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Toyota ProductionSystem
&Dual Kanban System
Irfan Kazi & Naresh S
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Toyota ProductionSystemToyota production system was developed &
promoted by TMC.
The main purpose of TPS is to eliminatewaste through continuous improvementactivities.
Profit through cost reduction
Elimination of over production Quality control , Quality assurance , Respect
for humanity
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Cost ReductionIncrease of capital
turnover ratio
Elimination of Waste
Production
methods
Information
systemControl by
teamwork
Automatic
stop device
Small lot sizeShort setup timeMultifunctional worker
Job finishing within cycle time
Kanban
Continuous flow of Production
Just-in time production Jidoka
oyo a ro uc onSystem
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Manufacturing as a
Competitiv
e Weapon
There are two ways to increaseefficiency: 1) increaseproduction quantity or 2) reduce
the number of workersTaiichiOhno.
Over time, lowercosts, higher quality,and fasterdevelopment &production times will
increase sales.
Reducepeople atall levels
in theorganization
Cost Reduction Is theGoal
Cost Reduction Is theGoal
In the shortterm, you
may need to
Goal ofTPS
Why?
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Cost vs. Vitality &Growth
As you reduce costs, you create options: Lower prices, which often lead to higher
market share
More R & DGrowth through acquisitions or diversification
Higher investment in training and equipment
Greater profitability, which rewardsshareholders, including employees
Options give the company the means tosurvive on its own terms, even in slow
economic times, and grow as the Back
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Main Features of TPS
Greater Product Variety
Fast Response (Flexibility)
Stable Production Schedules
Supply Chain Integration
Demand Management
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Elements of TPS
The SMED Program.
Highlight Problems (Jidoka).
Gradual Elimination of Waste.Continuous Improvement (Kaizen), Root-
Cause Analysis (5-whys?) and Fool-proofing(Poka-Yoke).
Cross-Trained Workers.
Just-In-Time Production.
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A Lean Paradox
Resolvehow tomaintainmutual
trustwhilereducingpeople
Reducing costs means reducing people, but if youeliminate people as a result of improvement, you will
get no more improvement.
Reducing costs means reducing people, but if youeliminate people as a result of improvement, you will
get no more improvement.The Toyota Production Systemclearly reveals excess manpower
Managements responsibility is toidentify excess manpower andutilize it effectively.
Hiring people when business is
good and production high just tolay them off is a bad practice.
On the other hand, eliminatingwasteful and meaningless jobs
enhances the value of work forworkers.
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Develop ALean Strategy
Create a sense ofurgency
Throughout the
enterprise, selllean/TPS as thesolution
Hire a sensei &retain design talent
Establish targets
Resolve how tomaintain mutualtrust whilereducing people
Give preliminarythought to supplierissues
Consider thecompetitiveenvironment
Manufacturing as aCompetiti
veWeapon
Design TheManufacturing System
Identify thecustomerbase and
product rangeIdentify takttime & itsrange
Applyaxiomaticdesign to
create thebasic factorysystem
Eliminatenon-essentialinfrastructureand layers
above thefactory floor
EstablishEstablish
FlowFlow
WithinWithin
CellsCells
EstablishEstablish
FlowFlow
WithinWithin
CellsCellsForm cellsbased on takt
time
Definestandard workcontent foreachoperation tobe < takt time
Separateworker frommachine(jidoka)
Develop quicksetups &standard WIP
(SMED)
Standardize
Form cellsbased on takt
time
Definestandard workcontent foreachoperation tobe < takt time
Separateworker frommachine(jidoka)
Develop quicksetups &standard WIP
(SMED)
Standardize
EstablishEstablish
PullPull
BetweenBetween
CellsCells
EstablishEstablish
PullPull
BetweenBetween
CellsCellsDesign aninformationsystem to
produceonly theproductsrequired bythedownstreamcells
Incorporatetakt time todrive flows
Instituteleveledproduction(heijunka)
Use visualcontrol
Strive ForPerfection
Institutekaizen &institutionalize5Ss throughoutorganization
Transferownership ofall processesto work force
Push leandown tosuppliers
Integrateproductdevelopment
Reduce peopleat all levels inthe
organization
All activities must support the goal of shortening thetime it takes to convert customer orders into
deliveries. Toyota Motor Corporation, 1992
All activities must support the goal of shortening thetime it takes to convert customer orders into
deliveries. Toyota Motor Corporation, 1992
Apply flexibleApply flexible
designs todesigns to
create thecreate the
basic factorybasic factory
systemsystem
the TPS
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Toyota Production System
Just-In-TimeRight part, right amount,
right time
Jidoka
(In-station quality)Make Problems Visible
Leveled Production (Heijunka)
Stable and Standardized Processes
Takt time planning
Continuous flow Pull system
Quick changeover
Integrated logistics
Automatic stops Andon
Person-machine
separation
Error proofing
In-station quality
control
Solve root cause of
problems (5 Why?)
