Toyota production system

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  • 1. Toyota Production System Presented By : Group 10 Pavan Kumar Singh (101) Saurabh Subodh (114) Sarvendra Singh (63) Chandrasekhar (78) Anshumman (116) Savneet Kaur (84
  • 2. Introduction • Toyota Motor Corporation is a Japanese multinational automaker headquartered in Toyota City, Aichi, Japan • The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. • Prior to 1937 Toyota Industries was in textile machinery business and they used to manufacturing power loom • Toyota is the eleventh-largest company in the world by revenue with a annual revenue of $226.106 billion.
  • 3. Introduction • Toyota sold 9.75 million vehicles in 2012, an increase of 22% on last year’s sales. • In July 2012, the company reported it had manufactured its 200-millionth vehicle. • Toyota subsidiaries are (including the Scion brand), Lexus, Daihatsu, and Hino Motors.
  • 4. Toyota Production System • Toyota Production System (TPS) was developed by TAIICHI OHNO . He also trained Toyota’s Engineers about how to use and implement the system. • The focus of TPS was ‘reduction of cost through elimination of waste’ • Waste was identified as any material or action that did not add value to the final product. • Japan has few natural resources therefore TPS tried to increase the efficiency by eliminating waste and lowering cost
  • 5. Toyota Production System • TPS consisted of two aspects – the ‘hard’ or the technical part and the ‘soft’ or people related parts. • The ‘hard’ aspect focused on manufacturing system like Just in Time (JIT) and Kanban. • The ‘soft’ aspect focused on ‘respect for human’ which included suppliers and workers.
  • 6. Just In Time • Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying cost. • "Just-in-Time" means making "only what is needed, when it is needed, and in the amount needed." • JIT was foundation of TPS, Its aim was to eliminate waste of all kind by producing or supplying materials only when they were needed. • JIT was specially important for Toyota as the company was based in a country where flat industrial land was scarce.
  • 7. Just In Time • Adopting JIT allowed Toyota to do away with inventory and stores, thereby cutting out the corresponding cost. • JIT at Toyota was reverse reasoning, and the working of production line started at the point of customer demand. In short Demand pulled the factory workflow. • Toyota sourcing strategy was governed by “Buy” and it was important for the company to be able to get its component on time
  • 8. Kanban System • Kanban is a system to control the logistical chain from a production point of view, and is not an inventory control system. Kanban was developed by Taiichi Ohno, at Toyota, to improve and maintain a high level of production. Kanban is one method through which JIT is achieved. • Kanban cards are a key component of Kanban and signal the need to move materials within a manufacturing or production facility or move materials from an outside supplier in to the production facility.
  • 9. Kanban System
  • 10. Kanban’s six rules • Do not send defective products to the subsequent process • The subsequent process withdraws only what is needed • Produce only the exact quantity withdrawn by the subsequent process • Level the production • Stabilize and rationalize the process
  • 11. Kaizen • Kaizen means ‘continuous improvement’ and was another important element of TPS. • Kaizen required all employees to participate in eliminating all activities that were classified as west for the production system. • Kaizen involves observation of workers and their work process. Sometime video recording s are made to observe the movement of workers. • OHNO believes that observation was the best way to spot the problems
  • 12. Kaizen • The focus of Kaizen was not just to identify a problems and develop a solution, but to understand the problem and all its alternatives thoroughly . • An important element of Kaizen was error proofing. It involved the creation of processes that moved smoothly from step to step without giving room to error to creep in.
  • 13. Human element • In most of the manufacturing organizations, labor is treated like just another factor of production and no efforts is made to develop the creativity of workers . However the human element played an important role in TPS. • The main consideration in TPS  Consideration for workers safety  Any employee at any level of the hierarchy had a right to make improvements in processes.  Training and development of workers.
  • 14. Benefits • TPS conferred a great amount of flexibility and productivity enhancing capability on Toyota. By the early 2000s, Toyota had a capability to manufacture a car, from raw material to final assembly, in five days. • Concepts like Kaizen, Jidoka ensured that high level of quality were maintained, making Toyota one of the best car company in the world. • Toyota’s strong relationship with its suppliers also ensured that company was able to implement JIT effectively. • Many organizations in US and Europe also adopted the TPS.
  • 15. THANKS