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.

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

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)

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, Lean Lean Manufcaturing, Manufcaturing, Supplier Supplier Copy, Copy, 1999. 1999.

Seven Types of Waste

Over-production Wait time Transportation Processing Inventory Motion Defects

7 7 Wastes, Wastes, Applied Applied Materials, Materials, Lean Lean Manufcaturing, Manufcaturing, Supplier Supplier Copy, Copy, 1999. 1999.

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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, Lean Lean Manufcaturing, Manufcaturing, Supplier Supplier Copy, Copy, 1999. 1999.

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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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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7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, Lean Lean Manufcaturing, 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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7 7 Wastes, Wastes, Applied Applied Materials, Materials, Lean Lean Manufcaturing, Manufcaturing, Supplier Supplier Copy, Copy, 1999. 1999.

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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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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7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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 Inaccurate Forcasting Systems
Over Production Wait Time Process Defects

Inventory Level

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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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7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, Lean Lean Manufcaturing, Manufcaturing, Supplier Supplier Copy, Copy, 1999. 1999.

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

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7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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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7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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

7 7 Wastes, Wastes, Applied Applied Materials, Materials, 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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Seven Types of Waste

7 7 Wastes, Wastes, Applied Applied Materials, Materials, Lean Lean Manufcaturing, Manufcaturing, Supplier Supplier Copy, Copy, 1999. 1999.

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