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Toyota Production System Toyota Production System SNS COLLEGE OF ENGINEERING AN AUTONOMOUS INSTITUTION Kurumbapalayam (Po), Coimbatore – 641 107 Accredited by NBA – AICTE and Accredited by NAAC – UGC with ‘A’ Grade Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai TOYOTA PRODUCTION SYSTEM 1 www.a2zmba.com Vision Contribute to Indian industry and economy through technology transfer, human resource development and vehicles that meet global standards at competitive price. Contribute to the well-being and stability of team members. Contribute to the overall growth for our business associates and the automobile industry. 2 www.a2zmba.com Mission Our mission is to design, manufacture and market automobiles in India and overseas while maintaining the high quality that meets global Toyota quality standards, to offer superior value and excellent after-sales service. We are dedicated to providing the highest possible level of value to customers, team members, communities and investors in India. www.a2zmba.com 3 7 Principles of Toyota Production System Reduced setup time Small-lot production Employee Involvement and Empowerment Quality at the source Equipment maintenance Pull Production Supplier involvement www.a2zmba.com 4 Production System www.a2zmba.com 5 JUST-IN-TIME Produced according to what needed, when needed and how much needed. Strategy to improve return on investment by reducing inventory and associated cost. The process is driven by Kanban concept. www.a2zmba.com 6 KANBAN CONCEPT Meaning- Sign, Index Card It is the most important Japanese concept opted by Toyota. Kanban systems combined with unique scheduling tools, dramatically reduces inventory levels. Enhances supplier/customer relationships and improves the accuracy of manufacturing schedules. A signal is sent to produce and deliver a new shipment when material is consumed. These signals are tracked through the refill cycle and bring extraordinary visibility to suppliers and buyers. www.a2zmba.com 7 www.a2zmba.com 8 Just-in-time --- Benefits Set up times are significantly reduced in the warehouse. The flows of goods from warehouse to shelves are improved. Employees who possess multiple skills are utilized more efficiently. Better consistency of scheduling and consistency of employee work hours. Increased emphasis on supplier relationships www.a2zmba.com 9 JIDOKA Jidoka (meaning ‘autonomation’)-a term used in Lean manufacturing meaning "automation with a human touch." It is a quality control process used in the Toyota Production System which applies the following four principles: Detect the abnormality. Stop. Fix or correct the immediate condition. Investigate the root cause and install a countermeasure. www.a2zmba.com 10 www.a2zmba.com 11 Jidoka www.a2zmba.com 12 Lean Manufacturing Most important concept of Toyota Production System A management philosophy focusing on reduction of the seven wastes to improve overall customer value. www.a2zmba.com 13 www.a2zmba.com 14 Key Principles Pull processing products are pulled from the consumer end (demand), not pushed from the production end (Supply) Perfect first-time quality quest for zero defects, revealing & solving problems at the source Waste minimization eliminating all activities that do not add value & safety nets, maximize use of scarce resources (capital, people and land) Continuous improvement reducing costs, improving quality, increasing productivity and information sharing Flexibility producing different mixes or greater diversity of products quickly, without sacrificing efficiency at lower volumes of production Building and maintaining a long term relationship with suppliers through collaborative risk sharing, cost sharing and information sharing arrangements. www.a2zmba.com 15 seven wastes to improve overall customer value [ MUDA ] Transportation Inventory Motion Waiting time Over-production Processing Itself Defective Product (Scrap in manufactured products or any type of business.) www.a2zmba.com 16 Other Toyota Production Concepts Heijunka (Production Smoothing) Kaizen (Continuous Improvement) Poke-Yoke (to avoid inadvertent errors) Andon (Signboard) Mura,Muri www.a2zmba.com 17 Heijunka (Production Smoothing) Heijunka is Japanese term that refers to a system of production smoothing designed to achieve a more even and consistent flow of work. Heijunka as a concept is closely related to lean production and just in time manufacturing. A related visual scheduling board known as a heijunka box is often used in achieving heijunka style efficiencies. The use of heijunka as well as broader lean production techniques helped Toyota massively reduce vehicle production times as well as inventory levels during the 1980s. www.a2zmba.com 18 Kaizen Meaning- Continuous Improvement Kaizen refers to a workplace 'quality' strategy and related to various quality-control systems. It aims to eliminate waste (defined as "activities that add cost but do not add value"). Kaizen is a daily activity whose purpose goes beyond improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work (both mental and physical. It teaches people how to perform experiments using the scientific method and how to learn to spot and eliminate waste in business processes. www.a2zmba.com 19 Poke-Yoke Poka-yoke (means "fail-safing" or "mistake-proofing" — avoiding (yokeru) inadvertent errors (poka)) is a behavior-shaping constraint, or a method of preventing errors by putting limits on how an operation can be performed in order to force the correct completion of the operation. www.a2zmba.com 20 Andon (Signboard) Andon is a manufacturing term referring to a signboard incorporating signal lights, audio alarms, and text or other displays installed at a workstation to notify management and other workers of a quality or process problem. The alert can be activated manually by a worker, or may be activated automatically by the production equipment itself. Typically, it will incorporate both a visual indicator and an audible alarm. An Andon system is one of the principle elements of the Jidoka quality-control method pioneered by Toyota and now part of the Lean methodology. It gives the worker the ability to stop production when a defect is found, and immediately call for assistance. Work is stopped until a solution has been found out. The alerts may be logged to a database so that they can be studied as part of a continuous-improvement program. The system will typically indicate where the alert was generated, and may also provide a description of the trouble. Modern Andon systems can include text, graphics, or audio elements. Audio alerts may be done with coded tones, music with different tunes corresponding to the various alerts, or pre-recorded verbal messages. www.a2zmba.com 21 Mura , Muri Mura Mura is a Japanese term for unevenness. It is also a key concept in the Toyota Production System and is one of the three types of waste (Muda, Mura, Muri) it identifies. Waste reduction is an effective way to increase profitability. Muri Muri is a Japanese term for overburden or unreasonableness. It is also a key concept in the Toyota Production System and is one of the three types of waste (Muda, Mura, Muri) it identifies. Waste reduction is an effective way to increase profitability. Muri can be avoided through standardised work. www.a2zmba.com 22 Conclusion A Production System that is steeped in the philosophy of the complete elimination of all wastes and that penetrates all aspects of production with this philosophy in pursuit of the most efficient production method. www.a2zmba.com 23.
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