TPS Overview History

8/3/2019 TPS Overview History

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2.810 T.G.Gutowski 10/29/01 1

The Toyota Production System

High Quality and Low Cost

Readings;

James Womack, Daniel T. Jones and Daniel Roos,The Machine that Changed the World, 1990, Ch 3 and 4

Kenneth N. McKay, “The Evolution of Manufacturing Control-

What Has Been, What Will Be” Working Paper 03 – 2001

Michael McCoby, “Is There a Best Way to Build a Car?” HBR Nov-Dec 1997

COST VSDEFECTS



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Consumer Reports



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September January - September

Units % Share DSR Vol

Current Year -Ago Current Year -Ago % Chg. Current Year -Ago % Chg.

Domestic Cars 431,496 481,318 35.3 37.3 -2.6 4,594,203 4 ,865,569 -5.6Import Cars 170,554 158,897 13.9 12.3 16.7 1,708,780 1,566,286 9.1

Total Cars 602,050 640,215 49.2 49.7 2.2 6,302,983 6 ,431,855 -2.0

Domestic Light Trucks 545,865 573,329 44.6 44.5 3.5 5,769,260 5,621,805 2.6

Import Light Trucks 75,999 75,575 6.2 5.9 9.3 798,656 711,178 12.3

Total Light Trucks 621,864 648,904 50.8 50.3 4.2 6,567,916 6,332,983 3.7

Domestic Light Vehicles 977,361 1,054,647 79.9 81.8 0.7 10,363,463 10,487,374 -1.2

Import Light Vehicles 246,553 234,472 20.1 18.2 14.3 2,507,436 2,277,464 10.1

Total Light Vehicles 1,223,914 1,289,119 100.0 100.0 3.2 12,870,899 12,764,838 0.8

Ward's U.S. Light Vehicle Sales Summary

Toyota vehicle sales

2002



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1. Historical View

2. Performance measures

3. Elements of TPS

4. Six Eras of Manufacturing Practice

5. Difficulties with Implementation



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Three Major Mfg Systemsfrom 1800 to 2000

1800 1900 2000

Machine tools, specialized machine tools, Taylorism, SPC, CNC, CAD/CAM

InterchangeableParts at U.S. Armories

MassProductionat Ford

ToyotaProductionSystem



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Key Elements for New Mfg Systems

Element/

System

Need of Society

Work ForceMotivation

EnablingTechnology

Leader Resources

Interchange-

able Parts

Military “Yankee

Ingenuity”

Machine

Tools,

Division of

Labor

Roswell

Lee/

John

Hall

U.S.

Govt

Mass

Production

Trans-

portation

$5/day

Immigrant

Moving

AssemblyLine,etc

Henry

Ford

Earnings

ToyotaProductionSystem

Post War Jobs,

Security

CNC,Integrationof Labor

Taiichi

Ohno

Japanese

Banks



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Q. By what method did thesenew systems come about?

A. Trail and Error



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History of the Development of the ToyotaProduction System ref; Taiichi Ohno

1945 1975



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1. Historical View


3. Elements of TPS





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Japanese Japanese in American in All Europe

in Japan North America North America

Performance:

Producviti ty (hours/Veh.) 16.8 21.2 25.1 36.2

Quality (assembly

defects/100 vehicles) 60 65 82.3 97

Layout:

Space (sq.ft./vehicle/yr) 5.7 9.1 7.8 7.8

Size of Repair Area (as %

of assembly space) 4.1 4.9 12.9 14.4

Inventories(days for 8

sample parts) 0.2 1.6 2.9 2

Work Force:

% of Work Force in Teams 69.3 71.3 17.3 0.6

Job Rotation (0 = none,

4 = frequent) 3 2.7 0.9 1.9

Suggestions/Employee 61.6 1.4 0.4 0.4

Number of Job Classes 11.9 8.7 67.1 14.8Training of New Production

Workers (hours) 380.3 370 46.4 173.3

Absenteeism 5 4.8 11.7 12.1

Automation:

Welding (% of direct steps) 86.2 85 76.2 76.6

Painting(% of direct steps) 54.6 40.7 33.6 38.2

Assembly(% of di rect steps) 1.7 1.1 1.2 3.1

Source: IMVP World Assembly Plan t Survey, 1989, and J. D. Power Ini tia l Quali ty Survery, 1989

Summary of Assembly Plant Characteristics, Volume Producers,1989(Average for Plants in Each Region)



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Cost Vs DefectsRef. “Machine that Changed the World” Womack, Jones and Roos



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1. Historical View


3. Elements of TPS





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How do you get this kind of performance?

1. Womack, Jones and Roos

2. J T. Black’s 10 Steps

3. Demand Flow Technology’s 9 Points

4. MSDD, D. Cochran and Students



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Womack Jones and Roos

Automation? Yes, but….

