Toyota Production
Toyota Production
System
System
&
&
Dual Kanban System
Dual Kanban System
Irfan Kazi & Naresh S
Irfan Kazi & Naresh S
Toyota Production
Toyota Production
System
System
Toyota production system was developed &
Toyota production system was developed &
promoted by TMC.
promoted by TMC.
The main purpose of TPS is to eliminate waste
The main purpose of TPS is to eliminate waste
through
through
continuous
continuous improvement
improvement activities.
activities.
Profit through cost reduction
Profit through cost reduction
Elimination of over production
Elimination of over production
Quality control , Quality assurance , Respect for
Quality control , Quality assurance , Respect for
humanity
humanity
Cost Reduction
Cost Reduction
Increase of capital
Increase of capital
turnover ratio
turnover ratio
Elimination of Waste
Elimination of Waste
Production
Production
methods
methods
Information
Information
system
system
Control by
Control by
teamwork
teamwork
Automatic
Automatic
stop device
stop device
••Small lot sizeSmall lot size
•
•Short setup timeShort setup time
•
•Multifunctional worker Multifunctional worker
•
•Job finishing within cycle timeJob finishing within cycle time
Kanban
Kanban
Continuous flow of Production
Continuous flow of Production
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System
System
Manufactur Manufactur ing as a ing as a Competitiv Competitiv e Weapon e Weapon
There are two ways to increase
There are two ways to increase
efficiency: 1) increase
efficiency: 1) increase
production quantity or 2) reduce
production quantity or 2) reduce
the number of workers—Taiichi
the number of workers—Taiichi
Ohno.
Ohno.
Over time, lower
Over time, lower
costs, higher quality,
costs, higher quality,
and faster
and faster
development &
development &
production times will
production times will
increase sales.
increase sales.
•
•
Reduce
Reduce
people at
people at
all levels
all levels
in the
in the
organizat
organizat
ion
ion
“Cost Reduction Is the
“Cost Reduction Is the
Goal”
Goal”
“Cost Reduction Is the
“Cost Reduction Is the
Goal”
Goal”
In the short
In the short
term, you
term, you
may need to
may need to
Goal of
Goal of
TPS
TPS
Why?
Why?
Cost vs. Vitality &
Cost vs. Vitality &
Growth
Growth
As you reduce costs, you create
As you reduce costs, you create
options
options
::
Lower prices, which often lead to higher market share
Lower prices, which often lead to higher market share
More R & D
More R & D
Growth through acquisitions or diversification
Growth through acquisitions or diversification
Higher investment in training and
Higher investment in training and equipment
equipment
Greater profitability, which rewards shareholders,
Greater profitability, which rewards shareholders,
including employees
including employees
Options give the company the means to survive on
Options give the company the means to survive on
its
its own
own terms,
terms, even
even in
in slow
slow economic
economic times,
times, and
and
grow
grow as
as the
the economy
economy recovers
recovers
Back
Main Features of TPS
Main Features of TPS
Greater Product Variety
Greater Product Variety
Fast Response (Flexibility)
Fast Response (Flexibility)
“Stable” Production Schedules
“Stable” Production Schedules
Supply Chain Integration
Supply Chain Integration
Elements of TPS
Elements of TPS
The SMED Program.
The SMED Program.
Highlight Problems (Jidoka).
Highlight Problems (Jidoka).
Gradual Elimination of Waste.
Gradual Elimination of Waste.
Continuous Improvement (Kaizen), Root-Cause
Continuous Improvement (Kaizen), Root-Cause
Analysis (5-whys?) and Fool-proofing (Poka-Yoke).
Analysis (5-whys?) and Fool-proofing (Poka-Yoke).
Cross-Trained Workers.
Cross-Trained Workers.
Just-In-Time Production.
Just-In-Time Production.
