TOYOTAToyota

SCOPE OF PRESENTATION

History

Taiichi Ohno

Toyota Production System

Hard Aspects

Soft Aspects

HISTORY OF TOYOTA

Back to 1887, Sakichi Toyoda diversified into Textile machinery business from Carpentry

Founded Toyota Group in 1902

Invented Power Loom

Invented automatic loom in 1926

Founded Toyota Automated Loom Works (TALW)

Sakichi’s son Kiichiro, an engineer from Toyota University

Interested in automobiles & engines

In 1929, visited to US & Europe studied at Ford

In 1933, establishment of department within TALW

1935 first prototype, 1947 Production

HISTORY OF TOYOTA

TAIICHI OHNO Born 1912, Manchuriya, China

Joined TALW in 1932

Experimented with production machines

2nd world war faced challenge of Customer satisfaction with efficient production

Founded JIT, Kanban

Vice president by 1975

Died in 1990 at Toyota City

TOYOTA PRODUCTION SYSTEM

TOYOTA PRODUCTION SYSTEM

Toyota’s Aspects

Hard- Technical

JIT

Kanban

Kaizen

Lean

Soft – People Respect

Human Element

Jidoka

JUST IN TIME Only the necessary products, at the necessary

products, at the necessary time & in the necessary quantity

Motto- Speed without continuity is meaningless

Reverse reasoning like working on customer demand – Pull system

Elimination of inventory ultimate aim

Difficult to anticipate future demand so to overcome that ‘Kanban’ implemented

KANBAN Means ‘signboard’

Toyota achieve a high level of outsourcing

A Withdrawal Kanban- the subsequent process should withdrawn from preceding

A Production Kanban- the preceding process must produce

All process connected

KAIZEN Continuous improvement

Changes incremental & small rather than system-wide & revolutionary

Ohno – “go to gemba everyday, and when you go, don’t wear out the soles of your shoes in vain, you should come back with at least one idea for Kaizen”

‘Five whys’ important part of Kaizen

Poka-Yoke or Error Proofing

BACKGROUND OF LEAN

John Krafcik in his 1988 article "Triumph of the Lean Production System"

derived mostly from the Toyota Production System

increasing efficiency, decreasing waste, and using empirical methods to decide what matters

Lean may be defined as Eliminate waste & non value added

activity Practice respect for people

LEAN... to maximize customer value while minimizing

waste

creating more value for customers with fewer resources

The ultimate goal is ZERO WASTE

less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects

LEAN MANUFACTURING

HUMAN ELEMENT

Elimination of wasteful movements by workers

Consideration for workers safety Workers were cross trained & could be

shifted between different production lines –”Shijinka”

Visible control – autonomy of workers to improve process

Vendors are real King maker Vendors are suppliers & Workers are

resources

JIDOKA Process owned by workers so can stop

anytime to improve it

Faith in ability of thinking

automation with a human touch

Quality control process having four principle 1) Detect the abnormality. 2) Stop 3) Fix or correct the immediate condition. 4) Investigate the root cause and install a

countermeasure.

TOYOTA TODAY… Five days for car manufacturing from

raw material to final car Kaizen & Jidoka ensured high level of

quality “Toyota’s success is led by unusual

quality delivered at very competitive prices”

Strong relationship with the suppliers Biggest challenge – time for

implementation To promote TPS free services &

consultancy started by Toyota in 1990.

TOYOTAS TOP SELLING CARS Toyota Corolla

Toyota Camry

Toyota Yaris/Vitz/Vios

Toyota HiLux

Toyota Prius

Toyota Corolla- 10,97,132

TOYOTA PRIUS – 8,95,456

TOYOTA CAMRY - 797,466

“ THE TOYOTA PRODUCTION SYSTEM HAS TO EVOLVE CONSTANTLY TO COPE WITH SERVE COMPETITION IN THE LARGE GLOBAL MARKETPLACE”

Thank You