Introduction of Toyota Production System to            Promote Innovative Manufacturing            V Yuichi Sakai     V To...
Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturingappliances industry and to st...
Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing      Just-In-Time principle ...
Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing4. First-stage activities    ...
Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing    adjustment of personnel, ...
Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing                             ...
Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing                             ...
Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing                             ...
Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturingoff the ground and systems th...
Upcoming SlideShare
Loading in …5
×

Toyota production system

1,237 views

Published on

toyota follow the two technologies for their manufacturing system to smooth

Published in: Education, Business, Technology
  • Be the first to like this

Toyota production system

  1. 1. Introduction of Toyota Production System to Promote Innovative Manufacturing V Yuichi Sakai V Toshihiko Sugano V Tomohiko Maeda (Manuscript received June 6, 2006) Until recently, Fujitsu employed various strategies to improve productivity and efficiency at its plants and business units. In 2003, however, we introduced the Toyota Production System (TPS) throughout the company to promote innovative manufactur- ing. This system is intended to achieve company-wide innovation not only at the plant level, but also for product delivery processes from the sales sections to the customers and for processes upstream of design and development. The system is still under construction, and we are now addressing various problems posed at each plant and business unit. This system is also intended to bring innovation to the processes performed between the plants, suppliers, and customers by linking with upstream development sections. This paper examines the progress of introducing TPS, using its introduction at some of our Information and Communication Technolo- gy product plants as examples.1. Introduction introduce TPS, we first sought guidance from To overcome the difficulties caused by the well-informed outside consultants and then, indeteriorating business environment and to 2004, we stared developing full-scale activitiesaccomplish continuous improvement, Fujitsu has with the ultimate goal of reforming the corporateuntil recently employed various strategies to structure and climate.improve productivity at its plants and business In this paper, we describe the TPS introduc-units. tion policy we developed for our production In 2003, in response to the need to further innovation activities and look at its imple-implement these activities throughout the whole mentation at some of our Information andcompany, Fujitsu announced a policy of introduc- Communication Technology product plants . Weing the Toyota Production System (TPS)1),2) as an then describe these activities and the results thatextensive company-wide activity. First, the were obtained. Finally, we describe our plans formanufacturing sites were designated as the future development.starting points, and we started activities thatfocused on returning to total supply chain 2. Establishment of newmanagement (SCM) of production activities and manufacturing promotionreturning to the upstream design departments. division and innovation policyTo convert from the staff-led improvement 2.1 Establishment of new manufacturingactivities approach that had been used to date, promotion divisionwe focused on employee consciousness and instruc- To escape from the need to carry out struc-tion and started implementing TPS from zero at tural reforms in response to the continuingeach plant and manufacturing subsidiary. To depression of the electrical machinery and14 FUJITSU Sci. Tech. J., 43,1,p.14-22(January 2007)
  2. 2. Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturingappliances industry and to strengthen our global IA servers, other products)competitiveness even with products manufactured • Shimane Fujitsu Limited (notebook PCs)domestically, we established the Manufacturing • Fujitsu Peripherals Limited (displays,Promotion Division in September 2003 to focus printers)on our manufacturing activities in Japan. • Fujitsu Interconnect Technologies Limited Two new departments — the Distribution (printed circuit boards)Infrastructure Servicing Department and the • Fujitsu Frontech Limited (equipment forManufacturing Plant Department — have been financial institutions)added to the departments that comprised the old • Fujitsu Kasei Limited (modules, lightdivision; namely, the Industry Engineering (IE) connectors, other products)Department and departments related to produc-tion technology and facilities development. The 2.2 Innovative manufacturing policyroles of the new division are as follows: Fujitsu has established the following three1) Development of production innovation points as its manufacturing policy. activities, overseeing the management of the 1) Customer-focused progress of the activities, and training of the • Product manufacturing that provides value engineers designated to implement the to the customer activities 2) The importance of customer values2) Construction of