1. RAMESH CHANDRA
HPGD / JA 14 / 1788
SPECIALIZATION – SUPPLY CHAIN MANAGEMENT
WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH MUMBAI-400019
YEAR OF SUBMISSION OCTOBER 2015
3. TOYOTA PRODUCTION SYSTEM (TPS)
Toyota Motor Corporation's vehicle production system is a
way of "making things" that is sometimes referred to as
a "lean manufacturing system" or a "Just-in-Time (JIT)
system," and has come to be well known and studied
worldwide.
This production control system has been established
based on many years of continuous improvements, with
the objective of "making the vehicles ordered by
customers in the quickest and most efficient way, in
order to deliver the vehicles as quickly as possible.“
The Toyota Production System (TPS) was established
based on two concepts: The first is called "Jidoka"
(which can be loosely translated as "automation with a
human touch") which means that when a problem
occurs, the equipment stops immediately, preventing
defective products from being produced; The second is
the concept of "Just-in-Time," in which each process
produces only what is needed by the next process in a
continuous flow.
4. GOALS OF TOYOTA PRODUCTION SYSTEM
(TPS)
Provide world class quality and service to the customer.
Develop each employee’s potential, based on mutual
respect, trust and cooperation.
Reduce cost through the elimination of waste and
maximize profit
Develop flexible production standards based on market
demand.
6. Just In Time (JIT).
The JIT concepts aims to produce and deliver the right
parts, in the right amount, at the right time using the
minimum necessary resources. This system reduces
inventory, and strives to prevents both early and over
production. Producing in a JIT fashion exposes problems
quickly. With less inventory in a system the “rocks” are
quickly exposed in production that are disrupting flow.
Most companies shy away problems and use inventory to
hide these problem and avoid potential disruptions. In
Toyota however the opposite logic is applied. By reducing
inventory you expose the real problems in a production
process quickly and focus need for improvement. This
notion of surfacing problems and abnormalities is a critical
concept in TPS. Of course unless you can solve the
problem that you expose there is a danger to this
approach.
There are several important components to TPS: takt time,
flow production, pulls via kanban, and leveling (heijunka).
7. JIDOKA (Build in quality)
Jidoka is the second pillar of the system. There are two
parts to Jidoka –
Building in quality at the process and
Enabling separation of man from machine in work
environments.
Jidoka is a Japanese work that ordinarily mean automatic
or automation. However Toyota puts a specific twist on
this word by adding a what is known as a “radical” in
depicting kanji characters. The radical added to the left
of one of the kanji characters in Jidoka means “human”.
In other words TPS aspires for processes that are
capable of making intelligent decisions and shutting
down automatically at the first sign of an abnormal
condition such as a defect, or other problem. The goal is
not to run continuously but in other words to stop.
8. FOCUS AREA OF TPS
Eliminating Waste
Quality
Cost
Productivity
Safety and Morale
9. LEAN PRODUCTION
At Toyota known as the Toyota Production System
(TPS) focuses on value creation. All business and
industrial processes have, as their ultimate objective to
create value for a customer, be it for an internal or for
an external customer. In reality, however, most such
processes are full of non value creating activities, waste.
It has been calculated that in most industrial and
administrative processes in a company, less than a
percent of the total lead time (time from the start of
processing until the product can be delivered to the
customer) consists of value-adding time.
12. JIDOKA (AUTOMATION WITH A HUMAN
TOUCH)
Line Stop Jidoka
Jidoka, as applied to manned operations, refers to the practice of
stopping the entire line or process when something goes amiss. This has
important psychological and practical effects that contribute greatly to
"continuous Improvement."
Jidoka (Line Stoppage Variation)
Jidoka (literally translated) means "Automation". Through shop usage
at Toyota the word has taken on other connotations. One meaning refers to
the stopping of a manual assembly or production line when something goes
amiss.
13. PRINCIPLES OF JIDOKA FOR QUALITY
PRODUCTION
Jidoka is the principle used in autonomation , which is the
complementation of the automation process with human
touch. The Jidoka principle states that any defects detected
during the production process is corrected at the earliest
stage possible even if it means stopping the production
process so that the defect can be corrected. Once the defect
has been addressed the investigation continues so that the
root cause of the problem is identified and addressed.
