toyota lean.ppt

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Operations Management Toyota Production System (TPS),

Just-in-Time (JIT),and Lean Manufacturing

Handout



APICS

www.apics.org• Od !ame" T#e $merican Production and In%entory &ontro Society

• !e' !ame" T#e $ssociation for Operations Management - $d%ancing

Producti%ity, Inno%ation, and &ompetiti%e Success.

• $PI&S offers four internationay recognied professiona certification

programs"* &PIM" &ertified in Production and In%entory Management

+* &PIM" &ertified eo' in Production and In%entory Management &PIM .

e/tensi%e 0no'edge s#aring 'it# ot#ers t#roug# presenting, teac#ing,

pu1is#ing, and ot#er $PI&S educationa acti%ities*

2* &I3M" &ertified in Integrated 3esource Management

4* 5eginning +667" &ertified Suppy &#ain Professiona (&S&P) designation is

designed for professionas interested in increasing t#eir 0no'edge of suppy

c#ain management, t#ose currenty 'or0ing in t#e fied of suppy c#ain

management (S&M), and for t#ose indi%iduas 'or0ing 'it# enterprise

resources panning (83P) systems*

http://www.apics.org/

http://www.apics.org/



9#y Toyota:



Toyota is now the world's largest

carmaker• Toyota sod +*24; miion %e#ices in t#e

first t#ree mont#s of +66<*

• =enera Motors (=M) is estimated to #a%e

sod +*+7 miion cars and sma truc0s

during t#e same period*



9#y Toyota:



9#y not Toyota:• =M ost >6*7 1iion in +66?*• =M@s pension o1igations under funded 1y a1out >2 1iion• =M 'i eiminate 26,666 Ao1s and cose + !ort# $merican

factories 1y +66;• ord earned >+ 1iion 'ord'ide, 1ut ost >*7 1iion in its

!ort# $merican operations*• ord is s#utting 6 pants and aying off +?,666 #oury 'or0ers*• Baimer paid >27 1iion for &#ryser in CC;*• &#ryser reported a >*? 1iion oss for t#e t#ird Duarter of

+667 and a >+ 1iion oss for t#e first Duarter of +66<*• Baimer&#yser finay sod ;6*E of &#ryser to &er1erus

&apita for ><*4 1iion in May of +66<*



9#y Toyota:



History of Manufacturing Management



History• Sakichi Toyoda, the founder of the Toyota group of

companies, started Toyota as a textile machine company.

• Kiichiro Toyoda, son of Sakichi and founder of the Toyotaautomobile business, developed the concept of Just-in-Timein the !"#s. $e decreed that Toyota operations %ouldcontain no excess inventory and that Toyota %ould strive to%ork in partnership %ith suppliers to level production.

• Taiichi &hno, Toyota's chief of production in the post-(())period. $e %as T$* main developer of Toyota +roductionSystem T+S.

• r. Shigeo Shingo/ 0 consultant to Toyota.

+S/ Shingo +ri1e is the highest manufacturing excellence a%ardin the 2.S. The pri1e is given both to companies andindividuals %ho contribute to the development ofmanufacturing excellence.



History (cont*)• Toyota +roduction System T+S dre% %ide attention from the industrial

community because Toyota %as a profitable car company in Japan during

and after the oil embargo in !3#s.

• &utside Japan, dissemination began in earnest %ith the creation of theToyota-4eneral 5otors 6oint venture-7255) 7e% 2nited 5otor5anufacturing )nc. in 8alifornia in !9:.

• (idespread recognition of T+S as the model production system gre% rapidly

%ith the publication in !!# of The Machine That Changed the World: TheStory of Lean Production, the result of five years of research led by the5assachusetts )nstitute of Technology.

• The 5)T researchers found that T+S %as so much more effective andefficient than traditional, mass production that it represented a completelyne% paradigm and coined the term lean production to indicate this radically

different approach to production.

