1957:- Eijji Renamed Toyota as “The Toyota Company” 1968:- Toyota’s first export to the USA. 1970s:- Major boost in the Japan due to oil crises. 1980s:- Toyota brought TPS in the USA with a Joint Venture to The GM. 1983:- Company’s name changed to Toyota motor Corporation. 1988:- Toyota Opened its New plant in Georgetown. 1999-2000:- Toyota listed on NYSE & LSE and become one of the top manufactures of cars in the world.
TOYATA PRODUCTION SYSTEM Joint effort of, Sakichi, Kiichiro and Eijji. Ohno’s Contribution
Streamlined the concept and develop them into formal system.
Trained the engineer’s about how to use and implement the system.
Efficient use of available resources by reducing wastes and lowering costs.
Feeling of equality by abolishing the hierarchical structure.
AIM OF TPS Reduction of cost through elimination of wastes or MUDA. Identify the cropped up problems and solved it out.
ASPECTS OF TPS TPS SOFT/PEOPLE RELATED HARD/TECHNICAL PART JIT WORKER’S KANBAN SUPPLIERS
JUST IN TIME (JIT) Foundation of TPS. Principle: Produce necessary items at necessary time and in the necessary amount. Why this JIT became a necessity? Because of scarce flat industrial land. Little scope of vertical integration unlike General Motors. Aim of JIT Make production process smoother by eliminating unnatural peaks and gullies as it help in keeping the standards up to the mark.
Concept of TPS came from US super market. Basis of JIT is reverse reasoning and the production process started on consumer demand. Based on ‘PULL’ rather than ‘PUSH’. KANBAN Its means SIGN BOARD Effectively control production system. The details about units needed and the quantity in which they were needed on a card called the KANBAN. System was made of fixed no. of container each holding a certain fixed quantity of parts.
Kanban is used to facilitate the movement of inventory between different process on the production line. Withdrawal Kanban is carried when going from one process to the preceding process. Production Kanban is used to order production of the portion withdrawn by the subsequent process. The production activities of the final assembly line are connected in a manner like a chain to preceding processes. KANBAN WITHDRAWL/CONVEYANCE PRODUCTION
KAIZEN The continuous process of improvement is known as Kaizen and is most important element in TPS. Implementation of Kaizen in Toyota Improvement of process flow to reduce wastage. The changes are generally small and incremental Observation is best way to spot problemsand in order to do this, visit the workplace daily. Ask questions over and over again to find the root cause and stop it from reoccur. Understand problem and work on all possible alternative solutions.
HUMAN ELEMENT The main consideration in TPS:- Elimination of wasteful movements by workers. Consideration of workers safety. Self display of workers capabilities by entrusting them with responsibility and authority. TPS Emphasized on flexibility and teamwork.
Benefits Conferred great amount of flexibility and productive-enhancing capabilities on Toyota, by making best use of its resources got greater productivity Toyota able to assemble in 5 days whereas other companies took 30 days to do the same Toyota, being protective of its supplier & maintained close relationship with them unlike its rivals in western countries who rather believed in hostile relationship. Strong relationship with suppliers ensured that the company was able to implement JIT effectively, achieving higher flexibility and lower inventory costs
challenges At Toyota, system grew out of discrete programs that were implemented over the years The time TPS took for its implementation 1st client company had to reform its organizational culture and entire value system to suit TPS led to complications
Thus to promote TPS, toyota set up the TSCC, headquartered in Kentucky, to help companies genuinely interested in adopting TPS to implement it.
Toyota didn’t charge any fee for its services, but only the consultants’ expenses .
But for others, to implement the TPS, took at least 2 years & involved a number of system-wide changes After implementation, things become worse before they become better leading to demoralization of the company resulting in abandoning of TPS If system doesn’t sustained constantly, things could slip back to earlier form or even become worse
TPS, the system of the future The writers believing TPS to becoming the standard global production system of the future by supplanting both mass production and craft production. Writer supported his conclusion by giving examples of various successful companies from US & Europe implementing TPS But managements of many western countries still not able to relate ideals like empowerment and decentralisation since they are inclined more toward command and control philosophies & vertical organisational structure. However to survive in this competitive market, manufacturing companies have to look forward to keep costs at a minimum that can be done using TPS.