BASIC OF TOYOTA PRODUCTION SYSTEM

BY: Prashant Thakur

TOYOTA PRODUCTION SYSTEM (TPS)

CONTENT TABLE:

• History Of Manufacturing Management

• HISTORY (company)

• Goals of TPS

• Toyota Principles

• Toyota Ways

• How to make money ????

• Toyota Production System

• TPS-House

• Main pillar of TPS

• Just-In-Time( Takt time,Pull System,Flow production)

• Heijunka

2Manufacturing Technology

• Waste (INVENTORY)

• Jidoka

• Genchi Genbustu

• Andon Wheel

• Standardization

• Mistake proofing

• Visual management

• Kaizen

• 5’s

• The Environment – Toyota’s commitment

• Health and Safety

• What TPS Means for your Business3Manufacturing Technology

History of Manufacturing Management


• The 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 1950’s 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.


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 employee’s 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.


Section I – Long-term philosophy

• Principle 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 results

• Principle 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-PRINCIPLES


SUCCESS

DEPEND UPON

THE PRINCIPLEs

• Principle 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 partners

• Principle 9: Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.

TOYOTA-PRINCIPLES


• Principle 10: Develop exceptional people and teams who follow your company’s 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 learning

• Principle 12: Go and see for yourself to thoroughly understand the situation (genchigenbutsu).

• Principle 13: Make decisions slowly by consensus, thoroughly considering all options, implement decisions rapidly.

TOYOTA-PRINCIPLES


TheTOYOTA WAY

The 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

ImprovementRespect

For People


CHALLENGE“To maintain a long-term

vision and meet all challenges

with the courage and

creativity needed to realize

that vision.”

KAIZEN“Continuous improvement.

As no process can ever

be declared perfect,

there is always room for

improvement.”

GENCHI

GENCHI GENBUTSU“Going to the source to find

the facts to make correct

decisions, build consensus

and achieve goals.”


Respect

For People

RESPECT“Toyota respects others,

makes every effort to

understand others, accepts

responsibility and does its

best to build mutual trust.”

TEAMWORK“Toyota stimulates personal

and professional growth,

shares opportunities for

development and maximizes

individual and team

performance.”


How to make money?

Traditional pricing strategy: Cost + Profit = Selling price

Example: 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!


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.


Toyota Production System

Definition: 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.


The TPS House


Main Pillars Of TPS

• JUST-IN-TIME

• JIDOKA


• JUST-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

OR• A 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.


JIT Elements Are:

• Takt Time

• Flow Production

• Pull system


• 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.


Takt Time vs Cycle Time

• Takt 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 be outsourced or a need for additional machines to be run in parallel.


FLOW PRODUCTION

• Producing and moving one item at a time (or a small and consistent batch of items) through a series of processing steps as continuously as possible, with each step making just what is requested by the next step.

It is also called the one-piece flow, single-piece flow, and make one, move one.


Flow with JIT

Traditional Flow

CustomersSuppliers

Customers

Suppliers

Production Process (stream of

water)

Inventory (stagnant ponds)

Material

(water in stream)


PUSH vs PULL SYSTEM• Push system : material is pushed into downstream workstations regardless

of whether resources are available

• Pull system: material is pulled to a workstation just as it is needed


• Traditional Manufacturing Way:

Material

Information (Production Schedule)

Work

Station 1

WS 2 WS 3

• One directional flow system:


• Pull (JIT) System

The production of items only as demanded for use or to replace those taken for use.

Material

Information (via Kanban/Card)

Work

Station 1

WS 2 WS 3


HEIJUNKA – LEVELLING THE FLOW

• The term heijunka describes the foundation of the TPS approach.

are produced, often significantly unrelated to demand.• With heijunka a process is designed to switch products easily, producing what is

needed when it is needed, and relying on production.• Any variations in volumes are accommodated by establishing a level-average demand

rate.• It will reduce the ripple effect of the production.


A

A A B B B C

JIT Small Lots

Large-Lot Approach

Time

Time

A A B B B C

A A A B B B B B B C C

JIT produces same amount

in same time if setup times

are lowered

Small versus Large Lots

Small lots also increase flexibility to meet

customer demands


11010

41040

41040

Heijunka = Leveling (Smoothing) Production Schedule using Mixed Model Sequencing = Uniform Plant Loading.

