CORPORATE PROFILE

• World's third largest automaker

• Global sales totaling 6.17 million units
• Toyota has 45 manufacturing companies
in 26 countries
• Toyota employs 3,16,000 people
worldwide
• Markets vehicles in 170 countries
• Net sales $262.29 billion
 TOYOTA BACKGROUND
Toyota Motor Co. Ltd was established by
Kiichiro Toyoda in 1937 as a spin-off from
Toyoda Automatic Loom Works
Toyota launched its first passenger
car in 1947
• 'Toyota Production System’ was established in
1970 by Taiichi Ohno. Based on the principles of
JIDOKA, JUST-IN-TIME and KAIZEN,
REDUCTION OF INVENTORIES and DEFECTS
in the plants of Toyota and its suppliers
FOUNDER OF TPS

TAIICHI OHNO
TOYOTA PRODUCTION SYSTEM
 AUTONOMATION
- Autonomous automation for 100% zero
defect production

JIDOKA = AUTONOMATION =
AUTOMATION WITH HUMAN
INTELLIGENCE
 4 Principles of Autonomation
• Detect the abnormality.
• Stop.
• Fix or correct the immediate condition.
• Investigate the root cause and install a
countermeasure.
JIDOKA
USE OF ANDON
POKA - YOKE
 JUST IN TIME
• JIT- philosophy of continuous
improvement that puts emphasis on
prevention rather than correction, and
demands a company wide focus on
quality.
• JIT- operational management approach to
world class manufacturing.
• JIT- production is based on demand
 JUST IN TIME
Just in Time is delivery of the needed
amount at the right time:
• buffer free
• store free
• kanban
• involvement of the supplier in the kanban
system
 TRADITIONAL “BUFFERED”
SUPPLY CHAIN
2nd Tier

Flow of Production

1st Tier

Customer
Flow of Information Assembler
Demand
 JUST-IN-TIME SUPPLY CHAIN

2nd Tier

Flow of Production

1st Tier

Flow of Information Toyo ta

Customer
Demand
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.
 KANBAN
• 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.
1. User removes a
standard sized
container
2. Signal is seen by
the producing
department as
authorization to
replenish
Signal marker
on boxes

Part numbers
mark location
 KANBAN SIGNALS
• As a customer “pulls” an order from finished
goods, a signal (card) is sent to the final assembly
area
• The final assembly area produces and resupplies
finished goods
• When final assembly needs components, it sends a
signal to its suppliers, a subassembly area and a
work cell
–These areas supply final assembly
• The work cell, in turn, sends a signal to the raw
material supplier and the subassembly area notifies
the work cell and purchased parts supplier of a
requirement
 KANBAN SIGNALS

Kanban

Work
cell
Ship

Raw Kanban Final Kanban

Material assembly
Supplier
Kanban Kanban
Sub-
Purchased assembly
Parts Kanban
Supplier
 FLEXIBLE PRODUCTION

The ability to respond to market fluctuations

has the first priority. Therefore going for –

•Production in small lot sizes

•Mixed production for production leveling
•Alliance and Synchronization of assembly
and production
MIXED MODEL PRODUCTION IN FINAL ASSEMBLY
TOTAL AVOIDANCE OF WASTE

Main goals of the TPS are to-

 design out overburden (MURI)

 smooth production (MURA)
 eliminate waste (MUDA)
 7 kinds of MUDA targeted in the
TPS
• Over-production
• Motion (of operator or machine)
• Waiting (of operator or machine)
• Conveyance
• Processing itself
• Inventory (raw material)
• Correction (rework and scrap)
 RELATION BETWEEN WORK
& WASTE
WASTE- the needless, repetitious movement
that must be eliminated immediately.

VALUE- ADDED WORK- the real

processing, directly contributing
to the appreciation value of the
product.

NON VALUE-ADDED WORK-

contributes to the waste

PRESENT CAPACITY =
WORK + WASTE
 ADVANTAGES OF GOING FOR
TPS
Companies that pursue and emulate TPS best
practices have seen much success as a result of
this highly effective manufacturing philosophy.
Some of the benefits include:
• Identify and enhance customer perceived
value
• Decrease waste and cost in the
manufacturing process
• Improve product quality and on-time delivery
• Develop a competitive world class
manufacturing operation
 PRESENTED BY,
THANK YOU TEAM 6A
TSM, Madurai