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Toyota Motor Manufacturing

Toyota Motor Manufacturing

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Toyota Production system - Seating problem
Toyota Production system - Seating problem

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Published by: muddanap on Jul 06, 2011
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Toyota Motor Manufacturing. U.S.A. Inc.

Case Study
Operations Management
eMLÞ10/eÞCÞ03
llMţ kozhlkode
uaLeť 14ŴMarŴ2011
Information in the case:
ln 1983ţ 1ovoLa MoLor CorporaLlon (1MC) unvelled lLs plan Lo open an $800 mllllon Creenfleld planL ln kenLuckvŦ
ln !ulv 1988ţ 1ovoLa MoLor ManufacLurlnaţ uŦSŦAŦ (1MM) beaan volume producLlon wlLh annual planL capaclLv of
200ţ000 1ovoLa Camrv sedans replaclna Lhe bulk of !apanese lmporLs of Lhe same modelŦ
ln 1992ţ 1MM was expecLed Lo supplv 240ţ000 of Lhe allŴnew Camrvsţ whose sales were up bv more Lhan 20Ʒ slnce Lhe
model chanae ln fall 1991Ŧ
1oyota Þroduct|on 5ystem (1Þ5)
1ovoLa had alwavs sLrlven for ºbeLLer cars for more peopleŦ"
1ÞS almed aL cosL reducLlon bv Lhorouahlv ellmlnaLlna wasLe bv provldlna Lwo auldlna prlnclplesţ ldenLlfvlna whaL was
wasLe ln reallLvŦ
llrsL prlnclpleť !usLŴlnŴ1lme (!l1) producLlon Ŵ Þroduce onlv whaL was neededţ onlv how much was needed ţ and onlv
when lL was neededŦ Anv devlaLlon from Lrue producLlon needs was condemned as wasLeŦ
Second prlnclpleť Þrlnclple of ©fť make anv producLlon problems lnsLanLlv selfŴevldenL and sLop produclna
whenever problems were deLecLedŦ ln oLher wordsţ jlJoko lnslsLed on bulldlna ln quallLv ln Lhe producLlon process and
condemned anv devlaLlon from valueŴaddlLlon as wasLeŦ
1o lmplemenL Lhe 1ÞS prlnclplesţ 1ovoLa emploved a varleLv of LoolsŦ lor !l1 producLlonţ Lhese Lools were used Lo keep
lnformaLlon flow as close Lo Lhe phvslcal flow of parLs as posslbleŦ ÞarLs were Lhus pulled from downsLream based on
acLual usaaeŦ
nformat|on |n the case (ContŦ)ť
1o lmplemenL Lhe 1ÞS prlnclplesţ 1ovoLa emploved a varleLv of LoolsŦ lor !l1 producLlonţ Lhese Lools were used Lo keep
lnformaLlon flow as close Lo Lhe phvslcal flow of parLs as posslbleŦ ÞarLs were Lhus pulled from downsLream based on
acLual usaaeŦ
1he purposes of jlJoko Lools were Lo ald lmmedlaLe problem deLecLlon and faclllLaLe vlsual conLrolŦ A Lvplcal dlscusslon
of a problem would sLarL wlLh ºleL's ao see lL" and Lhen converae on Lhe ºllve Whvs" exerclseŦ 1hls exerclse conslsLed of
asklna a chaln of ºwhv" quesLlons unLll Lhe rooL cause was ldenLlfled and counLermeasures deLermlnedŦ
MeLhodlcal Lhlnklna exLended bevond solvlna problems and enabled people Lo seek kolzeoť chanae for Lhe beLLerŦ
kolzeo was lndlspensable ln pursulna 1ÞS aoals conLlnuouslv and lndeflnlLelvŦ
Assemblv operaLlons were performed alona 333 sLaLlons on a convevor llneţ over flve mlles ln lenaLh and conslsLlna of
several connecLed llne seamenLsť Lhe Lrlm llnesţ chassls llnesţ and flnal assemblv llnesŦ
Lverv sLaLlon on Lhe assemblv llne embodled jlJoko and kolzeo LoolsŦ A sLandardlzed work charL was posLed ad[acenL Lo
each work sLaLlon on Lhe llneţ showlna Lhe cvcle Llme of LhaL sLaLlonţ Lhe sequence of work Lasksţ and Lhe Llmlna Lo
