TOYOTA PRODUCTION SYSTEMS

Why study Toyota?

Total annual profit on March 2008was $8.23 billion- larger than combined earnings of GM, Chrysler and Ford. Profit margin is 8.3 times higher than industry average. Toyota shares rose 24% from their 2008 values. Market capitalization was $105 billion as of 2008 higher than total of Big 3. In 2008, Lexus outsold BMW, Cadillac and Mercedes Benz in the US for the third year in a row. In 2008, sold more vehicles than Ford and Chevrolet. The company has made profit every year over the last 25 years and has approximately $20-$30 billion in cash on a consistent basis.
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More laurels

In 2008 Toyota recalled 79% fewer vehicles in US than Ford and 92% fewer than Chrysler. According to Consumer Reports, 15 out of the 38 most reliable models from any manufacturer over the last seven year came from Toyota/Lexus. According to J.D. Powers ranking for initial quality and long-term durability, Lexus was #1 most reliable car in 2003 followed by Porsche, BMW and Honda. Not a single Toyota car is on the dreaded vehicles to avoid list published by Consumer Reports. About 50% of the GMs and more than 50% of the Chryslers are to be avoided.
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How did it happen?

Incredible consistency comes from operational excellence. The operational excellence is based on the quality improvement tools and methods developed by Toyota (under the TPS): such as JIT, kaizen, one-piece-flow, jidoka, and heijunka! These technique triggered a lean revolution in the manufacturing sector. Of course, Toyota system is much deeper and in fact is at a philosophical level! Toyota Way 14 principles which constitute this philosophy.
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TOYOTA PRODUCTION SYSTEM

REVOLUTIONARY APPROACH ADOPTED AFTER 1973 OIL CRISIS PRIMARY PURPOSE OF TPS IS TO ACHIEVE COST REDUCTION, ELIMINATE WASTE, AND SATISFY CUST NEEDS AT LOWEST COST TO ACHIEVE COST REDUCTION SYSTEM MUST ACHIEVE GOALS SUCH AS QLTY CONTROL AND QLTY ASSURANCE KEY INITIATIVES IN TPS -POKAYOKE COMPANYWIDE QLTY CONTROL-JUST IN TIME -TOTAL PRODUCTIVE MAINTENANCE KAIZEN -PULL SYSTEMS -TOTAL WASTE REDUCTION ZERO DEFECTS VALUE ENG AND ANALYSIS FAILURE MODE EFFECT ANALYSIS -TAKT TIME PLANNING -ROOT CAUSE ANALYSIS OF FAILURE QUALITY FUNCTION DEPLOYMENT QUALITYPOLICY DEPLOYMENT SIX SIGMA -TOYOTA 7 WASTES -QUICK CHANGEOVER ANDON -5 WHY ANALYSIS LEVELLED PRODUCTION FLEXIBLE MFG SYSTEM IS AN INTEGRAL PART OF TPS AND INVOLVES MFG OF VARIED PRODUCTS WITH MINIMUM CHANGEOVER AND SETUP WORKER SUGGESTIONS IMPLEMENTED INTO PROCESSES

TOYOTA PRODUCTION SYSTEM

IMPLEMENTS SUBSYSTEMS -CONTROL PRODN IN RIGHT QTY AT RIGHT TIME -PROCESS WITHDRAWS PARTS FROM PREVIOUS PROCESS ONLY WHEN REQD(PULL PROCESS) -PRODN SMOOTHING WHERE SINGLE LINE PRODUCES MULTI VARIETIES IN RESPONSE TO VARYING CUSTOMER DEMANDS -REDUCTION OF SET UP TIMES WHICH REDUCES OVERALL PRODN LEAD TIME ACROSS ENTIRE PROCESS -STANDARDISATION OF OPERATIONS WHICH MINIMISE RESOURCES BY BALANCING OPERATIONS ON THE LINE -IMPROVEMENT ACTIVITIES AIMED AT IMPROVING PRODUCTIVITY -COMPANYWIDE QLTY CONTROL WHICH PROMOTES IMPROVEMENT IN ALL DEPTS

