SUPPLIER KAIZEN DEPARTMENT

TOYOTA KIRLOSKAR MOTOR PVT. LTD

 Objective of the Program
(1) Able to coordinate the work combination and propose
how many workers are needed and how to arrange their
positions.

(2) Able to analyze working performance and review the

Standardized Work.

(3) Able to grasp whether Muda (Non-Value Added), Mura

(Fluctuation), Muri (Overburden) generate or not and being
able to improve the situation.

SD 1
Management Concept
&
Views Supporting TPS

SD 1-1
 Company objectives

Offering good products timely

with cheap price

2. To carry out social mission

1. To secure the profit 3. To sustain

permanently

Prerequisite Creating better

condition for business life for
management employees

SD 2
 To secure the profit

Profit = (Selling price – Cost) x Unit sold

How we can increase the profit?

(Selling price)
(Selling price) (Selling price) (Selling price)

Profit Profit Profit

Profit

Cost Cost Cost

Cost
×100 ×100 ×150 ×100

To increase To increase To reduce cost

selling price selling units

SD 3
 To secure the profit
The way to increase the profit
(1) To increase selling price
The idea of focusing-on-cost by
That car adding profit onto the cost to become
is cheaper. selling price doesn’t work out.

(2)To increase selling units

Customers don’t want to buy.

(3) To reduce cost

Other firms also put the efforts on

increasing the selling units.

Even we sell the same amount of cars with the

same price, the profit still different.

SD 4
 Selling price and cost

Selling price Cost Profit

Other firms 100 96 4?
Our firm 100 92 8?

SD 5
 Components of Cost
TMC Material Cost
Energy Cost
Labor Cost
Depreciation
Cost
Maintenance
Cost
Material Cost Energy Cost Labor Cost
Others

Components of cost These prices are rising each year

Competitor A Competitor B Competitor C

Competitors also face same conditions

SD 6
 Components of Cost
There is no big
difference of unit
price in each firm.

Others Raw
material

Purchasing
Depreciation
parts
Manufacturing
cost
Mainte
Labor
-nance

Support
Cost occurred Energy
materials
from
different
producing
method
SD 7
 - Question -

Even using the same materials, the same amount of

powers, the same degree of payments, some
companies gain profits but others not. Why does the
difference occur?

$ $
$ $
$
$

SD 8
 Cost Changes By the Way we Manufacture

Material Energy Labor Cost Depreciation Maintenance

Competitor Others
Cost Cost Cost Cost

Cost that increases and decreases by how to manufacture

Our Reduce Cost

Company

SD 9
Cost changed by producing method
(Example)

(a)

Ｂ Ｂ

Ａ Ａ Ａ (b)

SD 10
Regular Manufacturing Way

1day～
＃１ ＃２
1month stocks ＃３ ＃４
Raw
Material Completed
Products

Products on the way

store

Toyota
Manufacture at a pace of sales
Manufacturing
Way Personnel:1/2
Stocks: less than1/4
one by one ＃１ ＃２ ＃３ ＃４
Lead Time ?

SD 11
 － Summary－

1. To last the business long, we need to secure the

profit.

2. To secure the profit, cost reduction is the most

important thing.

3. Cost of the products changes by method of

manufacturing. (producing method).

SD 12
 The Aims of Toyota Production System

Reducing costs by thorough elimination of Muda

In order to achieve that……..

1. Produce only sold products

(Just-In-Time production based on Takt-Time)
2. Make higher-quality cars
(Promotion of Jidoka）
3. Make more reasonable-priced cars
(Thorough elimination of Muda）
4. Create flexible and strong-organized workplace

SD 13
The Origin of Toyota Production System

The Origin of Toyota Production System

- Jidoka and Just-In-Time -

SD 14
The Origin of Toyota Production System

2 pillars of Toyota Production System

Just-In-Time

Kiichiro Toyoda Sakichi Toyoda

Jidoka

SD 15
 Just In Time

TPS

What is Just-in-Time?

