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Table of Contents

Introduction: ................................................................................................................................................ 4 Objective: ..................................................................................................................................................... 5 Core Concepts: ........................................................................................................................................... 5 Core Concepts: ....................................................................................................................................... 5 Continuous improvement: ................................................................................................................. 5 Respect for people: ............................................................................................................................ 5 Standard work practice:..................................................................................................................... 5 Main concepts of Toyota production system: .................................................................................... 5 Just in Time (JIT):................................................................................................................................... 6 Heijunka: .............................................................................................................................................. 6 Waste Elimination (MUDA): .............................................................................................................. 7 Takt Time:............................................................................................................................................ 7 Kanban Card: ...................................................................................................................................... 8 Jidoka (Automation): .................................................................................................................................. 8 Genchi Genbutsu: .................................................................................................................................. 9 Andon: ...................................................................................................................................................... 9 Pokayoke: ................................................................................................................................................ 9 Standardization:...................................................................................................................................... 9 Kaizen: ....................................................................................................................................................... 10 5 Whys? Testing the login in TPS:.................................................................................................... 10 5 S culture of continuous improvement: ......................................................................................... 10 Toyota Production System and Environment: ..................................................................................... 11 TPS and Health and Safety: ..................................................................................................................... 11 Toyota Production System and Business: ................................................................................................... 12 Safety is Toyotas constant concern both for its employees and for those of its customers. Toyotas processes and products have safety built-in, with clear benefits for productivity and cost ...................... 12 Advantage and Disadvantage of TPS: ......................................................................................................... 12 Advantages:............................................................................................................................................. 12 Disadvantages: ........................................................................................................................................ 13 References: ................................................................................................................................................. 14

Acknowledgement All praise to Almighty Allah, the most beneficent, the most merciful who provided me a golden opportunity to enhance my knowledge and also gave me power and wisdom to accomplish this work. We feel privilege and pleasure to express my profound and cordial gratitude to my supervisor Mr. IJAZ YOUSAF for his scholastic guidance to give present shape to this work.

Toyota Production System

Toyota Production System

Introduction:
Toyota Motor Corporations vehicle production system utilizes a way of making things that is referred to as a lean manufacturing system outside of Toyota. In the automobile manufacturing industry it is considered a major advancement after the mass production system of Henry Ford. (Liker J.K., 2004) The Toyota Production System (TPS) was developed to improve quality, increase productivity, and reduce overall manufacturing cost of its product line. TPS has immerged after many years of devotion to continuous improvement. Uniformity of final product and shortening product lead-time are some of the important results of this system. The objective of TPS is to makes the quality vehicles ordered by customers in the quickest and most efficient way. Toyota are identified as the "leading practitioner and the main originator of the lean approach", they have "progressively synchronized all its processes simultaneously to give high-quality, fast throughput and exceptional productivity" (Slack et al, 2007. P465). To create this more efficient system Toyota adopted two concepts in their TPS; these are 'just-in-time' (JIT) and 'Jidoka'. Jidoka is the process used that stops the machine when problems arise to ensure that defects in the products are not produced and that the quality standards are met. Just-in-time ensures that only what is needed is made, and only when it is needed. Jidoka is needed for JIT to function properly and produce efficiently at a predetermined standard of quality. Toyota Production System empowers team members to optimize quality by constantly improving processes and eliminating unnecessary waste in natural, human and corporate resources. TPS influences every aspect of Toyotas organization and includes a common set of values, knowledge and procedures. It entrusts employees with welldefined responsibilities in each production step and encourages every team member to strive for overall improvement.

Objective:
Making vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible.

Core Concepts:
The Toyota Production System is an expression of Toyotas core concept. The core concepts are shared and practiced by Toyota employees at every level in their daily work and relations with others. This is how Toyota is able to deliver sustainable customer satisfaction.

Core Concepts:
Continuous improvement:

Build an organizational culture and value system that stresses improvement of all processes Part of everyones job
Respect for people:

People are treated as knowledge workers Engage mental and physical capabilities Empower employees
Standard work practice:

Work shall be completely specified as to content, sequence, timing, and outcome Internal and external customer-supplier connection are direct Product and service flows must be simple and direct Any improvement must be made in accordance with the scientific method at the lowest possible level of the organization

Main concepts of Toyota production system:


Just in Time (JIT)

Jikoda These two are main pillars of Toyota production system furthermore these concepts involve steps details are given below.

