Toyota Production System 1

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    The Toyota Production System

    High Quality and Low Cost

    Readings;

    James Womack, Daniel T. Jones and Daniel Roos,The Machine that Changed the World, 1990, Ch 3 and 4

    Kenneth N. McKay, The Evolution of Manufacturing Control-

    What Has Been, What Will Be Working Paper 03 2001

    Michael McCoby, Is There a Best Way to Build a Car?HBR Nov-Dec 1997

    COST VS

    DEFECTS

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    Consumer Reports

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    Gains of imports

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    The Toyota Production System

    Historical View

    Performance measures

    Elements of TPSDifficulties with Implementation

    Six Eras of Manufacturing Practice

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    Three Major Mfg Systems

    from 1800 to 2000

    1800 1900 2000

    Machine tools, specialized machine tools, Taylorism, SPC, CNC, CAD/CAM

    InterchangeableParts at U.S.

    Armories

    MassProductionat Ford

    ToyotaProductionSystem

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    Key Elements for New Mfg Systems

    Japanese

    Banks

    Taiichi

    Ohno

    CNC,Integrationof Labor

    Jobs,

    Security

    Post WarToyotaProductionSystem

    EarningsHenry

    Ford

    Moving

    AssemblyLine,etc

    $5/day

    Immigrant

    Trans-

    portation

    Mass

    Production

    U.S.GovtRoswellLee/

    John

    Hall

    MachineTools,

    Division of

    Labor

    YankeeIngenuityMilitaryInterchange-able Parts

    ResourcesLeaderEnablingTechnology

    WorkForceMotivation

    Need ofSociety

    Element/

    System

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    Q. By what method did these

    new systems come about?

    A. Trial and Error

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    History of the Development of the ToyotaProduction System ref; Taiichi Ohno

    1945 1975

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    The Toyota Production System

    Historical View

    Performance measures

    Elements of TPSDifficulties with Implementation

    Six Eras of Manufacturing Practice

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    Japanese Japanese in American in A ll Europei n J apa n North A me rica North A me rica

    Performance:

    Producvitity (hours/Veh.) 16.8 21.2 25.1 36.2

    Quality (assembly

    defects/100 vehicles) 60 65 82.3 97

    Layout:

    Space (sq.ft./vehicle/yr) 5.7 9.1 7.8 7.8

    Size of Repair Area (as %

    of assembly space) 4.1 4.9 12.9 14.4

    Inventories(days for 8

    sample parts) 0.2 1.6 2.9 2

    Work Force:

    % of Work Force in Teams 69.3 71.3 17.3 0.6

    Job Rotation (0 = none,

    4 = frequent) 3 2.7 0.9 1.9

    Suggestions/Employee 61.6 1.4 0.4 0.4

    Number of Job Classes 11.9 8.7 67.1 14.8

    Training of New Production

    Workers (hours) 380.3 370 46.4 173.3

    Absenteeism 5 4.8 11.7 12.1

    Automation:

    Welding (% of direct steps) 86.2 85 76.2 76.6

    Painting(% of direct steps) 54.6 40.7 33.6 38.2

    Assembly(% of direct steps) 1.7 1.1 1.2 3.1

    Source: IMVP World Assembly Plant Survey, 1989, and J. D. Power Initial Quality Survery, 1989

    Summary of Assembly Plant Characteristics, Volume Producers,1989

    (Average for Plants in Each Region)

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    Cost Vs DefectsRef. Machine that Changed the World Womack, Jones and Roos

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    Cost Vs AutomationRef. Machine that Changed the World Womack, Jones and Roos

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    The Toyota Production System

    Historical View

    Performance measures

    Elements of TPSDifficulties with Implementation

    Six Eras of Manufacturing Practice

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    How do you get this kind of

    performance?Womack, Jones and Roos

    J T. Blacks 10 Steps

    Demand Flow Technologys 9 Points

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    Womack Jones and Roos

    New Technology? No silver bullet

    Automation?

    Yes, but integrated with system Standardized Production?

