The Role of Leadership in
Productivity and Innovation
BILL OLIVER
T O Y O TA M O T O R M A N U F A C T U R I N G C A N A D A
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
Toyota Motor Manufacturing Canada
Profile
Established
Locations
Cambridge, Ontario
Woodstock, Ontario
Land Area
1,618,730 m2 (400 acres)
4,046,856 m2 (1000 acres)
Plant Area
280,000 m2 (70 acres)
165,921 m2 (41 acres)
Investment
Team Members
4
January 24, 1986
$6 billion (CAD)
>8,000
Toyota Motor Manufacturing Canada
23/10/2014
Family
Lexus
RX 350
5
Lexus
RX 450h
Toyota
RAV4
23/10/2014
Toyota Motor Manufacturing Canada
Toyota
Corolla
Profile
2011
2012
2013
Corolla
204,276
235,733
195,900
Matrix
17,280
18,426
11,670
Lexus RX 350
65,242
86,696
86,236
126,030
177,815
210,576
-
545
953
412,828
519,215
505,335
Production Models & Units
RAV4
RAV4 EV
Total
Takt Time
 Corolla/Matrix:
 RX 350/RX 450h:
 RAV4/RAV4 EV:
55 seconds
120 seconds
59 seconds
Toyota Motor Manufacturing Canada
Production and Innovation
600,000
Production History
Corolla
Solara
Matrix
RX
RAV4
RAV4 EV
500,000
400,000
300,000
200,000
100,000
Toyota Motor Manufacturing Canada
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
0
Introduction
Bill Oliver
Education
• Bachelor of Arts – Wilfrid Laurier University (1983)
• Master of Business Administration – Athabasca
University (2013)
Work History
• Toyota Motor Manufacturing Canada
• 26 years
• Production Team Leader ~ Assistant General Manager
Toyota Motor Manufacturing Canada
TMMC Organization
Manager
Assistant
Manager
x 2~4
Group
Leader
x 2~4
Team Leader
x5
Team
Member
Team
Member
Team
Member
Team
Member
Toyota Motor Manufacturing Canada
Team
Member
Career History
1988
1990
Team
Leader
1988 TMMC
Launched
Group
Leader
2000
Assistant Manager
1998 North
Plant Launch
2010
Manager
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
Toyota Motor Manufacturing Canada
2014
Assistant General
Manager
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
Toyota Motor Manufacturing Canada
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
Toyota Motor Manufacturing Canada
Leadership Construct
 Leadership is a process not a position.
Leadership
 Involves 3 factors:
1.
The actions of the leader
2.
The response of the followers
3.
The situation facing the organization
 Leadership occurs at the
intersection of these three.
Wright, 2012
Toyota Motor Manufacturing Canada
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.
Situation
Followers
Wright, 2012
Toyota Motor Manufacturing Canada
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.
Toyota Motor Manufacturing Canada
Application Example
NAME:
Alexander van Ballegooie
DEPARTMENT: CPO
LEAD:
Donna Hopcraft
Student
Student Background
Education:
TBP STEP 3. Set Target
Lead
CPO GM
TBP STEP 4. Root Cause Analysis
3B Environment and Business Hon. Co-op, University of Waterloo
Expected graduation date April 2014
12221 Boxes in storage
Work Experience:
Fall 2011
Winter 2011
Statistics Canada - GIS Mapping Unit Technician
Target Directories - Account Executive
Retention policy proceedures set up in 1988
using offsite storage facilities
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
Week
7
Stored off-site until destruction
Actual
May
Diversity & Inclusion (D&I) Project
14
21
June
28
4
11
18
July
25
2
9
16
23
Status
August
30
6
13
20
Paper stored in a
cardboard box and
shipped
27
Checksheet Record Retention Project
Other D&I Projects
O
Create, Launch, and Promote TMMC D&I website
O
Coordinate lunchtime webinars
Manage CPO's D&I plan and scorecard
Hoshin Directives 100% Scorecards Shops + Dept.
