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Toyota

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Toyota\'s Production System

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Toyota

  1. 1. Taiichi Ohno & the Toyota Production System <ul><li>Presented by: </li></ul><ul><li>Gaurav Gupta </li></ul>
  2. 2. Introduction <ul><li>Toyota’s History </li></ul><ul><li>Toyota’s first export to U.S. was not successful </li></ul><ul><li>In 2004 Toyota’s net earning was double the combined net earnings of automobile majors. </li></ul>
  3. 3. Taiichi Ohno <ul><li>Born in 1912 in China. </li></ul><ul><li>He introduced JIT and Kanban system. </li></ul><ul><li>In 1975, Ohno became the Vice President of Toyota. </li></ul><ul><li>Died in 1990 in Toyota city. </li></ul>
  4. 4. The Toyota Production System(TPS ) <ul><li>Collaborative effort of Ohno , Sakichi , Kiichiro and Eiji. </li></ul><ul><li>Focus was on ‘Reduction of cost through elimination of the waste. </li></ul><ul><li>TPS consists of two parts : </li></ul><ul><li>‘ the hard or the technical part’ and </li></ul><ul><li>‘ the soft or people related part’ </li></ul>
  5. 5. Just In Time (JIT ) <ul><li>JIT was the foundation of the TPS. </li></ul><ul><li>Underlying Principle : </li></ul><ul><li>“ Produce only the necessary products, at the necessary time and in the necessary quantity.” </li></ul><ul><li>JIT governed Toyota’s buy strategy. </li></ul>
  6. 6. <ul><ul><li>The concept of JIT was based on the </li></ul></ul><ul><ul><ul><ul><li>‘ Reverse Reasoning’ </li></ul></ul></ul></ul><ul><ul><li>Based on the ‘PULL’ system of manufacturing and not on ‘PUSH’ system. </li></ul></ul><ul><ul><li>Complexity of the process gave birth to the ‘Kanban System.’ </li></ul></ul>DEMAND ASSEMBLY DELIVERY OF PARTS SUPPLY BY SUPPLIER
  7. 7. <ul><li>The word Kan means &quot;visual&quot; in Japanese and the word &quot;ban&quot; means &quot;card&quot;. So Kanban refers to &quot;visual cards&quot;. </li></ul>
  8. 8. What Are The Benefits of Kanban? <ul><li>Reduces inventory and product obsolescence </li></ul><ul><li>Reduces waste and scrap </li></ul><ul><li>Provides flexibility in production </li></ul><ul><li>Increases Output </li></ul><ul><li>Reduces Total Cost </li></ul>
  9. 9. KAIZEN <ul><li>Means ‘continuous improvement’. </li></ul><ul><li>Eliminating all ‘waste’. </li></ul><ul><li>Observation. </li></ul><ul><li>Understand the problem. </li></ul><ul><li>Commitment of the management. </li></ul><ul><li>Poka-yoke or error proofing. </li></ul>
  10. 10. Pre-requisites for kaizen <ul><li>Discard conventional fixed ideas. </li></ul><ul><li>Don’t make excuses. </li></ul><ul><li>Correct it right away , if you make a mistake. </li></ul><ul><li>Seek the wisdom of ten people rather than that of one. </li></ul><ul><li>Think of how to do it , not why it cannot be done. </li></ul><ul><li>Ask ‘Why?’ five times. </li></ul>
  11. 11. HUMAN ELEMENTS <ul><li>Team work </li></ul><ul><li>Safety work place </li></ul><ul><li>Visible control </li></ul><ul><li>Conduct production activities . </li></ul>
  12. 12. JIDOKA <ul><li>Andon cord </li></ul><ul><li>Training & development </li></ul><ul><li>Physical fitness </li></ul><ul><li>Preference to engineers. </li></ul>
  13. 13. Ohno’s Seven Wastes <ul><li>Defects </li></ul><ul><li>Over Production </li></ul><ul><li>Waiting </li></ul><ul><li>Transporting </li></ul><ul><li>Movement </li></ul><ul><li>Inappropriate Processing </li></ul><ul><li>Inventory </li></ul>
  14. 14. Push System Raw material Parts Manufacture Assembly Product
  15. 15. Pull System Demand Assembly Parts Supply Raw Materials
  16. 16. Conclusion <ul><li>Benefits </li></ul><ul><li>Challenges </li></ul>
  17. 17. Thank You

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