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TOYOTA PRODUCTION SYSTEM

A Seminar for IIMM, Mumbai 29 July 2006 Dr. Gopal Iyengar Director, KIAMS
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Module 1 - Introduction
1.1) Evolution of TPS 1.2) Basic Ideas of TPS

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Evolution of TPS In Taiichi Ohnos Own Words


Birth of the System
. The system was born through our various efforts to catch up with the automotive industries of the western advanced nations after the end of the World War without the benefit of funds or splendid facilities

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Evolution of TPS In Taiichi Ohnos Own Words


Objective
Above all, our most important purpose was to increase productivity and reduce costs

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Evolution of TPS In Taiichi Ohnos Own Words


How did Toyota achieve its purpose?
To achieve this purpose we put our emphasis on the notion of eliminating all kinds of unnecessary functions in the factory. Our approach has been to investigate the causes of various unnecessary steps in manufacturing operations one by one and to devise methods for their solution, often by trial and error
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Evolution of TPS In Taiichi Ohnos Own Words


Practical Nature of the System
Since the TPS has been created from actual practices in the factories of Toyota, it has a strong feature of emphasising practical effects, actual practice and implementation over theoretical analysis

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Evolution of TPS In Taiichi Ohnos Own Words


Network of Suppliers Contributing Factor to Success
In order to make TPS truly effective, we should recognise its limitations. Only if Toyota shares its destiny with surrounding cooperative manufacturers as a single community can it approach the perfect realisation of this system
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Idea of TPS


Basic Idea
To maintain a continuous flow of products in factories in order to flexibly adapt to changes in demand. The realisation of such a production flow is called Just-in-Time (JIT) production at Toyota

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Idea of TPS


JIT means
Producing only necessary items In necessary quantities At the necessary time

With This
Waste in all forms is eliminated Turnover Ratio of Capital (total sales/ total assets is increased
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Idea of TPS


Three sub-goals to support the main goal of Cost Reduction
Quantity Control Quality Assurance Respect for Humanity

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Module 2 Philosophy of TPS


2.1) Drastic Reduction of Costs 2.2) Elimination of Waste 2.3) Repeating Why Five Times

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Drastic Reduction of Costs


Achieved Through
Small Lot Production Frequent Delivery of Parts Leveling of Production Volume Reduction of Set-up Time
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Drastic Reduction of Costs


Possible because of
Multi-skill training of workers Concentrated efforts to improve quality of products

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Drastic Reduction of Costs


Achieved By Effective Application of
Robots NC Machine Tools Machining Centres

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Elimination of Waste


Waste Defined
1) An activity that does not add value to product or service (Henry Ford) 2) Time, material and energy not turned into valuable product (Forcier and Forcier) 3) Anything other than the minimum amount of equipment, materials, parts, space and workers time essential to add value (Japanese perspective)
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Elimination of Waste


Three Types of Waste
1) Muda various non-value adding activities i.e. wastes (7 + 2)
i) Overproduction iii) Transportation v) Inventory vii) Defective Products ix) Paper Work ii) Waiting iv) Processing vi) Movement or Motion viii) Expenses

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Elimination of Waste


Three Types of Waste
2) Muri Activities which cause physical and/ or mental strain; activities which are irrational or without any logic or reason
i) Layout iii) Material Handling ii) Tools/ Equipment Position iv) Difficult, Dangerous, Dirty Actions causing fatigue v) Non-standard Operations vi) Operator needing to exercise visual control
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Elimination of Waste


Three Types of Waste
3) Mura Inconsistencies which hinder smooth performance of work
i) ii) iii) iv) v) vi) Material not as per specified hardness Having more than specified machining allowance Improper inflow of material causing waiting/ handling Improper machine functioning due to bad maintenance Malfunctioning instruments Operator with inadequate knowledge
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Elimination of Waste


Motion Economy Principles
1) Use of Human Body (9 principles) 2) Arrangement of Work Place (8 principles) 3) Design of Tools and Equipment (5 principles) Refer handout for these 22 principles

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Elimination of Waste


Different Interpretation of Waste Elimination
1) Waste being produced due to inconsistencies or variability 2) Variability is any deviation from optimum process that delivers a perfect product on time, every time 3) Causes: Non-conformance to specs, inaccurate drawings, producing without drawings, customer demand not known
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Elimination of Waste


Approaches to Waste Elimination - Kaizen
Kai = Change Zen = Good (Taken from 2 Chinese characters) Kaizen change for the better, on a continual improvement basis. Kaizens are incremental innovations
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Approaches to Waste Elimination 5S


5S is a systematic approach to house keeping Seiri Sort out unnecessary items Seiton Arrange necessary items in good order A place for everything and everything in its place Seiso Clean the workplace, floor, machine free of dust Seiketsu Maintain high standard of housekeeping and work place organisation at all times Shitsuke Train people to follow good housekeeping autonomously
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Elimination of Waste

Philosophy of TPS Repeating Why 5 Times


5W1H Approach
Poem of the famous English poet, Rudyard Kipling I keep six honest serving men Who taught me all I knew Their names are What and Where and When And Who and Why and How
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

What ?

