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    Taiichi Ohno and ToyotaTaiichi Ohno and Toyota

    Production SystemProduction System

    Presented By

    Raj Kishor Singh

    ACCMAN Institute of Management

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    EXECUTIVE SUMMARYEXECUTIVE SUMMARY

    In 2004 Toyota motor achieve a record results in revenuesand operating Income of $163 billion & $15 billion highrespectively.

    Contribution of Toyota production system (TPS) introductionof just in time (JIT) & kaizen to develop and improve theproduction system.

    Introduction of Kanban to minimize the shortcomings of JIT.

    Taiichi Ohno was the person to develop the TPS by reducingwastes.

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    Toyotas competitors also acknowledged the TPS to be the

    good One.

    TPS involves a flexible batch process.

    Introduction of Jidoka to improve the TPS.

    Keeping in mind the customers demand and to reduce

    the defects in the production process Toyota introduce

    lean manufacturing process.

    Toyota follows the process of craft and mass production

    to add a bit of betterment in the production process.

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    HistoryHistory In 1897:- Sakichi Toyoda diversified his business.

    In 1902:- SakichiToyoda formed the parent group ofTOYOTA

    In1926:-Formation Toyoda Automatic Loom Works (TALW) to

    manufacturing Loom workers

    In 1933:- Formation ofAutomobile department within TALW.

    In 1935:- First Passenger car prototype was developed.

    In 1936:- Sakichi sold the patent rights of his Automatic loom to a UKbased Company.

    In 1947:- The passenger cars production began.

    In 1950-1955:- Foundation ofKanban System.

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    In 1957:- Eijji RenamedToyota as TheToyota Company

    In 1968:- Toyotas first export to the USA.

    In 1970:- Major boost in theJapan due to oil crises.

    In 1980:- Toyota brought TPS in the USA with a Joint Venture to the GM (by

    Taiichi Ohno)

    In 1983:- Companys name changed to Toyota motor Corporation.

    In 1988:- Toyota Opened its New plant in Georgetown.

    In1999-2000:- Toyota listed on NYSE & LSE and become one of the top

    manufactures of cars in the world.

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    TOYOTA PRODUCTION SYSTEMTOYOTA PRODUCTION SYSTEM

    (TPS)(TPS) It tries to overcome the deficiencies or limitation of production ,

    while making the most of the available resources.

    Also tries to increase the efficiency of production by eliminatingwastes and lowering costs.

    JIT , KANBAN and KAIZEN involve in developing TPS.

    TPS involves a flexible batch process, with multipurpose capitalequipment and cross trained workers supplied by JIT inventory.

    Also focuses on developing strong relations with suppliers.

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    OHNOS SEVEN WASTESOHNOS SEVEN WASTES

    Defects

    Over Production

    Waiting Time

    Transporting

    Movements

    Inappropriate Processing

    Inventory

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    JUST IN TIMEJUST IN TIME

    JIT was the foundation of the TPS.

    Eliminate waste of all kind by producing or supply

    materials only when they were needed and not andearlier.

    Only the necessary products, at the necessary time and

    in the necessary quantity to keep stock at minimum.

    Smoother process.

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    KanbanKanban In the kanban system, workers of a process needing

    components,wrote the details about the kinds of units needed

    and the quantity in which they were needed on a card called

    the kanban.

    A set comprised two types of kanban:-

    The Withdrawal kanban

    The Production kanban

    By early 2000s,kanban has evolved into a sophisticated

    inventory management tool that ensure production in the

    required quantities at the right time in manufacturing process

    within a factory.

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    OhnosOhnos KanbanKanban Formulae:Formulae:

    Y= Number ofY= Number of KanbanKanban

    D= Demand per unit timeD= Demand per unit time

    TwTw=waiting time for=waiting time for kanbankanban

    TpTp=Processing time=Processing timea=Container capacitya=Container capacity

    =Policy variable=Policy variable

    a

    TpTwDY

    )1)(( E!

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    Kaizen:Kaizen:

    y Kaizen means continous improvement.

    y Kaizen required all employees to participate ineliminating all activities that were classified aswastes from the production system.

    y Kaizen is a continous process, and not periodic.

    y Kaizen involved a great deal of observation ofworkers and their work process.

    y Why methodology.

    y The focus of Kaizen was not to identify a problemand to develop a solution, but to understand theproblem all its alternatives thoroughly.

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    The Human Element andThe Human Element and JidokaJidoka::--

    Human element played an important role in TPS:

    y Shifinka:-

    Most of the workers were cross-trained

    and could be shifted between different productionlines. Any employee at any level of hierarchy had aright to make improvement in process.

    y Jidoka:-

    This empowered workers to stop the

    equipment or operation in a line whenever anabnormal or defective condition arose in the line.

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    Jidoka SystemJidoka System

    It is the system to get a quality product

    It minimizes the defects

    It creates quick signal towards any kind of problem

    incurred in the manufacturing process. Creates motivation in the mind of the employees as

    the optimal perfection is there.

    Reduces the labor cost up to some extent.

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    LEAN MANUFACTURING

    JOHN CRAFCRICK first coined the term lean manufacturing in the late 1980s.

    The concept was based on the philosophy of Toyota production system.

    It manufactured better quality products with lower defect rate and at greater speedthan its competitors .

    Lean manufacturing is lean because it uses less of every thing half the manufacturing space,

    half the investment tools half the engineering hours and half the time to produce goods that

    have fewer defects-in accordance with the customer demand.

    Lean manufacturing much more flexible than its predecessors.

    The main principle of lean manufacturing were no waiting time minimal inventory,

    pull based manufacturing, line balancing smaller batches, and lower process time.

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    CRAFT MASS PRODUCTION

    In craft production producers uses highly skilled workers and simple, but flexebile tools.

    It produces exactly what the customer ask for- one item at a time.

    Exotic sports cars are an example of craft manufacturing.

    In mass production the producer uses narrowly skilled professionals to design products

    made by unskilled workers, operating expensive single purpose machines.

    Products are churned out in a standardized form in very high volumes.

    Mass producer keeps standard design in production as long as possible.

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    Pull SystemPull System

    It is the system of manufacturing based on the customer

    demand for the product.

    Demand AssemblyParts

    Supply

    Raw

    Materials

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    Push SystemPush System

    In this manufacturing system, the raw materials are

    brought into certain product line and get the products

    by following certain production line

    Rawmaterials

    PartsManufacture

    Assembly Product

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