Build Your Toyota Production System

Extreme Operational Excellence is The Gift That The Tools of The Toyota Production System Combined With Lean Six Sigma Gives You, Starting Now, and Improving Into The Future

This Holistic, Fully Integrated System, Operates at Less Than 3.4 Defects per 1,000,000 Chances of a Defect. It has Multiple Feedback Loops and Continual Defect Removal. The Toyota Production System Tools, Combined with Lean Six Sigma Tools, make a Powerful Combination.

“The following are some of the benefits that come with improving your System with 6+ Sigma Toyota Production System Tools:”

  1. Knowing the Performance of Every Process gives you Profound Knowledge of your system
  2. Knowing what Process to Strategically Improve to deliver the greatest benefit
  3. The BEST CONTINUOUS IMPROVEMENT PROGRAM, Kata Continuous Improvement, Policy Propagation, and Realization (Toyota’s Secret and the reason no one will ever catch them),
    • IMPROVEMENT RATE – Average 11 Ideas per Year per Employee,
    • IMPROVEMENT DIRECTION – All ideas in a Management Controlled Direction,
    • CULTURE IMPACT – By including all Employees, Creates a Winning Culture (a Competitive Advantage).
  4. Provide Guidance for everyone in your system
  5. Standardize on Best Practices
  6. Eradicate Defects every day in your products or services
  7. A System that Flows
  8. Pull from one Process to Another? There are big advantages to Pulling,
  9. For Manufacturers, Build a Lean Manufacturing System to replace Antiquated Mass Production,
  10. An Integration and Strategic Relationship with Suppliers resulting in meeting Toyota’s requirements.
  11. $280,000 net income per employee,
  12. $737B Net Income through organic growth.
  13. Market Dominance. Original car owners that have kept their cars for 15 years, 10 of 15 listed were Toyota’s,
  14. Subsequently, apply for a Baldrige Performance Excellence Award for Process Excellence. and finally,
  15. Extreme Operational Excellence is one of Treacy and Wieresima’s Competitive Advantages.

What Does 6+ Sigma Mean?

Sigma LevelAssociated Defects Per Million Opportunities% Throughput Without DefectComment
3.066,80093.3%In the 21st century, no one should be able to compete by generating this many defects.
3.522,70097.7%
4.06,20099.4%If you are willing to operate at this level, you must shoot for a higher level. Machines degrade over time.
4.51,35099.87%
5.023099.977%Whether this performance is acceptable or not depends on the number of parts per final product. If Toyota ran at 5 Sigma, every 7th car would have a defect.
5.53099.997%
6.03.499.99966%This should be the goal. It decreases the Cost of Quality and will delight your customers.
An automobile incorporates 30,000 parts. 6+ Sigma means Toyota’s 10th or greater car will have a defect. A defect could include a paint blemish or a non-spherical ball bearing. Toyota constantly improves on this with its Kata Continuous Improvement, Policy Propagation, and Realization Program.

A Very High-Level Plan

Each a Competitive Advantage, that Drives Toyota Greatness. This is the Very High-Level Plan for Extreme Operational Excellence:

  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. Above all, Kata Continuous Improvement 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 Management Controlled Direction, also
    4. A winning culture as everyone is involved in System Improvement.
  6. Consequently, 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 averages about 800 andon halts per year per plant).
  8. Lean Production replaced Mass Production (Detailed and Explicit Information).
  9. Suppliers deliver Just-in-Time and meet quality standards, and
  10. This is what it takes to achieve Extreme Operational Excellence.

Where Else Can you Get a 450% ROI, Based on a $772,000 Cost per Year Also, Other Information That is Listed Below:

  • For example, 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.
Details Here on the ROI Calculation, and Other Subjects Listed

All Systems will Excel, Your System Marches Towards the Operational Excellence of Toyota:

  1. 6+ Sigma Manufacturing,
  2. Extreme Operational Excellence Business,
  3. Constantly Improving Government,
  4. Adapting to Future Challenges Healthcare,
  5. Supply Chain Improvement Military,
  6. Agile and Robust Hospital, and
  7. 6+ Sigma System, Not Listed Above.

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

6+ Sigma 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 Extreme Operational Excellence using the Tools of the Toyota Production System.

See How Toyota Built Lean Manufacturing or Lean Production

Extreme Operational Excellence 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. Finally, their goal is to march toward perfection, shouldn’t they? Build Your Extreme Operational Excellence Business System.

Constantly Improving 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.

Adapting to Future Challenges 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 the GDP whereas European healthcare costs are about 9% of the GDP. Europeans have a longer life expectancy and fewer infant deaths. They do this by focusing on the process. Certainly, it’s time that American Healthcare Organizations start focusing on process improvement by using the Tools of the Toyota Production System Leading to Extreme Operational Excellence.

Supply Chain Improvement Military

The Military has a massive Supply Chain. So does Toyota. In fact, Toyota has the largest American parts content in their American-made automobiles of anyone manufacturing cars 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 its 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 Extreme Operational Excellence. Build Your 6+ Sigma Performance Military System. Improve your Military System now and into the future.

Agile, Robust, and Constantly Changing Hospital

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 Extreme Operational Excellence Hospital System.

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

6+ Sigma All Other Non-Listed Systems

There are many advantages accrued when you focus on process improvement. Firstly, 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. Don’t pause, your competitors will pass you. However, using Lean Six Sigma along with the Tools of the 6 + Sigma Toyota Production System, and striving for perfection, consequently creates a Competitive Advantage. Toyota is leading and will be for a long time.

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