Toyota Production System Lean Manufacturing

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Toyota Production System (Lean Manufacturing)

• Joseph Avram
• Christopher Johnson
• Ryan Peterson
• Krishna Vijayakumar
• Cari Zalesiak

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Main Topics

• Logic of lean production
• Evolution of lean production
• Implementation
• Current Applications

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Scale it Back, Make it Simple, Let it Flow

• Problem
• Too much
• Cause
• Idea more is better
• Solution
• Think lean

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Lean Logic

• What is Lean
• High volume production using minimal inventories
• Elimination of waste
• High levels of quality
• Smooth flow of work

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Lean Logic (continued)

• Lean is difficult to achieve
• Understood and performed by all employees
• Requires creative thinking
• The result of becoming lean
• Right place, right time, right quantity
• Keeping it simple

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Elements of Lean Manufacturing

• Basic Concept
• Continuous pursuit of improving the processes
• Eliminating all non-value adding activities and
  reducing waste within an organization

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Seven Types of Waste (Fujio Cho)

• Waste from Overproduction
• Making either unneeded, excess goods or
  making needed goods too early or in too large a
  quantity
• Waste of Waiting Time
• Queuing delays coming from people, processes, or
  work-in-progress (WIP) inventory sitting idle
  while waiting for instructions, information, raw
  materials, or any other resources.

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Seven Types of Waste (Fujio Cho)

• Transportation Waste
• Unneeded movements occur when goods are
  physically far apart, and require moving and
  handling devices to be repeatedly repositioned
  for the next step in the process
• Inventory Waste
• Stock that is sitting and accumulating cost
  without necessarily providing value is a costly
  way to cover up quality problems

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Seven Types of Waste (Fujio Cho)

• Processing Waste
• Poor process design can lead to producing
  better products or services than a customer needs
  or is ready to pay for.
• Waste of Motion
• Unnecessary movement activities of people,
  product, or equipment do not add value to a
  process.

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Seven Types of Waste (Fujio Cho)

• Waste from Product Defects
• Result of not having preventive systems
  including failsafe techniques. When defect is
  passed on to the next level, loss incurs.

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Elimination of Waste

• Focused factory networks
• Group technology
• Quality at the source
• JIT production
• Uniform plant loading
• Kanban production control system
• Minimized setup times

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Minimizing Waste Focused Factory Networks
These are small specialized plants that limit the
range of products produced (sometimes only one
type of product for an entire facility)
Some plants in Japan have as few as 30 and as
many as 1000 employees
Coordination
System Integration
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Focused Factory Networks

• Strives for a narrower range of products
• Smaller factory and fewer key manufacturing tasks
• Optimizes performance on a few dimensions
• Does a better job because repetition and
  concentration in one area allows its work force
  and managers to become effective and experienced
  in the task required for success

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Minimizing Waste Group Technology

• Philosophy in which similar parts are arranged
  into families, and processes to make parts are
  arranged in specialized work cell
• Using Departmental Specialization for plant
  layout can cause a lot of unnecessary material
  movement
• They simplify schedules, reduce transportation
  and ease supervision

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Minimizing Waste Quality at the source

• Do it right the first time
• When something goes wrong, stop the process
  immediately and address
• Workers are trained and empowered to control
  their own process

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Minimizing Waste JIT Production

• Produce what is needed when it is needed
• Intended for repetitive manufacturing
• Low inventory, ordered only as needed

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Minimizing Waste Inventory Hides Problems
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• Producing products in a specific uniform cycle
• Overcomes the queuing and line stoppage problems
  associated with traditional manufacturing
• Basing the production rate on an estimate of how
  many units per hour must be processed at each
  work center in order to meet market demand Takt
  time

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Uniform Plant Loading

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• Used to pull parts to the next production stage
  only when they are needed.
• Uses simple, visual signals to control the
  movement of materials between work centers
• It identifies the part number and container
  capacity, along with other information, and is
  used to provide an easily understood, visual
  signal that a specific activity is required

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Minimizing Waste Kanban Production Control
Systems
This puts the system back were it was before the
item was pulled
Once the Production kanban is received, the
Machine Center produces a unit to replace the one
taken by the Assembly Line people in the first
place
Withdrawal kanban
Storage Part A
Storage Part A
Machine Center
Assembly Line
Production kanban
Material Flow Card (signal) Flow
The process begins by the Assembly Line people
pulling Part A from Storage
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Determining the Number of Kanbans Needed

• Setting up a kanban system requires determining
  the number of kanbans cards (or containers)
  needed
• Each container represents the minimum production
  lot size
• An accurate estimate of the lead time required to
  produce a container is key to determining how
  many kanbans are required

