Toyata JIT process

1. Case Study : Toyota JIT Presented By : Gagan Pareek Harish Nath SabyasachiBehura SandeepKumar.A. VinayChaudhary

2. Toyota Principles Section I : Long-Term Philosophy Principle 1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals. Section II: The Right Process Will Produce the Right Results Principle 2. Create continuous process flow to bring problems to the surface. Principle 3. Use “pull” systems to avoid overproduction. Principle 4. Level out the workload (Work like the tortoise, not the hare.)

3. Toyota Principles… Principle 5. Build a culture of stopping to fix problems, to get quality right the first time. Principle 6. Standardized tasks are the foundation for continuous improvement and employee empowerment. Principle 7. Use visual control so no problems are hidden. Principle 8. Use only reliable, thoroughly tested technology that serves your people and processes.

4. Toyota Production System

5. Waste(Anything which is not adding any value or customer do not want to pay for that) Overproduction. Producing items for which there are no orders, which generates such wastes as overstaffing and storage and transportation costs because of excess inventory. Waiting (time on hand). Workers merely serving to watch an automated machine or having to stand around waiting for the next processing step, tool, supply, part, etc., or just plain having no work because of stock outs, lot processing delays, equipment downtime, and capacity bottlenecks. Unnecessary transport or conveyance.Carrying work in process (WIP) long distances, creating inefficient transport, or moving materials, parts, or finished goods into or out of storage or between processes

6. Waste… Over processing or incorrect processing.Taking unneeded steps to process the parts. Inefficiently processing due to poor tool and product design, causing unnecessary motion and producing defects. Waste is generated when providing higher-quality products than is necessary Excess inventory. Excess raw material, WIP, or finished goods causing longer lead times, obsolescence, damaged goods, transportation and storage costs, and delay. Also, extra inventory hides problems such as production imbalances, late deliveries from suppliers, defects, equipment downtime, and long setup times Unnecessary movement.Any wasted motion employees have to perform during the course of their work, such as looking for, reaching for, or stacking parts, tools, etc. Also, walking is waste.

7. Waste… Defects. Production of defective parts or correction. Repair or rework, scrap, replacement production, and inspection mean wasteful handling, time, and effort. Unused employee creativity. Losing time, ideas, skills, improvements, and learning opportunities by not engaging or listening to your employees.

8. The "4 P" model and where most companies are

9. Process downtime Scrap Setup time Quality problems Late deliveries Reduce Variability Inventory level

10. Reduce Variability Inventory level Process downtime Scrap Setup time Quality problems Late deliveries

11. Advantages of JIT Listed below are some of the advantages overviewed throughout this paper: Possible increase in profits Quality products Quicker setup Eliminates costs of storage facilities More flexible employees Quality relationships with suppliers Elimination of waste No down time

12. Disadvantages of JIT. Is not applicable everywhere, should be discrete production and/or assembly environment. Higher amounts of machine/worker idle time. JIT is quite efficient when the demand pattern is stable. If not, the amount of idle time will be even worse. When there is a sudden change in the demand pattern it will take time for JIT system to react since there is no central information unit. An MRP system on the other hand would update all the levels immediately. Further idle time during machine breakdowns or flow interruptions. Production rates may be decreased. Requires more training, more consciousness and employee commitment. More difficult goals to be attained. Coordination with customers and suppliers should be much better and disciplined. Doesn’t make much use of forecasting information. Multiple sourcing is not possible. Success probability is lower.

13. Finished goods Customer order Kanban Work cell Ship Raw Material Supplier Kanban Kanban Final assembly Kanban Kanban Sub-assembly Kanban Purchased Parts Supplier kanban

14. Thank You