Product Demand RequirementsMonthly Daily

1020200

4020800

4020800

A

B

C

Largest integer that divides into all daily requirements evenly is 10

Product Daily Requirements Divided by 10

A

B

C

Mixed-model sequence

A-B-A-B-A-B-A-B-C Repeat 10 times per day

Determining Production Sequence


• ELIMINATION OF WASTE

Waste – defined as anything that does not add value.


Scrap

Work in process inventory level

(hides problems)

Unreliable Vendors Capacity Imbalances

WHY TOYOTA HATES INVENTORY ????


Scrap

Reducing inventory reveals

problems so they can be solved.

Unreliable Vendors Capacity ImbalancesWIP


KANBAN CARD

• A smooth, continuous and optimized workflow, with carefully planned and measured work-cycle times and on-demand movement of goods, reduces the cost ofwasted time, materials and capacity.

• Team members can concentrate on their tasks without interruption, which leads to better quality, timely delivery, and peace-of-mind for Toyota’s customers.

• In TPS it means having just the right components to build the product.


• JIDOKA……. building in quality

Jidoka translates as “automation” and can be described as“automation with a human touch”.If a defect or error isidentified it is addressed immediately –even if this meanstemporarily stopping production.


• GENCHI GENBUTSU – GOING TO THE SOURCE

• It means going to the actual place to solve the problem.

• which means ‘going to the source’ of the problem and assessing it for yourself rather than relying on information supplied by others, in order to gain a complete and accurate understanding.


ANDON BOARD/WHEEL

• The Andon board is a simple but highly-visible electronic sign displaying the status of production lines.

• It notifies management immediately if a worker has identified a fault, precisely identifying its location.

• Workers take responsibility for production quality, with the power to stop the production line as required.

• The production line will not be restarted until thereason for the fault has been resolved.


STANDARDISATION• key element for quality assurance is a focus on standardization.

• Developing and relying on standardized work tasks not only ensures consistently high levels of quality, but also maintains production pace and provides a benchmark for implementing continuous improvement.


• MISTAKE-PROOFING AND LABELLING

Devices that make it difficult or impossible for a worker to make

typical errors at his or her workstation are a common sight onToyota production lines.

Goal: Finding defectsbefore they occur = Zero Defects


• VISUAL MANAGEMENT• In shop floor the things are visually display so that every one can excess them.• Provide safety features for employs like by visually representing the Heights, how to

carry load, how to move pallet truck etc.• Help's visitor to excess plan without the help of others.• It also applies for tools,materials,documents etc.


QPSDC


A CULTURE OF CONTINUOUS IMPROVEMENT – ‘5S’

• SEIRI – Sifting SEITON – Sorting

• SEISO – Sweeping and cleaning SEIKETSU – Spic-and-span• SHITSUKE – Sustain


The Environment – Toyota’s commitment

• Toyota has a policy in place to reduce CO2 emissions, use resources more efficiently, and reduce environmental risk factors.

• Its policy is to analyze the effects of every stage in its products’ lives: development,

manufacturing, operation, and recycling.• TPS philosophy also includes

the 3Rs – reduce, reuse, recycle

manufacturing sites have all achieved ISO 14001 certification.48Manufacturing Technology

TPS IS CONCERNED WITH Health and Safety

• Toyota maintains health and safety for its team members so they can concentrate on their jobs delivering the best quality products and be more efficient.

• Manufacturing sites have achieved OHSAS 18001 certification –the international standard for occupational health and safety management.


OHSAS 18001 is a British

Standard for occupational health

and safety management systems

http://en.wikipedia.org/wiki/British_Standard

http://en.wikipedia.org/wiki/Management_system

What TPS Means for your Business

• Toyota’s customers know what to expect when they buy from Toyota – a business partner with the strength and flexibility to meet the needs of a changing market

• Quality inherent in Toyota’s products, thanks to the company’s constant striving for improvement, has direct benefits for their customers…

• Costs are kept to a minimum thanks to a good return on investment based on the productivity and reliability of Toyota's products…

• Delivery is on time, and to the expected standard, allowing Toyota's customers to plan and maintain their operations successfully…

• Environmental concerns are shared by Toyota and its customers, from manufacturing through to recycling at end-of-life. Choosing Toyota products is a good choice for the environment…


• Safety is Toyota’s constant concern – both for its employees and for those of its customers.

TPS – A World-Class System 51Manufacturing Technology

BASIC OF TOYOTA PRODUCTION SYSTEM

Engineering

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