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A Case Study - Toyota Production System
A Case Study - Toyota Production System
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 Control-
What Has Been, What Will Be” Working Paper 03 –2001
Michael McCoby, “Is There a Best Way to Build a Car?”
HBR Nov-Dec 1997
Domestic Cars 431,496 481,318 35.3 37.3 -2.6 4,594,203 4,865,569 -5.6
Import Cars 170,554 158,897 13.9 12.3 16.7 1,708,780 1,566,286 9.1
Total Cars 602,050 640,215 49.2 49.7 2.2 6,302,983 6,431,855 -2.0
Domestic Light Trucks 545,865 573,329 44.6 44.5 3.5 5,769,260 5,621,805 2.6
Import Light Trucks 75,999 75,575 6.2 5.9 9.3 798,656 711,178 12.3
Total Light Trucks 621,864 648,904 50.8 50.3 4.2 6,567,916 6,332,983 3.7
Domestic Light Vehicles 977,361 1,054,647 79.9 81.8 0.7 10,363,463 10,487,374 -1.2
Import Light Vehicles 246,553 234,472 20.1 18.2 14.3 2,507,436 2,277,464 10.1
Total Light Vehicles 1,223,914 1,289,119 100.0 100.0 3.2 12,870,899 12,764,838 0.8
Layout:
Space (sq.ft./vehicle/yr) 5.7 9.1 7.8 7.8
Size of Repair Area (as %
of assembly space) 4.1 4.9 12.9 14.4
Inventories(days for 8
sample parts) 0.2 1.6 2.9 2
Work Force:
% of Work Force in Teams 69.3 71.3 17.3 0.6
Job Rotation (0 = none,
4 = frequent) 3 2.7 0.9 1.9
Suggestions/Employee 61.6 1.4 0.4 0.4
Number of Job Classes 11.9 8.7 67.1 14.8
Training of New Production
Workers (hours) 380.3 370 46.4 173.3
Absenteeism 5 4.8 11.7 12.1
Automation:
Welding (% of direct steps) 86.2 85 76.2 76.6
Painting(% of direct steps) 54.6 40.7 33.6 38.2
Assembly(% of direct steps) 1.7 1.1 1.2 3.1
Source: IMVP World Assembly Plant Survey, 1989, and J. D. Power Initial Quality Survery, 1989
2.810 T.G.Gutowski 10/29/01 10
Cost Vs Defects
Ref. “Machine that Changed the World” Womack, Jones and Roos
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
resolving problems
quality predictable output delay reduction
Lower level actions
2.810 T.G.Gutowski 10/29/01 20
J T. Black –1, 2
1. Form Cells 2. Reduce Setup
Sequential Externalize setup to
operations, reduce down-time
decouple operator during changeover,
from machine, increases flexibility
parts in families,
single piece flow
within cell
resolving problems
quality predictable output delay reduction
Lower level actions
2.810 T.G.Gutowski 10/29/01 27
Example from Cochran –
Minimize production disruptions
FR-P1
Minimize production disruptions
DP-P1
Predictable production resources (people, equipment, info)
1. Takt Time
2. Pull Systems
Available Time
Takt Time
Product Demand
Calculate Takt Time per month, day,
year etc. Available time includes all
shifts, and excludes all non-
productive time (e.g. lunch, clean-up
etc). Product demand includes over-
production for low yields etc.
2.810 T.G.Gutowski 10/29/01 31
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
12
month 1 month 2 month 3
10
8
engines shipped per week
0
7 -Ju n 15 -Jun 23 -Jun 30 -Jun 7-Jul 1 5-Jul 24 -Jul 31 -Jul 7-Au g 15-Aug 24 -Au g 31-Aug
Weeks
5
engines shipped
0
may jun e july aug u st
weeks
100%
80%
late
late
60%
engines delivered
on
time
40%
on
time
20% on
time
0%
A B C
1 2 3 4
Parts Orders
Time = 0
Time = 1
Time = 2
Time = 3
WIP 20 12 4
Rework Units 26 10 3
WIP = L 20 12 4
6X =24 3X =12 1X =4
CycleTime = W 3:17 1:40 19 sec (say 20)
6t(3:20 or 2:00) 3t(1:40 or 40) 1t (50 or 20)
Rework Units 26 10 3
~WIP
Quality prob. hidden visible visible
Work Teams
Gain Sharing
Flexible Job Assignments
Employment Security
Improved Communications
Early abandonment
Costs
History of conflict and distrust
Resistance of supervisors
Lack of supportive infrastructure