Professional Documents
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Toyota Production System (TPS), Just-in-Time (JIT), and Lean Manufacturing Handout
Dr. Ahmad Syamil, CFPIM, CIRM, CSCP http://www.clt.astate.edu/asyamil/ asyamil AT yahoo DOT com
APICS www.apics.org
Old Name: The American Production and Inventory Control Society New Name: The Association for Operations Management Advancing Productivity, Innovation, and Competitive Success. APICS offers four internationally recognized professional certification programs:
1. CPIM: Certified in Production and Inventory Management 2. CFPIM: Certified Fellow in Production and Inventory Management = CPIM + extensive knowledge sharing with others through presenting, teaching, publishing, and other APICS educational activities. 3. CIRM: Certified in Integrated Resource Management 4. Beginning 2006: Certified Supply Chain Professional (CSCP) designation is designed for professionals interested in increasing their knowledge of supply chain management, those currently working in the field of supply chain management (SCM), and for those individuals working with enterprise resources planning (ERP) systems.
Why Toyota?
Why Toyota?
Why Toyota?
Why Toyota?
Sakichi Toyoda, the founder of the Toyota group of companies, started Toyota as a textile machine company.
Kiichiro Toyoda, son of Sakichi and founder of the Toyota automobile business, developed the concept of Just-in-Time in the 1930s. He decreed that Toyota operations would contain no excess inventory and that Toyota would strive to work in partnership with suppliers to level production. Taiichi Ohno, Toyota's chief of production in the postWWII period. He was THE main developer of Toyota Production System (TPS). Dr. Shigeo Shingo: A consultant to Toyota. PS: Shingo Prize is the highest manufacturing excellence award in the U.S. The prize is given both to companies and individuals who contribute to the development of manufacturing excellence.
History
History (cont.)
Toyota Production System (TPS) drew wide attention from the industrial community because Toyota was a profitable car company in Japan during and after the oil embargo in 1970s. Outside Japan, dissemination began in earnest with the creation of the Toyota-General Motors joint venture-NUMMI (New United Motor Manufacturing Inc.) in California in 1984. Widespread recognition of TPS as the model production system grew rapidly with the publication in 1990 of The Machine That Changed the World: The Story of Lean Production, the result of five years of research led by the Massachusetts Institute of Technology. The MIT researchers found that TPS was so much more effective and efficient than traditional, mass production that it represented a completely new paradigm and coined the term lean production to indicate this radically different approach to production. The term was coined by John Krafcik, a research assistant at MIT with the International Motor Vehicle Program in the late 1980s. He then worked for General Motors and now is a Vice President of Hyundai, U.S.
House of Toyota
When the cost goes up, the product selling price is raised to reflect the higher costs and maintain the desired level of profit. Some even argues that the profit added should be large enough to cover potential losses if the product does not sell well.
Toyota accepts neither this formula nor these arguments!
Toyotas philosophy
Selling price Cost = Profit Customers decide the selling price. Profit is what remains after subtracting the cost from it. The main way to increase profit is to reduce cost. Consequently, cost reduction through waste elimination should have the highest priority. Toyotas paradox: Reducing cost (waste), will reduce lead time while increasing quality and customer satisfaction. How? We will discuss it soon.
House of Toyota
Attacks waste
Introductory Quotation
Waste (muda in Japanese) is anything other than the minimum amount of equipment, materials, parts, space, and workers time, which are absolutely essential to add value to the product.
Shoichiro Toyoda Founder, Toyota
1995 Corel Corp.
Continuous Flow
Producing and moving one item at a time (or a small and consistent batch of items) through a series of processing steps as continuously as possible, with each step making just what is requested by the next step.
It is also called the one-piece flow, single-piece flow, and make one, move one.
