Dealing with Defects
Akinori Hyodo, former Factory Manager, Toyota HiAce Factory | #AskSensei Event 24 Summary
Following on from the two previous #AskSensei sessions on quality, Akinori Hyodo discusses how we should deal with defects when they are detected. Hyodo Sensei stresses the importance of not only acting immediately and identifying the true cause of the issues but also having the right structure in place in dealing with the problems.
How to Deal with Defects
In our last two #AskSensei webinars, we began our deep dive into the concept of quality. We started by exploring Toyota’s approach to quality in general, and in our most recent session, we focused on the role of inspections within quality. Today, we’ll be addressing how to effectively manage defects.
The first thing I want you to consider is the impact of passing a defect down to our customers. Doing so can cause significant inconvenience and disruption for them. Therefore, it’s crucial that we respond as swiftly as possible when a defect is identified. The faster we act, the better the outcome – every minute or even second counts. This isn’t something that can be postponed or set aside; it demands immediate attention. It’s essential to take prompt action to minimize any potential negative effects.
However, what I often observe in companies overseas is a tendency to delay addressing defects. Instead of responding immediately, they set a deadline by which the issues surrounding the defect must be resolved. Many of these companies also follow a pre-defined procedure, working within the constraints of pre-determined timelines. This is a common approach I’ve seen internationally.
But let me ask you: Do you think your customers are satisfied with this type of response? Are they willing to wait while you adhere to your deadlines and processes? I doubt it. Prolonged response times can lead to customer dissatisfaction, and ultimately, you risk losing them to competitors.
In general, when people are given time to address a problem, they often don’t act with the necessary urgency. The longer the deadline, the less active and focused the mind becomes on solving the problem.
What I encourage these companies to do is to shift their mindset. They need to improve their speed of response when dealing with defects. As I mentioned earlier, the quicker the action, the better the outcome. But how do we approach this effectively? First and foremost, recognize that a defect is a problem. When you detect a problem, stop what you’re doing and take action immediately. Adopting this mindset and approach will lead to significant improvements.
This approach to immediate action must be embraced not only by those directly involved with the defect but also by everyone in the surrounding areas. It’s crucial that all relevant parties work together to overcome the issue as a unified team.
Unfortunately, what I also observe overseas is that information about defects isn’t always shared widely within the organization. In some cases, those in neighboring departments or even senior management may not be aware that a defect has occurred.
Of course, minor defects can sometimes be handled within a small group. But when a defect has a larger impact or underlying issues, you need the expertise of others in the organization to resolve it. In such cases, the issue needs to be escalated to higher levels and communicated across the organization to ensure that the right people are involved in solving the problem.
To achieve this, you need to establish a system where information flows quickly and effectively within your organization. In Toyota group companies, when a quality issue arises, the information is shared widely, and the issue is reviewed by team leaders, supervisors, and even the head of the quality department and factory manager. Depending on the severity of the situation, it may also be escalated to the top of the organization. This level of response creates a sense of urgency and commitment throughout the company.
As I often emphasize, when a problem is detected, the production line stops based on the principle of “stop what you are doing when you detect a problem.” While we all know that longer line stoppages result in greater losses for the factory and company, everyone works together to minimize these losses as quickly as possible. When necessary, top management and related areas swiftly come to the site to resolve the issue together.
At any Toyota factory, you won’t find a manager who isn’t aware of the defects occurring under their watch.
Now, let’s talk more specifically about what we need to do when a defect occurs. Once you stop what you’re doing, go directly to the site where the defect occurred and examine the situation. It’s essential to quickly analyze and understand the root cause. By identifying the root cause, you can take appropriate action. Some actions can be implemented quickly, while others may require more time. In the latter case, plan the course of action in detail, specifying who needs to do what and by when.
What I often find is that people don’t analyze the cause of the issue deeply enough. They may address symptoms rather than the true cause. It’s vital to ensure that the true cause is identified and that countermeasures are put in place to address it.
Always keep in mind the trouble you’re causing your customers. You must do whatever it takes to resolve the issue—even if it involves the entire company. This is the level of seriousness required when dealing with defects and the impact they have on your customers.
When a defect is detected, the team leader of the area where it occurred is the first person responsible for addressing the issue. If the team leader cannot identify and address the root cause within their team’s capabilities, they need to involve higher-ups and other departments. If the supervisor cannot solve it, the issue should be escalated to the manager, and then to a director, and so on. This is why organizations have different levels of responsibility.
As I mentioned earlier, it’s crucial to address the defect as soon as it occurs. If you delay, you lose the opportunity to investigate the facts of the problem accurately. The longer you wait, the harder it becomes to analyze what actually happened.
While it’s true that stopping production when a defect occurs can cause immediate losses, if you compare this short-term loss to the potential long-term damage of not addressing the issue immediately, you’ll find that the former is far less significant.
Once the root cause of an issue is understood, implementing the right countermeasures is often straightforward. However, a common mistake is failing to follow up to ensure that these measures have been successful and delivered the desired outcome.
If you can embed these practices into your daily operations, you’ll see a drastic reduction in the number of defects you experience.
I believe many of you attending today’s #AskSensei webinar are in leadership positions within your organizations. I encourage you to take what I’ve shared today to heart and implement these practices. I’m confident that you will see the positive impact of these changes firsthand.
Audience Q&A
When a defect occurs on a Toyota assembly line and the andon* is raised, does the whole assembly line stop?
