CORPORATE PROFILE

• World's third largest automaker

• Global sales totaling 6.17 million units

• Toyota has 45 manufacturing companies in 26 countries

• Toyota employs 3,16,000 people worldwide

• Markets vehicles in 170 countries

• Net sales $262.29 billion

TOYOTA BACKGROUND

Toyota Motor Co. Ltd was established by Kiichiro Toyoda in 1937 as a spin-off from Toyoda Automatic Loom WorksToyota launched its first passenger

car in 1947'Toyota Production System’ was established in 1970 by Taiichi Ohno. Based on the principles of JIDOKA, JUST-IN-TIME and KAIZEN, REDUCTION OF INVENTORIES and DEFECTS in the plants of Toyota and its suppliers

FOUNDER OF TPS

TAIICHI OHNO

TOYOTA PRODUCTION SYSTEM

AUTONOMATION

- Autonomous automation for 100% zero defect production

JIDOKA = AUTONOMATION = AUTOMATION WITH HUMAN INTELLIGENCE

4 Principles of Autonomation

• Detect the abnormality.

• Stop.

• Fix or correct the immediate condition.

• Investigate the root cause and install a countermeasure.

JIDOKA

USE OF ANDON

POKA - YOKE

JUST IN TIME

• JIT- philosophy of continuous improvement that puts emphasis on prevention rather than correction, and demands a company wide focus on quality.

• JIT- operational management approach to world class manufacturing.

• JIT- production is based on demand

JUST IN TIME

Just in Time is delivery of the needed amount at the right time:

• buffer free

• store free

• kanban

• involvement of the supplier in the kanban

system

TRADITIONAL “BUFFERED” SUPPLY CHAIN

Assembler

2nd Tier

1st Tier

Flow of Production

CustomerDemand

Flow of Information

JUST-IN-TIME SUPPLY CHAIN

Toyota

2nd Tier

1st Tier

Flow of Production

Flow of Information

CustomerDemand

The Toyota Production System is geared to the continuous flow process at the final assembly line. Through process

orientated installation of the machines, every other production step will be adjusted to this continuous flow

process.

KANBAN

• Used as a form of work order attached to goods (Always attach a kanban to goods)• By knowing the cycle that caused the fault,

defective products can be prevented• Defective pieces will not be sent to the next

cycle. The result are zero defect products.• Discovers existing problems and allows

checking of stock.• Reduction in amount of kanban leads to an

advance of sensibility.

Signal marker Signal marker on boxeson boxes

Part numbers Part numbers mark locationmark location

1.1. User removes a User removes a standard sized standard sized containercontainer

2.2. Signal is seen by Signal is seen by the producing the producing department as department as authorization to authorization to replenishreplenish

KANBAN SIGNALS

• As a customer “pulls” an order from finished As a customer “pulls” an order from finished goods, a signal (card) is sent to the final assembly goods, a signal (card) is sent to the final assembly areaarea

• The final assembly area produces and resupplies The final assembly area produces and resupplies finished goodsfinished goods

• When final assembly needs components, it sends a When final assembly needs components, it sends a signal to its suppliers, a subassembly area and a signal to its suppliers, a subassembly area and a work cellwork cell

–These areas supply final assemblyThese areas supply final assembly• The work cell, in turn, sends a signal to the raw The work cell, in turn, sends a signal to the raw

material supplier and the subassembly area notifies material supplier and the subassembly area notifies the work cell and purchased parts supplier of a the work cell and purchased parts supplier of a requirementrequirement

KANBAN SIGNALS

Work Work cellcell

Raw Raw Material Material SupplierSupplier

KanbanKanban

Purchased Purchased Parts Parts

SupplierSupplier

Sub-Sub-assemblyassembly

ShipShip

KanbanKanban

KanbanKanban

KanbanKanban

KanbanKanbanFinal Final assemblyassembly

KanbanKanban

FLEXIBLE PRODUCTION

The ability to respond to market fluctuations has the first priority. Therefore going for –

•Production in small lot sizes•Mixed production for production leveling•Alliance and Synchronization of assembly and production

MIXED MODEL PRODUCTION IN FINAL ASSEMBLY

Main goals of the TPS are to-

design out overburden (MURI) smooth production (MURA) eliminate waste (MUDA)

TOTAL AVOIDANCE OF WASTE

7 kinds of MUDA targeted in the TPS

• Over-production

• Motion (of operator or machine)

• Waiting (of operator or machine)

• Conveyance

• Processing itself

• Inventory (raw material)

• Correction (rework and scrap)

WASTE- the needless, repetitious movementthat must be eliminated immediately.

VALUE- ADDED WORK- the realprocessing, directly contributingto the appreciation value of theproduct.

NON VALUE-ADDED WORK- contributes to the waste

PRESENT CAPACITY = WORK + WASTE

RELATION BETWEEN WORK & WASTE

ADVANTAGES OF GOING FOR TPS

Companies that pursue and emulate TPS best practices have seen much success as a result of this highly effective manufacturing philosophy. Some of the benefits include:

• Identify and enhance customer perceived value

• Decrease waste and cost in the manufacturing process

• Improve product quality and on-time delivery • Develop a competitive world class

manufacturing operation

PRESENTED BY,TEAM 6ATSM, Madurai

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