Taiichi Ohno’s contributions Presentation by: Cody Johnson – BYU Student

1. TaiichiOhno’s contributionsPresentation by: Cody Johnson – BYU Student

2. TaiichiOhno Contribution Outline • Who is TaiichiOhno? • Key terms and meanings • What is the Toyota Production System • View the basics of the TPS • Where do many of the ideas stem from • Review the Seven Wastes • Asking ‘why’ 5 times • Stagnation = waste

3. Outline Continued: • Key component to TPS – JIT – What is it? • Brainstorming Activitiy – Takt Time • Key Componenet to TPS explained – Kanban System • Summary • Sources/Readings List

4. TaiichiOhno • Who is TaiichiOhno? • Born in China but known as a Japanese Businessman • What is he known for? • Being the father of the Toyota Production System (TPS) • Ohno drove development and practical application of the TPS • Believed in teaching leadership by example and empowering employees Quote from Ohno: “Costs do not exist to be calculated, they exist to be reduced.”

5. Key terms and meanings • Just-in-time: getting what is needed at the time it is needed in the quantity needed (JIT) • Kanban: Simple, clear, fast means of communication • Autonomation: separation of machine and man • Muda: Waste, anything that is non-value added • Poka-Yoke: A failsafe, instruments in place to avoid mistakes • Heijunka: The discipline of leveling customer demand (Quantity and Variety) • Kaizen: continuous improvement • Takt Time: referred to as the time it takes to assemble products in each stage of the manufacturing process • Jidoka: automation with a human touch

6. What is the Toyota Production System?*Two main pillars* • Continuous Improvement - often referred to as Kaizen • Respect for People

7. The Basics of TPS Heijunka – Preexisting condition – Keep it level JITJIDOKA • Pull System a. Stop and Fix • Continuous Flow b. Separate Human & Machine • Takt Time Create flow of parts and seek people contributing to the company

8. Where did Toyota get their ideas for the TPS? • Experiencing major material shortages because of the war • Henry Ford and his book • US Supermarkets – Saw replenishment and product delivery Ford Model T - 1908

9. The Seven Wastes of the TPS – ‘MUDA’ • Overproduction • Waiting • Transporting • Too much machining (Over-processing) • Inventories • Moving • Making defective parts and products You must first understand the nature of waste before it can be recognized

10. Asking ‘Why’ 5 times • Critical component of problem solving • Goal: find the root cause of the problem • The direct root cause should point to a process after asking the 5 whys

11. What is stagnation and how do we eliminate waste? Products are always changing -How can we add value We must have a continuous flow Keep the flow with Takt Time *Stagnation is considered waste, no matter what form it is in.

12. Just-in-time (JIT) • Developed to eliminate inventory • Produce What is needed • At the time it is needed • In the Quantity needed ACCOMPLISHED • Pull Systems (Kanban signals) • Keeping Takt Time (pace of sales)

13. Brainstorming Activity – Takt Time Time Available Customer Demand Formula for Takt Time = Time Available =Amount of scheduled work time per shift EXAMPLE: 8.00 hrs. per shift – minus .80 hrs of break and lunch = 7.2 hours of work time We need to convert minutes to seconds: 7.2 hours X 60 min.= 432 min. 432min.X 60 sec.= 25,920 sec. Per Shift the available time = 25,920 seconds

14. Brainstorming Activity – Takt Time Now that we have ‘Time Available’, we need to compute customer demand. Customer Demand (Parts Required) = Demand per shift Weekly Demand # of Shifts per week EXAMPLE: 27,000 demand per week 10 shifts per week = Demand per shift = 2,700 units per shift

15. Brainstorming Activity – Takt Time EXAMPLE: Takt time = Time Available Parts Required (Customer Demand) = 25,920 seconds per shift 2,700 units per shift *Every 9.6 seconds one unit should be produced* = 9.6 seconds per unit

16. What if we are running faster than Takt Time? What if we are running slower than Takt Time? • Inventory increases • Lead times increase • Demand on suppliers increase • Cost increase • Overtime needed to meet demand • Product increases in cost • Shipping costs will increase • Customer dissatisfaction • Missed shipments

17. Kanban system • A pull system – What is a pull system? Pull – means that nobody upstream will produce goods or services until the customer downstream asks for it VS. Push – means produce even if there is no demand

18. How does a Kanban Pull system work? Supplier Inventory “Shop Stock” *This side you are seeing the flow of material Final Assembly Store/Shipping Dock *This side you are seeing the flow of information. A signal is sent to notify that more material is needed. Customer

19. Summary • Much to learn about the TPS concepts • Terms are simple and straightforward • Identify the seven wastes • Asking ‘why’ 5 times can make a difference • JIT and Kanban – if implemented correctly, can be extremely beneficial for your organization • Always be looking for waste – WASTE = $$

20. Readings list: Sources • ‘Toyota Production System’ written by TaiichiOhno. • ‘The Toyota Way’ written by Jeffrey Liker • I worked at US Synthetic in Orem, Utah and took a Lean certification class. They base much of their manufacturing off of the TPS. I received a lot of information from my research from the hand book for this certification class through US Synthetic