Just in Time (JIT):


Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. Just in Time is an approach of continuous and forced problem solving via a focus on throughput and reduced inventory. The Toyota production system with emphasis on continuous improvement, respect for people, and standard work practice is particularly suited for assembly lines. The Toyota Production System fulfills customer demand efficiently and promptly by linking all production activity to real marketplace demand. Just-in-time production relies on finely tuned processes in the assembly sequence using only the quantities of items required, only when they are needed. In Toyota production system just in time include Heijunka Elimination of Waste Takt-time Kanban Card

Heijunka:
HEIJUNKA LEVELLING THE FLOW

The term heijunka describes the foundation of the TPS approach to just-in-time processes ones in which inventory costs are minimized by having the parts required arrive at their point of use only as they are needed. Unevenness in workload is known as mura. Heijunka is the elimination of mura by leveling the volumes to allow a smooth, continuous and efficient flow. It is the opposite of mass production series, in which high volumes of a single product are produced, often significantly unrelated to demand. With heijunka a process is designed to switch products easily, producing what is needed when it is needed, and relying on production. Any variations in volumes are accommodated by establishing a level-average demand rate. The practice of heijunka also eliminates muri overburden or strenuous work that can also lead to safety and

quality problems. Both mura and muri are thought of as types of muda, or waste, and should be eliminated.

Waste Elimination (MUDA):


ELIMINATION OF WASTE MUDA

Lean producers have set their sights on perfection: no bad parts, no inventory only value added activities and no waste. Any activity that does not add value in the eye of customer is waste. The customer defines product value. If the customer does not want to pay for it, it is a waste (Taiichi Ohno). Toyota production identifies seven wastes which include: Overproduction: Producing more than customer orders or producing early Queues: Idle time, storage, and waiting are waste (they add no value) Conveyance Moving material between plants or between work centers and handling more than once is waste. Inventory: Unnecessary raw materials, work-in-process, finished goods, and excess operating supplies and no value and are wastes. Motion: Movement of equipment or people that adds no value is waste. Over-processing: Work performed on the product that adds no value is value. Defect: Returns, warranty claims, rework, and scrap are a waste.
Takt Time:

Time planning is central to TPS. Takt is the rate of customer demand essentially, what the market is requiring be produced. Takt time is the term given to a work-cycle that fulfills each customers demand. The key is that the work-cycle should be synchronized

with demand to avoid under- or overproduction. Takt time determines the flow-rate and allows the calculation of how much work can be accomplished. Optimization of takt time reduces waste and inefficiency by eliminating the risk of time delays, or excess production, throughout the process. Takt time is calculated by:

Takt Time = Straight time Work time (seconds) Required Number of Production based on Demand
Kanban Card:

In order to have flexibility and efficient, smooth workflows, it is necessary to have the right things at the right place at the right time. In TPS it means having just the right components to build the product. The kanban card is the simple, highly-visible device that TPS uses to call-up components as they are required. This means only a minimum stock of components is held in the assembly area. Before stocks need replenishing, a kanban card instruction from the operator ensures a just-in-time delivery. The process is based on a pull principle with items called only as they are required, as opposed to a push principle that may not take account of actual need.

Jidoka (Automation):

When it comes to quality, there is no room for compromise in the Toyota Production System. The TPS principle of jidoka builds quality checks into each step of the production process. By ensuring that all processes are visible, jidoka helps ensure that abnormalities are made visible and addressed immediately. In 1902 Sakichi Toyoda invented the world's first automatic loom that would stop automatically if any of the threads snapped. This principal, jidoka, of designing equipment and processes to stop and call attention to problems immediately when they sense a problem is a central concept of TPS.

The most visible manifestation of 'automation with a human touch' at the Altona plant is the andon cord situated above the line. The presence of the andon cord permits any Team Member to intervene and bring production to a halt if abnormalities occur. Jidoka translates as automation and can be described as automation with a human touch. Quality is monitored throughout, with each team member being responsible for performing quality checks before delivering the goods-in-process to the next point in the production line. If a defect or error is identified it is addressed immediately even if this means temporarily stopping production.

Genchi Genbutsu:
Improvements are often made as a result of discovering problems. Therefore, problems need to be properly understood through genchi genbutsu, which means going to the source of the problem and assessing it for yourself rather than relying on information supplied by others, in order to gain a complete and accurate understanding.

Andon:
The andon board is a simple but highly-visible electronic sign displaying the status of production lines. It notifies management immediately if a worker has identified a fault, precisely identifying its location. Workers take responsibility for production quality, with the power to stop the production line as required. The production line will not be restarted until the reason for the fault has been resolved.

Pokayoke:
Low cost, highly reliable devices, used in the jidoka system that will stop processes in order to prevent the production of defective parts. this principle is a simple but creative and reliable way to reduce errors and maintain quality. Furthermore, all commonly used items are clearly labeled so that they can be found and used by everyone with the same ease.

Standardization:
Another key element for quality assurance is a focus on standardization. Developing and relying on standardized work tasks not only ensures consistently high levels of

quality, but also maintains production pace and provides a benchmark for implementing continuous improvement.

Kaizen:
In many organizations the process of change can be challenging. At Toyota change is a way of life, thanks to the companys fundamental philosophy of continuous improvement known as kaizen. Kaizen means that all team members throughout the organization are continuously looking for ways to improve operations, and people at all levels in the company support this process of improvement. Kaizen also requires clarity in terms of what is to be achieved setting clear objectives and targets for improvement. It is very much a matter of positive attitude, with the focus on what should be done rather than what can be done. In TPS, team members are invited to think about the process and make timely decisions in order to keep it running smoothly, rather than merely operating like machines. This involvement creates responsibility for the success of the process, increasing both morale and quality. This is also essential for the success of kaizen.

