The 14 Principles of the Toyota Way adapted to the Engineering Design Process for EPC Subtitle:

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The 14 Principles of the Toyota Way adapted to
the Engineering Design Process for EPCSubtitle
An Tribute to Anchor Bolts

• The Toyota Way can become a new way of thinking
  about creating continuous improvements within an
  organization.
• Quality, in principle and practice, is improved
  as a function of process improvements. people and
  root problem solving. (The 4 Ps)
• The Toyota Way has been called a system
  (process) designed to provide the tools for
  people to continually improve their work.
• Build Consensus (team-building) in Developing
  Solutions.
• Implement Rapidly
• Toyota Way is based upon people improving
  their ability to contribute to success.
• Based upon observation of the sources of problems
  true problem solving.
• Find the root sources of problems.
• Go to the source and discover.
• This presentation is adapted from The Toyota Way
  by Jeffery Liker, with examples primarily in the
  domain of structural engineering and design
  drawings
• Reflection Thinking about anchor bolts is used
  to show how a common, everyday E-P-C item can be
  used to contribute to a project improvement
  process. Toyota Production System (TPS) is
  sometimes theThinking Production System.

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About the Presenter

• Thomas W. Hartmann, P.E.
• takes a poor picture
• Contact twhartmann_at_gmail.com cell phone
  [phone]
• Engineer Registrations
• Colorado
• Nebraska (Structural)
• New Mexico
• Wyoming
• Arizona
• Montana
• Has Entrepreneurial Philosophy
• Which Requires a sense of humor (people)
• Which Demands a creative outlet (process)
• Which Suggests innovative ways of
• looking at the world (problem-solving)
• Student of Lean a.k.a. Toyota Way
• Successfully Implemented Process Improvements
• Created standard work processes including BD/PD
  templates to influence
• 30 productivity gain while

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A Tribute to Anchor Bolts

• by Thomas W. Hartmann, P.E.
• Started thinking about anchor and adhesive
  technologies in childhood
• Experimented with Library Paste (Kindergarten)
• Scotch Tape Expert (Elementary School)
• White Glue Professional (Elmers, middle school)
• Contact adhesive and super glue (high school)
• Epoxies and Metal fastenings (college,
  engineering curriculum)
• Masters Thesis at Colorado State on Eccentric
  Bolted Connections
• Anchor bolts (post-graduate and career interest),
  particularly F-1554
• Reflection Using Anchor bolts will provide
  concrete illustrations about how Lean
  thinking can be incorporated into the design
  process.

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Anchor Bolts Safety Topic

• Reflection Using Four Anchor bolts will provide
  column stability and is required by OSHA unless
  the column is deemed a post and weighs less
  than 300 lbs. OSHA regulations provide a design
  criteria.
• Self-study Determine the OSHA design criteria
  and calculate the required bolt force.

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The Toyota Way isA new Way of Thinking

• The 14 principles of The Toyota Way are organized
  (visually) into four sections (The 4Ps)
• Long-Term Philosophy (purple)
• The Right Process Will Produce the Right Results
  (green)
• Add Value to the Organization by Developing Your
  People (orange)
• Continuously Solving Root Problems Drives
  Organizational Learning. (blue)
• The principles are set out and briefly described
  following

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Section I Long-Term Philosophy

• Principle 1
• Base your management decisions on a long-term
  philosophy, even at the expense of short-term
  financial goals.
• People need purpose to find motivation and
  establish goals.
• Establish a Long-Term Vision and Strategy
• Reflection Toyota has a 500 strategic year plan.
  Why?

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Long-Term Philosophy

• Example Mission We are a global project delivery
  company, making technology work to help our
  clients build a better world.
• Mission (The 4 Ps of the Toyota Way)
• Help our clients to build a better world globally
  (philosophy, problem-solving), using our
  expertise (people) and technology (process
  improvement).
• Reflection Should every company have a 500
  strategic year plan? Why or Why Not?

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Applying a Long-Term Philosophy

• By leveraging and improving knowledge about
  technology (process improvement), engineering
  companies can provide consistently greater value
  to our clients. 
• As a starting discussion, anchor bolts are
  simple, inexpensive fabrications used on most
  construction projects. Simplified layout aids
  the field crew.
• Yet, improper installation or errors
  in fabrication could create significant,
  expensive delays (problems) and have a great
  negative impact on project schedule and cost. 
• Reflection Do you think that your group has a
  standard anchor bolts? Why or Why Not?

