Production Strategies - Toyota Production System

Production Strategies

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Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

The division of labour is limited by the extent of the market.

Adam Smith

invisible hand of market exchange value utilization value free market for increasing wealth
Adam Smith (1723 1790)

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Source: Smith, A., Wealth of Nations, 1776

Adam Smith
Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

What is Strategy? Strategy is the use of combat for the purpose of war.
Carl von Clausewitz

Carl von Clausewitz (1780 1831)

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Carl von Clausewitz

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Frederick Winslow Taylor devised a system he called scientific management, a form of industrial engineering that established the organization of work as in Ford's assembly line. pensum system initiative system
Frederick Winslow Taylor (1856 1915)
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Frederick Winslow Taylor

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Henry Ford was the founder of the Ford Motor Company. He was one of the first to apply assembly line manufacturing to the mass production of affordable automobiles. This achievement not only changed industrial production in the United States and the rest of the world, but also had such big influence over modern culture that many social theorists identify this phase of economic and social history as "Fordism."

Henry Ford (1863-1947)

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Henry Ford

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Taiichi Ohno developed the main objectives just in time and autonomation after the second world war. He was the main developer of the Toyota Production System.
Taiichi Ohno (1912 - 1990)

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Taiichi Ohno
Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

The main goal of the Toyota Production System is to eliminate waste (= muda). Eliminating of waste completely can improve the operating efficiency by large margin.

The Total Avoidance of Waste

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What is the Toyota Production System?

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

The ability to respond to fluctuation in the market has first priority, therefore: production in small lot sizes mixed-Production for production-levelling

Flexible Production

alliance and synchronisation of assembly and production

The Total Avoidance of Waste

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Main Elements

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Just in Time is delivery of the needed amount at the right time:

buffer free store free kanban (principle of a Supermarket) involvement of the supplier in the kanban-system
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Just in Time Flexible Production

The Total Avoidance of Waste

First Pillar

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System Autonomation (autonomous automation) is the 100% zero defect operation: Apparatuses on every machine,

Just in Time

which can differentiate between a

Autonomation

normal and abnormal production (Poka-Yoke). In case any failure occurs (e.g.

Flexible Production The Total Avoidance of Waste

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defective work piece, wrong position and navigation) the machine stops automatically at the end of the work cycle (Jidoka). This will be shown for every worker on cards called Andon.

Second Pillar

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Ohno says, that the individual use of only one of the main elements will not lead to a successful implementation of the Toyota Production System.

Toyota Production System Just in Time Autonomation

In contrast, a deterioration of the production could occur. Using one of the main objectives requires the simultaneous use of all of the other main objectives.

Flexible Production The Total Avoidance of Waste

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Main Elements of the Toyota Production System

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

What is waste? Rate between work and waste

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The Total Avoidance of Waste

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Kinds of Waste(=muda): Waste of overproduction Waste of time on hand (waiting) Waste in transportation Waste of processing itself Waste of stock on hand (inventory) Waste of movement Waste of making defective products

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Source: Ohno, T., Toyota Production System, 1988

What is Waste?

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Waste: The needless, repetitious movement that must be eliminated immediately. For example, waiting for or stacking subassemblies.

Value-added work (under given working conditions): the real processing, which directly contribute to the appreciation value of the product.

Non-value-added work: Waste, because there is no

Present Capacity = Work + Waste

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appreciation value, like getting components, opening a sending of a supplier, pushing the on-button of engines. You have to change the working conditions if you want to remove this waste.

Source: Ohno, T., Toyota Production System, 1988

Relation between Work and Waste

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Mass production of large lot sizes versus Toyota Production System with small lot sizes Mixed production for production-levelling How to achieve flexible production by selecting the adequate organizational type?

