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-Presented by 
 Akshay Katariya (13218) 
 Harshad Jain (13224) 
 Pravin Jadhav (13239) 
 AkshayGhone (13248) 
 Shivaj...
 Established in Japan in Year 1937 
 Largest and most profitable automobile manufacturer 
in the world since 2008 
 Pro...
 Starts with Sakichi Toyoda who grew up in 
predominantly farming community in late 1800s. 
Weaving was a major industry ...
 The “mistake-proof” loom became Toyoda’s most popular 
model 
 In 1929, his son Kichiro, negotiated the sale of patent ...
 Post-WWII, rampant inflation meant getting paid by 
customers was very difficult. Cash-flow problems lead to pay 
cuts. ...
 Taiichi Ohno benchmarked the competition by visiting Ford 
and studied Henry Ford’s “book.” 
 Impressed with Ford’s phi...
 Deming told the Japanese industry about meeting and 
exceeding customer satisfaction. Also broadened the 
definition of ...
The Toyota Production System ……. 
Best Quality – Lowest Cost – Shortest lead Time – 
Best Safety – High Morale 
People & T...
 Overproduction: Producing items for which there are no 
orders, which generates such wastes as overstaffing and 
storage...
 Over-processing or incorrect processing: Taking unneeded 
steps to process the parts. Inefficient processing due to poor...
 Defects: Production of defective parts or correction. Repair or 
rework, scrap, replacement production, and inspection m...
Just-in-Time means PRODUCING: 
a)Right item 
b) At right time 
c) In the right amount
 Mr. Ohno used to say that no problem 
discovered when stopping the line should wait 
longer than tomorrow morning to be ...
Competitor’s culture 
• No matter what Do not shut down the 
Assembly line. 
Toyota’s culture 
• If you are not shutting t...
 Stopping the Process to build in Quality 
 Quality should be built in. 
 Jidoka- Equipment endowed with human 
intelli...
 If the problem is small enough that can be solved 
in the lead-time between two workstation, 100% 
quality is achieved w...
 Mr. Ohno was passionate about TPS. He said 
you must clean up everything so you can see 
problems. He would complain if ...
Sort 
Clean out 
rarely used 
items by red 
tagging 
Straighten 
Organize and 
label a place 
for everything 
Shine 
Clean...
 “The factories were so clean you could eat off of the floor”. – Americans 
reaction to Japanese plants. 
 “5 S programs...
 People are the centre of the house because only through 
continuous improvement can the operation attain the 
system sta...
Growing your leaders rather than purchasing 
them 
The Newsmaker of 2002 by The Automative News 
 Bill Ford (Ford CEO) 
...
Toyota Leaders view of the TPS
Customer First
The Chief Engineer: Critical Link to Innovation, 
Leadership and Customer Satisfaction.
The Common Themes of Leadership at Toyota 
TOYOTA LEADERS 
Group Facilitator 
“You are Empowered” 
Bureaucratic 
Manager 
...
CommonTraits: 
Focused on Long-term Purpose as a Value-Added Contributor to Society. 
Never deviated from the Precepts of ...
• Importance of team work 
• Co-ordinate the work, motivate and learn together 
• Suggest innovative ideas, even control t...
Team Size 
Team Member 
5 ~ 8 
Team Leader 
3 ~ 4 
Group Leader 
5 ~ 8 
Assistant Manager 
4 - 10 
Manager 
PTMSB 
Working...
Internal 
Motivation 
• Maslow’s need hierarchy 
• Herzberg’s Job enrichment theory 
External 
• Taylor’s scientific Manag...
• Find Solid Partners and GrowTogether to Mutual Benefit in the Long-Term 
• Cross-Docking (“Break-Bulk” Facilities) 
• Pa...
Learning 
Enterprise 
Enabling 
System 
Clear Expectations 
Stable, Reliable Processes 
Fair & Honorable Business Relation...
