Operations Improvement Plan Implementation The potential data collection tools and techniques I can utilized is the Demings

PDCA cycle, A3 Thinking that is a reporting system, designed as part of the Toyota Production System, that can be used for decision making, problem solving and process redesign. A3 thinking (also known as A3 planning) is a tool developed at Toyota which takes Demings PDCA (Plan-Do-Check-Act) improvement cycle and articulates it as a targeted problem-solving technique. All the relevant information required to investigate, solve and document the problem is captured on a single sheet of A3 paper, enabling the story of the problem to be told clearly, concisely and in a fully transferable way. A lot of the power of the A3 report is its simplicity, but this does not mean it is a lightweight tool. Used properly, it is an incredibly effective means of not only solving a problem, but finding its root cause, documenting the resolution, transferring the knowledge and ensuring the resolution stays in place. The content of the A3 report will answer questions relevant to the problem, such as:
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What is it we are trying to do? What is the current state? What is the root cause? What are the potential difficulties that need to be overcome? What solutions are there to these difficulties? What do we have to do to get these solutions implemented? What measures can we put in place to ensure the solutions work?

The A3 tool is divided into sections where the information to answer these questions is collated. Crucially, every person who has a stake in the problem is required to input to the report in order to reach a collaborative solution. This method drives the team members involved to find the root cause of the problem, thus making it much more unlikely that the problem will be repeated. In addition, getting the input of everyone involved makes the solution much easier to implement and be taken onboard. There are seven key elements in the production that are as follow: 1. Logical thinking process promotes thoroughness, address problems, create numerous solutions, account for the effects of implementation and incorporate contingencies. 2. Objectivity get everyone involved to give their input, eliminate blame, and use quantitative data. 3. Results process understand the problem as well as the bigger picture, achieve consistent, repeatable results. 4. Synthesis, distillation visualization create the full story whilst being concise and coherent within standardized practices. 5. Alignment consider horizontal and vertical relationships, as well as future ones. 6. Coherence within and consistency across logical flow, related to goals and values. 7. Think about the organization as a system and share the results. A3 Planning can use as a problem-solving tool, strategy planning, new system proposals, problem statement, measurement strategy and process redesign of the flowchart. The selected data collection tool that works for me is completion of the form how to solve the issues and problems with the collaboration of all the member this tool works best because you

will get input from all the areas of work and point of views. The prototype tool that I propose is as follow: y Solved it! Completion of the form Blank forms will be available in general areas How to complete instruction will be available next to the blank forms Once completed forms can be dropped in the drop off box Collection of forms Person reporting must take some action Completed forms will be collected every alternative days from the drop off box Facts & Figures: If no actions were taken Investigate what is the current situation. If actions were taken Contact team / supervisor and gather any additional information Evaluation: Data Requirement Stakeholder requirements Defining success factors Priority number Cost Benefit Business case All achieved using one representative from each stakeholder function / departments forming a team What Next Cost Benefit Alternatives & Rationale Each suggestion gets a unique number and is then tracked using an XL spreadsheet. Sponsorship High priority & Low priority & Long term project Short term project Site Lead Sponsorship Functional Lead Sponsorship Weekly internal team meeting Regular internal team meeting Monthly Status reporting Monthly Status reporting Cost & FTE resource key FTE resource key Action Plan SMART goals. Milestones Progress update and Priority re-evaluation. Transition & Improvement Representative from each stakeholder / function to flag any issues / risks Team to monitor impact Celebrations & Lessons learned Improved processes & Cost savings

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Toyotas Process Improvement Implementation believes that the most important part of our manufacturing process is the ideas that come from our workers. Toyota in 2002, received over 2 million process improvement ideas. Although some may have been small ideas, add them all up and you can see the dynamics. Millions and millions of dollars are being saved every year by tapping into the ingenuity and motivation for process improvement that exists in every one of their employees. In pure size, Toyota blew past the competition in the third quarter of 2003, overtaking Ford, assuming the #2 position among the worlds automakers. Toyotas revenue in 2003 was $132B versus GM at $184B. However, Toyotas profits dwarfed GM earning $13.6B compared to GM at $2.8B. Toyota is commitment to ongoing process improvement. Obviously, process improvement is no newcomer to the scene. Most companies already have some sort of process improvement program in place. The perplexing question is, why do some companies like Toyota manage to do process improvement so well while others do it so poorly that it ends up costing rather than saving them money. Toyota continuous process improvement is defined as the endeavor to satisfy their customer expectations, reduce costs and increase productivity by improving processes via the reduction of variation, complexity and cycle time.Doing it well, however, requires understanding and believing in several foundational truths: Teams outperform individuals. For complex problems that require cross-functional expertise, teams will always outperform individuals working alone. A strong customer-supplier chain is critical. Employees must understand their personal product and the needs of their immediate customers, both internal and external. People want to improve. Most employees want to improve their processes so they can be the best they can be. It is an

