Achieve Six Sigma With 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. Toyota has Profound Knowledge of every process in their business.
ACHIEVE SIX SIGMA PERFORMANCE. Ramp up performance using the tools of the Toyota Production System. Some Benefits Include:
- MARKET DOMINANCE BENEFIT. Original car owners that have kept their cars for 15 years, above all, 10 of 15 listed were Toyota’s.
- FINANCIAL PERFORMANCE BENEFIT. 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.
- OPERATIONAL EXCELLENCE BENEFIT. That is to say, continuously remove wastefull process activities Toyota:
- Accelerates processes,
- Decreases costs (by removing wasteful activities), and
- Increases quality (by performing less actions on a product or service).
- EFFICENCY BENEFIT. Toyota is 30% more productive than GM.
- SEEKING PERFECTION/CULTURE OF GREATNESS BENEFIT. Toyota accelerates into the future utilizing 11 ideas per year per every person at Toyota.
- PROFOUND KNOWLEDGE BENEFIT. Edwards Deming says that executives don’t have Profound Knowledge of their system. Toyota does.
- FOCUS ON VALUE DELIVERED BENEFIT. Most importantly, you know the Value Delivered at each step in your system.
The 60-25-20 Rule: 60 Days Setup, 25 Program Steps, Answer 20 Questions to Start – Improvements Accelerate Your System Into the Future
Each Each Business Category: 1) Manufacturing, 2) Business, 3) Government-Military, and 4) Hospitals includes a Video and a Plan for Greatness.
Achieve Six Sigma Perfomance Utiliznig the Benefits of the Toyota Production System Applied to 5 Industries (7 min):
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 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. The benefits apply to any business entity. 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.
Detailed Discussion on How to Achieve Six Sigma Performance Through the Tools of the Toyota Production System (40 min):
This 40 min video is a much more in-depth overview of how the Toyota Production System was built and how you can achive six sigma performance. I recommend that if you are really interested in implementing the Toyota Production System, that you watch this video also.
Manufacturers, you leave money on the table 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.
Great 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?
Govenments and the Military have a fudiciary responsibility to their citizen supporters to us money wisely. Start with managing the costs of your supply chains and move some of them to Just-In-Time. Attain Profound Knowledge of your processes and continually improve on the road to perfection.
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.
A Hospital is a system and that system should constantly reach for perfection.
The road to greatness takes time. If you pause, your competators will pass you. However, achieving Six Sigma, or at least, striving for perfection, consequently puts you in the lead. Toyota is still leading.
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