Toyota Motor Sales, USA
North American Parts Center,
California
(NAPCC)
The Ken Blanchard Companies®
2006 Client Conference
October 4, 2006 – New York
By: Dana Nagengast and Vanessa Celano
North American Parts Organization
(NAPO)
Purpose of NAPO:
„ Distribute parts and accessories to Toyota
and Lexus dealers
„ Manage service parts and accessories supply
chain for all units sold in North America
„ Contribute to company profitability by
reducing costs while maintaining worldclass service
„ Be a Global Pole and support North American
distributors and Toyota global partners in
service parts supply chain management
North American Distribution Network
More than 500 North
American Suppliers
Vancouver
65 Logistics Partners
Portland
Toronto
Chicago
Boston
Kansas City
San Francisco
Cincinnati
Baltimore
NAPCK
NAPCC
New York
Dallas
Los Angeles
TMME
TMC
SET
GST
Hawaii
Guam
American Samoa
Saipan
Mexico City (FY07)
Jacksonville
Brazil
Puerto Rico
Central America
Part Center
PDC
Private Distributor
Parts Flow Overview
Toyota
Japan
Suppliers
Daily
Order
Daily Order
Toyota
Plants
N.A.
Suppliers
Daily
Order
Daily
Order
U.S.
Toyota &
Lexus
Dealers
NAPCC
NAPCC
&
&
Monthly
Order
U.S.
U.S. Parts
Parts
Distribution
Distribution
Centers
Centers
N.A.
N.A. Distributors
Distributors
NAPCK
NAPCK
GM
GM
TMC
TMC
NUMMI
TMME
TMME
TAI/Central
TAI/Central
America
America
North American Parts Center,
California (NAPCC) Statistics
„
Launched: October 1996
„
Building footprint: 705K ft²
„
Part numbers stocked: Over 150,000
„
Pieces received: Avg. 237,000/day
„
Pieces shipped: Avg. 215,000/day
„
Headcount: 458 non-union warehouse
associates and 44 salaried associates
NAPCC Building Layout
1,020 ft (311 m)
720 ft
Home
Position
Moulding,
Radiators,
Carpets
Doors, Hoods ,
Qtr. Panels
(219 m)
A
D
B
C
Engines,
Transmissions,
Mufflers
Bumper
Covers
Office
Shock
Absorbers,
Wheels,
Fan
Shrouds
VOR
Shipping
Dock
Light Metal,
Medium Parts
Medium
Size Parts
L
F+H
J
E+G
Brake Pads,
Clutch Discs
Hybrid/XDock
Mezzanine
Small Parts,
Small Bin
Parts
Receiving
Dock
Small Parts
K
Hazmat & High
Value Parts
The Toyota Way – Our Foundation
„
Continuous
Improvement
– Challenge
– Kaizen
– Genchi Genbutsu
„
Respect for People
– Respect
– Teamwork
The Challenge – Our Business Goal
„
Business Goal:
– Implement a team-based organization.
„
Rationale:
– Re-establish trust among workforce
– Provide progression for associates to
achieve higher levels of responsibility
– Create ownership and higher individual
accountability
Our Business Goal - Background
„
„
„
The team culture envisioned during building
launch was never realized
– Loss of trust, accountability, ownership, and
leadership credibility
Various levels of success in implementing teams
at NAPCC
– Great success with Kaizen teams but absence
of functionally aligned work teams
Associate Opinion Survey results indicated a
need for action in the categories of:
– Supervision, training, and career development
„
„
„
„
Traditional supervisory structure
Work groups not functionally
aligned
Leadership to associate ratio was
1:26
Low level of accountability and
ownership
Limited career progression
opportunities for associates
HOURLY
„
SALARIED
NAPCC Current Situation (1999-2000)
GL
AGL
Work
Groups
„
„
„
„
Implemented a team based
organizational structure and added
a Warehouse Team Leader position
Functionally aligned teams in each
home position
Reduced leadership to associate
ratio to 1:8
Created opportunity for higher level
of accountability and ownership
Created additional career
progression opportunities for
associates
GL
TL
HOURLY
„
SALARIED
NAPCC Organizational Change (2000)
GL
TL
TL
Team Team Team
The Challenge - Our Business Need
„
„
Business Need:
– Leadership development & training to
support implementation of a team-based
culture
Rationale:
– To build leadership skills
– Provide practical tools to institutionalize
leadership behaviors
– Provide a common language about
leadership
The Solution -Blanchard’s SLII® Product
„
„
In 2003, The Ken Blanchard organization was
selected to support our leadership training needs
Situational Leadership® II and the Leadership
Assessment Profile tools were selected
– Identified 7 other Toyota business units were
utilizing Ken Blanchard products
– SLII® fit our culture regarding respect for
people
– SLII® and other Ken Blanchard products
provided long-term self-sustaining options
– LAP provided measurement and individual
feedback
Key Roles for the Solution
„
„
„
Driver
– Facility Manager
Support
– Human Resource Manager
Implementers
– Organizational Development Department
Implementation Process
„
„
„
Attended a SLII® train-the-trainer
Held kickoff with 2-day on-site training with
44 Warehouse Operations Management staff
– Conducted Leadership Assessment Profile
and Impact Map with all participants with
direct reports
Provided 2-day on-site training with 65
Warehouse Team Leaders.
