Literature Review

Toyota Production System

Lean Manufacturing

Just In Time

Just in Time (JIT) production is a manufacturing philosophy which eliminates waste associated
with time, labour, and storage of space. Basically the concept is that the company produces only
what is needed, when it is needed and in the quantity that is needed. The company produces only
what the customer requests, to actual orders, not to forecast. JIT can also be defined as producing
the necessary units, with the required quality, in the necessary quantities, at the last safe moment.
It means that company can manage with their own resources and allocate them very easily.

Jidoka

Jidoka means, in the production context, not allowing defective parts to go from one work
station to the next. It specifically refers to machines or the production line itself being able to
stop automatically in abnormal conditions (for example, when a machine breaks down or when
defective parts are produced). This Autonomation (as it is also called) allows machines to run
autonomously, as they will stop when a problem occurs. Ultimately, it is about transferring
human (or better) intelligence to machines. Jidoka is also used when individual people encounter
a problem at their work station. They are responsible for correcting the problem - if they cannot,
they should stop the line rather than let the defective part do.

Kaizen

Kaizen Event include the:

• 5-S Process

1. Sort (remove unnecessary items)

2. Straighten (organize)
3. Scrub (clean everything)
4. Standardize (standard routine to sort, straighten and scrub)
5. Spread (expand the process to other areas)

Pareto Chart

A Pareto chart provides facts needed for setting priorities. It organizes and displays information
to show the relative importance of various problems or causes of problems. It is essentially a
special form of a vertical bar chart that puts items in order (from the highest to the lowest)
relative to some measurable effect of interest: frequency, cost, time. The chart is based on the
Pareto principle, which states that when several factors affect a situation, a few factors will
account for most of the impact. The Pareto principle describes a phenomenon in which 80
percent of variation observed in everyday processes can be explained by a mere 20 percent of the
causes of that variation.

Ishikawa Diagram or Cause and Effect diagram

A Cause-and-Effect Diagram is a tool that helps identify, sort, and display possible causes of a
specific problem or quality characteristic. It graphically illustrates the relationship between a
given outcome and all the factors that influence the outcome.
What is simulation?

A simulation of a system is the operation of a model of the system. The model can be
reconfigured and experimented with. It is used where usually it is impossible, too expensive or
impractical to do in the system it represents.

How to develop a simulation model?

1. Identify the problem.

2. Formulate the problem.
3. Collect and process real system data.
4. Formulate and develop a model.
5. Validate the model.
6. Document model for future use.
7. Select appropriate experimental design.
8. Establish experimental conditions for runs.
9. Perform simulation runs.
10. Interpret and present results.
11. Recommend further course of action.

Benefit of simulation, modelling and analysis:

 Obtain a better understanding of the system by developing a mathematical model of a

system and observing the system's operation in detail over long periods of time.
 Test the system for other possibilities.
 Can observe effects which may occur over long period of time.
 Study the effects without disrupting the real system and significantly reduces the risk of
experimenting with the real system.
 Experiment with new or unknown situations about which only weak information is
available.
 Identify the "driving" variables and the inter-relationships among them.
 Identify bottlenecks in the flow of operations.
 Develop well designed and robust systems and reduce system development time.