Taiichi Ohno & the Toyota Production System

Presented by: • Gaurav Gupta

Introduction

• Toyota’s History

• Toyota’s first export to U.S. was not successful

• In 2004 Toyota’s net earning was double the combined net earnings of automobile majors.

Taiichi Ohno

• Born in 1912 in China.

• He introduced JIT and Kanban system.

• In 1975, Ohno became the Vice President of Toyota.

• Died in 1990 in Toyota city.

The Toyota Production System(TPS)

• Collaborative effort of Ohno , Sakichi , Kiichiro and Eiji.

• Focus was on ‘Reduction of cost through elimination of the waste.

• TPS consists of two parts : ‘the hard or the technical part’ and ‘the soft or people related part’

Just In Time (JIT)• JIT was the foundation of

the TPS.

• Underlying Principle :“Produce only the necessary products, at the necessary time and in the necessary quantity.”

JIT governed Toyota’s buy strategy.

• The concept of JIT was based on the

‘Reverse Reasoning’

• Based on the ‘PULL’ system of manufacturing and not on ‘PUSH’ system.

• Complexity of the process gave birth to the ‘Kanban System.’

DEMAND ASSEMBLY DELIVERY OF PARTS

SUPPLY BY SUPPLIER

The word Kan means "visual" in Japanese and the word "ban" means "card". So Kanban

refers to "visual cards".

What Are The Benefits of Kanban?

• Reduces inventory and product obsolescence

• Reduces waste and scrap

• Provides flexibility in production

• Increases Output

• Reduces Total Cost

KAIZEN

• Means ‘continuous improvement’.

• Eliminating all ‘waste’.• Observation.• Understand the problem.• Commitment of the

management.• Poka-yoke or error

proofing.

Pre-requisites for kaizen

• Discard conventional fixed ideas.• Don’t make excuses.• Correct it right away , if you make

a mistake.• Seek the wisdom of ten people

rather than that of one.• Think of how to do it , not why it

cannot be done.• Ask ‘Why?’ five times.

HUMAN ELEMENTS

•Team work

•Safety work place

•Visible control

•Conduct production activities.

JIDOKA

• Andon cord

• Training & development

• Physical fitness

• Preference to engineers.

Ohno’s Seven Wastes

• Defects• Over Production • Waiting• Transporting• Movement• Inappropriate Processing• Inventory

Push System

Raw material

Parts Manufacture Assembly Product

Pull System

Demand Assembly Parts Supply Raw Materials

Conclusion

• Benefits

• Challenges

Thank You