1. TOYOTA WAY JIT & Lean Operations Credits: Aditya Negi (191064) Ankit D Jethani (191073) Ankita Sehjpal (191076) Anshul Kaul (191077) Khem Singh (191090) Prateek Jain (191104)

2. Just-In-Time (JIT) Just-in-time (JIT) refers to an operations system in which materials are moved through the system with precise timing so that they are delivered at each step of the process “just as they are needed”. JIT is a philosophy of continuous and forced problem solving via a focus on throughput and reduced inventory Also , known as a stockless production No need for inventory or stock, either of raw materials or work in progress or finished goods

4. It is an overall business strategy as opposed to JIT which is tool of lean manufacturing.

5. Tend to achieve

6. Greater productivity

7. Lower costs

8. Shorter cycle times

10. Developed by Taiichi Ohno and Shigeo Ohno of Toyota

11. Focus was on eliminating all waste from every aspect of the process

13. Terms contd.. Jidoka: (Autonomation) , Quality at the source, a form of automation in which machinery automatically inspects each item after producing it Poka-yoke: a defect warning system, safeguards built into a process to reduce the possibility of errors Team concept: use small teams of workers for process improvement Mura– inconsistency Muri – unreasonableness Nagara – smooth production flow, ideally one piece at a time,

14. Toyota Production System (TPS) Definition: The production system developed by Toyota Motor Corporation to provide best quality, lowest cost, and shortest lead time through the elimination of waste. TPS was created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno. TPS comprises of two pillars: Just-in-Time and Jidoka (autonomation) , and is often illustrated with the "house" shown on the next slide. TPS is maintained and improved through iterations of standardized work and kaizen (continuous improvement), following Plan–Do-Check-Act (PDCA Cycle)

15. House of Toyota

16. Ultimate Goal A balanced rapid flow Supporting Goals Eliminate disruptions Eliminate waste Make the system flexible Building Blocks Personnel / organizational Elements Product Design Process Design Manufacturing Planning Goals and Building Blocks of Lean Systems

19. Represents unproductive resources

20. Seven sources of waste in lean systems:Inventory Overproduction Waiting time Unnecessary transporting Processing waste Inefficient work methods Product defects

21. Elimination of Waste Focused factory networks Group technology Quality at the source JIT production Uniform plant loading Kanban production control system Minimized setup times

22. Building Blocks: Product Design Standard parts: workers have fewer parts to deal with, and training time and costs are removed Modular design: is an extension of standard parts. Clusters of parts are treated as single unit Highly capable production systems Concurrent engineering

25. The cycle time needed to match customer demand for final product

26. Sometimes referred to as the heartbeat of a lean system

27. Takt time is often set for a work shift

28. Procedure:Determine the net time available per shift If there is more than one shift per day, multiply the net time by the number of shifts Compute the takt time by dividing the net available time by demand

30. Inventories are buffers that tend to cover up recurring problems that are never resolved

31. partly because they are not obvious

33. Traditional systems use inventory (water) to buffer the process from problems (rocks) that cause disruption. Material quality problems Poor training Material handling Break downs Long setups

34. JIT systems view inventory as waste and work to lower inventory levels to expose and correct the problems (rocks) that cause disruption. Material quality problems Poor training Material handling Break downs Long setups

35. Lowering the level of inventory is relatively easy to do. However, the problems that arise must be corrected quickly … Otherwise, without decoupling inventory, the process will flounder. Material quality problems Poor training Material handling Break downs Long setups

36. 4. The cycle then repeats. 1. You receive an order quantity Q. Number of units on hand Q Q Q R L L 2. Your start using them up over time. 3. When you reach down to a level of inventory of R, you place your next Q sized order. Time R = Reorder point Q = Economic order quantity L = Lead time How to manage Inventory

38. Building safeguards into a process to reduce or eliminate the potential for errors during a process

39. Examples

40. Electric breakers

41. Seatbelt fastener warnings

42. ATMs that signal if a card is let in a machine

44. Workers as assets

45. Cross-trained workers

46. Continuous improvement

47. Cost accounting

49. Well-trained and motivated workers are the heart of the lean system

50. They are given greater authority to make decisions, but more is expected of them

51. Cross-trained workers

52. Workers are trained to perform several parts of a process and operate a variety of machines

53. Facilitates flexibility

54. Helps in line balancing

55. Cost accounting

56. Activity-based costing

57. Allocation of overhead to specific jobs based on their percentage of activities

58. Leadership/project management

59. Managers are expected to be leaders and facilitators, not order givers

62. is loading your production system according to the exact needs of your customers

63. must have the ability to switch from one product to another very quickly (usually automatically) to make this system work

64. Push and Pull

65. MRP(material requirements planning) is the classic push system. The MRP system computes production schedules for all levels based on forecasts of sales of end items. Once produced, subassemblies are pushed to next level whether needed or not.

67. Finished goods Customer order Kanban Work cell Ship Raw Material Supplier Kanban Kanban Final assembly Kanban Kanban Sub-assembly Kanban No. of Kanban: N = 𝑫𝑻(𝟏+𝒙)𝑪 N = total no. of cards/container D = Usage Rate T = average waiting time X = Possible inefficiency in the system C = capacity of container Purchased Parts Supplier

69. Lower carrying costs

70. Increased flexibility

71. Aids scheduling

72. Saves costs of scrap and rework if there are design changes

73. Lower cycle-time variability

74. Close Vendor Relationship

75. Lean systems typically have close relationships with vendors

76. They are expected to provide frequent, small deliveries of high-quality goods

79. Workers/management may not be cooperative

80. It can be difficult to change the organizational culture to one consistent with the lean philosophy

82. Additional Reading