2. 2
Goal’s of CorporationGoal’s of CorporationGoal’s of CorporationGoal’s of Corporation
Toyota production system BasicToyota production system BasicToyota production system BasicToyota production system Basic
Toyota's Quality PhilosophyToyota's Quality PhilosophyToyota's Quality PhilosophyToyota's Quality Philosophy
6. 6
Standards to Choose a
Car
Standards to Choose a
Car
Quality is First Priority
The customer doesn’t even
have an interest if the
quality of the car is bad.
7. 7
What Could Happen to the
Company…?
What Could Happen to the
Company…?
If We Sell Cars with Bad Quality,
We Lose Customer’s ConfidenceWe Lose Customer’s Confidence
Decrease in Sales results Decrease in
Profit
No Profit
What Could Happen to Company?
9. 9
Goal’s of CorporationGoal’s of CorporationGoal’s of CorporationGoal’s of Corporation
Toyota production system BasicToyota production system BasicToyota production system BasicToyota production system Basic
Toyota's Quality PhilosophyToyota's Quality PhilosophyToyota's Quality PhilosophyToyota's Quality Philosophy
10. 10
The Goals of CorporationsThe Goals of Corporations
Carrying Out a Social
Mission
Pursuing Profits
Sustaining Permanently
Offer quality
products
reasonably at
the right time
Business
management is
a prerequisite
Improve
employee’s
living
11. 11
How to SecureHow to Secure
ProfitProfit
Profit = (Retail Price – Cost) X Sales
How can we increase profit?
Profits
Costs
(Retail Price)
×100
Costs
(Retail Price)
Profits
×100
Raise retail prices
Profit = (Retail Price – Cost) X Sales
Profits
Costs
(Retail Price)
×150
Boost sales
Profit = (Retail Price – Cost) X Sales
Profits
(Retail Price)
×100
Reduce costs
Costs
Profit = (Retail Price – Cost) X Sales
12. 12
Ways to increase profit
(1) Raise retail prices (2) Boost sales
(3) Reduce costs
That car is less
expensive
Cars won’t sell Competitors also make
efforts to increase sales
volume
Profit may vary even if same number of
cars is sold for same price
How to Secure ProfitHow to Secure Profit
13. 13
we don’t prefer the cost basis of which retail prices
are set by adding profits to costs taken.
Retail Price andRetail Price and
CostsCosts
Retail Price Cost Profit
Competitor 100 96 ?
Our Company 100 92 ?
44
88
14. 14
Components ofComponents of
CostCost
Components of cost
Material Cost
Energy Cost
Labor Cost
Depreciation
Cost
Maintenance
Cost
Others
Material Cost Labor CostEnergy Cost
These prices are rising each year
Competitors also face same conditions
Competitor A Competitor B
TMC
Competitor C
15. 15
$
$$
$
$
$
Even using the same materials, the same amount of
powers, the same degree of payments, some
companies gain profits but others not. Why does the
difference occur?
16. 16
There are Big Differences in How to ManufactureThere are Big Differences in How to Manufacture
Regular Manufacturing Way
Toyota Manufacturing Way
Raw
Material
Finished
Parts
Personnel:1/2
Stocks: less than1/4
Lead Time ?
Mass production
1 day to 1 month stocks
Produce one at a time, matching pull speed of next process
Raw
Material
Finished
Parts
17. 17
Cost Changes By the Way toCost Changes By the Way to
ManufactureManufacture
Others
Maintenance
Cost
Depreciation
Cost
Energy
Cost
Labor CostMaterial
Cost
Reduce Cost
Competitor
Our
Company
Cost that increases and decreases by how to manufacture
18. 18
SummarSummar
yy
1. Sustaining corporation needs to secure profits.
2. Cost reduction is the most important to ensure profits.
3. Today the environment where we operate is really tight.
Overcoming the current situation requires tireless efforts.
4. Unit price of material, equipments & purchased parts
is almost the same for each company. It is the
manufacturing method that changes cost of products.
19. 19
4. Creation of flexible & strong organized
workplace.
The Aims of Toyota ProductionThe Aims of Toyota Production
SystemSystem
Reducing Cost by Thorough Elimination of Muda
To achieve it…
1. Producing only salable products.
2. Making higher-quality cars
3. Making more reasonable priced cars
20. 20
Goal’s of CorporationGoal’s of CorporationGoal’s of CorporationGoal’s of Corporation
Toyota production system BasicToyota production system BasicToyota production system BasicToyota production system Basic
Toyota's Quality PhilosophyToyota's Quality PhilosophyToyota's Quality PhilosophyToyota's Quality Philosophy
24. 24
Just-in-timeJust-in-time
1.What is the just-in-time?1.What is the just-in-time?