A Lean Paradox
A Lean Paradox
•
•
Resolve
Resolve
how to
how to
maintain
maintain
mutual
mutual
trust
trust
while
while
reducing
reducing
people
people
Reducing costs means reducing people, but if you
Reducing costs means reducing people, but if you
eliminate people as a result of
eliminate people as a result of
improvem
improvem
ent, you will
ent, you will
get no more
get no more
improvemen
improvemen
t.
t.
Reducing costs means reducing people, but if you
Reducing costs means reducing people, but if you
eliminate people as a result of
eliminate people as a result of improvement
improvement, you will
, you will
get no more improvement.
get no more improvement.
The Toyota Production System
The Toyota Production System
clearly reveals excess
clearly reveals excess manpower…
manpower…
Management’
Management’s responsibility is
s responsibility is to
to
identify excess manpower and
identify excess manpower and
utilize it effectively.
utilize it effectively.
Hiring people when business is
Hiring people when business is
good and production high just to
good and production high just to
lay them off is a
lay them off is a bad practice.
bad practice.
On the other hand, eliminating
On the other hand, eliminating
wasteful and meaningless jobs
wasteful and meaningless jobs
enhances the value of work for
enhances the value of work for
Develop A Develop A Lean Strategy Lean Strategy •
•Create a sense of Create a sense of urgency
urgency •
• Throughout the Throughout the enterprise, sell enterprise, sell lean/TPS as the lean/TPS as the solution solution •
•Hire aHire a senseisensei && retain design talent retain design talent •
•Establish targetsEstablish targets •
•Resolve how toResolve how to maintain mutual maintain mutual trust while trust while reducing people reducing people •
•Give preliminaryGive preliminary thought to supplier thought to supplier issues
issues •
•Consider theConsider the competitive competitive Manufact Manufact uring as a uring as a Competiti Competiti ve ve Design The Design The Manufactur Manufactur ing System ing System •
•Identify theIdentify the customer customer base and base and product range product range •
•Identify taktIdentify takt time & its time & its range range • •ApplyApply axiomatic axiomatic design to design to create the create the basic factory basic factory system system • •EliminateEliminate non-essential non-essential infrastructure infrastructure and layers and layers above the above the Establish Establish Establish Establish Flow Flow Flow Flow Within Within Within Within Cells Cells Cells Cells Establish Establish Establish Establish Flow Flow Flow Flow Within Within Within Within Cells Cells Cells Cells •
•Form cellsForm cells
based on takt based on takt time time • •DefineDefine standard work standard work content for content for each each operation to operation to be < takt time be < takt time • •SeparateSeparate worker from worker from machine machine ( ( jidoka) jidoka) •
•Develop quickDevelop quick
setups & setups & standard WIP standard WIP (SMED) (SMED) •
•Form cellsForm cells based on takt based on takt time time • •DefineDefine standard work standard work content for content for each each operation to operation to be < takt time be < takt time • •SeparateSeparate worker from worker from machine machine (( jidoka) jidoka) •
•Develop quickDevelop quick setups & setups & standard WIP standard WIP (SMED) (SMED) Establish Establish Establish Establish Pull Pull Pull Pull Between Between Between Between Cells Cells Cells Cells Establish Establish Establish Establish Pull Pull Pull Pull Between Between Between Between Cells Cells Cells Cells • •Design anDesign an information information system to system to produce produce only the only the products products required by required by the the downstream downstream cells cells • •IncorporateIncorporate takt time to takt time to drive flows drive flows • •InstituteInstitute leveled leveled production production ((heijunkaheijunka)) •
•Use visualUse visual
Strive For Strive For Perfection Perfection • •InstituteInstitute kaizen kaizen &&
institutionalize institutionalize 5Ss throughout 5Ss throughout organization organization • • Transfer Transfer ownership of ownership of all processes all processes to work force to work force •