TOYOTA PRODUCTION SYSTEM

IMPLEMENTS SUBSYSTEMS -CONTROL PRODN IN RIGHT QTY AT RIGHT TIME -PROCESS WITHDRAWS PARTS FROM PREVIOUS PROCESS ONLY WHEN REQD(PULL PROCESS) -PRODN SMOOTHING WHERE SINGLE LINE PRODUCES MULTI VARIETIES IN RESPONSE TO VARYING CUSTOMER DEMANDS -REDUCTION OF SET UP TIMES WHICH REDUCES OVERALL PRODN LEAD TIME ACROSS ENTIRE PROCESS -STANDARDISATION OF OPERATIONS WHICH MINIMISE RESOURCES BY BALANCING OPERATIONS ON THE LINE -IMPROVEMENT ACTIVITIES AIMED AT IMPROVING PRODUCTIVITY -COMPANYWIDE QLTY CONTROL WHICH PROMOTES IMPROVEMENT IN ALL DEPTS

The Toyota Production System

Elimination of waste

Respect for people

JIT: produce only what and when needed and no more, inventory hides failures Implemented by Kanban (pull) production control system Quality at the source obvious if failure, stop and fix before more bad parts made Minimized setup times obvious setup time is nonproductive

Employee involvement and empowerment

Cooperative employee unions part of culture?

Subcontractor networks party of extended operations Management by consensus Quality circles - Small Group Involvement Activities (SGIAs)

What is Toyota lean?

End result of applying the TPS to all areas of business. A five-step process: Defining customer value Defining value stream Making it flow Pulling from the customer and back Striving for excellence. Taiichi Ohno (founder of TPS) All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing the non-value-added waste.
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Truths from the TPS philosophy

Often the best thing you can do is to idle a machine stop producing parts. Often it is best to selectively add and substitute overhead for direct labor. It may not be a top priority to keep your workers busy making parts as fast as possible. It is best to selectively use information technology and often better to use manual process even when automation is available and would seem to justify its cost in reducing your headcount.

Identify activities that add value to raw material, and get rid of everything else.
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Truths from the TPS philosophy

Start with the customer, by asking yourself what value are we adding from the customers perspective? The only thing that adds value in any type of process, is the physical or information transformation of that product, service or activity into something the customer wants.
Comparison of people and material in your shop dont make them wait. Because it transforms into your internal and external customer becoming impatient.

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Toyota story

The mistake-proof loom became Toyodas most popular model and in 1929, his son Kichiro, negotiated the sale of patent rights to Platt Brothers of England for 100,000. In 1930, these funds were used to start building the Toyota Motor Corp. Kichiros contribution to the Toyota philosophy JIT. What is JIT? marriage between the Fords idea of assembly line and US supermarket system of replacing products on the shelves just in time as customer purchased them. Not much later WWII started.
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Toyota story

Post-WWII, rampant inflation meant getting paid by customers was very difficult. Cash-flow problems lead to pay cuts. When situation worsened, 1600 workers were asked to retire voluntarily. The resultant work stoppages and public demonstrations by workers led to resignation of Kichiro. Eiji Toyoda took over as president. Eijis main contribution leadership towards development of the TPS. Eiji hired Taiichi Ohno as the plant manager and asked him to improve Toyotas manufacturing process so that it 13 equals the productivity of Ford.

Toyota story

Taiichi Ohno benchmarked the competition by visiting Ford and studied Henry Fords book. Impressed with Fords philosophy of eliminating waste. Ford itself didnt seem to practice it. Took idea of reducing inventory by implementing pull system from the US supermarkets. Pull system was implemented by Kanban cards. Ohno also took ideas from Deming when he was lecturing in Japan about quality and productivity.

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Toyota story

Deming told the Japanese industry about meeting and exceeding customer satisfaction. Also broadened the definition of customer to include both internal as well as external customers. The next process is the customer became the most significant expression for JIT, because in a pull system it means the proceeding process must always do what the subsequent process says. Otherwise JIT wont work. Demings PDCA cycle led to Kaizen.

