Toyota Production

System
&
Dual Kanban System

Irfan Kazi & Naresh S

 Toyota Production
System
 Toyota production system was developed &
promoted by TMC.
 The main purpose of TPS is to eliminate
waste through continuous improvement
activities.
 Profit through cost reduction
 Elimination of over production
 Quality control , Quality assurance , Respect
for humanity
 Toyota Production
System
Cost Reduction
Increase of capital
turnover ratio

Elimination of Waste

Continuous flow of Production

Just-in time production Jidoka

Production Information Control by Automatic

methods system teamwork stop device
•Small lot size
•Short setup time Kanban
•Multifunctional worker
•Job finishing within cycle time
Goal of
TPS
“Cost Reduction Is the Why?
Goal”
There are two ways to increase
efficiency: 1) increase
production quantity or 2) reduce
the number of workers—Taiichi
Ohno. In the short
term, you •Reduce
may need to people at
Over time, lower all levels
in the
costs, higher quality, organizat
and faster ion
development & Manufactur
ing as a
production times will Competitiv
e Weapon
increase sales.
Cost vs. Vitality &
Growth
 As you reduce costs, you create options:
 Lower
prices, which often lead to higher
market share
 More R & D
 Growth through acquisitions or diversification
 Higher investment in training and equipment

 Greater profitability, which rewards

shareholders, including employees
 Options give the company the means to
survive on its own terms, even in slow
Back
economic times, and grow as the
Main Features of TPS

 Greater Product Variety

 Fast Response (Flexibility)

 “Stable” Production Schedules

 Supply Chain Integration

 Demand Management
Elements of TPS
 The SMED Program.

 Highlight Problems (Jidoka).

 Gradual Elimination of Waste.

 Continuous Improvement (Kaizen), Root-
Cause Analysis (5-whys?) and Fool-proofing
(Poka-Yoke).

 Cross-Trained Workers.

 Just-In-Time Production.
A Lean Paradox
Reducing costs means reducing people, but if you
eliminate people as a result of improvement, you will
get no more improvement.
The Toyota Production System
clearly reveals excess manpower…
Management’s responsibility is to
•Resolve identify excess manpower and
how to utilize it effectively.
maintain
mutual Hiring people when business is
trust
while good and production high just to
reducing lay them off is a bad practice.
people
On the other hand, eliminating
wasteful and meaningless jobs
enhances the value of work for
workers.
Implementing
the TPS
All activities must support the goal of “shortening the
time it takes to convert customer orders into
deliveries.” Toyota Motor Corporation, 1992
Strive For
Develop A Design The Perfection
Manufactur Establish
Lean Strategy Pull •Institute
ing System Establish kaizen &
•Create a sense of Between
•Design an
•Identify the Flow institutionalize
urgency Cells
information
customer Within
•Form cells 5Ss throughout
•Throughout the base and Cells
based on takt system to
organization
enterprise, sell product range time produce
lean/TPS as the only the •Transfer
•Identify takt •Define ownership of
solution products
time & its standard work all processes
•Hire a sensei & •range
Apply flexible required by
content for the to work force
retain design talent designs to each
•create
Apply the downstream •Push lean
•Establish targets axiomatic operation to cells
basic factory down to
design be < takt time
•Resolve how to systemto •Incorporate suppliers
maintain mutual create the •Separate takt time to •Integrate
trust while basic factory worker from drive flows product
reducing people system machine
•Institute development
•Give preliminary •Eliminate (jidoka)
leveled •Reduce people
thought to supplier non-essential •Develop quick production Manufact
at all levels in
issues infrastructure setups & (heijunka) uring as a
the
and layers standard WIP
•Consider the •Use visual Competiti
organization
above the (SMED)
competitive control ve
factory floor
environment •Standardize Weapon
Toyota Production System
Best Quality ­ Lowest Cost ­ Shortest Lead Time ­ Best Safety ­ High Morale
through shortening the production flow by eliminating waste
Just­In­Time People & Teamwork Jidoka
“Right part, right amount, • Selection • Rigid decision making (In­station quality)
 right time”  • Common Goals • Cross­trained “Make Problems Visible”
• Takt time planning • Automatic stops
• Continuous flow • Andon
• Pull system
Continuous Improvement • Person­machine 
• Quick changeover separation
• Integrated logistics • Error proofing
• In­station quality 
Waste Reduction control 
• Gemba Kaizen • Eyes for Waste • Solve root cause of 
• 5 Why’s • Problem Solving problems (5 Why?)

