PLAN DO CHECK ACT

Business approach with continuous improvement

Copyright © Toyota Institute Asia Pacific, Toyota Motor Asia Pacific Engineering and Manufacturing Co., Ltd.
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Cover
 Table of Contents
PLAN DO CHECK ACT
Business approach with continuous improvement

What is PDCA?

Benefits of PDCA

Beginning of PDCA

PDCA at Toyota

PLAN

Understand and confirm what to do

Create Action Plan

Build consensus through NEMAWASHI

DO

Implement your plan

Monitor your implementation

Adjust to achieve your target

Build consensus through HORENSO

CHECK

Evaluate Result and Process

Understand the reasons of success and failure

Share the outcome with stakeholders

Build consensus through REFLECTION

(Reflection Meeting and Final Report)

ACT

Resolve issue if did not achieve the target

Set successful processes as new standards

Start the next round of KAIZEN

Build consensus through YOKOTEN

1
PDCA
PDCA cycle is a work method that aims to create sustainable performance and continuously improve
that performance over time. It can be applied to any type of project or work process.

PLAN
Understand your work, make commitment
with ownership, and build consensus with
stakeholders.

A P
DO
Do it with strong commitment,
communication and visualization to
achieve target.

C D CHECK
Understand your success and failure with
reflection from stakeholders.

ACT
Based on “CHECK”, identify what should
be the next action.

Benefits of PDCA
Enable continuous improvement in our work

Increase efficiency of our work and reduce waste in time and resources

Reduce the conflict from communication

Build success standard

Increase the quality of our work output

2
Beginning of PDCA
The concept was first conceived by Walter A. Shewhart in the 1920’s.

Professor W. Edwards Deming championed the Shewhart’s idea, and

further developed his concept into a four step cycle: Walter A.
Plan-Do-Check-Act (PDCA). Shewhart
American physicist, engineer
and statistician, known as
Design or revise business process
the father of statistical quality
components to improve result
control.
Plan
Decide on changes
needed to improve
the process
Act Do

W. Edwards
Implement the plan and
measure its performance Deming
Check
American engineer,
Assess the measurements statistician, professor, known
and report the results to as father of modern quality
decision makers control.

PDCA at Toyota
In late 1950’s, Toyota faced a big quality problem because
of rapidly increased production volume and manpower.
This caused the development of members to suffer. Shoichiro Toyoda
(Sixth President)
At that time, Shoichiro Toyoda recognized that Toyota was
catching problem too late in the manufacturing process.
Deming Prize
So, he was keen to learn new technologies to identify errors
The Japanese Union of
earlier in the process. Scientists and Engineers
honors companies and
This began Toyota’s interest in Deming’s ideas on statistical organizations which
This began interest in PDCA to continuously improve working
quality control which emphasized the important of random – implement distinctive
process. Ininspection,
sampling, addition with
not quality control that
just inspection starts
at the endtoofcheck
the quality control measures.
and controlline.
production quality by each team member in production line.

After implementing the Deming’s approach, Shoichiro also

recognized the need to connect Toyota’s unstructured quality
program into total quality control, complemented by strong
management support. Thus began a three-stage plan to have
a total quality management program fully operated by 1964.
Professor W. Edwards Deming and
As a result, in-process defects in the plants were reduced by President Fukio Nakagawa at the
Deming Prize award ceremony (1965)
50% and shortly after Toyota won the Deming Prize.

3
MEMO

4
PLAN P
• Understand your work, make commitment with ownership, and build consensus with stakeholders.

• Planning is an important process in preparing a sequence of action steps to achieve a specific

result. If done effectively, you can reduce the necessary time and effort.

Your destination

Ideal Situation
Where do you want to be?

Target

How do you get there?

Plan

Who needs to be involved in what, when?

Building Consensus
Where are you now?

Current Situation

Processes
Processes

1. Confirm
1. Understand and confirm
and understand what
what to do
to do Build consensus
through
2. Create
2. CreateAction
ActionPlan
Plan
NEMAWASHI

5
Importance of Planning
Effective planning is important because it leads to more effective implementation and a better
chance of achieving the desired results, as you can see from the table below.

Effective Planning Weak Planning

CLEAR DIRECTION via defined objectives, AMBIGUOUS DIRECTION due to no or ill-
milestones, roles and responsibilities, and conceived objectives, roles, or measures.
results and process measures.

EFFICIENT USE OF RESOURCES via MUDA (Waste) OF RESOURCES due to

deliberate use of time, money, manpower, haphazard approach to them.
equipment and facilities

STAKEHOLDER BUY-IN via communication RESISTANCE OF STAKEHOLDERS due to

and consensus building. misunderstanding or disagreement.

SMOOTH IMPLEMENTATION due to solid DIFFICULTY IN IMPLEMENTATION due to

support and clear defined action plan. weak support and weak plan of action.

“Failing to plan is planning to fail”

Muda (waste) in time and effort due to insufficient

time spent in planning and communication

Total time spent when planning is not effective

Plan Do Check Act

Total time spent when planning is effective

Savings in time and effort as a result of

good planning and communication

(Example) Failure of 1st export car; TOYOTA CROWN to the U.S. in 1957.
Started export to the
Toyopet Crown U.S. in 1957
Stopped export in 1960

Unveiled in Japan in Because of lack of planning

Cannot sell because performance
1955. Has high
of the car did not meet the We did not have well planning, assumed
reputation due to its
environment condition in the U.S. that we can sell the car at the same
rough road durability.
condition as Japan. We did not study in
detail of the U.S. condition.
It was very successful in Americans use the car with long Years later we went back to the U.S.
Japan, and we thought that we distance in high speed. Different again with effective planning from the
can export to the U.S. without from Japanese who use with basic: understand what the customer
any problem. short distance in low speed. needs.
In 2008, TOYOTA became
No.1 in the world

6
Process 1: Understand and confirm what to do
In order to understand and confirm what to do, first we need to confirm why you need to do this job. It
is important to realize how your work adds value to the company and customer, rather than doing
what the boss tells you to do without thinking. This will give you motivation to do your work. There are
3 elements that are necessary for your motivation, it’s called MVP – Mission, Value, Pride.

M V P
Mission Value Pride
• What’s the goal or • What value is added • Be proud of doing
purpose of the job? by your job? your job

This MVP, will help you to maximize your motivation of doing your job

Mission - Make a link between your job & the company mission, your department hoshin, so
you will see the importance of your work.

Value - All jobs in Toyota have a value, but sometimes you do not know it. Discuss with
your supervisor to have a deeper understanding of your work assignment. You will
see the value in it.

Pride - Once you know your mission and the value of your work, be proud of yourself.

In this process, there are 5 sub-processes to help you to understand and confirm what to do.