• The term %as coined by John Krafcik, a research assistant at 5)T %ith the)nternational 5otor ;ehicle +rogram in the late !9#s. $e then %orked for4eneral 5otors and no% is a ;ice +resident of $yundai, 2.S.



Toyota Production System (TPS)

• Befinition" T#e production system de%eoped 1y ToyotaMotor &orporation to pro%ide 1est Duaity, o'est cost, ands#ortest ead time t#roug# t#e eimination of 'aste*

• TPS is comprised of t'o piars, Just-in-Time and Jido0a(autonomation) , and is often iustrated 'it# t#e F#ouseFs#o'n on t#e ne/t side*

• TPS is maintained and impro%ed t#roug# iterations of

standardied 'or0 and 0aien (continuous impro%ement),foo'ing PanGBo-&#ec0-$ct (PB&$ &yce from Br*Beming), or t#e scientific met#od*



House of Toyota



Toyota Production System (TPS)"

3eated Terms• O#no System

• M$! (Materia as !eeded) - Harey Ba%idson

• MIPS (Minimum In%entory Production

Systems) - 9esting#ouse

• Stoc0ess production - He'ett Pac0ard

• ero in%entory production system

• Lean ManufacturingProduction - MIT



Ho' to ma0e money:

Profit eDuation" Saes G &ost Profit

Traditiona pricing strategy" &ost . Profit Seing price

8/ampe"

9#en t#e cost goes up, t#e product seing price is raised to refect t#e#ig#er costs and maintain t#e desired e%e of profit*

Some e%en argues t#at t#e profit added s#oud 1e arge enoug# to co%er potentia osses if t#e product does not se 'e*

Toyota accepts neit#er t#is formua nor t#ese arguments



ToyotaKs p#iosop#y

• Seing price G &ost Profit

• &ustomers decide t#e seing price*

• Profit is '#at remains after su1tracting t#e cost from it*

• T#e main 'ay to increase profit is to reduce cost*

• &onseDuenty, cost reduction t#roug# 'aste eiminations#oud #a%e t#e #ig#est priority*

• ToyotaKs parado/" 3educing cost ('aste), 'i reduce ead

time '#ie increasing Duaity and customer satisfaction*• Ho': 9e 'i discuss it soon*



House of Toyota



• $ttac0s 'aste G $nyt#ing not adding %aue to t#e product

• rom t#e customerKs perspecti%e

• 8/poses pro1ems and 1ottenec0s caused 1y

%aria1iity G Be%iation from optimum

• $c#ie%es streamined production

G 5y reducing in%entory

9#at Boes Just-in-Time Bo:



Waste (muda in Japanese) is

Nanyt#ing ot#er t#an t#e minimum

amount of eDuipment, materias,

parts, space, and 'or0erKs time,'#ic# are a1soutey essentia to add

value to t#e product*K

S#oic#iro Toyoda

ounder, Toyota

< !!= 8orel 8orp.

Introductory uotation



Qaria1iity Occurs 5ecause

• 8mpoyees, mac#ines, and suppiers produceunits t#at do not conform to standards, areate, or are not t#e proper Duantity

• 8ngineering dra'ings or specifications areinaccurate

• Production personne try to produce 1efore

dra'ings or specifications are compete• &ustomer demands are un0no'n



Continuous Flow

• Producing and mo%ing one item at a time (or a

sma and consistent 1atc# of items) t#roug# a

series of processing steps as continuousy as possi1e, 'it# eac# step ma0ing Aust '#at is

reDuested 1y t#e ne/t step*

It is aso caed t#e one-piece flow, single-piece flow, and make one, move one.