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Ford vs. Toyota

Fords mass production system was designed to make huge quantities of limited number of models. Toyota needed a system to make low volumes of different models using the same assembly line. Ford had cash and a large market. Toyota needed to turn cash around quickly. Toyota didnt have the resources for huge volumes of inventory and economies of scale afforded by Fords mass production system.

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Ford vs. Toyota

The mass production system was focused on short-term costs. Make bigger machines and through economies of scale drive down cost. Automate to replace people if it can be justified in terms of cost. Then the business world got the quality religion from Deming, Juran, Ishikawa and other quality gurus. Combining these Toyota developed the TPS which focused on speed in the supply chain: Shortening lead time by eliminating waste in each step of a process leads to best quality and lowest cost, while 17 improving safety and morale.

Ford vs. Toyota

Toyota system demonstrates that focusing on quality actually reduced cost more than focusing only on cost.

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Toyota Production Systems Four Rules

1. All work shall be highly specified as to content, sequence, timing, and outcome

2.

Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses
The pathway for every product and service must be simple and direct Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization

3. 4.

14 PRINCIPLES OF TOYOTA

BASE MGT DECISIONS ON LONG TERM PHILOSOPHY EVEN AT THE EXPENSE OF SHORT TERM FINANCIAL GOALS CREATE CONTINUOUS PROCESS FLOW TO BRING PROBLEMS TO THE SURFACE USE PULL SYSTEMS TO AVOID OVER PRODN LEVEL OUT WORK LOAD BUILD CULTURE OF STOPPING TO FIX PROBLEMS TO GET QUALITY RIGHT THE FIRST TIME

14 PRINCIPLES OF TOYOTA

STANDARDIZED TASKS ARE THE FOUNDATION FOR CONTINUOUS IMPROVEMENT AND EMPLOYEE EMPOWERMENT USE VISUAL CONTROL SO THAT NO PROBLEMS ARE HIDDEN USE RELIABLE TESTED TECHNOLOGY THAT SERVES PROCESSES GROW LEADERS WHO UNDERSTAND THE WORK DEVELOP PEOPLE TO FOLLOW COMPANY PHILOSOPHY

14 PRINCIPLES OF TOYOTA

RESPECT PARTNERS AND SUPPLIERS AND HELP THEM IMPROVE CONTINUOUSLY SOLVE THE ROOT OF PROBLEMS MAKE DECISIONS BY CONSENSUS BECOME A LEARNING ORGANIZATION THROUGH REFLECTION AND CONTINUOUS IMPROVEMENT

The TPS house diagram

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The TPS house diagram

1.
2.

Two main pillars: JIT (the most visible and highly publicized characteristics of TPS) Jidoka (never letting a defect pass to the next station; and freeing people from machines)
Base: Heijunka Leveling out production schedule for both volume and variety. A leveled production is necessary to keep the system stable and to allow for minimum inventory. Big spikes in the production of certain variety while excluding others will create part shortages unless huge inventory is maintained.
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The TPS house diagram

JIT means removing, as much as possible, the inventory used to buffer operations against problem that may arise in production. The ideal one-piece flow is to make one unit at the rate of customer demand or takt (German for meter). Using smaller buffer means quality defects become immediately visible. This will reinforce jidoka which can halt the production (Andon). The production line restarts once workers resolve the problem.
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The TPS house diagram

Less inventory and the Andon forces urgency among the workers. If the same problem happens repeatedly the management realizes the critical situation and invests in Total Productive Maintenance, where everyone learns how to clean, inspect and maintain equipment. In traditional system, if the machine is down, the urgency is missing because the maintenance department is scheduled to fix it while production continues through the depletion of inventory.
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The TPS house diagram

People are the center of the house because only through continuous improvement can the operation ever attain the system stability. People must be trained to see waste and solve problem at the root cause by repeatedly asking why the problem really occurs.

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Eliminating Waste (Muda)

First question the TPS asks is What does the customer want from this process? (both internal as well as external customers). This defines value. Through the customers eyes, we can then observe the process and separate the value-added steps from the nonvalue added steps. This can be applied to any process manufacturing, or a service.

