Build Your 6+ Sigma System, Utilizing Toyota Production System Tools.
Toyota has been at 6+ Sigma for over a Decade.
Each Business Category Listed Below will Excel Towards the Operational Excellence of Toyota:
- 6+ Sigma Manufacturing,
- 6+ Sigma Businesses,
- 6+ Sigma Government,
- 6+ Sigma Military, and
- 6+ Sigma Hospital.
It’s not easy, but the sooner you start, the sooner benefits will accrue.
ACHIEVE 6+ SIGMA PERFORMANCE. The Very High Level Summary Plan:
- Build your Guiding Principals – Directing Janitors to the CEO towards Excellence,
- Map your Value Streams – Focus on Value Delivered and Govern with Metrics,
- Identify Areas of Flow – When one Process Finishes the next Process is Ready,
- Use the Pull Methodology when Possible – 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,
- Seek Perfection – At an Idea Generation Rate of: 11 Ideas/Year/Employee; Idea Direction: Only in a System Benefiting Direction, also
- Integration with Suppliers leading to price drops
- Near Continuous defect eradication using “andon” Method (currently Toyota has about 800 andon calls per year per plant)
ACHIEVE 6+ SIGMA PERFORMANCE. The Plan Above Leads to at Lease These System Benefits:
- Market Dominance. Original car owners that have kept their cars for 15 years, 10 of 15 listed were Toyota’s,
- Superior Financial Performance. Toyota: $60,000 net income per employee, GM $46,821 net income per employee,
- A Winning Culture. By involving everyone in System Improvement, the Culture becomes a Competitive Advantage,
- and so on…
One major benefit attained when you Build your System Using Toyota Production System Tools: W. Edwards Deming says system leaders don’t have an “appreciation for a system”, you will when we are done. Subsequently Toyota has “Profound Knowledge of every process in their Production System With the Metrics to Prove It”. This is One Step in How a 6+ Sigma Performance System is attained.
Achieve 6+ Sigma Performance Utilizing the Tools of the Toyota Production System Applied to 5 Industries (7 min demonstrated in a YouTube video):
The Build of 6+ Sigma Performance using the Toyota Production System Tools 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. They constnatly increase process velocity, decrease process cost, and increase product/service quality.
Their goal is to attain Perfection by:
- Averaging 11 improvement Ideas/Year by Every Employee in Their Company,
- All Ideas in a Strategic System Benefiting Direction, and finaly
- Creating a Culture of Winning.
This is how you attain Operational Excellence and create a Culture of Excellence.
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. Get to 6+ Sigma Performance using the Tools of the Toyota Production System.
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.
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.
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 Militaries 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.
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.
A Hospital is a system and that system should constantly seek perfection.
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 for a long time.
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