Lean Approach – The Toyota Production System

3 Vital Elements:
A time-based strategy
The Toyota Production System Standard Operations

Cost .The New Equation Profit SALES Traditional View Sales Price Mfg. Cost Sales Price Principle of Cost Plus: Sales Price = Cost + Profit Profit New View Sales Price Mfg. Cost Sales Price Principle of Cost Reduction: Profit = Sales Price .

. …the single best indicator of competitiveness” On a sign seen at Pella Corp..“How well we use time is..

Time-Based Strategy Model Time Sales Define Produce Service (Customers) Business Resources Sales Define Produce Customer Service Business Resources Production Lead Time .

Cost and Time FG OP 3 WIP Traditional Manufacturing (Batch & Queue) OP 2 OP 1 RM WIP Total Cost Time Time-Based Manufacturing OP 3 O P 1 OP 2 FG RM Total Cost Time Total costs decrease with lead time reduction! .

Typical vs. Preferred Approach 5 5 5 % % of of Lead Lead Time Time 10 15 20 25 30 35 40 % 45 of50 55 60 65 70 75 80 85 90 95 100 Lead 10 15 20 25 30 35 40 45 50 55 Time 60 65 70 75 80 85 90 95 100 10 15 20 25 30 35 40 45 50 55 VA VA VA NVA NVA NVA 60 65 70 75 80 85 90 95 100 Typical ApproachReductions Typical Approach Towards Typical Approach VA VA VA Typical Approach NVA NVA NVA Preferred Approach Towards Reductions Preferred Approach Preferred Approach VA VA VA NVA NVA NVA Preferred Approach .

Types of Waste  Overproduction  Defects  Unnecessary inventory  Inappropriate processing  Excessive transportation  Waiting  Unnecessary motion .

Waste Causes  Facility layout  Excessive setup times  Incapable process  Poor preventive maintenance  Uncontrolled work method  Lack of training  Boredom  Production planning/scheduling  Lack of workplace organization  Lack of supplier quality and reliability  Lack of concern (accountability) .

TPS (Toyota Production System) J I T J I D O K A Production Smoothing 5S Work Environment .

JIT Principles  Pace to “Takt” time  One piece flow operations  Incorporate “pull” systems .

Takt Time  The word “Takt” is of German origin having its meaning most closely associated with musical rhythm  Like a heartbeat it should not be arrhythmic  Must have a couple of known paces. but these paces should not change every day .

then 445/800 = .Takt Time Calculation Available time/Demand = Takt Time Example: 8 hour day .55 minutes or one unit every 33 seconds .2 (10) -minute breaks – (15) minute clean up period = 445 minutes available If the customer demand in a peak season averages 800 units per day.55 We need one unit every .

Flow Production Batch Flow 1-Piece Flow .Batch vs.

JIT Production Characteristics  Machines in the order of processes  Small and inexpensive equipment  “U”-shaped. counterclockwise work flow  Multi-process (multi-tasking) workers  Ergonomically correct operations .

Jidoka Principles  Separation of Machine and Operator  Stop the Line Authority  Mistake Proofing or “Poka Yoke” .

“Stop the Line” Authority .

Poke Yoke .

.Production Smoothing Is. Customer Demand Average Daily Demand = Target Production Quantity Time Adapting production to variable demand: ..

Model Mix Monthly Schedule (3200 units) Model “A” 1600 units 5 10 Model “B” 800 units Day 15 Model “C” 800 units 20 80 Daily Schedule (160 units) A 80 A 80 A 80 A 40 40 B C 40 40 B C 40 40 B C 40 40 B C 1 2 3 20 Day .

Production Leveling Benefits Maintains a consistent. high quality product Minimizes finished goods inventory  Reduces the requirements for capital investment  Reduces costs due to rework and scrap  Ensures on-time delivery .

Sign up to vote on this title
UsefulNot useful