&ontinuous o' Production

o' 'it# JIT

Traditiona o'

&ustomersSuppiers

&ustomers

Suppiers

Production Process(stream of 'ater)

In%entory (stagnant ponds) Materia

('ater instream)



Pus# %ersus Pu

• Pus# system" materia is pus#ed into

do'nstream 'or0stations regardess of

'#et#er resources are a%aia1e

• Pu system" materia is pued to a

'or0station Aust as it is needed



Traditiona R*S* Manufacturing irm"

Pus# (od stye M3P Materia

3eDuirements Panning System)• T#e production of items at times reDuired

1y a gi%en sc#edue panned in ad%ance

Materia

Information (Production Sc#edue)

9or0Station

9S + 9S 2



Pu (JIT) System

T#e production of items ony as demanded for

use or to repace t#ose ta0en for use*

Materia

Information (%ia an1an&ard)

9or0Station

9S + 9S 2



• Japanese 'ord for card G Pronounced N0a#n-1a#nK (not Ncan-1anK)

• $ut#ories production from do'nstream

operations G NPusK materia t#roug# pant

• May 1e a card, fag, %er1a signa etc*

• Rsed often 'it# fi/ed-sie containers G $dd or remo%e containers to c#ange production rate

an1an



Trianguar an1an

+art >

Trigger ?eorder +oint

+art escription @ocation

ate Triggered @ot Si1e

Tool >

5achine >



an1an



igure S+*?



Basic Fixed!rder "uantity #odel and

$eorder Point Beha%ior

? A ?eorder point

B A *conomic order Cuantity

@ A @ead time

& &

" ""

$

Time

Number

of unitson hand

* ou recei%e an order Duantity *

+* our start usingt#em up o%er time* 2* 9#en you reac# do'n to

a e%e of in%entory of 3,

you pace your ne/t

sied order*

4* T#e cyce t#en repeats*



an1an

T#e function of an1an U

T#e function of In%entory 3eorder Point

(3OP)



an1an System• Singe card

G Mo%e ony containers

'it# & (&on%eyance)-

0an1an)

G e*g*" a'asa0i

• Bua card

G Mo%e ony container

'it# &- 0an1an

G Produce ony '#en

aut#oried 1y P

(Production)- 0an1an

G e*g*" Toyota

Transparency <*?



• Traditiona" in%entory e/ists in case pro1ems

arise

• JIT o1Aecti%e" 8iminate in%entory

• JIT reDuires G Sma ot sies

G Lo' setup time

G &ontainers for fi/ed num1er of parts

• JIT in%entory" Minimum in%entory to 0eep

system running

In%entory



• 3educe rippe effect of sma %ariations in sc#edues(e*g*, fina assem1y)

• Production Duantities e%eny distri1uted o%er time (e*g*,

<day)

• 5uid same mi/ of products every day

G 3esuts in many sma ots

G mont# +6 'or0ing days

G Item Mont#y uantity Baiy uantity$ 46 +

5 76 2

HeiAun0a Le%eing (Smoot#ing) Production

Sc#edue using Mi/ed Mode SeDuencing



A

A A B B B C

IT Small &ots

&arge&ot Approach

Time

Time

A A B B B C

A A A B B B B B B C C

IT produces same amount

in same time i( setup timesare lowered

Sma %ersus Large Lots

Small lots also increase (lexi)ility to meet

customer demands



P#oto S+*4



*+ ,+ *

*+ ,+ *

,+ ,+ ,

HeiAun0a Le%eing (Smoot#ing) Production Sc#edue using

Mi/ed Mode SeDuencing Rniform Pant Loading

+roduct emand ?eCuirements5onthly aily

-++ .+ *+

-++ .+ *+

.++ .+ ,+

0

D

8

@argest integer that divides into all daily reCuirements evenly is #

+roduct aily ?eCuirements ivided by #

0

D

8

5ixed-model seCuence

0-D-0-D-0-D-0-D-8 ?epeat # times per day

Transparency <*<

Betermining Production SeDuence



&yce Times(orking time per day A :9# minutes

aily reCuirements/ 0 A :# unitsE D A :# unitsE 8 A # units

The system cycle time A :9#F:#G:#G# A =."" minFunit

+roduct ?eCuirements 8ycle Time

*-+ *+ ,.

