Improving Your System 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,
- Just-in-Time (JIT) minimizes excess inventory, reduces lead times, and improves efficiency.
- Continuous Improvement (Kaizen) propagates you into the future at a rate of 11 ideas per year per employee all in a management-controlled direction and creates a winning culture,
- Respect for People recognizes that employees are the foundation of success. Toyota empowers its workforce and promotes collaboration and teamwork,
- Standardization establishes consistent processes and practices by documenting and promoting best practices. Helps identify areas of deviations and potential improvements,
- Built-in Quality incorporates defect prevention, defect removal, and error proofing thereby improving customer satisfaction and brand reputation,
- Pull System response to customer demand, generates responsive production, reduces waste, and aligns supply chain demand,
- Profound Knowledge of every processes performance through the use of Value Streams,
- Visual Management leads to transparency, visual tools, performance visibility, problem visualization, and real-time monitoring.
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 in their Processes:
In Conclusion
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 its customers is something they only do in Japan.
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