– Conducted Leadership Assessment Profile
with all Team Leaders and provided a 30minute one-on-one coaching session
Implementation Process Continued
„
„
„
Provided four one-hour SLII® reinforcement
sessions with all 109 participants to support
classroom training
– Conducted over 1800 hours of training
Launched SLII® eScenarios to provide an
additional voluntary reinforcement tool
Integrated SLII® into all new hire orientation
programs to establish a common leadership
language throughout the organization
Implementation Process Timeline
SLII®
Train-the-Trainer
Management
Kickoff
2/03
Integration
with Orientations
6/04
5/03
Implementation = 4 months
Management
LAP
5/03
Reinforcement = 10 months
Team Leader
Implementation
Launched
SLII® eScenarios
11/03 – 5/04
Reinforcement
Sessions (4)
9/03 – 3/04
7/03 – 8/03
Reinforcement Sessions
„
Session 1:
„
– Focus on Teaching
Others tool
– Learning Partner
discussions
„
Session 2:
– SLII® Case Study
activity
– Internal Best Practice
presentation
Session 3:
– Experiential activity to
review 7 Directive and
7 Supportive behaviors
– Internal Best Practice
presentation
„
Session 4:
– Team Simulation that
required a leader to
employ the three skills
of a Situational Leader
Reinforcement Sessions Ideas
„
„
„
„
„
„
Leadership Bingo
Learning Partner
Discussions
Teaching Others
Skill Practice
SLII® and
Hollywood Classic
Movies
Assumptions about
People
Home Position Best
Practices
„
„
„
„
„
„
Case Study
Leadership Point of
View
Significant Leader
Activity
Icebreakers
Roller Coaster
Simulation
Group Discussions
SLII® eScenarios
„
„
Provided monthly electronic case study activity to all
SLII® participants
– Concept built upon the Situational Leadership® II
Game from the two-day program
Objective was to continue to build knowledge and
skills in Situational Leadership® II concepts
– Participants motivated to initiate dialogue around
SLII® concepts
– Provided continuous learning environment
Additional Blanchard Solutions Utilized
„
Team Chartering
– Utilized with our Communication, Safety,
Quality, and Ops Leader teams to develop
common working approaches, ground rules,
and decision-making methods
– First Responder Team Example - Improved the
following team processes:
– Radio utilization
– New member training
– BED training
– Spill response staffing
– Support at home position level
Additional Blanchard Solutions Utilized
„
Gung Ho!® Pilot
– Supports internal HEART cultural initiative:
„ Associate-driven
initiative to help us accomplish
our goals, while having fun working together
„ Brings associates together as one building
„ Breaks down barriers and enhances teamwork
– Pilot conducted with our Operation Managers
„ Determined
no need to implement it as a
separate program
„ HEART initiative and Toyota Way aligned best
with our culture
Additional Blanchard Solutions Utilized
„
Situational Self Leadership
– Evaluated to help us integrate the language
of SLII® throughout the organization
– Launched overview with 100 leaders in 2006
focused on Assumed Constraints, Magic
Trick, and Game Plan resources.
– Provides an additional tool for ongoing
sustainment and continuous learning
Additional Development Solutions
„
„
„
„
„
„
„
„
„
Gallup Strengths Finder & Q12
Myers-Briggs Type and Temperament
FISH® Philosophy
Who Moved My Cheese? by Spencer Johnson
High Five! by Ken Blanchard & Sheldon Bowles
DISC
Teambuilding Activities
Video/Book Library
On-line University of Toyota support
The Result of Our Business Goal
„
Improved leadership ratio from 1:16 to 1:6
„
Increased operational throughput by 10%
„
Reduced OSHA incidents by over 50%
„
Established 53 new Team Leader positions
„
38 Associates promoted within 6-year period
The Result of Our Business Solution
„
87% of participants evaluated the session
as Exceptional
– Material was relevant, useful, and applicable
– Classroom interaction and variety of learning
tools were most helpful
„
Participants suggested the following for
future activities:
– More videos
– Focus on real world application and scenarios
The Result of Our Business Solution
Associate Opinion Survey Results:
2005
2003
2001
1999
50
Management/Supervisory Practices:
„ The person I report to is available
when needed
61
47
30
0
Career Development & Training:
„ In my opinion, associates new to my
department receive adequate training
for their jobs
50
100
48
61
48
N/A
0
Career Development & Training:
„ There are sufficient opportunities for
me to receive cross training to learn
other jobs
50
100
45
61
39
N/A
0
50
100
Lessons Learned
„
„
„
Senior level management support is critical.
Provide leadership development to all
associates in the organization, not just
those in leadership positions.
Ensure resources are dedicated to support
ongoing sustainment of training initiatives.