Produce and convey what customers want,

when they want in exactly the amount they want.

SD 16
 3 basic principles of Just-In-Time
Preceding processes Following processes
Pull System
When needed
Amounts needed

Continuous Flow Processing

Materials Finished products

Production of the exact

needed amounts at
Takt-Time

SD 17
 1.Pull System

プレス
Stamping 車体
Weld 塗装t
Pain 総組立
Assembly

Body Body
ボデー ボデー 塗装
Painting ラインoff
Line
product productio
着工 完 完
finish オフ
ion start n finish

aluminum parts Parts Machining process

supplier supplie painting manufacturer molding assembly
r supplier

Parts
manufacturer casting

SD 18
 1.Pull System
Conventional System Just In Time Approach

Push System Pull System

•The Preceding Process pushes •Following Process withdraw from
the finished goods to the Preceding Process, WHAT parts
Following Process, irrespective they need, WHEN they need, in what
of demand . QUANTITY they need .

High
Inventory

Supplier Customer
Supplier Push system Customer Pull system

- is Abnormality

Pull system is established to synchronize the speed between two processes.

It ensures no stock build up between process to process
Pull system
21 ensures the JIT in practical condition
SD 19
 2. Continuous Flow Processing
Conventional processing

คนงาน A
Operator A
Ａ 子さん
Material
Material
Operator A

คนงา
Operator B
คนงาน C
Operator C
Operator B Ｂ 子さん Operator C Ｃ 子さん
Finished products

Continuous flow processing

Continuous Flow Production

ชิ้นงานสํ าเร็จ
วัตถุดิบ
完成品
材料
Finished products
Material Operator A Operator B Operator C
Material
Finished products
SD 20
 3. Produce by Takt time
Example
Regular working hours
460 minutes

Total daily production requirement 460 pieces / day

460 minutes
Takt = = 1 minute / piece
time 460 pieces / day

Never produce parts by operator or machine capacity!

SD 21
 Lot production
Need the same man, materials, machine and capacity as the following process

A A A
A Line When you produce
one type of parts altogether at a time...
Waiting...

Ｂ Ｂ A A A
Ｂ Ｂ Ｂ Ｂ
Ｂ ラ イ ン
Main line
B Line
following process
Waiting...

Ｃ Ｃ
Ｃ Ｃ Ｃ
C Line
Preceding processes
SD 22
Leveled (Heijunka) production
Muda
To eliminate Mura
Muri
A A A
A Line Averaging amounts and
types all the time

Ｃ A Ｂ A Ｂ A
Ｂ Ｂ
メインライン
B Line
following process

Ｃ
C Line
Preceding processes
SD 23
How Heijunka is done ?
1. Leveled production of total daily production quantity
Dealers Demand NG OK
Daily Production Volume
300
250

No of Vehicles
250 250
Daily Production 200
200 200

No of Vehicle
20 Days 150
Volume = 200 150
100 100
150

Working units/day 100 100

50 50
0 0
1 2 3 4 5
1 2 3 4 5 6
Date
Prod Vol

2. Leveling of different models in daily production

100 50 25 25

A A…..A B B…..B C C…..C DD…..D

3. Standardization of production sequence

Based upon the ratio , Heijunka is done for the sequence

A B A C A B A D A B A C A B A D Repeats
SD 24
 Kanban
 Kanban is a small sign board
 Kanban gives production Instruction &
Conveyance
 Kanban controls the over-production
 Kanban makes pull system easy
 Kanban ensures Just in Time Production

PW Kanban Electronic Kanban

E - Kanban
SD 25
 Types of Kanban
Intra-Process
Kanban
Production
Instruction Kanban

Signal Kanban
Kanban
Inter-Process Kanban
Parts Withdrawal
Kanban
(e-Kanban)
Supplier Kanban

SD 26
 Roles of Kanban
1. Order information of production and conveyance

SD 27
 Roles of Kanban
2. A tool for visual control
 To check against over-production To detect irregular processing speed

I don’t have Kanban. Production is delayed?

