INVENTORY MANAGEMENT

Toyota Production System (TPS), Just-in-Time (JIT), and Lean Manufacturing ByKanika Sehgal (10) Nancy Yadav (12) Prachi Arora (15)

TOYOTA MOTOR CORPORATION

Toyota Motor Corporation: Japanese multinational Headquartered in Aichi, Japan Sakichi Toyoda, founder: Toyota Group of companies. Toyota as a textile machine company

Kiichiro Toyoda, son of Sakichi, Founder: Toyota Motor Corporation,1937

Developed the concept of Just-in-Time.

PS: Shingo Prize is the highest manufacturing excellence award in the U.S. The prize is given both to companies and individuals who contribute to the development of manufacturing excellence.

WHY TOYOTA?

HOUSE OF TOYOTA

To provide best quality

Lowest cost

Shortest lead time through elimination of waste

Two Pillars: Just In Time & Jidoka (autonomation)

Attacks waste
Anything not adding value to the product

Exposes problems and bottlenecks caused by variability

Deviation from optimum

Achieves streamlined production

By reducing inventory

Waste (muda in Japanese)

anything other than the minimum amount of equipment, materials, parts, space, and workers time, which are absolutely essential to add value to the product.

Shoichiro Toyoda Founder, Toyota

CONTINUOUS FLOW-ONE-PIECE FLOW, SINGLE-PIECE

FLOW, AND MAKE ONE, MOVE ONE.
Producing and moving one item at a time Or small batch of items Through a series of steps continuously
With each step making just what is requested by the next step

CONTINUOUS FLOW PRODUCTION

Traditional Flow

Production Process (stream of water) Customers

Suppliers Flow with JIT

Inventory (stagnant ponds)

Suppliers

Material (water in stream) Customers

PUSH (OLD STYLE MRP / MATERIAL REQUIREMENTS PLANNING SYSTEM)

Push system: material is pushed into downstream workstations regardless of whether resources are available

Work Station 1

WS 2

WS 3

Material Information (Production Schedule)

PULL (JIT) SYSTEM

The production of items only as demanded for use or to replace those taken for use. Pull system: material is pulled to a workstation just as it is needed.

Work Station 1

WS 2

WS 3

Material Information (via Kanban/Card)

MARKER

TRIANGULAR KANBAN
Part # Part Description Location

KANBAN
Date Triggered Lot Size

Trigger (Reorder) Point

Tool #

Machine #

Authorizes production from downstream operations

Pulls material through plant

May be a card, flag.

Easy to add or remove containers to change production rate

SMALL VERSUS LARGE LOTS

JIT produces same amount in same time if setup times are lowered

JIT Small Lots

A A B B B C A

Time
Small lots also increase flexibility to meet customer demands

Large-Lot Approach
A A A A B B B

Time

CYCLE TIMES
Working time per day = 480 minutes Daily requirements: A = 40 units; B = 40 units; C = 10 units The system cycle time = 480/(40+40+10) = 5.33 min/unit Product
A
B C

Requirements
40
40 10

480 4012 480 4012 48010 48

Cycle Time

REDUCING LOT SIZES INCREASES THE NUMBER OF LOTS-TO LOWER INVENTORY, REDUCE LOT SIZES

Customer orders 10

Lot size = 5 Lot 2 Lot 1

Lot size = 2 Lot 1 Lot 2 Lot 3 Lot 4 Lot 5

KAIZEN
Change for better = continuous improvement

Kaizen workshop or Kaizen event:

A group of Kaizen activity, commonly lasting five days, in which a team identifies and implements a significant improvement in a process, e.g., creating a manufacturing cell.

5S: OF KAIZEN/LEAN MANUFACTURING

5 STEPS OF LEAN PRODUCTION SYSTEM

Step 1:Specify Value
Define value from the perspective of the final customer..

Step 2: Value Stream Mapping.

the problem-solving task, the information management task, and the physical transformation task. Identify and categorize waste and eliminate it.

Step 3: Create Continuous Flow

Make the remaining steps in the value stream flow. Eliminate functional barriers and develop a product-focused organization that dramatically improves lead-time.

Step 4: Create Pull Production

Let the customer pull products as needed.

Step 5: Perfection
There is no end to the process of reducing effort, time, space, cost, and mistakes. Its a chain process.

ATTRIBUTES OF LEAN MANUFACTURING

build systems to help employees product a perfect part every time

use JIT to eliminate inventory

reduce space requirements

develop close relationships with suppliers

educate suppliers

eliminate all but value-added activities apply Total Productive Maintenance (TPM)

develop the workforce

reduce the number of job classes and build worker flexibility

JIDOKA TECHNIQUES

Poka-yoke (mistake or error proofing)

A form of device for building-in quality at each production process. This device may take many shapes and designs. Typical types of Pokayoke are sensors, proximity switches, stencils, light guards and alignment pins. Simple circuitry is usually used to operate these electrical error proof devices as they should be of low cost and simple design.

Goal: Finding defects before they occur = Zero Defects

Statistical Quality Control (SQC): Finding defects after they occur

Value Stream Mapping

What? Why? Who? When?
A visual tool for identifying all activities of the planning, and manufacturing process to identify waste. Provides a tool to visualize what is otherwise usually invisible. The leaders of each product family need to have a primary role in developing the maps for their own area. Develop a current-state map before improvements are made so that the efforts and benefits can be quantified.

Where?
How?

On the shop floor, not from your office. You need the real information, not opinion or old data.
Next page

VALUE STREAM MAP SYMBOLS

Spot weld

Finished goods
Process Vendor Data box Inventory

Push

Physical pull Supermarket: the location of a predetermined standard inventory

Shipment

COMPARISON OF MRP (MATERIAL REQUIREMENTS PLANNING), JIT

MRP
Loading of operations Checked by capacity requirements Planning afterward One week or more

JIT
Controlled by kanban system Small as possible

Batch sizes

Importance of data accuracy Speed of scheduled development Flexibility Cost Goals Planning focus Production basis

Critical Slow Lowest Highest Meet demand Have doable plan Master schedule Plan

Unnecessary Very fast Highest Lowest Meet demand Eliminate waste Final assembly schedule Need

REFERENCES
http://www.toyota.com/ http://www.toyota-global.com/ http://scm.ncsu.edu/scm-articles/article/cash-tocash-toyota-inventory-management-and-heijunka http://team2toyota.blogspot.in/2010/02/toyotasinventory-management.html http://en.wikipedia.org/wiki/Toyota www.wisegeek.org/what-is-a-just-in-timeinventory.html

THANK YOU !