As a vehicle manufacturer, Toyota operates long assembly lines in our plants. When a defect occurs at any point along the assembly line, the andon for that specific process is triggered, signaling the need for immediate assistance. Depending on the takt time—whether it’s 1 minute, 90 seconds, or 2 minutes—if the issue isn’t resolved within that timeframe, the entire line comes to a halt. We recognize that every second of stoppage equates to a loss, so our goal is to get the line back up and running as quickly as possible.
To achieve this, the team leader and supervisor responsible for that area respond immediately, working to diagnose and resolve the issue. Their efforts are crucial in minimizing downtime, even if it’s just by a few seconds.
Problems are an inevitable part of any manufacturing process, and Toyota is no exception. That’s why it’s essential to clearly define roles and responsibilities within the organization. When a defect or problem arises, there must be no ambiguity about who is responsible for addressing the issue. This clarity ensures that when a problem occurs, there’s no hesitation in responding.
*Andon is a system used to signal that there is an issue within a process, typically activated by pulling a cord or pressing a button to draw immediate attention to the problem.
What are the best organizational or management practices for preventing defects?
In my view, the focus shouldn’t initially be on creating a “system.” The system should develop as a result of sound practices, not the other way around.
When it comes to defect prevention, our primary line of defense is standard work practices, especially since we’re dealing with the human element in most tasks. On the production side, with respect to equipment and machinery, regular inspections and maintenance serve as the first barrier against defects.
While these measures are effective in reducing defects, they aren’t foolproof. They don’t completely eliminate the possibility of errors. That’s why different levels within the organization play a crucial role in identifying and resolving issues that slip through these defenses.
The key to strengthening our defense against defects lies in addressing the gap between the ideal—perfection—and what standard work and maintenance can realistically achieve. This requires management and supervisory teams to observe their workplaces meticulously and take prompt action when necessary.
By consistently applying this approach and rigorously repeating these processes, you’ll naturally evolve a system that works. Starting with a pre-defined system, especially one introduced from outside or by someone not intimately familiar with the day-to-day work, often leads to inefficiencies and mismatches with actual needs.
Instead, begin by developing a robust approach. Implement it diligently, with careful oversight and regular repetition. Over time, this will organically transform into a system that aligns with the practical realities of the workplace and is far more effective for everyone involved.
In essence, focus on doing the necessary work thoroughly and repeatedly, and let that naturally evolve into a system. This method tends to yield better results for all concerned.
What advice do you have for a company that frequently receives defects from a supplier and cannot switch suppliers in the short term?
Firstly, it’s essential to establish clear and firm expectations between the customer and the supplier. In the Toyota group, the rule is straightforward: the customer does not accept defects from suppliers. However, despite this rule, defects can still occur from time to time. When this happens, the response should mirror the steps I outlined earlier in today’s webinar.
Switching suppliers isn’t always a feasible option, even for us, and many companies face the same challenge. To reduce the number of defects coming from a supplier, the customer needs to take an active role. This might involve supplier development efforts through providing the supplier with guidance, training, or consulting support to help them improve their processes and reduce defects.
Every organization likely has a purchasing or procurement department, and it’s important to clearly define the role of this department. If their function is limited to merely purchasing and procuring products, then they aren’t fulfilling their true potential. The procurement department should focus on meeting the needs of the manufacturing floor in terms of quality, quantity, and delivery timing of the sourced products. They should be working closely with suppliers to ensure that what is delivered meets 100% of the quality standards, in the right volumes, and at the agreed-upon times.
If some suppliers struggle to meet these standards, it is the procurement department’s responsibility to guide and support them in reaching the desired level of performance. It’s important to consider who selected these suppliers in the first place. If it was the procurement department, they should take responsibility for the performance of the suppliers they chose.
This doesn’t mean simply reprimanding suppliers or demanding corrections over the phone when issues arise. Instead, this is where the concept of genchi genbutsu – “go and see” – is crucial. Those responsible for procurement must visit the actual place where the products are being produced to inspect the actual products, operations, and the production environment. By doing so, they can provide meaningful feedback and the necessary support to help suppliers improve their processes and product quality.
How can we convince frontline staff that it’s cheaper to solve a problem immediately rather than maintaining output and addressing the issue later?
In my view, this is less about convincing frontline workers and more about ensuring that those in supervisory and management roles truly understand and act on this concept. It’s the responsibility of leaders to set the example and demonstrate the importance of addressing problems immediately.
However, if you do need to persuade someone, a practical approach is to compare the costs of handling the issue now versus later. By calculating and presenting the total cost associated with each scenario, you can clearly show the financial benefits of stopping operations to fix a problem as soon as it’s detected. When people see the actual dollar figures and the cost savings of immediate action, the argument becomes much more compelling.
Simply explaining the concept might not be enough to convince everyone. But when you present real numbers and highlight the cost differences between the two approaches, it provides a strong, evidence-based rationale that’s hard to dispute.
#AskSensei Webinar
#AskSensei is a regular webinar series hosted by Shinka Management in collaboration with Senior Lean Consultant Akinori Hyodo. Hyodo Sensei brings a wealth of experience from his distinguished career at Toyota, where he advanced from operator and team leader to factory manager and director of Toyota’s HiAce Factory. Each session focuses on a different aspect of lean manufacturing, offering participants the opportunity to engage directly with Hyodo Sensei and ask their questions.
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