*-+ *+ ,.

*-+ ,+ *-

0 :#

D :#

8 #

Transparency <*;



Scrap

/ork in process in%entory le%el

0hides pro)lems1

2nrelia)le 3endors Capacity Im)alances

Lo'ering In%entory

3educes 9aste



Scrap

$educing in%entory re%eals

pro)lems so they can )e sol%ed.

2nrelia)le 3endors Capacity Im)alances/IP

Lo'ering In%entory

3educes 9aste



Customer

orders ,+

&ot si4e 5 6

&ot , &ot

&ot si4e 5

&ot , &ot &ot 7 &ot * &ot 6

3educing Lot Sies Increases t#e

!um1er of Lots



V9#ic# Increases

In%entory &osts

Lot Sie

&ost

H o d i n g

& o s t

T o t a & o

s t

Setup &ost

Optima

Lot Sie

Smaller

&ot Si4e



Rness Setup &osts are 3educed

Lot Sie

&ost

H o d i n g & o s t T o

t a & o s t

Setup &ost

!riginal optimal

lot si4e8ew optimal lot si4e



uic0 setup uic0 c#angeo%er

• $educing setup cost 9 reducing setup time

• Setup reduction time is a prere:uisite to lot si4ereduction

• S#;< 0Single #inute ;xchange o( <ies1 method

• The method has )een de%eloped )y Toyota andthen expanded )y <r. Shigeo Shingo 0aconsultant to Toyota1= and has pro%en its

e((ecti%eness in many companies )y reducingchangeo%er times 0non%alue added times1 (romhours to a less than ,+ minutes



Setup &omponents

• Internal Setup" consists of setup acti%ities t#at must

1e performed '#ie t#e mac#ine is stopped*

• External Setup" consists of setup acti%ities t#at can 1e carried out '#ie t#e mac#ine is sti

operating*

It is desira1e to"

* &on%ert as muc# internal setup to external setup

+* Impro%e t#e setup procedure



Systematic Setup 3eduction



Setup 3eduction



Setup 3eduction"Standardiing die #oder #eig#ts reduces t#e need to

e/c#ange fastening 1ots



uaity $t T#e Source

• Boing it rig#t at t#e first time*

• Jido0a ao's 'or0ers to stop production ine

• $ndon ig#ts signa Duaity pro1ems

• Rnder capacity sc#eduing ao's for

panning, pro1em so%ing W maintenance

• Qisua contro ma0es pro1ems %isi1e

• Po0a-yo0e pre%ents defects



House of Toyota



Jido0a

• Toyota Production System (TPS) is supported 1y t'o piars" Just-in-Time and Jido0a

• Jido0a $utonomation $utomation 'it# #uman inteigence*

• Sa0ic#i Toyoda, founder of t#e Toyota group of companies, in%ented t#e concept ofJido0a in t#e eary +6t# &entury 1y incorporating a de%ice on #is automatic ooms t#at'oud stop t#e oom from operating '#ene%er a t#read 1ro0e* Br* S#igeo S#ingo t#ende%eoped #is idea furt#er*

• T#is ena1ed great impro%ements in Duaity and freed peope up to do more %auecreating 'or0 t#an simpy monitoring mac#ines for Duaity (separating peopeKs 'or0and mac#ineKs 'or0)*

• 8%entuay, t#is simpe concept found its 'ay into e%ery mac#ine, e%ery productionine, and e%ery Toyota operation*



Jido0a Tec#niDues• +oka-yoke mistake or error proofing

H 0 form of device for building-in Cuality at each production process.

H This device may take many shapes and designs.

H Typical types of +okayoke are sensors, proximity s%itches, stencils, light

guards and alignment pins. Simple circuitry is usually used to operate theseelectrical error proof devices as they should be of lo% cost and simpledesign.