1 Identify the purpose of your work

2 Clarify the ideal situation of your work

Process 1:
Understand 3 Clarify the current situation of your work
and confirm
what to do
4 Set your target

5 Create tasks list for your work

7
The best means to grasp the facts and ideas through GENCHI GENBUTSU. Then confirm your
facts and ideas through Building Consensus.

Find the facts and ideas through

GENCHI GENBUTSU

Go to the actual place to see, hear, touch and discuss the actual conditions of
your work,

Spend time reviewing what has been done before,

Check the work environment; look at the work process,

Review work documents or standards,

Interview those connected to the work,

Review the reflection report for the past project/work.

Confirm your facts and ideas through

Building Consensus

See Page 24, for the details of Building Consensus Process.

8
1) Identify the purpose of your work
In this process, we need to make a clear understanding of the purpose of your work based on the
customer’s need.

i) Why do you do this job?

Identify the
purpose ii) Who are your customers?
of your work

iii) What do your customers need?

i) Why do you do this job?

To define the purpose of your work, first we need to confirm why your work exists and have a
clear understanding of its purpose. Moreover, we need to know who are your customers and
what do they need? These will help you to have a clear understanding of your purpose and
expectation of your work.

Tips:

When considering “WHY” also think about;

What is the impact if we don’t do this work?

What is the benefit of this work?

ii) Who are your customers?

A work is successful when the needs of the customer have been met. So we must know who
our customers are. Identify “WHO” will use the output of your work.

Clarify who are the customers of your work. It may directly or indirectly impact the quality of
the output of your work, so it’s important to understand the expectations of your customers.

9
 iii) What do your customers need?
Once you understand who your customers are, the next step is to clarify their needs. What
kind of output do they want from your work? We should not only be limited to providing
necessary products and services, but also think about providing right quality and quantity at
the right time.

? For different
customers,
different
outputs
?

The best way to do this is by conducting discussions or building consensus with your
customers. Take time during interviews to draw out the true needs that create real benefits to
your project and confirm these are aligned with your understanding.

(Example) Department Annual Trip

Every year, company provides a budget to all departments to encourage employee to promote
harmony among employees and to attend the recreational activity together after working for a
whole year. The department activity is conducted differently in each year.

This year, THAI department has low score in teamwork within department from Employee
Engagement (EE) survey. So, GM suggested that the members should have an activity to create
a better relationship and strengthen unity in the department.

The assigned working team is looking forward to set a two-day annual trip with outdoor team
building activity. The venue should not be too far from the city (around 2-3 hours drive) with good
weather, preferably during January to March. This year, they have a budget of USD100 per head
to cover transportation, accommodation and team building activity for 50 members of THAI
Department.

This guideline is used to lead your thinking according to PLAN step.

Identify the purpose of your work

What is your work assignment? Department Annual Trip

Why do you do this job? To build team work through Annual Trip

Who are your customers? Team members in Department

What do they need? Time spending to build teamwork

10
2) Clarify the ideal situation of your work
What will you do to meet customer need? This will become your guideline for all tasks of your
work. Define the end output (result) and then consider the work that you will perform and what the
effect will be on that end output. Clarify what your product/deliverable is.

Your destination
Ideal Situation

In this process, we consider it in concrete terms such as:

How Much?
What? When? Where? Who?
(Budget)

From your ideal situation describe in measurable and concrete terms so that we can evaluate the
output of implementation. It is easy to measure when we define in quantitative terms. However, we
still need to define in qualitatively to indicate the quality of the results.

Qualitative (describe the quality) such as: Quantitative (describe the number/level) such as:

Human knowledge Level of understanding

Skill levels Level of capability
Satisfaction levels Level of satisfaction

In addition to the customer, you also need to know your other stakeholders
(anybody directly or indirectly involved/impacted by our work).

They can be your boss, supervisor, team member, contractor, vendor, etc.
(Note: the customer is one of the stakeholders)

Moreover, consider level of the stakeholder by asking:

1. Who needs to APPROVE? Approve level, also be

Approve Input and Know.
2. Who needs to give INPUT?
Input
3. Who needs to only KNOW? Input level, also be Know
Know but cannot be Approve.

11
 (Example) Department Annual Trip
Clarify the ideal situation

This guideline is used to lead your thinking according to PLAN step.

Purpose of your work:

What is your work assignment? Department Annual Trip

Why do you do this job? To build team work through Annual Trip

Who are your customers? Team members in Department

What do they need? Time spending to build teamwork

Based on the purpose of your work.

Consider ideal situations in concrete terms
with the needed output level

Ideal Situation:
What? When? Where? How much? Who?

Working team =
- Teamwork
Mr. A, Mr.B, Mr.C.
activity for team Cover
building Not hot weather Transportation, Approve = GM
Qualitative - Able to do
- Strong team season outdoor activity Accommodation, Input = Department
work in Activity Member
department
Know = HR dept.

2 days Annual trip

- 2-3 hours drive All 50 people in the
Quantitative with Team January - March USD 100 per head
from the city department
Building Activities

Think as quantitative as much as possible

12
3) Clarify the current situation of your work

Now it’s time to see where you are now. Clarify What the situation is now by comparing with the
ideal situation. When determining the current situation, compare it with your ideal situation to
understand what it will require to achieve your ideal.

Your destination
Ideal Situation

Where are you now?

Current Situation

Through GENCHI GENBUTSU, search for supporting facts that will help you understand what is
happening now and why. Knowing your current condition will help you define your starting point for
your work.

(Example) Department Annual Trip

(Example)

Clarify the current situation This guideline is used to lead your thinking according to PLAN step.

Ideal situation:
What? When? Where? How Much? Who?
Working team =
Mr. A, Mr.B, Mr.C.
- Teamwork activity for
Cover Transportation, Approve = GM
team building Not Hot weather - Able to do outdoor
Qualitative Accommodation,
season activity Input = Department
- Strong team work in Activity
Member
department
Know = HR dept.

Annual Team Building - 2-3 hours drive from All 50 people in the
Quantitative January - March USD 100 per head
Activities the city department

Clarify What the situation is now

by comparing with the ideal situation.
Current Situation:
What? When? Where? How Much? Who?
- Only relax activity
(Photo shooting, Singing) - Attraction around
- Less participation
- Low engagement in the company
Qualitative - - High cost per -
team work in department - Restaurant in
head
- EE Survey only 30% company area
(Company average 50%)

21 March 30 minutes drive 50% of member

Quantitative Day Trip and Dinner USD150 per head
2015 from the company attended

13
4) Set your target
Once you know your ideal situation and current situation, then you must determine what your
target is. By clearly clarifying what needs to be done by when and how much according to your
ideal situation with consideration to your condition (current situation). It’s always better to consult
with your superior about the target you set.

