Toyota production system


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Toyota production system

  1. 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. 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. 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. 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. 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. 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. 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. 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. 9. Kanban System
  10. 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. 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. 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. 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. 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. 15. THANKS