Toyota Production System

TOYOTA PRODUCTION SYSTEM Submitted by: (Section: D) Alliance Business School Raunaq Chawla (08 PG 258) Seshu Pinnamaneni (08 PG 270) Vijay Pal Singh (08 PG 282)

Taiichi Ohno – Father of Toyota Production System

History  Moving

assembly line was the ideal model on which Toyota based their production system back in the 1940s  Started lean manufacturing on the shop floor, after World War II as a solution to a very real and pressing problem  After World War II when Japanese industry was decimated, the Toyoda family decided to extend Toyota Automatic Loom company to start an automotive company. They had some cash but did not have the infrastructure  Under these conditions, Taiichi Ohno was given the assignment of catching up with American companies in productivity at a time when they were behind

History (cont….d)  Ohno

drew upon a number of ideas from the West and a lot of experimentation to ultimately develop TPS  Quality problem at Toyota led to introduction of concept of “jidoka” – built in quality  After the 1973 oil crisis, Japan’s economy collapsed to zero growth. Even Toyota Motor Company suffered losses greater earnings were sustained in 1975, 1976 and 1977 than at other Japanese companies – which made Japan follow Toyota’s style naming it as Toyota Production System  Taiichi Ohno, Shigeo Shingo and Eiji Toyoda developed the system between 1948 and 1975

7 Principles of TPS Reduced

set up times: organizing procedures,  using carts, and training workers to do their own setups, helped in slashing setup times from months to hours and sometimes even minutes Small -lot production: economically produce larger variety and smaller quantity Employee involvement and empowerment: formed teams and

7 Principles  Quality

(cont….d)

at source: Since workers are at the best position to find a defect and to immediately fix it, they are assigned the responsibility of eliminating defects as early as possible.  Equipment maintenance: responsibility of maintenance assigned to workers  Pull production: the quantity of work performed at each stage of the process is dictated solely by demand for materials from the immediate next stage  Supplier involvement: Suppliers are trained in ways to reduce setup times, inventories, defects, machine breakdowns etc., and take responsibility to deliver their best possible parts

Lean manufacturing – precursor of TPS

TPS Concepts

1. JIDOKA: highlighting problems 

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Means that a machine safely stops when the normal processing is completed Since a machine automatically stops when processing is completed / when a problem arises and is communicated via the "andon (problem display board)," operators can confidently continue performing work at another machine, as well as

Concept of “Jidoka”

TPS Concepts 2. 

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JUST IN TIME: complete

elimination of waste When a order is received, production instruction must be issued to the beginning of the production line as soon as possible The assembly line must be stocked with small numbers of all types of parts so that any kind of vehicle ordered can be assembled The assembly line must replace the parts used by retrieving same number of parts from the parts-producing process The preceding process must be stocked with small no. of all types of parts and produce only the no. of parts required in

http:// www.toyota.co.jp/en/vision/production_system/video.html

Kanban system Unique

production control

method Idea borrowed from super markets so called “super market method” when a process goes to the preceding process to retrieve parts, it uses kanban signs to communicate what parts have been used

I L L U S T R A T I O N of T P S

GOALS OF TPS •Design out overburden(muri), inconsistency(mura) & eliminate waste(muda) • Process of production is as flexible as possible • Follows 5 s approach- sieri(sort), seiton(set in order), seiso(shine), seiketsu (standardize), shitsuke(sustain) • Participation of all employees in the work process • Elimination of imperfection or problem so as to reduce inventory

OUTCOME OF TPS •Reduction of lead time to a great extent • Improvement of quality • One of ten largest companies in the world • Largets car manufacturer in 2007 • Low cost

Toyota’s spirit of “ making things” is being spread through out the world as

“The Toyota way”