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Beyond the philosophy

• Section II The Right Process Will Produce the
  Right Results
• Continuous Flow
• Pull work to even production
• Level Out Workoad
• Standardize tasks and Processes
• Use visual control systems
• Use only reliable technology that serves people
  and processes.
• Reflection How much rework is necessary if
  anchor bolts are mis-set?

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Beyond the right process

• Section III Add Value to the Organization by
  Developing Your People
• Grow leaders who understand the work, live the
  philosophy, and teach to others.
• Develop people and teams who follow companys
  philosophy
• Respect your extended network of partners and
  suppliers challenging and helping them to
  improve, too.
• Reflection Are the anchor bolt fabricators
  partners with Engineering Companies?

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Beyond developing people

• Section IV Continuously Solve Root Problems To
  Drive Organizational Learning.
• Go and see for yourself the root cause to
  understand the situation. (Genchi Genbutsu).
• Make decisions slowly by consensus, thoroughly
  consider all options, implement rapidly.
• Become a learning organization through
  relentless reflection (hansei) and continuous
  improvement (kaizen).
• Reflection Why focus on anchor bolts?
• They are on most projects. Are there problems?
• Are there competing standards between groups?
• If yes, then there is room for improvement!

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Beyond Continuous Improvement

• Why focus on anchor bolts using lean thinking?
• They are used on most E-P-C projects.
• There may be competing standards between
  business groups.
• Every structural engineer has an opinion.
• Anchor bolts are a point of structure failure
  and source of many RFIs.
• Anchor bolts are long-lead items, and if
  standardized, may improve the E-P-C delivery,
  safety, cost and schedule.
• Standard bolts can be pre-ordered or stocked
  in the fabricators shop.
• Reflection Anchor bolts provide the concrete
  example on how to become a learning organization
  through concensus-building, relentless reflection
  (hansei) and continuous improvement (kaizen).

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Principle 2 Reduce Wasted Efforts

• Create a continuous process flow to bring
  problems to the surface.
• Work processes are redesigned to eliminate waste
  (muda) through the process of continuous
  improvement kaizen.
• Kaizen is a rapid improvement process to
  eliminate waste. Kaizen, loosely translated
  could mean Blue ocean view or big picture
  approach.

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Eliminate waste (muda)

• The eight types of waste, applied to anchor
  bolts, are
• Overproduction (e.g. too many anchor bolts)
• Waiting (time on hand, e.g. waiting for
  fabrications to arrive)
• Unnecessary transport or conveyance (e.g.
  handling and storage)
• Overprocessing or incorrect processing (e.g. set
  out incorrectly or without templates such as
  wet-stabbed)
• Excess inventory (e.g. left over bolts)
• Unnecessary movement (e.g. cycle of redlines on
  shop drawings)
• Defects (e.g. bolt misalignment requiring RFIs)
• Unused employee creativity (e.g. Weve always
  used this standard, though it has problems)

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Principle 3 -- Pull

• ? Use "pull" systems to avoid overproduction.
• A method where a process signals its predecessor
  that more material is needed. The pull system
  produces only the required material after the
  subsequent operation signals a need for it. This
  process is necessary to reduce overproduction.
• Design Application Designers request work from
  production system and production process.
• vs. Push system Engineers prepare designers
  work.
• Reflection Can a construction site pull the
  needed anchor rods from stock, which then signals
  the fabricator to produce more standard anchor
  rods?

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Principle 4--SteadyLevel out the workload
(heijunka).

• ? Work like the ( tortoise, not the hare).
• This helps achieve the goal of minimizing waste
  (muda),
• not overburdening people or the equipment (muri),
  
• and not creating uneven production levels (mura).

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Principle 5 Quality(Mistake-Proofing)

• ? Build a culture of stopping to fix problems, to
  get quality right the first time.
• Quality takes precedence (Jidoka). Any employee
  in the Toyota Production System has the authority
  to stop the process to signal a quality issue.
• Reflections Ford Quality is Job 1
• Toyota/Lexus Endless Pursuit of Perfection
• Measure twice, install once (anchor rods)

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Principle 6 Standardize (part of 5Ss)

• ? Standardized tasks and processes are the
  foundation for continuous improvement and
  employee empowerment.
• Although Toyota has a bureaucratic system, the
  way that it is implemented allows for continuous
  improvement (kaizen) from the people affected by
  that system.
• It empowers the employee to aid in the growth and
  improvement of the company.