What is Necessary
When it is necessary
In the amount Necessary
The selling thing
When it is selling
The amount of sell.
To make it from the cost
proportional to production
"Leveling is a major prerequisite to
achieve JIT. "
25. 25
How To Establish Just In Time
1.Tact time
2.Continuous Flow processing
3.Pull System
To Establish JIT through out manufacturing
cycle, need to apply following Thee principles
26. 26
Tact TimeTact Time
Production quantity per dayProduction quantity per day
333 cars a day333 cars a day
How many seconds per carHow many seconds per car
do we need?do we need?
1 car in every 81 sec.1 car in every 81 sec.
ExampleExample
Takt TimeTakt Time
Orders from CustomersOrders from Customers
6,660 cars a month
Production quantity per month (plan)Production quantity per month (plan)
6,660 cars a month
Manufacturing speed
27. 27
Customers
Pace of Sales = Pace of ManufacturingPace of Sales = Pace of Manufacturing
Order
Order sheet
Factory
Tact time establish synchronization between
manufacturing speed and selling speed
Tact Time Establishes the system
of manufacturing only Necessary
thing and necessary quantity
Tact Time Establishes the system
of manufacturing only Necessary
thing and necessary quantity
Tact TimeTact Time
28. 28
A
Raw MaterialFinished Goods
C
Raw MaterialFinished Goods
Raw Material Finished Goods
B
Conventional
System
Just In Time Approach
Raw Material Finished Parts
Sales
Production line 1 Production line 2 Production line 3 Production line 4
Continuous FlowContinuous Flow
Continuous Flow establishes
Manufacture and convey when is
it is required (one by one is ideal)
It avoids in-between stagnation of
stocks
Continuous Flow establishes
Manufacture and convey when is
it is required (one by one is ideal)
It avoids in-between stagnation of
stocks
29. 29
Why the pull system is required
Ideally If the customer demand is constant and production line produces
with out trouble (no line stop) pull system is not necessary By just with
Tact time and continuous production we can achieve JIT
Sales
Production Plan
Production line 1 Production line 2 Production line 3 Production line 4
But practically both the things are (customer demand and individual line net
processing speed) subjected to fluctuate. If we don't establish pull system we
need to keep high inventory to match fluctuation
Customer
Pull SystemPull System
30. 30
Push system
•The Preceding Process pushes
the finished goods to the
Following Process, irrespective
of demand .
Pull system
•Following Process withdraw from
Preceding Process, WHAT parts
they need, WHEN they need, in what
QUANTITY they need .
Conventional System
Supplier Customer
Supplier Customer
High
Inventory
Just In Time Approach
Push
System
Pull System
Pull SystemPull System
31. 31
By giving sales information to many process will cause high inventory
stagnation between process.
SalesProduction Plan
SalesKanbanKanbanKanbanKanban
Give sold information to only final process with sold speed and establishing pull system
keep complete manufacturing with same pace of sales
Pull SystemPull System
Pull System Ensures the JIT in
Practical Conditions
Pull System Ensures the JIT in
Practical Conditions
32. 32
① ② ③
Next process
Pulling
Produce parts in the order
of pull, only the parts pulled, In the
quantity pulled and one by one
Place produced
parts at its palce
Fillup only the parts which
next process is pulled
Reduce completed parts stock
Just In time work place
Set the processing speed
by Tact time
33. 33
SUPPLIER :
D001 - A
DENSO INDIA
LIMITED,
PROCESS CODE :
AA
QTY/BOX :
4
PACKING CODE :
424
KEY CODE :
505017447
LOCATION CODE :
F1C25-EG04
KANBAN NO :
C882
TKM
268W
PART DETAILS:
STARTER ASSY
28100-0D120-00
SEQ.No: DOCK:
2 01
31-MAY-05 10:41:21
• A Instruction for Production and Transportation.A Instruction for Production and Transportation.
• A visual information tool :A visual information tool :
- To prevent over-production.- To prevent over-production.
- To detect delays or advancement of- To detect delays or advancement of
processes.processes.
• A tool forA tool for Continuous ImprovementContinuous Improvement ..
KANBAN is aKANBAN is a small signboard / card,small signboard / card, workwork
on Pull system concept, is the key controlon Pull system concept, is the key control
tool for “Just-In-Time” production.tool for “Just-In-Time” production.
Kanban is used
as:
Kanban Sample
Pull SystemPull System
34. 35
Just In Time (summery)
Three Basic principles of JIT
1.Continuous Flow processing
2.Pull System
3.Tact time
•Tact time establish synchronization between manufacturing speed
and selling speed
•Continuous flow processing system reduces inventory stagnation
between process to process(great inventory reduction)
•Pull system establish synchronized speed between process to
process and establish Just in time manufacturing chain
36. 37
What is Standardized Work?