Philosophy of TPS Repeating Why 5 Times

Where ? When ? Who ? How ?


Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Why ?

Philosophy of TPS Repeating Why 5 Times


Systematic Questioning or Critical Examination
What Purpose, What is being done Where Place When Sequence Who Person How Means WHY - THE MASTER QUESTION
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Repeating Why 5 Times


Why-Why Analysis
By asking why 5 times and answering it each time, we can be sure to get to the root cause or real cause of a problem Critical Examination Approach and Why-Why Analysis converge to lead to the correct solution

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Repeating Why 5 Times


Convergence Example (1/4)
Symptom Repeated overheating of Spindle Head Housing This relates to WHAT is the problem First WHY Why is there repeated overheating? First Answer Because spindle head bearings and clutches get jammed This shows WHERE the problem lies (continued2)
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Repeating Why 5 Times


Convergence Example continued (2/4)
Second WHY Why did the bearings and clutches get jammed Second Answer Because lubrication is not proper This shows WHEN the problem occurs (continued3)
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Repeating Why 5 Times


Convergence Example continued (3/4)
Third WHY Why is lubrication not proper Third Answer Because lubrication oil is not flowing freely Fourth WHY Why is lubrication oil not flowing freely Because lubrication lines are clogged Third and Fourth answers show HOW the problem occurs (continued4)
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Philosophy of TPS Repeating Why 5 Times


Convergence Example continued (4/4)
Fifth WHY Why are lubrication lines clogged Fifth Answer Because oil filters in the line are clogged. The line is not visible to the operator and so he does not clean it Means to Solve the issue Improve visibility of lines, so operator can take corrective action (clean them) and so prevent clogging
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Module 3 Basic Framework of TPS


3.1) Pillar 1 JIT 3.2) Pillar 2 Autonomation (Jidoka)

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Increase Profit

Increase of net worth to total capital (B/S) Increase of capital turnover ratio

Cost Reduction

Elimination of unnecessary items, specially Inventory Continuous flow production JIT Production Information system Standardisa tion of jobs Multi function worker

Autonomation
Control by teamwork Yo-I-don & Andon Bakayoke QC

Production Method Production smoothing Small lot size Design of Processes

Kanban

Short setup time

Job finishing within cycle

BASIC FRAMEWORK TPS

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Framework of TPS Pillar 1 - JIT


In a flow process, the right parts needed in assembly reach the assembly line at the time they are needed and only in the amount needed. A company establishing this flow throughout can approach zero inventory

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Framework of TPS Pillar 1 - JIT


JIT seeks to achieve the following:
Zero defects Zero Inventories Zero set-up time Zero breakdowns Zero handling Zero lead-time Lot size of one
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Framework of TPS Pillar 1 - JIT


By Production Smoothing is meant that the preceding process has to produce only that quantity of units to replace those that have been withdrawn by the succeeding process. Production smoothing is a very important condition to achieve JIT It enables the system to adapt smoothly to variations in customer demand Minimisation of set-up times is very important to achieve production smoothing
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Framework of TPS Pillar 1 - JIT


Design of Processes Use of multi-process holding and multi-function worker (Shojinka) Creative thinking or inventive ideas (Soikufu)

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Framework of TPS Pillar 1 - JIT


Standardisation of jobs is achieved through three means i) Defining standard quantity of work in process ii) Operations routing iii) Determining cycle time needed

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Framework of TPS Pillar 1 - JIT


Kanban Techniques control initiation of production and flow of material Get exactly the right quantity of items At exactly the right place At precisely the right time

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Framework of TPS Pillar 2 - Autonomation


Autonomation means to build-in a mechanism in machines or product lines to prevent massproduction of defective work Autonomation is coined by Ohno from two words Automation: of machines Human: Processes controlled by human touch
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Framework of TPS Pillar 2 - Autonomation


Yo-I-Don: Empowering employees to take important decisions like (manually) stopping production when a problem is identified Andon: The line stop indication board Baka-Yoke: Innovations made to tools and equipment to automatically stop machines/ processes if quality deteriorates (Fool-Proofing) Poka-Yoke: A device to permanently prevent recurrence of defects it is designed to eliminate(Fool-Proofing)
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Basic Framework of TPS Pillar 2 - Autonomation