Your destination
Ideal Situation
Where do you want to be?

Target

Sub-Target

Where are you now?

Current Situation

Identify your Target – WHAT, by WHEN, and HOW MUCH (which level)
Depending on your work, sometimes this target might the same as the ideal situation. On the other
hands, target might be a path to your ideal situation.

Main Target

WHAT by WHEN HOW MUCH (which level)

Make clear target output of your work, Using “Key Performance Indicator - KPI” to
identify what kind of output according to the measure the target output of your work to
need of customer and date of the output. meet expected level.

Key Performance Indicator -KPI or can be known as “Judgment Criteria” used to measure
your target,

SMART model - A technique for setting target and KPI to measure the target
SMART is an abbreviation for the five conditions of a good KPI:

S
Specific
M
Measurable
A
Appropriate
R
Realistic
T
Time based

Does your KPI Does your KPI Does the KPI Does the KPI Does your KPI
clearly tell you show progress suitable and can contribute to show exact end
what to achieve? towards the be tracked by measuring the point of the
desired target? the target? target success? target?

14
 Sub Target (will be set when create Action Plan)

Set a target for each task and process that will lead to the success of your main target.
It should consistently support the output of your target.

KPI and Target will be used to monitor and evaluate

your work during DO and CHECK step.

E(Example) Department Annual Trip

Set your target

Target Utilize Annual trip as team building activity for department members
Statement by February 2016

KPI Target

- EE survey score for workplace environment 50% (equal to company average)

- Satisfaction towards team building 80% satisfied
- Number of member participating 50% (25/50 people joined)
- Budget Not over USD100 per head

(Tips)

In addition, a target should be challenging in order to achieve an excellent result and for your personal development. Lastly,
it’s always better to consult with your superior about target you set.

Concrete Target Challenging Target

We need to be careful not to use abstract terms such as We have to consider challenging and feasible target.
“Try our best”, “Improve efficiency”, or “Do something good. However, when we focus too much on the feasibility of
success, we tend to lose our challenging attitude and start
to compromise.

Example of abstract target Example of abstract target

Try one’s best Let others know of If the target is “Decrease parts cost by 30%”, we are
thinking to be “more cost effective”. Likewise, to broaden
Gain deeper understand Be competitive
our ideas, we need to think “more…, stronger…, faster…,
Improve the efficiency Learn new skill easier…”.

Make something effective Improve abilities

15
5) Create tasks list for your work
Right now, we know where you are, and where you want to go. Then we can begin to brainstorm
the actions required to achieve the target from the current situation. These actions can usually be
main tasks and sub tasks.

Consider things to do based on your target

(Example) Department Annual Trip

Create tasks list for your work

Get approved from

Survey member
Find/select place management

Nemawashi with Meeting with team

member Find/select
accommodation

Prepare concept paper

for the Annual trip
Select date Find/select
transportation

Promote activity

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 (Example) Department Annual Trip

Summary of Process 1: Understand and confirm what to do

This guideline is used to lead your thinking according to PLAN step.

Process 1: Confirm and understand what to do

1) Identify purpose of your work

What is your w ork
assignm ent?
Department Annual Trip

Why you do this job? To build team work through Annual Trip

Who are your custom er? Team members in Department

What do they need? Time spending to build teamwork

2) Clarify your ideal situation

Ideal What? When? Where? How much? Who?

Working team = Mr.

- Teamwork activity for Cover
A, Mr.B, Mr.C.
team building Not hot weather - Able to do transportation,
Qualitative Approve = GM
- Strong team work in season outdoor activity Accommodation,
Input = Dept. Member
department Activity
Know = HR dept.

2 days Annual trip with - 2-3 hours drive All 50 people in the
Quantitative January - March USD100 per head
Team Building Activities from the city department

3) Clarify your current situation

Current What? When? Where? How much? Who?
- Only relax activity
(Photo shooting,
- Attraction around - Less
Singing)
the company participation
Qualitative - Low engagement in - -
- Restaurant in - High cost per
team work in department
company area' head
- EE Survey only 30%
(Company average 50%)

30 minutes drive 50% of member

Quantitative Day Trip and Dinner 21 March 2015 USD100 per head
from the company attended

4) Set your target

Target
Statem ent
Utilize Annual trip as team building activity for department members by February 2016

KPI Target
- EE survey score for workplace environment 50% (equal to company average)
- Satisfaction towards team building 80% satisfied
- Number of member participating 50% (25/50 people joined)
- Budget Not over USD100 per head

5) Create tasks list for your work

Get approval from Prepare concept paper for
Survey member Find/select place
management the Annual trip

Nemawashi with member Find/select accommodation Meeting with team Promote activity

Select date Find/select transportation

17
Process 2: Create Action Plan
Once the most appropriate target has been set, we start to build the path to meet that target by using
your task list to develop an Action Plan. This process will focus on “Who need to do what by when
and how much?”

(Example)Action
(Example) Action Plan
Plan
Target of each task PIC Oct Nov Dec Jan Feb
Tasks
KPI Target Main Support W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4
Require GM approval

Team preparation Holiday

1
Role & responsibility Role confirmed and agreed 100% agreed by 25th
Mr. A Travel date
confirmation by team Oct. 15 Feb

Develop Approve
2 Concept of annual trip Concept paper approved by 5th Nov. Mr. A

Budget calculated Calculate Approve

3 Budget guideline by 5th Nov. Mr. B
Not over budget per head

every week until the

4 Meeting schedule Number of active meeting Mr. C
travel date

Venue and date selection

Benchmarking place 3 venues select by 20th Mr. A Find

6 Find option of venue Mr. B Choose
information Nov. Mr. C

Member response to the 100% response by 20 th Mr. A Create

7 Conduce the survey Mr. C Receive
survey Nov. Mr. B Distribute

Venue finalized according Mr. B Summary data Select &

8 Select the venue by 30th Nov. Mr. A Approve
to the survey Mr. C

Activity and admin preparation

Select &
Activity for build up Team building activity Find Nemawashi
9 by 15th Dec. Mr. C Mr. A Approve
teamwork approved

Find confirm participation

Transportation & by 2 weeks before travel Pre book
10 Confirm booking Mr. B
Accommodation date final confirm

All required equipment are by 1 week before travel

11 Equipment preparation Mr. C Mr. B
prepared date

summary meting
Feedback survey of Summaries the data from 100% participation by 2 Mr. B
12 Mr. A Receive
activity survey weeks after the trip Mr. C

In this process, there are 7 sub-processes to help you to step-by-step create an Action Plan

1 Put your task list in an order

.
2 Set a target for each task

3 Set milestones for each task

Process 2:
4 Draft schedule
Create Action Plan

5 Assign who would do each task

6 Consider risks

7 Visualize your action plan

18
Before create your action plan, determine resources required to carry out the tasks

Identify by name the individuals or organizations with roles in the project

and assign them their responsibilities and project tasks. When assigning
People
tasks recognize that everyone has different capabilities so the time to do
the project and the quality of the outcome will differ accordingly.