Don’t produce!

Kanban post Kanban post

SD 28
 Roles of Kanban
3. A tool for work improvement (Kaizen)
Too muck stock…

The line is stopped! When reducing Kanban,

the problem can be seen.

SD 29
 Roles of Kanban
The flow of Kanban
Intra-Process Kanban Inter-Process Kanban

Flow of parts Flow of information (Kanban)

Kanban post Kanban post

Replacing
加工ライン

Assembly
Line

SD 30
 Kanban flow b/w OEM & Supplier

Following process

Preceding process

Kanban sorter
empty box＋
Kanban
sorter

line
＋parts
Parts supply

store
Product shipment

SD 31
 Shortening of lead time by e -Kanban

Following process

Preceding process
computer computer

Empty box Kanban reader

printer

line
＋parts
Parts supply

store
Product shipment

SD 32
 The relationship between Following and
preceding process
Team
machine material
member

Muda
Muda

Average
1000vehicles/day standard
Quantity

Muda
Muda

→Day
SD 32
 Jidoka

TPS
What is Jidoka?

Automation with a human element

which detects abnormal conditions
and stops automatically in abnormal conditions there by
ensuring defective parts will not flow to the next process.

SD 33
 The aims of Jidoka
1. Building 100% quality in at all times

2. Failure prevention of machinery and equipments

3. Manhour Savings
（No need to monitor machinery and equipments）

SD 34
 Tools of Jidoka

1. Fixed Position stop line

2. Pokayoke

3. Andon

SD 35
 Fixed Position Stop Line

Member, who found the abnormalities, will stop the line.

SD 36
 Pokayoke

STOP!.

Defects

SD 37
 Pokayoke
Fool proof system by using simple mechanism.
(Low Cost & highly reliable devices or innovations that either detect abnormal situation
before they occur at Production Process)

Tool
detection

broken tool

SD 38
 Pokayoke
Machining : Welding :
Example of Preventing out-of Example of Preventing missing
position Mounting weld-nut
Before Kaizen

Chuck
Machine

Spindle

Work (out of position)

Height
Blocking plate of the Nut
After Kaizen

Work (Mounted normally)

Reverse installation is Welding will not take place if nut
impossible by putting an is missing
obstruction plate
SD 39
 Andon
In JIT Line Any problem
at process effects entire
line

Need to take action

immediately before it
effects entire line

Identify the location and

Andon Board Problem

Visualization System

B1 B2 B3 C1 C2 C3
Line Andon Board

• Andon is a Management tool to Visualize abnormality at work place.

SD 40
 Another Jidoka
Baffle plate

SD 41
Flexible Manpower Line and
Manpower Savings

Flexible Manpower Line

-Preparing production line that can increase and
decrease man hours without lowering productivity.

Manpower Savings
-Reduce the number of workers by improving operations,
machinery and equipment.

SD 42
 Flexible Manpower Line and Fixed Manpower Line
⑤
④

Flexible 1423operator
operators
operators
⑥
③

Manpower Line (300units)

(400units)
(100unit)
(200units) ⑦
② Raw material

measur
ement
①
① ⑧
③ ② ① ② Products storehouse
⑦
⑤ ⑥ ⑦ ⑥
④ ③ ④ ⑤

Fixed Manpower Process 4

4.
tapper
3. 5.
Line Process 3 Process 5 stamping stamping

Process 2 2. 6.
Process 6
stamping tapper

1. 7.
Process 1 Process 7 welding
stamping

Raw Completed
material products
SD 43
 Work and Muda

Increase
Value
Addition Eliminate
Work MUDA
W MUDA
Main Job Work
O
Motion
R
K Reduce
Incidental
Incidental
work Work

SD 44
 Types of Muda

Muda of Muda of
Waiting Correction

Muda of Muda of
Motion Over-
Muda Production

Muda of Muda in
Inventory Processing
Muda in
Conveyance

SD 45
 Muda of Correction
Muda of Defects

2 defects out of 3 manufactures

First Second Third

Material, energy, equipment costs & labor

cost for 2 defects are completely Muda.

