrated with one another for an effective implementation.  Also see why our efforts focus on the Systems-Level Kaizen, and why this blueprint will drive a comprehensive approach for your program.

Shop Floor Management System

The Integration of Business Objectives/KPI Deployment and Visual Controls in order to Facilitate Problem-Solving and Team Work

Point Kaizen, and Process Improvements

Utilizing the Multitude of Tools that are Available to Improve a Single Process or Work Cell

Systems-Level Kaizen

Focusing on the Connected Processes in order to Improve the Complete Business System Across ALL of the Functions within the Organization

Management System | Structure

Providing the Structural Elements to Achieve the Desired Business Objectives/KPIs in a Sustainable Way

Strategic Kaizen

Focusing on the Development of the Roadmap, and Implementation of the Complete Business System

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THE ESSENCE OF JUST-IN-TIME: PRACTICE-IN-USE AT TOYOTA PRODUCTION SYSTEM MANAGED ORGANIZATIONS - How Toyota Turns Workers Into Problem Solvers

by Sarah Jane Johnston, HBS Working Knowledge

When HBS professor Steven Spear recently released an abstract on problem solving at Toyota, HBS Working Knowledge staffer Sarah Jane Johnston e-mailed off some questions. Spear not only answered the questions, but also asked some of his own—and answered those as well.

Sarah Jane Johnston: Why study Toyota? With all the books and articles on Toyota, lean manufacturing, just-in-time, kanban systems, quality systems, etc. that came out in the 1980s and 90s, hasn't the topic been exhausted?

Steven Spear: Well, this has been a much-researched area. When Kent Bowen and I first did a literature search, we found nearly 3,000 articles and books had been published on some of the topics you just mentioned.

However, there was an apparent discrepancy. There had been this wide, long-standing recognition of Toyota as the premier automobile manufacturer in terms of the unmatched combination of high quality, low cost, short lead-time and flexible production. And Toyota's operating system—the Toyota Production System—had been widely credited for Toyota's sustained leadership in manufacturing performance. Furthermore, Toyota had been remarkably open in letting outsiders study its operations. The American Big Three and many other auto companies had done major benchmarking studies, and they and other companies had tried to implement their own forms of the Toyota Production System. There is the Ford Production System, the Chrysler Operating System, and General Motors went so far as to establish a joint venture with Toyota called NUMMI, approximately fifteen years ago.

However, despite Toyota's openness and the genuinely honest efforts by other companies over many years to emulate Toyota, no one had yet matched Toyota in terms of having simultaneously high-quality, low-cost, short lead-time, flexible production over time and broadly based across the system.

It was from observations such as these that Kent and I started to form the impression that despite all the attention that had already been paid to Toyota, something critical was being missed. Therefore, we approached people at Toyota to ask what they did that others might have missed.

What did they say?

To paraphrase one of our contacts, he said, "It's not that we don't want to tell you what TPS is, it's that we can't. We don't have adequate words for it. But, we can show you what TPS is."

Over about a four-year period, they showed us how work was actually done in practice in dozens of plants. Kent and I went to Toyota plants and those of suppliers here in the U.S. and in Japan and directly watched literally hundreds of people in a wide variety of roles, functional specialties, and hierarchical levels. I personally was in the field for at least 180 working days during that time and even spent one week at a non-Toyota plant doing assembly work and spent another five months as part of a Toyota team that was trying to teach TPS at a first-tier supplier in Kentucky.

What did you discover?

We concluded that Toyota has come up with a powerful, broadly applicable answer to a fundamental managerial problem. The products we consume and the services we use are typically not the result of a single person's effort. Rather, they come to us through the collective effort of many people each doing a small part of the larger whole. To a certain extent, this is because of the advantages of specialization that Adam Smith identified in pin manufacturing as long ago as 1776 in The Wealth of Nations . However, it goes beyond the economies of scale that accrue to the specialist, such as skill and equipment focus, setup minimization, etc.

The products and services characteristic of our modern economy are far too complex for any one person to understand how they work. It is cognitively overwhelming. Therefore, organizations must have some mechanism for decomposing the whole system into sub-system and component parts, each "cognitively" small or simple enough for individual people to do meaningful work. However, decomposing the complex whole into simpler parts is only part of the challenge. The decomposition must occur in concert with complimentary mechanisms that reintegrate the parts into a meaningful, harmonious whole.

This common yet nevertheless challenging problem is obviously evident when we talk about the design of complex technical devices. Automobiles have tens of thousands of mechanical and electronic parts. Software has millions and millions of lines of code. Each system can require scores if not hundreds of person-work-years to be designed. No one person can be responsible for the design of a whole system. No one is either smart enough or long-lived enough to do the design work single handedly.

Furthermore, we observe that technical systems are tested repeatedly in prototype forms before being released. Why? Because designers know that no matter how good their initial efforts, they will miss the mark on the first try. There will be something about the design of the overall system structure or architecture, the interfaces that connect components, or the individual components themselves that need redesign. In other words, to some extent the first try will be wrong, and the organization designing a complex system needs to design, test, and improve the system in a way that allows iterative congruence to an acceptable outcome.

The same set of conditions that affect groups of people engaged in collaborative product design affect groups of people engaged in the collaborative production and delivery of goods and services. As with complex technical systems, there would be cognitive overload for one person to design, test-in-use, and improve the work systems of factories, hotels, hospitals, or agencies as reflected in (a) the structure of who gets what good, service, or information from whom, (b) the coordinative connections among people so that they can express reliably what they need to do their work and learn what others need from them, and (c) the individual work activities that create intermediate products, services, and information. In essence then, the people who work in an organization that produces something are simultaneously engaged in collaborative production and delivery and are also engaged in a collaborative process of self-reflective design, "prototype testing," and improvement of their own work systems amidst changes in market needs, products, technical processes, and so forth.

