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• Information classification: Internal

Toyota Production System & IoT

Stefano Cortiglioni – Toyota Academy Director & TMHE TPS Senior Advisor

Toyota Production System

Agenda

1. Toyota Academy

2. Toyota Principles

3. Introduction of TPS

4. Just In Time

5. Jidoka

6. Smart Factory

Agenda

1. Toyota Academy

4. Just In Time

5. Jidoka

6. Smart Factory

Who we are

Toyota

• Group

Corporations

17Toyota

Chi siamo

Toyota Industries

Corporation

• Total turnover €15.4 Billion

• Total employees 61,200

• 4 business sectors

Automotive 30%

Materials Handling 64 %

Textile machinery 3%

Others 3%

* Figures for FY2018 and 1 Eur = 130JPY

European Customer Centers & Regional Hubs

Hannover

Mjölby

Ancenis

Bologna

Toyota Academy

• Toyota Material Handling ha fondato una

nuova divisione dedicate alla Formazione &

Consulenza.

• TPS Senior Expertise, con oltre 10 anni di

esperienza negli stabilimenti del gruppo, sono I

rappresentati di questa nuova divisione.

• 4 Customer Center coprono le esigenze di

tutte le aree europee

Toyota Material Handling Training & Consulting

Toyota Academy

Le persone al centro

Monozukuri in giapponese significa «Capacità di produrre prodotti di qualità tramite le persone»

Per la Toyota le persone sono la più importante risorsa dell’azienda, quindi è fondamentale:

Coinvolgimento

Sicurezza

Clima aziendale

Ogni anno vengono introdotte più di 300 idee di miglioramento segnalate dagli operatori nel solo stabilimento di Bologna

Toyota Academy

Visual Management

• Con Toyota nasce il concetto di «Fabbrica Parlante»

• Tutte gli indicatori, le attività ed i risultati devono

essere ben visibili e disponibili a tutti

• La misurazione e la visualizzazione sono una attività

costante dei capireparto, in linea con la filosofia

«Tutto quello che non è misurabile non esiste».

• I meeting vengono fatti in fabbrica con il

coinvolgimento diretto degli operatori di produzione

Business areas

▪ Manufacturing – La nostra area di competenza!

▪ Logistics – Our home arena per il business nel material handling!

▪ Process reengineering – Migliorare i processi per migliorare le perfomance!

▪ Training – Gli stabilimenti Toyota come scuola!

Toyota Academy

I Nostri Clienti

Agenda

1. Toyota Academy

3. TPS Outline

4. Just In Time

5. Jidoka

6. Smart Factory

Toyota Way

While keeping harmony with international society. (Sustainability)

Social missions should be

accomplished.

・ contribute to better living of the customers

・ Securing prosperity of the company

・ stabilize living conditions for the employees

In order to accomplish above

Company must make profit and exist continuously.

The Purpose of Company

No cost reduction, no profit increase

Sales price is determined by customers!

= Sales price(1) Cost ＋ Profit

salesprice

profit

(2) cost reduction

(2) Sales price－ Cost = Profit

profitsalesprice

(1) Raise sales price

material

purchase

expenseParts

purchase

Energy

Others

Cost in common

between companies

Cost caused by differences in

production method

Costs depend on Production Method

Cost depends on Production Method

３１

１ 2 3 4

Machining

Stamping Welding

Drilling

WeldingStamping Drilling Machining

Shorter lead time, less labour!

Batch production functional layout (Trad.)

Single piece production, flow layout (TPS)

②Waiting

(time on hand)

Lookout machine

Goods not arrive on time

Waiting for machine work

④ Transportation

Unneeded transport

Delivery here & there

Bad timing

③ Inventory

(stock on hand)

Stagnant/obsocelete

Temporal location

Excess WIP

⑤Motion

Search around (Bad 5S)

Frequent motion (Pick/Put)

Walk empty-handed

⑦Making

defects

Irresponsible action

Aftertreatment of defects

Action for poor quality

① Over-productionis the most severe of wastes for Toyota because it triggers all the

other Mudas!

⑥ Processing

Not Standard work

Excess work

Excess inspection

Over-production causes additional Muda

Why products are over-produced

than its selling volume?

Having excess man-power and

machinery (Overcapacity)

Emergency stock for down time,

defects, and absentees, etc.

