3. Genealogy of Toyota Production
System
• Toyoda Spinning and Weaving: 1932 – 1942
• Toyota Motor Company : 1943
• Two pillars of Toyota Production System
• Idea of Autonomation: Auto-activated Loom
• The habit of Watching
4. Product Importance
• Usage of proper equipments & producing
cheaply
• Spending money on good machines
• Learn to use the machines correctly
• The Japanese-Style Production Technique
5. American production system V/s
Japanese production
• Mass production system • Small quantity
• Raw materials carried production of different
along conveyor belts variety
• Assembly line moves at • Movement of both
a fixed speed labor and machines
• Warehousing of parts eliminating wastes
• Complete elimination of
Warehouse
7. Evolution of TPS
• Asking WHY five times
• Concept of Waste
• Analysis of Waste
• Standard Work sheet preparation
• Evolution of Kanban
8. Why should we ask why ?
• Why did the machine stop?
– There was an overload and the fuse blew
• Why was there an overload?
– The bearing was not sufficiently lubricated
• Why was it not lubricated sufficiently?
– The lubrication pump was not pumping sufficiently
• Why was it not pumping sufficiently?
– The shaft of the pump was worn and rattling
• Why was the shaft worn out?
– There was no strainer attached and the metal scrap got in
9. Waste –Concept and analysis
• Present Capacity =Work + Waste
• There are seven basic categories of Waste
10. Writing the work sheet
• Cannot be done theoretically
• One must have knowledge of ground level
activities
• Proper design of work procedure is critical
• Work must be standardised
11. KANBAN
• Tool used to operate the TPS
• Inspiration from American Supermarkets
• Basic function is to carry information
• 3 Types of info:-
1) Pickup information
2) Transfer information
3) Production information
12. • Functions • Rules of use
• Provides Pickup or transport • Later process picks up No of
information items indicated by Kanban
• Provides production • Earlier process produces
information items in Indicated
• Prevents overproduction and Qty+Sequence
excessive transport
• No items are made without
• Serves as a work order
Kanban
attached to goods
• Identifies process making
• Always attach Kanban to
defects thus preventing goods
defective products • Defective products are not
• Reveals existing problems and sent on to next process
maintains inventory control • Reducing the No of Kanban
increases their sensitivity
13. Establishing the Flow
• Requirement as basis for Kanban
implementation
• Production Levelling
• Market diversification
14. Challenges to production
Levelling
• Originally conceived to produce small
quantities of many types of products
• Must lower the Peaks and valleys in
production system
• Places a huge demand on the Die-press
Section
• Thus for each different part the die would
have to change
15. Results of Production Levelling
• Result was from 2-3 hours in the 40s the
Change and setup of dies is now only a few
minutes (<3 min )
16. Further Developments
• Automatic nervous system in business
organisation
• Computer: only a source of information
• Production Schedule and Planning
– Number of cars to be produced
– Monthly, Weekly Schedules
• Adjusting to production schedule when actual
production takes place
17. • Economy at Toyota means Manpower reduction
and cost reduction
• Reduction also needs to be carefully studied
– E.g. Installing electrical control to replace a worker
• The vicious circle of waste
18. The vicious circle of waste
Increased
Unnecessary
Many Workers Power &
Work
Material Use
Excess
Inventory
Shortages Warehouse
Add Workers
Hire more
for Repairs &
Workers
Maintinance
Workers
Carrying
Inventory
Carts
Managemrnt
19. Managing Time, Machine &
Labor
• Appropriate tact time should be determined
• Operating and Operable rates
• Relationship between Production Quantity
and Number of Workers
– E.g. 10 workers 100 pieces
With improvements 120 pieces
Demand decreases
How to tackle the problem?
20. The Number game
• Forecasting the exact number of quantity
required
• To avoid over production it is necessary that
– Production Quantity = Required Number
• Car dealers across send their orders daily to
Toyota Automobile Sales Company at Nagoya
• Classification of Orders
• Estimation of Quantity
21. Misconception about
Equipments
• High Performance Machines
• High-productive machine and High-speed
machines are not always the same
• Life of Machines should be depending upon its
operable rate
• Replacement of Machine should be the last
option
22. “Worker Saving”
• Toyota uses term “worker saving” instead of
“labor saving”
• Labor saving means using equipments such as
lift, bulldozer, etc… which is directly connected
to reducing the man power
• If worker is replaced simply to make the work
easy then it may result costly to install an
equipment
23. The Ford System
• Mass production system
• Raw materials carried along conveyor belts
• Assembly line moves at a fixed speed
• Warehousing of parts