Toyota Production System

Toyota Production System

& Dual Kanban System

Irfan Kazi & Naresh S

Toyota Production System Toyota production system was developed &

promoted by TMC. The main purpose of TPS is to eliminate waste

through continuous improvement activities.

Profit through cost reduction Elimination of over production Quality control , Quality assurance , Respect

for humanity

Cost ReductionIncrease of capital

turnover ratio

Elimination of Waste

Productionmethods

Information system

Control byteamwork

Automatic stop device

•Small lot size•Short setup time•Multifunctional worker•Job finishing within cycle time

Kanban

Continuous flow of Production

Just-in time production Jidoka

Toyota Production System

Manufacturing as a

Competitive Weapon

There are two ways to increase efficiency: 1) increase production quantity or 2) reduce the number of workers—Taiichi Ohno.

Over time, lower costs, higher quality, and faster development & production times will increase sales.

•Reduce people at all levels in the organization

“Cost Reduction Is the Goal”

“Cost Reduction Is the Goal”

In the short term, you

may need to

Goal of TPS

Why?

Main Features of TPS

Greater Product Variety

Fast Response (Flexibility)

“Stable” Production Schedules

Supply Chain Integration

Demand Management

Elements of TPS

The SMED Program.

Highlight Problems (Jidoka).

Gradual Elimination of Waste. Continuous Improvement (Kaizen), Root-Cause

Analysis (5-whys?) and Fool-proofing (Poka-Yoke).

Cross-Trained Workers.

Just-In-Time Production.

Stable Production Schedules (Heijunka)

A Lean Paradox

•Resolve how to maintain mutual trust while reducing people

Reducing costs means reducing people, but if you eliminate people as a result of improvement, you will

get no more improvement.

Reducing costs means reducing people, but if you eliminate people as a result of improvement, you will

get no more improvement.The Toyota Production System clearly reveals excess manpower…

Management’s responsibility is to identify excess manpower and utilize it effectively.

Hiring people when business is good and production high just to lay them off is a bad practice.

On the other hand, eliminating wasteful and meaningless jobs enhances the value of work for workers.

Taiichi Ohno.

Develop A Lean Strategy

•Create a sense of urgency

•Throughout the enterprise, sell lean/TPS as the solution

•Hire a sensei & retain design talent

•Establish targets

•Resolve how to maintain mutual trust while reducing people

•Give preliminary thought to supplier issues

•Consider the competitive environment

Manufacturing as a Competiti

ve Weapon

Design The Manufacturing System

•Identify the customer base and product range

•Identify takt time & its range

•Apply axiomatic design to create the basic factory system

•Eliminate non-essential infrastructure and layers above the factory floor

Establish Establish Flow Flow

Within Within CellsCells

Establish Establish Flow Flow

Within Within CellsCells

•Form cells based on takt time

•Define standard work content for each operation to be < takt time

•Separate worker from machine (jidoka)

•Develop quick setups & standard WIP (SMED)

•Standardize operations

•Form cells based on takt time

•Define standard work content for each operation to be < takt time

•Separate worker from machine (jidoka)

•Develop quick setups & standard WIP (SMED)

•Standardize operations

Establish Establish Pull Pull

Between Between CellsCells

Establish Establish Pull Pull

Between Between CellsCells

•Design an information system to produce only the products required by the downstream cells

•Incorporate takt time to drive flows

•Institute leveled production (heijunka)

•Use visual control systems

•Implement total productive maintenance

Strive For Perfection

•Institute kaizen & institutionalize 5Ss throughout organization

•Transfer ownership of all processes to work force

•Push lean down to suppliers

•Integrate product development

•Reduce people at all levels in the organization

All activities must support the goal of “shortening the time it takes to convert customer orders into

deliveries.” Toyota Motor Corporation, 1992

All activities must support the goal of “shortening the time it takes to convert customer orders into

deliveries.” Toyota Motor Corporation, 1992

•Apply flexible Apply flexible designs to designs to create the create the basic factory basic factory systemsystem

Implementing the TPS

The Toyota Production System

Just-In-Time“Right part, right amount,

right time”

Jidoka(In-station quality)

“Make Problems Visible”

Leveled Production (Heijunka)

Stable and Standardized Processes

• Takt time planning• Continuous flow• Pull system• Quick changeover• Integrated logistics

• Automatic stops• Andon• Person-machine

separation• Error proofing• In-station quality

control • Solve root cause of

problems (5 Why?)