the priority plant for putting • Needs (functions, performance, ease of use), TPS into practice and human development quality, delivery (Time To Market), price of plant personnel 3) High value-added manufacturing that3) Introduction of TPS into the distribution utilizes Fujitsu’s strengths departments (component procurement, • Providing products with the high reliability product shipment) and strengthening of that was cultivated in the development of cooperation with the manufacturing plants core products4) Development of low-cost production technol- • Providing products with the speed and cost ogy and nano production technology priorities that were cultivated in the One of the objectives of the new division is development of PCs and mobile phonesthe promotion of innovative manufacturing Based on this policy, and with the goals ofcentered on the following Information and implementing reforms in the upstream designCommunication Technology product plants. stage of the manufacturing process and reform-• Oyama Plant (photonics, light modules) ing the overall process — from sales activities• Nasu Plant (mobile systems, mobile phones) through to product delivery to the customer — we• Fujitsu Access Limited (transmission selected manufacturing sites as the starting points equipment) and set the target of doubling their productivity• Fujitsu Wireless Systems Limited (multiplex levels within two years. radio equipment) To achieve this target, we established the• Fujitsu I-Network Systems Limited following three concepts as our innovative (switching devices, other equipment) manufacturing themes.• Fujitsu IT Products Limited (servers, 1) Production line innovation storage systems, other equipment) Introduction and development of TPS,• Shin-Etsu Fujitsu Limited (magnetic tape development of reforms that return to the up- libraries, other products) stream stages• Fujitsu Isotech Limited (personal computers, 2) Supply chain innovationFUJITSU Sci. Tech. J., 43,1,(January 2007) 15
  3. 3. Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing Just-In-Time principle for the entire process is needed in only the required quantity when it isfrom component procurement through to product needed. This system creates a mechanism thatshipment (observance of delivery date, compres- eliminates product stagnation, repeats operationssion of inventory) so they become actions that create a flow, and3) Development innovation visualizes conditions (distinguishes between Pursuit of the building-in of quality and ease normal and abnormal conditions) so that theof manufacturing and the reduction of costs and problem points can be actualized (Figure 1).development period Furthermore, the search for and solution to the The introduction of production line innova- root cause of a problem and the complete elimina-tion has been promoted as the main concept. tion of waste create a perpetual cycle. This systemHowever, it goes without saying that implement- places an emphasis on doing things thoroughly,ing these innovation themes in the future is not and we came to understand that a revolution injust a case of solving each problem as it presents consciousness is the most important factor for itsitself, but also requires knowing how to reform execution. However, when it came to putting TPSconsciousness and behavioral patterns, how to into practice, we lacked know-how about its truereform business processes and formations, and essence and the steps required for its implemen-how to promote human development. tation. We also needed to establish a route to company-wide innovation and required assistance3. Corporate activities and use of with the implementation of TPS activities. We outside consultants therefore asked outside consultants having a3.1 First plant to put TPS into practice thorough knowledge of TPS to implement the In May 2001, in advance of the company-wide activities.introduction of TPS, we selected a company in With some of our plants, however, we sharedthe Fujitsu Group that needed to improve its the know-how that we obtained from introducingmanagement as a test case; this company was the outside consultants so we could startFujitsu Component Limited. Outside TPS the introduction of TPS ourselves using aconsultants were used, and in the short period of co-development model.approximately 15 months we almost achieved ourhigh goals of a three-fold increase in productivity,a 50% reduction in inventories, and a 50%reduction in space. We also improved the Complete eliminationprofit-and-loss performance. of waste The introduction of TPS in this plant wasenabled by the sense of crisis felt by itsemployees and by their change in consciousness. A revolution in consciousness isIn addition, this is a successful example of a plant essentialthat achieved results by introducing TPS, which Visualizationis different in style to the improvement activities (Management of Create a flow normal/abnormal)used by Fujitsu to date. • Actualization of problem • Eliminate stagnation3.2 TPS and use of outside consultants points by distinguishing • Make actions repetitive between normal and The TPS that was introduced and developed abnormalat Fujitsu Component Limited is the pull produc- Figure 1tion system, which is designed for producing what Toyota Production System.16 FUJITSU Sci. Tech. J., 43,1,(January 2007)