Yo-I-Don: Empowering employees to take important decisions like (manually) stopping production when a problem is identified Andon: The line stop indication board Baka-Yoke: Innovations made to tools and equipment to automatically stop machines/ processes if quality deteriorates (Fool-Proofing) Poka-Yoke: A device to permanently prevent recurrence of defects it is designed to eliminate(Fool-Proofing)
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Module 4 TPS Pillar 1 JIT Production Method


4.1) Process Design 4.2) Cellular Manufacturing 4.3) Single Piece Production Flow 4.4) Operations Scheduling 4.5) Multi-Function Worker 4.6) Set-up Time Reduction 4.7) Mixed Model Manufacturing
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Process is the type of work done, methods used and activities defined and performed Material flow is a significant factor in process design Material flow is entirely dependent on how the process is designed and laid out in the plant

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Flow of Production Flow refers to the movement of materials through the plant, It assumes materials will not stagnate at any point from raw material receipts to finished goods despatch Inefficient layouts, machine breakdowns, and other problems can interrupt smooth flow
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Flow should be linear i.e. scheduled by customer demand In flow, stoppage occurs only when value is being added or a critical activity performed In flow, when one machine is down all machines are down Objective of flow is a total business linear flow that requires minimum cycle time A relay race is an analogy of a linear process
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


1) Cycle time is measured from the time a customers need is identified to the time payment is received for the finished product. Smooth flow reduces cycle time 2) Takt time is the desired time between units of production output synchronised to customer demand = Available time per day/ Required output per day customer demand. Smooth flow essential to keep takt time
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Cycle time can be reduced by i) Adopting technology expensive and often inefficient ii) Simplify existing processes to eliminate waste or non-essential activities inexpensive and relatively large savings
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Coordinated efforts for Flow i) Reduce changeover time ii) Eliminate travel time between value adding steps iii) Eliminate rework iv) Integrate functions of design, process, maintenance to improve flow
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Impediments to Flow 1) In the Manufacturing Process tool changeover, poor quality, shortages, bad layout, poor maintenance, poor process and engineering design 2) In Support Services Changes in sales order, engineering changes, clerical delays, travel time, office time, downtime of office equipment
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Variability as impediment to flow 1) Variability is deviation from the optimum process that delivers a perfect product on time, every time 2) Variability occurs with unknown customer demand, non-standard units produced, specifications are inaccurate, produce parts without specifications
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Materials Handling and Flow Materials handling connects individual parts of the manufacturing system to form a whole Less material handling, better the flow, as time spent in waiting and transit is reduced Any step to reduce set-ups and number of processes will reduce material handling Ideal part should be made in one machine only
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Plant Layout and travel time Reducing travel time between machines/ processes/ departments aids smooth linear flow Benefits are : reduced WIP; reduced costs of material handling equipment, workforce and floor space

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Line Balancing and flow In flow, all functions and machines are interdependent A process can produce only as much as the lowest-output machine (bottleneck) Balancing the line means producing same quantity per unit of time at each operation
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Bottlenecks Relates to capacity one or more processes have lesser capacity than required process output Bottlenecks imply capacity shortage is a permanent phenomenon Breakdowns/ materials shortage cause temporary bottlenecks
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Bottlenecks restrict throughput Limiting factor of a process output Level of utilisation of a non-bottlenec is determined by bottleneck Balancing flow means no bottlenecks Improving non-bottleneck operations is of less value than improving bottleneck operations
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Relieving bottlenecks Keep machine operating longer Preventive maintenance to have fewer breakdowns Add another machine

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Operation No [A]

Veena to type table 6B, page 80/ 86


[B] 1 2 3 4 4.8 10.2 5.1 9.9 12.5 5.9 11.8 6.1

Required Time

Output per unit Hours [C=60/B]

Approx. Output Per Hour, Units [D]

12 6 12 6

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


In the previous table line is NOT balanced Twice as many units can be produced in the first and third operations compared to second and fourth operations (bottlenecks) WIP accumulates at second station or third station operates at 50% Let operations 2 and 4 (bottlenecks) have two machines/ operator
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production - Process Design


Line Balancing is a design of process problem to eliminate bottlenecks. It depends on capacity needed for future demand at a specified time Bottlenecks are due to low output, slow speeds, frequent breakdowns. Two approaches to balance a line 1) Occasional shut down of high output machine 2) Increase capacity of bottleneck machine
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Cellular Manufacturing


Layouts 1. Process layout low volume, high variety job shop 2. Process layout high volume, low variety transfer lines 3. Cellular layout combines high volume and variety makes a family of parts flexibly
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Cellular Manufacturing


Warehouse

Process-Oriented Layout
Saw Press Grind Heat Treat Weld Paint

Warehouse

Receipt Of Order Lathe Lathe

FINAL ASSLY.