Leveled Production (Heijunka)
Stable and Standardized Processes
Visual Management
Toyota Way Philosophy
DUAL KANBAN SYSTEM

KANBAN IS THE MAIN TOOL FOR

OPERATING ON JUST IN TIME
Kanban System
The pull system means that materials are
drawn or sent for by the users of the material
as needed. [Monden]
The Kanban system is an information system
that harmoniously controls the production of
the necessary products in the necessary
quantities at the necessary time in every
process of a factory and also among
companies, which is known as the JIT
production. [Monden]
A Kanban is a tool to achieve JIT production. It
is simply a card which is usually put in a
 Types Of Kanbans
 Kanbans are classified as follows
 Primary Kanban :
travels from one stage to another among main
manufacturing cells- “withdrawal Kanban”(conveyor
kanban), “production Kanban”
 Supply Kanban:
travels from a warehouse or
storage facility to a manufacturing facility
 Procurement Kanban:
travels from outside of a company to the receiving area
 Subcontract Kanban :
travels between subcontracting units
 Auxiliary Kanban :
the form of an express Kanban, emergency Kanban, or a
Operations Principles

 Level production (balance the schedule)

 Avoid complex information and
hierarchical control systems on a factory
floor
 Do not withdraw parts without a kanban
 Withdraw only the parts needed at each
stage
 Do not send defective parts to the
succeeding stages
 Produce the exact quantity of parts
withdrawn
 Kanban Functions

The key objective of a Kanban system:

• To deliver the material just-in-time to the
manufacturing workstations
• To pass information to the preceding stage as
to what and how much to produce

Following functions
1. Visibility Function : the information and
material flow are combined together
2. Production Function : indicates the time,
quantity, and part types to be produced
3. Inventory Function : # of Kanbans = # of
inventory
 Basic Kanban
Rules
Rule 1: Move a Kanban only when the lot it represents is
consumed.

Rule 2: No withdrawal of parts without a Kanban is allowed.

Rule 3: The number of parts issued to the subsequent process

must be the exact number specified by the Kanban.

Rule 4: A Kanban should always be attached to the physical

parts.

Rule 5: The preceding process should always produce parts in

the quantities with drawn by the subsequent process.

Rule 6: Defective parts should never be conveyed to the

subsequent process.
Dual Kanban
System

Each kanban is physically attached to a

Dual Kanbans

P W P

X
X
X Process Process
X
X X X X
A X X B

W Container with withdrawal kanban Flow of work

P Container with production kanban Flow of kanban
 Inbound Outbound
Dual Kanban
Stockpoint Stockpoint
System Move Card
Production Card

Move Production Move Production

Cards Cards Cards Cards
 Determining Number Of
Kanbans
average demand during lead time + safety stock
No. of kanbans =
container size
dL + S
N=
C

Where
N = number of kanbans or containers
d = average demand over some time period
L = lead time to produce parts
S = safety stock
C = container size
 KANBAN SAMPLE

LINE SIDE ADDRESS FOR

PARTS STORAGE. BASED ON
COLOUR GIVEN FOR THIS ADDRESS, THE PARTS
NAME OF SUPPLIER FROM ARE DELIVERED TO THE
EACH PROCESS LINE
WHERE THE PARTS WILL BE USAGE AREA.
FOR EASY DELIVERY OF
PARTS FROM PC ZONE
TO LINE.

PARTS
DESTINATION
SUPPLIER TG TKM
KIRLOSKAR

SUPPLIER CODE
FOR EASY
SUPPLIER
IDENTIFICATION T004-A KEY CODE :1234567890 GLOVE PART NAME
COMPARTMENT

PARTS USAGE PROCESS CODE : LOCATION CODE :

PROCESS NAME ASSEMBLY T2R-2
PART NUMBER

MINIMUM QTY/BOX 55581- 0B010- 00

ORDER LOT 10

PACKING CODE :
516 SEQ
NO. 1
Dock
01
PARTS RECEIPT AREA.
WE HAVE TWO
RECEIPT AREAS –
DOCK 01 AND DOCK 02.
PB10123

PARTS PACKING
PART ID NO. THIS NUMBER IS USED INSTEAD
STYLE
OF 10 DIGIT PART NUMBER FOR EASY
IDENTIFICATION AMONG PRODUCTION,
SUPPLIER AND PARTS GROUP
Conclusion

Toyota production system has been

created from actual practices in the
factories of Toyota, it has a strong
feature of emphasising practical
effects, and actual practice and
implication over theoretical
analysis. This system can play a great
role in the task of improving the
constituents of the companies world-
wide especially those of the
Bibliography
 www.icaen.uiowa.edu/ie166/Private/Lect
ure/ch8-Kanban.pdf
 www.ie.bilkent.edu.tr/akturk/ie561/gokha
n2
 www.toyota.co.jp
 Yasuhiro Monden, Toyota Production
System, 2nd edition, IEM Press, Georgia,
1991
 Vollmann, Berry, Whybark,
Manufacturing Planning & Control
System, 4th edition, Irwin McGraw-Hill,
Thank You