Can’t reduce cost

・Problems will be hid and impossible to solve

Muda of over-production is the worst Muda (Waste)

⑦Making

defects

• Information classification: Internal18

~~~~~~~~~~~~~~~~~~~~~~~~~~

Muda of over-production is the worst Muda (Waste)

Japanese lake

Buffer level

Toyota Lean Academy

Here´s the conclusionfrom the participantsof Jeffrey Likers TPS training

(30 people in upperoperations management)

• Come si è potuto ridurre i tempi di pit stop?

❑ Tecnologia?

❑ Aumentando il numero di risorse?

❑ Gerarchia?

❑ Standard e sequenza?

F1 Pit stop

Sicuramente tutti i punti sopra hanno contribuito a rendere più veloce il pit

stop, ma:

• Standard e sequenza (chi e quando fa che cosa) sono i punti più

importanti

CHANGE is Happening FAST…

“Our success is not based on our

ability to simply change.

It is based on our ability to change

faster than our competition.”

Impact of the New Technology

Customers 2020

• Shorter Lead Time

• Wider product offers

• Customizations

Companies 2020

• Lean

• Flexible (Supply chain included)

• Close to the market

Logistic 2020

• Flexible

• Fragmented (Pallet Vs Single Component)

• Efficient

Toyota Pillars

Hoshin Kanri

People Engagement

Genchi

GenbutsuChallenge Kaizen RespectTeamwork

Foundation

Values

Vision Customer Satisfaction

Develo

ZERO defects, ZERO Accident 100% value added One piece flow, on demand

Toyota Organization & Information flow

Directors

Managers

Group Leader

Team Leader

Worker

Hoshin Kanri

Jishuken

Visualization

From ManPower to MindPower

Agenda

1. Toyota Academy

4. Just In Time

5. Jidoka

6. Smart Factory

What comes to mind when you think about

Toyota Lean Academy

Toyota Production System (TPS)

The origin of LEAN!

TOYOTA

PRODUCTION

SYSTEM

HINKING

ROFIT YSTEM

History of TPS

TPS basic Philosophy

Core TPS is only the ”two ”pillars”

Just In

Just In Time JIDOKA

Core TPS is only the ”two ”pillars”

History of TPS

Toyota Lean Logistics Program (TLLP) - Content

Just In Time JIDOKA

Leveled

Production

System

Continuous

Standardized

Flexible

Manpower

Recognize

Abnormality

Taiichi Ohno

What is needed

When it´s needed

In the Qty neededSakichi ToyodaKiichiro Toyoda

Essence of TPS - Visual Management

Standards

Normal vs. abnormal

Target vs. actual

Countermeasures on

Deviation standards

Agenda

1. Toyota Academy

4. Just In Time

5. Jidoka

6. Smart Factory

Just in Time & JIDOKA

Just In Time JIDOKA

Leveled

Production

System

Continuous

Standardized

Flexible

Manpower

Recognize

Abnormality

The pillars consists of the following elements

Leveled production

Just In Time JIDOKA

Leveled

Production

System

Continuous

Standardized

Flexible

Manpower

Recognize

Abnormality

Necessary person, equipment

(truck etc.

Leveled by volumevolume

time(stable volume)

5 truck

volume

Necessary person, equipment(truck etc.)

Not leveled by volume

time(fluctuated volume)

8truck

Not levelled by variaton Levelled by variation

WORKLOAD

NORMAL

CAPACITY

OVERBURDEN ON RESOURCES

IDLE RESOURCES

Pull system

Just In Time JIDOKA

Leveled

Production

System

Continuous

Standardized

Flexible

Manpower

Recognize

Abnormality

< Definition >

Downstream operations go to upstream operations and pick up necessary parts with only necessary

amount. Upstream operations produce only withdrawn amount

< Purpose >

1) Make visible when excess production capacity exists.

2) Prevent over-production. ⇒ optimize stock level

Upstream process Downstream process

Production (Operation) instruction

Production, Operation Pull (conveyance)

Pull system

Push system production method

Supplier

Factory

Control Section

instruction：item, quantity, due date

Control Section issues production instruction of predetermined schedule for all processes. Each process produces to

follow instruction => send to next process => increase work-in- process

3) Just In Time Production method (Pull System)

Control Section

Instruction：item, quantity, due date

Supplier

Factory

Control Section issues shipping instruction to Shipping => Downstream process instructs to Upstream process for

necessary amount. Stock of each process clarify (1) location (2) quantity (3) order to use.

Pull system

Merit of Pull System

(1) reduction of stagnation

(6) visibility for problem/abnormality（flow stops）

(2) optimize amount of work-in-process

