BASIC OF TOYOTA PRODUCTION SYSTEM

This slide contain the main term used in Toyota production system (TSP),and their basic principle .

1. BY : Prashant Thakur TOYOTA PRODUCTION SYSTEM (TPS)

2. CONTENT TABLE: History Of Manufacturing Management HISTORY (company) Goals of TPS Toyota Principles Toyota Ways How to make money ???? T oyota Production System TPS-House Main pillar of TPS Just-In-Time( Takt time,Pull System,Flow production) Heijunka 2 Manufacturing Technology

3. Waste (INVENTORY) Jidoka Genchi Genbustu Andon Wheel Standardization Mistake proofing Visual management Kaizen 5’s The Environment – Toyota’s commitment Health and Safety What TPS Means for your Business 3 Manufacturing Technology

4. History of Manufacturing Management 4 Manufacturing Technology

5. The T oyota Production System (TPS) arose out of necessity in response to the circumstance surrounding the company. Many of the foundational concepts are old and unique to T oyota while others have their roots in more traditional sources. The oldest part of the production system is the concept of Jidoka which was created in 1902 by Toyota founder Sakichi Toyota. The most famous element of the TPS is no doubt the Just-in-Time pillar of the production system. Everything was expected to be procured just in time and not too early or too late. Later elements developed in the 1950’s including takt time,standardized work, kanban , and supermarkets added to the basis for JIT. There are also many other tools and techniques that were developed in Toyota such as 7 Wastes,Standardized Work, 5S, SMED, Visual Control, Error Proofing, as well as many others. 5 Manufacturing Technology

6. GOALS OF TPS The goal of the Toyota Production System is to provide products at world class quality levels to meet the expectations of customers, and to be a model of corporate responsibility within industry and the surrounding community. The Toyota Production System historically has had four basic aims that are consistent with these values and objectives: The four goals are as follows: 1 . Provide world class quality and service to the customer. 2. Develop each employee’s potential, based on mutual respect, trust and cooperation. 3. Reduce cost through the elimination of waste and maximize profit 4. Develop flexible production standards based on market demand . 6 Manufacturing Technology

7. Section I – Long-term philosophy Principle 1 : Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals. Section II – The Right processes will produce the right results Principle 2 : Create continuous process flow to bring problem to the surface. Principle 3 : Use “pull” system to avoid overproduction. Principle 4 : Level out the workload ( heijunka ). (work like a tortoise not the hare.) Principle 5 : Build the culture of stopping to fix problems to get quality right the first time. TOYOTA-PRINCIPLES 7 Manufacturing Technology SUCCESS DEPEND UPON THE PRINCIPLEs

8. Principle 6 : Standardize tasks are the foundation for continuous improvement and employee empowerment. Principle 7 : Use visual control so no problems are hidden. Principle 8 : Use only reliable, thoroughly tested technology that serves your people and processes. Section III – Add value to the organization by developing your people and partners Principle 9 : Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. TOYOTA-PRINCIPLES 8 Manufacturing Technology

9. Principle 10 : Develop exceptional people and teams who follow your company’s philosophy. Principle 11 : Respect your extended network of partners and suppliers by challenging them and helping them improve. Section IV – Continuously solving root problem drives organizational learning Principle 12 : Go and see for yourself to thoroughly understand the situation ( genchi genbutsu ). Principle 13 : Make decisions slowly by consensus, thoroughly considering all options, implement decisions rapidly. TOYOTA-PRINCIPLES 9 Manufacturing Technology

10. The TOYOTA WAY The five core values of The Toyota Way are shared and practiced by Toyota employees at every level in their daily work and relations with others This is how Toyota is able to deliver sustainable customer satisfaction. Continuous Improvement Respect For People 10 Manufacturing Technology

11. CHALLENGE “ To maintain a long-term vision and meet all challenges with the courage and creativity needed to realize that vision.” KAIZEN “Continuous improvement. As no process can ever be declared perfect, there is always room for improvement.” GENCHI GENCHI GENBUTSU “Going to the source to find the facts to make correct decisions, build consensus and achieve goals.” Continuous Improvement 11 Manufacturing Technology

12. Respect For People RESPECT “Toyota respects others, makes every effort to understand others, accepts responsibility and does its best to build mutual trust.” TEAMWORK “Toyota stimulates personal and professional growth, shares opportunities for development and maximizes individual and team performance.” 12 Manufacturing Technology

13. How to make money? Traditional pricing strategy: Cost + Profit = Selling price Example : When the cost goes up, the product selling price is raised to reflect the higher costs and maintain the desired level of profit. Some even argues that the profit added should be large enough to cover potential losses if the product does not sell well. Toyota accepts neither this formula nor these arguments! 13 Manufacturing Technology