DFM? Probably

Standardized Production? No!

Lean Characteristics? Integration of Tasks

Identification and removal of defects



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Cost Vs AutomationRef. “Machine that Changed the World” Womack, Jones and Roos



2.810 T.G.Gutowski 10/29/01 16

J T. Black’s 10 Steps Ref; JT. Black “Factory with a Future” 1991

1. Form cells

2. Reduce setup

3. Integrate quality control

4. Integrate preventive maintenance5. Level and balance

6. Link cells – KANBAN

7. Reduce WIP

8. Build vendor programs9. Automate

10. Computerize



2.810 T.G.Gutowski 10/29/01 17

Demand Flow Technology’s9 Points

1. Product Synchronization

2. Mixed Model Process Maps

3. Sequence of Events

4. Demand at Capacity

5. Operational Cycle Time

6. Total Product Cycle Time

7. Line Balancing8. Kanbans

9. Operational Method Sheets



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Current Value Stream Map



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Future Value Stream Map



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Manufacturing System DesignDecomposition (MSDD)

ROI

Sales Costs Investments

Lower level actions

quality predictable output delay reduction

- s resolving problems s m



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J T. Black –1, 2

1. Form Cells

Sequential

operations,decouple operatorfrom machine,parts in families,

single piece flowwithin cell

2. Reduce Setup

Externalize setup

to reduce down-time duringchangeover,increases flexibility



2.810 T.G.Gutowski 10/29/01 22

TPS Cell



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Standardized Fixtures



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J T. Black – 3, 4

3. Integrate qualitycontrol

Check part qualityat cell, poke-yoke,stop productionwhen parts are bad

4. Integrate preventivemaintenance

worker maintainsmachine , runsslower



2.810 T.G.Gutowski 10/29/01 25

J T. Black – 5, 6

5. Level and balance

Produce to Takt

time, reduce batchsizes, smoothproduction flow

6. Link cells- Kanban

Create “pull”

system – “Supermarket” System



2.810 T.G.Gutowski 10/29/01 26

J T. Black – 7, 8

7. Reduce WIP

Make system

reliable, build inmechanisms to self correct

8. Build Vendorprogram

Propagate low WIPpolicy to yourvendors, reducevendors, make on-

time performancepart of expectation



2.810 T.G.Gutowski 10/29/01 27

Manufacturing System DesignDecomposition (MSDD)

ROI

Sales Costs Investments

Lower level actions

quality predictable output delay reduction

- s resolving problems s m



2.810 T.G.Gutowski 10/29/01 28

Example from Cochran – Minimize production disruptions

DP - P1 Predictable production resources (people, equipment, info) FR - P1 Minimize production disruptions

FR - P12 Ensure

predictable

equipment

output FR - P11 Ensure

availability of

relevant

production

information

FR - P14 Ensure

material

availability FR - P13 Ensure

predictable

worker output

DP - P12 Maintenance of

equipment

reliability DP - P11 Capable and

reliable

information system

DP - P14 Standard

material

replenishment

system DP - P13 Motivated

work - force

performing

standardized

work FR - P133 Do not interrupt

production for

worker

allowances FR - P131 Reduce

variability of

task completion

time DP - P133 Mutual Relief

System with

cross - trained

workers DP - P131 Standard work

methods to

provide

repeatableprocessing time

FR - P132 Ensure

availability of

workers DP - P132 Perfect

Attendance

Program DP - P142 Parts moved to

downstream

operations

according to

pitch

FR - P142 Ensure proper

timing of part

arrivals DP - P141 Standard work

in process

between sub - systems

FR - P141 Ensure that

parts are

available to the

material

handlers FR - P121 Ensure that

equipment is

easily

serviceable DP - P121 Machines

designed for

serviceability

FR - P122 Service

equipment

regularly DP - P122 Regular

preventative

maintenance

program

DP - P1 Predictable production resources (people, equipment, info) FR - P1 Minimize production disruptions

