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Toyota: Supermarket for Cars

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Slideshow looking at Toyota's famous production system, sometimes called the supermarket for cars.

A resource created by Mr McGowan for Higher Business Management students and the Operations topic.

Published in: Business, Sports
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Toyota: Supermarket for Cars

  1. Supermarket for Cars www.mrmcgowan. blogspot
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  3. Toyota-Shi <ul><li>Toyota-Shi means Toyota City. </li></ul><ul><li>This is near Nagoya, and is the home of the world’s most revolutionary automotive company. </li></ul>
  4. Why is locale important? <ul><li>All suppliers to Toyota Motor Works are located close to Toyota-Shi. </li></ul><ul><li>Excellent relationships with suppliers were vital to what emerged from Toyota-Shi. </li></ul>
  5. Kiirchiro Toyoda <ul><li>Son of Sakichi Toyoda, a famous Japanese inventor </li></ul><ul><li>In 1935 he compared automobile assembly to that of American supermarkets </li></ul><ul><li>An idea was born </li></ul>FACTOID: Toyoda is deemed unlucky when written in Japanese. So Toyota was used instead!
  6. The Traditional Way… <ul><li>Before Toyoda, assembly lines involved lots of stock being moved about </li></ul><ul><li>It was costly and needed great coordination between stages </li></ul>
  7. Taiichi Ohno <ul><li>After Toyoda’s death it was this engineer and teacher who turned dreams into a reality. </li></ul><ul><li>Unusual for a Japanese, he is something of a rebel. </li></ul><ul><li>It was Ohno who brought all the elements together to form the Toyota Production System. </li></ul>
  8. Toyota Production System <ul><li>The three central elements to this revolutionary system were: </li></ul><ul><li>Just-in-time </li></ul><ul><li>Kanban </li></ul><ul><li>Jidoka </li></ul>
  9. Just-in-time <ul><li>Aims for zero inventory </li></ul><ul><li>Parts are not kept in warehouse </li></ul><ul><li>Parts arrive when needed </li></ul><ul><li>It took 50 years to perfect the process! </li></ul>
  10. Think… <ul><li>What are the benefits of Just-in-time? </li></ul><ul><li>What are the costs of Just-in-time? </li></ul>
  11. Kanban <ul><li>Is a coloured paper card that </li></ul><ul><li>travels the production line </li></ul><ul><li>with the actual parts. </li></ul><ul><li>Information includes: </li></ul><ul><li>Where parts should go </li></ul><ul><li>How many there are </li></ul><ul><li>What time they must arrive at next destination </li></ul>KANBAN: A card which acts as a signal to move or provide resources in a factory
  12. <ul><li>Kanban scheduling systems operate like supermarkets. A small stock of every item sits in a dedicated location with a fixed space allocation. Customers come to the store and visually select items. An electronic signal goes to the supermarket's regional warehouse detailing which items have sold. The warehouse prepares a (usually) daily replenishment of the exact items sold. </li></ul><ul><li>In modern supermarkets Kanban signals come from checkout scanners. They travel electronically (usually once a day) to the warehouse. Smaller stores still use visual systems. Here, a clerk walks the aisles daily. From empty spaces he deduces what sold and orders replacements. </li></ul>
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  14. <ul><li>In the manufacturing kanban system overpage, a machine shop supplies components to final assembly. Assembly is a manual operation with little setup and produces in lot sizes of one, to customer requirements. </li></ul><ul><li>Machining is more automated and has significant setup costs. Machining produces in batches to amortize the setup and sequence parts to minimize tool changes. </li></ul><ul><li>A small quantity of each part is maintained at machining. By observing the quantities, the machinists know what products need to be made. </li></ul>
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  17. Jidoka <ul><li>Jidoka means automation . However it now means more than just that. </li></ul><ul><li>Machines had sensors introduced to help identify faults in the production process. </li></ul><ul><li>Workers are told to never trust a machine and use their own eyes if a problem develops. </li></ul><ul><li>Jidoka also means a worker can stop the entire line if he or she feels there is something wrong. </li></ul>
  18. Quality Circles <ul><li>Toyota invented this group of workers who discuss ways to do their work better </li></ul><ul><li>At Toyota, managers do 90% of the time what the quality circles tell them to do! </li></ul>
  19. Finally… <ul><li>These processes have helped shaped modern industry. </li></ul><ul><li>Lean production has been referred to as: “The machine that changed the world” </li></ul>

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