RΣ-THINKING LEAN #2

Insights Natacha JUSHKO

In this article, we delve into Toyota’s unique culture through the eyes of Virassack Sisounol, a former employee from the company’s European headquarters. His journey sheds light on how Toyota deals with tensions and integrates learning into the core of its corporate culture: creating a compelling narrative of commitment, problem-solving, management tools, and the essence of corporate culture itself..

Virassack didn’t just land a job at Toyota. He worked hard before obtaining his role there. After completing his studies at the IAE in Grenoble, he went on to specialize in international business in Scotland. That’s where he learned the skills and knowledge that helped him later join one of the world’s leading car manufacturers. Virassack’s career took him to different corners of the world with no fixed trajectory towards Toyota in mind. He started out in Guyana and Germany, where he gained valuable experience and insights, eventually landing at Toyota Motor Europe in 2001. Here he discovered a whole new way of working under Japanese management: the Toyota Production System (TPS), a unique management philosophy where each process produces only what is needed for the next process in a continuous flow, with fail-safes in place to preventing defective products from being produced. The lean manufacturing approach (also known as the just-in-time system), opened Virassack’s eyes to a new way of making cars. He was fascinated by how this method reduced waste and increased efficiency. He was ready for a transformative adventure that would define his career.

Professional development: the Heart of Toyota

Upon joining Toyota, Virassack quickly realized that learning would become the cornerstone of his professional life because his early weeks were a blend of theoretical courses and hands-on experiences within the Toyota Academy. He felt like a student again as he was asked to create various PDCA (Plan-Do-Check-Act) and A3 documents. With these tools he could engage and align the organization’s various stakeholders and streamline communication. Looking back, Virassack acknowledges that this period contributed to his holistic understanding of business processes. Career development at Toyota is tied to completing the rigorous Toyota Business Practice (TBP), a methodology for identifying and solving problems. Virassack emphasizes that TBP evaluations focused on justifying solutions and implementing them effectively, ensuring sustainability and effective communication. He had to present these evaluations to a diverse panel of colleagues from different departments. He had to talk to them in a way that both the experts and the newbies could understand. And they were not shy to challenge his ideas. This was how Toyota promoted its people, based on how well they did in the past and how much they could grow in the future.

Long-Term Perspective and Commitment

Upon his arrival in 2001, Virassack was invited to participate in the finalization of the company’s Long-Term Plan (LTP). This 10-year industrial and commercial planning project includes a hybrid lineup model for all Toyota and Lexus lines. At that time, the Prius was the only hybrid model in the lineup. The LTP seemed a bit abstract at first, but he quickly realized that at Toyota these plans were not hypotheses but real roadmaps. He moved to the supply chain management department where he took on his new responsibilities with diligence. After a few weeks, he got a chance to have a personal lunch with the then Vice President of Toyota Motor Europe: Mr. Tadashi Arashima.

“After breaking the ice, he questioned me. He asked me if I knew why my role was important, why I was there, and how I was going to contribute to the organization.”

Virassack replied that he handled data (recording the maintenance and service activities performed on a Toyota vehicle) to create schedule files with precision, avoiding any errors. Tadashi Arashima proposed that Virassack’s role wasn’t as simple … The VP explained that planning was a strategic activity at Toyota and that Virassack’s role was not just to fill out Excel spreadsheets, but that every number introduced was an important contribution, a promise to their clients. This exchange made Virassack realize that he played an indispensable role in the organization. That his estimates would contribute to meaningful decision-making. Virassack came to fully grasp the magnitude of his responsibility, a realization that would come to light following one particular mistake …

The Collective Ownership of Challenges and Solutions

Virassack’s role as a planner entailed maintaining a balance between supply and demand, a complex task. However, he encountered a significant challenge when he failed to anticipate a change in rims that had been made related to a vehicle’s life cycle. This oversight led to a staggering 11,000 vehicles rolling out of the factories with the wrong rims! The absence of foresight hampered the prompt availability of replacement parts. Summoned by his superiors, Virassack anticipated that his career at Toyota was over. However, to his astonishment, instead of fixating on assigning blame, his superiors displayed a pedagogical approach to comprehend the root causes of the problem and teamed up with him to find solutions. Virassack found himself explaining the steps taken to coordinate retrofits and proposing strategies to prevent similar errors in the future. This pedagogical approach left him surprised, as the meeting focus remained on problem-solving rather than dwelling on the mistake that he had made. The aftermath of this incident resulted in the creation of a new standard to prevent such errors happening again. The role of management was therefore not to improve tasks and operations, but to help employees do so through experimentation and learning, each at their own level.

While, at first glance, standardizing processes might seem to limit the empowerment of teams, it actually enables them to work more autonomously. By following a common standard, everyone can see the gap between current and desired work processes. This encourages teams to share the responsibility for identifying and resolving any deviations from the standard. This differs from the conventional way of working, where individuals are often isolated and blamed for their successes or failures. Toyota’s standardization promotes a culture of collective problem-solving and learning.

Paving The Way for Innovative Tools and Visual Management

When Virassack began his journey, within the supply chain, each department entered data into tables that were discussed during monthly meetings between all departments. The goal of those meetings was to consolidate these data tables into a comprehensive sales and production dashboard. However, as the number of participating countries multiplied, these meetings grew increasingly lengthy and intricate. Each department strove to assert its viewpoint, sometimes trying to impose its own figures. Consequently, a decision was reached to adopt a visual approach to resolve tensions and establish shared indicators.

“At Toyota, I learned that visual communication is one of the most effective tools due to its universality. Personally, I found it easier to grasp the constraints of various stakeholders when I could see them, which greatly facilitated decision-making.”

Visually presenting different perspectives allows us to transcend individual evaluations. The visual management and TPS tool are designed to enhance information sharing and decision-making by providing a framework for problem-solving. After leaving Toyota, Virassack became aware of the “toolbox” approach prevalent in the Lean industry. Over 10 years at Toyota, despite being trained in a multitude of tools with exotic Japanese names, what he grasped onto the most was that ultimately corporate culture determines the utilization and scope of these tools.

“I discovered the significance of certifications after departing from Toyota. I was even specifically asked to use a Japanese term to describe a tool or methodology to provide reassurance.”

“For Virassack, corporate culture is essential. Irrespective of titles or certifications, we should emphasize processes and dynamics over tools and practices. He firmly believes that judiciously employing Lean Management tools, either in whole or in part, is a genuine asset for cultivating a resilient organization. An organization capable of assimilating diverse managerial tensions and confronting the growing complexity of any challenges encountered. He has come to realize through experience that the capacity to comprehend and manage these tensions truly develops when we engage with real-world situations: doing, guiding (coaching), fostering growth in others (coaching/mentoring), continuous improvement (PDCA), and above all, teamwork (motivation) – all within a cultural context unique to the organization.

He concludes our chat with a vivid analogy: using Lean tools without thoughtful consideration is like crushing a hazelnut with a Caterpillar concrete mixer … We could make things worse if we choose the wrong method. Hence, it is imperative to evaluate the appropriateness of the tools within one’s specific corporate context to ensure their added value, which lies at the core of Toyota’s approach!