FR - P12 Ensure

predictable

equipment

output FR - P11 Ensure

availability of

relevant

production

information

FR - P14 Ensure

material

availability FR - P13 Ensure

predictable

worker output

DP - P12 Maintenance of

equipment

reliability DP - P11 Capable and

reliable

information system

DP - P14 Standard

material

replenishment

system DP - P13 Motivated

work - force

performing

standardized

work FR - P133 Do not interrupt

production for

worker

allowances FR - P131 Reduce

variability of

task completion

time DP - P133 Mutual Relief

System with

cross - trained

workers DP - P131 Standard work

methods to

provide

repeatableprocessing time

FR - P132 Ensure

availability of

workers DP - P132 Perfect

Attendance

Program DP - P142 Parts moved to

downstream

operations

according to

pitch

FR - P142 Ensure proper

timing of part

arrivals DP - P141 Standard work

in process

between sub - systems

FR - P141 Ensure that

parts are

available to the

material

handlers FR - P121 Ensure that

equipment is

easily

serviceable DP - P121 Machines

designed for

serviceability

FR - P122 Service

equipment

regularly DP - P122 Regular

preventative

maintenance

program



2.810 T.G.Gutowski 10/29/01 29

Some Basics Concepts of TPS

1. Smooth Flow and Produce to Takt Time

2. Produce to Order

3. Make system “observable” and correct

problems as they occur

4. Integrate Worker Skills



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Two Examples;

1.Takt Time

2.Pull Systems

T kt Ti



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Takt Time – to pace production

DemandProduct

TimeAvailableTimeTakt

Calculate Takt Time per month, day,

year etc. Available time includes allshifts, and excludes all non-productive time (e.g. lunch, clean-upetc). Product demand includes over-

production for low yields etc.



2.810 T.G.Gutowski 10/29/01 32

Takt Time

Automobile Assembly Line; Available time = 7.5 hr

X 3 shifts = 22.5 hrs or 1350 minutes per day.

Demand = 1600 cars per day. Takt Time = 51 sec

Aircraft Engine Assembly Line; 500 engines per

year. 2 shifts X 7 hrs => 14 hrs/day X 250 day/year

= 3500hrs.Takt time = 7 hrs.



2.810 T.G.Gutowski 10/29/01 33

Engines shipped over a 3 monthperiod at aircraft engine factory “B”

0

2

4

6

8

10

12

7-Jun 15-J un 23-J un 30- Jun 7-J ul 15- Jul 24-J ul 31-J ul 7-A ug 15-A ug 24- Aug 31-A ug

Weeks

month 1 month 2 month 3



2.810 T.G.Gutowski 10/29/01 34

Engines shipped over a 3 monthperiod at aircraft engine factory “C”

0

1

2

3

4

5

6

7

may june july august

weeks

O ti f f



2.810 T.G.Gutowski 10/29/01 35

On-time performance of engine plants

A B C

0%

20%

40%

60%

80%

100%

e n g i n e s

d e l i v e r e d

A B C

on

time

late

on

time

on

time

late



2.810 T.G.Gutowski 10/29/01 36

Push and Pull Systems

Machines

Parts Orders

1 2 3 4

P sh S stems



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Push Systems – Order arrives at the front of the system and is produced in theeconomical order quantity.Q. How long did it take for the order to go through the system?

Time = 3

Time = 2

Time = 4

Time = 1

Time = 0

P ll S t



2.810 T.G.Gutowski 10/29/01 38

Pull Systems-The order arrives at the end of the line and is “pulled” out of thesystem. WIP between the machines allows quick completion.

Pros and Cons;

Pull can fill small orders quickly, but

must keep inventory for all parttypes. Design can help here but notin all cases.



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Comparison in delivery times

If the process time per part is “t”, and thebatch size is “n”, it takes “Nnt” time to

process a batch through “N” steps. Todeliver one part it takes;

“Nnt” time from a push system plus

setup and transportation delays, and “t” for a pull system.

See HP Video



2.810 T.G.Gutowski 10/29/01 40

HP Video Results

Push system (6) Pull (3) Pull (1)

Space 2 Tables 2 Tables 1 Table

WIP 20 12 4

CycleTime 3:17 1:40 19 sec

Rework Units 26 10 3

Quality prob. hidden visible visible

Production Rate

L=W

6.1 parts per

minute

7.2 12.6



2.810 T.G.Gutowski 10/29/01 41

HP Video Results Revisited

Push system (6) Pull (3) Pull (1)

Space 2 Tables 2 Tables 1 Table

WIP = L 20

6X =24

12

3X =12

4

1X =4CycleTime = W 3:17

6t(3:20 or 2:00)

1:40

3t(1:40 or 40)

19 sec (say 20)

1t (50 or 20)

Rework Units

~WIP

26 10 3

Quality prob. hidden visible visible

Production Rate

L=W

6.1 parts per

minute

7.2 12.6

4/50/60=4.8

So what are the advantages of



2.810 T.G.Gutowski 10/29/01 42

So what are the advantages of the pull systems?

continuous (synchronous) flow

single piece flow capabilities

observable problems(if stopped = problem)

sensitive to state of the factory

(if no part = problem)

possible cooperative problem solving



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1. Historical View


3. Elements of TPS



Six Eras of Manufacturing



2.810 T.G.Gutowski 10/29/01 44

Six Eras of ManufacturingPractice, Ken McKay

1. Pioneering

2. Systemization

3. Technology and Process

4. Internal Efficiency

5. Customer Service

6. Systems Level Re-engineering



2.810 T.G.Gutowski 10/29/01 45

Ken McKay – 1, 2

1. Pioneering -sellers market,

competition is notby manufacturinglarge marginsemphasize

throughput notefficiency

2. Systemization - firmgrows and system getscomplex grossinefficiency becomesapparent, competitionbegins to make itspresence felt. Need forstandard operating

procedures, demandstill high, inventoryused to buffer againstinstabilities.