SD 46
 Muda of Correction
Muda of Correction
Correction reproduces defects to quality goods…

Workers & time needed

for correction

SD 47
 Muda of Over-Production
One piece is used every five minutes

Over-Production

4 pieces are produced every five minutes

SD 48
 Problems Caused by Muda of
Over-Production
1. Extra Man-Hour and equipments are needed.

2. Materials and parts are wasted in advance.

3.Energy such as electricity and oil is wasted.

4.Containers such as pallets and skids increase．

5. The number of transportation such as operators and fork lifts increase.

6. Warehouses and storage sites are newly set.

7. Inventory generates and management of Man Hour increase.

8. The burden of interest rate rises.

9. Possibility of Kaizen is eliminated.

SD 49
 Muda of Processing

Paint the front side of the bumper

After assembly, the

other side of the bumper
cannot be seen. Paint the other side of the bumper

SD 50
Muda of Conveyance
Kanban piles up, delay
of information occurs

Temporary
Stock

SD 51
 Muda of Inventory
Too Much Inventory 1

Process 1 Process 2

SD 52
 Muda of Inventory
Too Much Inventory 1

Equipment Breakdown

Such a little failure

shouldn’t be a big problem,
we have plenty of stock.

Importance of kaizen not realized due to more

stock. Abnormality is hidden.

SD 53
 Muda of Motion

Muda of Motion

SD 54
 Muda of Motion

Distance between
equipment is long

58
Long Walk Muda of Motion SD 55
 Muda of Waiting

Set the job &

Wait until work is finished proceed to next
process

59
Muda of Waiting occurs SD 56
 Seven Muda

It is important to show Muda

Muda of Muda of
Waiting Correction clearly to everyone.

Muda of Muda of
Motion
Muda
Over-Production
Standardization
Muda of Muda of
Inventory Processing
Muda of
Conveyance

SD 57
Mura - Fluctuation Contd...

The irregularities and fluctuations that happen temporarily

in a production schedule and in the volume of parts or products.
For Workers: individual workload
For Machinery: the way to operate
T.T = 80 sec.

60sec. 60sec. 60sec. 100sec. 100sec. 100sec. 60sec. 60sec. 100sec.

Relaxed Very busy

There is Mura in production; some

processes are busy and others
relaxed…….

Human aspect is work load

61 Equipment aspect is its utilization
SD 58
Muri - Overburden Contd...

The overloading individual capacities to workers and

machinery as a result…
For Workers: intensification of labor and dangerous
operation.
For Machinery: occurrence of malfunction and defectives

T.T = 80sec.
100sec. 100sec. 100sec. 100sec. 100sec. 100sec. 100sec. 100sec. 100sec.

It is Muri for us to keep up with

process that requires 100
seconds……
Muri in human aspect leads to unsafe operations
Muri in equipment aspect leads to equipment breakdown
62
and quality drop SD 59
Human Work and Machine Work
Divide ‘Human Work’ and ‘Machine Work’

Human Work Machine Work

Human Work (manual work) Machine Work (automatic feed)

Process A １５″ ３５″

Watching (Waiting)
SD 60
 Effective Utilization of Muda of Waiting
Taking out Taking out Taking out
set Holding work set Holding work set Holding work

spot spot spot

1 person operates 1 machine

Kaizen

Taking out Taking out Taking out

set Start-up set Start-up set

spot spot

Taking out Taking out

set set
spot spot
Start-up Start-up

1 person handles multi-process

SD 61
 Corporate Performance

Boat Race

SD 62
The case that improved productivity in
each line lead to a bad result

Sub-line After Kaizen 57”

Main 60”

Sub-line

SD 63
 Apparent and True Efficiency
100 units by 10 people
<Apparent Efficiency>
120 units by 10 people required amount
100 units

120 units by 10 people(Muda of 20 units)

100 units by 9 people(after Kaizen)
<True Efficiency>

SD 64
 END
OF
SESSION 1