Page 225 - The Toyota Way Fieldbook

Chapter 9. Make Technology Fit 201

◆ Will the technology contribute to a flexible system that can economically
adjust to ups and downs in demand?
◆ Will the technology support people doing the work in continuous improve-
ment of the process?
◆ Have people in the system challenged themselves to accomplish the goal
with the most flexible and least complex technology?
◆ Are people using the technology as a crutch to avoid having to think
deeply about improving the process?

The cross-dock case study below illustrates two contrasting belief systems
with two contrasting results. Toyota took a process-oriented view in developing
a standardized cross-docking system following Toyota Production System
(TPS) principles that seamlessly integrated its suppliers and assembly plant.
Technology clearly took a backseat in the Toyota case. A major U.S. automaker
took a technology-oriented view placing IT systems at the center, hoping the IT
systems would somehow integrate a diverse range of logistics providers who
were selected based on low cost bids. The result, predictably, was superior per-
formance of the Toyota logistics system.

Case Study: Technology Beliefs and Cross-Docks
Toyota made a serious investment in time and money to develop a
lean cross-dock system in North America by establishing a joint ven-
ture: Transfreight. Toyota did not have any direct ownership stake but
did involve its trading company partner, Mitsui, in a joint venture
with TNT Logistics (later Mitsui bought out TNT). A cross-dock is
simply like a juncture box. In this case, truckloads of parts come in
at least daily from a variety of different suppliers spread around
the country. The pallets of parts cross through the dock and are
reloaded in mixed loads of just enough parts for one to two hours
of use in the assembly plant. Shipments are going out to the assembly
plant 12 times per day. It would be a waste of lots of truck space to
have trucks picking up parts from all over the country 12 times per
day and going directly to the assembly plant—the trucks would be
mostly empty most of the time.
The Toyota belief was that the cross-dock was an extension of the
assembly plant—a lean value chain from the supplier right to the
person assembling parts to the vehicle. It was a complex process with
many opportunities for error, with thousands of parts moving about
each day. And each step in the process was based on tight time
windows, with any delays cascading through the system. To get it
right required a creative application of TPS. It needed to be a flow-
through process with minimal waste. It needed to be a visual process so