Sunday, February 1, 2009

Review of Toyota DNA Article

Toyota Production System (TPS) is a dynamic system with rigidly scripted activities, production and connections. The success of TPS lies not in the cultural roots but rather in rigid specifications. Rigid specification doesn’t mean inflexible. The irony is rigid specification makes flexible and adaptable system. TPS is following a scientific method, not a trail and error, to define any activity or make any improvements. The system encourages the scientific way of experiment at all level of the organization and that distinguishes it from other organizations. In this article, the implicit nature of Toyota production system was deciphered by four principles. 

Rule 1: Standardization 
The unstated rule of TPS is all the work must be highly specified as to content, timing, sequence and outcome. All the activities are split into series of small activities and outcome of each small activities are predicted. The actual outcome of each activity is compared with the expected and any deviation is immediately communicated. Standardization reduces the variation and in turn improves quality, productivity and reduces cost.

Rule 2: Communication.
While the rule 1 talks about differentiation of individual tasks, the next rule explains how to smoothly integrate individual activities. This rule states that every connection must be direct, standardized, and well-defined. Toyota uses tool like Kanban, Andon to form a direct communication between supplier-customer. 

Rule 3: Simple and direct flow
Third rule states that every product or service must follow the simple and specified path. On the contrary, each line can have multiple products. In TPS, the product or service is not simply passed down to the next available resource rather specified resource. Assigning a specific pathway to each product enables to conduct experimentation every time the product flows. 

Rule 4: Continues Improvement (CI)
Continuous improvement must be made in product or service pathways by scientific method at the lowest level of organization under the supervision of teachers. Toyota teaches their workers how to improve scientifically by conducting bona fide experiment. The frontline workers make the improvement and the supervisors provide assistance and direction. Problem solving and continuous learning occurs at all levels of the organization. 

TPS communicates the ideal notion to all employees and that translates into common goal and shared vision. The entire organization strives to achieve the ideal state – and anything less build a creative tension for CI. The authors believe that the rules help Toyota to stable and continuously improve at the same time. The authors conclude that it may take long time for any company to replicate the TPS but the dedication to apply all these rules will make it happen.