    Not in the usual dont stop the line sense

    Lean Characteristics?

    Integration of Tasks (opposite of deskilling) Identification and removal of defects (stop the line!)

    kaizen institutionalizing change

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    J T. Blacks 10 StepsRef; JT. Black Factory with a Future 1991

    1. Form cells

    2. Reduce setup

    3. Integrate quality control

    4. Integrate preventive maintenance5. Level and balance

    6. Link cells KANBAN

    7. Reduce WIP

    8. Build vendor programs

    9. Automate

    10. Computerize

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    Demand Flow Technologys

    9 Points1. Product Synchronization

    2. Mixed Model Process Maps

    3. Sequence of Events

    4. Demand at Capacity5. Operational Cycle Time

    6. Total Product Cycle Time

    7. Line Balancing

    8. Kanbans9. Operational Method Sheets

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    Current Value Stream Map

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    Future Value Stream Map

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    J T. Black 1, 2

    1. Form Cells

    Sequentialoperations, decouple

    operator frommachine, parts infamilies, single pieceflow within cell

    2. Reduce Setup

    Externalize setup toreduce down-time

    during changeover,increases flexibility

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    TPS Cell

    ToyotaC

    ell,onepartisproduced

    forevery

    triparound

    thecell

    J T. Black

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    Standardized Fixtures

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    J T. Black 3, 4

    3. Integrate qualitycontrol

    Check part quality at

    cell, poke-yoke, stopproduction whenparts are bad

    4. Integrate preventivemaintenance

    worker maintains

    machine , runs slower

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    J T. Black 5, 6

    5. Level and balance

    Produce to Takttime, reduce batch

    sizes, smoothproduction flow

    6. Link cells- Kanban

    Create pull system Supermarket

    System

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    Balancing and Leveling

    Balanced line: each process has the samecycle time. Match process time toassemble time, match production rate torate of demand (Takt time)

    Leveled Line: each product is produced inthe needed distribution. The process must

    be flexible to do this.

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    J T. Black 7, 8

    7.Reduce WIP

    Make system reliable,build in mechanisms

    to self correct

    8. Build Vendorprogram

    Propagate low WIP

    policy to yourvendors, reducevendors, make on-time performance part

    of expectation

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    Some Basics Concepts of TPS

    Smooth Flow and Produce to Takt Time

    Produce to Order

    Make system observable and correct

    problems as they occur

    Integrate Worker Skills

    Institutionalize change

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    Two Examples;

    Takt Time

    Pull Systems

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    Takt Time:

    demand time interval

    DemandProduct

    TimeAvailableTimeTakt =

    Calculate Takt Time per month, day,year etc. Available time includes allshifts, and excludes all non-productive time (e.g. lunch, clean-upetc). Product demand includes over-production for low yields etc.

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    Takt Time

    Automobile Assembly Line; Available time = 7.5 hr X 3shifts = 22.5 hrs or 1350 minutes per day. Demand =

    1600 cars per day.Takt Time = 51 sec

    Aircraft Engine Assembly Line; 500 engines per year.2 shifts X 7 hrs => 14 hrs/day X 250 day/year = 3500hrs.

    Takt time = 7 hrs.

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    Engines shipped over a 3 month period

    at aircraft engine factory B

    0

    2

    4

    6

    8

    10

    12

    7-Jun 15-Jun 23-Jun 30-Jun 7-Jul 15-Jul 24-Jul 31-Jul 7- Aug 15-Aug 24-Aug 31-Aug

    Weeks

    en

    sp

    p

    we

    month 1 month 2 month 3

    Factory B

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    Engines shipped over a 3 month periodat aircraft engine factory C

    0

    1

    2

    3

    4

    5

    6

    7

    may june july augustweeks

    enginesshipped

    Factory C

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    On-time performance of engine

    plants

    A B C0%

    20%

    40%

    60%

    80%

    100%

    enginesdelvered

    A B C

    on

    time

    late

    on

    time

    on

    time

    late

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    Push and Pull Systems

    Machines

    Parts Orders

    1 2 3 4