Toyota Production System and Lean Manufacturing
TOYOTA PRODUCTION SYSTEM
The Toyota Production System was adopted by many Japanese companies in the aftermath of the 1973 oil shock
“Waste” Elimination Philosophy:
“.. Above all, one of our most important purposes was increased productivity and reduced cost. To achieve this purpose, we put our
emphasis on the notion of eliminating all kinds of unnecessary functions in the factories. Our approach has been to investigate one by one the causes of various "unnecessaries" in manufacturing operations
and to devise methods for their solution, often by trial and error ...”
Taiicho Ohno, Former Vice President, Toyota Motor Corp., Former President, Japan Industrial Management Association; Former Chairman, Toyoda Spinning and Weaving Co., Ltd.
PURPOSES OF JIT
Primary Purpose: Profit through cost reduction (or improvement of
Productivity) This is attained through WASTE elimination.
Other important purposes: Quantity control:
JIT, Kanban & Autonomation (visual control system) Quality control:
Autonomation, improvement by small groups, functional management
Respect for humanity:
Flexible work force (adapt to demand changes), capitalize workers ideas.
TYPES OF WASTE
Excessive production resources (primary waste): excessive workforce excessive facilities
excessive inventories unnecessary capital investment
Overproduction (secondary waste - the WORST waste):
leads to
Excessive inventories (tertiary waste): extra jobs make overproduction invisible.
adds losses in opportunity cost
lead to
Unnecessary capital investment (fourth waste): adds facility depreciations and overhead cost
TO ACHIEVE THESE PUPOSES
7 Wastes Elimination Just-In-Time (JIT) Production Kanban System Production Smoothing 5S Setup Time Reduction Machine Layout & Multi-function Worker Autonomation (Visual Management)
Identification and Elimination of Waste
Philosophy
Identification and elimination of waste is the central theme of a lean manufacturing production system Lean manufacturing is a dynamic and constantly improving process dependent upon understanding and involvement by all employees Successful implementation requires that all employees must be trained to identify and eliminate waste from their work Waste exists in all work and at all levels in the organization
t,
Wastes, liApplied
tril’, Material’s, Lean
fti,
Ma
Identification and Elimination of Waste
Philosophy
Effectiveness is the result of the integration of:- Man
- Method
- Material
- Machine
At the worksite
• Waste exists in all work and at all levels in the organization
Seven Types of Waste
Over-production
Wait time
Transportation
Processing
Inventory
Motion
Defects
Over-production Waste
Definition
Producing more than needed Producing faster than needed
Over-production Waste
Characteristics:
Inventory StockpilesExtra equipment/oversized equipmentUnbalanced Material FlowExtra Part Storage racksExtra Manpower
Batch ProcessingComplex Inventory ManagementExcessive Capacity/InvestmentAdditional Floor Space/Outside StorageHidden ProblemsExcessive ObsolescenceLarge Lot Sizes
Building Ahead
Over-production Waste
Causes:
Incapable ProcessesJust in Case Reward SystemLack of Communication
Local OptimizationAutomation in the Wrong PlacesCost Accounting PracticesLow UptimesLack of Stable/Consitent Schedules
Waiting Time Waste
Definition
Idle Time That is Produced When Two Dependant Variables are not Fully Synchronized.
Man Wait TimeMachine Wait Time
Waiting Time Waste
Characteristics:
Man Waiting for MachineMachine/Materials Waiting for ManUnbalanced Operations (Work)Lack of Operator Concern for Equipment BreakdownsUnplanned Equipment Downtime
Waiting Time Waste
Causes:
Inconsistent Work MethodsLong Machine Change Over TimeLow Man/Machine EffectivenessLack of Proper Equipment/Materials
Transportation Waste
Definition
Any Material Movement That Does Not Directly Support a Lean Manufacturing System
Transportation Waste
Characteristics:
Extra carts, fork lifts, dolliesMultiple Storage LocationsExtra Material Racks
Complex Inventory ManagementExtra Facility SpaceIncorrect Inventory Counts
Damaged Material
Transportation Waste
Causes:
Large Lot ProcessingUnleveled SchedulesLack of 5 S’sLack of Visual Controls
Improper Facility LayoutLarge Buffers and In Process Kanbans
Processing Waste
Definition
Effort Which Adds No Value To a Product or Service. Enhancements which are Transparent to The Customers or Work Which Could Be Combined with Another Process.
Processing Waste
Characteristics:
Process Bottlenecks
Lack of Clear Customer SpecificationsEndless Refinement
Redundant ApprovalsExtra Copies/Excessive Information
Processing Waste
Causes:
Engineering Changes Without Processing ChangesDecision Making at Inappropriate LevelsInefficient Policies and Procedures
Lack of Customer Input Concerning Requirements
Inventory Waste
Definition
Any Supply in Excess of Process Requirements Necessary to Produce Goods or Services Just in Time.
Inventory Waste
Characteristics:
Extra Space on Receiving DocksMaterial Between Processes
Stagnated Material FlowLIFO instead of FIFOExtensive Rework When Problems Surface
Long Lead Time for Engineering ChangesAdditional Material Handling Resources (Men, Equipment, Racks, Storage Space)
Inventory Level
Over
Production
Wait Time
Inventory Waste
Causes:
Incapable ProcessesUncontrolled Bottleneck Processes
Incapable SuppliersLong Change Over TimesManagement DecisionsLocal Optimization
In times
Process Defects
Motion Waste
Definition
Any Movement of People Which Does Not Contribute Added Value To The Product or Service
Motion Waste
Characteristics:
Looking for ToolsExcessive Reaching or BendingMaterial Too Far Apart (Walk Time)Equipment for Moving PartsExtra “Busy” Movements While Waiting
Motion Waste
Causes:
Equipment, Office & Plant LayoutLack of 5 S’sLack of Visual ControlsInconsistent Work Methods (Standardized Work)Large Batch Sizes
Rework or Correction Waste
Definition
Repair of a Product or Service To Fulfill Customer requirements
Rework or Correction Waste
Characteristics:
Extra Floor Space/Tools/EquipmentExtra Manpower To Inspect/Rework/RepairStockpiling InventoryComplex Material FlowQuestionable QualityMissed Shipments/DeliveriesLower Profits Due To ScrapReactive Organization
Rework or Correction Waste
Causes:
Incapable ProcessesExcessive Variation
Incapable SuppliersManagement DecisionsInsufficient TrainingInadequate Tools/EquipmentPoor Layouts/Unnecessary HandlingHigh Inventory Levels
Seven Types of Waste
Over-production
Wait
Transportation
Processing
Inventory
Motion
Defects
Seven Types of Waste
Top Related