•Push leanPush lean down to down to suppliers suppliers • •IntegrateIntegrate product product development development •
•Reduce peopleReduce people at all levels in at all levels in the the organization organization All activities must support the goal of “
All activities must support the goal of “shortening theshortening the
time it takes to convert customer orders into
time it takes to convert customer orders into
deliveries
deliveries.”.” Toyota Motor Corporation, 1992Toyota Motor Corporation, 1992
All activities must support the goal of “
All activities must support the goal of “shortening theshortening the
time it takes to convert customer orders into
time it takes to convert customer orders into
deliveries
deliveries.”.” Toyota Motor Corporation, 1992Toyota Motor Corporation, 1992
•
•Apply flexibleApply flexibleApply flexibleApply flexible designs to designs to designs to designs to create the create the create the create the basic factory basic factory basic factory basic factory system system system system
the TPS
the TPS
Toyota Production System
Toyota Production System
Just-In-Time
Just-In-Time
“Right part, right amount, “Right part, right amount,
right time” right time”
Jidoka
Jidoka
(In-station quality)
(In-station quality)
“Make Problems Visible” “Make Problems Visible”
Leveled Production (
Leveled Production (
Heijunka)
Heijunka)
Stable and Standardized Processes
Stable and Standardized Processes
•• Takt time planningTakt time planning •• Continuous flowContinuous flow •• Pull systemPull system
•• Quick changeoverQuick changeover •• Integrated logisticsIntegrated logistics
•• Automatic stopsAutomatic stops •• AndonAndon
•• Person-machinePerson-machine separation
separation •• Error proofingError proofing •• In-station qualityIn-station quality
control control
•• Solve root cause of Solve root cause of problems (5 Why?) problems (5 Why?)
Waste Reduction
Waste Reduction
•• Gemba KaizenGemba Kaizen•• 5 Why’s5 Why’s
•• Eyes for WasteEyes for Waste •• Problem SolvingProblem Solving
People & Teamwork
People & Teamwork
•• SelectionSelection•• Common GoalsCommon Goals
•• Rigid decision makingRigid decision making •• Cross-trainedCross-trained
Continuous Improvement
Continuous Improvement
Visual Management
Visual Management
Toyota Way Philosophy
Toyota Way Philosophy
Best Quality - Lowest Cost - Shortest Lead
Best Quality - Lowest Cost - Shortest Lead Time - Best Safety
Time - Best Safety - High Morale
- High Morale
through shortening the production flow
DUAL KANBAN SYSTEM
DUAL KANBAN SYSTEM
KANBAN IS THE MAIN TOOL FOR
KANBAN IS THE MAIN TOOL FOR
OPERATING ON JUST IN TIME
OPERATING ON JUST IN TIME
Kanban System
Kanban System
The
The pull system
pull system means that materials are drawn or sent
means that materials are drawn or sent
ffo
or
r b
by
y tth
he
e u
us
se
errs
s o
of
f tth
he
e m
ma
atte
erriia
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d.
.
[[M
Mo
on
nd
de
en
n]]
The
The Kanban system
Kanban system is an information system that
is an information system that
harmoniously controls the production of the necessary
harmoniously controls the production of the necessary
products in the necessary quantities at the necessary time
products in the necessary quantities at the necessary time
in every process of a factory and also among companies,
in every process of a factory and also among companies,
which is known as the JIT
which is known as the JIT product
production. [Monden]
ion. [Monden]
A
A Kanban
Kanban is a tool to achieve JIT production. It is simply a
is a tool to achieve JIT production. It is simply a
card which is usually put in
card which is usually put in a rectangular vinyl envelope.
a rectangular vinyl envelope.
[Monden]
Types Of Kanbans
Types Of Kanbans
Kanbans are classified as follows
Kanbans are classified as follows
1.
1.
Primary Kanban :
Primary Kanban :
travels from one stage to another among main
travels from one stage to another among main
manufacturing cells- “withdrawal
manufacturing cells- “withdrawal Kanban”(conveyor
Kanban”(conveyor
kanban), “production Kanban”
kanban), “production Kanban”
2.
2.
Supply Kanban:
Supply Kanban:
travels from a
travels from a warehouse
warehouse
or storage
or storage
facility to a manufacturing facility
facility to a manufacturing facility
3.
3.