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Types of waste

Overproduction: Producing items for which there are no orders, which generates such wastes as overstaffing and storage and transportation costs because of excess inventory. Waiting: Workers having to stand around waiting for the next processing step, tool, part etc. Or no work because of stock-outs, lot processing delays, equipment downtime, and capacity bottlenecks.
Unnecessary transport: Carrying WIP long distances, creating inefficient transport, or moving parts in and out of storage facility.
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Types of waste

Over-processing or incorrect processing: Taking unneeded steps to process the parts. Inefficient processing due to poor tools and product design, causing unnecessary motion and producing defects. Waste generated when providing higher-quality products than is necessary. Excess inventory: Excess raw material, WIP or finished goods causing longer lead times, obsolescence, damaged goods. Extra inventory hides problems such as production imbalances, late deliveries from suppliers, defects, equipment downtime, and long set-ups. Unnecessary movements: Any wasted motion employees have to perform during the course of their work, such as looking for, reaching for, or stacking parts, tools etc. Walking is a waste.
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Types of waste

Defects: Production of defective parts or correction. Repair or rework, scrap, replacement production, and inspection mean wasteful handling, time and efforts. Unused employee creativity: Losing ideas, skills, improvements, and learning opportunities by not engaging or listening to your employees.

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Eliminating Waste

First step in removing non-value added steps from a process is to map the process. Map the value stream following the actual path taken by the part in the plant. Walk the full path yourself (genchi genbutsu). One can draw the path on a layout and calculate the time and distances traveled (spaghetti diagram). Traditional cost saving focuses on value-added items and try to improve those. TPS focuses on the entire value stream to eliminate the non-value adding items.

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Traditional process improvement vs. TPS

Traditional approach focuses on identifying local efficiencies. Go to the equipment, the value-added processes, and improve uptime, or make the cycle faster, or replace the person with automated equipment. In TPS, large number of non-value-added steps are squeezed out. One way to achieve this is through cell formation (cellular manufacturing), which should ideally result in one-piece flow of products or services.

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PRINCIPLE 1 MGT DECISIONS

ALIGN WHOLE ORGANIZATION TOWARDS A COMMON PURPOSE GENERATE VALUE FOR THE CUSTOMER AND EVALUATE EACH FUNCTION OF THE COMPANY IN TERMS OF ABILITY TO DELIVER VALUE

PRINCIPLE 2 CONTINUOUS FLOW

REDESIGN WORK PROCESSES TO ACHIEVE HIGH VALUE ADDED CONTINUOUS FLOW CREATE FLOW TO MOVE MATERIAL AND INFO FAST

PRINCIPLE 3 PULL SYSTEMS

PROVIDE DOWN THE LINE INTERNAL CUSTOMER IN THE MFG PROCESS WITH WHAT THEY WANT , WHEN THEY WANT AND IN THE QTY THEY WANT MATERIAL REPLENISHMENT IS BASIC PRINCIPLE OF JUST IN TIME MINIMIZE WIP AND INVENTORY BY STOCKING SMALL AMOUNTS OF EACH PRODUCT AND FREQUENTLY RESTOCKING BASED ON WHAT THE CUSTOMER ACTUALLY TAKES AWAY BE RESPONSIVE TO DAY TO DAY SHIFTS IN CUSTOMER DEMAND

PRINCIPLE 4 LEVEL WORKLOAD

ELIMINATE WASTE ELIMINATE UNEVENNESS IN PRODUCTION SCHEDULE

PRINCIPLE 5 STOP TO FIX PROBLEMS

QUALITY FOR CUSTOMER DERIVES VALUE PROPOSITION USE MODERN QUALITY ASSURANCE METHODS BUILD CAPABILITY TO DETECT PROBLEMS THRU VISUAL SYSTEM BUILD SUPPORT SYSTEM TO SOLVE PROBLEM

PRINCIPLE 6 STANDARDIZE TASKS

MAINTAIN PREDICTABILITY OF OUTPUT OF PROCESSES CAPTURE ORGANIZATIONAL AND PERSONAL LEARNINGS FROM PROCESS OUTPUT MEASUREMENTS THRU AN EFFECTIVE FEEDBACK CONTROL MECHANISM

