Apply Toyota’s “Ohno Circle” method to your workplace and see productivity, customer satisfaction levels soar

Taiichi Ohno was one of the fathers of the Toyota Production System (TPS). He introduced a unique observation method named after him – “The Ohno Circle”. The Ohno Circle is a powerful component in continuous improvement, helping to identify waste, streamline processes, and enhance productivity by making observations at the workplace. It is practised by standing in one place marked by a chalk circle on the factory floor and observing the processes in operation for hours. This practice aims to develop a deep understanding of the workflow, identify inefficiencies, and foster a culture of continuous improvement based on observations. 

The benefits of the Ohno Circle are significant. It can lead to reduced waste, improved productivity, enhanced customer satisfaction, and more efficient use of resources. This technique is not confined to manufacturing; it can be effectively applied in many environments, including offices, hospitals, schools and supermarkets.

How the Ohno Circle works

As illustrated by a Japanese expert I had the privilege of listening to, the story of the Ohno Circle goes like this. A new management trainee is taken to the factory floor by Ohno himself and asked to stand within a marked circle and observe the surroundings. After two hours, Ohno fetches him, goes to his room, and asks what he observed. The conversation goes somewhat like this:

Ohno: So what did you observe?

Trainee: Cars were going through the assembly line, and assembly work was going on smoothly.

Ohno: How many windows and doors did you observe in the section? What percentage were female employees? Which car body colour seemed more in demand? How many cars were produced per hour? And so on.

Trainee: I am sorry, but I didn’t notice any of these.

Then, he is asked to wait another two hours within the same circle and observe again. This process continues until the trainee has mastered the technique of critical observation, not just superficial observation.

This may have been an exaggerated story, but it explains the techniques well. In practice, a chalk circle is rarely drawn on the floor but the observation is from a fixed position.

Application in factories

In manufacturing, the Ohno Circle is instrumental in identifying bottlenecks and the seven wastes defined by Toyota. When observing the factory floor from a fixed position, managers and workers can see the flow of materials, the movement of people, the utilisation of machines, the delays, and the movement of parts and components. This perspective often reveals inefficiencies that managers might need to pay attention to during routine checks or walking around. 

I personally developed the habit of observation from a fixed position. I would stand for a long time behind counters in an office or at a workstation in the factory. I have observed unproductive methods, and poor service to customers. I have made observations as a customer and even as a patient in a hospital. This helped me gain a profound understanding of the processes, the viewpoint of the customer, and the many areas for improvement. I have noticed many improvement opportunities which have escaped the attention of the managers and owners.

Examples

In one of the Toyota plants, workers noticed that parts were frequently moved from one side to the other, causing unnecessary delays, wasted movement, and potential damage to the parts. Standing in the Ohno Circle, they realised that a simple layout change could eliminate these unnecessary movements.

At one of General Electric’s (GE) aviation plants, where jet assemblies were taking place, engineers using the Ohno Circle method discovered that tools and parts were often located far from where they were needed, causing workers to waste time going to and fro fetching them. By reorganising the workplace, GE was able to streamline the assembly process, reducing production time and improving overall productivity.

The Ohno Circle can also be used in offices to identify workflow design, redundant processes, and communication gaps. By observing office activities from a fixed point, managers identify opportunities for improvement.

Observing the workflow in Toyota’s accounting department, managers practicing the Ohno Circle method noticed that invoice approval processes involved multiple redundant steps and excessive paperwork. By simplifying the process and implementing digital approvals, they reduced the processing time and improved overall efficiency.

At Dankotuwa Porcelain, the Japanese Technical Expert found why the traditional hand washing method did not reduce the iron spot defect. He visited the washroom and observed for hours how workers washed their hands. He demonstrated that the same amount of iron spots remained in the palms and he changed the standard operating procedure for washing hands which made a significant difference.

In healthcare, the Ohno Circle can be a powerful tool to improve patient care, reduce wait times, and enhance operational efficiency and medication accuracy. By observing patient flow and staff activities from a central point, healthcare administrators can identify waste areas and implement improvements.

Examples of Ohno Circle in schools reveal that classroom management, overall school operations and learning processes could be significantly improved. 

Conclusion and the way forward

The Ohno Circle is a simple yet powerful tool that can drive significant improvements in various settings. By observing processes from a fixed point, managers and workers can gain deep insights into inefficiencies and develop practical solutions. Whether in factories, offices, hospitals, or schools, the principles of the Ohno Circle can enable a culture of continuous improvement, enhancing productivity and efficiency across the organisation. By embracing this tool, organisations can achieve higher performance levels and create more value for their stakeholders.

In Sri Lanka, we often see instances where critical observation is lacking. People rely more on hearsay and reports than on critically observing what is actually happening. Traffic police officers on duty frequently fail to detect violations because they are superficial in their observation. The same goes for security guards. In factories, supervisors, foremen, and even managers fail to detect abnormal or wasteful activities because they need to be trained in critical observation. The seniors in government departments hardly observe and realise the frustrations of the public who visit the departments. They need to develop a culture of visiting the areas where work happens. The Ohno Circle method, with its emphasis on critical observation, if inculcated widely, could lead to significant improvements in Sri Lanka’s commercial and Government sectors.

(The writer is an active promoter of Japanese Management Techniques since 1980. He is a recipient of the “Order of the Rising Sun, Gold and Silver Rays” from the Government of Japan, for promoting relations between and Japan and Sri Lanka, by promoting Japanese Management Techniques in Sri Lanka. Email: [email protected].)