It is our conclusion that Toyota has developed a set of principles, Rules-in-Use we've called them, that allow organizations to engage in this (self-reflective) design, testing, and improvement so that (nearly) everyone can contribute at or near his or her potential, and when the parts come together the whole is much, much greater than the sum of the parts.

What are these rules?

We've seen that consistently—across functional roles, products, processes (assembly, equipment maintenance and repair, materials logistics, training, system redesign, administration, etc.), and hierarchical levels (from shop floor to plant manager and above) that in TPS managed organizations the design of nearly all work activities, connections among people, and pathways of connected activities over which products, services, and information take form are specified-in-their-design, tested-with-their-every-use, and improved close in time, place, and person to the occurrence of every problem.

That sounds pretty rigorous.

It is, but consider what the Toyota people are attempting to accomplish. They are saying before you (or you all) do work, make clear what you expect to happen (by specifying the design), each time you do work, see that what you expected has actually occurred (by testing with each use), and when there is a difference between what had actually happened and what was predicted, solve problems while the information is still fresh.

That reminds me of what my high school lab science teacher required.

Exactly! This is a system designed for broad based, frequent, rapid, low-cost learning. The "Rules" imply a belief that we may not get the right solution (to work system design) on the first try, but that if we design everything we do as a bona fide experiment, we can more rapidly converge, iteratively, and at lower cost, on the right answer, and, in the process, learn a heck of lot more about the system we are operating.

You say in your article that the Toyota system involves a rigorous and methodical problem-solving approach that is made part of everyone's work and is done under the guidance of a teacher. How difficult would it be for companies to develop their own program based on the Toyota model?

Your question cuts right to a critical issue. We discussed earlier the basic problem that for complex systems, responsibility for design, testing, and improvement must be distributed broadly. We've observed that Toyota, its best suppliers, and other companies that have learned well from Toyota can confidently distribute a tremendous amount of responsibility to the people who actually do the work, from the most senior, expeirenced member of the organization to the most junior. This is accomplished because of the tremendous emphasis on teaching everyone how to be a skillful problem solver.

How do they do this?

They do this by teaching people to solve problems by solving problems. For instance, in our paper we describe a team at a Toyota supplier, Aisin. The team members, when they were first hired, were inexperienced with at best an average high school education. In the first phase of their employment, the hurdle was merely learning how to do the routine work for which they were responsible. Soon thereafter though, they learned how to immediately identify problems that occurred as they did their work. Then they learned how to do sophisticated root-cause analysis to find the underlying conditions that created the symptoms that they had experienced. Then they regularly practiced developing counter-measures—changes in work, tool, product, or process design—that would remove the underlying root causes.

Sounds impressive.

Yes, but frustrating. They complained that when they started, they were "blissful in their ignorance." But after this sustained development, they could now see problems, root down to their probable cause, design solutions, but the team members couldn't actually implement these solutions. Therefore, as a final round, the team members received training in various technical crafts—one became a licensed electrician, another a machinist, another learned some carpentry skills.

Was this unique?

Absolutely not. We saw the similar approach repeated elsewhere. At Taiheiyo, another supplier, team members made sophisticated improvements in robotic welding equipment that reduced cost, increased quality, and won recognition with an award from the Ministry of Environment. At NHK (Nippon Spring) another team conducted a series of experiments that increased quality, productivity, and efficiency in a seat production line.

What is the role of the manager in this process?

Your question about the role of the manager gets right to the heart of the difficulty of managing this way. For many people, it requires a profound shift in mind-set in terms of how the manager envisions his or her role. For the team at Aisin to become so skilled as problem solvers, they had to be led through their training by a capable team leader and group leader. The team leader and group leader were capable of teaching these skills in a directed, learn-by-doing fashion, because they too were consistently trained in a similar fashion by their immediate senior. We found that in the best TPS-managed plants, there was a pathway of learning and teaching that cascaded from the most senior levels to the most junior. In effect, the needs of people directly touching the work determined the assistance, problem solving, and training activities of those more senior. This is a sharp contrast, in fact a near inversion, in terms of who works for whom when compared with the more traditional, centralized command and control system characterized by a downward diffusion of work orders and an upward reporting of work status.

And if you are hiring a manager to help run this system, what are the attributes of the ideal candidate?

We observed that the best managers in these TPS managed organizations, and the managers in organizations that seem to adopt the Rules-in-Use approach most rapidly are humble but also self-confident enough to be great learners and terrific teachers. Furthermore, they are willing to subscribe to a consistent set of values.

How do you mean?

Again, it is what is implied in the guideline of specifying every design, testing with every use, and improving close in time, place, and person to the occurrence of every problem. If we do this consistently, we are saying through our action that when people come to work, they are entitled to expect that they will succeed in doing something of value for another person. If they don't succeed, they are entitled to know immediately that they have not. And when they have not succeeded, they have the right to expect that they will be involved in creating a solution that makes success more likely on the next try. People who cannot subscribe to these ideas—neither in their words nor in their actions—are not likely to manage effectively in this system.

That sounds somewhat high-minded and esoteric.

I agree with you that it strikes the ear as sounding high principled but perhaps not practical. However, I'm fundamentally an empiricist, so I have to go back to what we have observed. In organizations in which managers really live by these Rules, either in the Toyota system or at sites that have successfully transformed themselves, there is a palpable, positive difference in the attitude of people that is coupled with exceptional performance along critical business measures such as quality, cost, safety, and cycle time.

Have any other research projects evolved from your findings?

