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The Toyota Production System

COST VS DEFECTS. 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-

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The Toyota Production System

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  1. COST VS DEFECTS 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 T.G.Gutowski 10/29/01

  2. Consumer Reports T.G.Gutowski 10/29/01

  3. Toyota vehicle sales 2002 T.G.Gutowski 10/29/01

  4. The Toyota Production System • Historical View • Performance measures • Elements of TPS • Six Eras of Manufacturing Practice • Difficulties with Implementation T.G.Gutowski 10/29/01

  5. Three Major Mfg Systems from 1800 to 2000 Machine tools, specialized machine tools, Taylorism, SPC, CNC, CAD/CAM 1800 1900 2000 Toyota Production System Interchangeable Parts at U.S. Armories Mass Production at Ford T.G.Gutowski 10/29/01

  6. Key Elements for New Mfg Systems T.G.Gutowski 10/29/01

  7. Q. By what method did these new systems come about? A. Trail and Error T.G.Gutowski 10/29/01

  8. History of the Development of the Toyota Production System ref; Taiichi Ohno 1945 1975 T.G.Gutowski 10/29/01

  9. The Toyota Production System • Historical View • Performance measures • Elements of TPS • Six Eras of Manufacturing Practice • Difficulties with Implementation T.G.Gutowski 10/29/01

  10. Summary of Assembly Plant Characteristics, Volume Producers, 1989 (Average for Plants in Each Region) T.G.Gutowski 10/29/01

  11. Cost Vs DefectsRef. “Machine that Changed the World” Womack, Jones and Roos T.G.Gutowski 10/29/01

  12. The Toyota Production System • Historical View • Performance measures • Elements of TPS • Six Eras of Manufacturing Practice • Difficulties with Implementation T.G.Gutowski 10/29/01

  13. How do you get this kind of performance? • Womack, Jones and Roos • J T. Black’s 10 Steps • Demand Flow Technology’s 9 Points • MSDD, D. Cochran and Students T.G.Gutowski 10/29/01

  14. Womack Jones and Roos • Automation? • Yes, but…. • DFM? • Probably • Standardized Production? • No! • Lean Characteristics? • Integration of Tasks • Identification and removal of defects T.G.Gutowski 10/29/01

  15. Cost Vs AutomationRef. “Machine that Changed the World” Womack, Jones and Roos T.G.Gutowski 10/29/01

  16. J T. Black’s 10 StepsRef; JT. Black “Factory with a Future” 1991 1. Form cells 2. Reduce setup 3. Integrate quality control 4. Integrate preventive maintenance 5. Level and balance 6. Link cells – KANBAN 7. Reduce WIP 8. Build vendor programs 9. Automate 10. Computerize T.G.Gutowski 10/29/01

  17. Demand Flow Technology’s 9 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 Balancing 8. Kanbans 9. Operational Method Sheets T.G.Gutowski 10/29/01

  18. Current Value Stream Map T.G.Gutowski 10/29/01

  19. Future Value Stream Map T.G.Gutowski 10/29/01

  20. Manufacturing System Design Decomposition (MSDD) ROI Costs Investments Sales - s resolving problems s m quality predictable output delay reduction Lower level actions T.G.Gutowski 10/29/01

  21. 1. Form Cells Sequential operations, decouple operator from machine, parts in families, single piece flow within cell 2. Reduce Setup Externalize setup to reduce down-time during changeover, increases flexibility J T. Black –1, 2 T.G.Gutowski 10/29/01

  22. TPS Cell T.G.Gutowski 10/29/01

  23. Standardized Fixtures T.G.Gutowski 10/29/01

  24. 3. Integrate quality control Check part quality at cell, poke-yoke, stop production when parts are bad 4. Integrate preventive maintenance worker maintains machine , runs slower J T. Black – 3, 4 T.G.Gutowski 10/29/01

  25. 5. Level and balance Produce to Takt time, reduce batch sizes, smooth production flow 6. Link cells- Kanban Create “pull” system – “Supermarket” System J T. Black – 5, 6 T.G.Gutowski 10/29/01

  26. 7. Reduce WIP Make system reliable, build in mechanisms to self correct 8. Build Vendor program Propagate low WIP policy to your vendors, reduce vendors, make on-time performance part of expectation J T. Black – 7, 8 T.G.Gutowski 10/29/01