Genchi Genbutsu
Deeply understand and report what you see 
Genchi Genbutsu - Going to the actual place 
(Gemba) to see the actual situatio...
Ohno Circle
See for America, then design for America
Kiichiro Toyoda: “ How can you expect to do 
your job without getting your hands dirty”
• Toyota’s leaders see the company as a vehicle for adding value to customers, 
society, the community and its associates....
• Visual management is one of the lean techniques designed so 
that anyone entering a work place, even those who are 
unfa...
Techniques used in visual management 
The techniques used to create a visually managed workplace fall into a number of 
ca...
 Today’s standardization ..is the necessary 
foundation on which tomorrow’s improvement 
will be based. If you think of “...
Takt time(time required to complete one 
job at the pace of customer demands 
Toyota’s Standardized 
Work 
Inventory on ha...
 The slower but consistent tortoise causes less 
waste and is much more desirable than the 
speedy hare that races ahead ...
-Focuses on what 
customers want 
and when they 
want it. 
-Unpredictable 
customer needs 
-stressing people 
and equipmen...
Muda 
Waste 
Muri 
Overburden 
Mura 
Unevenness 
The Three M’s of Toyota Production System
Muda 
• Non value added 
• Focus of lean manufacturing system- Eliminating Muda 
Muri 
• Overburdening people or Equipment...
 Levelling the production both by volume and 
product mix. 
 Does not produce according to customer orders 
 Takes tota...
CONCLUSION 
Best Quality – Lowest Cost – Shortest lead Time – 
Best Safety – High Morale 
People & Teamwork 
• Selection 
...
Management Control System at Toyota
Management Control System at Toyota
Management Control System at Toyota
Management Control System at Toyota
Management Control System at Toyota
Management Control System at Toyota
Management Control System at Toyota
Management Control System at Toyota
Management Control System at Toyota
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Management Control System at Toyota

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The presentation is about Management Control System at Toyota. The presentation briefly covers the various techniques developed by Toyota with reference to the "Toyota House Diagram".

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Management Control System at Toyota

  1. 1. -Presented by  Akshay Katariya (13218)  Harshad Jain (13224)  Pravin Jadhav (13239)  AkshayGhone (13248)  Shivaji kothewad (13256)
  2. 2.  Established in Japan in Year 1937  Largest and most profitable automobile manufacturer in the world since 2008  Produced 20 crore vehicles till July 2012  About 70 different vehicle models,  Largest listed company in Japan  14th largest listed company world over  Factories in 27 countries in the world  Over 3,33,498 employees world over  Following Best Management Practices since 1940
  3. 3.  Starts with Sakichi Toyoda who grew up in predominantly farming community in late 1800s. Weaving was a major industry promoted by the Japanese government.  By 1894, Sakichi began to make manual looms that were cheaper but of better quality (more features and less failures).  Started working on his own to develop power-driven loom. This approach of learning and doing yourself became integral part of TPS (genchi genbutsu).  Among his inventions was a special mechanism to automatically stop a loom whenever a thread broke – building in quality as you produce the material (jidoka or poka-yoke).
  4. 4.  The “mistake-proof” loom became Toyoda’s most popular model  In 1929, his son Kichiro, negotiated the sale of patent rights to Platt Brothers of England for £100,000.  In 1930, these funds were used to start building the Toyota Motor Corp.  Kichiro’s contribution to the Toyota philosophy – JIT.  What is JIT? – marriage between the Ford’s idea of assembly line and US supermarket system of replacing products on the shelves just in time as customer purchased them.  Not much later WWII started.
  5. 5.  Post-WWII, rampant inflation meant getting paid by customers was very difficult. Cash-flow problems lead to pay cuts.  When situation worsened, 1600 workers were asked to “retire voluntarily.”  The resultant work stoppages and public demonstrations by workers led to resignation of Kichiro.  Eiji Toyoda took over as president.  Eiji’s main contribution – leadership towards development of the TPS.  Eiji hired Taiichi Ohno as the plant manager and asked him to improve Toyota’s manufacturing process so that it equals the productivity of Ford.