2.810 T.G.Gutowski 10/29/01 46

Ken McKay – 3, 4

3. Technology andProcess – competitionis increasing, sales aresoftening,manufacturing is still inearly maturity andcompetition is limitedto firms in similar

situation. Focus shiftsfrom increasingproduction rate toincreasing the amountof product per unit

time.

4. Internal Efficiency - competition “cherrypickers” enter the marketthey don’t offer all of the

options and parts service butfocus on the 20% whichyields 80% of the revenuestream. Internal plant is putinto order, problems arepushed outside to suppliers,

best in class, bench markingidentifies the silver bullet.Still using inventory tocushion production supportvariety, and maintainfunctional features.



2.810 T.G.Gutowski 10/29/01 47

Ken McKay- 5, 6

5. Customer Service -talk to the

customer, identifycore competency,outsource, beresponsive, reduce

lead time, eliminatefeature creep,focused factory etc.

6. System Level Re-engineering - firmshave addressed the

internal system andfactory – no more tosqueeze out – look toimproving indirect andoverhead, era of “mass” customization, supplychain development.



2.810 T.G.Gutowski 10/29/01 48


1. Historical View


3. Elements of TPS4. Six Eras of Manufacturing Practice




2.810 T.G.Gutowski 10/29/01 49

TPS Implementation

Physical (machine placement, standard

work etc) part

Work practices and people issues

Supply-chain part

Corporate Strategy

Work practices and people



2.810 T.G.Gutowski 10/29/01 50

Work practices and peopleissues

Failed TPS attempts; GM Linden NJ,GM-Suzuki, Ontario Canada. Successes

GM NUMMI, Saturn. see MacCoby art “Innovative” Work Practices Ref; C.Ichniowski, T. Kochan et al “What

Works at Work: Overview and Assessment”, Industrial Relations Vol 35No.3 (July 1996)

Examples of “Innovative”



2.810 T.G.Gutowski 10/29/01 51

Examples of Innovative Work Practices

Work Teams

Gain Sharing

Flexible Job Assignments

Employment Security

Improved Communications

“What Works at Work:



2.810 T.G.Gutowski 10/29/01 52

What Works at Work:Overview and Assessment”,

Conclusion 1; “Bundling”

Innovative human resource management

practices can improve business productivity,primarily through the use of systems of related work practices designed to enhanceworker participation and flexibility in the

design of work and decentralization of managerial tasks and responsibilities.




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Conclusion 2; “Impact”

New Systems of participatory work

practices have large economicallyimportant effects on the performance of the businesses that adopt the new

practices.




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Conclusion 3; “Partial Implementation”

A majority of contemporary U.S. businesses now

have adopted some forms of innovative work practices aimed at enhancing employee participationsuch as work teams, contingent pay-for-performancecompensation, or flexible assignment of multiskilledemployees. Only a small percentage of businesses,

however, have adopted a full system of innovativework practices composed of an extensive set of thesework practice innovations.




2.810 T.G.Gutowski 10/29/01 55


Conclusion 4; “Barriers to Implementation”

The diffusion of new workplace innovations is limited,especially among older U.S. businesses. Firms face a number of

obstacles when changing from a system of traditional work practices to a system of innovative practices, including: theabandonment of organization change initiatives after limitedpolicy changes have little effect on performance, the costs of other organizational practices that are needed to make newwork practices effective, long histories of labor-management

conflict and mistrust, resistance of supervisors and otherworkers who might not fare as well under the newer practices,and the lack of a supportive institutional and public policyenvironment.



2.810 T.G.Gutowski 10/29/01 56

Barriers to Implementation

Early abandonment

Costs

History of conflict and distrust

Resistance of supervisors

Lack of supportive infrastructure



2.810 T.G.Gutowski 10/29/01 57

Summary

High quality and low cost ( and originally lowvolumes)

Relationship to previous systems (see McKay

paper), yet new,………. in fact revolutionary

Many elements

Overall, see ”The Machine that Changed the

World” Cells, next time

People, see Maccoby Article



Summary …….. continued

“Autonomation” automation with a

human touch

Worker as problem solver

TRUST

Documents

TPS Overview History