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BY: Prashant ThakurTOYOTA PRODUCTION SYSTEM (TPS)1CONTENT TABLE:History Of Manufacturing ManagementHISTORY (company)Goals of TPSToyota PrinciplesToyota WaysHow to make money ????Toyota Production SystemTPS-HouseMain pillar of TPSJust-In-Time( Takt time,Pull System,Flow production)Heijunka

2Manufacturing Technology2Waste (INVENTORY)JidokaGenchi GenbustuAndon WheelStandardizationMistake proofingVisual managementKaizen5sThe Environment Toyotas commitmentHealth and SafetyWhat TPS Means for your Business

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History of Manufacturing Management4Manufacturing Technology4The Toyota Production System (TPS) arose out of necessity in response to the circumstance surrounding the company. Many of the foundational concepts are old and unique to Toyota while others have their roots in more traditional sources.The oldest part of the production system is the concept of Jidoka which was created in 1902 by Toyota founder Sakichi Toyota.The most famous element of the TPS is no doubt the Just-in-Time pillar of the production system.Everything was expected to be procured just in time and not too early or too late. Later elements developed in the 1950s including takt time,standardized work, kanban, and supermarkets added to the basis for JIT.There are also many other tools and techniques that were developed in Toyota such as 7 Wastes,Standardized Work, 5S, SMED, Visual Control, Error Proofing, as well as many others.5Manufacturing Technology HOW TOYOTA GETS POLULARITY IN MARKET or in people????Sakichi toyota, the founder of the toyota group of companies, started toyota as a textile machine company.Kiichiro toyota, son of Sakichi and founder of the toyota automobile business, Taiichi Ohno, He was THE main developer of toyota Production System (TPS).Company drew the interest in japan because it is the most profitable car company in the japan in 1970sAnd outside the japan people comes to when the toyoda-General Motors joint venture-NUMMI (New United Motor Manufacturing Inc.) in California in 1984

Outside Japan, dissemination began in earnest with the creation of the toyoda-General Motors joint venture-NUMMI (New United Motor Manufacturing Inc.) in California in 1984.

5 GOALS OF TPSThe goal of the Toyota Production System is to provide products at world class quality levels to meet the expectations of customers, and to be a model of corporate responsibility within industry and the surrounding community.

The Toyota Production System historically has had four basic aims that are consistent with thesevalues and objectives: The four goals are as follows:1. Provide world class quality and service to the customer.2. Develop each employees potential, based on mutual respect, trust andcooperation.3. Reduce cost through the elimination of waste and maximize profit4. Develop flexible production standards based on market demand.6Manufacturing Technology6Section I Long-term philosophyPrinciple 1: Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.

Section II The Right processes will produce the right resultsPrinciple 2: Create continuous process flow to bring problem to the surface.Principle 3: Use pull system to avoid overproduction.Principle 4: Level out the workload (heijunka). (work like a tortoise not the hare.)Principle 5: Build the culture of stopping to fix problems to get quality right the first time. TOYOTA-PRINCIPLES7Manufacturing TechnologySUCCESS DEPEND UPON THE PRINCIPLEs7Principle 6: Standardize tasks are the foundation for continuous improvement and employee empowerment.Principle 7: Use visual control so no problems are hidden.Principle 8: Use only reliable, thoroughly tested technology that serves your people and processes.

Section III Add value to the organization by developing your people and partnersPrinciple 9: Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. TOYOTA-PRINCIPLES8Manufacturing Technology8Principle 10: Develop exceptional people and teams who follow your companys philosophy.Principle 11: Respect your extended network of partners and suppliers by challenging them and helping them improve.

