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 Increase of capital Cost Reduction

turnover ratio Elimination of Waste

Continuous flow of Production

Just-in time production Production methods Information system Kanban

Jidoka

Control by teamwork

Automatic stop device

Small lot size Short setup time Multifunctional worker Job finishing within cycle time

Goal of TPS
Why? Cost Reduction Is the Cost Reduction Is the Goal There are two ways to increase Goal efficiency: 1) increase production quantity or 2) reduce the number of workersTaiichi In the short Ohno.

term, you may need to

Over time, lower costs, higher quality, and faster development & production times will increase sales.

Reduce people at all levels in the organizat ion

Manufactur ing as a Competitiv e Weapon

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), RootCause 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 Reducing costs means reducing people, but if you eliminate people as a result of improvement, you will eliminate people as a result of improvement, you will get no more improvement. get noToyotaimprovement. The more Production System clearly reveals excess manpower
Resolve how to maintain mutual trust while reducing people

Managements responsibility is to identify excess manpower and utilize it effectively. Hiring people when business is good and production high just to lay them off is a bad practice. 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 All activities must support the goal of shortening the time it takes to convert customer orders into time it takes to convert customer orders into deliveries. Toyota Motor Corporation, 1992 deliveries. Toyota Motor Corporation, 1992 Develop A Lean Strategy Create a sense of urgency Throughout the enterprise, sell lean/TPS as the solution Hire a sensei & retain design talent Establish targets Resolve how to maintain mutual trust while reducing people Give preliminary thought to supplier issues Consider the competitive environment Design The Manufactur ing System Identify the customer base and product range Identify takt time & its Apply flexible range designs to create the Apply axiomatic basic factory design to system create the basic factory system Eliminate non-essential infrastructure and layers above the factory floor Establish Establish Flow Flow Within Form cells Within Cells Cells based on takt time Define standard work content for each operation to be < takt time Separate worker from machine (jidoka) Develop quick setups & standard WIP (SMED) Standardize Establish Establish Pull Pull Between Between Design an Cells Cells information system to produce only the products required by the downstream cells Incorporate takt time to drive flows Institute leveled production (heijunka) Use visual control Strive For Perfection Institute kaizen & institutionalize 5Ss throughout organization Transfer ownership of all processes to work force Push lean down to suppliers Integrate product development Reduce people Manufact at all levels in uring as a the Competiti organization ve Weapon

Toyota Production System

Best Quality - Lowest Cost - Shortest Lead Time - Best Safety - High Morale

through shortening the production flow by eliminating waste Just-In-Time

Right part, right amount, right time

People & Teamwork

Selection Common Goals Rigid decision making Cross-trained

Jidoka (In-station quality)

Make Problems Visible

Takt time planning Continuous flow Pull system Quick changeover Integrated logistics

Continuous Improvement Waste Reduction

Gemba Kaizen 5 Whys Eyes for Waste Problem Solving

Automatic stops Andon Person-machine separation Error proofing In-station quality control Solve root cause of 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
1.

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

2.

3.

4.

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

5.

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: 1. To deliver the material just-in-time to the manufacturing workstations 2. 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 Rulesa Kanban only when the lot it represents is Rule 1: Move
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 X X

Process A

Process B

W P

Container with withdrawal kanban Container with production kanban

Flow of work Flow of kanban

Inbound Stockpoint

Outbound Stockpoint

Dual Kanban System

Move Card Production Card

Move Cards

Production Cards

Move Cards

Production Cards

Determining Number Of Kanbans

average de mand durin g lead tim e + safety st ock No. of kanba ns = 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 THIS ADDRESS, THE PARTS ARE DELIVERED TO THE USAGE AREA.

NAME OF SUPPLIER FROM WHERE THE PARTS WILL BE

COLOUR GIVEN FOR EACH PROCESS LINE FOR EASY DELIVERY OF PARTS FROM PC ZONE TO LINE.

PARTS DESTINATION SUPPLIER TG KIRLOSKAR SUPPLIER CODE FOR EASY SUPPLIER IDENTIFICATION TKM

T004-A

KEY CODE :1234567890

GLOVE COMPARTMENT

PART NAME

PARTS USAGE PROCESS NAME

PROCESS CODE : ASSEMBLY

LOCATION CODE : T2R-2 PART NUMBER 55581- 0B010- 00 SEQ NO. 1 Dock 01 PARTS RECEIPT AREA. WE HAVE TWO RECEIPT AREAS DOCK 01 AND DOCK 02.

MINIMUM ORDER LOT

QTY/BOX 10 PACKING CODE : PB10123

516

PARTS PACKING STYLE

PART ID NO. THIS NUMBER IS USED INSTEAD 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 worldwide 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