Achieve Six Sigma Using Toyota Production System Tools


W. Edwards Deming says business leaders don’t have an “appreciation for a system”, your business will, when we are done. Subsequently Toyota has Profound Knowledge of every process in their system.


ACHIEVE SIX SIGMA PERFORMANCE. Ramp up performance using the tools of the Toyota Production System. Some Benefits Include:

  1.  MARKET DOMINANCE. Original car owners that have kept their cars for 15 years, above all, 10 of 15 listed were Toyota’s.
  2. FINANCIAL PERFORMANCE. Net income last year $22.0 B / average of $60,000 net income per employee. GM’s net income was $8.1B /average $46,821 net income per employee.
  3. OPERATIONAL EXCELLENCE. That is to say, continuously remove wasteful process activities Toyota:
    1. Accelerates processes,
    2. Decreases costs (by removing wasteful activities), and
    3. Increases quality (by performing less actions on a product or service).
  4. EFFICIENCY. Toyota is 30% more productive than GM.
  5. SEEKING PERFECTION LEADS TO A CULTURE OF GREATNESS. Toyota accelerates into the future utilizing 11 ideas per year per every person at Toyota.
  6. Above all the PROFOUND KNOWLEDGE OF EVERY PROCESS IN THE SYSTEM. Edwards Deming says that executives don’t have Profound Knowledge of their system. Toyota does.
  7. FOCUS ON VALUE DELIVERED. Most importantly, you know the Value Delivered at each step in your system.
  8. Strategic INTEGRATION WITH SUPPLIERS to ensure quality standards. Embed Toyota employess within suppliers to ensure best practices taught and followed.

The 60-25-20 Rule: 60 Days Setup, 25 Program Steps, Answer 20 Questions to Start – Above all Improvements Accelerate Your System Into the Future

Each Business Category Driving the Excellence of the Toyota Production System Into:

  1. Manufacturing,
  2. Businesses,
  3. Government, and
  4. Hospitals.

Achieve Six Sigma Performance Utilizing the Benefits of the Toyota Production System Applied to 5 Industries (7 min on a new YouTube page):

Build Your Toyota Production System

I demonstrate how to achieve Six Sigma Performance by building your Toyota Production System for five different transactional industries. Manufacturers who are running at less than 4.5 Sigma, Businesses that want to attain Operational Excellence and Profound Knowledge of their processes, Governments that owe their benefactors value for their money, Military that has a large Supply Chain with a huge opportunity to decrease Supply Chain costs, and finally Hospitals, which don’t understand the impact of Single Payer.

The Build of your Toyota Production System encompasses all of Toyota’s operations, not just manufacturing. Therefore the benefits apply to any entity with a system. Above all, with their system approach, they have attained Profound Knowledge of all their processes, increase process velocities, decrease process costs, and increase process quality. Their goal is to attain perfection by averaging 11 improvement ideas per year for every employee in their company. This is how you attain Operational Excellence.

Manufacturers

Money is left on the if you are running anything less than 4 Sigma. It may even make sense to shoot for 4.5 Sigma, since your Sigma capability decreases over time. A Value Stream helps to find which processes to target for improvement. A Value Stream gives you Profound Knowledge of every process in the Value Stream. As the Value Stream improves, you keep the Value Stream Map updated so you always have Profound Knowledge. Toyota’s Continuous Improvement program is so powerful they do not expand their business unless they are sure they can continue the program.

Business

Businesses focus heavily on either Customer Intimacy, Innovation, or Operational Excellence. Every business should focus on Operational Excellence. That is to say, Toyota has a maniacal focus on continuously increasing their margins. Their goal is to march towards perfection, shouldn’t you?

Governments

Firstly Governments and the Military have a fiduciary responsibility to their citizen supporters to us money wisely. Certainly there is a tremendous amout of saving with aggreasive managing the costs of your supply chains and move some of them to Just-In-Time. Further attain Profound Knowledge of your processes and continually improve on the road to perfection.

Hospitals

Some Hospitals are going out of business and others risk going out of business in the future, with the advent of Single Payer. Single Payer hospitals operate about 35% more efficiently than American hospitals. They increase velocity through their Emergency Departments, perform more surgeries per day, and do more than talk about focusing on the patient experience. Focus on the Patient and consequently satisfy Doctors and Insurance Companies.

Hospital is a system and that system should constantly reach for perfection.

In Conclusion

The road to greatness takes time. If you pause, your competitors will pass you. However, using Six Sigma and the Tools of the Toyota Production System, and at least, striving for perfection, consequently puts you in the lead. Toyota is still leading.

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