TOYOTA PRODUCTION

SYSTEM
Presented by-
Dhara Joshi(9)
Indu Nair (15)
Meenu (26)
Suruchi Phansalkar(55)
Swati Jaiswal (57)
 THINKING THE LEAN WAY
INTELLIGENT
ELIMINATION OF AUTOMATION
WASTE
JUST-IN-TIME

QUALITY
PRODUCTION
ENRICHED
VALUES

TOYOTA PRODUCTION SYSTEM

CUSTOMER SATISFACTION COMPANY MAKES

 UNDERSTANDING THE LEAN WAY
• A thought:
» JUGAAD == LEAN??

• Defining TPS:
- Socio-technical system
 HISTORY
“DEFEND YOUR CASTLE YOURSELF”
–Toyota Philosophy

• 1960- Rapid growth of motorization

“Eiji Toyoda, President of Toyota Motor Co., Ltd. at the time., who reflected this policy
in October 1969 when he announced Toyota's "massvolume production" policy”
• Annul production doubled in 3 years
• Strengthened its dealer network and its supplier relationships
• Promoted the spirit of "competition and cooperation”
 CONTD..
• Ohno’s redefinition of Production:
– Build only what is needed
– Eliminate anything which does not add value
– Stop if something goes wrong

• Philosophy of work :
– Respect those engaged in work
– Strive for full utilization of workers’ capabilities
– Empowering people

“The most startling manifestation of these values was seen in the authority of any
worker on the line to halt the entire production process if they found a defect”
4 RULES EMBEDDED IN TPS
The 4 Rules of the Toyota Production System are:

1. How People Work: All work should be specified, sequenced, timed, and
output
2. How People Connect: Must have direct connections with suppliers and
unambiguous yes-or-no way to send requests and receive responses
3. How the Production Line is Constructed: Must have simple and direct
pathway for every product and service
4. How to Improve: Scientific Method must be used beginning at the lowest
level of workers with the assistance of a teacher
 14 PRINCIPLES
• Base your management decisions on a long-term philosophy, even
at the expense of short-term financial goals.
• Create a continuous process flow to bring problems to the surface.
• Use "pull" systems to avoid overproduction.
• Level out the workload (heijunka). (Work like the tortoise, not the
hare).
• Build a culture of stopping to fix problems, to get quality right the
first time.
• Standardized tasks and processes are the foundation for
continuous improvement and employee empowerment.
• Use visual control so no problems are hidden.
• Use only reliable, thoroughly tested technology that serves your
people and processes.
 14 PRINCIPLES CONTD..
• Grow leaders who thoroughly understand the work, live the philosophy, and teach
it to others.
• Develop exceptional people and teams who follow your company's philosophy.
• Respect your extended network of partners and suppliers by challenging them and
helping them improve.
• Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu)

• Make decisions slowly by consensus, thoroughly considering all options;

implement decisions rapidly (nemawashi).
• Become a learning organization through relentless reflection (hansei) and
continuous improvement (kaizen).
TPS SYSTEM
 JUST IN TIME
(JIT)
•JIT was first adopted and publicized by Toyota
Motor Corporation of Japan.
•It is known as the backbone of Toyota Production
System.
•It causes improvement in return on investments ,
quality and efficiency.
 DEFINITION OF JIT

• Just-in-Time manufacturing means producing

the necessary items in necessary quantities at
the necessary time.
• It is a philosophy of continuous improvement
in which non-value adding activities(or
wastes) are identified and removed.
 3 PARTS OF JIT

• JIT purchasing

• JIT manufacturing

• JIT distribution
 STEPS TOWARD JIT PRODUCTION
• What you can achieve with JIT.
• Value Stream Mapping and 5S.
• Line integration
• One piece flow
• Pull system(KANBAN)
• Line balancing(Takt time)
• Standardisation
• Quick changeover
 TAKT TIME
• Takt time is the rhythm on which the lean
manufacturing system works.
• It is the ultimate pull scheduling system
• Takt time can be calculated as

