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  • 8/8/2019 Toyota Production Systems Final

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    Toyota Production SystemsToyota Production Systems

    Presented by :

    Sameer H Panchamukhi

    070908164

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    About ToyotaAbout Toyota

    y Market capitalization of over $ 105 billion;

    over 2,80,000 employees

    y The Largest automobile manufacturer in

    the world; recently beats GM

    y Annual Profit margin: 8.3 times higher

    than industry average

    y Global Vehicle sale of over 8 million per

    year in 170 countries

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    What is TPS ?What is TPS ?

    y TheToyota Production System (TPS) is an

    integrated socio-technical system,

    developed by Toyota, that comprises its

    management philosophy and practices

    y Socio-technical systems (STS) is an

    approach to complex organizational work

    design that recognizes the interactionbetween people and technology in

    workplaces

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    Father of TPS:Father of TPS: TaiichiTaiichi OhnoOhno

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    How did it start?How did it start?

    y A delegation from Toyota (led by Ohno)visited the United States in the 1950s

    y They visited Ford Motor Companys

    automotive plants in Michigany Despite being the industry leader, many of

    the methods in use were not veryeffective

    y Large amounts of inventory on site

    y Large amount of rework at the end of theprocess

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    y

    The most important discovery in the US :The Supermarket

    y Delegation was inspired by how they only

    reordered and restocked goods once they

    had been bought by customers

    y They applied the lesson by reducing the

    amount of inventory they would hold only

    to a level that its employees would needfor a small period of time, and then

    subsequently reorder

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    7 principles of TPS :7 principles of TPS :

    1. Reduced Setup Times

    2. Small-Lot Production

    3.Employee Involvement andEmpowerment

    4. Quality at the Source

    5. Equipment Maintenance

    6. Pull Production

    7. Supplier Involvement

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    1. Reduced1. Reduced SetupSetup TimesTimes

    y All setup practices are wasteful

    y They add no value

    y

    They tie up labor and equipmenty By organizing procedures, using carts,

    and training workers to do their own

    setups, Toyota managed to slash setup

    times from months to hours andsometimes even minutes.

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    2. Small2. Small--Lot ProductionLot Production

    Producing things in large batches results in:

    y huge setup costs

    y

    high capital costy larger inventories

    y extended lead times

    y

    larger defect costs

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    3. Employee Involvement and3. Employee Involvement and

    EmpowermentEmpowermenty Toyota organized their workers by

    forming team

    y Gave them the responsibility and training

    to do many specialized tasks

    y Responsibility for housekeeping and

    minor equipment repair

    y Each team has a leader who also works asone of them on the line

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    4. Quality at the Source4. Quality at the Source

    y To eliminate product defects, they must

    be discovered and corrected as soon as

    possible

    yWorkers are in the best position to

    discover a defect

    y Hence they are assigned the responsibility

    to fix it immediatelyy If not, the worker can halt the entire line

    by pulling a cord

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    5. Equipment Maintenance5. Equipment Maintenance

    yWorkers are assigned primary

    responsibility for basic maintenance

    yWhy : Since they are in the best position

    to detect signs of malfunctions

    y Maintenance specialists diagnose and fix

    only complex problem

    y Main advantage : They train the workers inmaintenance

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    6. Pull Production6. Pull Production

    yWhy : To reduce inventory holding costs

    and lead times

    y Quantity of work performed at each

    stage of the process is dictated solely by

    demand for materials from the immediate

    next stage

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    7. Supplier Involvement7. Supplier Involvement

    y Toyota treats its suppliers as partners

    y Trained in ways to reduce setup times,

    inventories, defects, machine breakdowns

    etc.

    y Advantage : Helps deliver their best

    possible parts

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    TPS HouseTPS House

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    Concepts of ToyotaConcepts of Toyota

    yJidoka

    yJust In Time ( JIT )

    y Kanban

    y The 5-Why investigation

    y The 5 S program

    y Andon

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    JidokaJidoka

    y Automation with a human touch:equipment endowed with humanintelligence to stop itself when it has a

    problemy Culture of highlighting problems and

    stopping production to fix problems

    y Traditional production view: Do not shutdown the assembly line! The managersare judged by their ability to deliver thenumbers

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    Just In Time ( JIT )Just In Time ( JIT )

    Just-in-Time means making only :

    yWhat is needed

    yWhen it is needed

    y In the amount needed

    This helps in order to :

    y Eliminate waste

    y Inconsistenciesy Unreasonable requirements

    Results in improved productivity

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    KanbanKanban

    y Idea borrowed from super markets so

    called super market method

    y At Toyota, an empty bin (a kanban) is sent

    upstream after a demand instance

    y It is a signal to refill it with a specific

    number of parts

    y Advantage : Reduces excess production

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    5 5 Why InvestigationWhy Investigation

    Level of ProblemCorresponding Level of

    Countermeasure

    There is a puddle of oil on the shop floor Clean up the oil

    Because the machine is leaking oil Fix the machine

    Because the gasket has deteriorated Replace the gasket

    Because we bought gaskets made of

    inferior materialChange gasket specifications

    Because we got a good deal (price) onthose gaskets

    Change purchasing policies

    Because the purchasing agent gets

    evaluated on short-term cost saving.

    Change the evaluation policy for

    purchasing agents

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    5 S Program 5 S Program

    y Sort (seiri): Sort out unneeded items

    y Straighten (seiton) : Have a place for

    everything

    y Shine (seiso): Keep the area clean

    y Standardize (seiketsu): Create rules and

    standard operating procedures

    y Sustain (shitsuke): Maintain the system

    and continue to improve it

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    AndonAndon

    yWhen the equipment shuts down because

    of a quality problem, flags or light, usually

    with accompanying music, signal that help

    is needed to solve the problem

    y This signaling system is called the andon

    system

    y At Toyota, the andon is called a fixed-position line stop system.

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    yWhen a workstation in the assembly linesignals a problem, the production line isnot stopped immediately

    y If the problem is small enough that can besolved in the lead-time between twoworkstation, 100% quality is achievedwithout stopping the line

    y If the problem is complex, the teamleader can conclude that the line shouldstop.

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    ConclusionConclusion

    Myth Reality

    What TPS Is Not What TPS Is

    - A tangible recipe for success - A consistent way of thinking

    - Amanagement project or program - A total management philosophy

    - A set of tools for implementation - Focus on total customer satisfaction

    - A System for production floor only. - An environment of teamwork and improvement

    - Implementable in a short-or mid-term period - A never-ending search for a better way

    - Quality built in process

    -Organized, disciplined Workplace.

    - Evolutionary