We titled the results of our initial research "Decoding the DNA of the Toyota Production System." Kent and I are reasonably confident that the Rules-in-Use about which we have written are a successful decoding. Now, we are trying to "replicate the DNA" at a variety of sites. We want to know where and when these Rules create great value, and where they do, how they can be implemented most effectively.

Since we are empiricists, we are conducting experiments through our field research. We are part of a fairly ambitious effort at Alcoa to develop and deploy the Alcoa Business System, ABS. This is a fusion of Alcoa's long standing value system, which has helped make Alcoa the safest employer in the country, with the Rules in Use. That effort has been going on for a number of years, first with the enthusiastic support of Alcoa's former CEO, Paul O'Neill, now Secretary of the Treasury (not your typical retirement, eh?) and now with the backing of Alain Belda, the company's current head. There have been some really inspirational early results in places as disparate as Hernando, Mississippi and Poces de Caldas, Brazil and with processes as disparate as smelting, extrusion, die design, and finance.

We also started creating pilot sites in the health care industry. We started our work with a "learning unit" at Deaconess-Glover Hospital in Needham, not far from campus. We've got a series of case studies that captures some of the learnings from that effort. More recently, we've established pilot sites at Presbyterian and South Side Hospitals, both part of the University of Pittsburgh Medical Center. This work is part of a larger, comprehensive effort being made under the auspices of the Pittsburgh Regional Healthcare Initiative, with broad community support, with cooperation from the Centers for Disease Control, and with backing from the Robert Wood Johnson Foundation.

Also, we've been testing these ideas with our students: Kent in the first year Technology and Operations Management class for which he is course head, me in a second year elective called Running and Growing the Small Company, and both of us in an Executive Education course in which we participate called Building Competitive Advantage Through Operations.

· · · ·

Steven Spear is an Assistant Professor in the Technology and Operations Management Unit at the Harvard Business School.

Other HBS Working Knowledge stories featuring Steven J. Spear: Decoding the DNA of the Toyota Production System Why Your Organization Isn't Learning All It Should

Developing Skillful Problem Solvers: Introduction

Within TPS-managed organizations, people are trained to improve the work that they perform, they learn to do this with the guidance of a capable supplier of assistance and training, and training occurs by solving production and delivery-related problems as bona fide, hypothesis-testing experiments. Examples of this approach follow.

• A quality improvement team at a Toyota supplier, Taiheiyo, conducted a series of experiments to eliminate the spatter and fumes emitted by robotic welders. The quality circle members, all line workers, conducted a series of complex experiments that resulted in a cleaner, safer work environment, equipment that operated with less cost and higher reliability, and relief for more technically-skilled maintenance and engineering specialists from basic equipment maintenance and repair.
• A work team at NHK (Nippon Spring) Toyota, were taught to conduct a series of experiments over many months to improve the process by which arm rest inserts were "cold molded." The team reduced the cost, shortened the cycle time, and improved the quality while simultaneously developing the capability to take a similar experimental approach to process improvement in the future.
• At Aisin, a team of production line workers progressed from having the skills to do only routine production work to having the skills to identify problems, investigate root causes, develop counter-measures, and reconfigure equipment as skilled electricians and machinists. This transformation occurred primarily through the mechanism of problem solving-based training.
• Another example from Aisin illustrates how improvement efforts—in this case of the entire production system by senior managers—were conducted as a bona fide hypothesis-refuting experiment.
• The Acme and Ohba examples contrast the behavior of managers deeply acculturated in Toyota with that of their less experienced colleagues. The Acme example shows the relative emphasis one TPS acculturated manager placed on problem solving as a training opportunity in comparison to his colleagues who used the problem-solving opportunity as a chance to first make process improvements. An additional example from a Toyota supplier reinforces the notion of using problem solving as a vehicle to teach.
• The data section concludes with an example given by a former employee of two companies, both of which have been recognized for their efforts to be a "lean manufacturer" but neither of which has been trained in Toyota's own methods. The approach evident at Toyota and its suppliers was not evident in this person's narrative.

Defining conditions as problematic

We concluded that within Toyota Production System-managed organizations three sets of conditions are considered problematic and prompt problem-solving efforts. These are summarized here and are discussed more fully in a separate paper titled "Pursuing the IDEAL: Conditions that Prompt Problem Solving in Toyota Production System-Managed Organizations."

Failure to meet a customer need

It was typically recognized as a problem if someone was unable to provide the good, service, or information needed by an immediate or external customer.

Failure to do work as designed

Even if someone was able to meet the need of his or her customers without fail (agreed upon mix, volume, and timing of goods and services), it was typically recognized as a problem if a person was unable to do his or her own individual work or convey requests (i.e., "Please send me this good or service that I need to do my work.") and responses (i.e., "Here is the good or service that you requested, in the quantity you requested.").

Failure to do work in an IDEAL fashion

Even if someone could meet customer needs and do his or her work as designed, it was typically recognized as a problem if that person's work was not IDEAL. IDEAL production and delivery is that which is defect-free, done on demand, in batches of one, immediate, without waste, and in an environment that is physically, emotionally, and professionally safe. The improvement activities detailed in the cases that follow, the reader will see, were motivated not so much by a failure to meet customer needs or do work as designed. Rather, they were motivated by costs that were too high (i.e., Taiheiyo robotic welding operation), batch sizes that were too great (i.e., the TSSC improvement activity evaluated by Mr. Ohba), lead-times that were too long, processes that were defect-causing (i.e., NHK cold-forming process), and by compromises to safety (i.e., Taiheiyo).

Our field research suggests that Toyota and those of its suppliers that are especially adroit at the Toyota Production System make a deliberate effort to develop the problem-solving skills of workers—even those engaged in the most routine production and delivery. We saw evidence of this in the Taiheiyo, NHK, and Aisin quality circle examples.

