The Management Brief | Leaning on TPS Learnings to Create a U.S. Manufacturer

Josh Howell, LEI President, and Mark Reich, LEI Chief Engineer Strategy, are joined by Jon Armstrong, Co-Founder and CEO of Do It American MFG Company, which produces goods for public utilities. Jon started the company in 2008 and is an advocate for U.S.-based manufacturing. Earlier in his career as a manager at Walker Corporation he learned about the Toyota Production System (TPS) directly from the eminent Hajime Oba while being assisted by the Toyota Production System Support Center (TSSC).

This month The Management Brief explores how leaders transform and rethink traditional management approaches to achieve success with lean. Jon remembers the “wonderful experience” of working alongside Mr. Oba “that honestly changed my life and resulted in some successes and the company that we’re building today.”

Jon learned TPS by doing and experimenting because Mr. Oba and TSSC staff would never directly advise a path to improvement: “One of the main things I learned real quick is — especially with Mr. Oba because he didn’t really say very much — you really had to work hard and pay attention to what he was paying attention to. That was the key thing, to try to understand in manufacturing and processes what was important. They would tell you, but they wouldn’t tell you by telling you. They’d tell you by paying attention to certain things.”

Some of highlights of the trio’s discussion includes:

• Leadership style learned from Mr. Oba: “I just loved being around him,” says Jon. “He seemed like a nice guy. He took things so seriously, and there was such a sense about him of really caring — about not only the process and transferring the knowledge, but also a real caring for the people that were working within the process. I just really appreciated that. I try to do that as much as I can moving forward with the folks we’ve got here.”

• Living the TSSC mission: Mark, who was a general manager at TSSC, says that Jon has realized the mission of TSSC to help organizations improve and keep manufacturing in the United States. Jon replies, “From TSSC, what they really gave me is that the learning I had gave me the confidence that we could do a manufacturing company and do it better than the people we were competing with. If you apply TPS — just some of the principles — and you do a good job of that, people using traditional methods are not going to be able to compete with you.”

• Kaizen learnings from TSSC: The purpose of kaizen is not the improvement that is generated but learning how to improve. Jon says, “People think the way you improve is you do kaizen events; the kaizen event is the improvement. It wasn’t. Those are really training events. The kaizen event was to teach us how to do improvement.”

• Respect people and promote problem solving: Josh recalls his visit to Do It American MFG, where he saw an “abundance” of respect for the people doing the work. For example, the company uses an andon system to assist employees when problems arise, to which leaders try to respond rapidly with assistance, not blame, to encourage the identification of problems. “If you’re responsive and you don’t blame them, they are much more willing to share and help become part of the problem-solving solution. It works really well. One thing we’ve done is we have taken the fear away.” Some employees have come from companies with a bad culture and, says Jon, “it’s fascinating how long it takes to unlearn what goes on if somebody works in a bad culture where they get beat up for making a mistake or causing a defect.”