  6. 6.  Taiichi Ohno benchmarked the competition by visiting Ford and studied Henry Ford’s “book.”  Impressed with Ford’s philosophy of eliminating waste. Ford itself didn’t seem to practice it.  Took idea of reducing inventory by implementing “pull” system from the US supermarkets.  “Pull” system was implemented by Kanban cards.  Ohno also took ideas from Deming when he was lecturing in Japan about quality and productivity.
  7. 7.  Deming told the Japanese industry about meeting and exceeding customer satisfaction. Also broadened the definition of customer to include both internal as well as external customers.  “The next process is the customer” became the most significant expression for JIT, because in a pull system it means the proceeding process must always do what the subsequent process says. Otherwise JIT won’t work.  Deming’s PDCA cycle led to Kaizen.
  8. 8. The Toyota Production System ……. Best Quality – Lowest Cost – Shortest lead Time – Best Safety – High Morale People & Teamwork • Selection •Common Goals • Ringi Decision-making • Cross-Trained Leveled Production (Heijunka) Stable & Standardized Process Visual Management Toyota Way Philosophy Just-in-Time Right Part, Right Amount, Right Time • Takt Time Planning • Continuous Flow • Pull System • Quick Changeover • Integrated Logistics Jidoka (In-station Quality) Make Problems Visible • Automatic Stops • Andon • Person-Machine separation • Error-proofing • In-station Quality Control • Solve Root Cause of Problems (5 Why’s) Continuous Improvement Waste Reduction • Genchi Genbutsu • 5 Why’s • Eyes for Waste • Problem Solving
  9. 9.  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: Workers having to stand around waiting for the next processing step, tool, part etc. Or no work because of stock-outs, lot processing delays, equipment downtime, and capacity bottlenecks.  Unnecessary transport: Carrying WIP long distances, creating inefficient transport, or moving parts in and out of storage facility.
  10. 10.  Over-processing or incorrect processing: Taking unneeded steps to process the parts. Inefficient processing due to poor tools and product design, causing unnecessary motion and producing defects. Waste 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. Extra inventory hides problems such as production imbalances, late deliveries from suppliers, defects, equipment downtime, and long set-ups.  Unnecessary movements: Any wasted motion employees have to perform during the course of their work, such as looking for, reaching for, or stacking parts, tools etc. Walking is a waste.
  11. 11.  Defects: Production of defective parts or correction. Repair or rework, scrap, replacement production, and inspection mean wasteful handling, time and efforts.  Unused employee creativity: Losing ideas, skills, improvements, and learning opportunities by not engaging or listening to your employees.
  12. 12. Just-in-Time means PRODUCING: a)Right item b) At right time c) In the right amount
  13. 13.  Mr. Ohno used to say that no problem discovered when stopping the line should wait longer than tomorrow morning to be fixed. Because when making a car every minute we know we will have the same problem again tomorrow. - Fujio Cho, President, Toyota Motor corp.
  14. 14. Competitor’s culture • No matter what Do not shut down the Assembly line. Toyota’s culture • If you are not shutting the assembly line that means you have no problem. All manufacturing plants must have problems. That means you must be hiding your problems. You will also continue to solve your problems and make even better quality products more efficiently.
  15. 15.  Stopping the Process to build in Quality  Quality should be built in.  Jidoka- Equipment endowed with human intelligence to stop itself when it has a problem.  Much more effective and less costly.  Solving quality problems at source saves time and money.  Eliminates waste, productivity soars.
  16. 16.  If the problem is small enough that can be solved in the lead-time between two workstation, 100% quality is achieved without stopping the line.  If the problem is complex, the team leader can conclude that the line should stop.  In TPS, the workstation detects the defects by using countermeasures and error-proofing (poka-yoke).
