Toyota Lean Manufacturing - PDF

					       Toyota Production System
        and Lean Manufacturing
                            D. Jorge Leon
                         Texas A&M University




TOYOTA PRODUCTION SYSTEM

The Toyota Production System was adopted by
many Japanese companies in the aftermath of the
1973 oil shock

                       “Waste” Elimination Philosophy:

    “.. Above all, one of our most important purposes was increased
  productivity and reduced cost. To achieve this purpose, we put our
     emphasis on the notion of eliminating all kinds of unnecessary
functions in the factories. Our approach has been to investigate one by
one the causes of various "unnecessaries" in manufacturing operations
   and to devise methods for their solution, often by trial and error ...”
   Taiicho Ohno, Former Vice President, Toyota Motor Corp., Former President, Japan Industrial Management
                   Association; Former Chairman, Toyoda Spinning and Weaving Co., Ltd.




                                                                                                            1
                PURPOSES OF JIT
                   Primary Purpose:
    Profit through cost reduction (or improvement of
                      Productivity)
     This is attained through WASTE elimination.

               Other important purposes:
                     Quantity control:
   JIT, Kanban & Autonomation (visual control system)
                      Quality control:
 Autonomation, improvement by small groups, functional
                       management
                  Respect for humanity :
Flexible work force (adapt to demand changes), capitalize
                      workers ideas.




                  TYPES OF WASTE

        Excessive production resources (primary waste):
                     excessive workforce
                      excessive facilities
                     excessive inventories
                unnecessary capital investment

     Overproduction (secondary waste - the WORST waste):

                            leads to

             Excessive inventories (tertiary waste):
            extra jobs make overproduction invisible.
                 adds losses in opportunity cost

                             lead to

         Unnecessary capital investment (fourth waste):
          adds facility depreciations and overhead cost




                                                            2
 TO ACHIEVE THESE PUPOSES

         7 Wastes Elimination
     Just-In-Time (JIT) Production
            Kanban System
        Production Smoothing
                  5S
        Setup Time Reduction
Machine Layout & Multi-function Worker
Autonomation (Visual Management)




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                       7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                       7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.


       Identification and Elimination of Waste
Philosophy
    • Identification and elimination of waste is the central theme of a
      lean manufacturing production system
    • Lean manufacturing is a dynamic and constantly improving
      process dependent upon understanding and involvement by all
      employees
    • Successful implementation requires that all employees must be
      trained to identify and eliminate waste from their work
    • Waste exists in all work and at all levels in
      the organization




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                        7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                        7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.


       Identification and Elimination of Waste
Philosophy
Effectiveness is the result of the integration of:
       - Man
       - Method
       - Material
       - Machine
       At the worksite

     • Waste exists in all work and at all levels in the organization




                        7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                        7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Seven Types of Waste
                            Over-production

                            Wait time

                            Transportation

                            Processing

                            Inventory

                            Motion

                            Defects




                                                                                                 5
                             7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                             7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Over-production Waste
Definition
    Producing more than needed
    Producing faster than needed




                             7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                             7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Over-production Waste
Characteristics:
    •   Inventory Stockpiles
    •   Extra equipment/oversized equipment
    •   Unbalanced Material Flow
    •   Extra Part Storage racks
    •   Extra Manpower
    •   Batch Processing
    •   Complex Inventory Management
    •   Excessive Capacity/Investment
    •   Additional Floor Space/Outside Storage
    •   Hidden Problems
    •   Excessive Obsolescence
    •   Large Lot Sizes
    •   Building Ahead




                                                                                                      6
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Over-production Waste
Causes:
   • Incapable Processes
   • Just in Case Reward System
   • Lack of Communication
   • Local Optimization
   • Automation in the Wrong Places
   • Cost Accounting Practices
   • Low Uptimes
   • Lack of Stable/Consitent Schedules




                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Waiting Time Waste
Definition
    Idle Time That is Produced When Two Dependant Variables are
     not Fully Synchronized.
         • Man Wait Time
         • Machine Wait Time




                                                                                              7
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Waiting Time Waste
Characteristics:
   • Man Waiting for Machine
   • Machine/Materials Waiting for Man
   • Unbalanced Operations (Work)
   • Lack of Operator Concern for Equipment Breakdowns
   • Unplanned Equipment Downtime




