TOYOTA PRODUCTION TOYOTA PRODUCTION SYSTEMSYSTEM

Submitted by: (Section: D)Alliance Business School

Raunaq Chawla (08 PG 258)Seshu Pinnamaneni (08 PG 270)Vijay Pal Singh (08 PG 282)

Taiichi Ohno – Father of Toyota Production System

History Moving assembly line was the ideal model on which

Toyota based their production system back in the 1940s Started lean manufacturing on the shop floor, after World

War II as a solution to a very real and pressing problem After World War II when Japanese industry was

decimated, the Toyoda family decided to extend Toyota Automatic Loom company to start an automotive company. They had some cash but did not have the infrastructure

Under these conditions, Taiichi Ohno was given the assignment of catching up with American companies in productivity at a time when they were behind

cont…….d

History (cont….d)History (cont….d)Ohno drew upon a number of ideas from the

West and a lot of experimentation to ultimately develop TPS

Quality problem at Toyota led to introduction of concept of “jidoka” – built in quality

After the 1973 oil crisis, Japan’s economy collapsed to zero growth. Even Toyota Motor Company suffered losses greater earnings were sustained in 1975, 1976 and 1977 than at other Japanese companies – which made Japan follow Toyota’s style naming it as Toyota Production System

Taiichi Ohno, Shigeo Shingo and Eiji Toyoda developed the system between 1948 and 1975

7 Principles of TPS7 Principles of TPSReduced set up times: organizing

procedures,  using carts, and training workers to do their own setups, helped in slashing setup times from months to hours and sometimes even minutes

Small -lot production: economically produce larger variety and smaller quantity

Employee involvement and empowerment: formed teams and assigned responsibilities

7 Principles 7 Principles (cont….d)(cont….d)

Quality at source: Since workers are at the best position to find a defect and to immediately fix it, they are assigned the responsibility of eliminating defects as early as possible.

Equipment maintenance: responsibility of maintenance assigned to workers

Pull production: the quantity of work performed at each stage of the process is dictated solely by demand for materials from the immediate next stage

Supplier involvement: Suppliers are trained in ways to reduce setup times, inventories, defects, machine breakdowns etc., and take responsibility to deliver their best possible parts

Lean manufacturing – Lean manufacturing – precursor of TPSprecursor of TPS

TPS ConceptsTPS Concepts

1. JIDOKA: highlighting problems Means that a machine safely stops when

the normal processing is completed Since a machine automatically stops

when processing is completed / when a problem arises and is communicated via the "andon (problem display board)," operators can confidently continue performing work at another machine, as well as easily identify the problem cause and prevent its recurrence.

Concept of “Jidoka”Concept of “Jidoka”

TPS ConceptsTPS Concepts

2. JUST IN TIME: complete elimination of waste

When a order is received, production instruction must be issued to the beginning of the production line as soon as possible

The assembly line must be stocked with small numbers of all types of parts so that any kind of vehicle ordered can be assembled

The assembly line must replace the parts used by retrieving same number of parts from the parts-producing process

The preceding process must be stocked with small no. of all types of parts and produce only the no. of parts required in next process

http://www.toyota.co.jp/en/vision/production_system/video.html

Kanban systemKanban systemUnique production control methodIdea borrowed from super markets

so called “super market method”when a process goes to the

preceding process to retrieve parts, it uses kanban signs to communicate what parts have been used

Reduces excess production

ILLUSTRATION

of

TPS

GOALS OF TPSGOALS OF TPS•Design out overburden(muri), inconsistency(mura) & eliminate waste(muda)• Process of production is as flexible as possible• Follows 5 s approach- sieri(sort), seiton(set in order), seiso(shine), seiketsu (standardize), shitsuke(sustain)• Participation of all employees in the work process• Elimination of imperfection or problem so as to reduce inventory• Systems thinking- tools & techniques are highly interdependent

OUTCOME OF TPSOUTCOME OF TPS•Reduction of lead time to a great extent

• Improvement of quality

• One of ten largest companies in the world

• Largets car manufacturer in 2007

• Low cost

• Fast response

Toyota’s spirit of “ making things” is being spread through out the world as

“The Toyota way”