  4. 4. Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing4. First-stage activities impressive results from two plants as described In this section, we introduce the activities at below.each plant from the start of production innova- 1) At plant A, after one year of activities theretion up to September 2004, when the activities was a 50% increase in productivity pergot off the ground after we received guidance from person, a 45% reduction in space as a resultthe outside consultants. of reducing the use of external warehouses and so forth, and a 50% reduction in the4.1 Implementation from base zero manufacturing lead time. These production innovation activities based 2) At plant B, after six months there was a 60%on the introduction of TPS did not start simulta- increase in productivity per person and a 75%neously. Instead, some plants started reforms of reduction in the manufacturing lead time ontheir own, while other plants made the shift the model line.because of the activities of the ManufacturingPromotion Division, which was working on the 5. Second-stage activitiespremise that the company should proceed as a The second stage started in October 2004,whole. By March 2004, however, first-stage when we introduced full-scale TPS through theactivities had started throughout the entire guidance of consultants. The second-stage activ-company. At each plant, advance preparations ities are as follows.such as employee consciousness-raising andeducation were made and the base-zero 2S 5.1 Development stepsprinciples of Sort and Straighten were introduced. In the second stage, TPS was introduced full- Building on this base, we used outside scale through the guidance of consultants. Whenconsultants in some of our plants from April 2004 we implemented the second-stage activities, theand began the full-scale introduction of TPS. following points were raised that were reflections on the first-stage activities:4.2 First-stage results of instruction 1) Although we are still addressing the creation activities and 2S/elimination of waste of a flow line, we are nevertheless address- activities ing it somehow or other. With regards to the As shown in Figure 2, the main activitiesthat we implemented prior to the introduction ofoutside consultants were as follows:1) Consciousness-raising and education of Training employees using videos and texts2) Instruction using displays such as personal targets, posters, activities news, and action Space-reducing item charts Displays activities3) Awards for excellent small-group activities First-stage activities4) Company-wide 2S activities: Sort and Straighten5) Activities to minimize the surplus spaces 2S activities Awards between processes Even with these types of activities, thereview of the procedures used to date and the Figure 2participation of all the employees led to First-stage activities.FUJITSU Sci. Tech. J., 43,1,(January 2007) 17
  5. 5. Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing adjustment of personnel, we addressed the determine the standardization of operations, reduction of person-hours for each process implement standardized operations, and and have obtained good results. However, further raise the level of visualization. our efforts in these issues were not sufficient 3) If the flow creation described in 1) and 2) can from the standpoints of being particular be achieved, use the ideology of the pull about and doing things thoroughly. system, which is the essence of TPS, as the2) Even with the Just-In-Time principle, we mechanism for construction. lacked the conviction to create a climate that 4) Use the Takt-time concept to manufacture allows thorough analyses and pursuit of products. In other words, reduce the waste issues such as manufacturing based on the caused by manufacturing too much. Create Takt-time (cell production-rate) way of think- a plant in which problems can be actualized ing; changing the focus from days to hours, and improvements can be made by control- from hours to minutes, and from minutes to ling the amount of work in progress (raising seconds; and the adjustment of personnel due the Just-In-Time level). to multi-process handling. In the pull system, the required amount of3) The consultants pointed out that before products are manufactured and stored at the same introducing TPS, we needed to attempt a location and then pulled at the required time. rectification of the process to see to what Particularly, the second-stage activities at the extent a flow line could be created. plants that implemented TPS independently and As a result of these reflections, we imple- did not receive guidance from the consultantsmented the second-stage activities in four steps include a review based on the four steps shown in(Figure 3) based on the following policies: Figure 3 while paying close attention to detail.1) Adjust the flow pattern, reorganize the manufacturing process, review equipment 5.2 Implementation of PDCA and issues constraints, remove flow route divergences In this section, we introduce the differences and confluences, and simplify. In addition, between the degree of activity implementation at connect processes and equipment and con- each plant and manufacturing subsidiary. We also struct a line so that assembly units flow introduce the problems and issues that arose with sequentially (single-piece flow). By doing the acceleration of activities. this, construct a line in which there is no In the