perform Lhem wlLhln one cvcleŦ
lf Lhe Leam member was behlnd aL Lhls vellow llne or found anv oLher problemţ he or she pulled Lhe ooJoo cordť a rope
runnlna alona Lhe assemblv llne over Lhe work areaŦ An ooJoo pull Lurned on a flashlna llahLţ Lrlaaered loud muslcţ and
llL up Lhe work sLaLlon's ºaddress number" on Lhe ooJoo board sLopplna producLlonŦ 1hls ls Lo avold wasLe bv sLopplna
producLlon faulLv carsŦ
1he plannlna process reflecLed !l1 prlnclples ln Lwo ma[or wavsŦ neljooko also svnchronlzed Lhe assemblv llne wlLh Lhe
ulLlmaLe sales of Lhe carsŦ 1he second !l1 prlnclple was reflecLed ln Lhe use of kooboo cardsŦ A kooboo card lncluded a
parL code numberţ lLs baLch slzeţ lLs dellverv ºaddressţ" and oLher relaLed lnformaLlonŦ 1he ÞC deparLmenL monlLored
Lhe clrculaLlon of kooboos closelv boLh Lo deLermlne Lhe approprlaLe kooboo ranae and Lo feed lnformaLlon back Lo
parLs orderlna for even beLLer lnvenLorv conLrolŦ
nformat|on |n the case (ContŦ)ť
ÞracLlce of eljookoť called for evenlna ouL (balanclna) Lhe LoLal order ln Lhe dallv producLlon sequenceŦ 1he eljooko
pracLlce achleved Lwo purposesŦ Spreadlna ouL Lhe demand for parLs as evenlv as posslble relleved suppllers of a surae
of workload and faclllLaLed Lhelr !l1 producLlonŦ
;ua||ty Contro|ť
SeLLlna Louah quallLv sLandardsţ lnspecLlna everv vehlcle aaalnsL Lhoseţ and followlna Lhrouah on Lhe cusLomer's
experlence wlLh shlpped vehlclesŦ Alsoţ provlde lnsLanL feedback Lo dlrecL operaLlons lncludlna flnal assemblvŦ
Cn Lhe lasL sLreLch of Lhe flnal assemblv llneţ CC checked assemblv quallLv before cars wenL off Lo elaboraLe shlpplna
lnspecLlonţ and lL ºreLurned" problemaLlc cars lmmedlaLelv Lo an offŴllne assemblv aroupŦ
1he 5eat Þrob|emť
A Camrv seaL conslsLed of several plecesť Lhe fronL lefL and rlahL assembllesţ Lhe rear seaL bench and backresLsţ and
Lhe rear slde bolsLersŦ
1o CCţ on Lhe one handţ lL was a safeLv lLem because lL had Lo meeL rlaorous sLandards for Lhe car's crash performanceŦ
1MM's sole seaL suppller was kenLuckv lramed SeaL (klS)Ŧ [usLŴlnŴLlmeŦ klS' manlfesL speclfled Lhe sLvle and color of
Lhe seaLţ and Lrlaaered seaL producLlon much llke a kooboo of loL slze oneŦ
1haL 1MM and klS were locaLed near each oLher was colncldenLalţ Lhouah Lhe proxlmlLv beneflLed boLh parLles ln
operaLlna Lhe sequenLlal pull svsLemŦ
1he old model Camrv seaL had Lhree sLvles and four colorsŤ Lhe 1992 Camrv offered onlv Lhree seaL colors buL had flve
sLvlesŦ 1he problem lnLenslfled when 1MM launched Lhe Camrv waaons and became Lhe sole source of Lhese cars for
Lhe flrsL Llme for 1ovoLa worldwldeŦ
nformat|on |n the case (ContŦ)ť
1he waaon models desLlned for norLh Amerlca added elahL seaL varlaLlons lmmedlaLelvţ buL produclna for Lhe world
markeL added conslderablv Lo LhaL numberŦ Waaons desLlned for Lurope added anoLher 10 varlaLlonsţ and on Lhe
horlzon was exporL Lo !apan and Lhe Mlddle LasLţ addlna sLlll anoLher 18 seaL varlaLlonsŦ
1he run raLlo was down Lo a meaaer 83ƷŦ lL had been around 93Ʒ a monLh beforeŦ 1hls 10ŴpolnL drop meanL a shorLfall
of 43 cars per shlfLţ whlch had Lo be made up wlLh overLlmeŦ
1he cars wlLh seaL problems accumulaLlna offŴllne reflecLed 1MM's cholce for handllna occaslonal allLchesŦ
