8/6/2019 Production Toyota
1/18
Taiichi Ohno and ToyotaTaiichi Ohno and Toyota
Production SystemProduction System
Presented By
Raj Kishor Singh
ACCMAN Institute of Management
8/6/2019 Production Toyota
2/18
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.
8/6/2019 Production Toyota
3/18
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.
8/6/2019 Production Toyota
4/18
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.
8/6/2019 Production Toyota
5/18
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.
8/6/2019 Production Toyota
6/18
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.
8/6/2019 Production Toyota
7/18
OHNOS SEVEN WASTESOHNOS SEVEN WASTES
Defects
Over Production
Waiting Time
Transporting
Movements
Inappropriate Processing
Inventory
8/6/2019 Production Toyota
8/18
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.
8/6/2019 Production Toyota
9/18
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.
8/6/2019 Production Toyota
10/18
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!
8/6/2019 Production Toyota
11/18
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.
8/6/2019 Production Toyota
12/18
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.
8/6/2019 Production Toyota
13/18
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.
8/6/2019 Production Toyota
14/18
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.
8/6/2019 Production Toyota
15/18
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.
8/6/2019 Production Toyota
16/18
Pull SystemPull System
It is the system of manufacturing based on the customer
demand for the product.
Demand AssemblyParts
Supply
Raw
Materials
8/6/2019 Production Toyota
17/18
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
8/6/2019 Production Toyota
18/18
Top Related