Waste Reduction• Gemba Kaizen• 5 Why’s

• Eyes for Waste• Problem Solving

People & Teamwork• Selection• Common Goals

• Rigid decision making• Cross-trained

Continuous Improvement

Visual Management

Toyota Way Philosophy

Best Quality - Lowest Cost - Shortest Lead Time - Best Safety - High Moralethrough shortening the production flow by eliminating waste

DUAL KANBAN SYSTEM

KANBAN IS THE MAIN TOOL FOR

OPERATING ON JUST IN TIME

Kanban System

The pull system means that materials are drawn or sent for by the users of the material as needed. [Monden]

The Kanban system is an information system that harmoniously controls the production of the necessary products in the necessary quantities at the necessary time in every process of a factory and also among companies, which is known as the JIT production. [Monden]

A Kanban is a tool to achieve JIT production. It is simply a card which is usually put in a rectangular vinyl envelope. [Monden]

Types Of Kanbans Kanbans are classified as follows

1. Primary Kanban : travels from one stage to another among main manufacturing cells- “withdrawal Kanban”(conveyor kanban), “production Kanban”

2. Supply Kanban: travels from a warehouse or storage facility to a manufacturing facility

3. Procurement Kanban:travels from outside of a company to the receiving area

4. Subcontract Kanban :travels between subcontracting units

5. Auxiliary Kanban :the form of an express Kanban, emergency Kanban, or a Kanban for a specific application

Operations Principles

Level production (balance the schedule) Avoid complex information and hierarchical

control systems on a factory floor Do not withdraw parts without a kanban Withdraw only the parts needed at each

stage Do not send defective parts to the

succeeding stages Produce the exact quantity of parts

withdrawn

The key objective of a Kanban system:1. To deliver the material just-in-time to the

manufacturing workstations2. To pass information to the preceding stage as

to what and how much to produce

Following functions1. Visibility Function : the information and material flow are combined together2. Production Function : indicates the time, quantity, and part types to be produced3. Inventory Function : # of Kanbans = # of inventory

Kanban Functions

Rule 1: Move a Kanban only when the lot it represents is consumed.

Rule 2: No withdrawal of parts without a Kanban is allowed.

Rule 3: The number of parts issued to the subsequent process must be the exact number specified by the Kanban.

Rule 4: A Kanban should always be attached to the physical parts.

Rule 5: The preceding process should always produce parts in the quantities with drawn by the subsequent process.

Rule 6: Defective parts should never be conveyed to the subsequent process.

Rule 7: Process the Kanbans at every work centre in the order in which they arrive at the work centre.

Basic Kanban Rules

Dual Kanban System

Each kanban is physically attached to a container

Dual Kanbans

ProcessA

ProcessB X

P

W Container with withdrawal kanban

Container with production kanban

PWP

XXX

X X

Flow of work

Flow of kanban

XXXX

Production Cards

Production Cards

Move Cards

Move Cards

Move Card

Production Card

Outbound Stockpoint

Inbound Stockpoint

Dual Kanban System

Determining Number Of Kanbans

WhereN = number of kanbans or containersd = average demand over some time periodL = lead time to produce partsS = safety stockC = container size

No. of kanbans = mand during lead time + safety stock

container sizeaverage de

NdL S

C

TKM

GLOVE COMPARTMENT

SUPPLIER TG KIRLOSKAR

T004-A

PROCESS CODE : ASSEMBLY

55581- 0B010- 00QTY/BOX 10

PACKING CODE : PB10123

Dock 01

LOCATION CODE :T2R-2

516 SEQ NO. 1

KEY CODE :1234567890

KANBAN SAMPLE

PART NAME

NAME OF SUPPLIER FROMWHERE THE PARTS WILL BE

PARTS

DESTINATION

SUPPLIER CODEFOR EASY

SUPPLIER

IDENTIFICATION

LINE SIDE ADDRESS FORPARTS STORAGE. BASED ON

THIS ADDRESS, THE PARTSARE DELIVERED TO THE

USAGE AREA.

PART NUMBER

PARTS RECEIPT AREA.WE HAVE TWO

RECEIPT AREAS –DOCK 01 AND DOCK 02.

MINIMUM

ORDER LOT

PARTS PACKING

STYLEPART ID NO. THIS NUMBER IS USED INSTEAD

OF 10 DIGIT PART NUMBER FOR EASY

IDENTIFICATION AMONG PRODUCTION,SUPPLIER AND PARTS GROUP

COLOUR GIVEN FOREACH PROCESS LINE

FOR EASY DELIVERY OFPARTS FROM PC ZONE

TO LINE.

PARTS USAGE

PROCESS NAME

Conclusion

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

constituents of the companies world-wide especially those of the automobile

industry.

Bibliography

www.icaen.uiowa.edu/ie166/Private/Lecture/ch8-Kanban.pdf

www.ie.bilkent.edu.tr/akturk/ie561/gokhan2 www.toyota.co.jp Yasuhiro Monden, Toyota Production System,

2nd edition, IEM Press, Georgia, 1991 Vollmann, Berry, Whybark, Manufacturing

Planning & Control System, 4th edition, Irwin McGraw-Hill, 1997

Thank You