H 4oal/ Iinding defects before they occur A ero efects

H Statistical Buality 8ontrol SB8/ Iinding defects after they occur

• ;isual management including using 0ndon @amp

Exhibit 7.10



Po0a-o0e 8/ampe



Qisua Management

$ndon Lamp• 3ed - ine stoppage

• eo' - ca for #ep

• =reen - normaoperation



aien

• &#ange for 1etter continuous

impro%ement

• aien 'or0s#op or aien e%ent"

$ group of aien acti%ity, commony asting

fi%e days, in '#ic# a team identifies and

impements a significant impro%ement in a process, e*g*, creating a manufacturing ce*



=8M5$• GEM!" is a #apanese word meaning "real place", w$ere

t$e real action takes place. In %usiness, GEM! is w$eret$e value-adding activities to satisfy t$e client are carriedout.

• Manufacturing companies #a%e t#ree main acti%ities in

reation to creating money" de%eoping (designing), producing and seing products* In a 1road sense, =8M5$means t#e sites of t#ese t#ree maAor acti%ities*

• In a narro'er conte/t, #o'e%er, =8M5$ means t#e pace'#ere t#e products are made*

• T#e term is often used to stress t#e t#at rea impro%ementcan ony ta0e pace '#en t#ere is a s#op-foor focus ondirect o1ser%ation of current conditions '#ere 'or0 isdone, e*g*, not ony in t#e engineering office*



Fi%e >olden $ules o( >em)a• Masaa0i Imai promoted aien to peope outside Japan t#roug# #is t'o #ig#y accaimed 1oo0s"

* aien" T#e ey To Japan@s &ompetiti%e Success* +* =em1a aien" $ &ommonsense, Lo'-&ost $pproac# to Management

• He preac#es t#e Fi%e >olden $ules o( >em)a, t#e first of '#ic# is @9#en a pro1em(a1normaity) arises, go to gem1a first@* So '#at@s gem1a: It@s t#e s#op foor, or eDui%aent* Oncet#ere, you appy

=oden 3ue T'o" c#ec0 'it# gem)utsu (ree%ant o1Aects)*

T#ree" ta0e temporary counter-measures on t#e spot*

our" find t#e root cause*

i%e" standardie to pre%ent recurrence*

Standardiation is t#e managing part of getting good gem1a* ou aso need good #ouse0eeping(Imai is %ery 0een on ceaning mac#ines) and muda, t#e eimination of 'aste* 5ut a #inges on

getting a'ay from your des0* O1ey t#e master Imai* =O TO =8M5$



?9#ys" inding t#e root cause of a

pro1em*• ? 9#ys anaysis as an effecti%e pro1em-so%ing tec#niDue* It is aso used in Si/ Sigma*

8/ampe"

• 9#y is our cient, Hinson &orp*, un#appy: 5ecause 'e did not dei%er our ser%ices '#en'e said 'e 'oud*

• 9#y 'ere 'e una1e to meet t#e agreed-upon timeine or sc#edue for dei%ery: T#e Ao1too0 muc# onger t#an 'e t#oug#t it 'oud*

• 9#y did it ta0e so muc# onger: 5ecause 'e underestimated t#e compe/ity of t#e Ao1*

• 9#y did 'e underestimate t#e compe/ity of t#e Ao1: 5ecause 'e made a Duic0 estimateof t#e time needed to compete it, and did not ist t#e indi%idua stages needed to competet#e proAect*

• 9#y didn@t 'e do t#is: 5ecause 'e 'ere running 1e#ind on ot#er proAects* 9e cearyneed to re%ie' our time estimation and specification procedures*



Pan-Bo-&#ec0-$ct

(PB&$S#e'art Beming &yce)• Pan" =o to t#e rea pacefactory fo' (gem1a), o1%erse t#e

rea t#ingproduct (gem1utsu), get t#e rea fact (genAitsu)*ocus on reducing response time, ead times, e/posing'astes in your process

