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 

oyo a ro uc on System

Increase of capital turnover ratio

Cost Reduction

Elimination of Waste

Continuous flow of Production

Just-in time production

Production methods

Information system

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

Kanban

Jidoka

Control by teamwork

Automatic stop device

Goal of  TPS Why? “Cost “Cost Reduction Reduction Is Is the the Goal”  There are two ways to increase Goal” efficiency: 1) increase production quantity or 2) reduce the number of workers—Taiichi In the short Ohno.

term, you may need to

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

•Reduce people at all levels in the organizat ion Manufactur ing as a Competitiv e Weapon

Cost vs. Vitality & Growth 

As you reduce costs, you create options: Lower prices, which often lead to higher market share

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More R & D 

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Growth through acquisitions or diversification Higher investment in training and equipment Greater profitability, which rewards shareholders, including employees

Options give the company the means to survive on its own terms, even in slow economic times, and grow as the economy recovers Back 

Main Features of TPS 

Greater Product Variety

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Fast Response (Flexibility)

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“Stable” Production Schedules

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Supply Chain Integration

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Demand Management

Elements of TPS 

 The SMED Program.

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Highlight Problems (Jidoka).

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Gradual Elimination of Waste. Continuous Improvement (Kaizen), Root-Cause Analysis (5-whys?) and Fool-proofing (Poka-Yoke).

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Cross-Trained Workers.

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 Just-In-Time Production.

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Stable Production Schedules (Heijunka)

A Lean Paradox Reducing Reducingcosts costsmeans meansreducing reducingpeople, people,but butififyou you eliminate improvement , you eliminatepeople peopleas asaaresult resultof of improvement, improvement, improvem ent, youwill will get no more get noToyota more improvement. improvement. improvemen t.  The Production System clearly reveals excess manpower… •Resolve how to maintain mutual trust while reducing people

Management’s 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

the TPS All Allactivities activitiesmust mustsupport supportthe thegoal goalof of““shortening shorteningthe the time it takes to convert customer orders into time it takes to convert customer orders into deliveries ToyotaMotor MotorCorporation, Corporation,1992 1992 deliveries.”.”Toyota

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

Design The Manufactur ing System •Identify the customer base and product range •Identify takt time & its •range Apply flexible designs to •Apply create the axiomatic basic factory design systemto create the basic factory system •Eliminate non-essential infrastructure and layers above the

Establish Establish Flow Flow Within •Form Within cells Cells Cells based on takt takt time •Define standard work content for each operation to be < takt time •Separate worker from machine ( jidoka)  jidoka) •Develop quick setups & standard WIP (SMED)

Establish Establish Pull Pull Between Between •Design an Cells Cells information system to produce only the products required by the downstream cells •Incorporate takt time to drive flows •Institute leveled production (heijunka) heijunka) •Use visual

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 Manufact at all levels in uring as a the Competiti organization ve

Toyota Production System Best Quality - Lowest Cost - Shortest Lead Time - Best Safety - High Morale

through shortening the production flow by eliminating waste Just-In-Time “Right part, right amount, right time”

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

People & Teamwork  • Selection • Common Goals

• Rigid decision making • Cross-trained

Continuous Improvement Waste Reduction • Gemba Kaizen • 5 Why’s

• Eyes for Waste • Problem Solving

Leveled Production ( Heijunka) Stable and Standardized Processes Visual Management Toyota Way Philosophy

 Jidoka (In-station quality) “Make Problems Visible”

• Automatic stops • Andon • Person-machine separation • Error proofing • In-station quality control • Solve root cause of  problems (5 Why?)

DUAL KANBAN SYSTEM

KANBAN IS THE MAIN TOOL FOR  OPERATING ON JUST IN TIME

Kanban System The pull 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. 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 

1.

2.

3.

4.

5.

Kanbans are classified as follows

Primary Kanban : travels from one stage to another among main manufacturing cells- “withdrawal Kanban”(conveyor kanban), “production Kanban” Supply Kanban: travels from a warehouse or storage facility to a manufacturing facility Procurement Kanban: travels from outside of a company to the receiving area Subcontract Kanban : travels between subcontracting units Auxiliary Kanban : the form of an express Kanban, emergency e mergency Kanban, or a

Operations Principles  

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Level production (balance (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

Kanban Functions  The key objective of a Kanban system: 1. To deliver the material just-in-time to the manufacturing workstations 2. To pass pass infor informa mati tion on to to the the preceding stage as to what and how much to produce Following functions 1. Visibility Function : the information and material flow are combined together 2. Production Function : indicates the time, quantity, and part types to be produced 3. Inventory Function : # of Kanbans = # of 

Basic Kanban Rules 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 quantities with drawn by by the subsequent process. Rule 6: Defective parts should never be conveyed to the subsequent process.

Dual Kanban System

Each kanban is physically attached to a

Dual Kanbans P

X X X X X

Process A

W

X X

P

X X

Process B

X

W

Container with withdrawal kanban

Flow of work

P

Container with production kanban

Flow of kanban

Inbound Stockpoint

Outbound Stockpoint

Dual Kanban System Move Card

Production Card

Move Cards

Production Cards

Move Cards

Production Cards

Determining Number Of  Kanbans average de mand mand durin durin g le lead ad time tim e + safe safety ty st ock ock No. No. of kanba kanba ns = container size dL + S N= C

Where N = number of kanbans or containers d = average demand over some time period L = lead time t ime to produce parts S = safety stock C = container size

KANBAN SAMPLE LINE SIDE ADDRESS FOR  PARTS STORAGE. BASED ON THIS ADDRESS, THE PARTS

COLOUR GIVEN FOR 

NAME OF SUPPLIER FROM

ARE DELIVERED TO THE

EACH PROCESS LINE

WHERE THE PARTS WILL BE

USAGE AREA.

FOR EASY DELIVERY OF PARTS FROM PC ZONE TO LINE.

PARTS DESTINATION

SUPPLIER TG KIRLOSKAR 

TKM

SUPPLIER CODE FOR EASY SUPPLIER 

T004-A

KEY CODE CODE :1234567890

PROCESS CODE : ASSEMBLY

LOCATION CODE : T2R-2

IDENTIFICATION

PARTS USAGE PROCESS NAME

GLOVE COMPARTMENT

PART NAME

PART NUMBER 

QTY/BOX 10

MINIMUM ORDER LOT

PACKING CODE :

55581- 0B010- 00

516

PARTS RECEIPT AREA.

SEQ  NO. 1

Dock  01

WE HAVE TWO RECEIPT AREAS –  DOCK 01 AND DOCK 02.

PB10123

PARTS PACKING STYLE

PART ID NO. THIS NUMBER IS USED INSTEAD OF 10 DIGIT PART NUMBER FOR EASY IDENTIFICATION AMONG PRODUCTION,

Conclusion Toyota production production system has been b een created c reated from actual practices in the factories of Toyota, it has a strong strong feature of emphasising practical effects, and actual practice and implication over theoretical 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/ch8Kanban.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 

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