Ford Prod. Drawbacks.

945 Ford Motor Company US • Continuous

1 Market share in Japan 90% improvement.
• Push System
• Inventory stock piles U.S
• Cash lost unknowingly
Basic production system
- Continuous flow system Supermarket system
- Pull System -

TPS
Needs competitive adv. Problems faced by
• Small Prod. System.
• Few resources
Toyoda handloom enters • Less capital
Automotive sector • Lousy Quality

Japanese Industry

973 recognizes TPS and First Oil shock

1 Revolution begins.

Recognized in Western Region by the book

FANTASTIC SUCCESS “ The Machine That Changed The World ”
Philosophy
Value -

From the glasses of cusomer.

 Waste
Anything that do not add value to the product.
 Identification of waste.
• Process Map
1. Value added
2. Non value added activities.

• Pareto curve
• Why-why analysis.
• Ishikawa diagram
 Waste in Value system

Time Casting Staging Machining

Setup Inspection Staging

Transportation Assembly

Value added activity

Non- Value added activity

Pareto curve.
 Example of Why-Why analysis.

Level Of problem Countermeasure

Puddle of oil on shop floor Clean up

Because Machine leaks oil Fix the machine
Because gasket is deteriorated Replace gasket
Because gasket made of inferior Change gasket specs.
material

Because we got good deal for Change purchasing policies.

gaskets

Because cost was the Stress on quality then cost.

purchasing factor
Ishikawa Diagram
Process : eliminating waste
 One piece flow
• Inherent Flaws of mass production.
1. Large inventory
2.Large volumes so high cost.
3.Worker keeping busy by keeping
equipment busy – overproduction.
4.Defects undetected in large
batches
 Continuous flow process
• Lower inventory
• Defects and inefficiencies visible
traditional batch process Continuous flow.

1. after ordering batch produced. 1. Customer places order

2. Delivered after complete batch is 2.Obtain raw material from supplier.

produced.

3.Delivered after complete batch is 3. Components produced

produced.

4. Total production time 1 day. 4. Assembled in plant

4. Delivered in one month. 5. Shipped in 2 days.

 Work cell concept with one piece flow.

Batch Production system

Base dept.

3 min

Monitor Dept.

For 3 pc – 9mins
3 min
For 1 pc – 7 mins

Test Dept.

3 min
 .
.
.
One piece flow system

in
in

in

M
M

1
1

1
Monitor

.
in
M
1
For 3 pc – 5mins
Monitor For 1 pc – 3 mins
Dept.

.
in
M
1
Test Dept.
 Takt time.

Rate at which customer buys product.

e.g. : If we work for 1hr every day for 20 days in a month and customer
buys 100 products' in a month then 5 products per day is required
production capacity.
 Advanages of One piece flow system.

• Builds quality

• Creates flexibility.

• Higher productivity

• Reduce cost of inverntory.

 Flow where you can pull where you must

• Not possible to get complete one piece flow system.

• Supermarket concept.

• Kanban : A simple signal

It is in the form of cards, empty bins, paper slips etc.

e.g. Suppose we need to produce a body in body shop, which takes 60 sec, the
requirement is steel stamping's that are produced in 1 sec. so we cannot have
one piece flow here because productivity will only be for 1/60 sec .

what is done is steel stampings are already stored in body shop when hey fall
below a certain number Kanban is sent to steel stamping production for
producing next batch .

• Kanban is actually a waste. Organization should try to eliminate it.