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Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

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Project Procurement and Con...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

Introduction and History of To...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

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

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Sakichi Toyoda (18...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

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Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

ANDON

JIT

GENCHI GENGUSTU...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

One of the two main pillars of...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

JIT is a philosophy of continu...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

“A philosophy of manufacturing...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

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Project Procurement and Co...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

⋑ Higher amount of machine/wor...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

⋑ Higher amount of machine/wor...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

A small time that is the key c...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

A unique production control me...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

15

Project Procurement and Co...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

Non-value added. Muda is trans...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

Reduce Setup Times

All setup ...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

Quality at the Source
To elimi...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

A system of continuous improve...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

20

Project Procurement and Co...
Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation

21

Project Procurement and Co...
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JIT, Kanban, Kaizen, Muda in TPS (Toyota Production System)

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Prepared by Abdul Qadir, for Proj Procurement and Contracts Subject taken by Sir Usman Khalid, if anyone needs its report in document form can approach me at abdulqadirmail@gmail.com

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Transcript of "JIT, Kanban, Kaizen, Muda in TPS (Toyota Production System)"

  1. 1. Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  2. 2. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation 2 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  3. 3. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation Introduction and History of Toyota Toyota Production System (TPS) JIT and other TPS Terms JIT Philosophy JIT Process & Principles Questions...... 3 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  4. 4. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation    4 Sakichi Toyoda (1867-1930) Automatic Loom Kiichiro Toyoda (1894- 1952) Used chain conveyor into the Assembly line Eiji Toyoda (1913) Implementation of Jidoka and JIT Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  5. 5. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation 5
  6. 6. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation ANDON JIT GENCHI GENGUSTU KANBAN HEIJUNKA KAIZEN OSHIN MUDA JIDOKA NEMAWASHI JISHUKAN POKAYOKE YOKOTEN 6 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  7. 7. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation One of the two main pillars of TPS. It refers to the manufacturing and The pull system conveyance of only “what is needed, when is needed, and in the amount needed in the system”. Take time Continuous Fow 1. The Pull System 2. Continuous Flow Processing 3. Take time 7 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  8. 8. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation JIT is a philosophy of continuous improvement in which non-valueadding activities (or wastes) are identified and removed for the purposes of: ◧ Reducing Cost ◩ Improving Quality ◨ Improving Performance ◪ Improving Delivery ♦ Adding Flexibility ▬ Increase innovativeness 8 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  9. 9. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation “A philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity. It encompasses the successful execution of all manufacturing activities required to produce a final product, from design engineering to delivery and including all stages of conversion from raw material onward. The primary elements include having only the required inventory when needed; to improve quality to zero defects; to reduce lead time by reducing setup times, queue lengths and lot sizes; to incrementally revise the operations themselves; and to accomplish these things at minimum cost." 9 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  10. 10. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation 10 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  11. 11. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation ⋑ Higher amount of machine/worker idle time ⋑ More efficient when demand pattern is stable ⋑ When there is a sudden change in the demand pattern it will take time for JIT system to react since there is no central information unit ⋑ It may be difficult and expensive to introduce ⋑ There is little room for mistakes as minimal stock is kept for reworking faulty product ⋑ Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed 11 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  12. 12. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation ⋑ Higher amount of machine/worker idle time ⋑ It requires more training, more consciousness, more employee commitment ⋑ More difficult goals to be attained ⋑ Coordination between customer and suppliers need to be much better and disciplined 12 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  13. 13. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation A small time that is the key control for JIT production 13 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  14. 14. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation A unique production control method It can be based on supermarket method Taiichi Ohno ,promoted the idea of JIT, applied this concept KAN= card BAN=signals It is a Japanese word for card & the use of card is central to many Japanese control systems including one at Toyota whose kanban system has received 14 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  15. 15. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation 15 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  16. 16. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation Non-value added. Muda is translated as waste There are Seven types of muda OVER PRODUCTION MOTIVE WAITING MUDA CONVEYANCE CORRECTION INVENTORY 16 PROCESSING Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  17. 17. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation Reduce Setup Times All setup practices are wasteful because they add no value and they tie up labor and equipment. By organizing procedures, using carts, and training workers Small-Lot Production Producing things in large batches results in huge setup costs, high capital cost of inventories. Because Toyota has found the way to make setups short and inexpensive Employee Involvement and Empowerment Toyota organized their workers by forming teams and gave them the responsibility and training to do many specialized tasks 17 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  18. 18. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation Quality at the Source To eliminate product defects, they must be discovered and corrected as soon as possible. If a defect cannot be readily fixed, any worker can halt the entire line by pulling a cord (called Jidoka) Equipment Maintenance Toyota operators are assigned primary responsibility for basic maintenance since they are in the best position to detect signs of malfunctions Pull Production To reduce inventory holding costs and lead times, Toyota developed the pull production method wherein 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 Toyota treats its suppliers as partners, as integral elements of Toyota Production System (TPS) 18 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  19. 19. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation A system of continuous improvement in which instances of Muda (waste) are eliminated one-by-one at minimal cost. This is performed by all employees rather than by specialists 19 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  20. 20. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation 20 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
  21. 21. Impact of JIT Inventory on procurement function in Perspective of Toyota Motor Corporation 21 Project Procurement and Contracts, MSPM, Riphah International University, Islamabad, Pakistan
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