Also you’ll need to take each person’s schedule (holidays, business trips,
other work commitments, etc.) into consideration. Calculating man-hours

Time is a crucial task when considering the achievement of a final target. As

you calculate, ensure that you discuss this with each individual assigned
to confirm their ability and time to accomplish the necessary task in the
time allocated.

How much money is needed to complete the work successfully? Confirm

this with the stakeholders responsible. Money can be a source of
Money
contention so once the budget is set, be wise and careful in how you
manage it.

Equipment These can make or break a project so spend the needed time to think this
and thru and gain agreement to their usage.
facilities

What information may be required to complete the task? Information may

Information come from many sources including books, data bases, survey results,
interviews, etc. Depending on the source, the time to get it will vary.

Once you have identified the resources, reserve those needed immediately. Many resources are
shared with others in the organization, so you may not have access to them when most required if
you don’t act quickly.

19
1) Put your task list in order
After defining the tasks in the previous process, see the connection between them and also critical
path to complete them. Group them and put them in order to perform your task from start until the
end.

2) Set a target of each task

Once the tasks are identified, set a target and define measurable outcomes by using KPI for each
task (refer to “Set your Target” in page 14).

3) Set milestones
Once the tasks and targets are identified, set a due date for each task.

(Example)
(Example) Department Annual Trip
From the tasks list in “Process 1”, use it to create action plan
Get approve from
management
Survey member Find/select place

Preparation meeting with

team
Nemawashi with member Find/select accommodation
Concept paper for the Annual
trip
Select date Find/select transportation
Promote activity

1 Tasks
2 Target of each task PIC Oct 3 Nov Dec Jan Feb
KPI Target Main Support W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4
Team preparation

1
Role & responsibility Role confirmed and agreed 100% agreed by 25th Travel date
confirmation by team Oct. 15 Feb

Approve
2 Concept of annual trip Concept paper approved by 5th Nov.

Budget calculated Approve

3 Budget guideline by 5th Nov.
Not over budget per head

every week until the

4 Meeting schedule Number of active meeting
travel date

Venue and date selection

Benchmarking place 3 venues select by 20th Choose

6 Find option of venue
information Nov.

Member response to the 100% response by 20 th

7 Conduce the survey Receive
survey Nov.

Select &
Venue finalized according
8 Select the venue by 30th Nov. Approve
to the survey

Activity and admin preparation

Select &
Activity for build up Team building activity
9 by 15th Dec. Approve
teamwork approved

Transportation & by 2 weeks before travel Pre book

10 Confirm booking
Accommodation date final confirm

All required equipment are by 1 week before travel

11 Equipment preparation
prepared date

summary meting
Feedback survey of Summaries the data from 100% participation by 2
12
activity survey weeks after the trip

20
4) Draft schedule
Once the tasks, order, targets, milestones are set, then connect them to a timeline by calculating
how long it will take to perform each task.

Create a schedule by counting backwards from the milestones, so we can work out time for each
task to meet final deadline. Consider all your milestone targets in the process. Sometimes you
may have to adjust them to make it all work.

Tips: Concern points when draft schedule

Points Explanation

Bottlenecks Tasks that must be done before other tasks can start. If these tasks are held up, it will
put your project completion time at risk.

Peak work Many tasks are running at the same time. Consider any adjustments that can be made
periods to avoid them

Fixed tasks Tasks that cannot be moved. For example, an Executive Meeting that you will use for
final approval may be on a fixed date.

Flexible tasks Tasks that can be changed as needed to fit the situation. For example, a regular team
meeting may be flexible in timing.

Buffer time Allows you to address problems as they occur during implementation without risking the
projects timely completion.

Communication Determine who must be informed of project progress and how and when they will
receive information. The most common reporting mechanism is a weekly/monthly
progress report, describing how the project is performing, milestones achieved and work
planned for the next period.

Approval time When is approval necessary, whose approval is necessary, and what are the approver’s
schedules? Moreover, sometimes approvers are busy so you may have to wait many
days to get on their schedule.

If you fail to check then later you may face problems such as “I need approval now, but
the approver is not here.”

5) Assign who would do it

Once the main tasks are identified, define who would do each task. We will call this person as PIC
– Person In Charge, Who will take the responsibility of each task.

21
6) Consider risks
Consider risks and factors that may affect the successful completion of your project. By realizing
potential problems, we can avoid or be prepared for the risk which might occur through proper
preparation.

When you identify risks, consider the followings:

What you will do to prevent the problem from occurring?

What you will do in the event it does occur?

Remember, ignoring a risk doesn’t make it go away.

(Examples) Common project risks:

• Time and cost estimates are too optimistic

• Customer review and feedback cycle is too slow

• Unexpected budget cuts

• Unclear roles and responsibilities

• Stakeholder needs are not properly understood

• Stakeholders change or add requirements after the project has started

• Poor communication resulting in misunderstandings

• Quality problems resulting in rework

• New activity with no experience to support it.

7) Visualize your plan

Non-verbal, visual communication is often more effective than words, and is especially pertinent in
multi-lingual environments.

In Toyota, visualization is a crucial success factor in the way we communicate and share
information and knowledge across countries, cultures and languages.

Put your plan on paper so that it is quickly and easily understood. This will make a significant
difference in gaining understanding and agreement to it.

22
 5
Target of each task PIC Oct Nov Dec Jan Feb
Example)

Tasks
KPI Target Main Support W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W2 W3 W4 W1 W2 W3 W4
6W1
Require GM approval

Team preparation
Create Action Plan

Holiday
Role & responsibility Role confirmed and agreed 100% agreed by 25th Travel date
1 Mr. A
confirmation by team Oct. 15 Feb

Develop Approve
2 Concept of annual trip Concept paper approved by 5th Nov. Mr. A

Budget calculated Calculate Approve

3 Budget guideline by 5th Nov. Mr. B 4
Not over budget per head

every week until the

4 Meeting schedule Number of active meeting Mr. C
travel date
(Example) Department Annual Trip

Venue and date selection

Find
Benchmarking place 3 venues select by 20th Mr. A Choose
6 Find option of venue Mr. B

23
information Nov. Mr. C

Member response to the 100% response by 20 th Mr. A Create

7 Conduce the survey Mr. C Receive
survey Nov. Mr. B Distribute

Venue finalized according Mr. B Summary data Select &

8 Select the venue by 30th Nov. Mr. A Approve
to the survey Mr. C

Activity and admin preparation

Select &
Activity for build up Team building activity Find Nemawashi
9 by 15th Dec. Mr. C Mr. A Approve
teamwork approved

Find confirm participation

Transportation & by 2 weeks before travel Pre book
10 Confirm booking Mr. B
Accommodation date final confirm

All required equipment are by 1 week before travel

11 Equipment preparation Mr. C Mr. B
prepared date

summary meting
Feedback survey of Summaries the data from 100% participation by 2 Mr. B
12 Mr. A Receive
activity survey weeks after the trip Mr. C
Build Consensus through NEMAWASHI
We must start building consensus with related people (Stakeholders) since the beginning (Confirm
your work assignment and Understand what to do). When building consensus, we need to explain the
purpose, target, background information. It is important to gather ideas and opinions so that we can
improve our project and make an overall optimization. The actions will increase the speed and
smoothness for implementation.

