-Presented by Akshay Katariya (13218) Harshad Jain (13224) Pravin Jadhav (13239) Akshay Ghone (13248) Shivaji kothewad (13256)

Established in Japan in Year 1937

Largest and most profitable automobile manufacturer

in the world since 2008

Produced 20 crore vehicles till July 2012

About 70 different vehicle models,

Largest listed company in Japan

14th largest listed company world over

Factories in 27 countries in the world

Over 3,33,498 employees world over

Following Best Management Practices since 1940

Starts with Sakichi Toyoda who grew up in predominantly farming community in late 1800s. Weaving was a major industry promoted by the Japanese government.

By 1894, Sakichi began to make manual looms that were cheaper but of better quality (more features and less failures).

Started working on his own to develop power-driven loom. This approach of learning and doing yourself became integral part of TPS (genchi genbutsu).

Among his inventions was a special mechanism to automatically stop a loom whenever a thread broke –building in quality as you produce the material (jidoka or poka-yoke).

The “mistake-proof” loom became Toyoda’s most popular

model

In 1929, his son Kichiro, negotiated the sale of patent rights to

Platt Brothers of England for £100,000.

In 1930, these funds were used to start building the Toyota

Motor Corp.

Kichiro’s contribution to the Toyota philosophy – JIT.

What is JIT? – marriage between the Ford’s idea of assembly

line and US supermarket system of replacing products on the

shelves just in time as customer purchased them.

Not much later WWII started.

Post-WWII, rampant inflation meant getting paid by customers was very difficult. Cash-flow problems lead to pay cuts.

When situation worsened, 1600 workers were asked to “retire voluntarily.”

The resultant work stoppages and public demonstrations by workers led to resignation of Kichiro.

Eiji Toyoda took over as president. Eiji’s main contribution – leadership towards development of

the TPS. Eiji hired Taiichi Ohno as the plant manager and asked him to

improve Toyota’s manufacturing process so that it equals the productivity of Ford.

Taiichi Ohno benchmarked the competition by visiting Ford

and studied Henry Ford’s “book.”

Impressed with Ford’s philosophy of eliminating waste. Ford

itself didn’t seem to practice it.

Took idea of reducing inventory by implementing “pull”

system from the US supermarkets.

“Pull” system was implemented by Kanban cards.

Ohno also took ideas from Deming when he was lecturing in

Japan about quality and productivity.

Deming told the Japanese industry about meeting and exceeding customer satisfaction. Also broadened the definition of customer to include both internal as well as external customers.

“The next process is the customer” became the most significant expression for JIT, because in a pull system it means the proceeding process must always do what the subsequent process says. Otherwise JIT won’t work.

Deming’s PDCA cycle led to Kaizen.

The Toyota Production System …….

Leveled Production (Heijunka)

Stable & Standardized Process

Visual Management

Toyota Way Philosophy

Best Quality – Lowest Cost – Shortest lead Time –

Best Safety – High Morale

Just-in-TimeRight Part, Right Amount,

Right Time

• Takt Time Planning

• Continuous Flow

• Pull System

• Quick Changeover

• Integrated Logistics

Jidoka(In-station Quality)

Make Problems Visible

• Automatic Stops

• Andon

• Person-Machine separation

• Error-proofing

• In-station Quality Control

• Solve Root Cause of Problems

(5 Why’s)

Continuous

Improvement

People & Teamwork• Selection

•Common Goals

• Ringi Decision-making

• Cross-Trained

Waste Reduction• Genchi Genbutsu

• 5 Why’s

• Eyes for Waste

• Problem Solving

Overproduction: Producing items for which there are no orders, which generates such wastes as overstaffing and storage and transportation costs because of excess inventory.

Waiting: Workers having to stand around waiting for the next processing step, tool, part etc. Or no work because of stock-outs, lot processing delays, equipment downtime, and capacity bottlenecks.

Unnecessary transport: Carrying WIP long distances, creating inefficient transport, or moving parts in and out of storage facility.

Over-processing or incorrect processing: Taking unneeded steps to process the parts. Inefficient processing due to poor tools and product design, causing unnecessary motion and producing defects. Waste generated when providing higher-quality products than is necessary.

Excess inventory: Excess raw material, WIP or finished goods causing longer lead times, obsolescence, damaged goods. Extra inventory hides problems such as production imbalances, late deliveries from suppliers, defects, equipment downtime, and long set-ups.

Unnecessary movements: Any wasted motion employees have to perform during the course of their work, such as looking for, reaching for, or stacking parts, tools etc. Walking is a waste.