(3) reduction of space for stock

(4) reduction of control job work load

(such as Production Control section)

(5) quick reaction for “Sales” change

Pull System

① Production & Transportation instructions

Kanban

The Function of Kanban

③ Tool for Process Kaizen

② Tool for Visual Management

1) Prevent muda of over production

2) Monitor progress and to detect process delays

Pull system – The kanban concept

Kanban system origins from the supermarket concept

Customer Cashier Customer

Factory

Storage

Withdrawal kanban

Production instruction kanban

Just In Time JIDOKA

Leveled

Production

System

Continuous

Standardized

Flexible

Manpower

Recognize

Abnormality

1) Traditional way of production method

#1 process,

ex. Sheet metal cut

#2 process

ex. machining

#3 process

ex. welding

#4 process

ex. assembly

Production method : Lot size production

Efficiency : operator covers many same-type machines

directio

eratio

Continuous Flow

2) Just In Time production

Production method : small lot size production, one piece at a time production

Efficiency : operator covers multiple processes

α product group

C1＆D1

C4＆D4

β product group

A2 B2 C2＆D2

γ product group

A3 B3 C3＆D3

direction of operation

Continuous Flow

Mixed Assembly LineProduction Planning Activities

W1 W2 W3 W4 W5 W6 W7

Traigo 24

Blitz 24

Blitz 48

Traigo 48

Customer daily

Orders

•Different Mix

•Different Option

Available trucksFrozen trucks

Toyota Production System – TMHMI Experience

Production Planning Methods

Consuption

Order point system

Kan-Ban

WEEKLY MRP

Logistic Scheduling: MRP vs JUNJO

JUNJO SYSTEM

• MRP runs once a week

• Suppliers delivery are weekly scheduled

within last Friday before production

• Suppliers receive a weekly shipping

schedule – Frozen period 2 weeks

• 6 days line on sequence frozen period

• Line assembly sequence communicated

every day (6 days rolling)

• Suppliers deliver daily (junjo) according to

line sequence

Production in batches

Mixed Production, ‘pulled’ by customer orders

Just in Time – From push to Pull

• The wide range of products, unstable market and the number

of different configurations requested by customers make

difficult to predict models and volume (Forecast accuracy)

• Move from Make to stock to Make to order was the way to

reduce Finished Good Inventory and unsold trucks

• High flexible production lines has been arranged to produce

all the product range in one piece flow

Cost depends on Production Method - 1 piece flow vs. Batch production

Elapsed

(Minutes)

Continuous flow

One piece flow

A B C D

Different processes

Process time = 1 min/piece

Batch production

Lot size 5 pcs

Elapsed

(Minutes)

Let´s start production of model X !

Just in Time

• The most famous pillar of TPS which the payoff is:

«What you need, When you need, Where you need”

• The just in time approach is driven by logistic transformation

following the 4 key rules:

• Accuracy: Provide only the components related to single order.

• Punctuality: Delivery when we need

• Location: Provide closer the workstation

• Tack Time: Delivery according to the Takt Time

Components stocked close to the production line

Internal Logistic Development

(Production Lines Materials Fulfilment)

• Simple

Contro

• Set-up

• Space

• Huge Operator walking

• Quality: Picking Error

• Limited Product Mix & option

1° Step

Kit & Supermarket development

• Flexible

• Quality (Materials to the single order)

• Available space close to the line

• Operator Walking limited

Contro

• Cart Movement

• Huge quantities of materials over the cart

• Quality (Components for different worstations)

2° Step

box with shutters

• Quality (Material dedicate to single order and workstation)

• Available space close to the line

• Less worker walking

• Sub-assembly lay-out

Contro

• Complexity (Fragmentation, accuracy)

• Movement (kit & returnable box)

PMSC SC

Busy space

45 sq m

Free space

35 sq m

PMSC SC

Busy space

45 sq m

Free space

35 sq m

PMSC SC

Busy space

45 sq m

Free space

35 sq m

PMSC SC

Busy space

45 sq m

Free space

35 sq m

PMSC SC

Busy space

45 sq m

Free space

35 sq m

PMSC SC

Busy space

45 sq m

Free space

35 sq m

Handling Europe

1° Step (2009)

KIT & Supermarket

Handling Europe

Starting point (2005)

Components stock close to the line

2° Step (2012)

Box Kit & Shutter

PMSC SC

Busy space

45 sq m

