toyota production systems final
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Toyota Production SystemsToyota Production Systems
Presented by :
Sameer H Panchamukhi
070908164
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About ToyotaAbout Toyota
y Market capitalization of over $ 105 billion;
over 2,80,000 employees
y The Largest automobile manufacturer in
the world; recently beats GM
y Annual Profit margin: 8.3 times higher
than industry average
y Global Vehicle sale of over 8 million per
year in 170 countries
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What is TPS ?What is TPS ?
y TheToyota Production System (TPS) is an
integrated socio-technical system,
developed by Toyota, that comprises its
management philosophy and practices
y Socio-technical systems (STS) is an
approach to complex organizational work
design that recognizes the interactionbetween people and technology in
workplaces
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Father of TPS:Father of TPS: TaiichiTaiichi OhnoOhno
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How did it start?How did it start?
y A delegation from Toyota (led by Ohno)visited the United States in the 1950s
y They visited Ford Motor Companys
automotive plants in Michigany Despite being the industry leader, many of
the methods in use were not veryeffective
y Large amounts of inventory on site
y Large amount of rework at the end of theprocess
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y
The most important discovery in the US :The Supermarket
y Delegation was inspired by how they only
reordered and restocked goods once they
had been bought by customers
y They applied the lesson by reducing the
amount of inventory they would hold only
to a level that its employees would needfor a small period of time, and then
subsequently reorder
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7 principles of TPS :7 principles of TPS :
1. Reduced Setup Times
2. Small-Lot Production
3.Employee Involvement andEmpowerment
4. Quality at the Source
5. Equipment Maintenance
6. Pull Production
7. Supplier Involvement
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1. Reduced1. Reduced SetupSetup TimesTimes
y All setup practices are wasteful
y They add no value
y
They tie up labor and equipmenty By organizing procedures, using carts,
and training workers to do their own
setups, Toyota managed to slash setup
times from months to hours andsometimes even minutes.
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2. Small2. Small--Lot ProductionLot Production
Producing things in large batches results in:
y huge setup costs
y
high capital costy larger inventories
y extended lead times
y
larger defect costs
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3. Employee Involvement and3. Employee Involvement and
EmpowermentEmpowermenty Toyota organized their workers by
forming team
y Gave them the responsibility and training
to do many specialized tasks
y Responsibility for housekeeping and
minor equipment repair
y Each team has a leader who also works asone of them on the line
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4. Quality at the Source4. Quality at the Source
y To eliminate product defects, they must
be discovered and corrected as soon as
possible
yWorkers are in the best position to
discover a defect
y Hence they are assigned the responsibility
to fix it immediatelyy If not, the worker can halt the entire line
by pulling a cord
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5. Equipment Maintenance5. Equipment Maintenance
yWorkers are assigned primary
responsibility for basic maintenance
yWhy : Since they are in the best position
to detect signs of malfunctions
y Maintenance specialists diagnose and fix
only complex problem
y Main advantage : They train the workers inmaintenance
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6. Pull Production6. Pull Production
yWhy : To reduce inventory holding costs
and lead times
y Quantity of work performed at each
stage of the process is dictated solely by
demand for materials from the immediate
next stage
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7. Supplier Involvement7. Supplier Involvement
y Toyota treats its suppliers as partners
y Trained in ways to reduce setup times,
inventories, defects, machine breakdowns
etc.
y Advantage : Helps deliver their best
possible parts
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TPS HouseTPS House
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Concepts of ToyotaConcepts of Toyota
yJidoka
yJust In Time ( JIT )
y Kanban
y The 5-Why investigation
y The 5 S program
y Andon
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JidokaJidoka
y Automation with a human touch:equipment endowed with humanintelligence to stop itself when it has a
problemy Culture of highlighting problems and
stopping production to fix problems
y Traditional production view: Do not shutdown the assembly line! The managersare judged by their ability to deliver thenumbers
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Just In Time ( JIT )Just In Time ( JIT )
Just-in-Time means making only :
yWhat is needed
yWhen it is needed
y In the amount needed
This helps in order to :
y Eliminate waste
y Inconsistenciesy Unreasonable requirements
Results in improved productivity
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KanbanKanban
y Idea borrowed from super markets so
called super market method
y At Toyota, an empty bin (a kanban) is sent
upstream after a demand instance
y It is a signal to refill it with a specific
number of parts
y Advantage : Reduces excess production
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5 5 Why InvestigationWhy Investigation
Level of ProblemCorresponding Level of
Countermeasure
There is a puddle of oil on the shop floor Clean up the oil
Because the machine is leaking oil Fix the machine
Because the gasket has deteriorated Replace the gasket
Because we bought gaskets made of
inferior materialChange gasket specifications
Because we got a good deal (price) onthose gaskets
Change purchasing policies
Because the purchasing agent gets
evaluated on short-term cost saving.
Change the evaluation policy for
purchasing agents
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5 S Program 5 S Program
y Sort (seiri): Sort out unneeded items
y Straighten (seiton) : Have a place for
everything
y Shine (seiso): Keep the area clean
y Standardize (seiketsu): Create rules and
standard operating procedures
y Sustain (shitsuke): Maintain the system
and continue to improve it
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AndonAndon
yWhen the equipment shuts down because
of a quality problem, flags or light, usually
with accompanying music, signal that help
is needed to solve the problem
y This signaling system is called the andon
system
y At Toyota, the andon is called a fixed-position line stop system.
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yWhen a workstation in the assembly linesignals a problem, the production line isnot stopped immediately
y If the problem is small enough that can besolved in the lead-time between twoworkstation, 100% quality is achievedwithout stopping the line
y If the problem is complex, the teamleader can conclude that the line shouldstop.
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ConclusionConclusion
Myth Reality
What TPS Is Not What TPS Is
- A tangible recipe for success - A consistent way of thinking
- Amanagement project or program - A total management philosophy
- A set of tools for implementation - Focus on total customer satisfaction
- A System for production floor only. - An environment of teamwork and improvement
- Implementable in a short-or mid-term period - A never-ending search for a better way
- Quality built in process
-Organized, disciplined Workplace.
- Evolutionary
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