Suppliers
Traditional U.S. Manufacturing Firm: Push (old style MRP / Material Requirements Planning System) The production of items at times required by a given schedule planned in advance
Work Station 1
WS 2
WS 3
Work Station 1
WS 2
WS 3
Kanban
Japanese word for card
Pronounced kahn-bahn (not can-ban)
May be a card, flag, verbal signal etc. Used often with fixed-size containers
Add or remove containers to change production rate
Triangular Kanban
Part # Part Description Location
Date Triggered
Lot Size
Tool #
Machine #
Kanban
Figure S12.5
Q R
L
Time
L 3. When you reach down to a level of inventory of R, you place your next Q sized order.
Kanban
The function of Kanban
The function of Inventory Reorder Point (ROP)
Kanban System
Single card Move only containers with C (Conveyance)kanban) e.g.: Kawasaki Dual card Move only container with C- kanban Produce only when authorized by P (Production)- kanban e.g.: Toyota
Transparency 17.5
Inventory
Traditional: inventory exists in case problems arise JIT objective: Eliminate inventory JIT requires
Small lot sizes Low setup time Containers for fixed number of parts
Daily Quantity 2
Time
Small lots also increase flexibility to meet customer demands
Large-Lot Approach
A A A A B B B
Time
Photo S12.4
Heijunka = Leveling (Smoothing) Production Schedule using Mixed Model Sequencing = Uniform Plant Loading
800 20 40 800 20 40
Daily Requirements
200 20 10 C Largest integer that divides into all daily requirements evenly is 10 Product Daily Requirements Divided by 10 A 4010 4
B C Mixed-model sequence A-B-A-B-A-B-A-B-C
Transparency 17.7
4010 4 1010 1
Repeat 10 times per day
Cycle Times
Working time per day = 480 minutes Daily requirements: A = 40 units; B = 40 units; C = 10 units The system cycle time = 480/(40+40+10) = 5.33 min/unit Product
A
B C
Requirements
40
40 10
Cycle Time
Transparency 17.8
Unreliable Vendors
Scrap
Capacity Imbalances
Unreliable Vendors
Scrap
Unreliable Vendors
Scrap
Customer orders 10
Setup Cost
Smaller Optimal Lot Size Lot Size
Lot Size
Setup Cost
optimal New optimal lotOriginal size lot size
Lot Size
Setup Components
Internal Setup: consists of setup activities that must be performed while the machine is stopped. External Setup: consists of setup activities that can be carried out while the machine is still operating. It is desirable to: 1. Convert as much internal setup to external setup 2. Improve the setup procedure
Setup Reduction
Setup Reduction:
Standardizing die holder heights reduces the need to exchange fastening bolts
House of Toyota
Jidoka
Toyota Production System (TPS) is supported by two pillars: Just-inTime and Jidoka Jidoka = Autonomation = Automation with human intelligence. Sakichi Toyoda, founder of the Toyota group of companies, invented the concept of Jidoka in the early 20th Century by incorporating a device on his automatic looms that would stop the loom from operating whenever a thread broke. Dr. Shigeo Shingo then developed his idea further. This enabled great improvements in quality and freed people up to do more value creating work than simply monitoring machines for quality (separating peoples work and machines work). Eventually, this simple concept found its way into every machine, every production line, and every Toyota operation.
Jidoka Techniques
Poka-yoke (mistake or error proofing) A form of device for building-in quality at each production process. This device may take many shapes and designs. Typical types of Pokayoke are sensors, proximity switches, stencils, light guards and alignment pins. Simple circuitry is usually used to operate these electrical error proof devices as they should be of low cost and simple design. Goal: Finding defects before they occur = Zero Defects Statistical Quality Control (SQC): Finding defects after they occur Visual management including using Andon Lamp
Exhibit 7.10
Poka-Yoke Example
Kaizen
Change for better = continuous improvement Kaizen workshop or Kaizen event: A group of Kaizen activity, commonly lasting five days, in which a team identifies and implements a significant improvement in a process, e.g., creating a manufacturing cell.
GEMBA
GEMBA" is a Japanese word meaning "real place", where the real action takes place. In business, GEMBA is where the value-adding activities to satisfy the client are carried out. Manufacturing companies have three main activities in relation to creating money: developing (designing), producing and selling products. In a broad sense, GEMBA means the sites of these three major activities. In a narrower context, however, GEMBA means the place where the products are made. The term is often used to stress the that real improvement can only take place when there is a shop-floor focus on direct observation of current conditions where work is done, e.g., not only in the engineering office.