5 Whys? Testing the login in TPS:


Kaizen requires the logic and benefit of all improvements to be carefully evaluated before implementation. The concept of 5 whys? is employed to achieve this. Every planned improvement needs to be tested by questioning why? at five levels to ensure that the logic and value of the improvement is clear. This reduces the risk of making changes without sufficient justification.

5 S culture of continuous improvement:


The Toyota Production System goes beyond principles that are purely related to production processes. It also extends to the whole organisation sales and marketing, administration, product development and management. Every employee, regardless of position, receives the same treatment. Toyota takes care to nurture a sense of pride and efficiency in the workplace. This is supported by 5S: SEIRI Sifting SEITON Sorting

SEISO Sweeping and cleaning SEIKETSU Spic-and-span SHITSUKE Sustain These principles ensure that every team member is actively involved in keeping processes as effective and efficient as possible.

Toyota Production System and Environment:


Throughout its wide range of activities Toyota always considers the environment as part of its daily operations. Its policy is to analyze the effects of every stage in its products lives: development, manufacturing, operation, and recycling. TPS philosophy also includes the 3Rs reduce, reuse, recycle. With respect to manufacturing, the reduction of waste (muda) is one of the key principles and, therefore, benefits of TPS. Reduction of waste in processing, inventory, conveyance, overproduction, motion, waiting, and manufacturing defects delivers direct environmental benefits. At a lower level, waste sorting has long been practiced at Toyota Material Handling Europes manufacturing plants. TMHEs manufacturing sites have all achieved ISO 14001 certification.

TPS and Health and Safety:


Safety is always the focus in all of the complementary philosophies and practices that make up TPS. Not just a priority but a necessity. The tireless effort to do things in the best possible way could never progress if safety were to be compromised by apparent efficiencies. When processes are improved to increase quality, safety is also improved. Manufacturing sites have achieved OHSAS 18001 certification the international standard for occupational health and safety management. They work to anticipate and reduce potential risks factors efficiently and strive to prevent workplace accidents. The maintenance or improvement of health, safety and ergonomic are essential when processes are revised or new equipment is considered. This is not new, however. TPS has always used automation and process improvement to protect workers. The flexibility required of team members in TPS helps them to be alert and better focused as their tasks change. In all cases, workstations are designed to be easy-to-use, making work quick, comfortable and efficient. As with kaizen, all team members, from management

to the shop floor, participate in safety training and in making suggestions for improvements in safety across all processes.

Toyota Production System and Business:


Toyotas products a profitable investment for its customers businesses. Toyotas customers know what to expect when they buy from Toyota a business partner with the strength and flexibility to meet the needs of a changing market. Quality inherent in Toyotas products, thanks to the companys constant striving for improvement, has direct benefits for their customers Costs are kept to a minimum thanks to a good return on investment based on the productivity and reliability of Toyotas products Delivery is on time, and to the expected standard, allowing Toyotas customers to plan and maintain their operations successfully Environmental concerns are shared by Toyota and its customers, from manufacturing through to recycling at end-of-life. Choosing Toyota products is a good choice for the environment

Safety is Toyotas constant concern both for its employees and for those of its customers. Toyotas processes and products have safety built-in, with clear benefits for productivity and cost Advantage and Disadvantage of TPS:
Advantages:
1 Toyota production system Reducing the waste as much as possible. Less movement of the producing labor leads to less time in producing (just in time).

Every step of the production can be checked, go smoothly and without any mistakes due to (jidoka). Good quality.

2. Warehouse management system Increase the available space in the warehouse. Items properly organized in a certain way.

3. Learning management system Available 24 hours. Combines various types of information. Gives the user information that the company needs them to know. Tracking and reporting of the user performance. Enhancing what needs to be focused on. Reduce huge amount of cost and time.

Disadvantages:
Difficult, high cost to implement. To implement this system they need to dismantle previous systems, train employees how to use it. Complex to use. In lean manufacturing they keep small amount of inventory in hand, so they need a supplier that they fully trust not to interrupt or delay the supplies and always stay on schedule.

References:
http://en.wikipedia.org/wiki/Just_in_time_%28business%29 http://www.toyotaforklifts.eu/SiteCollectionDocuments/PDF%20files/Toyota%20Producti on%20System%20Brochure.pdf http://www.oxbridgegraduates.com/essays/management/report-on-toyota-productionsystem.php#ixzz2IM1vuPw8 http://www.slideshare.net/mohammadaarifkhan/toyota-production-system-1180659 http://www.lean.uky.edu/reference/terminology/ http://www.lean.uky.edu/reference/terminology/
en.wikipedia.org/wiki/Toyota_Production_System.