Toyota Production System

and Lean Manufacturing

D. Jorge Leon
Texas A&M University

TOYOTA PRODUCTION SYSTEM

The Toyota Production System was adopted by

many Japanese companies in the aftermath of the
1973 oil shock

“Waste” Elimination Philosophy:

“.. Above all, one of our most important purposes was increased
productivity and reduced cost. To achieve this purpose, we put our
emphasis on the notion of eliminating all kinds of unnecessary
functions in the factories. Our approach has been to investigate one by
one the causes of various "unnecessaries" in manufacturing operations
and to devise methods for their solution, often by trial and error ...”
Taiicho Ohno, Former Vice President, Toyota Motor Corp., Former President, Japan Industrial Management
Association; Former Chairman, Toyoda Spinning and Weaving Co., Ltd.

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 PURPOSES OF JIT
Primary Purpose:
Profit through cost reduction (or improvement of
Productivity)
This is attained through WASTE elimination.

Other important purposes:

Quantity control:
JIT, Kanban & Autonomation (visual control system)
Quality control:
Autonomation, improvement by small groups, functional
management
Respect for humanity :
Flexible work force (adapt to demand changes), capitalize
workers ideas.

TYPES OF WASTE

Excessive production resources (primary waste):

excessive workforce
excessive facilities
excessive inventories
unnecessary capital investment

Overproduction (secondary waste - the WORST waste):

leads to

Excessive inventories (tertiary waste):

extra jobs make overproduction invisible.
adds losses in opportunity cost

lead to

Unnecessary capital investment (fourth waste):

adds facility depreciations and overhead cost

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 TO ACHIEVE THESE PUPOSES

7 Wastes Elimination
Just-In-Time (JIT) Production
Kanban System
Production Smoothing
5S
Setup Time Reduction
Machine Layout & Multi-function Worker
Autonomation (Visual Management)

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Identification and Elimination of Waste

Philosophy
• Identification and elimination of waste is the central theme of a
lean manufacturing production system
• Lean manufacturing is a dynamic and constantly improving
process dependent upon understanding and involvement by all
employees
• Successful implementation requires that all employees must be
trained to identify and eliminate waste from their work
• Waste exists in all work and at all levels in
the organization

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Identification and Elimination of Waste

Philosophy
Effectiveness is the result of the integration of:
- Man
- Method
- Material
- Machine
At the worksite

• Waste exists in all work and at all levels in the organization

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Seven Types of Waste

Over-production

Wait time

Transportation

Processing

Inventory

Motion

Defects

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Over-production Waste
Definition
Producing more than needed
Producing faster than needed

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Over-production Waste
Characteristics:
• Inventory Stockpiles
• Extra equipment/oversized equipment
• Unbalanced Material Flow
• Extra Part Storage racks
• Extra Manpower
• Batch Processing
• Complex Inventory Management
• Excessive Capacity/Investment
• Additional Floor Space/Outside Storage
• Hidden Problems
• Excessive Obsolescence
• Large Lot Sizes
• Building Ahead

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Over-production Waste
Causes:
• Incapable Processes
• Just in Case Reward System
• Lack of Communication
• Local Optimization
• Automation in the Wrong Places
• Cost Accounting Practices
• Low Uptimes
• Lack of Stable/Consitent Schedules

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Waiting Time Waste

Definition
Idle Time That is Produced When Two Dependant Variables are
not Fully Synchronized.
• Man Wait Time
• Machine Wait Time

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Waiting Time Waste

Characteristics:
• Man Waiting for Machine
• Machine/Materials Waiting for Man
• Unbalanced Operations (Work)
• Lack of Operator Concern for Equipment Breakdowns
• Unplanned Equipment Downtime

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Waiting Time Waste

Causes:
• Inconsistent Work Methods
• Long Machine Change Over Time
• Low Man/Machine Effectiveness
• Lack of Proper Equipment/Materials

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Transportation Waste
Definition
Any Material Movement That Does Not Directly Support a Lean
Manufacturing System

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Transportation Waste
Characteristics:
• Extra carts, fork lifts, dollies
• Multiple Storage Locations
• Extra Material Racks
• Complex Inventory Management
• Extra Facility Space
• Incorrect Inventory Counts
• Damaged Material

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Transportation Waste
Causes:
• Large Lot Processing
• Unleveled Schedules
• Lack of 5 S’s
• Lack of Visual Controls
• Improper Facility Layout
• Large Buffers and In Process Kanbans

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Processing Waste
Definition
Effort Which Adds No Value To a Product or Service.
Enhancements which are Transparent to The Customers or
Work Which Could Be Combined with Another Process.

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Processing Waste
Characteristics:
• Process Bottlenecks
• Lack of Clear Customer Specifications
• Endless Refinement
• Redundant Approvals
• Extra Copies/Excessive Information

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
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Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Processing Waste
Causes:
• Engineering Changes Without Processing Changes
• Decision Making at Inappropriate Levels
• Inefficient Policies and Procedures
• Lack of Customer Input Concerning Requirements

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
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Manufcaturing, Supplier
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Copy, 1999.
1999.

Inventory Waste
Definition
Any Supply in Excess of Process Requirements Necessary to
Produce Goods or Services Just in Time.

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Inventory Waste
Characteristics:
• Extra Space on Receiving Docks
• Material Between Processes
• Stagnated Material Flow
• LIFO instead of FIFO
• Extensive Rework When Problems Surface
• Long Lead Time for Engineering Changes
• Additional Material Handling Resources (Men, Equipment,
Racks, Storage Space)

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Inventory Waste
Causes:
• Incapable Processes
• Uncontrolled Bottleneck Processes
• Incapable Suppliers
• Long Change Over Times
• Management Decisions
• Local Optimization
Inventory Level
• Inaccurate Forcasting Systems

Over
Production

Wait Time
Process Defects

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Motion Waste
Definition
Any Movement of People Which Does Not Contribute Added
Value To The Product or Service

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Motion Waste
Characteristics:
• Looking for Tools
• Excessive Reaching or Bending
• Material Too Far Apart (Walk Time)
• Equipment for Moving Parts
• Extra “Busy” Movements While Waiting

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
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Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Motion Waste
Causes:
• Equipment, Office & Plant Layout
• Lack of 5 S’s
• Lack of Visual Controls
• Inconsistent Work Methods (Standardized Work)
• Large Batch Sizes

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Rework or Correction Waste

Definition
Repair of a Product or Service To Fulfill Customer requirements

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Rework or Correction Waste

Characteristics:
• Extra Floor Space/Tools/Equipment
• Extra Manpower To Inspect/Rework/Repair
• Stockpiling Inventory
• Complex Material Flow
• Questionable Quality
• Missed Shipments/Deliveries
• Lower Profits Due To Scrap
• Reactive Organization

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Rework or Correction Waste

Causes:
• Incapable Processes
• Excessive Variation
• Incapable Suppliers
• Management Decisions
• Insufficient Training
• Inadequate Tools/Equipment
• Poor Layouts/Unnecessary Handling
• High Inventory Levels

77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Seven Types of Waste

Over-production

Wait time

Transportation

Processing

Inventory

Motion

Defects

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 77 Wastes,
Wastes, Applied
Applied Material’s,
Material’s, Lean
Lean Manufcaturing,
Manufcaturing, Supplier
Supplier Copy,
Copy, 1999.
1999.

Seven Types of Waste

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