Defects: Production of defective parts or correction. Repair or

rework, scrap, replacement production, and inspection mean

wasteful handling, time and efforts.

Unused employee creativity: Losing ideas, skills,

improvements, and learning opportunities by not engaging or

listening to your employees.

Just-in-Time means PRODUCING:

a)Right item

b) At right time

c) In the right amount

Mr. Ohno used to say that no problemdiscovered when stopping the line should waitlonger than tomorrow morning to be fixed.Because when making a car every minute weknow we will have the same problem againtomorrow.

- Fujio Cho, President, Toyota Motor corp.

• No matter what Do not shut down theAssembly line.

Competitor’s culture

• If you are not shutting the assembly linethat means you have no problem. Allmanufacturing plants must have problems.That means you must be hiding yourproblems. You will also continue to solveyour problems and make even better qualityproducts more efficiently.

Toyota’s culture

Stopping the Process to build in Quality Quality should be built in. Jidoka- Equipment endowed with human

intelligence to stop itself when it has a problem.

Much more effective and less costly. Solving quality problems at source saves time

and money. Eliminates waste, productivity soars.

If the problem is small enough that can be solved

in the lead-time between two workstation, 100%

quality is achieved without stopping the line.

If the problem is complex, the team leader can

conclude that the line should stop.

In TPS, the workstation detects the defects by

using countermeasures and error-proofing (poka-

yoke).

Mr. Ohno was passionate about TPS. He saidyou must clean up everything so you can seeproblems. He would complain if he could notlook and see and tell if there is a problem.

- Fujio Cho, President

Sort

Clean out rarely used

items by red tagging

Straighten

Organize and label a place

for everything

Shine

Clean it.

Standardize

Creates rules to sustain the

first 3 S’s

Sustain

Use regular management audits to stay

disciplined

Eliminate Waste

The 5 S’s

“The factories were so clean you could eat off of the floor”. – Americansreaction to Japanese plants.

“5 S programs”- comprise a series of activities for eliminating wastes thatcontribute to errors, defects and injuries.

Sort- Sort through items and keep only what is needed while disposing ofwhat is not.

Straighten- “ A place for everything and everything in its place”. Shine (cleanliness)- The cleaning process often acts as a form of inspection

that exposes abnormal and pre-failure conditions that could hurt quality orcause machine failure.

Standardize- Develop systems and procedures to maintain and monitor thefirset 3 S’s

Sustain- Maintaining a stabilized workplace is an ongoing process ofcontinuous improvement.

People are the centre of the house because only through

continuous improvement can the operation attain the

system stability.

People must be trained to see waste and solve the root

cause by repeatedly asking the question why.

Growing your leaders rather than purchasing them

The Newsmaker of 2002 by The Automative News

Bill Ford (Ford CEO)

Robert Lutz (GM Executive VP)

Dieter Zetzche (Crysler group President)

Carlos Ghosn (Nissan President)

Fuijo Cho (Toyota President)

Toyota Leaders view of the TPS

Customer First

The Chief Engineer: Critical Link to Innovation, Leadership and Customer Satisfaction.

The Common Themes of Leadership at Toyota

Group Facilitator

“You are Empowered”

Bureaucratic

Manager

“Follow the Rules”

Builder of Learning

Organizations

“Here is Our Purpose

and Direction,

I will Guide and Coach”

Task

Master

“Here is what to do and how

– Do It!”

TOYOTA LEADERSTo

p-D

ow

n

(Dir

ec

tive

s)

Bo

tto

m-u

p

(De

ve

lop

me

nt)

General

Management

Expertise

In-Depth

Understanding

Of Work

Common Traits:Focused on Long-term Purpose as a Value-Added Contributor to Society.Never deviated from the Precepts of the Toyota Way DNA and lived andmodeled their themselves around this for all to see.Worked their way up doing the Detailed Work and continued to Go and Seethe Gemba.Saw Problems as Opportunities to train and coach their people.

The Leaders’ real challenge is having the long-term vision of knowing whatto do, the knowledge of how to do it, and the ability to develop people sothey can understand and do their job excellently.

• Importance of team work• Co-ordinate the work, motivate and learn together• Suggest innovative ideas, even control through peer

pressure• Excellent individual performers are required to make up

teams that excel

Team Size

Team Member

5 ~ 8

Team Leader

3 ~ 4

Group Leader

5 ~ 8

Assistant Manager

4 - 10

Manager

PTMSB

Working Group

Associate

Associate Leader/

Line Keeper

Supervisor

Executive

Head Of Department

• Maslow’s need hierarchy

• Herzberg’s Job enrichment theory

Internal

• Taylor’s scientific Management

• Behaviour Modification

• Goal Setting

External

Motivation

• Find Solid Partners and Grow Together to Mutual Benefit in the Long-Term• Cross-Docking (“Break-Bulk” Facilities)• Partner – Transfreight – Cross-docking needs for Toyota:

• Achieved JIT deliveries despite great distances in North America.• Costs of Transportation went down considerably.• Saves money on returnable containers.• Transfreight continually improving & reducing costs.

