System Improvement means Attaining Operational Excellence, a Competitive Advantage Attained by a Maniacal Focus on Process Improvement
System Improvement relies upon the tools of the Toyota Production System to Improve System Performance and achieve Operational Excellence. Subsequently, strive for perfection while creating a corporate culture of greatness. Here I show how system excellence is achieved using the Toyota Production System as a model for system improvement and performance excellence.
Toyota Production System Benefits for Systems include:
- FIRSTLY, CONSTANTLY ERADICATE FAT OR WHAT LEAN SIX SIGMA CALLS WASTE,
- CREATE UNIQUE SYSTEM VALUE THROUGH OPERATIONAL EXCELLENCE,
- CONSTANT DEFECT REMOVAL,
- SUBSEQUENTLY, INCREASED NET PROFIT,
- IF POSSIBLE, “PULL” WHERE POSSIBLE,
- ABOVE ALL, THE WHOLE COMPANY QUEST FOR PERFECTION,
- FOR EXAMPLE, LEADING TO A CORPORATE CULTURE OF GREATNESS,
- DIRECTION TO EXCELLENCE BY GUIDING PRINCIPLES,
- STRATEGIC SUPPLIERS DECREASE PRICES, YEAR OVER YEAR, and
- SO MUCH MORE.
Systems exist in a world of cutthroat challenges. For instance, there is always a push to increase margins. That is exactly where the Toyota Production System comes into play. By implementing components of the Toyota Production System, companies achieve Operational Excellence consequently, they accomplish this through Profound Knowledge of their processes.
Measuring the Value Delivered – The Power of a Value Stream
A Value Stream delivers System Improvement by including all the processes from customer order to customer delivery. Rather than a department-by-department view, it gives you a holistic view of your system’s creation of value. I recommend you create Value Stream Maps for your most critical processes first, then move to other processes as needed. This video shows you the power that a Value Stream delivers. As a result, the Toyota Production System uses Value Streams to create Profound Knowledge and Operational Excellence of their Processes:
Use the tools of The Toyota Production System for System Improvement and Performance Excellence. For instance, Toyota enlists everyone in their company to reach for System Perfection. They get better performance year after year. Shouldn’t your system accelerate to greatness year after year?
The Toyota Production System is a System – Improve Your System.
Your System is comprised of Value Streams. The Toyota Production System is Toyota’s System. The Toyota Production System comprises every other system needed to make an automobile. That includes Toyota, customers, and suppliers. By including all these elements into their system it has created the greatest system in the world.
Toyota’s system will deliver System Improvement by integrating seamlessly with its suppliers. Toyota will even send its own employees to its suppliers in order to improve the integration. They use their relationship to minimize the cost of inventory. That is a benefit both for Toyota and for the suppliers.
Toyota’s integration with their customers is something they only do in Japan.