TOYOTA PRODUCTION

SYSTEM

Presented By: Love GuptaRoll No.:100805036

Why study Toyota?• In 2002, Lexus outsold BMW, Cadillac and Mercedes

Benz in the US for the third year in a row.

• In 2003, Toyota sold more vehicles than Ford and Chevrolet.

• The company has made profit every year over the last 25 years and has approximately $20-$30 billion in cash on a consistent basis.

Where they are today ?• Largest automaker and most profitable • Produce a vehicle every 6 seconds• Brands: Toyota, Lexus, Scion,Prius• Automotive business accounted for 90% of

revenues• Other 10%: housing, marine telecommunications,

ITS, Biotechnology and Afforestation• Success attributed to Toyota Production System

How did it happen?• Incredible consistency comes from operational

excellence.• The operational excellence is based on the

quality improvement tools and methods developed by Toyota (under the TPS): such as JIT, kaizen, one-piece-flow, jidoka, and heijunka!

• These technique triggered a “lean revolution” in the manufacturing sector.

INTRODUCTION• Toyota motor corporation’s vehicle production

system is a way of “making things” that is referred to as “lean manufacturing system”.

• Objective: “making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible”.

FEATURES OF TPS

TPS

TECHNICAL RELATED

JIT

KANBAN

PEOPLE RELATED

WORKERS

SUPPLIERS

• Toyota Production System

•Just-in-Time• Pull System• Continuous Flow Processing• Takt Time• Kanban• 3 M• 5 S

Heijunka Kaizen (Continuous Improvement)

•Jidoka (Automation)

• Andon- to indicate operation status• Genchi Genbutsu

ELEMENTS OF TPS

JUST IN TIMEOne of the two main pillars of TPS.

Just-in-Time means PRODUCING:a) Only what is needed

b) in necessary quantity

c) at necessary time

Pull System (Don’t Push) Produce only when your customer demands

the product in the required quantity. Run the production according to this demand.

Continuous Flow Production In TPS it means arranging work inside each

process to flow smoothly from one step to other.

Takt Time Takt is a German word meaning “meter”. It is the time to finish a given amount of work-

doing a single operation, making one component, or assembling an entire car.

Takt time =Total daily operating time

Total production requirement

JIDOKA• Jidoka (never letting a defect pass to the next station;

and freeing people from machines)• Jidoka is also referred to as autonomation .• Employee Empowerment - Jidoka.• Multi-tasking - Shojinka.• Andon Cord – to inform everyone about any

problem.

• Jidoka prevents the production of defective products, eliminates overproduction and focuses attention on understanding the problem and ensuring that it never recurs.

A Closer Look at Jidoka - Concept

KANBANKanban is a simple but effective control that helps JIT production work.The word KAN= card BAN=signalsIt is a Japanese word for card & the use of card is central to many Japanese control systems including one at Toyota whose kanban system has received.

KAIZEN• Countinual Improvement• Minute Observation – “Go to gemba.”• Eliminating excessive movement.• No spending on Kaizen activities.• Poka-yoke – Error proof• This is performed by all employees rather than

by specialists.

5S1. SEIRI = SIFTING

2. SEITON = SORTING

3. SEISO = SWEEPING

4. SEIKETSU = SPICK ‘N’ SPAN

5. SHITSUKE = SUSTAINANCE

SEIRI = SIFTING

Get rid off unwanted stuff from the workplace

TRASH

Unwanted

SIETON = SORTING Arranging wanted items in proper order, which

means place for every thing and every thing in its place.

SIESO = SWEEPING AND CLEANING Sweeping and cleaning means surface and other

areas free from oil and chemicals that may or may not cause slippage, fire or any other possible hazard.

SEIKETSU = SPICK ‘N’ SPAN• Spick ‘n’ span means visible neatness. A nice,

clean and tidy workplace• Affects directly to the performance and quality

of workforce.

SHITSUKE = SUSTAINANCE Instilling supreme attitude and constantly

reminding the workforce about 5 S philosophy through training, competition, encouragement by the top management.

ELIMINATION OF WASTE• The Toyota Production System teaches that

waste, “muda” is one of the evils that should be avoided.

• SEVEN ELEMENTS OF WASTE Overproduction Waiting Unnecessary transport Over-processing Defect Inventory Motion

REDUCTION OF WASTE• Reduce Setup Times • Small-Lot Production• Employee Involvement and Empowerment• Quality at the Source• Equipment Maintenance • Pull Production

14 Toyota-Way Principles• SECTION 1:LONG TERM PHILOSPHY• PRINCIPLE 1: BASE YOUR MANAGEMENT DECISION

ON A LONG TERM PHILOSPHY,EVEN AT THE EXPENSE OF SHORT TERM FINANCIAL GOALS.

• SECTION 2:RIGHT PROCESS RIGHT RESULTS• PRINCIPLE 2:CREATE CONTINOUS PROCESS FLOW

TO BRING PROBLEMS TO THE SURFACE.• PRINCIPLE 3:USE ‘PULL’SYSTEM TO AVOID OVER

PRODCTION

• PRINCIPLE 4:LEVEL OUT THE WORK LOAD.• PRINCIPLE 5:BUILD A CULTURE OF STOPPING TO FIX

PROBLEMS, TO GET QUALITY RIGHT THE FIRST TIME.• PRINCIPLE 6:STANDARDISE TASK ARE THE

FOUNDATION FOR CONTINUOUS IMPROVEMENT AND EMPLOYEES EMPOWERMENT.

• PRINCIPLE 7:USE VISUAL CONTROL SO NO PROBLEMS ARE HIDDEN.

• PRINCIPLE 8:USE ONLY RELIABLE, THOROUGHLY TESTED TECHNOLOGY THAT SERVES YOUR PEOPLE AND PROCESSES.

• SECTION 3:ADD VALUE TO THE ORGANISATION BY DEVLOPING YOUR PEOPLE AND PARTNERS.

• PRINCIPLE 9:GROW LEADERS WHO THOROUGHLY UNDERSTAND THE WORK,LIVE THE PHILOSPHY AND TEACH IT TO OTHERS.

• PRINCIPLE 10:DEVELOP EXCEPTIONAL PEOPLE AND TEAMS WHO FOLLOWS YOUR COMPANIES PHILOSPHY.

• PRINCIPLE 11:RESPECT YOUR EXTENDED NETWORK OF PARTNERS AND SUPPLIEDBY CHALLENGING THEM HELPING THEM TO IMPROVE.

• SECTION 4:CONTINOUSLY SOLVING ROOT PROBLEMS DRIVES ORGANISATIONAL LEARNING.

• PRINCIPLE 12: SEE FOR YOURSELF TO THOROUGHLY UNDERSTAND THE SITUATION.

• PRINCIPLE 13:MAKE DECISION SLOWLY BY CONSENSUS ,THOROGHLY CONSIDERING ALL OPTIONS, IMPLEMENT DECISION RAPIDLY.

• PRINCIPLE 14:BECOME A LEARNING ORGANISATION THROUGH RELENTLESS REFLECTION AND CONTINOUS IMPROVEMENT.

CONCLUSION Global adaptation• Since Toyota production system has been

created from actual practices in the factories of Toyota, it has a strong feature of emphasising practical effects, and actual practice and implication over theoretical analysis.

• This system can play a great role in the task of improving the constitutions of the companies world-wide.