Page 39 - How To Implement Lean Manufacturing

20 Cha pte r T w o

At this time, as early as 1955, the primary, if not
sole, concern of all customers was the laid-in cost of
“Then after the oil crisis we
an item, and yet Toyota was busy teaching their sup-
started teaching outside firms pliers the TPS and techniques such as kanban. Today,
how to produce goods using it is commonplace for a supplier to seek advice and
the kanban system. Prior to support from their customers. Prior to 1974, this was
that, the Toyota Group guided revolutionary. Nonetheless, it had the effect of better
cooperating firms … in the connecting suppliers to Toyota, which is integration.
”
Toyota system. Many companies have tried to mimic this concept
T. Ohno of integrating suppliers. What most do is talk about a
cooperative long-term relationship based on trust
and mutual support. However, in the end, they just
hammer the supplier to produce a lower-cost product without working with them on how
to produce it less expensively. A few minutes after the discussion of trust and long-term
relationships is finished, the topic of costs comes up. Altogether too often this is a discus-
sion that ends with the open or veiled threat of “if you can’t cut the costs, we’ll be forced
to find someone else who can.” So much for mutual trust and that long-term relationship.
Also, having worked with many customers and suppliers alike, one thing I find very
common is the case where customers will demand things from their suppliers that they
themselves are not capable of doing. Just because they are not competent does not mean
they cannot be demanding. This is not so with Toyota. Ohno refers to this as the “My
plant first principle.” Without exception, I have found that for any production technique
they demand, they are also capable of assisting the supplier if not outright teaching
them. I find this interesting that customers will require skills and standards from their
suppliers, which they themselves do not have. I have often wondered how they can then
evaluate if their suppliers are complying, much less be able to assist them.
Toyota has an integrated production system for many reasons, but at its deepest
core are these concepts.
• They fully understand what the customer wants: value.
• They know how to provide value, using a system-optimizing production
system, and forgoing local optima.
• They have readily available information that tells them how the system is
producing.
• They are willing and able to respond to the system if it is not optimized.

A Philosophy of Continuous Improvement
Fourth among the differences is the reality that things can always be done better, faster,
cheaper, and with less waste. In addition, Toyota has shown a great awareness of the
world of manufacturing with their ability to be introspective and questioning. They clearly
understand the concept of continuous improvement and recognize that their system is
never fully optimized. If the TPS is to improve, it must change, it must evolve.
At the foundation of continuous improvement is the education process. Not only
are workers and supervisors trained, but suppliers are also able to receive excellent
training. They recognize that the minute you stop trying to learn is the minute you stop
improving.