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Flexible Production

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Workpiece

Stationary in all processes

Moving between process organised capacity units

Complete machining Stationary machining on one single capacity at the workpiece Capacity units combined Capacity units combined unit (location principle) according to the according to the characteristic of similar characteristic of the part family (object principle) technologies (performance principle) Point production Fixed-site production Job-shop production

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Source: Seliger, G., Wirtschaftliche Planung automatisierter Fertigungssysteme, 1983

Organisational Types of Production (1)

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System Capacity units combined according to the characteristic of the part family (object principle) Different process sequences Automatic material and information flow Flexible-production system No bonding of the capacity units Production with integrated anticipated flow control Production island Production with integrated schedule flow control Manufacturing cell
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Same process sequences Flow of material without synchronisation Synchronised flow of materials Capacity units interlinked by feed system Flow production Automatic flow of materials, complete system control Transfer production

Serial production

Source: Seliger, G., Wirtschaftliche Planung automatisierter Fertigungssysteme, 1983

Organisational Types of Production (2)

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System Attribute Ford Toyota processing and assembling are directly connected Advantage shorter cycles, reduced prefabricatedstocks, reduced cycle time low batch delays, order related production batch delays are running towards zero, adjusted to change, prefers utilisation ratio balance

Continuous flow of materials

only in assembling

Batch size

large

small

Flow of parts

only one product (few variants)

mixed flow of products (many variants)

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Source: Shingo, S., Das Erfolgsgeheimnis der Toyota Produktion, 1992

Difference between Ford- and Toyota-System

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Avoidance of fluctuations at the final assembly line:

Non-Mixed-model-Production in final assembly Mixed-model-Production in final assembly

Ford produced 200 of type X at the beginning of the month, 300 of type Y in mid month and 400 of type Z at the end.

Toyota produced repeatedly a mix of X to Y to Z of 2 to 3 to 4. Constantly continuous flow of material in the assembly. No separation of assembly and manufacture of components.

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Mixed production for productionlevelling

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Production in large batches

100 s 200 s 300 s

Production in small batches

100 s

Process 1 Process 2 Process 3

1
100 s

100

Process 1 100
100 s

1 2 3
1s

98 99 100
1s

Process 2 100 Process 3

1 2 3

98 99 100
1s

1 2
3s Cycle time 102 s

100

Cycle time 300 s

Short cycle times increase the flexibility to react to fluctuations.

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Production in Large or Small Batches

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Process-orientated installation of a machine

Operation of more than one machine

Synchronisation by JIT with the Kanban-Tool

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Just in Time

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

The Toyota Production System is geared to the continuous flow process at the final assembly line. Through process orientated installation of the machines, every other production step will be adjusted to this continuous flow process.

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Process orientated Installation of the Machines

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Multiple-machine operation
Versions handling

Multiple-process handling
Parts to work on Planing machine Turning machine Milling machine Finish part Drilling machine A worker is handling four handling processes involving four machines Versions handling

A B C D
Planing machine Turning machine Milling machine Drilling machine

A B C D

A worker is handling four variants of one product in one handling process

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Installation of Machines and Organisation

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Prevents overproduction and unnecessary transport

No tool will be produced or transported without kanban.

Provision of information regarding removal or transport

Sub purchaser cycle takes the amount of work pieces shown on the kanban.

Provision of production information

Sub purchaser cycle produces the work pieces shown on the kanban in the right amount and order.

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The Tool Kanban (1)

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Used as a form of work order attached to goods

Always attach a kanban to goods.

By knowing the cycle that caused the fault, defective products can be prevented
Defective pieces will not be sent to the next cycle. The result are zero defect products.

Discovers existing problems and allows checking of stock.

Reduction in amount of kanban leads to an advance of sensibility.

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The Tool Kanban (2)

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System Assembly area

Number Identification

Name of supplier

Amount

Supplier gate

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A Kanban Card for a Supplier

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Removal of the kanban during the removal of the first component from the new box.

The operator deposits the Kanban that he or she removes from boxes of parts in a Kanban mailbox nearby.

The team leader collects all kanbans from the mailboxes at fixed points of time. This happens several times a day. A postman picks up these collected kanbans

and brings them to a sorting room. A machine sorts the kanbans into designated depositions for the individual suppliers.

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Removal or Transport Information- Kanban (1)

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

At a delivery of components a driver of the supplier picks up the kanbans from his box...

... and sorts these again in his factory into boxes.