initial phase of the second-stage waste due to accumulated items between activities, the activities of each plant followed the manufacturing processes and items set aside development steps. The implementation status and in which problems can be identified. of the grouped plants is shown in Figure 4:2) To achieve the improvements described in 1), 1) In the Group A plants, some progress was made in consciousness-raising and individu- al improvement in the plants, but little progress was made in addressing the rectifi- Small-lot/ Plant cation issue. Rectification single-piece Pull system pull system flow 2) In the Group B plants, powerful implemen- tation of consciousness-raising activities from Standardized operation the top and the participation of all the employees resulted in considerable progress in individual improvement. However, thereFigure 3Implementation steps. is still a long way to go regarding the address-18 FUJITSU Sci. Tech. J., 43,1,(January 2007)
  6. 6. Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing Group A Group B Group C Human development Job rotation, training Job rotation, training Job rotation, training Continuous improvement 2Ss, waste elimination 2Ss, waste elimination 2Ss, waste elimination mindset Automation with Automation with Automation with Automation a human touch a human touch a human touch with a human touch Rectification Rectification Rectification Just-In-Time Pull system Pull system Pull system Progress status Applied Partially applied Figure 4 Progress status of each plant in initial phase of second-stage activities when compared with development steps. ing of steps implemented prior to the pull intelligence to execute the policies? system. 4) To what extent do we need to foster such3) The Group C plants received guidance from talented people? the consultants, and development was done With these issues as the base, we will refor- based on the implementation steps. Good mulate development plans for each process and results were obtained in the model lines. production line based on the implementation When we look back to determine how to steps. This will allow us to properly expand thereview the situation and accelerate these activi- implementation from the plant units where theties at the plants in Groups A and B, which did activities were performed to each process andnot receive guidance from consultants, it is production line. We will then review the develop-obvious that powerful implementation from the ments and repeat the PDCA cycle for each unit.top and unified management objectives For the plants that are not receiving guidance(Figure 5) are indispensable. Moreover, in from the consultants, we established a system inaddition to these considerations, the following which the director responsible for manufacturingquestions are also important: activities periodically and thoroughly reviews all1) How do we repeat the control cycle (PDCA) activity confirmations . properly?2) How well is the consultants’ guidance under- 5.3 Results of implementing TPS principles stood, and how do we further develop it and Next, we introduce examples of results from transmit it to other areas? plants that have made progress in implementing3) To what extent are the plant personnel the TPS principles. responsible for improvement using their Among the plants that received guidanceFUJITSU Sci. Tech. J., 43,1,(January 2007) 19
  7. 7. Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing Development plan Management cycle Plan (Establish a plan) Human development de elopment Use intelligence Project Do Act management (Use intelligence (Review) to implement) Check (Diagnosis) • Powerful implementation from the top erful • Unified management objectives objectives Figure 5 PDCA diagram of activities.from consultants, the level of the system depend- time in the narrow range of the production plants.ed on the plant. The plant that realized the fastest In the future, we must make changes so we canreforms was the mobile systems products reduce the lead time company-wide and make ourmanufacturing plant, and the results that were companies and plants more profitable.achieved are as follows.1) Productivity in 2005 on the TPS-developed 6. Looking toward expansion to model line compared to results for 2003 company-wide production• 55% reduction in direct operations innovation activities• 48% reduction in manufacturing lead time Using the production line innovation activi-• 68% reduction in work-in-progress products ties described above as the starting point, and within the line from the standpoints of the actual location and2) Consciousness and behavioral patterns materials used there, direct interaction among the• Reduction in excuses for “why I can’t do that” plants, manufacturing subsidiaries, sales divi-• Employees started to share goals and sions, and development divisions became even provide mutual encouragement closer. In this environment, we began our full-• Plants where line improvements were hands- scale development toward overall production on started to change daily innovation activities (Figure 6). The themes of The system that enables problems in the this initiative are as follows.plant to be identified is still at the level at which 1) Cooperation with SCM departmentsit was created. The pull system, which links the • Introduce the TPS way of thinking from thesupplier to the customer and is the essence of TPS, manufacturing departments into the suppli-will be addressed in the future. Currently, there- er (supply chain) and customer (demandfore, the results are limited to a reduction in lead chain) distribution fields.20 FUJITSU Sci. Tech. J., 43,1,(January 2007)