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Principle 7 Visual Controls

• ? Use visual control so no problems are hidden.
• Included in this principle is the 5S Program -
  steps that are used to make all work spaces
  efficient and productive, help people share work
  stations, reduce time looking for needed tools
  and improve the work environment.
• Reflection 1 Engineers and designers visually
  control drawings with revision marks and clouds.
  How can projects be visually controlled?
• Reflection 2 How can the anchor bolts
  annotations be improved on drawings to reduce
  field layout errors?
• Reflection 3 Can anchor bolt embedment and
  gage-spacing become more standard to expedite EPC
  delivery?

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The 5Ss

• ? Sort Sort out unneeded items
• ? Straighten Have a place for everything
• ? Shine Keep the area clean
• ? Standardize Create rules and standard
  operating procedures
• ? Sustain Maintain the system and continue to
  improve it

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Expanding the 5SsExample Thinking

• ? Sort Sort out unneeded items
• Prepare and provide the minimum calculation
  set. Save paper and management of the
  reproduction process.
• One set of standard structural details across
  business groups when possible.
• (Reflection How many anchor bolt designs should
  be standard?)
• ? Straighten Have a place for everything
• Example A library of standard calculations
  attached to standard details attached to standard
  sheets attached to standard specifications.
• Develop this thinking out of production tasks
  (i.e. Ask yourself -- should this be standard
  work, and if so, promote it to the team!
• (Reflection Again, how many anchor bolt designs
  should be the standard?)

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Expanding The 5Ss

• ? Shine Keep the area clean
• ? Standardize Create rules and standard
  operating procedures
• ? Sustain Maintain the system and continue to
  improve it

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Principle 8 Reliable Technology

• Use only reliable, thoroughly tested technology
  that serves your people and processes.
• Base this upon prototyping or creation of
  multiple working sets of information that are
  subject to the improvement process.
• Technology is pulled by manufacturing/design, not
  pushed to manufacturing/design.
• Reflection Anchor bolts are often specified by
  our suppliers and pushed into our work and
  drawings. Would it be worthwhile to send
  suppliers and fabricators  standard bolt
  designs for their consideration to help reduce
  field errors and improve quality?

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Section III Add Value to the Organization by
Developing Your People

• Without constant attention, the principles will
  fade.
• The principles have to be ingrained, it must be
  the way one thinks.
• Employees must be educated and trained they have
  to maintain a learning organization.

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Principle 9 -- Leadership

• ? Grow leaders who thoroughly understand the
  work, live the philosophy, and teach it to
  others.

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Principle 10 -- Teamwork

• ? Develop exceptional people and teams who follow
  your company's philosophy.
• Teams should consist of 4-5 people and numerous
  management tiers. Success is based on the team,
  not the individual.

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Principle 11- Respect Suppliers

• ? Respect your extended network of partners and
  suppliers by challenging them and helping them
  improve.
• Toyota treats suppliers much like they treat
  their employees, challenging them to do better
  and helping them to achieve it. Toyota provides
  cross functional teams to help suppliers discover
  and fix problems so that they can become a
  stronger, better supplier.

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Section IVContinuous Improvement

• Continuously Solving Root Problems Drives
  Organizational Learning
• Principle 12 Go and See the Problem
• Principle 13 Decision Making by Concensus
• Principle 14 Reflection

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Principle 12 Go See

• ? Go and see for yourself to thoroughly
  understand the situation (Genchi Genbutsu).
• Toyota managers are expected to "go-and-see"
  operations. Without experiencing the situation
  firsthand, managers will not have an
  understanding of how it can be improved.
• Furthermore, managers use Tadashi Yamashima's
  (President, Toyota Technical Center (TCC)) ten
  management principles as a guideline

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Ten Management Principles

• 1. Always keep the final target in mind.
• 2. Clearly assign tasks to yourself and others.
• 3. Think and speak on verified, proven
  information and data.
• 4. Take full advantage of the wisdom and
  experiences of others to send, gather or discuss
  information.
• Share information with others in a timely
  fashion.
• 6. Always report, inform and consult in a timely
  manner.
• 7. Analyze and understand shortcomings in your
  capabilities in a measurable way.
• 8. Relentlessly strive to conduct kaizen
  activities.
• 9. Think "outside (beyond) the box," or beyond
  common sense and standard rules.
• 10. Always be mindful of protecting your safety
  and health.