• Saving “Sick” Suppliers Through TPS

Learning

Enterprise

Enabling

System

Clear Expectations

Stable, Reliable Processes

Fair & Honorable Business Relations

Next Level

Of Improvement

Stability

SUPPLY CHAIN NEED OF HIERARCHY

Genchi Genbutsu

Deeply understand and report what you see

Genchi Genbutsu - Going to the actual place(Gemba) to see the actual situation forunderstanding

Ohno Circle

See for America, then design for America

Kiichiro Toyoda: “ How can you expect to doyour job without getting your hands dirty”

• Toyota’s leaders see the company as a vehicle for adding value to customers,society, the community and its associates.

• People are most important asset.

• Management on the floor.

• Be responsible. All leaders must take responsibility.

• This strong philosophies have often separated them from their competitors.

• Visual management is one of the lean techniques designed so that anyone entering a work place, even those who are unfamiliar with the detail of the processes, can very rapidly see what is going on, understand it and see what is under control and what isn’t.

Visual management helps you: • Understand and indicate work priorities • See whether performance (usually daily) was met • Identify the flow of work and what is being done • Identify when something is going wrong or not happening • Show what standards of work should be • Provide real time feedback to everyone involved in the whole process

Techniques used in visual management The techniques used to create a visually managed workplace fall into a number of categories: The workplace itself: • Signs • Marked floor areas/hatching • Direction of process flow shown on floor or wall

Visual production control • Production status boards • Kanban visual signals

Autonomation• The machinery automatically stops when there is a problem and attracts attention

Visual performance measurement • Quality charts • Performance charts (dashboard metrics based on KPI’s) • Status of the organisation

Visual safety management • Safety warnings • Precaution information

Today’s standardization ..is the necessary foundation on which tomorrow’s improvement will be based. If you think of “standardization” as the best you know today, but which is to be improved tomorrow- you get somewhere. But if you think of standards as confining , then progress stops.

Toyota’s Standardized

Work

Takt time(time required to complete one job at the pace of customer demands

Inventory on hand the worker needs to have in order to

accomplish the standardized work

Sequence of doing things or sequence of processes

TOYOTA’S Standardized Work

The slower but consistent tortoise causes less waste and is much more desirable than the speedy hare that races ahead and then stops occasionally to doze. The Toyota Production System can be realized only when all the workers become tortoises.

-( Taiichi Ohno, 1988)

-Focuses on what customers want and when they want it.

-Unpredictable customer needs

-stressing people and equipment

-creates piles of inventory, hidden problems and poor quality

Build to Order

Accumulates order and level the schedule

-may able to reduce production lead time

-cut inventories

- Greater customer satisfaction

Toyota production

System

Muda

Waste

Muri

Overburden

Mura

Unevenness

The Three M’s of Toyota Production System

Muda

• Non value added

• Focus of lean manufacturing system- Eliminating Muda

Muri

• Overburdening people or Equipment

• Overburdening people-Results in safety and quality problems

• Overburdening Equipment- Breakdowns and defects

Mura

• Unevenness

• Results from irregular production schedule or fluctuating production volume

Levelling the production both by volume and product mix.

Does not produce according to customer orders Takes total volume of orders and levels them Flexibility to make what customer wants and

when they want it. Reduce risk of unsold goods. Balanced use of labour and machines. Smoothed demand on upstream processes and

plant’s suppliers.

CONCLUSION

Leveled Production (Heijunka)

Stable & Standardized Process

Visual Management

Toyota Way Philosophy

Best Quality – Lowest Cost – Shortest lead Time –

Best Safety – High Morale

Just-in-TimeRight Part, Right Amount,

Right Time

• Takt Time Planning

• Continuous Flow

• Pull System

• Quick Changeover

• Integrated Logistics

Jidoka(In-station Quality)

Make Problems Visible

• Automatic Stops

• Andon

• Person-Machine separation

• Error-proofing

• In-station Quality Control

• Solve Root Cause of Problems

(5 Why’s)

Continuous

Improvement

People & Teamwork• Selection

•Common Goals

• Ringi Decision-making

• Cross-Trained

Waste Reduction• Genchi Genbutsu

• 5 Why’s

• Eyes for Waste

• Problem Solving