14. Toyota's philosophy Selling price – Cost = Profit Customers decide the selling price . Profit is what remains after subtracting the cost from it . The main way to increase profit is to reduce cost. Consequently, cost reduction through waste elimination should have the highest priority. Toyota's paradox: Reducing cost (waste), will reduce lead time while increasing quality and customer satisfaction. How? We will discuss it soon. 14 Manufacturing Technology

15. Toyota Production System Definition : The production system developed by Toyota Motor Corporation to provide best quality, lowest cost, and shortest lead time through the elimination of waste. The Toyota Production System empowers team members to optimize quality by constantly improving processes and eliminating unnecessary waste in natural, human and corporate resources . It entrusts employees with well-defined responsibilities in each production step and encourages every team member to strive for overall improvement . 15 Manufacturing Technology

16. The TPS House 16 Manufacturing Technology

17. Main Pillars Of TPS JUST-IN-TIME JIDOKA 17 Manufacturing Technology

18. JUST-IN-TIME- smooth , continuous, optimized workflows ………………. JIT is a manufacturing philosophy involving an integrated set of procedures/activities designed to achieve a volume of production using minimal inventories OR A philosophy that seeks to eliminate all types of waste, including carrying excessive levels of inventory and long lead times . Takes its name from the idea of replenishing material buffers just when they are needed and not before or after . Best applied to a production system, such as automobile assembly, that would be considered repetitive, such as a flow shop. 18 Manufacturing Technology

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20. JIT Elements Are : Takt Time Flow Production Pull system 20 Manufacturing Technology

21. TAKT TIME ( Heartbeat of production ) Takt is the rate of customer demand – essentially, what the market is requiring be produced. It is the basis on which we can create flow within our work-cells and throughout our whole value chain from raw materials to customer delivery. Takt time is the available working time for production divided by the actual average daily demand for our product(s) expressed in minutes. this gives us the customer demand rate for use throughout our organization and the supply chain. The Takt time also forms the basis for enabling the design and balancing of our work-cells and production lines in an efficient manner. 21 Manufacturing Technology

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23. Takt Time vs Cycle Time Takt time should not be confused with machine cycle time; machine cycle time is the time taken to produce a part, this could exceed takt time in some cases which would mean that the process would be incapable of producing enough products within the available time . Where cycle times exceed your Takt time there is a need for machines to either be run on additional shifts to build stock, the product to be outsourced or a need for additional machines to be run in parallel. 23 Manufacturing Technology

24. FLOW PRODUCTION Producing and moving one item at a time (or a small and consistent batch of items) through a series of processing steps as continuously as possible, with each step making just what is requested by the next step. It is also called the one-piece flow, single-piece flow, and make one, move one . 24 Manufacturing Technology

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26. Flow with JIT Traditional Flow Customers Suppliers Customers Suppliers Production Process (stream of water) Inventory (stagnant ponds) Material (water in stream) 26 Manufacturing Technology

27. PUSH vs PULL SYSTEM Push system : material is pushed into downstream workstations regardless of whether resources are available Pull system: material is pulled to a workstation just as it is needed 27 Manufacturing Technology

28. Traditional Manufacturing Way: Material Information (Production Schedule) Work Station 1 WS 2 WS 3 One directional flow system: 28 Manufacturing Technology

29. Pull (JIT) System The production of items only as demanded for use or to replace those taken for use. Material Information (via Kanban/Card) Work Station 1 WS 2 WS 3 29 Manufacturing Technology

30. HEIJUNKA – LEVELLING THE FLOW The term heijunka describes the foundation of the TPS approach. It is the opposite of mass production series , in which high volumes of a single product are produced , often significantly unrelated to demand. With heijunka a process is designed to switch products easily, producing what is needed when it is needed, and relying on production. Any variations in volumes are accommodated by establishing a level-average demand rate . It will reduce the ripple effect of the production. 30 Manufacturing Technology

31. A A A B B B C JIT Small Lots Large-Lot Approach Time Time A A B B B C A A A B B B B B B C C JIT produces same amount in same time if setup times are lowered Small versus Large Lots Small lots also increase flexibility to meet customer demands 31 Manufacturing Technology

32. Heijunka = Leveling (Smoothing) Production Schedule using Mixed Model Sequencing = Uniform Plant Loading. Product Demand Requirements Monthly Daily A B C Largest integer that divides into all daily requirements evenly is 10 Product Daily Requirements Divided by 10 A B C Mixed-model sequence A-B-A-B-A-B-A-B-C Repeat 10 times per day Determining Production Sequence 32 Manufacturing Technology