Takt time = Net time available for production /

Customer demand
 HOW TO CALCULATE TAKT TIME?
• Example: you work 8 hrs a day for 5 days a
week. For a week you have a demand of 100
pcs. Then your calculation will be as follows.
• solution
takt = 8*5*60 / 100 pcs.
=24 minutes.
 KANBAN
• Kanban (kahn-bahn) is a japanese word which
means “visible record” or “visible part”
• Is a method of controlling the flow of
production on customers demand.
• It helps in eliminating waste.
• It helps in reducing lead time.
• It helps in optimize use of floor space
 BENEFITS OF JIT
• Reduced operating costs.
• Greater performance and throughput.
• Higher quality.
• Improved delivery.
• Increased flexibility and innovativeness.
 CONTINUOUS IMPROVEMENT
(Kaizen)
• A system of continuous improvement in which
instances of Muda(waste) are eliminated one
by one at minimal cost.
• This is employed by all the employees rather
than by specialists.
 TYPES OF WASTES
•Over production
•Waiting
•Transportation
•Over processing
•Excess Inventory
•Defects
•Excess motion
•Underutilized people
 JIDOKA
• TPS- House with two pillars.
• JIDOKA PILLAR
“Stop and respond to every
abnormality”.
• Definitions of Jidoka
-Automation
-Automatic control of defects
 JIDOKA-Four step process
• Detect the abnormality
• Stop
• Fix or correct the immediate condition
• Investigate the root cause & install a counter
measure.
 COMPONENTS OF JIDOKA
• Andon

“Andon doesn’t mean STOP the process.

It means HELP.”
 POKA-YOKE
• A tool used for shutting down machinery as
part of the Jidoka system is “Poka-Yoke”.
• Mistake Proofing Device

• Examples- lasers, automatic switches and jigs.

 AUTONOMATION
• Authorize the machine operator.
• Concept of automated line
The common causes of defects.
• Inappropriate operating
procedures
• Excessive variation in operations
• Defective raw material
• Human or Machine error
 Total Productive Maintenance
• TPM is a maintenance program which involves
a newly defined concept for maintaining
plants and equipment.
• Moto of TPM
“Zero error, Zero-work related accident and
zero loss”.
 GOALS OF TPM
• Avoid wastage in a quickly changing economic
environment
• Producing goods without reducing product
quality
• Reduce cost
• Goods send to the customer must be non-
defective
 AGILE- A step ahead of LEAN..
- Lean comes primarily from manufacturing
particularly TOYOTA production system.
- Agile work is borrowed from lean thinking and
practices.
 Why do we need to AGILE..??
• AGILE = combine organization+ people +
technology.
• competitive advantage and to cope up with
rapid response to changes.
 Four core concepts
• Key attributes of agile
– Customer value focus (solutions not products)
– Flexibility to adapt to fundamental market
changes
– Competing from multiple fronts, possibly virtually
– Organisational knowledge, including ability to
adapt IT systems to support new processes.
 Comparing LEAN and AGILE

Lean
Lean Agile
Agile

Make to stock
Make/Engineer to order,
Low variety
High variety, Service culture
Mass, repetitive
“Product Innovator”?
“Cost minimiser”
“Customer intimate”?
 Comparison between LEAN and AGILE
manufacturing
Agile principles Lean principles.

1.Customer satisfaction. Just delivering goods.

2.Flexible to changes. Plan for change.

3.Unity in work at all Work department wise
levels. as allocated.
4.Motivate each employee Empower the team.
individually.
5.Face to face Signaling, see for your
conversation. self type.
6.Maintains good rapt Depends on factory
with outsiders. concept.
7.Technical excellence. Build quality.

8.Adjusts as per the Continuous improvement.

situation.
9.Self organizing the Empower the team.
teams.
 CONCLUSION
• Lean strategy helps the firm to reduce the
time and costs of transportation.
• Lean does not deal with uncertainties from
customer demands.
• Agile strategies helps in alleviating these
demands.
 CONCLUSION
• Lean has tremendous impact in diverse
industries.
• Agile started within software development
and in less than a decade has become the
fastest growing management style.
 CONCLUSION
• Top Organizations which use Lean-agile
production systems:
 Google
 Apple
 IBM
 JP Morgan
 Yahoo
 CONCLUSION
• “Lean Manufacturing System can be adopted
in new manufacturing system, existing
manufacturing system requiring capitalization,
equipment or product relocation”
THANK YOU