Forums are created in which problem solving can be learned in a learn-by-doing fashion. This point was evident in the quality circle examples. It was also evident to us in the role played by Aisin's Operations Management Consulting Division (OMCD), Toyota's OMCD unit in Japan, and Toyota's Toyota Supplier Support Center (TSSC) in North America. All of these organizations support the improvement efforts of the companies' factories and those of the companies' suppliers. In doing so, these organizations give operating managers opportunities to hone their problem-solving and teaching skills, relieved temporarily of day to day responsibility for managing, production and delivery of goods and services to external customers.

Learning occurs with the guidance of a capable teacher. This was evident in that each of the quality circles had a specific group leader who acted as coach for the quality circle's team leader. We also saw how Mr. Seto at NHK defined his role as, in part, as developing the problem-solving and teaching skills of the team leader whom he supervised.

Problem solving occurs as bona fide experiments. We saw this evident in the experience of the quality circles who learned to organize their efforts as bona fide experiments rather than as ad hoc attempts to find a feasible, sufficient solution. The documentation prepared by the senior team at Aisin is organized precisely to capture improvement ideas as refutable hypotheses.

Broadly dispersed scientific problem solving as a dynamic capability

Problem solving, as illustrated in this paper, is a classic example of a dynamic capability highlighted in the "resource-based" view of the firm literature.

Scientific problem solving—as a broadly dispersed skill—is time consuming to develop and difficult to imitate. Emulation would require a similar investment in time, and, more importantly, in managerial resources available to teach, coach, assist, and direct. For organizations currently operating with a more traditional command and control approach, allocating such managerial resources would require more than a reallocation of time across a differing set of priorities. It would also require an adjustment of values and the processes through which those processes are expressed. Christensen would argue that existing organizations are particularly handicapped in making such adjustments.

Excerpted with permission from "Developing Skillful Problem Solvers in Toyota Production System-Managed Organizations: Learning to Problem Solve by Solving Problems," HBS Working Paper , 2001.

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Toyota Production System

The way we make vehicles is defined by the Toyota Production System (TPS). It is an original manufacturing philosophy that aims to eliminate waste and achieve the best possible efficiency – what is often called a “lean” or “Just-In-Time” system. 

Lean manufacturing system 

The Toyota Production System has long been recognised as a way to eliminate waste and achieve high efficiency. However, its essence is to make work easier and less burdensome for workers, with a focus on creating meaningful work. At the heart of TPS are the concepts of Jidoka and Just-In-Time. By applying these concepts, we are able to produce our products efficiently and at the pace of customer demand. It means that every vehicle meets our high-quality standards and our customers’ individual requirements. 

Our two key concepts

Jidoka, a Japanese term that can be translated as “automation with a human touch” or “intelligent automation”, is a method to quickly identify and correct any issues that could lead to faulty products. At any time or step of the manufacturing process our members can ‘pull the andon‘; literally stopping the production line to avoid generating problems that others would find in the future. At the same time it alerts all team members of the defect or problem found in the assembly line and the entire production stops to get it fixed. 

Just-In-Time is about refining and co-ordinating each production process so that we only produce what is required by the next process in a timely manner. 

TPS: adopted worldwide

Jidoka is a way of spotting problems and taking prompt action to correct faults at any stage in the production process. Shopfloor workers are empowered to stop the line if there is a problem and transmit information to the “andon” display board to support quick problem-solving. Through the application of this way of thinking, automated processes and machinery are set up to automatically detect an issue and safely stop. This enables an inspection and any necessary adjustments to be made. In this way the system helps prevent problems from occurring again, thus maintaining quality and high productivity. 

Just-In-Time

Just-In-Time means making only what is needed, when it is needed, and in the quantity needed, at every stage of production. That means we strive for consistent quality, an even production flow and streamlined parts handling. It requires the production line to be stocked with all the right parts. As parts are used, new stock is delivered at the right time and in the right quantity, avoiding interruptions or slow-downs in the production process. The Kanban system is central to the Just-In-Time process. It provides an automatic, real-time method to replenish parts at the line side and keep minimal stock.  

TPS in the office

TPS is also applied to our office work. Here, Jidoka is fully embraced to clarify and ensure that each task meets the needs of our internal customers. It means that less time is spent on re-work or other non-value-added activities. Within the office we are finding smart ways of ensuring quality is built into our processes by applying intelligent automation to our streamlined workflows. In addition, the concept of Just-In-Time is exhibited by our continuous pursuit to reduce the lead-time of our tasks. Being quicker to respond to changes in the market allows us to further optimise our resources. 

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Toyota Practical Problem Solving (PPS)—Introduction

The Framework: PDCA

• Plan is to identify and clarify the problem, including collecting data to understand the problem, setting a target, and doing a root-cause analysis.
• Do is the development and implementation of countermeasures.
• Check verifies whether these countermeasures were effective and the target has been reached.
• Act is to re-do and further improve if the targets have not been met (yet). If it was successful, the Act part looks for other locations and applications where this solution could be used (e.g., if it was a smaller trial to be rolled out on a larger scale). Toyota also shares these yokoten on an internal website with other plants.

Toyota practical problem solving consists of the steps as listed below. Note that sometimes you have a step more if you decide to split a step into two.

• Clarify the Problem
• Break Down the Problem
• Set a Target
• Root-Cause Analysis
• Develop Countermeasures and Implement
• Monitor Process and Results
• Standardize and Share

I will explain all these steps in much more detail, including the risks and difficulties, throughout this small series of posts. But before explaining these steps in detail, let me also show you the structure.