Free space

35 sq m

PMSC SC

Busy space

45 sq m

Free space

35 sq m

PMSC SC

Busy space

45 sq m

Free space

35 sq m

PMSC SC

Busy space

45 sq m

Free space

35 sq m

PMSC SC

Busy space

45 sq m

Free space

35 sq m

PMSC SC

Busy space

45 sq m

Free space

35 sq m

Junjo (Sequence)

• The production sequence is submitted to the supply chain covering

7 days rolling

• Supplier produce the components related to sequence and deliver,

on daily base, to TMHMI the daily quantities

Picking Incoming

Frames stock layout

Junjo Cont’d

• Components which the daily delivery is not

applicable (i.e distance, delivery cost

optimization, ect) are stocked in apposite

• Logistic operator are in charge to pick the

right components according to the line on

sequence; this activity is named “Jundate”

• Specific conveyor dispatch the components

to the line ready to be assembled to the truck

• As per today set-up, each conveyor loop

cover 3 takt in term of sequence

Agenda

1. Toyota Academy

4. Just In Time

5. Jidoka

6. Smart Factory

Standardized Work

Just In Time JIDOKA

Leveled

Production

System

Continuous

Standardized

Flexible

Manpower

Recognize

Abnormality

Stanadardized Work is the basis of operations to make correct products in the

safest, easiest and most effective way based on the current best practice

1) What is Standardized Work?

Standardized Work means establishing precise procedures for each operator's

work, based on three elements:

2) Three elements of Standardized Work

(1) Takt time

(2) Work sequence

(3) Standard inventory (in-process stock)

Standardized Work

PRINCIPLES

RESULTS

METHODS

Standardized work Without standard

RESULTS

PERSONAL

PERFORMANCE

Just In Time JIDOKA

Leveled

Production

System

Continuous

Standardized

Flexible

Manpower

Recognize

Abnormality

Flexible Manpower

Flexible workforce means to alter (decrease or increase) the number of

operators within a workplace, to adapt to demand changes

Continually optimizing the number of workers in a work place to meet the

type and volume demand imposed on the workplace.

TaktTime

∑CT= Ideal manpower

Flexible Manpower

Flexible work force

Example

1. Demand:150 trucks

∑CT = 500 min

Available schedule time: 2110* min

→ TT = 2110/150 = 14 min

→ ∑CT / TT = 500/14 = 35,7 people needed

2. Demand:100 trucks

∑CT = 500 min

Available schedule time: 2110* min

→ TT = 2110/100 = 21 min

→ ∑CT / TT = 500/21 = 23,8 people needed

* Weekly available time in dayshift

Always operate with

the minimum labour to

reveal waste!

Just In Time JIDOKA

Leveled

Production

System

Continuous

Standardized

Flexible

Manpower

Recognize

Abnormality

Recognize abnormality

Able to operate with

less manpower

No watch over for machine No defects passed on

Separate

Human & Machine work Building in quality

at each process

Produce quality goods

Better products at reasonable price

(1) when processing is finished (2) in case of abnormality

Stop and notify

Factory examples

Poka-Yoke

Jidoka

Leveled Production

Pull SystemContinuous

Flow of ProessStandardized

WorkFlexible

Manpower LineRecognize Abnormality

Safety and Others

Management

Just In Time Others

Jidoka

Leveled Production

Pull SystemContinuous

Flow of ProessStandardized

WorkFlexible

Manpower LineRecognize Abnormality

Safety and Others

Management

Just In Time Others

KAIZEN | Change is a philosophy at Toyota

Kai…

…Change

Zen…

…improving

Kaizen

• One of the most important cultural change

and foundation for TPS

• Kaizen should involve all company

members, involve minor investment and

support the human “genius”

• Best & Smart Kaizen often come from direct

worker

Supplier Continuous Improvement

Supplier

Kaizen

Supplier

Collaboration

MediumProduction

Planning

Integration

IntegrationOptimization and

integration of the

processes

Logistic

Optimization

Kaizen

InnovationCross functional

collaborationHigh

Kansei

Engineering

Simultaneous

Engineering

Toyota Quality

Management

Toyota Production

System

Miuruka

Weak Point

ManagementStandardization

Toyota Production System: The Supply Chain

Supply Process Management through Material & Information Flow Chart

Sub supplier

Cross dock

Inbound Receiving PC store M/H Mfg Quality Fin.Trasnport Stock yard Shipping Outbound

-20 -15 -10 -5 0day

Lead Time

1.Shipment2.Production3.M/Handling4.Inbound Logistics