Building Consensus Process

Confirm
Expectations Communicate
Nemawashi Get Approval
& and Implement
Stakeholders

Tatakidai Revised Final Approved

paper papers paper paper

Tatakidai: The first rough draft that representing your idea.

NEMAWASHI

“Nemawashi” is a Japanese word that means “go around the roots”.

(ne = root, mawasu = go around)

It originated from a gardening term for digging and fertilizing the soil around a plant to nurture
its growth. It has been adapted into a business context referring to a communication method
used to build consensus in order to facilitate the implementation and growth of business
projects.

In Toyota, communication is often done via “Nemawashi”.

Nemawashi is accomplished by meeting with your stakeholders and exchanging information,

perspectives and ideas. Questions and feedback from your stakeholders help to clarify your project
and build consensus so you will have full support during implementation.

In order to understand your stakeholder’s point of view, frequent and continuous communication is a
must. If you gain agreement before you implement your project on exactly what will be done by
whom, when, and with what intended outcome (including what stakeholders are expected to do to
support you) it will be much easier to implement.

24
MEMO

25
MEMO

26
DO D
Do it with strong commitment, communication and visualization to achieve target.

Plan
Final Goal
Key Milestone

Actual

With Monitoring & Adjustment

No Monitoring & Adjustment

Processes

Processes
1. Implement your plan
Build consensus
2. Monitor your implementation
through
3. Adjust to achieve your target (if problem occur) HORENSO

27
Process 1: Implement your plan

Concentrate your efforts,

and work as a team in a speedy manner

When implementing, pay attention to the due dates. If it is not complete by the due date, the project
may fail. Moreover, the unexpected obstacles will always occur. To overcome these obstacles, there
are two actions that should be followed throughout the implementation:

Consistent monitoring

Appropriate adjustments of the plan to ensure you achieve your targets.

(Example)
(Example) Department Annual Trip

Implement your plan

AsDuring
of endimplementation
of November, (Nov-Dec)

As oftarget
Team end of
theNovember,
annual trip date in February. After survey, they found that more than 50%
rd
have workload in February and March, they are not available. They have to move it to 3
Our team targets the annual trip date in February. After survey, it was found out that
week of January. This make the team have a short time to prepare because in the beginning
more than 50% have workload in February and March, and they are not available.
of January, we have the long holiday.
They have to move it to 3rd week of January.

This gives the team a short time to prepare because in the beginning of January, there
is a long holiday.
A week later

According to the survey result, we have booked for the Hotel in the Pattaya, Thailand.
A week later
However, the hotel calls us that there was a flood. So, the hotel has to close for
According toand
maintenance thecannot
surveyready
result,for
wethe
have
duebooked
day. for the Hotel in the Pattaya, Thailand.
However, the hotel informed that there are repairs due to a recent flood. So, the hotel
Athas
the to
result, the team
be closed have to consider
for maintenance and other option
will not in short time for prepare and
be available.
communicate.
At the result, the team had to consider other options with a short time to prepare and
communicate.

28
Process 2: Monitor your implementation
We should regularly monitor the progress of implementation comparing to the planned schedule. This
is essential to check your progress to confirm that you are on track to achieve your target. We can
take measures to minimize the variance and avoid if from getting worse. When there is a delay in the
schedule (or any problem), we much report it to other members, and find cause as soon as possible.
Once you uncover the cause, you must fix it immediately and try to get back on schedule.

What you need to monitor are PROCESS and RESULT (output),

then SHARE it to your stakeholders.

1) Monitor Process
We must monitor the process in order to catch problems early enough to solve them so your get
the intended result. It is important to be aware of your work/project’s process and monitor it.
When you monitor, you can identify issues quickly and resolve them before they grow bigger and
become unmanageable ending in a bad result.

Your project process is represented by your plan, so the easiest method to monitor it is to track the
plan schedule to confirm that the tasks are being completed compares with the planned key
milestones. This can be done through a regular status report (daily, weekly, etc.) that shows the
planned versus actual situation.

Symbols that can easily visualize your process through your action plan

Draw the line as the correct date to show that you wither meet the plan or had a delay or
advanced task.

Meet plan Faster than plan Slower than plan

(Example) Department Annual Trip

Draw lines to monitor your process in the action plan
Target of each task PIC Oct Nov Dec
Tasks
KPI Target Main Support W3 W4 W1 W2 W3 W4 W1 W2 W3 W4
Venue and date selection

Benchmarking place 3 venues select by 20th Mr. A Find

6 Find option of venue Mr. B Choose
information Nov. Mr. C

Member response to the 100% response by 20th Mr. A Create

7 Conduce the survey Mr. C Receive
survey Nov. Mr. B Distribute

Summary data Select &

Venue finalized according to by 30th Nov. Mr. B Approve
8 Select the venue Mr. A
the survey by 14th Dec. Mr. C

29
2) Monitor Result
Sometimes, the result can’t be seen until the end of the process. However, in other cases it can
be measured along the way. These measures are referred as Key Performance Indicators (KPI)
that we already set when planning. There are best communicated via visual means, a visual graph
or chart to make a big difference in creating easy understanding of the results status.

There are several techniques that you can use to measure your target and KPI

Using judgment measure

Use your judgement to measure the result that based on the qualitative target

Complete Complete with issue Not Complete

Using Charts and Graphs

We can use different Charts and Graphs to visualize the result based on quantitative target

For example, the Charts and Graphs below show the sale progress in 4 quarters.
10 10

9 9

8 Plan 8 Plan
Actual Actual
7 7

6 6
QTR1 QTR2 QTR3 QTR4 0 1 2 3 4 5

QTR1 10
10
9 9
8
7 Plan Plan
8
QTR4 6 QTR2
Actual Actual
7

6
QTR3 QTR1 QTR2 QTR3 QTR4

(Example) Department Annual Trip

100% 2 Not Replies

This graph shows the result
90% 8 Maybe 8 Option A
48 Replies 18 Own car
80% from the survey was that
40 attend
70% 10 Option B
distributed to all members
60%
30 Option C 30 Bus (50people).
50%
40%
30%
20%
10%
0%
Survey Reply Attendance Trip/Accom. Transportation

30
3) Share your progress
Because it is important to keep everyone informed, we must create a method to share the plan
progress that is easy to update and simple to understand, and put it in a place that everyone can
have access to.

