CASE:-TOYOTA PRODUCTION SYSTEM

R.N.-MMS-2012047

Toyota production system Introduction

Summary Toyota has contributed significantly to the world of Manufacturing with its Toyota Production System(TPS), Just in Time (JIT),Kaizen , etc. Due to this it was able to record outstanding financial results with a revenue and operating income of US $ 163 billion in March,2004. Toyota was started when Sakichi Toyoda diversified into the textile machinery business from traditional family business of carpentry. He invented a power loom in 1902 and founded the parent organization of Toyota Group. The first passenger car prototype was developed in 1935. Just in time concept was invented after Sakichi visited Fords manufacturing process. JIT was invented because Sakichi had to develop a system to smaller production system more suitable for Japan. In 1980s it set up a Joint Venture with General Motors. In the early 1900s as Toyota expanded its overseas operations excessive capacity spending affected its profit marginis. Tatsuro Toyoda over took as the companys President in 1992, and began to control costs by eliminating all unnecessary expenditure. Toyotas strong production performance was its much analysed matched manufacturing system, which make the concepts like kanban, kaizen, JIT, to reach high level of efficiency in production. Taichii Ohno who founded the TPS, with his experience about the American retail system, he was struck by the companys inventory system how the shelves were replenished immediately, point of customer demand was given more importance in terms of various processes in production line

Key function
Focused on reduction of cost through elimination of waste ( MUDA) It consisted of two aspects hard skills and Soft skills.The Hard aspect included the technicality in the system eg: JIT kanban etc. The soft aspects consisted of the Human aspect (JIDOKA) In short TPS involved a flexible batch processes, with multipurpose capital equipment and cross trained workers supplied by JIT inventory. Key area of TPS

Reducing costs Eliminating waste, and Improving productivity

1 WCM-BY PROF. AMOL ROY

CASE:-TOYOTA PRODUCTION SYSTEM

R.N.-MMS-2012047

Just-in-Time "Just-in-Time" means making "only what is needed, when it is needed, and in the amount needed." For example, to efficiently produce a large number of automobiles, which can consist of around 30,000 parts, it is necessary to create a detailed production plan that includes parts procurement. Supplying "what is needed, when it is needed, and in the amount needed" according to this production plan can eliminate waste, inconsistencies, and unreasonable requirements, resulting in improved productivity. Way of planning operations Reduces variability of demand Enhances responsiveness Conducts value-adding operations as close to consumption as possible

Top 4 rules of TPS system Works should be specified as content, sequence, timing, and outcome Direct connection with both customer and supplier, no scope for ambiguity in communication. Simple pathway for every product and service 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. KANBAN Kanban System The kanban system has also been called the "Supermarket method" because the idea behind it was borrowed from supermarkets. Such mass merchandizing stores use product control cards upon which product-related information, such as a product's name, code and storage location, are entered. Because Toyota employed kanban signs for use in their production processes, the method came to be called the "kanban system." At Toyota, when a process refers to a preceding process to retrieve parts, it uses a kanban to communicate which parts have been used. Taiichi Ohno (a former Toyota vice president), who promoted the idea of Just-in-Time, applied this concept, equating the supermarket and the customer with the preceding process and the next process, respectively. By having the next process (the customer) go to the preceding process (the supermarket) to retrieve the necessary parts when they are needed and in the amount needed, it was possible to improve upon the existing inefficient

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CASE:-TOYOTA PRODUCTION SYSTEM

R.N.-MMS-2012047

production system. No longer were the preceding processes making excess parts and delivering them to the next process.

KAIZEN The philosophy of kaizen is one of Toyotas core values. It means continuous improvement. No process can ever be declared perfect but it can always be improved. People at every level in the company support this process of improvement. Continuous improvement is supported by three key principles: TPS - Thinking People System 5 whys? 5S

JIDOKA Automation with a human touch The term jidoka used in the TPS (Toyota Production System) can be defined as "automation with a human touch." The word jidoka traces its roots to the invention of the automatic loom by Sakichi Toyoda, Founder of the Toyota Group. The automatic loom is a machine that spins thread for cloth and weaves textiles automatically. Before automated devices were commonplace, back-strap looms, ground looms, and highwarp looms were used to manually weave cloth. In 1896, Sakichi Toyoda invented Japan's first self-powered loom called the "Toyoda Power Loom." Subsequently, he incorporated numerous revolutionary inventions into his looms, including the weft-breakage automatic stopping device (which automatically stopped the loom when a thread breakage was detected), the warp supply device and the automatic shuttle changer. Then, in 1924, Sakichi

3 WCM-BY PROF. AMOL ROY

CASE:-TOYOTA PRODUCTION SYSTEM

R.N.-MMS-2012047

invented the world's first automatic loom, called the "Type-G Toyoda Automatic Loom (with non-stop shuttle-change motion)" which could change shuttles without stopping operation. The Toyota term "jido" is applied to a machine with a built-in device for making judgments, whereas the regular Japanese term "jido" (automation) is simply applied to a machine that moves on its own. Jidoka refers to "automation with a human touch," as opposed to a machine that simply moves under the monitoring and supervision of an operator. Since the loom stopped when a problem arose, no defective products were produced. This meant that a single operator could be put in charge of numerous looms, resulting in a tremendous improvement in productivity.

4 WCM-BY PROF. AMOL ROY