I was personally involved in helping lead the implementation of the Toyota Production System at NUMMI – the joint venture between Toyota and General Motors –. Parker explains a management approach that simplifies the treasures of the Toyota Production System and management philosophy, while offering a fresh look at what real business is all about: the customer. Parker introduces readers to a management approach – Value-Centered Management – that succeeds in translating the successes of the Toyota Production System and management philosophy in a way that can be incorporated into any industry or business environment.
Michael quickly gained a solid understanding of Toyota's production system through the many challenging assignments he was given. All the people who supported my learning of the Toyota Production System directly from Toyota Motor Corporation (TMC) in Japan: Kurt Onoue for being such a great teacher of the Toyota Production System and taking the time to impart so much knowledge to me. All the team members and colleagues I worked with at NUMMI, TLSI, Ryder, TMS, TMMNA and TMC throughout the US, Canada and Japan.
I appreciate your honesty and openness, which allowed me to understand many great truths of the publishing world. Elealeh Smith for coordinating all the artwork for the book and for being my right hand on all the Value-Based Management and Lean Management methodologies I've taught over the years.
INTRODUCTION
Well, tomorrow we have a meeting with my team to do assignments," he began, "and-". Or you'll end up with all your efforts in the trash," he said, smiling.
EPILOGUE
We've tried many management fads here over the years, most of which have been largely ineffective. As the CEO spoke, John kept his eyes on his face, afraid to meet Kaye's gaze. But when he finally dared to look her way, he found a strange look of relief on her face.
I knew you were climbing when we met in your office a few weeks ago. But nothing seemed real until the day the movers hung his blue painting on his new office wall. There is so much more to learn and I have so many questions: how do I hire the right team to implement value-centered management, create a value-centered strategy, define leadership levels from a value-centered perspective , apply the methodology in different departmental environments, use the tools that I have learned in more detail, teach the team members this management approach in a standard way that is easy to understand, and so on.
I don't know where to start. It was an awkward feeling, standing on the edge of something new and unknown. As he moved forward to line up the image, he heard the buzz of a fax machine; and he noticed that a message was coming. It wasn't that long ago that he'd been here before, on the brink of something unknown, toying with tradition.
Who said there isn't a better way to do things?” The words had motivated him to start his first experiment with Value-Oriented Management.
VALUE-CENTERED MANAGEMENT
GLOSSARY
Business Support Costs Costs associated with activities that indirectly support the company's ability to serve customers. Cost Barriers Any cost associated with doing business is considered a barrier to be reduced or removed in a value-focused business. Cost of goods sold Costs associated with the purchase of inventory that will be sold for a profit.
The reduction of all these costs is essential to maximizing the profits of the value-oriented company. Cultural Improvement Systems A system that allows corporate culture to be monitored by team members trained to see and implement improvements. Cultural Ingredients Key ingredients in a value-oriented business: cultural improvement systems, leadership development, team member development, and customer service.
Customer Values Committee A committee of dedicated customers is used to gather information and feedback on products and services currently offered and/or future products, services or strategies being considered by the company. Customer Value An alignment chart A tool for matching customer-identified value points to specific processes within the value stream or operation to seek improvement from the customer's perspective. Direct Service Team Service teams directly related to the provision of the products and/or services for which the business is established.
Flow A sequence of activities or processes required to deliver a product or service to the customer. Heijunka A Japanese term meaning "level scheduling" or "smoothing" to ensure a balanced workload and balanced production of goods or the provision of services to the customer. Human Resources Service Team Service team responsible for working with value stream leadership to facilitate the activities around how people enter the company, work within the company and leave the company.
Indirect Service Teams Service Teams that indirectly serve the customer by providing support services to Direct Service Teams and the company as a whole. There are seven main indirect service teams in the Value-Centered Enterprise: value management, partnership management, accounting, human resources, information and technology, planning and analysis, and the kaizen service team. Service Team Information Technology Service Team responsible for managing the company's ability to move, locate and store the information needed to ensure the company fulfills its mission of sustainable value creation and delivery.