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The Number of Kanban Card Sets
k Number of kanban card sets (a set is a
card) D Average number of units demanded over
some time period L lead time to replenish an
order (same units of time as demand) S Safety
stock expressed as a percentage of demand during
leadtime C Container size
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Minimizing Waste Minimized Setup Times

• Machines need to be quickly setup to produce
  mixed models in the line.
• Small lots with shorter setup times increase
  flexibility to respond to demand changes
• Setups divided into internal and external
  activities
• Internal setups must be done when machine is
  stopped while external ones can be done when
  machine is running

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The Evolution of Lean Production
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Prior to the Ford Era

• Eli Whitney
• Is said to have introduced interchangeable parts
• Preached the importance of interchangeable parts
• Bessemer Process
• First inexpensive industrial process for the mass
  production of steel
• Decreased cost, drastically increased scale and
  speed, while decreasing labor requirements

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Cont.

• Fredrick W. Taylor
• Time study
• Standardized work
• The Principles of Scientific management (written
  in 1911)
• Concerned with profit
• Frank Lillian Gilbreth
• Motion pictures to analyze diverse operations
• Concerned with workers welfare

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Cont.

• Frank Gilbreth
• Focus on work elements occurring between official
  elements
• Brick laying
• Medical surgeries
• Rapid disassembly and reassembly of military
  weapons used worldwide

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Brick Study Results
Original Gilbreth Method Method Motion
s Per Brick 18 5 Bricks Per Hour
175 350 Productivity Increased To
200
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Cont.

• Lillian Gilbreth
• Lillian brought psychology into the mix
• Studied motivations of workers
• How attitudes affect outcome of a process

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The Ford Era.

• Henry Ford
• Developed mass assembly manufacturing system
• First comprehensive
• manufacturing strategy
• Design for manufacturing
• Removal of fitters from
• production line

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The Ford Era.

• Start with an article that suits and then study
  to find some way of eliminating the entirely
  useless partsAs we cut out useless parts and
  simplify necessary ones, we also cut down the
  cost of makingbut also it is to be remembered
  that all the parts are designed so that they can
  be most easily made
• - My Life and Work, 1921

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The Ford Era.

• Henry Ford
• Reclaiming lost motion
• Minimization, salvaging and recycling scrap
  materials
• Today Tomorrow (written in 1926) lays
  foundation for contemporary manufacturing
  systems
• Downfall Ford refused to change his system once
  the world began to change

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Cont.

• Alfred P. Sloan
• Managing diverse operations with financial
  statistics such as return on investment
• Developed the concept of Planned Obsolescence
• Created a pricing structure for all of GM
• Criticism
• Sloans method values inventory as the same as
  cash
• Does not value employees the same as Toyota,
  floor workers are expendable

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The Beginning of Toyota

• Kicciro Toyoda
• Must stop the repairing of poor quality by
  intense study of each stage in process
• Scheduling of work should be driven by actual
  sales
• Push (build to order)

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The Beginning of Toyota

• Taiichi Ohno Shigeo Shingo
• Incorporation of Ford Production other
  techniques
• Toyota Production system
• Organizes manufacturing and logistics
• Includes the interaction with suppliers and
  customers
• Main goals
• Design out overburden (Muri)
• Design out inconsistency (Mura)
• Eliminate waste (Muda)

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Toyota Lean Production

• Implementation

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Toyota Production System

• Just-in-time
• Making only what is needed, when it is needed,
  and in the amount needed.
• Jidoka
• Automation with a human touch.
• When a problem occurs, stop the process
  immediately.

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Origins of Just-in-time

• Taiichi Ohno 1956
• Trip to the Supermarket
• Smooth Flow
• Customers The Process
• The Supermarket Preceeding Process

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Leveling Through the Market

• Step 1 Determine estimated production for month
• 3-Month Forecasts
• Materials Requirement Plan
• Parts Delivery Tables
• Step 2 Determine daily production schedule
• Sales Division
• Monthly Sales Plans/Forecasts
• Receipt of 10 Day Orders
• Receipt of daily revisions
• Manufacturing
• Transmits feed in sequence schedules to assembly
  and suppliers

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Leveling Through the Supply Chain

• Parts Delivery Tables
• Estimate Daily Deliveries
• Value Added Networks (VAN)
• Online Link for Toyota and Suppliers
• Parts Transport
• Load Sharing
• Shared Third Party Delivery Service
• Distribution Centers
• Near Assembly Facilities

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Just-in-time Kanban

• Developed by Taiichi Ohno
• Supermarket
• Authorizes Production or Movement
• Kanban Process Terminology
• Signboard in Japanese
• Pull System
• Upstream

