The Role of Leadership in Productivity and Innovation BILL OLIVER TOYOTA MOTOR MANUFACTURING CANADA

Transcription

1 The Role of Leadership in Productivity and Innovation BILL OLIVER TOYOTA MOTOR MANUFACTURING CANADA

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3 Overview TMMC's goal is to maintain a balance of satisfaction between each of the four stakeholders Community Customers/Suppliers Shareholders Team Members Business (Hoshin) Planning at TMMC is based upon this model

4 Profile Established January 24, 1986 Locations Cambridge, Ontario Woodstock, Ontario Land Area 1,618,730 m 2 (400 acres) 4,046,856 m 2 (1000 acres) Plant Area 280,000 m 2 (70 acres) 165,921 m 2 (41 acres) Investment $6 billion (CAD) Team Members >8, /10/2014

5 Family Lexus RX 350 Lexus RX 450h Toyota RAV4 Toyota Corolla 5 23/10/2014

6 Profile Production Models & Units Corolla 204, , ,900 Matrix 17,280 18,426 11,670 Lexus RX ,242 86,696 86,236 RAV4 126, , ,576 RAV4 EV Total 412, , ,335 Takt Time Corolla/Matrix: RX 350/RX 450h: RAV4/RAV4 EV: 55 seconds 120 seconds 59 seconds

7 Production and Innovation 600,000 Production History Corolla Solara Matrix RX RAV4 RAV4 EV 500, , , , ,

8 Introduction Bill Oliver Education Bachelor of Arts Wilfrid Laurier University (1983) Master of Business Administration Athabasca University (2013) Work History 26 years Production Team Leader ~ Assistant General Manager

9 TMMC Organization Manager Assistant Manager x 2~4 Group Leader x 2~4 Team Leader x 5 Team Member Team Member Team Member Team Member Team Member

10 Career History Team Leader Group Leader Assistant Manager Manager Assistant General Manager 1988 TMMC Launched 1998 North Plant Launch 2008 Woodstock Plant Opens Current Responsibility Woodstock Plant RAV4 Assembly Production, Internal Logistics, Engineering, Maintenance Organization >1000 members Assembly of approximately 1000 vehicles per day

11 Benchmarking/Projects Toyota Engineering and Manufacturing of America GAC Toyota Motor Co. Guangzhou China TMM Kentucky TMM Indiana TMC Japan TMM Mississippi TMM Texas Toyota Motor Thailand Have studied assembly plants, parts suppliers and logistics providers

12 Background Many people confuse the concept of productivity with that of work intensity. Improving productivity is not about working longer or harder; it s about working smarter. The onus of improving productivity lies not just with governments, but with individual firms and their management. The Conference Board of Canada, 2014

13 Leadership Construct Leadership is a process not a position. Involves 3 factors: 1. The actions of the leader Leadership 2. The response of the followers 3. The situation facing the organization Leadership occurs at the intersection of these three. Wright, 2012

14 Productivity Leadership Leader Recognize and assess the problem -external/internal -define metrics -understand deeply -communicate effectively -enable the organization Followers must be: -informed -motivated -committed to improvement Varies based on external/internal factors. Will overcome an organization or sector if not acted upon. Followers Situation Wright, 2012

15 Leaders and Followers We need leaders, not cheerleaders. P. Rodi, TMMC The best fertilizer for your orchard is your own footprint T. Agata, TMC It is not enough to simply encourage followers. Leaders must add value by developing followers. Followers must be empowered to impact the outcome.