The Structure: A3

You probably know the structure already, or at least have heard of it: it is the famous A3 . This report, named after the standard A3 paper size, is commonly used at Toyota to tackle medium-sized problems. The A3 format was chosen because it was a good compromise between getting lots of data on a single page and also having a page small enough to be carried around on the shop floor. (And, as legend has it, A3 was supposedly the largest format to fit though a fax machine back in the day).

You will find all the steps from above again in this A3 format, an example of which is shown below, plus the obligatory header row with organizational data like title, date, and so on.

The A3 is intended to be filled out in pencil (not pen), which makes changing content easy by using an eraser. Nowadays digital tools are also often used, although Toyota still does this mostly by hand using pencil on paper. Digital A3s are easier to share and look prettier, but they are harder to make and much more effort is needed in creating the A3. If you have ever created an A3 in Microsoft Excel, you know what I am talking about (as Excel is wholly unsuited for such graphical work…Ugh!)

The “Do” part is actually quite small. If you understand the problem well, the solutions are rather easy. If you don’t understand the problem, you still may have a solution, but it will probably be an inferior one, if it works at all. Similarly, the Check and Act are also rather small.

In my experience, this is often done differently (and in my opinion worse) in many other Western companies. The focus is all on doing something, implementing some sort of solution. There is a bit of planning, but the vast majority of the effort goes into the “Do” part. The “Check” and “Act” parts are quite underdeveloped, if they exist at all.

A fancy presentation often substitutes for “Check,” resulting in many supposedly successful projects that did not improve much or even made it worse. Below I compared the normal representation of the PDCA circle having four equal quadrants with a PDCA circle based on the effort by Japanese or Toyota standards, and another PDCA circle based on the effort of (way too many) Western companies. I’ll let you be the judge on how this is in your company.

Over and over again I guide people through the practical problem-solving process, and at every single step they jump to a solution. Let’s take a (fictitious) example for the steps of the problem solving, where every step is going right for the solution, ignoring the initial purpose of the step:

• Clarify the Problem: Well, we need kanban!
• Break Down the Problem: Okay, how many kanban do we need?
• Set a Target: That’s how many kanban we need!
• Root-Cause Analysis: Um… we did this already. It’s the lack of kanban…
• Develop Countermeasures and Implement: Add kanban!
• Monitor Process and Results: Do we have kanban now? Yes, we do. Case closed.
• Standardize and Share: Hey, guys, use kanban!

PS: Many thanks to the team from the Toyota Lean Management Centre at the Toyota UK Deeside engine plant in Wales, where I participated in their 5-day course. This course gave us a lot of access to the Toyota shop floor, and we spent hours on the shop floor looking at processes. In my view, this the only generally accessible course by Toyota that gives such a level of shop floor involvement.

6 thoughts on “Toyota Practical Problem Solving (PPS)—Introduction”

Great ‘ Flow ‘ and easy to understand , specially for many who have limited exposure. Thanks

Thank you for sharing. PDCA is applicable on the shop floor, logistics, service industry – wherever Problems are accurately defined

Nice blog. I’m working in an NHS Production System (NHSps) design based on the Toyota and VMI Production Systems. Do you have any experience in this area?

Hi Tom, sorry, I am completely unfamiliar with the NHS production system. if you mean the National Health Service in the UK, I do have a bit of experience with lean Hospital.

Might I suggest a dry erase marker and a whiteboard? After a few times when the document structure is mostly stable, you can add lines with a permanent marker to fix the format in place. That way you’re not creating extra friction for the process.

As for actual A3, that works best when the A3 paper and printers that can print it are already readily available. I’m sure you ran across more than one business where just about every single printer on site can’t print anything larger than A4 or A3 paper simply isn’t available due to A4 used for everything.

Hi Andrey, I am a great fan of erasable notes, and use dry erase whiteboard markers a lot myself. An A3 printer is also really helpful, but just as you said, not every (small) business has one. For example, I only have an A4 printer in my office…

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A Lean Approach

Our highly acclaimed and successful Toyota Production System (TPS) is admired and copied throughout the world. It is regarded as the benchmark for manufacturing best practice.

In these difficult times of increasing competition, a lean approach has never been more important. Companies can come directly to the source and observe our Burnaston state of the art manufacturing facility,  where you will learn more about Toyota’s approach to manufacturing, increasing quality, efficiency and profitability.  Our Lean Approach Seminars offer delegates a unique introduction to the Toyota Production System (TPS) & Quality Management.  They are also the main source of income for our Toyota Manufacturing UK Charitable Trust.  All monies received go directly to the Trust and are donated to support the work many charities and community groups. Since 1992, Toyota UK and the Charitable Trust have donated over £7 million to many worthy causes.

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We are happy to work with individual companies and support them on their lean journey.

Please call the number below for more details.

How your day is planned

The day commences at 8am and finishes at 5pm

Introduction to Toyota

You will be welcomed by our MD or DMD who will give a brief overview on our UK operations, whilst sharing our Toyota Way philosophy.

Introduction to the Toyota Production System

Gain a solid grounding in the fundamental principles of TPS. TPS is a unique manufacturing philosophy, created to eliminate waste and achieve the best possible efficiency.

See for yourself how we develop our Members and Supervisors to practically do TPS. TMUK uses visual information to standardise, assess and manage activities. The Obeya Room is a space designed to present visual information to everyone in the team for on the spot decision making. Visualisation turns good data into clear evidence of what is really happening.

Quality Learning Centre (QLC)

Experience how we empower each Member with the value of “quality first”. Established to ensure a total focus on customer safety, our QLC demonstrates how Toyota changed its culture following the crisis in 2009 and 2010 and the subsequent recall, cutting out silos, addressing quality issues and rebuilding reputation. It underlines how safety is everyone’s responsibility and how keeping the customer safe comes first. It also reminds us not to forget the past and to celebrate restart as an opportunity to refocus.

