“The factory is getting a facelift, thanks to a raft of new technologies designed to make manufacturing more efficient, flexible and connected. Daniela Costa […] outlines three key drivers of this development, which could provide more than $500 billion in combined savings for manufacturers and customers.”
Source it from Goldman-Sachs
Michel Baudin‘s comments:
Thanks. I didn’t know Goldman-Sachs was the go-to place for manufacturing expertise.
The only departure from classical automation hype is the emphasis on human-machine collaboration. This topic had been ignored in the American and European approach to automation, with the exception of Working With Machines.
Otherwise, she used the word “significant” many times, probably to imply the existence of research and data behind her statements while saying nothing about what that research might have been. I am particularly curious about where the “$500B in savings” figure came from. It is given context-free, so we don’t know whether she means in Europe or worldwide and over how many years.
She also equated automation with the use of robots but that is common in the press.
“Toyota is one of the most visionary car makers with respect to its manufacturing. They continuously and radically evolve and update their production system. Recently I learned about their new “flexible assembly line.” Now, you’ve probably heard about Toyota’s flexible assembly lines producing multiple products on the same line. That is old hat; they’ve done that for thirty years. Their new flexible assembly line involves a completely different aspect of flexibility, with which Toyota surprised me (again). Let me show you …”
Sourced from AllAboutLean
Michel Baudin‘s comments: A must-read post by Christoph Roser for anyone who wants to keep up with new developments in the Toyota Production System.
“The automaker last month created a single group, staffed with 200 employees, to manage the Toyota Production System, centralizing a function that was spread out through the organization. Their task is to evaluate how core concepts like kaizen, or continuous improvement, can be applied to new businesses that include car sharing and consumer robots. The person in charge is 59-year-old Shigeki Tomoyama, a career Toyota executive who wields a tablet computer during events, making him look more like a Silicon Valley software engineer than a car guy. […] Akio Toyoda says the automaker his grandfather founded eight decades ago needs to move faster to keep up with the likes of Google and Uber Technologies Inc. […] In the last two years, Toyota has opened a Silicon Valley research center”
Source: Bloomberg Technology
Michel Baudin‘s comments: The article includes a group photo of the original Gazoo group from 1997 that includes both Tomoyama and current Toyota CEO Akio Toyoda:
Gazoo is an internet portal created by Toyota that is in sharp contrast with the brochureware websites of other automakers, featuring, among other things, articles about classic cars, used cars, road trips in Japan, and entertainment devices for kids during drives. This article is the first reference to Gazoo that I have seen in the American press. It’s unfortunate because Gazoo has been online since 2000 and is an approach to car marketing that deserves attention.
Kobe Steel CEO apologizing (10/2017)
“Companies Everywhere Copied Japanese Manufacturing. Now the Model Is Cracking. Concepts celebrated in business publications worldwide have been tarnished by a string of scandals.
Japan’s reputation for flawless manufacturing quality and efficiency transformed the country’s postwar economy, changed business practices worldwide and spawned a library’s worth of management manuals and business advice books. Now, the model is cracking.
Kobe Steel Ltd., Mitsubishi Materials Corp., and Subaru Corp. have all admitted in recent months to manipulating quality inspections, though all say no safety problems emerged. Takata Corp. declared bankruptcy last year after admitting to supplying more than 50 million defective vehicle airbags in the U.S. Mitsubishi Motors Corp. has admitted covering up vehicle faults and falsifying fuel-economy data.”
Sourced from The Wall Street Journal
Michel Baudin‘s comments: What does the Volkswagen diesel emission scandal say about eyeglass lenses and telescopes made by Zeiss or A320s assembled by Airbus in Hamburg? Nothing. Factories for these companies are all located in the same country but a lapse by one is just that, and the Wall Street Journal did not publish articles suggesting that it made a statement about German industry as a whole. When it comes to Japan, however, this is exactly what they are doing with this article, assuming there is such a thing as “Japanese manufacturing,” which is blemished by the misbehavior of any Japanese company.
Michael Ballé opens his 1/29/2018 Gemba Coach column with “all methodologies are about making a better use of our minds.” Are they? Tom DeMarco and Tim Lister disagree. In Peopleware, they describe methodologies as follows:
“A Methodology is a general systems theory of how a whole class of thought-intensive work ought to be conducted. It comes in the form of a fat book that specifies in detail exactly what steps to take at any time, regardless of who is doing the work, regardless of where or when. The people who write the Methodology are smart. The people who carry is out can be dumb. They never have to turn their brains to the ON position. All they do is start on page one and follow the Yellow Brick Road, like happy little Munchkins, all the way from the start of the job to its successful completion. The Methodology makes all the decisions, the people make none.”
“Strategy deployment is a powerful way to get the leadership team involved in the lean journey.For a long time, I’ve been dismissive of organizations that want to start their lean journeys with hoshin kanri, (also known as strategy deployment). When you’ve got a company where people are not engaged (at best) or suspicious of management (at worst), it seems to me that getting people involved in everyday improvement to make their jobs easier is a better place to start.[…] Until now. Recently, my colleague and friend Katie Anderson pointed out something I’ve completely missed: that strategy deployment is a powerful way to get the leadership team involved in the lean journey.”
Sourced through IndustryWeek
Michel Baudin‘s comments: As I have great respect for both Dan Markovitz and Katie Anderson, I have to paraphrase Judge Haller from My Cousin Vinny, “That is a lucid, intelligent, well thought-out argument… Overruled.”
The flaw I see in Dan’s argument is that it only addresses employee engagement, which isn’t the only reason to start with local, tactical shop-floor projects with both technical and managerial content. In an organization that is just starting on its journey, the successful initial projects are most commonly setup time reduction or cell conversion of a process segment. Besides engaging employees, they also produce tangible improvements, develop technical and managerial skills, and let leaders emerge.
Amonth ago, a reader asked Michael Ballé “If lean really is about innovation, why does so much of it seem to be about logistics, with truck preparation areas, leveling boxes, small trains, kanbans and so on?” His short answer “because logistics is the way into innovation” is a head scratcher and I fail to see any support for this assertion in the rest of his response.
While TPS and, more generally, the Toyota Way are innovative in the management and technology of operations, discussions of innovation are usually about products. Even in the car industry, which companies come to mind today about product innovation? Which ones would you want to learn from? Most likely not Toyota but Tesla for its electric cars and Alphabet/Google’s subsidiary Waymo for self-driving cars, both based in Silicon Valley.
Bodo Wiegand heads Germany’s Lean Management Institute. In his latest newsletter, on Wiegand’s Watch, he explains his concerns about the future competitiveness of German companies. Here is my full translation of his article, followed by my comments:
Bodo Wiegand: “A huge potential is not realized and simply left fallow – can we really afford that?
I think we cannot afford it.
In China and India, more engineers are trained each year than we have in Germany in total, and then we fail to exploit the huge potential of the engineers we have. Why? Because we do not want to give up our fiefdoms, our functional thinking and our single-minded concern for our turf.