Toyota Production Systems (TPS)

1. Toyota Production Systems(TPS) Presented by: Denny Larsen

2. Agenda - Goals • Introduce the Toyota Management Principles • Introduce TPS • Discuss the TPS Management Philosophies • Introduce TPS Problem Solving tools • PDCA Wheel • Genchi Genbutsu • Fault Tree Analysis • Review project process

3. Toyota Management Principles

4. Toyota Management Principles • Management decisions based on a long term philosophy even at the expense of short term financial goals. • Continuous process flow to bring problems to the surface. • “Pull” systems to avoid overproduction. • Level out the workload (Heijunka). (Work like the tortoise not like the hare. • Use visual control so no problems are hidden.

5. Toyota Management Principles • Build a culture of stopping to fix problems to get quality right the first time. • Standardized tasks are the foundation for continuous improvement and employee empowerment. • Use only reliable, thoroughly tested technology that serves your people and processes. • Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.

6. Toyota Management Principles • Develop exceptional people and teams who follow your company’s philosophy. • Respect your extended network of partners and suppliers by challenging them and helping them improve. • Go and see for yourself to thoroughly understand the situation (genchi genbutsu). • Make decisions slowly and by consensus, thoroughly considering all options and then implement decisions rapidly. • Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).

7. What is TPS? Toyota Production System • Philosophy of manufacturing and business process review that strives to optimize the use of time, human resources, and assets to improve productivity • Method of improving the quality level of products and services to our customers

8. TPS focuses on cost reduction through the elimination of the Waste(MUDA) that exists in the manufacturing process by making manufacturing problems easier to see! Why T P S ? (Toyota Production System) We need good manufacturing techniques to be a consistent reliable supplier and to make high quality profitable products, at a low cost. Why do we need to reduce costs and see our problems?

9. TPS Management Philosophies Toyota’s core competency is the TPS managerial philosophy • Permeating TPS concepts and methodology to all managers and employees • Embracing and modeling these philosophies at all levels

10. TPS Management Philosophies Securing profits is essential for survival and fulfilling social missions • Contribute to better living of customers • Contribute to better community / society through company • Stabilize living conditions for the employees

11. TPS Management Philosophies Cost reductions are required to increase profits • Customers set the selling price • We, through cost reduction, set profit levels

12. Selling price Profit Profit Cost Cost Companies need to make a profit for future Growth. 3 basic ways of increasing profit 1. Increase selling price ---------------------- You may lose your market share because of a more expensive product. 2. Reduce the cost ---------------------------- It is possible with cooperative efforts and waste elimination. 3. Reduce both cost and selling price------- This gives you the most competitive prices and allows you to sell more product Selling price It’s possible, plus both manufactures and customers have advantages. Selling price Profit Selling price Profit Profit Cost Cost Cost 3 2 1 Now Increase profit Cost Reduction is necessary TPS

13. TPS Management Philosophies Reducing waste (muda) is essential in the TPS system. Reducing waste in manufacturing and business processes means eliminating anything that serves only to increase the cost of doing business.

14. Action Plan Check Do PDCA Wheel TPS Problem Solving Continuous improvement relies on applying a cyclical methodology of problem solving: • Plan • Do • Check • Action

15. Man-hours Inadequate Plan Adequate Plan Large number of man-hour D C A P Small number of man- hour Benefits of the PDCA Wheel In the top example, inadequate planning has resulted in increased time spent checking and taking corrective action.

16. PDCA Report Format ThemeStates purpose of report in general terms • Problem Situation • Background • Standard: what should be happening • Current Situation: what is happening • Discrepancy: deviation between standard and current situation • Extent: what is the trend of this problem • Rationale: why should this problem be addressed • Countermeasure(s) • Address root cause • Short-Term: something to get things going Long-Term: deal with the root cause and prevent recurrence of the problem • Why recommended P P D • Implementation(Gantt Chart) • WHAT actions need to be done to put the countermeasure(s) in place • WHO will take that action • WHEN will the action be taken D Target(s) What you want to accomplish within a certain time frame: (Do What, To What, By When & How Much) P • Follow-Up • What needs to be checked • When does it need to be checked. • What recommendations do you have now that countermeasures are in place. • Include a line graph showing your progress toward the goal. C • Cause Analysis • Investigating the problem based on confirmed facts all the way to the root cause. • Potential causes • How checked & results (FTA, 5-Why, Fishbone, etc.) • Identify actual root cause(s) P A

17. TPS Problem Solving Before attempting to solve problems, you must understand what the true root cause is. You must go and see for yourself at actual site of the problem to understand Genchi Genbutsu. This is a key Toyota philosophy.

18. Viewpoints for Hands-on Observation - Genchi Genbutsu • Compare “What is” to “What should be” • Look with five or even six senses (eyes/ears/nose/skin/feeling and others）) • See the movement in slow speed (use of high-speed camera, etc.）) • Enlarge the object • Disassemble, cut in section, or destroy the object • Stand in the circle • See the work site when the line is stopped • Carry out the operation by yourself

19. TPS Problem Solving 5 Why (also known as Fault Tree Analysis) is a process to define the potential root causes of an issue and subsequently identify the true cause of the problem. Application of this process is critical to ensure timely and effective problem solving.

20. Plan Phase FTA

21. Do Phase FTA

22. Check Phase FTA

23. Action Phase FTA

24. Tank not checked Vaporizer fault Not getting fuel Used up last trip Fuel tank empty Fuel line clogged Broken rod Bearing adherence Pistons will not move Battery discharge Engine will not start Low Compression Not enough energy Piston ring breakage Pull cord cut Spark plug damaged No Spark Magnet damaged Wire cut Fault Tree Analysis

25. Car Example

26. TPS Relationships

27. Project Selection • TPS • Hoshin Plan • Manager meeting • Associate input • Kaizen • TPS/Jishuken • Associates • Jishuken • Internal • External

28. Team Selection • TPS • Full time • Part time • Kaizen • TPS/Jishuken • Associates • Jishuken

29. TPS Process • Training • Set team ground rules • Set the agenda • Review current process (baseline) • Determine direction • Make recommendations to key stake holders • Layout new process • Check results • Make changes, if necessary • Full implementation

30. TPS Agenda

36. Create the Future State • Eliminate Muda • Brainstorm for ideas • Layout new concepts on paper • Determine and write up appropriate Kaizens • Implement new ideas • Check new ideas • Act on new ideas – if needed

37. Leaders Responsibility • Most important activity for Leaders is training and educating associates in TPS. • Participation by Leaders is daily activity. • Associates learn from the activity of Leaders. Positive actions from Leaders result in positive actions in associates. • Toyota Production System is not a optional program, it is our Culture and Daily way-of-life.

39. Questions ?????