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Learn how we drive kaizen by developing flexible, motivated Members. The role of HR systems are calibrated to ensure mutual trust and respect, flexible and motivated members and a continuous improvement culture exist. All of which are key to the Toyota Way, which you will see throughout your day with us.

Enjoy an informal sit down meal with our senior management team.

Floor Management Development Systems (FMDS). See how we keep the standard through effective visualisation, providing easy and quick detection of abnormalities, allowing active daily problem solving within the framework of clear targets/KPIs.

Press & Weld

Experience real productivity improvement through process kaizen. See the Toyota process management method by developing the most efficient process, contributing to the continuous improvement cycle and daily process management.

Question and Answer Session

Reconvene with our Senior Management to further question what you have seen throughout the day in an informal, open and honest discussion.

Who this course is for

Our Lean Approach Seminars target those in leadership roles whose organisations are embarking on a lean transformation journey and want inspiration on how a Lean Approach can make a difference to quality, competitiveness and engaging your workforce.

Lean thinking has been with Fortaco since the company was born. We believe in true lean.

To us, it is not just about improvement of a specific process by copying solutions used at Toyota. It is more about building a culture that helps our people reach their goals, therefore improving our business by having simultaneous activities on many levels.

We do not invest in lean departments. We want our leaders to understand what true lean is. The best way to understand is to learn from the source.

It was a great discovery for us to learn that TMUK arranges seminars, where delegates can see for themselves TMUK’s working environment and the way their leaders run the business. This is way more effective than reading a book about lean or hiring a lean consultant.

Our people started attending TMUK Seminars at the vehicle manufacturing facility in Burnaston, Derbyshire, in Spring 2018. Since that time, 52 colleagues have visited TMUK, including our top leaders, all heads of units and all production directors. We also invited some middle managers, engineers, and our HR departments. They all came back inspired and, more importantly, started to use the learning acquired within their own areas of Fortaco. They emphasize the importance, during the Seminar, of having the opportunity to ask questions directly to the people who contribute to the success of the Toyota organisation. We will definitely continue sending our personnel, as we find this to be a great investment in people, even though we are not an automotive company.

What people are saying...

Dublin Lean Network

Dr Stephen Ward, Chief Manufacturing Officer at the Cell and Gene Therapy Catapult, said: “Working with the Toyota team has provided valuable insight and advice which we have used to develop our own Operational Excellence programme. This insight will help us to integrate further Operational Excellence principles into our organisation and create an effective, high-performing environment for our colleagues and collaborators.”

"Thank you for all of your hospitality during our recent visit to Toyota UK. Our entire leadership team came away truly impressed and, quite frankly, awestruck by your intense focus on efficiency. It was certainly inspirational and gave us a lot to talk about in terms of how we could take some of your best practices and apply them to a mature oil and gas business. We really enjoyed our brief immersion into the ‘Toyota Way’ – thank you again for such an impressive and exciting visit."

“A fantastic opportunity for us to learn all about the Toyota Production System and witness the mastery of lean manufacturing by this global organisation.  Our visitors were inspired by what you have achieved and keen to take the lessons learnt back to their organisations. We extend our heartfelt thanks to each and every individual who joined us on this enlightening adventure. In the weeks to come, we eagerly anticipate sharing more profound insights about our enriching visit to Toyota. Member comment: "Super visit, very informative, took a lot away and was blown away with how well Toyota are organised and how, at every level of the business, everyone excelled at problem solving, process improvement and turning many small gains into big improvements.  Thanks again, would highly recommend". Steve Halpin Chairman Dublin Lean Network

"Visiting Toyota opened our eyes to the world of Lean. Their willingness to share what they do along with their humility to talk honestly about their journey is a real inspiration. I cannot recommend this Lean Seminar more highly.” Steve Casey Business Improvement Manager Nestle UK

"This is the ultimate factory visit. Apart from the excitement of actually visiting the company that invented the Toyota Production System, we had a true experience of all aspects of Lean – theory and practice. It was great to hear from senior managers explaining the philosophy, methodology and policies of the TPS, and then visit the shop floor to see it all in action. A valuable part of the day was the chance to discuss personal areas of interest with plant managers over lunch."

Experience a Toyota Way Masterclass in Virtual Reality

The pressures caused by Covid-19 have affected many charities and organisations, including our own Charitable Trust which has struggled to raise much-needed funding throughout 2020 and 2021. As our Lean Approach activity came to a sudden halt, new and innovative ways were needed to deliver our much sought after Seminars.

TMUK has been working in partnership with The Leadership Network (TLN), a global leader in developing transformational training, and Dr Jeffrey Liker for over seven years, training more than 800 executives to date on how to create a Lean culture in their companies.

Today, we venture into new territory and are excited to be involved with the executive Masterclass "Leading the Toyota Way" in Virtual Reality (VR), alongside our own on-site Seminars.  The VR experience enables us to offer additional options to share our ways of working, whilst supporting those much needed and worthy charitable causes.

The 5-day Masterclass captures the essence of Toyota's approach: going into every day with a healthy sense of crisis. The Lean mindset is about engaging everyone in solving problems and delivering kaizen more efficiently on a daily basis. With the Masterclass now delivered through Gemba, TLN's award-winning VR platform, this knowledge can be accessed by thousands of companies in need of transformation worldwide.

To find out more about the “Leading the Toyota Way” Masterclass in VR, follow the link below.

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If you need to cancel more than one week after a donation invoice has been issued, donations to the Charitable Trust cannot be refunded.