Procurement Kanban:
Procurement Kanban:
travels from outside of a company to the receiving area
travels from outside of a company to the receiving area
4.
4.
Subcontract Kanban :
Subcontract Kanban :
travels between subcontracting units
travels between subcontracting units
5.
5.
Auxiliary Kanban :
Auxiliary Kanban :
the form of an express Kanban, e
Operations Principles
Operations Principles
Level production (
Level production (balance
balance
the schedule)
the schedule)
Avoid complex information and hierarchical
Avoid complex information and hierarchical
control systems on a
control systems on a factory floor
factory floor
Do
Do not
not
withdraw parts
withdraw parts without
without
a kanban
a kanban
Withdraw only the parts needed at
Withdraw only the parts needed at each stage
each stage
Do not send defective parts to the succeeding
Do not send defective parts to the succeeding
stages
stages
The key objective of a Kanban system:
The key objective of a Kanban system:
1
1.. T
To
o deliver
deliver
the
the material
material
just-in-time to the
just-in-time to the
manufacturing workstations
manufacturing workstations
2.
2. To
To pa
pass
ss inf
infor
orma
mati
tion t
on to t
o the
he preceding
preceding
stage as
stage as
to what and how much to produce
to what and how much to produce
Following functions
Following functions
1. Visibility Function : the
1. Visibility Function : the information
information
and
and
material flow are combined together
material flow are combined together
2. Production Function : indicates the time,
2. Production Function : indicates the time,
quantity, and part types
quantity, and part types to be produced
to be produced
3. Inventory Function : # of Kanbans = # of
3. Inventory Function : # of Kanbans = # of
Kanban Functions
Rule 1: Move a Kanban only when the
Rule 1: Move a Kanban only when the lot it represents is
lot it represents is
consumed.
consumed.
Rule 2: No withdrawal of parts without a Kanban is allowed.
Rule 2: No withdrawal of parts without a Kanban is allowed.
Rule 3: The number of parts issued to the
Rule 3: The number of parts issued to the subsequent process
subsequent process
must
must be
be the
the exact
exact
number
number specified
specified by
by the
the Kanban.
Kanban.
Rule 4: A Kanban should always be attached to the physical
Rule 4: A Kanban should always be attached to the physical
parts.
parts.
Rule 5: The preceding process should always produce parts in
Rule 5: The preceding process should always produce parts in
the qua
the quantities with
ntities with drawn b
drawn by the
y the subsequent
subsequent process.
process.
Rule 6: Defective parts should never be
Rule 6: Defective parts should never be conveyed to the
conveyed to the
subsequent process.
subsequent process.
Basic Kanban
Basic Kanban
Rules
Rules
Dual Kanban
Dual Kanban
System
System
Each kanban is physically attached to a
Each kanban is physically attached to a
Dual Kanbans
Dual Kanbans
Process
Process
A
A
Process
Process
B
B
X
X
P
P
W
W
Container with withdrawal kanban
Container with withdrawal kanban
Container with production kanban
Container with production kanban
P
P
W
W
P
P
X
X
X
X
X
X
X
X
X
X
Flow of work
Flow of work
Flow of kanban
Flow of kanban
X
X
X
X
X
X
X
X
Production
Production
Cards
Cards
Production
Production
Cards
Cards
Move
Move
Cards
Cards
Move
Move
Cards
Cards
Move Card Move Card Production Card Production CardOutbound
Outbound
Stockpoint
Stockpoint
Inbound
Inbound
Stockpoint
Stockpoint
Dual Kanban
Dual Kanban
System
System
Determining Number Of
Determining Number Of
Kanbans
Kanbans
Where
Where
N = number of kanbans or containers
N = number of kanbans or containers
d = average demand over some time period
d = average demand over some time period
L = lead t
L = lead time to produce parts
ime to produce parts
S = safety stock
S = safety stock
C = container size
C = container size
No
No.