Jidoka gives the automation process a human touch thus
ensuring that the goods produced are of the highest
standard possible. This ensures that the goods produced do
not have defects, hence reducing the costs of repair or
recall.
14. BENEFITS OF JIDOKA
Helps in detection of problem at earlier stages
It helps in becoming world class organization
Human intelligence is integrated into automated machinery
Defect free products are produced
Enhances substantial improvement in productivity of the
organization
15. GOALS ACHIEVED WITH JIDOKA
Effective utilization of manpower
Product produced will be of top quality
Shorter delivery time of products
Reduction in equipment failure rate
Improve level of customer satisfaction
Increase quality of final product
Lower costs (Internal, External, and Appraisal cost etc.)
16.
17. JUST-IN-TIME
“Producing and/or delivering only the necessary parts,
within the necessary time in the necessary quantity using
the minimum necessary resources”.
Just-in-time (JIT) is a management philosophy that strives to
eliminate sources of manufacturing waste by producing the
right part in the right place at the right time. Waste results
from any activity that adds cost without adding value, such as
moving and storing.
JIT (also known as lean production or stockless production)
should improve profits and return on investment by reducing
inventory levels (increasing the inventory turnover rate),
reducing variability, improving product quality, reducing
production and delivery lead times, and reducing other costs
(such as those associated with machine setup and equipment
breakdown).
In a JIT system, underutilized (excess) capacity is used instead of
buffer inventories to hedge against problems that may arise.
JIT applies primarily to repetitive manufacturing processes in
which the same products and components are produced over
and over again.
19. ELEMENTS OF JUST IN TIME
People Involvement
Stockholders and owners of the company
Labor Organization
Management Support
Government Support
Plants
Plant layout
Demand pull production
Kanban
Self-inspection
Continuous improvement
20.
21.
22. GOAL OF JUST IN TIME
Increasing the organizations ability to compete with others
and remain competitive
Increasing efficiency within the production process
Reducing wasted materials, time and effort.
Reduction of Inventory
Reduction of Lead Time
Improvement for Performance
23. LIMITATION OF JUST IN TIME
Culture Differences
• The organizational cultures vary from firm to firm. There are some cultures
that tie to JIT success but it is difficult for an organization to change its
cultures within a short time.·
Traditional Approaches
The traditional approach in manufacturing is to store up a large amount of
inventory in the means of backing up during bad time. Those companies rely
on safety stocks may have a problem with the use of JIT.
Difference in implementation of JIT
Because JIT was originally established in Japanese, it is somehow different
for implementing in western countries. The benefits may vary.
24. SOME OTHERS LIMITATION ARE
Loss of individual autonomy
Loss of team autonomy
Loss of method autonomy
25. IMPLEMENTATION OF JIT
To train the top management in the basic concepts of JIT:
Guidelines for Successful JIT Implementation
Requirement for Implementing JIT
Supplier Management
27. KANBAN JUST-IN-TIME AT
TOYOTA
A visual sign or signal that conveys a set of instructions
to either withdraw parts or produce a given product is
called a kanban.
Kanban is generally recognized as a card that passes
between processes, communicating information as to
what materials to replenish.
When we talk about Kanban Just-In-Time, you may be
have a question which company set a very good
example to fulfill this approach. The answer is
Japanese company ------Toyota.
Not only did Toyota take advantage of Kanban Just-In-
Time, but it also get a very good benefit to operate its
company.
Kanban just-In-Time helps companies solving many
Manufacturing problems. Kanban derives it name
from the manufacturing systems and processes
implemented at Toyota Motor Manufacturing that are
so effective at producing at low cost, high quality, and
short cycle times.
28.
29. PULL SYSTEM
In conventional production systems, parts produced
by one process, as defined by the production schedule,
are delivered to following processes even if they are
not yet needed there. This method may be good when
parts can be produced on schedule throughout the
whole process. But if just one process has trouble and
the line stops, the processes directly related to the
troubled one will suffer from either a shortage or a
backup of parts. This is called a “push” system.
The pull system eliminates under or over production
by limiting production to those parts demanded by
the next downstream process.