However, a substitute delegate from your own organisation can be nominated. This should be submitted in writing at least four weeks prior to your Seminar date.

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Model Number:  The model number of your toyota forklift is extremely important for relaying information to your dealers about repair or technical assistance and for looking up replacements part!

Serial Number:  The serial number on your lift is the most important number.The model serial number combination will allow us to provide you with the parts that will fit your particular piece of equipment.

How to Find Your Equipment Serial Number

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Problem Solving Through Toyota Lean Management

Albert Einstein once wrote, “We cannot solve our problems with the same thinking we used when we created them.” Simply put, coming up with creative and innovative solutions to problems oftentimes requires you to look at the problem with a fresh perspective. As we’ve discussed in previous  Toyota Lean Management blog posts , recognizing and cutting down on waste is critical to increasing your efficiency, reducing costs, and improving throughput. However, in order to make these improvements and see positive changes in ROI, a key step is recognizing where problems exist and working to solve them.

To recognize and solve these problems, it is often helpful to view them with a different lens to reach a newfound conclusion. Toyota’s 8 steps for problem-solving act as the lens that allows you to view different aspects of your operation from a new perspective.

Consider these eight steps as you start on the path to continuous improvement.

1. Clarify the problem

The first step in solving a problem is realizing that one exists. You can define a problem by asking yourself the following questions:

• Does my current process deviate from the standard?
• Is there a gap in my current process with what I am trying to accomplish vs. what I am accomplishing?
• Are my customer’s needs being met with my current process?

If the answer to any of these questions is no, then you know you have a problem that could use some improvement.

2. Break down the problem

Now that you’ve verified the problem, you can begin to break down the issue into smaller, more detailed pieces. It can be helpful to analyze the different inputs and outputs of your process so you can effectively see where you are currently placing your efforts. Don’t bite off more than you can chew. It is much easier to manage and solve smaller problems rather than attack one large problem with little direction.

3. Set a target

The third step is all about commitment and consistency. Now that you’ve broken down the problem, how are you going to go about solving it? How are you going to meet your new deadline, and how long will it take to complete? Allot adequate time for each activity to ensure you are giving each aspect of the project enough attention.

4. Analyze the root cause

Analyzing the root cause allows you to identify each of the factor(s) that caused a problem in the first place. Sometimes there is more than one cause, and it is important to consider each one as you work to address the issue.

5. Develop countermeasures

Establishing the root cause is only half the battle. Now, you must develop countermeasures for each of those root causes to prevent the same issues from occurring again.

6. Implement countermeasures

Now that you’ve established your countermeasures, it is time to put them into action. You may want to seek ideas from other team members to ensure you are not missing any steps. Also, it can be helpful to track how effective each countermeasure is performing along the way and making adjustments where necessary.

7. Evaluate Results and Process

The seventh step is all about implementing a system to review and evaluate how your new process is working. Countermeasures will fail, but it is important to develop an effective system that always looks for areas of improvement in order to reach the desired result.

8. Standardize Successful Processes

After receiving successful results from your previous evaluation, it is time to standardize the process within your team and the entire organization. As you work through the standardization process, continue to look for possible unresolved issues that you may have missed the first time.

Remember, the road to establishing a lean organization doesn’t stop once you improve a few processes. Lean isn’t just about identifying where you can do better; it’s about instilling a culture of respect and developing to create a workplace that your associates enjoy working in. Achieving business goals and leaner processes requires dedication and teamwork from every individual in the organization. Encourage open communication and empower your employees to bring problems to your attention when they are detected.

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The 7-step Problem Solving Process at Toyota

Innovative → problem solving has helped → Toyota become one of the most successful automakers in the world. Toyota can confidently distribute a tremendous amount of responsibility to the people who actually do the work, from the most senior, experienced member of the organization to the most junior. This is accomplished because of the tremendous emphasis on teaching everyone how to be a skillful problem solver .

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The Truth About Data and PDSA/PDCA from a Toyota Publication

Out there in the Lean and quality improvement communities, you sometimes hear some silly things. Sometimes, I want to attach the “ Lean As Mistakenly Explained” (or L.A.M.E.) label to what's said when it really seems off the mark from what Lean is really all about. Davis Balestracci, a columnist for Quality Digest, passed along something he heard from a “Lean guru” (whatever that means):

“In my opinion, any approach should also involve the use of data in some way, shape, or form. I once had a lean  sensei  (local “guru”?) vehemently make the point that lean does  not  involve data at all .”

What?? Read his entire column here . I asked Davis, in a comment, if he had misunderstood the speaker. I was trying to give the speaker the benefit of the doubt, given the oft-repeated quote from Toyota's Taiichi Ohno:

“Data is, of course, important in manufacturing,” Ohno often remarked, “but I place greatest emphasis on facts.”

Ohno wasn't saying to ignore data. He was saying to not rely on reports – today, that would be spreadsheets and “dashboards.” Reports and data can be skewed (intentionally or inadvertantly). Ohno was saying we have to go to the Gemba (get out of the office) and see what can be verified with our own eyes. I've never heard anybody say that data isn't important in Lean.

I *have* heard Six Sigma people say, incorrectly, that Lean is just qualitative and Six Sigma is the only “data-driven” methodology. That's false.

I was taught to use data in Lean improvement work and that's certainly the message sent by Toyota – to use data (and statistics!) when appropriate and helpful. Not everything can be quantified (a key Deming principle), but we certainly look for data and measures where we can, rather than relying on feelings and opinions. Did patient satisfaction improve? “I feel like it did.”