5 Whys analysis as an effective problem-solving technique. It is also used in Six Sigma. Example:
Why is our client, Hinson Corp., unhappy? Because we did not deliver our services when we said we would.
Why were we unable to meet the agreed-upon timeline or schedule for delivery? The job took much longer than we thought it would.
Why did it take so much longer? Because we underestimated the complexity of the job. Why did we underestimate the complexity of the job? Because we made a quick estimate of the time needed to complete it, and did not list the individual stages needed to complete the project. Why didn't we do this? Because we were running behind on other projects. We clearly need to review our time estimation and specification procedures.
5S in the US: Sort, Straighten, Sweep, Standardize, Self Disciple 5S + 1S (Safety) = 6S (Hytrol, etc) 5S + 2S (Safety and Security) = 7 S (Agilent Technology that was part of Hewlett Packard)
5S
5S is simple to begin and gives good benefits. Each individual in an organization is asked to get rid of overburdening items.
Red tag attack: A red tag attack is the strategy of a group of people going through the plant and putting red tags on everything that has not been used within the last 30 days. The items that people feel are necessary to "hold on to" must be justified to their superior, or the item is taken out of the plant!
5S in a Factory
5S in Office
Before 5 S
After 5 S
Standard Work
When manpower, equipment, and materials are used in the most efficient combination, this is called Standard Work. There are three elements to Standard Work:
1) Takt Time
2) Work Sequence 3) Standard Work-in-Process
FG
RM
Quality Check
Safety Precaution
TAKT Time
12.1 min
Cycle Time
23.4 min 2
Crew Size
Manufacturing Cell
Worker 1
Worker 2
Worker 3
Cell 4
Cell 5
Workload balancing
Aims at maximizing operator utilization based on the given takt time. Is the key to adjust JIT lines to demand fluctuations Requires flexible operators
20
VA
VA
NVA
VA
NVA
SM
A visual tool for identifying all activities of the planning, and manufacturing process to identify waste. Provides a tool to visualize what is otherwise usually invisible. The leaders of each product family need to have a primary role in developing the maps for their own area. Develop a current-state map before improvements are made so that the efforts and benefits can be quantified.
Where?
How?
On the shop floor, not from your office. You need the real information, not opinion or old data.
Next page
Finished goods
Data box
Inventory
Push
Shipment
Step 1: Specify Value Define value from the perspective of the final customer. Express value in terms of a specific product, which meets the customer's needs at a specific price and at a specific time. Step 2: Value Stream Mapping. Identify the value stream, the set of all specific actions required to bring a specific product through the three critical management tasks of any business: the problemsolving task, the information management task, and the physical transformation task. Create a map of the Current State and the Future State of the value stream. Identify and categorize waste in the Current State, and eliminate it! Step 3: Create Continuous Flow Make the remaining steps in the value stream flow. Eliminate functional barriers and develop a product-focused organization that dramatically improves lead-time. Step 4: Create Pull Production Let the customer pull products as needed. Step 5: Perfection There is no end to the process of reducing effort, time, space, cost, and mistakes. Return to the first step and begin the next lean transformation, offering a product which is ever more nearly what the customer wants.
Comparison of MRP (Material Requirements Planning), JIT, and TOC (Theory of Constraints)
MRP
Loading of operations Checked by capacity requirements Planning afterward One week or more
JIT
Controlled by kanban system Small as possible
TOC
Controlled by bottleneck operation Variable to exploit constraint Critical for bottleneck and feeder operations Fast Moderate Moderate Meet demand Maximize profits Bottleneck Need and plan
Batch sizes
Importance of data accuracy Speed of scheduled development Flexibility Cost Goals Planning focus Production basis
Critical Slow Lowest Highest Meet demand Have doable plan Master schedule Plan
Unnecessary Very fast Highest Lowest Meet demand Eliminate waste Final assembly schedule Need