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The Toyota Production System: High Quality and Low Cost
The Toyota Production System: High Quality and Low Cost
Readings; James Womack, Daniel T. Jones and Daniel Roos, The Machine that Changed the World, 1990, Ch 3 and 4 Kenneth N. McKay, The Evolution of Manufacturing ControlWhat Has Been, What Will Be Working Paper 03 2001 Michael McCoby, Is There a Best Way to Build a Car? HBR Nov-Dec 1997
Consumer Reports
Gains of imports
Roswell U.S. Lee/ Govt John Hall Henry Ford Taiichi Ohno Earnings
Transportation
$5/day Immigrant
Japanese Banks
Q. By what method did these new systems come about? A. Trial and Error
History of the Development of the Toyota Production System ref; Taiichi Ohno
1945 1975
Summary of Assembly Plant Characteristics, Volume Producers, 1989 (Average for Plants in Each Region)
Japanese in Performance: Producvitity (hours/Veh.) Quality (assembly defects/100 vehicles) Layout: Space (sq.ft./vehicle/yr) Size of Repair Area (as % of assembly space) Inventories(days for 8 sample parts) Work Force: % of Work Force in Teams Job Rotation (0 = none, 4 = frequent) Suggestions/Employee Number of Job Classes Training of New Production Workers (hours) Absenteeism Automation: Welding (% of direct steps) Painting(% of direct steps) Assembly(% of direct steps) Japan 16.8 60 Japanese North in American in North America 36.2 97 All Europe America
21.2 65
25.1 82.3
7.8 14.4 2
85 40.7 1.1
Source: IMVP World Assembly Plant Survey, 1989, and J. D. Power Initial Quality Survery, 1989
Cost Vs Defects
Ref. Machine that Changed the World Womack, Jones and Roos
Cost Vs Automation
Ref. Machine that Changed the World Womack, Jones and Roos
J T. Blacks 10 Steps
Ref; JT. Black Factory with a Future 1991
1. Form cells 2. Reduce setup 3. Integrate quality control 4. Integrate preventive maintenance 5. Level and balance 6. Link cells KANBAN 7. Reduce WIP 8. Build vendor programs 9. Automate 10. Computerize
J T. Black 1, 2
1. Form Cells Sequential operations, decouple operator from machine, parts in families, single piece flow within cell 2. Reduce Setup Externalize setup to reduce down-time during changeover, increases flexibility
Toyota Cell, one part is produced for every trip around the cell
TPS Cell
J T. Black
Standardized Fixtures
J T. Black 3, 4
3. Integrate quality control Check part quality at cell, poke-yoke, stop production when parts are bad 4. Integrate preventive maintenance worker maintains machine , runs slower
J T. Black 5, 6
5. Level and balance Produce to Takt time, reduce batch sizes, smooth production flow 6. Link cells- Kanban Create pull system Supermarket System
J T. Black 7, 8
7. Reduce WIP Make system reliable, build in mechanisms to self correct 8. Build Vendor program Propagate low WIP policy to your vendors, reduce vendors, make ontime performance part of expectation
Takt Time
Automobile Assembly Line; Available time = 7.5 hr X 3
shifts = 22.5 hrs or 1350 minutes per day. Demand = 1600 cars per day. Takt Time = 51 sec
month 1
month 2
month 3
10
0
7-Jun 15-Jun 23-Jun 30-Jun 7-Jul 15-Jul
Weeks
24-Jul
31-Jul
7-Aug
15-Aug
24-Aug
31-Aug
Factory B
shipped engines
0
may june
weeks
july
august
Factory C
80%
delivered
60%
engines
40%
20%
0%
Parts
Orders
Push Systems
Order (from centralized decision process) arrives at the front of the system and is produced in batches of size B. Q. How long does it take to get one part out of the system?
1 Time = 0 Time = T1
..
Push Systems
1
Time = 0
3 .. N
Comment; Of course, this part can come from inventory in a much shorter time, but the point is that the push system is not very responsive.
Time = TN
If the process time per part is t at each of N processes, and the batch size is B, it takes time TN = NBt to get one part through the system.
Pull SystemsThe order arrives at the end of the line and is pulled out of the system. WIP between the machines allows quick completion.
Q.How long does it take to pull out one part? A.The time to finish the last opetration t.
See HP Video
HP Video
Dots
Tacks
Tape
Pack
HP Video Results
Push system (6) Space WIP = L Cycle time = W Rework Units WIP Quality Problem Production Rate =L/W 2 Tables 30 3:17 26 Hidden 0.15 Pull (3) 2 Tables 12 1:40 10 Visible 0.12 Pull (1) 1 Table 4 0:19 3 Visible 0.21
Graphical Interpretation
250 200 150 100 50 0 0 2 4 6
Inventory, L Time in System, W
L = W L k1B W k2B
= L / W = k1 / k2
TPS Implementation
Physical part (machine placement, standard work etc) Work practices and people issues Supply-chain part Corporate Strategy (trust, job security)
Barriers to Implementation
Early abandonment Costs (training, commitment, benefits..) History of conflict and distrust Resistance of supervisors Lack of supportive infrastructure
Ken McKay 1, 2
1. Pioneering - sellers market, competition is not by manufacturing, large margins emphasize throughput not efficiency
2. Systemization - firm grows and system gets complex, gross inefficiency becomes apparent, competition begins to make its presence felt. Need for standard operating procedures, demand still high, inventory used to buffer against instabilities.
Ken McKay 3, 4
3. Technology and Process competition is increasing, sales are softening, manufacturing is still in early maturity and competition is limited to firms in similar situation. Product options grow. Mfg focus shifts to efficiency. 4. Internal Efficiency competition cherry pickers enter the market they dont offer all of the options and parts service but focus on the 20% which yields 80% of the revenue stream. Internal plant is put into order, problems are pushed outside to suppliers, best in class, bench marking identifies the silver bullet. Still using inventory to cushion production support variety, and maintain functional features.
Ken McKay- 5, 6
5. Customer Service talk to the customer, identify core competency, outsource, be responsive, reduce lead time, eliminate feature creep, focused factory etc.
6. System Level Reengineering firms have addressed the internal system and factory no more to squeeze out look to improving indirect and overhead, supply chain development.
Toyota Summary
High quality and low cost Relationship to previous systems (see McKay paper), yet new,. in fact revolutionary Many elements
Overall, see The Machine that Changed the World Cells, next time People, see Maccoby Article
Summary .. continued
Autonomation automation with a human touch Worker as problem solver TRUST