1

TPS Basics

Value: The key focus.

Incurred duringproduction

Eyes of customer

Cost

WorthValue=

Toyota’s strategy is achieve total quality and maximum cost reduction through variation and waste elimination

Maximizing Value-Added Activities

2

What defines worth?

• Functionality: what the product will do• Performance• Features

• Quality: how well the product meets intended functionality targets over its lifecycle• Manufacturing conformance, durability,

reliability, maintainability

• Aesthetics: how the product is perceived • Includes perceived quality

• Delivery

3

2

The Importance of Cost Reduction

Price Cost Profit

Price = Cost + Profit

Price - Cost = Profit

4

5S and Visual Management

5

The 5 S’s

• Sort

• Straighten

• Shine

• Standardize

• Sustain

6

3

The Primary Objective of 5S

• Establish Order:

• the first precondition for effective learning

• Make System visible!

7

Goal: Reduce TM Burden & Recognize Normal vs Abnormal

• Enhances TM’s ability to

• See the current situation clearly• Become aware of abnormal occurrences• Identify kaizen opportunities• Awareness of ‘rules’• Improved communication skills• Sense of pride and accomplishment-----

morale• Sets example for appropriate work style

8

Before 5S: Examples9

4

After 5S: Examples10

Enables More Effective Management of Activities

• Safety• Quality• Cost • Productivity• Human Resource Management

Common Example: The Red Tag EventMisuse: Making 5S an end in itself

11

Visual Management

Definition: The placement in plain view of all tools, parts, production

activities, and indicators of production system performance,

so the status of the system can be understood at a glance

by everyone involved

12

5

Communication through Visual Management

• Make Information EXPLICIT• Eliminate Surprises

• Visual Control Boards, Company/Performance metrics, overtime requirements

• Be Clear, Precise and Accurate• Visually Convey status and structure

clearly• “A picture is worth a thousand words”• Use color and shape to convey meaning

13

Elements of Visual Control Systems

• Production system is designed and operated so that its structure and status are readily and consistently apparent

• A system exists for immediate response to abnormalities

• A system exists for root cause assessmentand permanent countermeasures---- P/S• Never hide waste… make it visible

14

Two Levels of Visual Controls

Shop Floor Controls

1. Layout2. Work and

ProductionControl

3. Quality4. Inventory5. Equipment

ImprovementTarget

Controls

Structure and statuscommunication.Real time focus.

Long term focus.Make objectives, trends,

and progress visible

15

6

The Power of Color

Green Red BlueYellow Blue Orange

Red Orange GreenBlue Red Yellow

the Stroop effect is a demonstration of interference in the reaction time of a task. When the name of a color (e.g., "blue," "green," or "red") is printed in a color not denoted by the name (e.g., the word "red" printed in blue ink instead of red ink), naming the color of the word takes longer and is more prone to errors than when the color of the ink matches the name of the color.

16

17

18

7

The Four Major Production Activities

• Processing (operations): The steps occurring within the manufacturing process to change the form or shape of the product. • Station or cell level

• Inspection: The detection elements within the process or operation.

19

The Four Major Production Activities

• Transportation: The movements of material.

• Inventory: Storage and Delay (two types): Starving and blocking time elements.• Finished goods and in process

inventory • Process delay: Entire lot waits before

processing• Lot delay: While one is processed the

others wait

20

The Four Major Production Activities

• Processing

• Inspection

• Transportation

• Inventory

Which of these is value added?

21

8

At Toyota we search for the waste that usually escapes notice because it has become accepted as a natural part of everyday work…

Shingo, 1981

Do you work in a production system?

Waste in Production22

The Three M’s - Mura, Muri, Muda

• Toyota’s Philosophy of the proper nature of work:• Work should be consistent and even

without waste and burden

• Mura – Unevenness

• Muri – Burden

• Muda – Seven Wastes

23

Mura – unevenness

• Fluctuation in cycle times: to complete a task (variability, intermittent elements)• Cycle time of a curing process requires 2-shift operation while rest of line operates only 1 shift

• Work content variesby model in mixed model assembly

24

9

Mura – unevenness25

• Work is released to the floor randomly: without smoothing and leveling

• Disruptions of operations: setups and breakdowns

• Fan structures in product flow• Parts transfers: performed on an irregular cycle

Consequences of Mura

• WIP necessary to buffer out variability

• Excess capacity necessary to buffer out variability• More Machines

• Increased Labor (e.g., work content variation forces work design for highest-work-content model)

26

Consequences of Mura

• Loss of Control• Fluctuation is a symptom of lack of

control

• Conformance to pace monitoring not possible

• WIP / decoupling obscures problem

27

10

Muri – Burden

• Physical

• Fatigue issues, e.g., excessive lifting• Ergonomic issues

•Excessive overtime

28

Muri – Burden

• Mental• “Unnatural” work sequences

• Must “think” to do it right. Delays and lapses common

• Uncertainty regarding correct procedures to apply

• Reliance on human diligence to attain quality results

• Stress on performance exceeds healthy levels

• Lack of mental engagement in work• Utility of job rotation

29

MUDA: Taiichi Ohno’s Seven Wastes

• Waiting• Overproduction* • Rework• Motion• Processing too much• Inventory • Transportation• Intellect

* Leads to all the rest AND it looks like productivity!

30

11

Value added vs non-Value added Work

31

WorkerMovements

WorkWaste

Non-value Added Work

Value-added Work

What The Customer Is Willing To Pay For

Not Needed At All To Do The Work

No Added Value But Must Be Done Under Current Conditions

Stability Cycle: Check-Act

Check CurrentConditions

*Muda orValue-add?

Muda

DevelopAlternatives

Work onlater

Eliminatenow?

Yes

No

VA

Act (Standardize)

32

Check – Act is the first step towards achieving a stable / standard condition. ID and eliminate special causes of variation and wastes using concepts of 5S, VM , STW and P/S to reduce variability and uncertainty

33

12

Limiting Overproduction: Takt Time vs. Cycle Time

• Cycle Time = average interval between work exiting a process• the actual work time required to do a task or a

series of tasks

• Takt Time = the amount of time the customer allows you to do a task or series of tasks

• scheduled work time divided by customer demand

34

TPS = ‘Abnormality Management’

• Waste elimination, 5S and Visual Controls created as part of stabilization /standardization activities to enable TMs to immediately recognize abnormal conditions

• ----- leads to effective problem solving

35

36