16 NAME: Alexander van Ballegooie DEPARTMENT: CPO LEAD: Donna Hopcraft Student Background TBP STEP 3. Set Target TBP STEP 4. Root Cause Analysis Education: 3B Environment and Business Hon. Co-op, University of Waterloo Expected graduation date April 2014 Work Experience: Fall 2011 Statistics Canada - GIS Mapping Unit Technician Winter 2011 Target Directories - Account Executive Personal Objectives 1 Increase knowledge about the importance of Diversity and Inclusion in the workplace 2 Hands on project management development and improvement 3 Improve problem solving skills through the TBP method Schedule of Projects Planned Actual May June July August Diversity & Inclusion (D&I) Project Week Checksheet Record Retention Project Other D&I Projects Create, Launch, and Promote TMMC D&I website Coordinate lunchtime webinars Manage CPO's D&I plan and scorecard Hoshin Directives 100% Scorecards Shops + Dept. TBP STEP 1. Clarify the Problem A) Ultimate Goal A) Ideal Situation A) Paper (12221 Boxes) vs. Electronic file storage GAP B) TMs not fully aware of D&I initiatives GAP A) Current An offsite paper-based storage system with high Some TMs unaware and not engaged with B) Current Situation costs and high envrionmental impacts TMMC's D&I activities and policies Situation TBP STEP 2. Break Down the Problem Current condition Finance 838 boxes HR 889 boxes boxes TMMC environmental sustainability - paperless environment An effective electronic storage medium for TMMC MFG 237 boxes boxes Boxes PC 5038 boxes QC 2423 boxes 98% of Total 2011 boxes (Prioritized Problem) Purch 385 boxes TMMC to become a nationally recognized benchmark for Diversity & Inclusion TM awareness of TMMC D&I initiatives with visual recognition of TMMC's committment Various 682 boxes Point of Occurance Form to verify shipment process and content delivery ("Checksheet") signed by driver and supplier Checksheets packed into cardboard boxes by Transfreight Packaged and shipped to Cambridge Cross Dock for audit and processing by CPO Shipped off site to Iron Mountain where they record the arrival and destruction date Currently stored indefinitely until legal ban is lifted. Then 7 year storage standard B) Ultimate Goal B) Ideal Situation Status O O O O O Paper stored in a cardboard box and shipped TBP STEP 5. Develop Countermeasures Potential Countermeasures Cost Time Quality D&I Eval Rationale Limited scope of control; longer term solution; cost Go paperless with handheld scanners X X O X X prohibitive Exponentially increasing costs, environmental Continue current way X O O X impacts Checksheet scanning / electronic file O O O X Large cost savings with on-site cardboard box reuse storage project with CPO help Checksheet scanning / electronic file Perks of countermeasure above plus visible D&I O O O O O storage project with WDDS help benefits TBP STEP 6. Implement Countermeasures WDDS PC CHECKSHEET MASTER SCHEDULE Cleo, Donna, Brian, Go live 6 Mark, Jeff Ó TBP STEP 7. Results and Process Evaluation with TBP Expected Results 1,600 cardboard boxes per year Team Members can see TMMC's not used comittment to D&I on the 250KG C02 diverted (from transportation) administration floor in West plant with / year WDDS staff Local community employment of people with developmental disabilities Record storage in an on-site electronic system by the end of CY Boxes in storage 7 year cost savings of more than Provides WDDS with $60,000 employment Quicker retrieval of documents Student Retention policy proceedures set up in 1988 using offsite storage facilities Root Cause Stored off-site until destruction Lead No plan in place to move away from paper to electronic record storage (old technology plan) Countermeasure CPO GM Scan PC checksheets to an on-site electronic storage system with the help of WDDS (Woodstock District and Developmental Services) employees Item Activity Rep Status Alex, Donna, Brian, Scanner and computer set up in West 1 Mark, Jeff Ó 2 Software operational Brian Ô Alex, Donna, Brian, Trials with CPO/PC 3 Mark, Jeff Ó Transfreight start new shipment patterns (Woodstock and Cambridge) Alex, Mark Ó 4 WDDS trial run Cleo, Donna, Brian 5 Ó Step 8. Standardization and Yokoten Yokoten Make scanning system a standard for departments that have document input and output for improved storage at a low Make scanning system cost a standard for all PC storage storage for all standard Evaluation: Obvious positive environmental, economic and social benefits from this process. Paper Depts. storage Increases awareness of mentally and physically handicapped people in the workplace and advances Toyota's ultimate goal to become a nationally recognized benchmark for D&I TIME Analysis of Personal Objectives 1 Diversity promotes innovation and insight for new progressive ideas and standards, differentiating TMMC from other less diverse companies 2 Checksheet scanning project provided me with the essential skills, including time management and team/meeting coordination, for a more managerial position in the future 3 TBP problem solving method that gave me a greater understanding of the scope and different counter-measures of a problem (e.g. wider scope) Reflections / Recommendation for Co-op Program 1 This project gave me a greater feeling of ownership and responsibility for my accomplishments during the co-op program and really challenged my abilities to manage and focus on multiple projects 2 Working with D&I initiatives at TMMC provides an unparalleled education about the workplace that most co-op job placements do not provide August September October Online onsite Paperless process Eval. O O O Application Example Team Leader Development Situation many Team Leaders new in position PROGRESS - similar to impending Baby Boom retirement bubble Action utilize Toyota Business Practice format for problem solving - training conducted by shop Manager and Assistant Manager -weekly review of progress - Team Leaders report activities to Senior Management Result Skill level improvement through training 65% Reduction in line downtime at targeted process Takes core values to heart that s what makes this place run. TMMC Team Leader