PRINCIPLE 7 VISUAL CONTROLS

USE VISUAL INDICATORS TO DETERMINE DEVIATION FROM STANDARD CONDITIONS

PRINCIPLE 8 RELIABLE TECHNOLOGY

USE TECHNOLOGY TO SUPPORT PEOPLE AND NOT TO REPLACE CONDUCT ACTUAL TESTS BEFORE ADOPTING NEW TECHNOLOGY MODIFY TECHNOLOGIES THAT CLASH WITH YOUR CULTURE

PRINCIPLE 9 ADD VALUE TO ORGANIZATION

GROW LEADERS FROM WITHIN INSTEAD OF RECRUITING FROM OUTSIDE LEADERS TO BE ROLE MODELS

PRINCIPLE 10 DEVELOP PEOPLE

CREATE CULTURE IN WHICH COMPANY VALUES AND BELIEFS ARE SHARED USE CROSS FUNCTIONAL TEAM TO IMPROVE QUALITY

PRINCIPLE 11 RESPECT PARTNERS AND SUPPLIERS

TREAT SUPPLIERS AND PARTNERS AS EXTENSION OF BUSINESS

PRINCIPLE 12 SOLVE ROOT OF PROBLEMS

USE 5 WHY ANALYSIS AND OTHER STATISTICAL TOOLS TO ARRIVE AT THE ROOT CAUSE OF A PROBLEM. ASSESS ITS PROBABILITY AND IMPACT OPERATIONALLY , FINANCIALLY , SOCIALLY , ENVIRONMENTALLY AND LEGALLY FIND VARIOUS SOLUTIONS WITH PROBABILITY OF EFFECTIVENESS AND CHOOSE THE OPTIMUM SOLUTION IMPLEMENT IMPROVEMENT CONTINUOUSLY ASSESS THE HEALTH OF THE PROCESS AND IMPROVE

PRINCIPLE 13 CONSENSUS DECISIONS

DISCUSS PROBLEMS AND SOLUTIONS WITH ALL AFFECTED TO SEEK THEIR VIEWS AND GET CONSENSUS

PRINCIPLE 14 LEARNING ORGANIZATION

INSTITUTE CONTINUOUS LEARNING PROCESS TO FATHOM REAL REASONS FOR NON CONFORMITY OF PROCESS DELIVERABLES AND THROUGH A PROACTIVE QUASI REAL TIME FEEDBACK CONTROL SYSTEM IMPROVE PROCESSES TO MINIMIZE VARIATION FROM STANDARDS

Main Features of TPS

Greater Product Variety Better quality Lower costs Shorter lead times Fast Response (Flexibility)

*ALL THIS ACHIEVED THRU SHORTENING OF PRODUCTION FLOW BY ELIMINATING WASTE

Elements of TPS

The SMED Program.

Highlight Problems (Jidoka). Gradual Elimination of Waste.
Continuous Improvement (Kaizen), Root-Cause Analysis (5-whys?) and

Fool-proofing (Poka-Yoke).

Cross-Trained Workers. Just-In-Time Production. Stable Production Schedules (Heijunka)

Expectations from Suppliers

Frequent deliveries.
Hours (not days) lead time.

Rapid response capability (not from stocks).

Delivery to assembly line at the right time in the right sequence without inspection. Reliability (quality and timing).

Supplier Relationships

Long-term, steady relationships with a few suppliers. Negotiation based on a long term commitment to productivity and quality improvement. Interested in supplier capabilities.
Continuous improvement. Product/process technology. Design for manufacturability.

Whats in it for a supplier?

A Stable Manufacturing Environment.

Steady production volume.

Leaner Processes.
Cost/Flexibility/Quality

Profits.