O
O
Go paperless with handheld scanners
TMMC to become a nationally recognized
benchmark for Diversity & Inclusion
TMMC environmental sustainability paperless environment
An effective electronic storage medium for
TMMC
A) Ideal
Situation
No plan in place to move away from
paper to electronic record storage (old
technology plan)
Root Cause
TBP STEP 5. Develop Countermeasures
Potential Countermeasures
A) Ultimate
Goal
Record storage in an
on-site electronic
system by the end of
CY 12
O
TBP STEP 1. Clarify the Problem
TM awareness of TMMC D&I initiatives with
visual recognition of TMMC's committment
B) Ultimate
Goal
B) Ideal
Situation
Cost Time Quality
D&I
X
X
O
X
Eval Rationale
X
Limited scope of control; longer term solution; cost
prohibitive
Countermeasure
Exponentially increasing costs, environmental
Continue current way
X
O
O
X
∆ impacts
Checksheet scanning / electronic file
storage project with CPO help
O
O
O
X
∆ Large cost savings with on-site cardboard box reuse
Checksheet scanning / electronic file
storage project with WDDS help
O
O
O
O
O
Scan PC checksheets to an on-site electronic storage
system with the help of WDDS (Woodstock District and
Developmental Services) employees
Perks of countermeasure above plus visible D&I
benefits
TBP STEP 6. Implement Countermeasures
W DDS PC CHECKSHEET MASTER SCHEDULE
August
GAP
Item
1
An offsite paper-based storage system with high
costs and high envrionmental impacts
A) Current
Situation
 Team Leader Development
Some TMs unaware and not engaged with
TMMC's D&I activities and policies
2
B) Current
Situation
TBP STEP 2. Break Down the Problem
Current condition
Activity
Rep
Status
Alex, Donna, Brian,
Mark, Jeff
Scanner and computer set up in West
Software operational
Brian
Trials with CPO/PC
4
Transfreight start new shipment patterns (Woodstock and Cambridge) Alex, Mark
5
WDDS trial run
20
September
27
3
10
Finance
838
boxes
HR
889
boxes
MFG
237
boxes
Form to verify shipment process and
content delivery ("Checksheet") signed
by driver and supplier
PC
QC
5038
boxes
2423
boxes
Purch
385
boxes
Various
682
boxes
Checksheets packed into cardboard
boxes by Transfreight
Packaged and shipped to Cambridge
Cross Dock for audit and processing by
CPO
2010
217
boxes
Shipped off site to Iron Mountain where
they record the arrival and destruction
date
1
8
15
22
29
Ó
Ó
Step 8. Standardization and Yokoten
Expected Results
•
1,600 cardboard boxes per year
not used
• 250KG C02 diverted (from transportation)
/ year
• Local community employment of people
with developmental disabilities
•
•
Team Members can see TMMC's
comittment to D&I on the
administration floor in West plant with
WDDS staff
•
7 year cost savings of more than
$60,000
•
Quicker retrieval of documents
Provides WDDS with
employment
2011
1606
boxes
October
24
Ó
TBP STEP 7. Results and Process Evaluation with TBP
12221 Boxes
17
Ó
Cleo, Donna, Brian
Cleo, Donna, Brian,
Mark, Jeff
6 Go live
13
Ô
Alex, Donna, Brian,
Mark, Jeff
3
6
Ó
Evaluation: Obvious positive environmental, economic and social benefits from this process.
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
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
PROGRESS
A) Paper (12221 Boxes) vs. Electronic file storage
B) TMs not fully aware of D&I initiatives
GAP
Paper
storage
Paperless
Online process
onsite
PC
storage
storage for all
standard Depts.
TIME
Analysis of Personal Objectives
98% of Total 2011
boxes (Prioritized
Problem)
Point of
Occurance
Currently stored indefinitely until legal
ban is lifted. Then 7 year storage
standard
Eval.
1 Diversity promotes innovation and insight for new progressive ideas and standards, differentiating TMMC from other less diverse companies
O
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)
O
O
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
 Situation – many Team Leaders new in position
- 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
Toyota Motor Manufacturing Canada
“Takes core values to
heart…that’s what
makes this place run.”
TMMC Team Leader
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
Over 6000+ Kaizens in
2013
the Tokyo Subway system
 TMMC engineers have filed 83 invention
disclosures with 18 patents issued 2008~2014
 Examples include quality confirmation, energy
recovery, equipment battery charging
Toyota Motor Manufacturing Canada
“Kaizen Corner” – team
member improvements
displayed for recognition
of accomplishments
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.
Toyota Motor Manufacturing Canada
Application Example
 External
 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
Toyota Motor Manufacturing Canada
Application Example
 Internal
 Situation – pockets of unused space in the plant
Observed at
the work
site
 Action – identified possibilities to consolidate
- created concept – big space into small space
Waste reduction
- 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
Toyota Motor Manufacturing Canada
Involved the
organization
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.
Toyota Motor Manufacturing Canada
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!
Toyota Motor Manufacturing Canada
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
Toyota Motor Manufacturing Canada
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
Toyota Motor Manufacturing Canada
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”)
Toyota Motor Manufacturing Canada
That’s nice Bill, but…
 My experience in 26 years
Before we can engage followers we must engage
management.
1.
 Create alignment of goals
Simple is best
2.
 To tell the story simply you must truly understand it.
See the inefficiency in the process.
3.
 Control process start time
Get to the work site.
4.

It’s invigorating!
Toyota Motor Manufacturing Canada
Final Thoughts…
 Canadian Competitive Advantage
 Skilled labour force
Leadership is key
to maintaining
competitive
advantage and
taking advantage
of emerging
trends.
 Proximity to market
 Health care
 Education
 Banking
 On-shoring trend
 Supply chain risks
 We can take action to close the
productivity gap.
Toyota Motor Manufacturing Canada
Thank You
BILL OLIVER
A S S I S TA N T G E N E R A L M A N A G E R
T O Y O TA M O T O R M A N U FA C T U R I N G C A N A D A