LEAN OPERATIONS

PROVIDE PRODUCTS OR SERVICES IN RIGHT QUANTITYOF RIGHT QUALITY

AND AT RIGHT TIME

TOYOTA PRODUCTION SYSTEM• A GLOBAL BENCHMARK FOR LEAN MANUFACTURING• OBJECTIVE IS TO IMPROVE PRODUCTIVITY & QUALITY• ‘ELIMINATION OF WASTE’ & ‘RESPECT FOR PEOPLE ‘ ARE

THE UNDERLYING PHILOSOPHY OF TPS

TOYOTA PRODUCTION SYSTEM

• FUJIO CHO, IDENTIFIED DIFFERENT TYPES OF WASTES COMMONLY EXPERIENCED IN JAPANESE INDUSTRY

• OVER PRODUCTION• OVER SPECIFICATION• PRODUCTION DEFECTS• REDOING DEFECTS• WIP & INTRASIT INVENTORY• SURPLUS AND OBSOLETE INVENTORY• BOTTLENECK DELAYS• WAITING TIME• UNNESSASARY MOVEMENT

TOYOTA PRODUCTION SYSTEM GUIDING PRINCIPLES OF DESIGNIG LEAN SUPPLY CHAIN IN TOYOTA PRODUCTION SYSTEM:• GROUP TECHNOLOGY• QUALITY AT SOURCE• JIT PRODUCTION• KANBAN SYSTEM OF PRODUCTION CONTROL• MINIMIZING SETUP TIME

GROUP TECHNOLOGY GT CONSIDERS ALL MACHINES AND THEIR OPERATIONS

REQUIRED TO MAKE CERTAIN PARTS ARE GROUPED TOGETHER. CLUSTERS OF SUCH MACHINES ARE CREATED RATHER THAN DECENTRALISING THEM DEPARTMENT WISE

• ELIMINATES UNDESIRABLE MOVEMENTS• ELIMINATES WAITING TIME IN QUEUES • OPTIMIZES WORK STATIONS AND OPERATING

MANPOWER • MULTISKILLING REQUIRED FOR DEPLOYMENT

QUALITY AT SOURCE PRINCIPLE IS TO ‘DO IT RIGHT FIRST TIME AND EVERY TIME • ANDON SYSTEM EMPOWERS WORKERS TO ELIMINATE THE

ASSEMBLY LINE WHEN THEY IDENTIFY ANY DEFECT• PACE IS FAST OR RAW MATERIAL AND ASSEMBLY

COMPONENTS ARE DEFECTIVE STOP IMMEDIATELY• HOOTERS / ALARMS & VISUAL DISPLAY TAKES PLACE• SUPERVISOR AND OTHER PEOPLE COME IMMEDIATELY AND

ATTEND TO THE PROBLEM• WORKERS ARE ALSO EMPOWERED TO DO SOME

MAINTENACE AND HOUSEKEEPING UNTIL PROBLEM IS FIXED

KANBAN PRODUCTION CONTROL SYSTEM KANBAN MEANS ‘SIGN’ OR ‘INSTRUCTION CARD’ IN

JAPANESE. • TOOL TO FACILITATE PULL SYSTEM IN PRODUCTION

PROCESS FLOW. • USES TWO CONTAINERS KNOWN AS ‘PRODUCTION

KANBAN’ AND ‘WITHDRAWAL KANBAN’ • SIZE AND NUMBER ARE DECIDED UPON

THE VOLUME OF PRODUCTION

MINIMIZING SETUP TIME MACHINES MUST BE SETUP QUICKLY TO REDUCE WAITING

TIME. • TOYOTA TEAM IS ABLE TO SETUP 800 TON PRESS MACHINE

IN 10 MINUTES AGAINST AVERAGE OF 6 HOURS IN US• TOTAL SETUP TIME IS DEVIDED INTO TWO COMPONENTS

‘INTERNAL ‘ & ‘EXTERNAL’ SETUP TIME• INTERNAL SETUP MUST BE DONE WHILE MACHINE IS

STOPPED• EXTERNAL SETUP CAN BE DONE WHILE MACHINE IS

RUNNING• DUPLICATE TOOL HOLDERS ARE USED TO REDUCE WAITING

TIME

RESPECT FOR PEOPLE

‘ RESPECT FOR PEOPLE ‘ IS KEY TO TOYOTA PRODUCTION SYSTEM

• LIFE TIME EMPLOYMENT FOR PERMANENT POSITIONS• PERMANENT WORKERS ARE NEARLY ONE THIRD OF TOTAL WORK

FORCE• THEY ARE MULTISKILLED AND ARE FLEXIBLE ENOUGH IN

DEPLOYMENT• ENJOY JOB SECURITY AND PRIVILEGED PAY• UNIONS FOSTER COOPERATIVE RELATIONSHIP WITH MANAGEMENT• EMPLOYEES RECEIVE TWO BONUSES • MANAGEMENT VIEWS WORKERS AS ASSETS• AUTOMATION & ROBOTICS USED TO REPLACE DULL AND HARD

MANUAL LABOUR TO IMPROVE QUALITY OF WORK LIFE• HEAVY RELIANCE ON SUB-CONTRACTORS• LONG TERM PARTNERSHIPS WITH SUPPLIERS AND CUSTOMERS

1. DESIGN PROCESS FLOW

2.TOTAL QUALITY CONTROL7. IMPROVE PRODUCT DESIGN

3. STABILIZE SHEDULE6. REDUCE INVENTORY

4.KANBAN PULL5.WORK WITH VENDORS

SOLVE PROBLEMS CONCURRENTLY AND MEASURE PERFORMANCE

7-STEPS TO ACHIEVE LEAN PRODUCTION SYSTEM