Development of a lean assessment tool and measuring the effect of culture from employee perception

Abstract

PurposeFew companies have had the success that Toyota Motor Corporation has experienced over the past 70 years. Many give credit for Toyota's success to the company's famous Toyota Production System. Companies outside of Toyota have tried to implement versions of Toyota's system as Lean production; however, few companies have experienced the success of Toyota, and none have experienced Toyota's sustained success. In 2001, Toyota released a publication entitled The Toyota Way 2001 as a set of globalized standards of the culture that drives the success of the Toyota Production System.Design/methodology/approachThis research examines the effect of the Toyota Way on the implementation of Lean production outside of Toyota. A survey was developed and a study was performed on a sample of 349 participants with Lean experience. Structural equation modeling was used to test the relationship between the Toyota Way culture, Lean production, and achieving the desired Lean production system results.FindingsThe results of this research discovered that the existence of the Toyota Way culture has a significant and positive mediating effect on a Lean production system achieving the desired Lean results.Originality/valueThis research created a validated survey instrument that can be used to evaluate and understand the status of a Lean implementation initiative based upon employee perception. The results of this study support assertions made by Lean practitioners and previous research stating that culture affects the level of success of Lean production system implementation. While this may not seem like breaking news, prior to this study no statistically validated research supporting such an assertion could be found. Furthermore, this research defines culture very specifically as the Toyota Way culture as outlined in The Toyota Way 2001.

An improved lean assessment based on employee perception

“…The first generation of this instrument was created by Shetty (2011) and was based upon the five principles of lean thinking. The second generation of this employee perception survey was created by Loyd and was validated against the TPS-TW model introducing culture to the equation but used subjective measures of observation (Loyd et al , 2020). This third generation of the instrument has also been validated and has introduced quantitative measures of performance as an objective method of validation.…”

“…Improving and validating the TPS-TW model (Figure 1) to assess the degree of lean adoption through employee perception utilizing quantitative measures of performance was a primary goal of this research. The TPS-TW model was developed based on the three pillars of the TPS, namely, standardization and stability, just-in-time and built-in quality; the two elements of the TW culture, continuous improvement and respect for people; and a performance construct for validation (Loyd et al , 2020). The TPS-TW model suggests that culture holds, and works together with, the three pillars of the TPS to achieve the desired results of a lean implementation (Loyd et al , 2020).…”

“…This research is an improvement of Loyd et al (2020) study by first investigating the use of quantitative metrics under the performance construct. A panel of eight subject matter experts (SMEs), each having more than 10 years of lean experience in the auto industry, provided guidance.…”

“…Based on Shetty's assessment approach, Loyd et al (2020) developed an assessment tool to empirically measure lean adoption from employee perception using a Toyota Production System-Toyota Way model (TPS-TW). Loyd's tool measures four dimensions: standardization and stability, just-in-time, built-in quality and the TW culture.…”

Product-service system leanness assessment model: study of a UK manufacturing company

“…Finally, all managers at all levels of the company should belief that lean is the right way for the company to improve its capabilities. Senior management should demonstrate full commitment to lean philosophy and provide all the required resources, budget, and investment (Loyd et al, 2020).…”