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Topic Title: Toyota Daily Management KPIs
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Created On: 03/26/2010 11:18 AM
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03/26/2010 01:13 PM
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AlexJepson
Alex Jepson



I am aware that Toyota uses a visual display board as part of its daily management system. As part of the board, they define KPIs, Sub KPIs, and Process KPIs for each of the management categories (Safety, Quality, Productivity, and Cost). What I do not understand clearly is the distinction between these 3 levels of KPIs. Will somone with experience in Toyota's daily management system please clarify the three types of KPIs and give some examples of each across the management categories? Also, how do these KPIs link to more local visual controls? Thanks.
03/26/2010 02:09 PM
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duecesevenOS
Kris Hallan



I don't have Toyota experience but I am interested in this topic and I want to say what I think this might pertain to. Someone else will chime in with the real answer I am sure.

I would guess that a "KPI" is the overall metric at a Tier III value stream manager level. At that level, the Quality metric might be overall Cost of Quality, overall First Pass Yield, or external defect rate to customers. The VS Manager and his team are a long way from the floor however and these KPI's are generally a little too much in the rear view mirror.

So they have to play catch ball about their KPI and ask the Tier II teams how each of their teams are going to support the overall KPI. So a Tier II team might say that they are going to support the goals of the external defect rate by setting sub-KPI's of an internal defect rate or maintain a capability above x.x in SPC data. They throw back the ball with what they think will meet the companies objectives and the Tier III leadership team has to decide if it will meet the overall strategic objectives.

The sub-KPI's are STILL too far from the floor however and they are probably only going to be measured once per day or once per shift. So Tier II has to play catch ball with their team leads and individual team-members to decide how they are going to support the sub-KPI's. The team will say that they are going to support the sub-KPI of internal defect rate by tracking their ability to follow standard work or the variation in their machines, etc. These are the individual process KPI's.

This is just my somewhat educated guess. I could be wrong but I might bet a cup of coffee that I am right. :)


If you are not familiar with the tiers. Tier one is typically 4 associates to 1 team lead (@ Toyota anyway). Tier II is 4+ team leads to one supervisor. Tier III is the supervisors and the value stream manager. Each of these groups get supported by different levels of support groups.
03/31/2011 09:54 AM
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254676
Mrngorickets Mrngorickets



Hi,

Thanks very much for this comment. It help me to think about my ideals.

Tks again and pls keep posting.
03/31/2011 03:48 PM
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Boeing_Lean
Ken Hunt



I'm thinking you might be talking about Oobeya. You can learn more if you Google QV System.
04/05/2011 09:59 AM
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254676
Mrngorickets Mrngorickets



If you want to get more materials that related to this topic, you can visit: KPI

Best regards.
02/29/2012 03:59 PM
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272081
thu 062012



Hi,

Good ideal, pls try to keep posting. I like this topic very much and I will digged this one. Tks again.
02/29/2012 03:59 PM
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272081
thu 062012



Hi

I found that a member asked same question in this forum some months ago.

Pls use search box to find this questions with comments
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