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Principle 13 Decision Making

• Make decisions slowly by consensus, thoroughly
  considering all options implement decisions
  rapidly (nemawashi).
• Here are some decision parameters
• 1. Find what is really going on (go-and-see) to
  test
• 2. Determine the underlying cause
• 3. Consider a broad range of alternatives
• 4. Build consensus on the resolution
• 5. Use efficient communication tools

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Principle 14 -- Reflection

• ? Become a learning organization through
  relentless reflection (hansei) and continuous
  improvement (kaizen).
• The process of becoming a learning organization
  involves criticizing every aspect of what one
  does.
• The general problem solving technique to
  determine the root cause of a problem follows

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Determine the root cause

• 1. Initial problem perception
• 2. Clarify the problem
• 3. Locate area/point of cause
• 4. Investigate root cause (5 whys)
• 5. Countermeasure
• 6. Evaluate
• 7. Standardize

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Determine the root cause

• 1. Initial problem perception Anchor bolts are
  often mis-set
• 2. Clarify the problem One in 100 bolt sets is
  wrong (1)
• 3. Locate area/point(s) of cause Many layout
  configurations, many bolts sizes, vendor
  requirements, etc.
• 4. Investigate root cause (5 whys)
• Why so many layout configurations?
• Why cant engineering companies standardize?
• Vendors/Tradition/Always done it that way
• Why maintain the tradition?
• Too busy to fix
• Why to busy?
• Im Busy Answering RFIs on Anchor Bolt Problems
  in the Field!
• 5. Countermeasure
• 6. Evaluate One in 1000 bolt sets is wrong
  (0.1)
• 7. Standardize What could AB-1-246(36) mean?
• Reflection Anchor bolts add a trivial cost on
  most projects. How much is the cost of missing a
  schedule because the anchor bolts took six to 10
  weeks to fabricate?

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Translating the principles

• There is a question of uptake of the principles
  now that Toyota has production operations in many
  different countries around the world.
• As a New York Times article notes, while the
  corporate culture may have been easily
  disseminated by word of mouth when Toyota
  manufacturing was only in Japan, with worldwide
  production, many different cultures must be taken
  into account.
• Concepts such as mutual ownership of problems,
  or genchi genbutsu, (solving problems at the
  source instead of behind desks), and the kaizen
  mind, (an unending sense of crisis behind the
  companys constant drive to improve), may be
  unfamiliar to North Americans and people of other
  cultures.
• A recent increase in vehicle recalls may be due,
  in part, to "a failure by Toyota to spread its
  obsession for craftsmanship among its growing
  ranks of overseas factory workers and managers."
  Toyota is attempting to address these needs by
  establishing training institutes in the United
  States and in Thailand.

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Notes

• 1. Liker, J. 2004. "The 14 Principles of the
  Toyota Way An Executive Summary of the Culture
  Behind TPS", p. 37. Ann Arbor, Michigan
  University of Michigan. Retrieved 2007-04-24
• 2. Liker, J. 2004. The Toyota Way 14 Management
  Principles from the World's Greatest
  Manufacturer.
• 3. Fackler, Martin. The Toyota Way Is
  Translated for a New Generation of Foreign
  Managers. New York Times. February 15, 2007.
  Retrieved on July 2, 2007.

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References

• ? Hino, Satoshi (2005). Inside the Mind of
  Toyota Management Principles for Enduring
  Growth. University Park, IL Productivity Press.
  ISBN 978-1-56327-300-1. http//www.productivitypre
  ss.com/productdetails.cfm?SKU3004.
• ? Liker, Jeffrey (2004). The 14 Principles Of The
  Toyota Way An Executive Summary of the Culture
  Behind TPS. http//www.si.umich.edu/ICOS/Liker04.p
  df.
• ? Liker, J (2004). The Toyota Way 14 Management
  Principles from the World's Greatest
  Manufacturer. McGraw-Hill. ISBN 0071392319.
  http//books.google.ca/books?id9v_sxqERqvMCdqTh
  eToyotaWaypsp1.
• ? Liker, J Meier, D. (2005). The Toyota Way
  Fieldbook A Practical Guide for Implementing
  Toyota's 4Ps. McGraw-Hill. ISBN 0071448934.

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External Resources

• The Toyota Way - Official Site
• Retrieved from http//en.wikipedia.org/wiki/The_To
  yota_Way

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