Section IV Continuously solving root problem drives organizational learningPrinciple 12: Go and see for yourself to thoroughly understand the situation (genchi genbutsu).Principle 13: Make decisions slowly by consensus, thoroughly considering all options, implement decisions rapidly. TOYOTA-PRINCIPLES9Manufacturing TechnologyThe TOYOTA WAYThe five core values of The Toyota Way are shared and practiced by Toyotaemployees at every level in their daily work and relations with others This is how Toyota is able to deliver sustainable customer satisfaction.Continuous Improvement Respect For People10Manufacturing TechnologyThe Toyota production system is the expression of the Toyota way.10CHALLENGETo maintain a long-termvision and meet all challengeswith the courage andcreativity needed to realizethat vision.

KAIZENContinuous improvement.As no process can everbe declared perfect,there is always room forimprovement.GENCHI

GENCHI GENBUTSUGoing to the source to findthe facts to make correctdecisions, build consensusand achieve goals.Continuous Improvement11Manufacturing Technology Respect For People

RESPECTToyota respects others,makes every effort tounderstand others, acceptsresponsibility and does itsbest to build mutual trust.

TEAMWORKToyota stimulates personaland professional growth,shares opportunities fordevelopment and maximizesindividual and teamperformance.12Manufacturing Technology12 How to make money?Traditional pricing strategy: Cost + Profit = Selling priceExample: When the cost goes up, the product selling price is raised to reflect the higher costs and maintain the desired level of profit. Some even argues that the profit added should be large enough to cover potential losses if the product does not sell well.Toyota accepts neither this formula nor these arguments!

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13 Toyota's philosophy Selling price Cost = Profit

Customers decide the selling price.

Profit is what remains after subtracting the cost from it.

The main way to increase profit is to reduce cost.

Consequently, cost reduction through waste elimination should have the highest priority.Toyota's paradox: Reducing cost (waste), will reduce lead time while increasing quality and customer satisfaction.How? We will discuss it soon.

14Manufacturing Technology14Toyota Production SystemDefinition: The production system developed by Toyota Motor Corporation to provide best quality, lowest cost, and shortest lead time through the elimination of waste.

The Toyota Production System empowers team members to optimize qualityby constantly improving processes and eliminating unnecessary waste innatural, human and corporate resources.

It entrusts employees with well-defined responsibilities in each production stepand encourages every team member to strive for overall improvement.

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The TPS House16Manufacturing TechnologyWhy this is called house???The base of the house consist of the labeled production continuous improvement and setting of the standards BUT the man pillar of the house is JITand JIDOKA. And the at top the one for that TOYOTA knows for16 Main Pillars Of TPSJUST-IN-TIME


17Manufacturing Technology17JUST-IN-TIME- smooth, continuous, optimized workflows. JIT is a manufacturing philosophy involving an integrated set of procedures/activities designed to achieve a volume of production using minimal inventories ORA philosophy that seeks to eliminate all types of waste, including carrying excessive levels of inventory and long lead times.Takes its name from the idea of replenishing material buffers just when they are needed and not before or after.Best applied to a production system, such as automobile assembly, that would be considered repetitive, such as a flow shop.

18Manufacturing TechnologyIt is implement just to ensure the pull system or it is only possible when we have pull system implement.18

19Manufacturing TechnologyJIT Elements Are:Takt Time

Flow Production

Pull system

20Manufacturing Technology TAKT TIME(Heartbeat of production) Takt is the rate of customer demand essentially, what the market is requiring be produced.

It is the basis on which we can create flow within our work-cells and throughout our whole value chain from raw materials to customer delivery.

Takt time is the available working time for production divided by the actual average daily demand for our product(s) expressed in minutes. this gives us the customer demand rate for use throughout our organization and the supply chain.

The Takt time also forms the basis for enabling the design and balancing of our work-cells and production lines in an efficient manner.21Manufacturing TechnologyTakt time and heijunka mean having the ability to be flexible according to demand and ensuring the process.


22Manufacturing TechnologyTakt Time vs Cycle TimeTakt time should not be confused with machine cycle time; machine cycle time is the time taken to produce a part, this could exceed takt time in some cases which would mean that the process would be incapable of producing enough products within the available time.

Where cycle times exceed your Takt time there is a need for machines to either be run on additional shifts to build stock, the product to