  8. 8. Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturing Design/Development • Implementation of test optimization • Plant-originated strengthening of DFX, etc. iginated EC De elopment geared to Development towards all models, production lines models Procurement Product Sales Supplier Customer distribution Manu- Quality distribution SE Production facturing assurance SC • Introduction of TPS to distribution fields cooperation • Implementation in cooperation with sales depar tments departments (production leveling, rectification of work procedures), etc. EC : Engineering chain SC : Supply chain Figure 6 Development towards overall production innovation activities.• Implement cooperation with the sales depart- tion leveling, we have developed comprehensive ments with a view toward 1) reducing the point guides and a Web system for the standard manufacturing department’s product manu- delivery times, number of lot units, and facturing lead time, 2) reducing the lead time order-locked period so the sales departments’ of the information required to formulate a employees can fully understand it. We are also manufacturing plan at the plant that receives developing tracking monitors and other tools so the order, and 3) production leveling. details of the progress made in the manufactur-2) Cooperation with development departments ing process can be checked, and we plan to shortly• Carry out reforms that include quality proceed with full development. assurance in the testing process, which accounts for a large share of the manufac- 7. Conclusion turing lead time. In this paper, we described the TPS• With the plant as the starting point, strength- introduction policy we developed for our produc- en Design For X (DFX) methodologies to tion innovation activities and looked at its improve the manufacturability and testabil- implementation at some of our Information and ity at the design stage. Communication Technology product plants. We In particular, when talking with the sales then described these activities and the results thatdepartments, we take an information processing were obtained. Finally, we described our planssystem approach and tell them the distribution of for future development.the delivery dates of the main models and then We are currently at the stage where produc-focus on production leveling. To achieve produc- tion line innovations within the plants have gottenFUJITSU Sci. Tech. J., 43,1,(January 2007) 21
  9. 9. Y. Sakai et al.: Introduction of Toyota Production System to Promote Innovative Manufacturingoff the ground and systems that enable problems action of doing something anyway and seeing whatto be identified are in place. In the next stage, we happens;” and “before you make improvements bymust expand the improvement activities and the equipment, make improvements to thehuman development. Moreover, the shift toward operations.” If we remember these principles, theexpanding production line innovation from the introduction of TPS leads to good results, and weplant level to overall production activities will soon can therefore implement TPS activities withbe completed. conviction. In addition, in our plants, we will aim The principles we learned from the consult- at human development and the creation of aants provide a foundation for the introduction of suitable climate so that autonomous improvementTPS. Some examples of these principles are “grasp activities can be continued in the Fujitsu style.the problem at the actual location and materialsused there;” “the objective is not to push forward Referenceswith things that can be done, but to view those 1) Y. Wakamatsu and T. Kodo: TOYOTA Human Power. (in Japanese), Diamond Inc., 2001.that cannot be done as a challenge;” “use the Five 2) Y. Wakamatsu and T. Kodo: TOYOTA WAYWhy’s for root-cause analysis;” “when you do not People and Production. (in Japanese), Diamond Inc., 2001.know what should be done, take the immediate Yuichi Sakai, Fujitsu Ltd. Tomohiko Maeda, Fujitsu Ltd. Mr. Sakai received the B.E. degree in Mr. Maeda received the B.E. degree in Industrial & Management System Mechanical Engineering from the Engineering from Waseda University, University of Electro-Communications, Tokyo, Japan in 1973. He joined Tokyo, Japan in 1986. He joined Fujitsu Ltd., Kawasaki, Japan in 1973, Fujitsu Ltd., Kanagawa, Japan in 1986, where he has been engaged in where he has been engaged in development and promotion of supply development of production systems. He chain management. Recently, he has is a member of the Japan Society of also been promoting the innovation Mechanical Engineers. manufacturing activities and production technology development. E-mail: maeda.tomohiko@jp.fujitsu.com E-mail: sakai.yuichi@jp.fujitsu.com Toshihiko Sugano, Fujitsu Ltd. Mr. Sugano received the B.E. and M.E. degrees in Mechanical Engineering from Kobe University, Hyogo, Japan in 1978 and 1980, respectively. He joined Fujitsu Ltd., Kanagawa, Japan in 1980, where he has been engaged in development of production systems. E-mail: sugano.toshi@jp.fujitsu.com22 FUJITSU Sci. Tech. J., 43,1,(January 2007)

×