Utilize Tools of the 6+ Sigma Toyota Production System


The Toyota Production System’s Gift to You is a Maniacal Focus on System & Process Improvement


Some Questions for Anybody Operating a System

  1. Do you know the performance of every process in your system?
  2. Do you know what process to strategically improve to deliver the largest benefit?
  3. Do you continuously improve your system (Toyota’s Secret & the reason no one can catch them):
    • RATE – Average 11 Ideas per Year by all Employees,
    • DIRECTION – All in a System Benefiting Direction,
    • CULTURE – By including all Employees it Creates a Winning Culture.
  4. Do you integrate with your suppliers to meet your requirements?
  5. Do you provide guidance for everyone in your system?
  6. Do you eradicate defects every day from your products or services?
  7. Does your system flow?
  8. Do you Pull from one process to another? There are big advantages to Pulling, and finally
  9. For Manufacturers, Build a Lean Production System replacing antiquated Mass Production.

These are all benefits that come with building your System with Toyota Production System Tools.


Each Business Category Listed Below will Excel Your System Towards the Operational Excellence of Toyota:

  1. 6+ Sigma Manufacturing,
  2. 6+ Sigma Businesses,
  3. 6+ Sigma Government,
  4. 6+ Sigma Healthcare,
  5. 6+ Sigma Military,
  6. 6+ Sigma Hospital, and
  7. 6+ Sigma System, Not Listed Above.

It’s not easy, but the sooner you start, the sooner benefits accrue.


Where Else Can you Get a 450% ROI, Based on a $772,000 Cost per Year and the Other Information Below (Click for Details):

  • ROI:
    • Cost Calculations,
    • Benefits Explanation,
    • Subsequent Estimated ROI Calculation.Value Stream Discussion,
  • Value Stream Map and What Information is Included Discussion,
  • Estimated Time to Map a Simple Process,
  • Estimated Time to Map a Complex Process, and
  • Team Personnel Responsibilities.

A Very High-Level Plan, Each a Competitive Advantage, that Makes Toyota Great:

  1. Build your Guiding Principals (Detailed and Explicit Information) – Directing Janitors to the CEO towards Excellence,
  2. Map your Value Streams (Detailed and Explicit Information) – Focus on Value Delivered and Govern with Metrics,
  3. Identify Areas of Flow (Detailed and Explicit Information) – When one Process Finishes the next Process is Ready,
  4. Use the Pull Methodology when Possible (Detailed and Explicit Information) – Pull Means the Process Requests the Product or Service When they are Ready. Pull is faster than Push, Which Means Every Process goes as Fast as Possible,
  5. Seek Perfection (one of the reasons Toyota will never be caught) (Detailed and Explicit Information)
    1. This is Toyota’s secret and how come they will never be caught,
    2. At an Idea Generation Rate of 11 Ideas/Year/Employee,
    3. Idea Direction: Only in a System Benefiting Direction, also
    4. A winning culture as everyone is involved in System Improvement.
  6. Integration with Suppliers leads to price drops and quality increases (Detailed and Explicit Information),
  7. andon” Continuous defect eradication (Toyota’s other secret) (Detailed and Explicit Information) (currently Toyota has about 800 andon halts per year per plant).
  8. Lean Production replaced Mass Production (Detailed and Explicit Information).

The Plan Above Leads to at Least These System Benefits:

  1. Market Dominance. Original car owners that have kept their cars for 15 years, 10 of 15 listed were Toyota’s,
  2. Superior Financial Performance. Toyota: $280,000 net income per employee,
  3. A Winning Culture. By involving everyone in System Improvement, the Culture becomes a Competitive Advantage,
  4. and so on…

A major benefit of Building Your System Using Toyota Production System Tools: Performance Knowledge of Every Process. W. Edwards Deming says system leaders don’t have an “appreciation for a system”, you will when we are done. This is but One Step on the Journey to becoming a 6+ Sigma Performance System.


Toyota Achieved 6+ Sigma Performance in Part by Utilizing This High-Level Plan (an Explanation of 6 Sigma is Also Contained in the Presentation):

6+ Sigma Definition and Very High Level Plan

Build 6+ Sigma Performance utilizing Toyota Production System Tools. Benefits apply to any entity with a system. Attain Operational Excellence. Above all, with their system approach, they have attained Profound Knowledge of all their processes. They constantly increase process velocity, decrease process cost, have a winning culture, and increase product/service quality.


This is How You attain Operational Excellence, Create a Culture of Excellence, and Start Your Drive to Leap Ahead of Your Competition.

Manufacturers

Money is left on the if you are running anything less than 4 Sigma. It may even make sense to shoot for 4.25 or 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 that they do not expand their business unless they are sure they can continue the program. Get to 6+ Sigma Performance using the Tools of the Toyota Production System.

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 its margins. Their goal is to march towards perfection, shouldn’t you? Build Your 6+ Sigma Performance Business System.

Government

Firstly Governments have a fiduciary responsibility to their citizen supporters to use money wisely. Certainly, there is a tremendous amount of saving with aggressively managing Supply Chain costs and moving some of them to Just-In-Time. Further, attain Profound Knowledge of your processes and continually improve on the road to perfection. Build Your 6+ Sigma Government System using tools of the Toyota Production System Model.

Healthcare

Healthcare Organizations focus on delivering value to patients as they should. Toyota delivers value to its customers by continuously working on process improvement. American healthcare costs are at about 17% of GDP whereas European healthcare costs are about 9% of GDP. Europeans have a longer life expectancy and fewer infant deaths. They do this by focusing on the process. It’s time that American Healthcare Organizations start focusing on process improvement by using the 6+ Sigma Tools of the Toyota Production System.

Military

The Military has a massive Supply Chain. So does Toyota. In fact, Toyota has the largest American parts supply percentage in their American-made automobiles. More than any other automobile company in America. They still maintain 6+ Sigma manufacturing performance. For an automobile to be 6+ Sigma, all the parts need to be better than 6+ Sigma. Build Your Toyota Production System.

Toyota’s Production System encompasses their whole business. There are too many advantages to discuss here, but the Military’s adoption of the tools of the Toyota Production System will move the Military system towards 6+ Sigma. Build Your 6+ Sigma Performance Military System. Improve your Military System.

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 focus on process improvement. They also 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. Build Your 6+ Sigma Performance Hospital System.

Hospital is a system and that system should constantly seek perfection.

Additional Other Systems

There are many advantages accrued when you focus on process improvement. Your system is comprised of Value Streams. Each Value Stream contains all the processes needed to deliver a service or product. A Value Stream transcends departments and focuses on the value you produce. Virtually every Toyota process is in a Value Stream. Your processes are in Value Streams whether you recognize that or not.

In Conclusion – March Towards 6+ Sigma Performance Using the Tools of The Toyota Production System

Building your system with the tools of the Toyota Production System takes time. The road to greatness is arduous. If you pause, your competitors will pass you. However, using Lean Six Sigma and the Tools of the Toyota Production System, and at very least, striving for perfection, consequently puts you in the lead. Toyota is leading and will be for a long time.


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