A daily status report meeting where project plans have been visualized.

A common practice is to post the plan/schedule on a wall where everyone can see it. Then
regularly meet at that place to show the status and discuss progress. This becomes a key
decision-making time also as problems arise that require discussion and consensus on what
appropriate countermeasure may be.

Things that should be visualized

How is the achievement

Are you on schedule? Are there problems and
level of processes and
(late, early, on time) countermeasures?
results?

(Example) Department Annual Trip

Visualization of monitor progress

Target of each task PIC Oct Nov Dec Reflection / Next Action /
Tasks EVA.
KPI Target Main Support W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 Problem Countermeasure

Venue and date selection

Find option of Benchmarking place 3 venues select Mr. A Find

6 Mr. B Choose
venue information by 20th Nov. Mr. C

Conduce the Member response to 100% response Mr. A Create

7 Mr. C Receive
survey the survey by 20th Nov. Mr. B Distribute

Venue finalized Summary data Select &

Select the Mr. B Approve The selected hotel had Have to select new venue
8 according to the by 14th Dec. Mr. A
venue Mr. C flood and cannot be ready. and hotel by 14 Dec.
survey

31
Process 3: Adjust to achieve your target (if problem occur)
It is often necessary to adjust your plan as problems occurred. Changes may include altering the
schedule, the implementation process or even your target. In extreme cases they could result in a
change to your desired outcome.

When obstacles arise, Plans (and sometimes targets)

must be adjusted to achieve your final destination. Your Target

Your Plan
The big boulders and small rocks
are obstacles that appear and
must be removed or worked
around to achieve your ideal
situation.
Your Starting Point

At the time a problem occurs, there are 2 actions that you should take before you adjust the plan.

2 actions to take before adjusting the plan

(1)
Clarify the problem (2)
Find a solution
Confirm the cause of the problem to the problem

32
1) Clarify the problem
Sometimes a problem is clear to you, but others cannot see what you see, so they don’t recognize
the problem. So the first step of adjustment is confirming the problem and that all involved
understand it in the same way. This is most easily done by visualizing your plan versus actual
status.

Confirm the cause of the problem

To eliminate the problem, you must eliminate the cause. The most effective way to determine
the cause is to go to the source of the problem to investigate it (Genchi Genbutsu).

Example of causes of problems

Resource changes,
Business environment changes
(Time, capability, money)

Direction changes Ineffective process

2) Find a solution to the problem

When determining solutions (commonly called as countermeasure), you might be forced to make
choices in order to meet the deadline. In this case, use your best judgement while considering the
outcome and then move forward quickly.

However if the task start was delayed, but you cannot move the deadline, then you must consider
a temporary fix to get the task done on time.

Deadline

Original plan
Use your best
judgement
Adjust plan but missed deadline

Move forward Consider a temporary fix

quickly to make it done on time

If no impact to customer and business condition, the deadline can be moved. But, we need the
confirmation and have agreement from Customer, Supervisor and Customers.

If there is an impact to Customer and business condition, other options may include putting in more
resources to make it done on time.

33
 Target of each task PIC Oct Nov Dec Jan Feb
Tasks
KPI Target Main Support W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 Reflection / Next Action /
EVA.
Problem Countermeasure
Plan Adjustment

Require GM approval

Team preparation Holiday

Role & responsibility Role confirmed and agreed Old
1 100% agree by 25th Oct. Mr. A New
confirmation by team
Travel date Travel date
22 Jan 15 Feb
Develop Approve Delay due to GM went to Check approver availability
2 Concept of annual trip Concept paper approved by 5th Nov. Mr. A
business trip before set up a plan

Budget calculated Calculate Approve

3 Budget guideline by 5th Nov. Mr. B
Not over budget per head

every week until the

4 Meeting schedule Number of active meeting Mr. C
travel date
(Example) Department Annual Trip

Venue and date selection

Find
Benchmarking place 3 venues select by 20th Mr. A Choose
6 Find option of venue Mr. B
information Nov. Mr. C

34
Member response to the 100% response by 20th Mr. A Create
7 Conduce the survey Mr. C Receive
survey Nov. Mr. B Distribute

Summary data Select & Select &

Venue finalized according to by 30th Nov. Mr. B Approve Approve The selected hotel had Have to select new venue
8 Select the venue Mr. A
the survey by 14th Dec. Mr. C flood and cannot be ready. and hotel by 14 Dec.

Activity and admin preparation

Select & Delay on the finding the Communication with vender

Activity for build up Team building activity Find Nemawashi Approve
9 by 15th Dec. Mr. C Mr. A vender to do activity to already started, can be
teamwork approved
cover all necessary points finished with in 18 Dec.

Find confirm participation

Transportation & by 2 weeks before travel Pre book
10 Confirm booking Mr. B final final confirm
Accommodation date confirm participation
confirm

All required equipment are by 1 week before travel

11 Equipment preparation Mr. C Mr. B
prepared date

Receive Receive
Feedback survey of Summaries the data from 100% participation by 2 Mr. B summary meting
12 Mr. A Summary meeting
activity survey weeks after the trip Mr. C
HORENSO
Share your progress with stakeholders

It is important to report, inform and consult in a timely manner with related members. You should
always try to grasp their needs and situations. We especially have to share negative news quickly
since the news may influence what they are doing and they may need extra time to resolve issues.
Moreover, timely report, informing, and consulting can avoid potential risk and contingency plans for
unforeseen changes. We called it Ho-Ren-So.

This term/system is commonly used in Toyota to remind us of how to communicate.

Report progress of the work, your stakeholders will be interested to

HOkoku know if you are facing any problem in reaching our target. Through
effective and timely reporting, you can highlight the problems that
= Report
you face and request support.

When problem occurs, you can inform concerns via meetings, phone
calls, visualization boards, etc. It should be reviewed with
management immediately. Don’t wait until others ask for information.
RENraku Take action, speak up and share information as you have it.

= Inform In the production environment all members are encouraged to give an early
warning if they identify concerns in the production process. They pull what is
called an “ANDON” cord to call their Team Leader for assistance or to share
urgent information.

It may be difficult to determine countermeasures yourselves. When

problems occurred, consult with your stakeholders to determine
SOdan actions. Consider the situation, what action should be done, and
= Consult then consult with others by sharing your ideas and discussing with
them.