  27. Manufacturing System Design Decomposition (MSDD) ROI Costs Investments Sales - s resolving problems s m quality predictable output delay reduction Lower level actions T.G.Gutowski 10/29/01

  28. Example from Cochran – Minimize production disruptions T.G.Gutowski 10/29/01

  29. Some Basics Concepts of TPS • Smooth Flow and Produce to Takt Time • Produce to Order • Make system “observable” and correct problems as they occur • Integrate Worker Skills T.G.Gutowski 10/29/01

  30. Two Examples; • Takt Time • Pull Systems T.G.Gutowski 10/29/01

  31. Takt Time – to pace production Calculate Takt Time per month, day, year etc. Available time includes all shifts, and excludes all non-productive time (e.g. lunch, clean-up etc). Product demand includes over-production for low yields etc. 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. T.G.Gutowski 10/29/01

  33. Engines shipped over a 3 month period at aircraft engine factory “B” T.G.Gutowski 10/29/01

  34. Engines shipped over a 3 month period at aircraft engine factory “C” T.G.Gutowski 10/29/01

  35. On-time performance of engine plants T.G.Gutowski 10/29/01

  36. Push and Pull Systems Machines 1 2 3 4 Parts Orders T.G.Gutowski 10/29/01

  37. Push Systems –Order arrives at the front of the system and is produced in the economical order quantity.Q. How long did it take for the order to go through the system? Time = 0 Time = 1 Time = 2 Time = 3 Time = 4 T.G.Gutowski 10/29/01

  38. Pull Systems-The order arrives at the end of the line and is “pulled” out of the system. WIP between the machines allows quick completion. Pros and Cons; Pull can fill small orders quickly, but must keep inventory for all part types. Design can help here but not in all cases. T.G.Gutowski 10/29/01

  39. Comparison in delivery times If the process time per part is “t”, and the batch size is “n”, it takes “Nnt” time to process a batch through “N” steps. To deliver one part it takes; “Nnt” time from a push system plus setup and transportation delays, and “t” for a pull system. See HP Video T.G.Gutowski 10/29/01

  40. HP Video Results T.G.Gutowski 10/29/01

  41. HP Video Results Revisited 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 T.G.Gutowski 10/29/01

  43. The Toyota Production System • Historical View • Performance measures • Elements of TPS • Six Eras of Manufacturing Practice • Difficulties with Implementation T.G.Gutowski 10/29/01

  44. Six Eras of Manufacturing Practice, Ken McKay • Pioneering • Systemization • Technology and Process • Internal Efficiency • Customer Service • Systems Level Re-engineering T.G.Gutowski 10/29/01

  45. 1. Pioneering - sellers market, competition is not by manufacturing large margins emphasize throughput not efficiency 2. Systemization - firm grows and system gets complex gross inefficiency becomes apparent, competition begins to make its presence felt. Need for standard operating procedures, demand still high, inventory used to buffer against instabilities. Ken McKay – 1, 2 T.G.Gutowski 10/29/01

  46. 3. Technology and Process – competition is increasing, sales are softening, manufacturing is still in early maturity and competition is limited to firms in similar situation. Focus shifts from increasing production rate to increasing the amount of product per unit time. 4. Internal Efficiency - competition “cherry pickers” enter the market they don’t offer all of the options and parts service but focus on the 20% which yields 80% of the revenue stream. Internal plant is put into order, problems are pushed outside to suppliers, best in class, bench marking identifies the silver bullet. Still using inventory to cushion production support variety, and maintain functional features. Ken McKay – 3, 4 T.G.Gutowski 10/29/01

  47. 5. Customer Service - talk to the customer, identify core competency, outsource, be responsive, reduce lead time, eliminate feature creep, focused factory etc. 6. System Level Re-engineering - firms have addressed the internal system and factory – no more to squeeze out – look to improving indirect and overhead, era of “mass” customization, supply chain development. Ken McKay- 5, 6 T.G.Gutowski 10/29/01

  48. The Toyota Production System • Historical View • Performance measures • Elements of TPS • Six Eras of Manufacturing Practice • Difficulties with Implementation 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 T.G.Gutowski 10/29/01

  50. Work practices and people issues • 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 35 No.3 (July 1996) T.G.Gutowski 10/29/01

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