4P MODEL OF TOYOTA
PROBLEM SOLVING CONTINUOUS IMPROVEMENT AND LEARNING PEOPLE AND PARTNERSCHALLENGES PROCESS-WASTE ELIMINATION PHILOSOPHY-LONG TERM THINKING

Toyota Way Principles in 4P Model

The dynamic of The Toyota Way

Problem Solving
(Continuous Improvement and Learning)

People and Partners

(Respect, Challenge and Grow Them)

Process
(Eliminate Waste)

Philosophy
(Long-term Thinking)

PROBLEM SOLVING

CONTINUOUS IMPROVEMENT AND LEARNING THROUGH KAIZEN THOROUGHLY UNDERSTAND SITUATION MAKE DECISIONS BY CONSIDERING ALL OPTIONS

Improvement Approaches of Typical Companies

Toyota Leverages Opportunities at all

Levels

Jumping from problem to solution without clear understanding and analysis

PROBLEM

Most common mistake

SOLUTION

ROOT CAUSE ANALYSIS

Observe the production floor without preconceptions and with a blank mind. Repeat why five times to every matter.

No Problem is problem

Problems are opportunities to learn Hiding problems undermines the system

Characteristics of Effective Lean Transformation

Top Down Directive that this is the new way. Bottom-up involvement in concrete projects with clear results. Develop internal experts through learning by doing. Expert sensei to guide the process and teach. Learning philosophy: every project, activity, is a chance to learn. Start with value stream transformation projects. Build on successes to transform broader organization and culture over time---YEARS!

4 P Model of the Toyota Way

Problem Solving

(Continuous Improvement and Learning)

The heart & soul of The Toyota Way

Continual organizational learning through K Go see for yourself to thoroughly understand t situation. (Genchi Genbutsu) Make decisions slowly by co

People and Partners

(Respect, Challenge and Grow Them)

Process
(Eliminate Waste)

Philosophy
(Long-term Thinking)

PEOPLE AND PARTNERS

LEADERS SHOULD PROMOTE PHILOSOPHY RESPECT FOR ALL PEOPLE

People and Partners

Respect, Challenge, and Grow Them:
Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others
Develop exceptional people and teams who follow your companys philosophy Respect your extended network of partners and suppliers by challenging them and helping them improve

One-Piece Flow Demands Team Work!

x x x x x

Traditional Western Team

x x

Station B

x x x

x x x x x x x

Station A
Need help? Need help?

Station C

Toyota Way Team

Workcell

Typical Toyota Organization to support Continuous Improvement

Team Size
Team Member {5-8}

Kaizen
Team Leader {3-4}

Group Leader {5-8}

Asst. Manager
{ 4 - 10 }

Manager

How Do we Develop People? Research in occupational training shows that individuals retain about:

10 % of what they read 20 % of what they hear 30% of what they see 50% of what they hear and use 70% of what they say 90% of what they say and do

 Job Instruction Training is designed to teach

people how to do a particular job by:

Hearing (what to do) Seeing (how it is done) Using (what was learned) Saying (what was learned) Doing (the task) REPEATEDLY !!

4 P Model of the Toyota Way

Problem Solving
(Continuous Improvement and Learning)

Eliminate Waste through Flow People and Partners& Standardization (Respect, Challenge and Grow Them)
Grow leaders who live the philosophy Respect, develop and challenge your people and teams Respect, challenge, and help your supplier

Process
(Eliminate Waste)

Philosophy
(Long-term Thinking)

PROCESS

ELIMINATE WASTE CREATE PROCESS FLOW TO SURFACE PROBLEMS USE PULL SYSTEMS TO AVOIDOVER PRODUCTION LEVEL OUT WORKLOAD STOP WHEN THERE IS A QLTY PROBLEM STANDARDIZE TASKS FOR CONTINUOUS IMPROVEMENT USE VISUAL CONTROL SO NO PROBLEMS ARE HIDDEN

is a manufacturing philosophy which shortens the time between the customer order and the product build / shipment by eliminating sources of waste. Business as Usual
CUSTOMER ORDER

Waste
Time

PRODUCT BUILT & SHIPPED

Lean Manufacturing
CUSTOMER ORDER PRODUCT BUILT & SHIPPED

Waste
Time (Shorter)

Casting Waiting Transportation

Product Lead Time

Machining Assembly Staging Inventory Staging

Raw Material

Time

Finished Parts

= Value Added Time

= Non-Value Added Time (WASTE)

Value Added Time is only a very small percentage of the Lead time. Traditional Cost Savings focused on only Value Added Items. LEAN FOCUSES ON NON-VALUE ADDING ITEMS.