35
MEMO

36
CHECK C
Truly understand your success and failure with reflection from stakeholders.

- Evaluate both results and process and learn from both success and failure -

What was the What was the

result? process?

In terms of the goal, how was the outcome?

Assessment Assessment
Assessment
From From
From
Customer’s Your Own
Toyota’s
Perspective Perspective
Perspective

Processes
1. Evaluate Result and Process
from 3 key perspectives: Build consensus
Customers’, Toyota’s, and Your Own. through
REFLECTION
2. Understand the reasons of success and failure
(Reflection Meeting
and Final report)
3. Share the outcome with stakehloders

37
Process 1: Evaluate Result and Process
from 3 key perspectives: Customers’, Toyota’s, and Your Own.

Evaluate both results and processes from the following perspective:

Did it lead to Did it support Did it help

Customer satisfaction? company growth? our own development?

Even when we feel the work was successful, customers might have different options, especially in the
process. That is why we need to make evaluations through GENCHI GENBUTSU. If we always think
of the purpose of our work, the evaluation of the 3 key perspectives should be related. Then reflect as
the Overall Evaluation.

1) Evaluate your results and processes based on your target and KPI
First, evaluate whether or not the target was achieved.

Certain results but did not achieve the target,

Evaluate the we cannot call it a “success”.
Result
Evaluate the results objectively comparing to a target. Find its cause if
the target is not met, and reflect in the future.

We value processes as much as we value results.

Only constant and continuous results

can be called “RESULT” at Toyota.
Evaluate the
Process It is important to review the process and reflect it in the future. So, find
the reasons of successes and failures. When reviewing, we need to
consider if we were able to implement on schedule or if the
countermeasure was the best way to solve the problem

2) Hear feedback from your stakeholders

We need to share all the evaluation of both result and process and also
hear feedback from people involved. Commonly, conduct a “Reflection Reflection
Meetings
Meeting” as a way to wrap up a work that has just ended.
During these meetings
Stakeholders will be interested in the summarised outcome of your
we will review the activity
project. They will want to know the result from your work and also from beginning to end.
understand the process effectiveness. This is also a good time to build
consensus for the next steps in Act.

38
Example
(Example) Department Annual Trip

Overall Result
Target Statement Overall EVA.

Utilize Annual trip as team building for

department member by February 2016

Based on evaluation of Result and Process with the observations and

comments from member can be concluded as Overall Evaluation.

Evaluate Result
KPI Target Actual EVA. Reflection / Issue
50% (equal
- EE survey increased from 30% to 52%
- EE survey score for workplace environment to company 52%
- Team understand more each other
average)
80% 87.5%
- Satisfaction toward team building - Participant appreciate the activity
satisfied (35/40)
50% (25/50
80%
- Number of member participation people - 80% Attend
(40/50)
joined)
Not over
- Budget USD100 per USD 96 - Spent only USD 96 per head
head

Evaluate Process
Process KPI Target Actual EVA. Reflection / Issue

Concept of annual
2 Concept paper approved by 5th Nov. by 8th Nov. Delay due to GM went to business trip.
trip

Venue finalized according by 30th Nov. by 14th

8 Select the venue Short cancellation from the hotel.
to the survey by 14th Dec. Dec.

- Delay on the finding the vender to do activity to cover all

necessary points.

Activity for build up Team building activity by 15th

9 by 15th Dec. - Good vendor selection, able to support what team require
teamwork approved Dec.

- The activity was inconvenience, have to stop for a while.

Summary information from the action plan.

Target of each task PIC Oct Nov Dec Jan Feb
Tasks
KPI Target Main Support W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 Reflection /
EVA.
Issue
Require GM approval

Team preparation Holiday

Role & responsibility Role confirmed and agreed Old
1 100% agree by 25th Oct. Mr. A New
confirmation by team
Travel date Travel date
22 Jan 15 Feb
2 Concept of annual trip Concept paper approved by 5th Nov. Mr. A Develop Approve Delay due to GM went to business trip

Budget calculated Calculate Approve

3 Budget guideline by 5th Nov. Mr. B
Not over budget per head

every week until the

4 Meeting schedule Number of active meeting Mr. C
travel date

Venue and date selection

Benchmarking place 3 venues select by 20th Mr. A Find

6 Find option of venue Mr. B Choose
information Nov. Mr. C

Member response to the 100% response by 20th Mr. A Create

7 Conduce the survey Mr. C Receive
survey Nov. Mr. B Distribute

Summary data Select & Select & Have problem due to the selected hotel
Venue finalized according to by 30th Nov. Mr. B Approve Approve
8 Select the venue Mr. A maintenance, but can find the new hotel
the survey by 14th Dec. Mr. C
with in the new target date

Activity and admin preparation

Select &
Activity for build up Team building activity Find Nemawashi Approve Delay on the finding the vender to do
9 by 15th Dec. Mr. C Mr. A
teamwork approved activity to cover all necessary points

conf irm participation

Transportation & by 2 weeks before travel Find Pre book
10 Confirm booking Mr. B final
Accommodation date confirm participation final confirm
confirm

All required equipment are by 1 week before travel

11 Equipment preparation Mr. C Mr. B
prepared date

Receive Receive
Feedback survey of Summaries the data from 100% participation by 2 Mr. B summary meting
12 Mr. A Summary meeting
activity survey weeks after the trip Mr. C

39
 Process 2: Understand the reasons of success and failure
We need to examine the reasons and background in both successful and unsuccessful case. Even in
the case of success, it was under certain circumstances, and if the circumstances change, the result
might be different. This is same for unsuccessful cases. Therefore, we need to understand the
reasons of success and failure, and accumulate it as knowledge and know-how.

(Example) Department Annual Trip

Understand reason of Result reflection
KPI Target Actual EVA. Reflection / Issue Cause
50% (equal - EE survey increased from 30% to
- EE survey score for workplace
to company 52% 52% - Opportunity to know personality
environment
average) - Team understand more each other

80% 87.5%
- Satisfaction toward team building - Participant appreciate the activity - Relax and fun as group
s atisfied (35/40)

50% (25/50
80% - Survey attendance before the event to
- Number of member participation people - 80% Attend
(40/50) see the majority
joined)

Not over - Higher participant / less cost per head

- Budget USD100 per USD 96 - Spent only USD 96 per head - Benchmark venders to select the most
head appropriate one

Understand reason of Process reflection

Process KPI Target Actual EVA. Reflection / Issue Cause

Concept of annual Concept paper When plan the schedule, did not check
2 by 5th Nov. by 8th Nov. Delay due to GM went to business trip.
trip approved GM's calendar.

Venue finalized
by 30th Nov. by 14th
8 Select the venue according to the Short cancellation from the hotel. Immediate maintenance from flood.
by 14th Dec. Dec.
survey
- Do not know how to check the
- Delay on the finding the vender to do
necessary point at the first place. Have
activity to cover all necessary points.
to create at checklist for benchmarking.