. of kanb
of kanba
a ns
ns =
=
ma
mand
nd du
durin
rin g
g le
lead
ad tim
time
e +
+ sa
safe
fety
ty st
st oc
ock
k
container size
container size
average de
average de
N
N
dL
dL
S
S
C
C
= = ++TKM TKM GLOVE GLOVE COMPARTMENT COMPARTMENT SUPPLIER TG SUPPLIER TG KIRLOSKAR KIRLOSKAR T004-A T004-A PROCESS CODE : PROCESS CODE : ASSEMBLY ASSEMBLY 55581- 0B010- 00 55581- 0B010- 00 QTY/BOX QTY/BOX 10 10 PACKING CODE : PACKING CODE : PB10123 PB10123 Dock Dock 01 01 LOCATION CODE : LOCATION CODE : T2R-2 T2R-2
516
516
SEQSEQ NO. 1 NO. 1 KEY CO KEY CODE DE :1234567890:1234567890KANBAN
KANBAN SAMPLE
SAMPLE
PART NAME PART NAME NAME OF SUPPLIER FROM
NAME OF SUPPLIER FROM WHERE THE PARTS WILL BE WHERE THE PARTS WILL BE
PARTS PARTS DESTINATION DESTINATION SUPPLIER CODE SUPPLIER CODE FOR EASY FOR EASY SUPPLIER SUPPLIER IDENTIFICATION IDENTIFICATION
LINE SIDE ADDRESS FOR LINE SIDE ADDRESS FOR PARTS STORAGE. BASED ON PARTS STORAGE. BASED ON THIS ADDRESS, THE PARTS THIS ADDRESS, THE PARTS ARE DELIVERED TO THE ARE DELIVERED TO THE USAGE AREA.
USAGE AREA.
PART NUMBER PART NUMBER
PARTS RECEIPT AREA. PARTS RECEIPT AREA.
WE HAVE TWO WE HAVE TWO RECEIPT AREAS – RECEIPT AREAS – DOCK 01 AND DOCK 02. DOCK 01 AND DOCK 02. MINIMUM MINIMUM ORDER LOT ORDER LOT PARTS PACKING PARTS PACKING STYLE
STYLE PART ID NO. THIS NUMBER IS PART ID NO. THIS NUMBER IS USED INSTEADUSED INSTEAD OF 10 DIGIT
OF 10 DIGIT PART NUMBER FOR EASYPART NUMBER FOR EASY IDENTIFICATION AMONG PRODUCTION, IDENTIFICATION AMONG PRODUCTION, COLOUR GIVEN FOR
COLOUR GIVEN FOR EACH PROCESS LINE EACH PROCESS LINE FOR EASY DELIVERY OF FOR EASY DELIVERY OF PARTS FROM PC ZONE PARTS FROM PC ZONE
TO LINE. TO LINE. PARTS USAGE PARTS USAGE PROCESS NAME PROCESS NAME
Conclusion
Conclusion
T
Toyota p
oyota production
roduction system
system has b
has been c
een created
reated
from actual practices in the factories of Toyota,
from actual practices in the factories of Toyota,
it has a
it has a stro
strong feature of emphasising practical
ng feature of emphasising practical
effects,
effects, and
and actual
actual practice
practice and
and
implication
implication
over theoret
over
theoretical
ical analysis.
analysis. This
This
system can play a great role in the task of
system can play a great role in the task of
improving the constituents of the
improving the constituents of the companies
companies
world-wide
world-wide especially
especially
those
those of
of the
the
automobile industry.
Bibliography
Bibliography
www.icaen.uiowa.edu/ie166/Private/Lecture/ch8-
www.icaen.uiowa.edu/ie166/Private/Lecture/ch8-Kanban.pdf
Kanban.pdf
www.ie.bilkent.edu.tr/akturk/ie561/gokhan2
www.ie.bilkent.edu.tr/akturk/ie561/gokhan2
www.toyota.co.jp
www.toyota.co.jp
Yasuhiro Monden, Toyota Production System, 2
Yasuhiro Monden, Toyota Production System, 2
nnddedition, IEM Press, Georgia, 1991
edition, IEM Press, Georgia, 1991