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34. ELIMINATION OF WASTE Waste – defined as anything that does not add value. 34 Manufacturing Technology

35. Scrap Work in process inventory level (hides problems) Unreliable Vendors Capacity Imbalances WHY TOYOTA HATES INVENTORY ???? 35 Manufacturing Technology

36. Scrap Reducing inventory reveals problems so they can be solved. Unreliable Vendors Capacity Imbalances WIP 36 Manufacturing Technology

37. Scrap Reducing inventory reveals problems so they can be solved. Unreliable Vendors Capacity Imbalances WIP 37 Manufacturing Technology

38. KANBAN CARD A smooth, continuous and optimized workflow, with carefully planned and measured work-cycle times and on-demand movement of goods, reduces the cost of wasted time, materials and capacity. Team members can concentrate on their tasks without interruption, which leads to better quality, timely delivery, and peace-of-mind for Toyota’s customers. In TPS it means having just the right components to build the product. 38 Manufacturing Technology

39. JIDOKA……. building in quality Jidoka translates as “automation” and can be described as “automation with a human touch”. If a defect or error is identified it is addressed immediately – even if this means temporarily stopping production. 39 Manufacturing Technology

40. GENCHI GENBUTSU – GOING TO THE SOURCE It means going to the actual place to solve the problem . which means ‘going to the source’ of the problem and assessing it for yourself rather than relying on information supplied by others, in order to gain a complete and accurate understanding. 40 Manufacturing Technology

41. ANDON BOARD/WHEEL The Andon board is a simple but highly-visible electronic sign displaying the status of production lines. It notifies management immediately if a worker has identified a fault, precisely identifying its location. Workers take responsibility for production quality, with the power to stop the production line as required. The production line will not be restarted until the reason for the fault has been resolved . 41 Manufacturing Technology

42. STANDARDISATION key element for quality assurance is a focus on standardization . Developing and relying on standardized work tasks not only ensures consistently high levels of quality, but also maintains production pace and provides a benchmark for implementing continuous improvement. 42 Manufacturing Technology

43. MISTAKE-PROOFING AND LABELLING Devices that make it difficult or impossible for a worker to make typical errors at his or her workstation are a common sight on Toyota production lines. Goal: Finding defects before they occur = Zero Defects 43 Manufacturing Technology

44. VISUAL MANAGEMENT In shop floor the things are visually display so that every one can excess them. Provide safety features for employs like by visually representing the Heights, how to carry load, how to move pallet truck etc. Help's visitor to excess plan without the help of others. It also applies for tools,materials,documents etc. 44 Manufacturing Technology

45. QPSDC 45 Manufacturing Technology

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47. A CULTURE OF CONTINUOUS IMPROVEMENT – ‘5S’ SEIRI – Sifting SEITON – Sorting • SEISO – Sweeping and cleaning SEIKETSU – Spic-and-span • SHITSUKE – Sustain 47 Manufacturing Technology

48. The Environment – Toyota’s commitment Toyota has a policy in place to reduce CO2 emissions, use resources more efficiently, and reduce environmental risk factors. Its policy is to analyze the effects of every stage in its products’ lives: development, manufacturing, operation, and recycling. TPS philosophy also includes the 3Rs – reduce, reuse, recycle manufacturing sites have all achieved ISO 14001 certification . 48 Manufacturing Technology

49. TPS is concerned with Health and Safety Toyota maintains health and safety for its team members so they can concentrate on their jobs delivering the best quality products and be more efficient . Manufacturing sites have achieved OHSAS 18001 certification –the international standard for occupational health and safety management. 49 Manufacturing Technology OHSAS 18001 is a  British Standard  for occupational health and safety  management systems

50. What TPS Means for your Business Toyota’s customers know what to expect when they buy from Toyota – a business partner with the strength and flexibility to meet the needs of a changing market Quality inherent in Toyota’s products, thanks to the company’s constant striving for improvement, has direct benefits for their customers… Costs are kept to a minimum thanks to a good return on investment based on the productivity and reliability of Toyota's products… Delivery is on time, and to the expected standard, allowing Toyota's customers to plan and maintain their operations successfully … Environmental concerns are shared by Toyota and its customers , from manufacturing through to recycling at end-of-life . Choosing Toyota products is a good choice for the environment… 50 Manufacturing Technology

51. Safety is Toyota’s constant concern – both for its employees and for those of its customers. TPS – A World-Class System 51 Manufacturing Technology