Activity for build up Team building by 15th - Good vendor selection, able to support - Benchmark venders to select the most
9 by 15th Dec.
teamwork activity approved Dec. what team require appropriate one

- The activity was inconvenience, have - It was raining during activity and no
to stop for a while. indoor venue.

Process 3: Share the outcome with stakeholders

We need to share all the evaluation of both result and process Final Report
including both success and failure with people involved through a Use to clarify what occurred
Final Report. At the same time we need to discuss future directions including recommendations
for future action.
of KAIZEN (This will be explained in ACT).

40
MEMO

41
MEMO

42
ACT A
Based on “CHECK”, identify what should be the next action.

Kaizen
Consistently achieved
the target, so will raise
the bar

Standardize
Achieved the target,
so will repeat the same
process again

Resolve Issues
Did not achieve the
target, so will consider
what must be change to
achieve the target

Processes

1. Resolve issue if did not achieve the target

Build consensus
2. Set successful processes as new standards through
YOKOTEN
3. Start the next round of KAIZEN

43
Process 1: Resolve issue if did not achieve the target
During the “check” phase you may have identified result or process issues.

It could be that your target was not met and you must put countermeasures in place to achieve it. Or
you might have identified other problems that were covered by a temporary fix, but a long term
countermeasure is needed.

Countermeasures

Short term Long term

You can easily solve Difficult to solve,

problem by yourself need involvement of others

Example
(Example) Department Annual Trip

Create countermeasures and next actions based on reflection from Check Step

Result
KPI Target Actual EVA. Reflection / Issue Cause Countermeasure/Next action
- EE survey increased from 30%
50% (equal
- EE survey score for workplace to 52% - Engage team building as the annual
to company 52% - Opportunity to know personality
environment - Team understand more each activity
average)
other
- Create a activity checklist for
80% 87.5% - Participant appreciate the
- Satisfaction toward team building - Relax and fun as group comparing all activities with feedback
satisfied (35/40) activity
participation

50% (25/50
80% - Survey attendance before the - Continue to perform the same for next
- Number of member participation people - 80% Attend
(40/50) event to see the majority event
joined)

- Higher participant / less cost

Not over
per head
- Budget USD100 per USD 96 - Spent only USD 96 per head - Use for reference for next year event
- Benchmark venders to select
head
the most appropriate one

Process
Process KPI Target Actual EVA. Reflection / Issue Cause Countermeasure/Next action

Concept of annual Concept paper Delay due to GM went to When plan the schedule, did not Check Approver availability and visualize
2 by 5th Nov. by 8th Nov.
trip approved business trip. check GM's calendar. on the action plan.

Venue finalized
by 30th Nov. by 14th Short cancellation from the Immediate maintenance from Sign agreement to prevent cancellation
8 Select the venue according to the
by 14th Dec. Dec. hotel. flood. and keep company benefit.
survey
- Do not know how to check the
- Delay on the finding the vender
necessary point at the first place.
to do activity to cover all
Have to create at checklist for
necessary points. - Create the checklist. This can be used
benchmarking.
for next year annual trip or other event.
Activity for build up Team building by 15th - Good vendor selection, able to - Benchmark venders to select
9 by 15th Dec.
teamwork activity approved Dec. support what team require the most appropriate one

- The activity was inconvenience, - It was raining during activity and - Consider venue that have space for
have to stop for a while. no indoor venue. indoor activity

44
Process 2: Set successful processes as new standards
A successful process should be established as a new standard. We need to Muda Waste
make processes so that anyone at anytime can produce the same result Mura Inconsistencies

without muda, mura, or muri. Muri Overburden

When you standardize the work, do not think that you always have to produce something major.
It might be different ways of standardization depending upon the members’ abilities and experiences.

There are many effective ways to it, starting from showing members what to do. However, the
standard should be created in an easily used form such as manuals, samples, checklists, flowcharts,
and or guidelines.

Manual Forms Checklists Flow-chart

Once we already have a standard, it is not the end of the work. There are opportunities to
continuously improve your work (Kaizen). It is always important to revise standards in a timely manner
according to the environmental changes.

Process 3: Start the next round of KAIZEN

KAIZEN is the process of improving the level and/or value of output. Even when a successful task has
been completed, there are always some unresolved issues or remaining problems which need to be
addressed. Therefore, once we start the next round of project, consider the reflection from this
round’s ACT to start PLAN in the next round of PDCA.

KAIZEN is a Japanese term for improvement (KAI = Change, ZEN = good)

45
YOKOTEN
Share the success and failure

The successful process should be standardized and shared within the company openly. Applying the
process in various situations and environments leads to the overall improvement of the process itself
(KAIZEN), and as a result, will help to support company growth.

When you YOKOTEN, it is important to share not only methods and procedures, but also the reasons
we decided to take this process. Moreover, we need to share mistakes that we made during the
implementation.

YOKOTEN is Japanese meaning “transfer” (YOKO = Side, TEN = transfer)

46
MEMO

47
MEMO

48
BIBLIOGRAPHY

Toyota Business Practices, Toyota Motor Corporation, Toyota Institute.

The Toyota Way 2001, Toyota Motor Corporation, Toyota Institute.

Ji Kotei-Kanketsu: Build in Quality with Ownership, Toyota Motor Corporation, Toyota Institute.

On the Jobe Development, Toyota Motor Corporation, Toyota Institute.

Dandori (Action planning/Project Management), Toyota Motor Corporation, Toyota Institute.

Building Concensus through Reports, Toyota Motor Asia Pacific Engineering and Manufacturing Co.,
Ltd., Toyota Institute Asia Pacific.

Fishman, Charles. No Satisfaction at Toyota. Fast Company Magazine, Issue 111, Dec 2006

Jacks, Ruth. Six-Sigma: PDCA on Steroids? Six Sigma Journal

Liker, Jeffery K. The Toyota Way. New York: McGraw-Hill 2004

Masaaki, Imai. KAIZEN: The Key to Japan’s Competitive Success. New York: McGraw-Hill, 1986.

Wikipedia, Edward Deming

PLAN DO CHECK ACT

Working process with continuos improvement

Version 2.0 (January 2016)

First Published: July 2009

Second Edition: August 2014
Third Edition: January 2016

Published by Toyota Institute Asia Pacific,

Toyota Motor Asia Pacific Engineering and Manufacturing Co., Ltd.

Copyright © Toyota Institute Asia Pacific, Toyota Motor Asia Pacific Engineering and Manufacturing Co., Ltd.
This document may not be reproduced in any form.

49
50
Cover
PLAN DO CHECK ACT
Business approach with continuous improvement