Wait – how do we  know that it improved? Do we have data that back up that claim? I recently found a Toyota publication that was (probably somewhat sketchily) shared on a Chinese website . It says, in part (drawing on Masaaki Imai and his book  KAIZEN , which is cited in footnotes): The principles of Kaizen are:

• the most important company assets are the people
• evolution of processes will occur by gradual improvement rather than radical changes
• beneficial changes are to be implemented immediately where possible
• improvement recommendations must be based on statistical and quantitative evaluation of processes

I don't know who is running around saying “data doesn't matter” in Lean (unless it's, like I might suspect, a “Lean Sigma” person who learned some sort of claptrap about Lean not being “data-driven,” instead of somebody who has learned directly from Toyota and its people). You can't fault individuals if they've been taught badly (even if that person is a professor).

Related post from 2013:

Can't Always Believe Somebody Saying “Toyota Would Tell You To…”

Does Toyota think data should be involved? More evidence, from the document:

“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.”

Here is a point where Toyota strays from what Dr. Deming taught them about things being measurable :

“… the most important figures that one needs for management are unknown or unknowable (Lloyd S. Nelson, director of statistical methods for the Nashua corporation), but successful management must nevertheless take account of them.”

That's an interesting divergence of thought. those two equally valid opinions or a difference between right and wrong? Is it possible to prove or disprove either statement (“if you can not measure it…” or “the most important figures… are unknown or unknowable…”)? Seems like two different opinions. I'd align myself with Dr. Deming, based on my own experiences.

Does “Plan Do Study Adjust” Jump to Solutions?

I also hear some loud voices that say PDSA (Plan – Do – Study – Adjust) is a flawed model because it supposedly starts with the “Plan” to implement a certain solution. That is, of course, hogwash and you realize it as such if you've been taught or mentored on PDSA/PDCA from a Toyota person.I've been lucky to have that sort of coaching. And, that information is available in books, too.

“Plan” actually begins with studying and understanding your system and the problem. We have to, in “Plan” properly define a problem so we can then understand causes and root causes… long before every thinking about countermeasures to test in the “Do” phase of PDSA. Here's a diagram from that same Toyota publication:

What is “Plan,” according to Toyota? Define the problem, analyze the problem, identify causes, AND plan countermeasures. There is no “jumping to solutions” in this approach. You see the same thing in the Toyota “8-step problem solving model” and its mapping to PDSA (and its mapping to the Six Sigma DMAIC model) from the “Kaizen Factory” website .

So, if you ever hear these statements:

• Lean is not about data
• Lean would say “ kick the patient out of the room because their time is up “)
• PDSA says jump to a solution without first studying the problem

I think you can definitively say, “WRONG!”

Sometimes, we have different opinions… and that's OK. Sometimes, things are factually incorrect.

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Nice post. As regards the words in PDCA/PDSA (I prefer Study over Check) I don’t think that the model is flawed, in fact the opposite, but I do think that the words: Plan, Do, Study, Act are misleading. People hear “Plan” and they think “project plan” and they spend weeks or months planning a change. They hear “Do” and that sounds like “enact the plan”, as in implement it as if it were the solution. They hear Study but frankly they have all ready planned and done for months and they haven’t got time for any studying and it doesn’t get done. And “Act”? What’s the difference between that and Do? We already did the Act in Do!

My reformulation is HELP: Hypothesis, Experiment, Learn, Put into Practice. I think that takes it back closer to the scientific method that PDSA is based upon and my experience is that people understand it better. They get that Hypothesis is an idea to be tested, it is explicit that Experiment is something that tests the idea, Learning is easier since by design, the experiment is small enough to learn from and Put into Practice is self-evident (of course depending upon what you Learn, you may decide not to put anything into practice).

After a little bit of feedback I am toying with changing the H from “Hypothesis” to “Have an Idea”. What do you think?

Thanks for your comment. I have also shifted to using PDSA generally… “check” runs the risk of sounding like “confirm you got the results you predicted” as opposed to an open and honest evaluation of the test.

You’re right that “Plan” and “Do” can get misinterpreted.

I’ve sometimes wondered if Plan-Test-Study-Adjust wouldn’t be better terminology.

HELP is an interesting framework. I would prefer “Hypothesis” because that sounds more like a test. “Have an Idea” sounds like jumping to a solution.

That’s why, in Kaizen, I emphasize identifying a problem AND having and idea. See this template for that structure… this card is meant to model PDSA.

PDSA is most definitely not a jump-to-solutions approach. Not only does an individual PDSA cycle include the analysis steps that Mark mentioned in the Plan phase, but if we zoom out to see an individual PDSA cycle as one small step in a larger improvement cycle (i.e. the Improvement Kata), then we see that additional planning/analysis precedes the use of PDSA. This pre-PDSA planning/analysis ensures that we understand the bigger systemic issues prior to launching PDSA to address process-level issues, and is further evidence that PDSA is not a jump to solutions approach.

Furthermore, when PDSA is utilized properly as a means of hypothesis testing, then even if we bypassed all the planning/analysis steps (not advisable, but in the real-world this happens) we would still not be jumping to solutions because we would be completely willing to revise our hypothesis based on the evidence (i.e. modify the countermeasure or choose another one to test). In other words, it’s not jumping to solutions if you’re just testing potential countermeasures. One might say that this is an inefficient approach, but that ignores the incredible value of the learning that is produced through multiple cycles of hypothesis testing.

At the 2014 Lean Transformation Summit, there’s a presentation about Toyota (the TSSC) helping the Food Bank for NYC.

They all made it clear that data was important… looking at measures was a key way of figuring out if you have improved.

But, of course, it wasn’t all about measures… it was also about provide the right service in the most dignified way.

See my notes:

[…] a great guest post by Karen on Mark Graban’s blog about PDSA vs. PDCA, and another spirited post by Mark himself on the […]

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