                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Waiting Time Waste
Causes:
   • Inconsistent Work Methods
   • Long Machine Change Over Time
   • Low Man/Machine Effectiveness
   • Lack of Proper Equipment/Materials




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                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Transportation Waste
Definition
    Any Material Movement That Does Not Directly Support a Lean
     Manufacturing System




                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Transportation Waste
Characteristics:
   • Extra carts, fork lifts, dollies
   • Multiple Storage Locations
   • Extra Material Racks
   • Complex Inventory Management
   • Extra Facility Space
   • Incorrect Inventory Counts
   • Damaged Material




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                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Transportation Waste
Causes:
   • Large Lot Processing
   • Unleveled Schedules
   • Lack of 5 S’s
   • Lack of Visual Controls
   • Improper Facility Layout
   • Large Buffers and In Process Kanbans




                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Processing Waste
Definition
    Effort Which Adds No Value To a Product or Service.
     Enhancements which are Transparent to The Customers or
     Work Which Could Be Combined with Another Process.




                                                                                              10
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Processing Waste
Characteristics:
   • Process Bottlenecks
   • Lack of Clear Customer Specifications
   • Endless Refinement
   • Redundant Approvals
   • Extra Copies/Excessive Information




                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Processing Waste
Causes:
   • Engineering Changes Without Processing Changes
   • Decision Making at Inappropriate Levels
   • Inefficient Policies and Procedures
   • Lack of Customer Input Concerning Requirements




                                                                                              11
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Inventory Waste
Definition
    Any Supply in Excess of Process Requirements Necessary to
     Produce Goods or Services Just in Time.




                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                     7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Inventory Waste
Characteristics:
   • Extra Space on Receiving Docks
   • Material Between Processes
   • Stagnated Material Flow
   • LIFO instead of FIFO
   • Extensive Rework When Problems Surface
   • Long Lead Time for Engineering Changes
   • Additional Material Handling Resources (Men, Equipment,
     Racks, Storage Space)




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                        7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                        7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Inventory Waste
Causes:
   • Incapable Processes
   • Uncontrolled Bottleneck Processes
   • Incapable Suppliers
   • Long Change Over Times
   • Management Decisions
   • Local Optimization
                                                                      Inventory Level
   • Inaccurate Forcasting Systems

                                     Over
                                  Production

            Wait Time
                               Process                             Defects




                        7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                        7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Motion Waste
Definition
    Any Movement of People Which Does Not Contribute Added
     Value To The Product or Service




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                    7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                    7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Motion Waste
Characteristics:
   • Looking for Tools
   • Excessive Reaching or Bending
   • Material Too Far Apart (Walk Time)
   • Equipment for Moving Parts
   • Extra “Busy” Movements While Waiting




                    7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                    7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Motion Waste
Causes:
   • Equipment, Office & Plant Layout
   • Lack of 5 S’s
   • Lack of Visual Controls
   • Inconsistent Work Methods (Standardized Work)
   • Large Batch Sizes




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                      7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                      7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Rework or Correction Waste
Definition
    Repair of a Product or Service To Fulfill Customer requirements




                      7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                      7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Rework or Correction Waste
Characteristics:
   • Extra Floor Space/Tools/Equipment
   • Extra Manpower To Inspect/Rework/Repair
   • Stockpiling Inventory
   • Complex Material Flow
   • Questionable Quality
   • Missed Shipments/Deliveries
   • Lower Profits Due To Scrap
   • Reactive Organization




                                                                                               15
                    7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                    7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Rework or Correction Waste
Causes:
   • Incapable Processes
   • Excessive Variation
   • Incapable Suppliers
   • Management Decisions
   • Insufficient Training
   • Inadequate Tools/Equipment
   • Poor Layouts/Unnecessary Handling
   • High Inventory Levels




                    7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
                    7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.

Seven Types of Waste
                        Over-production

                        Wait time

                        Transportation

                        Processing

                        Inventory

                        Motion

                        Defects




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      7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.
      7 Wastes, Applied Material’s, Lean Manufcaturing, Supplier Copy, 1999.


Seven Types of Waste




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