Toyota Production System (TPS)

1. Toyota Production System (TPS) MGMT- E5060 Operations Management

2. Food for Thought……

3. Toyota Production System (TPS) • The Roots of the Toyota Production System (TPS) • TaiichiOhno, VP of Manufacturing, and Shigeo Shingo, head of industrial engineering and factory improvement training, developed the Toyota Production System. • They emphasized: • The minimization of all waste. • “Doing it right the first time.” OhnoShingo • Continuous Improvement • Leveraging the front line workers

4. The Seven Wastes in TPS • Overproduction – Producing more than, faster than or sooner than is required • Waiting – Idle time that could be used productively • Transporting – Unnecessary transport of parts or materials • Inappropriate processing – Operations that add no value from the customer’s perspective • Unnecessary inventory – Exceeding one-piece flow • Unnecessary/excess motion – Any movement by people or equipment that does not add value • Defects – Rework, repair or waste in its simplest form

5. 14 Toyota Management Principles (1-7) • 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. • 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 (manage by walking around). • Make decisions slowly and implement rapidly consider all options • Become a learning organization through relentless reflection (Hansei) and continuous improvement (Kaizen).

6. 14 Toyota Management Principles (8-14) • Make decisions on a long-term philosophy, even at the expense of short-term financial goals. • Design processes so that problems quickly come to the surface. • Use "pull" systems to avoid overproduction • Eliminate overburdens on people and equipment. • Build a culture of stopping to fix problems, to get quality right the first time. • Standardized tasks and processes are the basis for continuous improvement and employee empowerment. • Design visual controls so that problems aren't hidden.

7. TPS Terminology • Andon - A type of visual control that displays the current state of work (i.e., abnormal conditions, work instructions, and job progress information). It is one of the main tools of Jidoka. • Genchi Genbutsu - Go see the problem. This is the belief that practical experience is valued over theoretical knowledge. You must see the problem to know the problem. • Hoshin - Goals (with targets) and means for achieving it to address business priorities to move the organization to a new level of performance. • Jidoka - Jidoka helps prevent the passing of defects, helps identify and correct problem areas using localization and isolation, and makes it possible to “build” quality at the production process. • Jishuken - Management driven kaizen activity where management members identify areas in need of continuous improvement and spread information through the organization to stimulate kaizen activity.

8. TPS Terminology (cont.) • Just-In-Time - One of the two main pillars of TPS. It refers to the manufacturing and conveyance of only “what is needed, when it is needed, and in the amount needed.” • Kanban - Visual control tool to check for over production and to detect irregular processing speeds. • Kaizen - A system of continuous improvement in which instances of Muda (waste) are eliminated one-by-one at minimal cost. • Muda - Non-value added. Muda is translated as waste. • Nemawashi - Preliminary work to involve other sections/departments in discussions to seek input, information and/or support for a proposal or change. • Pokayoke - Low cost, highly reliable devices, used in the Jidoka system, that will stop processes in order to prevent the production of defective parts.