Standardized Work is S/W is Defined as an effective
and orderly method of producing without waste Work
organized in such a way is called standardized work.
By standardizing work, work force, tools, parts, and equipment are
all effectively used, and quality,cost, safety and workability are
improved. Also, what is needed at the time can be
manufactured.Standardization of work is one of effective methods
for Kaizen.
37. 38
Pre-requisite for Standardized
work
Pre-requisite for Standardized
work
Work Must be able conduct
repeatedly, cyclically
Work Must be able conduct
repeatedly, cyclically
To produce cyclic job, workload
must be leveled
To produce cyclic job, workload
must be leveled
Heijunka (leveling) production is
the base
Heijunka (leveling) production is
the base
38. 39
Heijunka is the basic requirement in Just in time production
The three principles of JIT are based on Heijunka
The heijunka is the basic necessity in JIT systems
Keep daily production in pace of average of kinds
and quantity of sold parts
Quantity
Time Minimum
Heijunka
Maximu
m
Need man-power/material
matching to peak quantity
Man waiting and
excess material occur
If fluctuation
so big
HeijunkaHeijunka
39. 40
What is leveling?
Leveling of amount and kind with respect to selling speed
(some times its called vertical leveling (volume) and horizontal leveling (kinds)
Amount
Leveling of kind
TimeTime
The maximum value Minimum value
Leveling of amount Amount
BBBCCC A A A C AB C AB C B A
5
40. 41
Reduction in variation experienced by the customer
There are three main elements of Heijunka…
1. Leveling: Overall leveling of a process to reduce variation in output
2. Sequencing: Managing the order in which work is processed (Mixed Production)
3. Stability or Standard Work: Reduce process variation
HeijunkaCustomer Demand Leveling
Jidoka
Just-in-Time
Heijunka
Toyota
Production System
42. 43
Jidoka refers to the ability of production lines to be
stopped in the event of such problems as equipment
malfunctions, quality problems or work being late,
either by machines which have the ability to sense
abnormalities or by workers who push a line-stop
button. And Visualize on real time
JidoukaJidouka
STOP!
Defect
43. 44
Aims of JidokaAims of Jidoka
1. Building 100% quality in at all times
3. Manpower savings (No need monitoring of machinery)
2. Failure prevention of machinery & equipment
JidoukaJidouka
Three Basic tools of Jidouka
1.Andon
2.Fixed Position Line Stop system
3.Pokayoke
44. 45
AndonAndon
B1B1 B2B2 B3B3 C1C1 C2C2 C3C3
LineLine
In JIT Line Any
problem at process
effects entire line
In JIT Line Any
problem at process
effects entire line
Need to take action
immediately before it
effects entire line
Need to take action
immediately before it
effects entire line
Identify the location
and Problem
Identify the location
and Problem
Visualization SystemVisualization System
Andon BoardAndon Board
45. 46
•Team member detects the Problem, he turns ON the FIXED-
POSITION stop switch.
•The Line keeps moving until it reaches a fixed position.
•Turning on the switch, also summons the supervisor.
Why Required
•This allows line supervisor & Team Member to resolve the
problem before the line comes to stop
•It ensures the completion of Standard work cycle of other
process of the line
Start
Position
Stop switch turn on position> Supervisor
call button gets on
Line Stop Position > After
move to next pitch
Fixed Position Line StopFixed Position Line Stop
46. 47
Fool proof system by using simple mechanism.
(Low Cost & highly reliable devices or innovations that either detect
abnormal situation before they occur at Production Process)
Machining :
Reverse installation is
impossible by putting an
obstruction plate
Example of Preventing missing
weld-nut
Example of Preventing out-of
position Mounting
Welding :
Welding will not take place if
nut is missing
Height
of the Nut
Spindle
Machine
BeforeKaizen
Chuck
Work (out of position)
AfterKaizen
Work (Mounted normally)
Blocking plate
Pokayoke- Fool proof systemPokayoke- Fool proof system
50. 51
Andon physically points out the location
& type of problems
JIDOKA
Tension Management.
Since minimum stock, every problem can
be easily detected.
Just In
Time
TPS
TPS in Other words
Only be necessary, and prepare a necessary thing with "J.I.T" if it is necessary.
To the assumption "Leveling. "
<number>
The uselessness of = surplus is generated going of → production demand of the amount and swinging of the kind of. needing the highest point it and exist about staff assignment/part procurement
When swinging is few, staff assignment/part procurement with a little uselessness or more is possible.