  17. 17.  Mr. Ohno was passionate about TPS. He said you must clean up everything so you can see problems. He would complain if he could not look and see and tell if there is a problem. - Fujio Cho, President
  18. 18. Sort Clean out rarely used items by red tagging Straighten Organize and label a place for everything Shine Clean it. Sustain Use regular management audits to stay disciplined Standardize Creates rules to sustain the first 3 S’s Eliminate Waste The 5 S’s
  19. 19.  “The factories were so clean you could eat off of the floor”. – Americans reaction to Japanese plants.  “5 S programs”- comprise a series of activities for eliminating wastes that contribute to errors, defects and injuries.  Sort- Sort through items and keep only what is needed while disposing of what is not.  Straighten- “ A place for everything and everything in its place”.  Shine (cleanliness)- The cleaning process often acts as a form of inspection that exposes abnormal and pre-failure conditions that could hurt quality or cause machine failure.  Standardize- Develop systems and procedures to maintain and monitor the firset 3 S’s  Sustain- Maintaining a stabilized workplace is an ongoing process of continuous improvement.
  20. 20.  People are the centre of the house because only through continuous improvement can the operation attain the system stability. People must be trained to see waste and solve the root cause by repeatedly asking the question why.
  21. 21. Growing your leaders rather than purchasing them The Newsmaker of 2002 by The Automative News  Bill Ford (Ford CEO) Robert Lutz (GM Executive VP) Dieter Zetzche (Crysler group President) Carlos Ghosn (Nissan President) Fuijo Cho (Toyota President)
  22. 22. Toyota Leaders view of the TPS
  23. 23. Customer First
  24. 24. The Chief Engineer: Critical Link to Innovation, Leadership and Customer Satisfaction.
  25. 25. The Common Themes of Leadership at Toyota TOYOTA LEADERS Group Facilitator “You are Empowered” Bureaucratic Manager “Follow the Rules” Builder of Learning Organizations “Here is Our Purpose and Direction, I will Guide and Coach” Task Master “Here is what to do and how – Do It!” Bottom-up (Development) Top-Down (Directives) General Management Expertise In-Depth Understanding Of Work
  26. 26. CommonTraits: Focused on Long-term Purpose as a Value-Added Contributor to Society. Never deviated from the Precepts of the Toyota Way DNA and lived and modeled their themselves around this for all to see. Worked their way up doing the Detailed Work and continued to Go and See theGemba. Saw Problems as Opportunities to train and coach their people. The Leaders’ real challenge is having the long-term vision of knowing what to do, the knowledge of how to do it, and the ability to develop people so they can understand and do their job excellently.
  27. 27. • Importance of team work • Co-ordinate the work, motivate and learn together • Suggest innovative ideas, even control through peer pressure • Excellent individual performers are required to make up teams that excel
  28. 28. Team Size Team Member 5 ~ 8 Team Leader 3 ~ 4 Group Leader 5 ~ 8 Assistant Manager 4 - 10 Manager PTMSB Working Group Associate Associate Leader/ Line Keeper Supervisor Executive Head Of Department
  29. 29. Internal Motivation • Maslow’s need hierarchy • Herzberg’s Job enrichment theory External • Taylor’s scientific Management • Behaviour Modification • Goal Setting
  30. 30. • Find Solid Partners and GrowTogether to Mutual Benefit in the Long-Term • Cross-Docking (“Break-Bulk” Facilities) • Partner –Transfreight – Cross-docking needs forToyota: • Achieved JIT deliveries despite great distances in NorthAmerica. • Costs ofTransportation went down considerably. • Saves money on returnable containers. • Transfreight continually improving & reducing costs. • Saving “Sick” SuppliersThroughTPS
  31. 31. Learning Enterprise Enabling System Clear Expectations Stable, Reliable Processes Fair & Honorable Business Relations Next Level Of Improvement Stability SUPPLY CHAIN NEED OF HIERARCHY
  32. 32. Genchi Genbutsu
  33. 33. Deeply understand and report what you see Genchi Genbutsu - Going to the actual place (Gemba) to see the actual situation for understanding
  34. 34. Ohno Circle
  35. 35. See for America, then design for America
  36. 36. Kiichiro Toyoda: “ How can you expect to do your job without getting your hands dirty”
  37. 37. • Toyota’s leaders see the company as a vehicle for adding value to customers, society, the community and its associates. • People are most important asset. • Management on the floor. • Be responsible. All leaders must take responsibility. • This strong philosophies have often separated them from their competitors.