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Kanban Types

• Production Instruction
• Instructs what to produce and in what quantity
• Removed when parts are transferred to the next
  process
• Instructs to produce another lot when removed
• Parts Retrieval
• Communicates what parts have been used
• Removed when parts are produced
• Taken to preceeding process to retrieve parts

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Kanban Conceptual Diagram
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Kanban Utilization Methods

• Cards
• Squares
• Containers
• Colored Golf Balls
• E-cards

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Kanban Advantages

• Lower Inventories
• Lower Cost
• Purchases and storage
• Greater flexibility
• Smooth Production Flow
• Minimal Waste of Human Effort

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Other Just-in-time Implementation Tools

• Facility
• Arrangement
• Order of the processes
• Order that value is added
• Flexibility
• Minimization of machine set-up times
• Production flexibility
• Welding robots and painting systems

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Jidoka

• Origins of Jidoka
• Andon Boards
• Other Quality Tools and Techniques

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Jidoka Origins

• Sakichi Toyoda
• Automatic loom, 1896
• Designed to stop automatically, 1924
• Broken vertical thread
• Horizontal thread did not appear
• Transferred quality responsibility to machines
• Elimination of defective products
• Waste reduction
• Poka Yokes

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Andon Boards

• Visual Control
• Lanterns in Japanese
• Display current state of work
• Alert operators to stoppages or abnormalities
• Displays automatic and manual shutdowns
• Advantages
• Cost/labor reduction
• Multi-skilled workers

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Toyota Andon Board
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Other Jidoka Implementation Tools

• MBWA Management By Wandering Around
• Marketplace
• Production plans
• Layers of why
• Ask yourself why 5 times
• Often leads to the problems true essence
• Creativity in insanity?
• Experiences not possible under normal conditions
• Potential to rise above normalcy

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Toyota Production SystemOther Current
Applications

• Construction
• Software Development
• Health Care

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Common Theme

• Refining methods to eliminate waste
• Redesign Flow Process
• Total Quality Control
• Stabilize Schedule
• Kanban Pull
• Work with Vendors
• Reduce Inventory
• Improve Product Design

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Current ApplicationsConstruction

• Focus on process improvements
• Computer simulations can help model processes and
  test improvements (example - Simphony )
• Simulation output can help identify goals for
  current and optimal process flows
• Operational production rates
• Resource utilization
• Material cycle times (materials trucks)

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Current ApplicationsConstruction Cont.
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Current ApplicationsConstruction Cont.

• Increased collaboration between project
  participants
• Architects, Engineers, Constructors, Suppliers,
  Owner, End Users
• Goes beyond usual contractual meeting
  arrangements
• Improves Quality
• Decreases Material Cycle Times
• Increases Production Rates

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Current ApplicationsSoftware Development

• Elimination of Waste
• Extra features
• Unnecessary Requirements
• Extra development steps
• Bugs not caught by tests
• Bugs caused by poor implementation
• Waiting time for decisions

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Current ApplicationsSoftware Development Cont.

• Kanban/Self-pulling system
• At frequent intervals teams review what needs to
  be done and prompts for more information or
  resources from the customer. Requires
  transparency which is beneficial for team
  communication and project success

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Current ApplicationsSoftware Development Cont.
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Current ApplicationsHealth Care

• Elimination of waste through process improvement
• Product is any patient visit
• Backed by the Institute for Healthcare
  Improvement
• Case Study Virginia Mason Hospital

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Current Applications Health Care

• Virginia Mason Case study details
• Patient First as the driver for all processes
• The creation of an environment in which people
  feel safe and free to engage in improvement
  including the adoption of a No-Layoff Policy
• Implementation of a company-wide defect alert
  system called The Patient Safety Alert System.
• anyone can contact the patient safety dept, and
  an administrator, manager, or process owner will
  assess the situation. alerts were usually systems
  issues, medication errors,and problems with
  equipment or facilities (example wristband
  incident)

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Current Applications Health Care Cont.

• Virigina Mason case study details cont
• Encouragement of innovation and trystorming
  (beyond brainstorming, trystorming involves
  quickly trying new ideas or models of new ideas)
• Creating a prosperous economic organization
  primarily by eliminating waste
• Accountable leadership

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Current Applications Health Care Cont.
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Conclusion

• Topics Covered
• Lean Logic
• Implementation
• History
• Current Applications
• Central Theme
• eliminating waste while increasing production
  leads to excellence in operation management

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Conclusion

• The true essence of the new management system
  assumes the elimination of waste in the
  production workplace and the actualization of
  cost reduction. It must be equipped with a
  powerful engine that can adapt to the ever
  changing needs of the market, aggressively raise
  questions, and promote the research and
  development of new products and techniques.
• Taiichi Ohno