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

1. 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 P’s) • The Toyota Way has been called “a system (process) designed to provide the tools forpeople 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 the“Thinking” Production System.

2. About the Presenter • Thomas W. Hartmann, P.E. • takes a poor picture • Contact: twhartmann@gmail.com cell phone (970)213-3656 • 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 • Staff utilization fell from >75% to 51% (Reflection: The paradox of productivity vs. utilization) • Less re-work and RFI’s (freeing up staff for more standard work…) • Improved profitability (Reflection: Due to increased efficiency of delivery with less work) • Staff Morale increased (due to reduction of re-work and increasing work quality) • Created “standard work” drawing templates for improved productivity using B.I.M.

3. 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 (Elmer’s, middle school) • Contact adhesive and super glue (high school) • Epoxies and Metal fastenings (college, engineering curriculum) • Master’s 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.

4. 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.

5. The Toyota Way is:A new Way of Thinking • The 14 principles of The Toyota Way are organized (visually) into four sections (The 4P’s): • 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:

6. 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?

7. 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 P’s 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?

8. 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?

9. 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?

10. 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 company’s 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?

11. 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!

12. 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 RFI’s. • 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 fabricator’s 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).

13. 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.

14. 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 RFI’s) • Unused employee creativity (e.g. “We’ve always used this standard, though it has problems”)

15. 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?

16. 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).

17. 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)

18. Principle 6 – Standardize (part of 5S’s) •  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 employeeto aid in the growth and improvement of the company.

19. 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?

20. The 5S’s: •  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

21. Expanding the 5S’s:Example 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?)

22. Expanding The 5S’s:  Shine: Keep the area clean  Standardize: Create rules and standard operating procedures  Sustain: Maintain the system and continue to improve it

23. Principle 8 Reliable Technology • Use only reliable, thoroughly testedtechnology that serves your peopleand 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?

24. 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.

25. Principle 9 -- Leadership •  Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.

26. 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.

27. 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.

28. Section IV:Continuous Improvement • Continuously Solving Root Problems Drives Organizational Learning • Principle 12: Go and See the Problem • Principle 13: Decision Making by Concensus • Principle 14: Reflection

29. 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:

30. 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.

31. 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

32. 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:

33. 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

34. 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 can’t engineering companies standardize? • Vendors/Tradition/Always done it that way • Why maintain the tradition? • “Too busy to fix” • Why to busy? • “I’m Busy Answering RFI’s 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-1-24+6(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?

35. 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 company’s 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.[

36. 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.

37. 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.productivitypress.com/productdetails.cfm?SKU=3004. •  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.pdf. •  Liker, J (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. McGraw-Hill. ISBN 0071392319. http://books.google.ca/books?id=9v_sxqERqvMC&dq=The+Toyota+Way&psp=1. •  Liker, J; Meier, D. (2005). The Toyota Way Fieldbook: A Practical Guide for Implementing Toyota's 4Ps. McGraw-Hill. ISBN 0071448934.

38. External Resources • The Toyota Way - Official Site • Retrieved from http://en.wikipedia.org/wiki/The_Toyota_Way