• Bo" &onduct aien* &reate modes of e/ceence so ot#erscan aspire to* o' e%eryt#ing" product, information materiarepenis#ment, ser%ices*

• &#ec0 for direction 1y aigning acti%ities 'it# ong-term 1usiness direction

• $ct" Ta0e actions to sustain and acceerate impro%ementacti%ities

Source" '''*ean1rea0t#ru*com



Simiarity 1et'een 2 =s and M59$

• T#e 2 =@s (=em1a, =em1utsu, and =enAitsu, '#ic#transate into actua pace, actua t#ing, and actuasituation)*

• In t#e eary days of He'ett-Pac0ard (H-P), Ba%e Pac0ardand 5i He'ett de%ised an acti%e management stye t#att#ey caed Management 5y 9a0ing $round (M59$)*Senior H-P managers 'ere sedom at t#eir des0s* T#eyspent most of t#eir days %isiting empoyees, customers,

and suppiers* T#is direct contact 'it# 0ey peope pro%idedt#em 'it# a soid grounding from '#ic# %ia1e strategiescoud 1e crafted*

?S" 9or0pace organiationHouse0eeping



?S" 9or0pace organiationHouse0eeping• =s/ )mportant part of Kai1enF@ean 5anufacturing• The S's stand for/

H Seiri - keep only %hat is absolutely necessary, get rid of things thatyou don't need, i.e. simplify or sort. H Seiton - create a location for everything, i.e. organi1e

or straighten. H Seiso - clean everything and keep it clean, i.e. cleanliness or

s%eep. H Seiketsu - implement Seiri, Seiton and Seiso plant %ide, i.e.

standardi1e. H Shitsuke - assure that everyone continues to follo% the rules of =S,

i.e. stick to it or self discipline.

• =S in the 2S/ Sort, Straighten, S%eep, Standardi1e, Self isciple

• =S G S Safety A S $ytrol, etc• =S G LS Safety and Security A 3 S 0gilent Technology that %as part

of $e%lett +ackard



?S

• 5S is simple to begin and gives good benefits.

• Each individual in an organization is ased to getrid of overburdening items.

• !ed tag attac" # red tag attac is the strateg$ ofa group of people going through the plant andputting red tags on ever$thing that has not beenused %ithin the last &0 da$s. The items that

people feel are necessar$ to 'hold on to' must be (ustified to their superior) or the item is taen outof the plant*



?S in a actory

actory tour" Toyota %s*ot#ers*

?S i Offi



?S in Office

• 5efore ? S

• $fter ? S

Standard 9or0



(hen manpo%er, eCuipment, and materials are used in the most efficient

combination, this is called Standard (ork.

There are three elements to Standard (ork/

Takt Time

L (ork SeCuence

" Standard (ork-in-+rocess

&nce a Standard (ork is set, performance is measured and continuously

improved.



Standard /ork Sheet



Scope of rom Raw materi al Bate 3e%ie'ed"

Operations To Heat Treatment Janary <, +666

uaity Safety Standard 9or0 Standard 9IP T$T &yce &re'

&#ec0 Precaution in Process uantity Time Time Si(e

F>

++2*4 min+* min6

$#

T#e Importance of Standardied 9or0"



T#e Importance of Standardied 9or0"

9it#out it, a impro%ement efforts using aien to eiminate'aste (muda) are not sustaina1e* ou 'i go 1ac0 to t#e

origina position 1efore aien*



Manufacturing &e

0 # d



9or0er 3outes Lengt#ened as QoumeBecreases

+ell 5+ell 5

,orer,orer--

+ell -+ell -

,orer,orer11

+ell 1+ell 1

,orer,orer&&

+ell &+ell & +ell +ell

/igure 11./igure 11.



Production Line 5aancing

Impro%ing Lead Time"



Impro%ing Lead Time"



3alue Stream #appingS#

/hat?

/hy?

/ho?

/hen?

/here?

@ow?