Waste Reduction Gemba Kaizen
5 Whys
Eyes for Waste
Problem Solving
People & Teamwork Selection
Common Goals
Rigid decision making
Cross-trained
Continuous Improvement
Visual Management
Toyota Way Philosophy
Best Quality - Lowest Cost - Shortest Lead Time - Best Safety - High Moralethrough shortening the production flow by eliminating waste
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DUAL KANBAN SYSTEM
KANBAN IS THE MAIN TOOL FOROPERATING ON JUST IN TIME
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Kanban System
Thepull system means that materials aredrawn or sent for by the users of the materialas needed. [Monden]
The Kanban system is an information systemthat harmoniously controls the production ofthe necessary products in the necessaryquantities at the necessary time in every
process of a factory and also amongcompanies, which is known as the JITproduction. [Monden]
A Kanban is a tool to achieve JIT production. Itis simply a card which is usually put in a
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Types Of Kanbans
Kanbans are classified as follows1. Primary Kanban :
travels from one stage to another among mainmanufacturing cells- withdrawal Kanban(conveyor
kanban), production Kanban2. Supply Kanban:
travels from a warehouse orstorage facility to a manufacturing facility
3. Procurement Kanban:travels from outside of a company to the receiving area
4. Subcontract Kanban :travels between subcontracting units
5.
Auxiliary Kanban :the form of an express Kanban, emergency Kanban, or a
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Operations Principles
Level production (balance the schedule)
Avoid complex information andhierarchical control systems on a factory
floor Do not withdraw partswithout a kanban
Withdraw only the parts needed at each
stage Do not send defective parts to the
succeeding stages
Produce the exact quantity of partswithdrawn
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The key objective of a Kanban system:1. To deliver the material just-in-time to the
manufacturing workstations
2. To pass information to the preceding stage asto what and how much to produce
Following functions
1. Visibility Function : the information andmaterial flow are combined together2. Production Function : indicates the time,quantity, and part types to be produced
3. Inventory Function : # of Kanbans = # ofinventor
Kanban Functions
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Rule 1: Move a Kanban only when the lot it represents isconsumed.
Rule 2: No withdrawal of parts without a Kanban is allowed.
Rule 3: The number of parts issued to the subsequent processmust be the exact number specified by the Kanban.
Rule 4: A Kanban should always be attached to the physicalparts.
Rule 5: The preceding process should always produce parts inthe quantities with drawn by the subsequent process.
Rule 6: Defective parts should never be conveyed to the
subsequent process.
Basic KanbanRules
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Dual Kanban
System
Each kanban is physically attached to a
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Dual Kanbans
ProcessA
ProcessB X
P
W Container with withdrawal kanban
Container with production kanban
PWP
XX
XX X
Flow of work
Flow of kanban
XXX
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Production
Cards
Production
Cards
Move
Cards
Move
Cards
Move Card
Production Card
Outbound
Stockpoint
Inbound
Stockpoint
Dual KanbanSystem
D t i i N b Of
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Determining Number OfKanbans
Where
N = number of kanbans or containers
d = average demand over some time period
L = lead time to produce parts
S = safety stock
C = container size
No. of kanbans =mand during lead time + safety stock
container size
average de
NdL S
C
=+
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TKM
GLOVE
COMPARTMENT
SUPPLIER TG
KIRLOSKAR
T004-A
PROCESS CODE :
ASSEMBLY
55581- 0B010- 00QTY/BOX10
PACKING CODE :
PB10123
Dock
01
LOCATION CODE :
T2R-2
516 SEQNO. 1
KEY CODE :1234567890
KANBANSAMPLE
PART NAME
NAME OF SUPPLIER FROM
WHERE THE PARTS WILL BE
PARTS
DESTINATION
SUPPLIER CODE
FOR EASYSUPPLIER
IDENTIFICATION
LINE SIDE ADDRESS FOR
PARTS STORAGE. BASED ON
THIS ADDRESS, THE PARTS
ARE DELIVERED TO THE
USAGE AREA.
PART NUMBER
PARTS RECEIPT AREA.
WE HAVE TWO
RECEIPT AREAS
DOCK 01 AND DOCK 02.
MINIMUMORDER LOT
PARTS PACKING
STYLEPART ID NO. THIS NUMBER IS USED INSTEAD
OF 10 DIGIT PART NUMBER FOR EASY
IDENTIFICATION AMONG PRODUCTION,
SUPPLIER AND PARTS GROUP
COLOUR GIVEN FOR
EACH PROCESS LINE
FOR EASY DELIVERY OF
PARTS FROM PC ZONE
TO LINE.
PARTS USAGE
PROCESS NAME
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Conclusion
Toyota production system has beencreated from actual practices in the
factories of Toyota, it has a strongfeature of emphasising practicaleffects, and actual practice andimplication over theoretical
analysis. This system can play a greatrole in the task of improving the
constituents of the companies world-wide es eciall those of the
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Bibliography
www.icaen.uiowa.edu/ie166/Private/Lecture/ch8-Kanban.pdf
www.ie.bilkent.edu.tr/akturk/ie561/gokha
n2 www.toyota.co.jp
Yasuhiro Monden, Toyota Production
System, 2nd edition, IEM Press, Georgia,1991
Vollmann, Berry, Whybark,Manufacturing Planning & ControlSystem, 4th edition, Irwin McGraw-Hill,
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Thank You