From the Archives of a Common Sensei volume 30: ENGINEERING CHANGE PROCEDURE FOR NON-INTERCHANGEABLE PARTS (Imported Purchased Parts)

This volume of From the Archives of a Common Sensei is a continuation of volumes 28 and 29 and discusses the Engineering Change Procedure for Non-Interchangeable Imported Parts. This volume discussion will close out our three-volume series (28, 29 and 30) on the topic of engineering change. As referenced in Blog volume 28, during the early days (1990’s) of Toyota Industrial Equipment (TIEM) in the US, we had to give consideration to many different processes as we developed the manufacturing operations. In my previous blog postings, I have tried to describe in (short form) how we went about many of these operational developments.

In this volume 30, I present the process for imported but non-interchangeable parts. As in volumes 28 and 29, the handwritten original examples are too big to display at the same time, so I split this engineering change process into three volumes to simplify the overall process of engineering change. Some of you might be more concerned with an engineering change procedure for domestic parts and some might be more concerned with imported parts. The three articles in Blogs 28, 29, and 30 are presented here to potentially give you ideas for your organization.

In the example supplied here (Vol. 30) for Imported Non-Interchangeable Purchased Parts, it is again noted that during those early days of the TIEM startup (1989+) the engineering was done by the TIEM parent company (TAL) and delivered to the TIEM operation (Domestic Company) in Columbus, Indiana. From that point, the process example tracks through the Parental Company actions, Domestic Company Engineering Section, Production Section, and the Material Control Section, and Accounting. The procedure includes steps for checking inventories, Kanban handling, change date determination from old parts to new parts, receiving of new parts, and how to manage the associated Kanban’s. As stated in previous blog volumes, in the mid-1990’s a substantial portion of product engineering was a joint effort by the local facility and the parent company in Japan. In previous blogs, I have also explained how we encouraged our customers, plant associates, and managers to work with Engineering to create improvements in quality, cost, convenience, service needs, etc. Again, this example, and the previous examples (Vol. 28 and 29), are intended only as examples from which you may be able to gain some ideas.

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As an illustration of an assembly parts staging methodology, the attached drawing (rough as it is) was one that we used during the start of Toyota’s US Lift Truck manufacturing operation in the early 90’s.

The basic philosophy was to:
1) Establish a method to receive and distribute material in the most cost efficient, timely, and orderly manner
2) Provide a base method/procedure on which improvement will take place

For further explanation, below are the different “Part Types” used to identify how various parts were to be used.  Keep in mind that at the start of the US lift truck operation, several key parts were sourced through the parent company (TAL) in Japan while efforts were started to shift most of the component sourcing to the US.

Japan Supplied Parts:

Kanban – small, inexpensive parts ordered by Kanban

Set Parts – large, more expensive parts designated for specific order (i.e., engine, mast, muffler, drive axle, etc.)

Replacement – replacements for damaged parts

Local Parts:

Supplied in the US (tires, batteries, counterweights)

Keep in mind that this example is from the very initial practices used during start-up of the production efforts.  I have displayed it in this blog as an example of how beginnings take place.  By referring to “From the Archives of a Common Sensei Volume 21” you will learn about the sequencing of product production.  In this volume, we discuss how materials can be staged and prepared for sequentially ordering for sub-assemblies and the main assembly line.  For clarification, the US Toyota Lift Truck assembly process has made multiple upgrades and has built on the original “basic philosophy” multiple times during the last 31 years.  Today it is an example of a highly sophisticated, efficient, and effective processing organization built on multiple improvements using the Toyota Production System principles and behaviors.  This operation has expanded multiple times and today is the leading producer of lift trucks.  Click on the URL to get a better understanding as to how far the Toyota Lift Truck operation has matured over the last 30 years.

By looking back over our previous volumes of From the Archives of a Common Sensei where we try to demonstrate the intricate path of acceptance and use of Toyota methods in the US, it is astounding how much progress has been made and the kaizen principle of continuous improvement continues the path toward uncompromised excellence.  It has been a long and meaningful journey for many of us who have had similar experiences!  Toyota is perhaps the leader in the advancement of TPS and Lean, but there are other organizations where advances have also been made as well.  It’s my experience of working with approximately 300 organizations over my career, the ones that succeed in TPS (Lean) advances require continuity of management that is willing to get involved and lead by the same principles espoused by Toyota.

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