A removal kanban will be exchanged with a production-briefing kanban..

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Removal or Transport Information- Kanban (2)

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

100% error free production

SMED method (Single Minute Exchange of Die)

Andon

Poka-Yoke method

Kaizen method
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Autonomation

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Bracket keyholes Component for attachment die change unit U-shaped Washers spring spring lock

SMEDs are necessary assumptions to minimise the set-up times. Lower set-up times reduce the cycle Keyhole method times.
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Locking mechanism method

Semicircular slot
Shaft slots in here

U-slot method clamp

Removed portion of thread

Insert and remove here

Method with countersunk thread

Clamp-method using bolt tension

Source: Shingo, S., Das Erfolgsgeheimnis der Toyota Produktion, 1992 ( translated )

SMED (single minute exchange of die)

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Faster set-up times lead to an increase in machine capacity. Lower batch production leads to substantial stock reductions. Fluctuation of demand is managed better because it is easier to react quickly, e.g. if faster delivery times or a complete change of a model are required. The successful adoption of SMED gives the workers trust in constant change. A special corporate culture leads to a continuous process improvement (Kaizen).
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Advantages of SMED

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

In case of a defect the work piece doesnt fit into the tool. The engine doesnt start if there is anything wrong with the tool. In case of a defect the engine doesnt start. In case of a defect or if a single step was left out the machine will automatically correct it and continue the processing. Irregularities will be located in the next cycle. The production of defect products can be stopped. If a step was forgotten the next cycle doesnt start.

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Poka-Yoke Method

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

This mechanism is supposed to prevent a wrong orientation.

This mechanism interrupts the process if the nut is missing.

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Examples for Poka-Yoke Method (1)

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Sensors prove the correct and exact positioning.

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Examples for Poka-Yoke Method (2)

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System green light: business as usual yellow light: worker needs assistance red light: assembly line stops, a problem must be solved

It is ok to stop the assembly line because it helps to find all problems.

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Andon - Display Panel

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

A standard process sheet has to describe clearly and precisely these three elements:
Cycle time the duration (minutes and seconds) in which one unit should be produced. Work progression the work order over time. Standard inventory the minimum of goods to get the flow process alive.

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Standard Process Sheet

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Continuous improvement process that is driven by the workers.

Colleagues construct the standard process sheets themselves. Poka-Yoke and SMED are a result of kaizen. Kaizen leads to an increase in motivation because workers can influence their own conditions of employment.

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Kaizen

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Ask yourself Why? Five times. That way you'll find the root cause, and if you get rid of that it'll never happen again."
Taichi Ohno

Why has the engine stopped? There was an overload and the fuse is burnt through. Why was there an overload? The bearing wasnt lubricated enough. Why wasnt it lubricated enough? The oil pump hasnt pumped enough. Why hasnt it pumped enough? The shaft knocked out. Why has the shaft knocked out? Because there was no sieve and therefore some splinters got in the engine.
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Ask yourself Five Times Why?

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger

Production Strategies - Toyota Production System

Ford, H.: Today and Tomorrow: Corporate Leadership, Productivity Press, 1995 Taylor, F. W.: The Principles of Scientific Management, 1st World Library, 2006 Womack, J. P. et al: The Machine That Changed the World: The Story of Lean Production, Harper Perennial, 1991 Clausewitz, C. von: On War, Kessinger Publishing, 2002 Smith, A.: Wealth of Nations, Prometheus Books, 1994 Monden, Y.: Toyota Production System: An Integrated Approach to Just-In-Time, Engineering & Management Press, 1998 Ohno, T.: Toyota Production System: Beyond Large-Scale Production, Productivity Press, 1995 Seliger, G.: Wirtschaftliche Planung automatisierter Produktionssysteme, Hanser Verlag, Mnchen, 1983 Shingo, S.: A Study of the Toyota Production System, Productivity Press, 1995 Toyota Motor Cooperation: The Toyota Production System, International Public Affairs Division, Toyota City, 1996
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Literature / References

Fachgebiet Montagetechnik und Fabrikbetrieb Prof. Dr.-Ing. G. Seliger