inherent human trait to want things better. Toyotas employees run your company. Every employee owns and operates a sub-process in the very large process called a business. Toyotas employees run the company because they control all the processes that make it a business The effective implementation of continuous improvement requires the involvement of everyone in the organization. Through a team-based environment, employees can be empowered and have ownership in improving the processes they perform on a daily basis. An approach that demystifies continuous process improvement implementation can be found in five essential steps: 1. Establish and mobilize a steering team. The first step in any significant change effort is to bring together a knowledgeable group of people to address the basic implementation issues and establish a guiding direction. The PI steering team should be cross-functional, with members that understand the organization well, have a strong desire to participate, and see the team as critical to organizational success. Once the guiding process improvement plan is developed, the steering team must present it to the senior management team. Without top managements understanding and approval, no plan will have the support it needs to succeed. Once approved, the role of the steering team is literally to steer implementation and generate course corrections. 2. Generate overall awareness. When organizations undergo massive change, the rumor mill kicks into high gear, with most of the rumors embodying a fear of the dark. To stop the rumor mill in its tracks, create a Process Improvement Implementation Awareness Program that tells employees what will happen in a step-by-step manner. Make sure the program answers the question on every employees mind: Whats in it for me? Finally, create excitement by explaining the benefits of the plan, such as making work flow easier, improving bonuses (due to increased productivity), or having a greater say in how a process is run. 3. Implement a team-based culture. Team-based process improvement requires natural work teams and project teams. Natural work teams, which already exist at all levels of the organization (i.e., engineering team, manufacturing team, HR team); represent a team approach to managing the business at all levels. Their main task is to identify the processes they own, perform those processes to the best of their ability, and work to improve them. Project teams are brought together to address specific opportunities to improve a process or solve a problem, especially those that cross department boundaries and/or require multi-functional expertise. Project teams are not permanent, but can work well to break down walls or silos within the organization. The first project teams established should be selected to yield the highest returns on investment. 4. Charter and train natural work teams and initial project teams. Chartering a natural work team or project team involves clearly defining their purpose and function so that nothing can be left to the imagination. It also requires providing the correct tools and training, which consists of learning how to examine the process for improvement opportunities or problems and solving the problems in a manner that eliminates the root causes. Although often overlooked, chartering and training are critical foundational steps in establishing a productive team. 5. Implement the game plan. Implementation depends on the game plan itself, and includes the development of internal resources and the phasing out of external resources, such as consultants. The steering team and upper management must be intimately involved during this step, and should provide ongoing positive reinforcement to ensure success. Keep in mind that you never finish implementing the game plan, since this is all about continuous process improvement. Implementation is a cultural journey where the organization moves from its current state to a dynamic future state grounded in ever-continuing improvement.

Some companies adopt an improvement approach that relies on three or four home runs generated by a few statistical specialists. This philosophy will typically generate a solid but limited return. In contrast, the PI principles addressed in this article are based on the premise that more heads are better than fewer. In PI, everyone needs to get involved, including the specialists. Home runs are nice, but in order to win the PI game the organization needs singles, doubles and triples, so that the little things people do add up in a big way. The true power of process improvement is synergy in action. When everyone pulls at the same end of the rope and the entire culture focuses on continuous process improvement, it creates an environment where ordinary people generate extraordinary results, winning together as one team. Toyota Production System identifies four simple rules that they claim to be at the heart of the Toyota Production System, including its planning and problem solving methods. These rules guide the design, operation, and improvement of every activity, connection, and pathway for every product and service. The rules are as follows:
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Rule 1: All work shall be highly specified as to content, sequence, timing, and outcome. Rule 2: Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses. Rule 3: The pathway for every product and service must be simple and direct. Rule 4: Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization.