17 Application Example Engagement Encourages Innovation 1. Continuous improvement Incremental change (1x1000 > 1000x1) 2. Intelligent Process Management Advances in process and equipment design and new applications Plant traffic control based in part on the Tokyo Subway system Over Kaizens in 2013 TMMC engineers have filed 83 invention disclosures with 18 patents issued 2008~2014 Examples include quality confirmation, energy recovery, equipment battery charging Kaizen Corner team member improvements displayed for recognition of accomplishments

18 Leaders and Situations Don t look with your eyes, look with your feet People who only look at numbers are the worst of all. N. Hayashi TMC, Nikkei Business Online, 2008 Grasp the actual condition both externally and internally: Benchmark Go to the workplace daily. Leaders cannot go it alone, exclusive focus on the situation ignores followers and therefore the work place.

19 External Application Example Situation Implement new process for parts presentation Action confirmed best practice at multiple Toyota plants - Adapted best practices as follows: Japan process level, new technology, work combination Thailand small motion kaizen Kentucky equipment maintenance Indiana alternate materials for weight reduction Texas impact of physical environment Result Established North American benchmark system for accuracy, process design, efficiency - capable of handling 6.5 million parts per week - traffic control system now being shared back to Japan

20 Application Example Internal Situation pockets of unused space in the plant Action identified possibilities to consolidate - created concept big space into small space Waste reduction Observed at the work site Involved the organization - order of change small change to big change Continuous improvement small, incremental changes Result 1300m2 of continuous space generated (re-deployed for RAV4 EV logistics) -reduced travel = reduced processing

21 Followers & Situations Followers need leadership support to impact the situation Trust the ability of followers The work force today is intelligent and informed. Think social media! They know more about the situation than they are sometimes given credit for.

22 Application Example Kaizen Circle Situation Team attempting to improve headliner tape application Action formed Kaizen Circle (But problem required additional support) - shop Manager provided regular process reviews -coordinated support of technical resources - assisted with problem solving process Result saved $2.10 per vehicle! $485,000 per year 3x height of Mt. Everest in tape Bonus team represented TMMC at global kaizen circle exhibition in Toyota City, Japan!

23 Leadership Construct Effective Leadership The intersection of the leader, followers and the situation is the only viable position. Role of the leader in productivity management is to: 1. Define the direction 2. Empower the organization 3. Monitor the situation and eliminate road blocks

24 Additional Examples Engage followers Utilize all levels of management Individually consider each follower Inform organization of current condition Recognize accomplishments Embrace diversity Volunteers in the Community Make abnormalities visible Design processes to show inefficiency Control flow of information

25 Additional Examples Manage inputs as well as outputs Man hours per unit (TMMC) 1. Resource management to standard (input) 2. Volume achievement to plan (output) Measurement Simple visualization in the workplace 1. Establish a target/standard 2. Use manual records where appropriate 3. Completed by those closest to the operation 4. Daily review by Management (avoid the trap - It s so important that I will never ask to see it again )

26 That s nice Bill, but My experience in 26 years 1. Before we can engage followers we must engage management. Create alignment of goals 2. Simple is best To tell the story simply you must truly understand it. 3. See the inefficiency in the process. Control process start time 4. Get to the work site. It s invigorating!

27 Final Thoughts Canadian Competitive Advantage Skilled labour force Proximity to market Health care Education Banking On-shoring trend Supply chain risks We can take action to close the productivity gap. Leadership is key to maintaining competitive advantage and taking advantage of emerging trends.

28 Thank You BILL OLIVER ASSISTANT GENERAL MANAGER TOYOTA MOTOR MANUFACTURING CANADA