ln over flow parklna area lL ls found LhaL Lhere were 18 vehlcles wlLh varlous seaL problemsŦ Some of Lhe cars were
Lhere slnce four davsţ a ma[or surprlse because cars were supposed Lo leave Lhls area wlLh reLroflL seaL assemblles
wlLhln Lhe same or Lhe followlna shlfLŦ
klS responded wlLh a speclal dellverv of replacemenLs Lwlce a dav for faulLv seaLsŦ Poweverţ klS someLlmes senL Lhe
wrona seaL assemblles LhaL dld noL maLch anv of Lhe cars walLlna for reworkŦ
lor 8ear slde bolsLer lnsLallaLlonţ a hook proLrudlna from Lhe back of LhaL parL was Lo be snapped lnLo Lhe ºeve" of Lhe
bodvţ buL Lhe hook someLlmes broke offŦ An enalneerlna chanae requesL had flled several monLhs aao buL kepL
pendlna as lL cosLs $30ţ000 Lo klSŦ
;uest|ons to be Answered
;ť WhaL does lL mean Lo lmplemenL !l1 and jlJoko prlnclples ln Lhls slLuaLlon? More broadlvţ
wheLher seaL defecLs are handled correcLlv on Lhe llne?
1he offŴllne assemblv rouLlne for handllna defecLlve seaLs devlaLes from Lwo auldlna prlnclples of
1MM Ŷ 1 and |kodaŦ
llrsLţ hlah level of defecLlve car lnvenLorv does noL applv Lo !usLŴlnŴ1lme (!l1) Þrlnclple as Lhere
were 18 vehlcles lvlna ln overŴflow parklna area walLlna for aLLenLlonŦ lL ls consldered a devlaLlon
of Lhe Lrue producLlonţ whlch ls wasLe alven 1ovoLa ÞroducLlon svsLem prlnclplesŦ
Secondţ Lhe currenL appllcaLlon ls aaalnsL !lkoda prlnclpleţ whlch lnslsLs on bulldlna quallLv ln Lhe
producLlon process and on sLopplna producLlon wherever a problem ls deLecLedŦ Alsoţ Lwo sLrona
aLLlLudes creaLed wlLhln oraanlzaLlon Ŵ sLlck Lo Lhe facLs and aeL down Lo Lhe rooL cause of Lhe
problem uslna ºf|ve why's" are lanoredŦ ConLrarv Lo Lhese prlnclplesţ Lhe 1MM planL currenLlv
Lrles Lo handle defecLlve seaLs wlLh offŴllne operaLlonsŦ
Alsoţ Lhe decreased planL run raLlos reduced Lhe producLlon and forced over Llme Lo recover Lhe
producLlon lossŦ 1hls mav noL be conLlnued for lona runŦ
C2ť ls Lhe currenL rouLlne for handllna seaL defecL cars reallv a lealLlmaLe excepLlon Lo 1ÞSţ or
could lL be a danaerous devlaLlon from 1ÞS?
1MM ls devlaLlna from Lhe sLandard assemblv llne prlnclples of !lkoda ln an aLLempL Lo avold
expenses lncurred from Lhe sLopplna of Lhe producLlon llne for seaL quallLv defecLsŦ 1hls devlaLlon
has conLrlbuLed Lo Lhe lnablllLv Lo ldenLlfv Lhe rooL cause of Lhe problemţ whlch has led Lo
decreased run raLlos on Lhe llne and an excess of defecLlve auLomoblles ln Lhe overflow loL for
mulLlple davsŦ 1hls mav noL be danaerous devlaLlon from 1ÞSţ lf numbers of seaL defecLs are
reducedŦ 1MM can work wlLh 1lS Lo lmprove Lhelr quallLv process Lo reduce Lhe number of
defecLlve seaLs supplled even Lhouah 1lS has 100Ʒ verlflcaLlon of Lhe seaLs before dellvervŦ
Alsoţ 1MM can Lhlnk of anoLher suppller for Lhe seaL assemblv as 1lS mav noL be capable of
handllna so manv varlaLlons of seaL assemblv for Camrv new model and Camrv Waaon models for
dlfferenL realonal markeLs across Lhe worldŦ
lf Lhls problem ls noL flxed qulcklvţ an lncreased amounL of wasLe wlll conLlnue Lo be lncurred and
Lhe cusLomer value wlll be LhreaLened whlch can also be lnLerpreLed as danaerous devlaLlon Lo
1ÞSŦ
***Lnd**

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