23456789⓫ Order

TOYOTA

Supplier

Supplier Delivery Continuous Improvement

How we did it?

1) Genchi-Genbutsu: judge the facts in Gemba (shop floor)

2) Mieruka: visualize current status to identify weak points (through the Toyota process check list)

3) Kaizen: promote continuous improvements at Supplier side

4) Partnership development: integrate Suppliers in teamwork

Toyota Production System: The Supply Chain

Agenda

1. Toyota Academy

4. Just In Time

5. Jidoka

6. Smart Factory

Mass Production Lean Production Digitalization

Lean as a Foundation for the digitalization

• Standard product

• Push (Produced by forecast)

• Lot production

• Low people engagement

• Top Down organization

• ManPower

• Customized Product

• One Piece Flow (Pull on Demand)

• People Engagement

• Waste Reduction (Efficiency)

• Kaizen Culture (Perfection)

• MindPower

• Efficiency &

Flexibility

• Process Control

• High Skill Manpower

• Connectivity

• Process Know How

Lean journey support your digitalization

Skill Level

Source: 2017 Osservatorio Industry 4.0 of School of Management by Politecnico di Milano

Lean Manufacturing

Manage the supply chain by digitalization

Cyber Security

Smart Maintenance

Man-Machine Interface

Product Design Integration - Service

New business model for Industry 4.0

Big Data Analyses

Digital architecture for Industry 4.0

Modelling & Simulation

Advanced & Collaborative Robotics

Additive Manufacturing

NEEDS TRAINING

EXTERNAL SUPPORT (Advosr)

NO PLAN

NO ANSWER

Most Important Competence for IoT

What competence for IoT Transformation

Smart Tecnologies

Source: MIP

Key Points

• Smart technologies start mainly from IT

prospect with focus on

• New product development

• Smart factory data analyses

Data analyses were the main focus

• No Supply chain

• No Major impact on operations equipment

Smart Tecnologies

Source: MIP

Key Points

• Advanced Automation (Ex. Collaborative

robot) & Additive Manufacturing

introduced on manufacturing area

• IT Smart technologies introduced to the

supply chain

• Slight introduction of the Advanced

Human-Machine Interface (AR & VR

Technologies)

Smart Tecnologies

Source: MIP

Key Points

• Extension of the smart technologies to

the supply chain

• Smart factory fully integrated with the

smart technologies

• Additive manufactories consolidated for

new product development

Smart Tecnologies

Lean & Augmented Reality

• Advanced Human Machine interface should have wide application in the industrial sector

• Augmented reality could support the daily job and provide many information to the associates with great benefit in term of Safety, Level of Service and Efficiency

• Lean & AR point of contacts:

• Training

• Provide Standard (Instruction, Check list, Information)

• Visual Management (KPI’s, Chart, Countermeasures,

Trend and history)

• Lean Logistic (Picking list, Kanban, Components

Localization, Routing, Ect.)

• TPM (Equipment parameter, Maintenance information, Failure,

Smart Technologies

Source: 2017 Osservatorio Industry 4.0 of School of Management by Politecnico di Milano

Advanced Human-Machine Application

FashionistasDigital

Masters

Beginners Conservatives

The Digital Mastery Framework*

* G. Westerman, M. Tannou, A. McAfee

Leadership Capabilities

Digital and Leadership

capability should be combined

in order to provide values for

the customer

The Fourth Industrial Revolution

However, while companies are increasingly gathering IoT data, few are analysing it as well the

could be. They have data but they not converting it to information. As of 2016, while 51% of

firms gathering IoT data, only 29% were using it to inform real-time decision making

(Forrester Research)

Data ≠ Information

The Fourth Industrial Revolution

Lean Journey

Continuous Impr.

Daily Mgt.

Standardized work

Continuous flow

Levelling

Weak point Mgt.

Quality Management

Pull system

Work Scheduling

Hoshin Kanri

Development of Digital Strategy

Lean 4.0

Toyota Academy

Smart watches and devices

provides us many information about

our calories consumption….

But…..

Visualized on the steps of the metro

are most persuasive

The power of visualization

“Having no problem is the

biggest problem of all.”

- Taiichi Ohno

Thank You

toyota production system & iot & iot - logimaster_1.pdfwaiting for machine work ....

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