  38. 38. • Visual management is one of the lean techniques designed so that anyone entering a work place, even those who are unfamiliar with the detail of the processes, can very rapidly see what is going on, understand it and see what is under control and what isn’t. Visual management helps you: • Understand and indicate work priorities • See whether performance (usually daily) was met • Identify the flow of work and what is being done • Identify when something is going wrong or not happening • Show what standards of work should be • Provide real time feedback to everyone involved in the whole process
  39. 39. Techniques used in visual management The techniques used to create a visually managed workplace fall into a number of categories: The workplace itself: • Signs • Marked floor areas/hatching • Direction of process flow shown on floor or wall Visual production control • Production status boards • Kanban visual signals Autonomation • The machinery automatically stops when there is a problem and attracts attention Visual performance measurement • Quality charts • Performance charts (dashboard metrics based on KPI’s) • Status of the organisation Visual safety management • Safety warnings • Precaution information
  40. 40.  Today’s standardization ..is the necessary foundation on which tomorrow’s improvement will be based. If you think of “standardization” as the best you know today, but which is to be improved tomorrow- you get somewhere. But if you think of standards as confining , then progress stops.
  41. 41. Takt time(time required to complete one job at the pace of customer demands Toyota’s Standardized Work Inventory on hand the worker needs to have in order to accomplish the standardized work Sequence of doing things or sequence of processes TOYOTA’S Standardized Work
  42. 42.  The slower but consistent tortoise causes less waste and is much more desirable than the speedy hare that races ahead and then stops occasionally to doze. The Toyota Production System can be realized only when all the workers become tortoises. -( Taiichi Ohno, 1988)
  43. 43. -Focuses on what customers want and when they want it. -Unpredictable customer needs -stressing people and equipment -creates piles of inventory, hidden problems and poor quality Build to Order Accumulates order and level the schedule -may able to reduce production lead time -cut inventories - Greater customer satisfaction Toyota production System
  44. 44. Muda Waste Muri Overburden Mura Unevenness The Three M’s of Toyota Production System
  45. 45. Muda • Non value added • Focus of lean manufacturing system- Eliminating Muda Muri • Overburdening people or Equipment • Overburdening people-Results in safety and quality problems • Overburdening Equipment- Breakdowns and defects Mura • Unevenness • Results from irregular production schedule or fluctuating production volume
  46. 46.  Levelling the production both by volume and product mix.  Does not produce according to customer orders  Takes total volume of orders and levels them  Flexibility to make what customer wants and when they want it.  Reduce risk of unsold goods.  Balanced use of labour and machines.  Smoothed demand on upstream processes and plant’s suppliers.
  47. 47. CONCLUSION Best Quality – Lowest Cost – Shortest lead Time – Best Safety – High Morale People & Teamwork • Selection •Common Goals • Ringi Decision-making • Cross-Trained Leveled Production (Heijunka) Stable & Standardized Process Visual Management Toyota Way Philosophy Just-in-Time Right Part, Right Amount, Right Time • Takt Time Planning • Continuous Flow • Pull System • Quick Changeover • Integrated Logistics Jidoka (In-station Quality) Make Problems Visible • Automatic Stops • Andon • Person-Machine separation • Error-proofing • In-station Quality Control • Solve Root Cause of Problems (5 Why’s) Continuous Improvement Waste Reduction • Genchi Genbutsu • 5 Why’s • Eyes for Waste • Problem Solving

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