Toyota needed to improve their globalizations issues but with globalization comes an inevitable tension between global and local forces. Benefits of operating in a more globally centralized fashion are greater economies of scale, tighter operational control, and greater consistency. These are in direct opposition to the benefits of operating in a more locally-driven, decentralized fashion, which generates better adaptation to local markets, more flexibility, and quicker responsiveness to quality and safety problems. So Toyota, like all of its major competitors, must choose how best to balance global and local imperatives and make trade-offs in doing so. The results have enhanced Toyotas opportunities to combat treats of the web, media and society in general. The first recommendation I can make is related to the identification of Toyotas customer segments Toyota has appeared to use the model of its cars to create customer segment. It is recommended that Toyota identify clear consumer groups, this will significantly improve their marketing, customer service, and loyalty. This approach considers designing their image from the outside in approach where the key requirements of the customer are considered. Toyota will be better able to classify each groups needs and wants. If customer groups are clearly categorized then it makes it easier to design a Marketing strategy to engage and energize them. Toyotas Customer Segmentation consists on Customer Groups Needs & Wants like new cars models available, prices, pictures videos, reviews, and warranty; Approved Used Models available, where can they buy, reviews, warranty; Corporate Sales Cars available, options, tax bands of cars, pricing, CSR policies; Finance & Insurance Packages available; and Ownership & Servicing Where, cost, other relevant information Detailed customer segmentation will develop Customer Profiles, Knowledge and Understanding.

Toyota shall be able to identify its most valuable and growable customers. I can recommend that Toyota should seek to enhance its commitment. If Toyota recruit third party it will help create and spread positive messages associated with the Toyota brand. The bloggers could reiterate Toyotas brand promise they could increase their effectiveness. Relation to Interaction, Intimacy and Influence. The promotion of the safety of Toyota cars such as government agencies, trade magazines and websites like Car & Driver and Automotive and public figures. If Toyota can earn this approval it will provide extra weight to the credibility of the public relations program. To improve its involvement with social media Toyota must look to comment more on customers concerns and needs. At present customers are engaging with each other on Toyota channel such as Facebook, Twitter and YouTube. Toyota may post the initial update and allow customers to discuss the update. Toyota shall energize its customers into a deep discussion Toyota mist view social media as a two way conversation. Increasing involvement permits Toyota to better managed and measure Community Vitality from Social Media Balanced Scorecard. In particularly Toyota would be better positioned to measure: Sense of trust, Support from other members, Opportunity to contribute, Socialization between members and Sense of respect. I critically tried to evaluate the opportunities and threats presented by the social media to the organization. Toyotas most prevailing threat has been a direct result of the mass worldwide recall of it cars. This threat endangers consumers perceptions of the brand and their purchase intentions. Toyotas failure to tackle this threat will damage the companys ability to create sustainable long term growth. Subsequently Toyotas main opportunity is leveraging the positive brand associations that it has built up over thirty years of business and utilizing the large network of brand advocates that it has at its reach. These brand advocates are engaged in social networking activities are can be easily reached by Toyota. I also evaluated the progress made by Toyota in responding to these opportunities and threats. Firstly, I investigated Toyotas pre recall social media strategy and concluded that although Toyota was involved across the different social channels. Toyota did not spend much time providing rich content to invigorate customers. Toyotas interaction was almost non-existent and did not ignite discussion amongst the target audience. The intimacy of the campaign was severely lacking and appeared to create brand aversion. Surprisingly the social media campaign did have influence, with Toyota successfully creating a negative groundswell regarding the competition. Moreover, this essay analyzed Toyotas post recall social media strategy and concluded that in a crisis, consumers need honest answers and they need them promptly. Toyota initially hesitated in appeasing the anxieties of its customers by not utilizing social media to answer questions. Transparent engagements in the online communities, where your customers already live, provide a credible and direct channel for the answers they need. Toyota has put the brakes on the potential brand damage by creating a transparent marketing campaign underpinned by social media channels such as Facebook, Twitter and YouTube. The strategic recommendation I can made is that Toyota can create sustainable long term growth by developing its customer profile groups. This strategy will allow Toyota to clearly identify its customers and tailor a more specified Marketing strategy. Furthermore, this will allow Toyota to gain a deeper insight f its customers and recognize the most appropriate methods to engage them. I also strongly recommend that Toyota utilizes social media to help tackle the threats associated with the recall. If Toyota recruit third- party would help to spread positive messages regarding its brand promise they could increase their effectiveness in relation to Interaction, Intimacy and Influence. Toyota is a company that

has utilized social media to engage with it customers and had varying success. I think is important that I highlight how important the social media paradigm is when looking to communicate with customers regarding a crisis. High levels of targeted engagement can help to maintain the trust that Toyotas customers have in the brand and ensure future sustainable growth.

Resources: Greto, M., Schotter, A., & Teagarden, M. (2010). Toyota: The accelerator crisis. Thunderbird School of Global Management. Russell, R. S., & Taylor, B. W. (2011). Operations management: Creating value along the supply chain (7th ed.). Hoboken, NJ: John Wiley & Sons. ISBN: 9780470525906.