• $ %isua too for identifying a acti%ities of t#e panning,and manufacturing process to identify 'aste*

• Pro%ides a too to %isuaie '#at is ot#er'ise usuay

in%isi1e*

• T#e eaders of eac# product famiy need to #a%e a primaryroe in de%eoping t#e maps for t#eir o'n area*

• Be%eop a current-state map 1efore impro%ements are

made so t#at t#e efforts and 1enefits can 1e Duantified*

• On t#e s#op foor, not from your office* ou need t#e rea

information, not opinion or od data*

• !e/t page



Qaue Stream Map Sym1os

Spot %eld

0D8plating

8FT A "# sec

8F& A # min

" shifts

LM scrap rate

+rocess

Iinishedgoods

;endor ata box

",### units

A day

)nventory

+ush Supermarket/

the location of a

predetermined

standard inventory

+hysical pull

onand

,ed

Shipment

&T &yce Time

&O &#ange o%er or setup time

& Q S M



&urrent Qaue Stream Map

uture Qaue Stream Map



uture Qaue Stream Map

$ttri1utes of Lean Producers - t#ey



$ttri1utes of Lean Producers t#ey• use JIT to eiminate in%entory

• 1uid systems to #ep empoyees product a perfect part e%erytime

• reduce space reDuirements

• de%eop cose reations#ips 'it# suppiers

• educate suppiers

• eiminate a 1ut %aue-added acti%ities

• de%eop t#e 'or0force

• ma0e Ao1s more c#aenging

• reduce t#e num1er of Ao1 casses and 1uid 'or0er fe/i1iity

• appy Tota Producti%e Maintenance (TPM)

T#e i%e Steps of LeanP d i T P d i



ProductionToyota Production

System Impementation• Step " Speci(y 3alueBefine %aue from t#e perspecti%e of t#e fina customer* 8/press %aue in terms of aspecific product, '#ic# meets t#e customer@s needs at a specific price and at a specifictime*

• Step +" 3alue Stream #apping.

Identify t#e %aue stream, t#e set of a specific actions reDuired to 1ring a specific product t#roug# t#e t#ree critica management tas0s of any 1usiness" t#e pro1em-so%ing tas0, t#e information management tas0, and t#e p#ysica transformation tas0*&reate a map of t#e &urrent State and t#e uture State of t#e %aue stream* Identify andcategorie 'aste in t#e &urrent State, and eiminate it

• Step 2" Create Continuous FlowMa0e t#e remaining steps in t#e %aue stream fo'* 8iminate functiona 1arriers andde%eop a product-focused organiation t#at dramaticay impro%es ead-time*

• Step 4" Create Pull ProductionLet t#e customer pu products as needed*• Step ?" Per(ection

T#ere is no end to t#e process of reducing effort, time, space, cost, and mista0es* 3eturnto t#e first step and 1egin t#e ne/t ean transformation, offering a product '#ic# is e%ermore neary '#at t#e customer 'ants*

&omparison of



&omparison of

M3P (Materia 3eDuirements Panning),

JIT, and TO& (T#eory of &onstraints)

&oading o( operations

Batch si4es

Importance o( data

accuracy

Speed o( scheduled

de%elopment

Flexi)ility

Cost>oals

Planning (ocus

Production )asis

Checked )y capacity

re:uirements

Planning a(terward

!ne week or more

Critical

Slow

&owest

@ighest#eet demand

@a%e doa)le plan

#aster schedule

Plan

Controlled )y kan)an

system

Small as possi)le

2nnecessary

3ery (ast

@ighest

&owest#eet demand

;liminate waste

Final assem)ly schedule

8eed

Controlled )y

)ottleneck operation

3aria)le to exploit

constraintCritical (or )ottleneck

and (eeder operations

Fast

#oderate

#oderate#eet demand

#aximi4e pro(its

Bottleneck

8eed and plan

#$P IT T!C

toyota lean.ppt

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