Before Lean: Organization By Machine Type With Convoluted Flow

No Organization and No Control

LATHE

LATHE

LATHE

LATHE

PART FLOW
50 0pc s.

M ILL

M ILL

M ILL

M ILL

M ILL

75 0pc s.

GRINDER

GRINDER

GRINDER

25 0pc s.

DRILL

DRILL

DRILL

After Lean: U-Shaped One-Piece Flow Cell

Organization and Control

Build to Takt Time!

Why Focus on Flow?

If some problem occurs in one-piece-flow manufacturing then the whole production line stops. In this sense it is a very bad system of manufacturing. But when production stops everyone is forced to solve the problem immediately. So team members have to think, and through thinking team members grow and become better team members and people.

Downstream processes withdraw what they need when they need it.

Simplified Pull System Empties + withdrawal Empties +

kanban

production kanban

A B C D E F New product G H

PULL
Customer Plant
Needed Components + kanban

Supplier Plant

Preceding processes replenish what is taken away.

Get away from isolated perspective / improvements

Value Stream Perspective

Process 1
Kaizen

Process 2

Process 3
Kaizen

Kaizen

Why Focus oninFlow? If some problem occurs one-piece-flow manufacturing then the whole production line stops. In this sense it is a very bad system of manufacturing. But when production stops everyone is forced to solve the problem immediately. So team members have to think, and through thinking team members grow and become better team members and people.

 5S-Visual

Workplace Total Productive Maintenance Quick Changeover Standardized Work Quality Methods

Lean Tools to Support Flow

What is a Visual Workplace?

When anyone can walk into a workplace and visually understand the current situation.

Why Quick Change Over?

Change Over

Difference in average inventory level with more changeovers

Inventory level

Average inventory levels

Time

The more quickly we changeover, the more our inventory levels decrease. This helps accomplish our goal of waste elimination.

Standard Work Tools

Standardized Work Chart

Detail of each Process Step
Takt 90s

Assembly Process #

Work Element Sheet

Detail of the Elements of each Process Step

Stack Chart (Yamazumi)

A Visual Tool for Balancing Processes

Standardized tasks are the foundation for continuous improvement and employee empowerment

Todays standardizationis the necessary foundation on which tomorrows improvement will be based. If you think of standardization as the best you know today, but which is to be improved tomorrow-you get somewhere. But if you think of standards as confining, then progress stops.

4 P Model of the Toyota Way

Problem Solving
(Continuous Improvement and Learning)

People and Partners

(Respect, Challenge and Grow Them)

Adding Value to Customers & Process Society (Eliminate Waste)

Create process flow to surface problems Level out the workload (Heijunka) Stop when there is a quality problem (Jidoka)

Philosophy
(Long-term Thinking)

Base management decisions on a long term philosophy, even at the expense of short-term financial goals Toyota mission: Contribute to the economic growth of the country in which it is located (external stakeholders) Contribute to the stability and well being of team members and partners (internal stakeholders) Contribute to the overall growth of Toyota

PHILOSOPHY

BASER MGT DECISION ON LONG TERM PHILOSOPHY EVEN AT THE EXPENSE OF SHORT TERM FINANCIAL GOALS

LEARNINGS FROM TPS

ELIMINATION OF WASTED TIME AND EFFORTS BUILDING QUALITY INTO WORKPLACE SYSTEMS FINDING LOW COST RELIABLE ALTERNATIVES TO EXPENSIVE TECHNOLOGY AND RAW MATERIAL PERFECTING BUSINESS PROCESSES BUILDING A LEARNING CULTURE

IMPROVEMENTS AT MARUTI DUE TO TPS

46% REDUCTION IN LEAD TIME TO PROCURE (12HRS TO 6.5 HRS) 83% REDUCTION IN WIP INVENTORY (9HRS TO 1.5 HRS) 91% REDUCTION IN FG INVENTORY (5500 TO 495) 50% REDUCTION IN OVERTIME (10HRS TO 5HRS/PERSON WEEK) 83% IMPROVEMENT IN PRODUCTIVITY(2.4 TO 4.5 UNITS PER LBR HR)