Project Report on Toyota Production System (TPS)

INTRODUCTION

Toyota is one of the leading manufacturers of vehicles around the world, one of the reasons behind the success of Toyota is TOYOTA PRODUCTION SYSTEM (TPS).

TPS was first initiated by Taichii Ohno Toyoda in 1953. TPS is a set of principles followed by Toyota Ltd to increase the effectiveness and efficiency of the organization. TPS has helped Toyota to reach greater heights.

The following are some of the major companies following TPS:

1. Dell2. Harley Davidson3. Coca-Cola4. Xerox Corporations5. General Motors, etc.

AIM

The aim of TPS is to-

1. Produce high quality products.2. Decrease the cost.3. Decrease the delivery time.

TPS also aims at eliminating waste, reducing over production etc, thereby increasing efficiency and effectiveness.

PRINCIPLES OF TPS

The major principles of TPS are as follows:

1. Just In Time (JIT)The Just In Time Methodology refers to making the inventory available only at the time of need. The idea of JIT was given by Taichii Toyoda after visiting a supermarket. He noticed that in supermarkets once the goods in the counter are almost over, the workers notice it and fill the counter with goods required for certain more period of time. JIT helps in reducing wastage of time and money. It also helps in reducing inventory cost.EX- Harley Davidson started using JIT after the first world war and they were able to cut down their inventory cost by 75% and were able to make more profits.

2. Takt TimeTakt Time is the time taken to produce one particular component.

3. KanbanKanban refers supply of components which is regulated through the use of an instruction card sent along the production line. The main idea behind kanban is to deliver what the process needs exactly when it needs it.

4. KaizenKaizen refers to continuous improvement.Ex- Sony in 1980s was producing 3,00,000 CDs per month, but after adopting Kaizen they were able to produce 29 million CDs per month.

5. JidokaJidoka refers to making abnormalities visible. The workers in Toyota Production House can stop the production at any time, if they find an abnormality. This helps in finding the solution to the problem instantly when the problem is identified.

6. Genchi GenbutsuIt refers to going to the source of the problem to find out the problem.Ex- Coca-Cola industries follow this method, they got to the root of the problem to find the cause so that the problem doesn’t occur again the future.

7. Andon BoardAndon Board is a display board, every fault that occurs is displayed on the Andon Board. If the number displayed on the board is 5, it means that the defect is severe and if it is 10, it means it is less severe.

8. Poka YokePoka Yoke means “Fail Safe” It is a process which helps the equipment operator to avoid mistakes. The purpose is to eliminate product defects by preventing, correcting, or drawing attention to errors as they occur.

9. MudaMuda refers to elimination of waste and to combine time and work to increase efficiency.

10. HeijunkaIt means that work scheduling and work cycle are monitored and coordinated with detailed scheduling.

11. ChallengeChallenge refers to improving the work better than it is now thereby increasing efficiency, quality and lowering the cost.

12. TeamworkTeamwork refers to the coordination of the team members to unite and work together. Toyota conducts several meetings to take suggestions from the workers. In an year they get around 3000 suggestions of improvement, this helps them to work even much better.

13. RespectRespecting the employees, the customers and each other is the major force which keeps the employees united and increases their dedication towards the work.

IMPLEMENTATION FAILURE

TPS is a very good tool to increase efficiency but if not implemented properly, it may cause disaster. During 1980s when several Japanese machines came, Xerox Corporations lost its market, In order to regain its market, Xerox adopted the JIT technique and slashed down the number of suppliers from 5000 to 300. Xerox treated its suppliers as warehouses, the suppliers were not told about the requirement of inventory beforehand, thereby making them to store the products for longer time without compensation. This spoiled the relationship between Xerox Corporation and the suppliers thereby resulting in many suppliers ending their contract with Xerox.

CONCLUSIONS

Use of TPS results in:

Better Productivity Reliable, durable and high quality products Lower costs and higher quality Delivery of goods in time Greater returns on Investments Happier and efficient workforce.

BIBILIOGRAPHY

http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/ http://www.manufacturingnews.com/news/editorials/mitchell.html http://www.brighthubpm.com/methods-strategies/71540-real-life-examples-of-successful-jit-

systems/ http://education-portal.com/academy/lesson/just-in-time-inventory-definition-advantages-

examples.html http://www.economist.com/node/13976392 http://money.usnews.com/money/blogs/flowchart/2010/08/19/10-great-companies-that-lost-

their-edge www.ohio.edu/people/cutright/ Just-In-Time .doc www.wikipedia.com www.google.com