Lathe

Sub-Assly

Sub-Assly

Warehouse

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Cellular Manufacturing


Fabrication Subassembly
Saw Receipt Lathe Grind Heat Treatment Lathe Weld Sub-Assly Paint Final Assembly

Product-Oriented Layout
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Cell Manufacture For JIT


O O
Parts

O O O
Parts

O
O O O O
Parts

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Cellular Manufacturing


Features of Cells
1. Flexibility of routing less than process, more than product layout 2. Material flow better than process, lesser than product 3. WIP lesser than process, similar to product 4. Lead times shorter than process, similar to product 5. Volumes medium, process low, product high
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Cellular Manufacturing


Cellular Design eliminates waste of 1. Motion 2. Waiting Time 3. Inventory 4. Floor Space

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Single Piece Production Flow


Steps to achieve single piece production flow 1) Multi-skilled workers 2) U-shaped layout for handling multi-processes 3) Reduce set-up time 4) Standard combinations of operations 5) Greater teamwork and coordination
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Single Piece Production Flow


Make today what is sold yesterday Make now what is sold now in single pieces Results in: Fewer workers Less equipment Less Warehouse space Fewer managers
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Operation Scheduling


Levels of Planning (top-down) Vision and Mission, Goals and Objectives Corporate and Business Strategy Operations Strategy Capacity Planning Master Production Schedule weekly MRP operational planning, daily
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Operation Scheduling


Veena to draw 9.1, 114/120

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Operation Scheduling


MRP and MRP II MRP is push system Has problems when sales forecast is wrong, no capacity planning, no feedback of production v/s plan MRP II includes Capacity Planning, Other resource planning like Finance, Production Schedule but is still a (refined) push system
Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602

JIT Production Operation Scheduling


JIT Pull System, with stabilised MPS
Use Kanban, not forecast for production control Plan MPS for a fixed period say a month - to plan work schedules Within the month, the MPS is leveled (same quantity) on a daily basis Kanban quantities. This is Production smoothing Transfer plan to all work centers and suppliers
Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602

JIT Production Multi-Function Worker


Design processes for
Multi-process holding, Multi-function worker (Shojinka) and Creative thinking (Soikufu) Multi-function worker provides flexibility, promotes teamwork and increases productivity Creative thinking uses workforce knowledge and experience to uncover and solve problems) Multi-functioning includes machine cleaning, simple maintenance and 5 S participation
Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602

JIT Production Set-up Time Reduction


Total time = set-up time (non-productive) + operations time (productive) Set-up time decided by number of set-ups and time per set-up Reducing set-up time increases available capacity and flexibility, and reduces inventory As set-up time approaches zero, lot size of one is approached
Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602

JIT Production Set-up Time Reduction


Driving down set-up time 1. Use two set of dies 2. Have quick-change adjustments 3. Employ cleverly designed tools and fixtures NOTE: Economic Batch Quantity balances set-up cost and inventory carrying cost. Driving down set-up time reduces set-up cost & EBQ tends to one
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Set-up Time Reduction


SMED key technical breakthrough to move to Pull system and One-piece flow Divide die-changing to two components 1. IED (Inside Exchange of Dies). Performed only after machine is stopped e.g. mounting the die 2. OED (Outside exchange of Dies). Performed when machine is running e.g. transporting dies to machine
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Set-up Time Reduction


Phases in SMED 1. Identify IED and OED 2. Target delays in IED for elimination 3. Convert as much IED as possible to OED 4. Reduce IED time by: eliminating adjustments, simplifying attachments and detachments, streamlining clamping methods, one touch exchange of dies
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Production Mixed Model Manufacturing


Mixed Model manufacturing

ABC ABC ABC and not AAA BBB CCC This helps to balance output in terms of daily/ weekly requirements of the individual product rather than produce in batches, aligned to customer demand Inventory gets significantly lower Mixed mode can be adjusted to pull Low set-up and cellular manufacture help mixed-mode
Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602

Module 5 TPS Pillar 1 JIT Information


5.1) Kanban System 5.2) Comparing Kanban and MRP

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Information Kanban System


Kanban 1) In Japanese, Kanban means marker. It is a card that signals need for another container of material 2) Each Kanban corresponds to a standard quantity of production quantity 3) Kanban carries vertically and laterally within a company and to suppliers also
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Information Kanban System


Kanban was derived two-bin inventory system Here the first bin is eliminated. The second bin has Kanban quantity. When that is taken for consumption, the kanban triggers the same quantity to be made Use of Kanban cards pulls production through the system rather than push it through the system. This prevents overproduction and inventory
Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602

JIT Information Kanban System


Types of Kanbans Withdrawal authorises moving one kanban quantity from preceding to subsequent station Production Kanban authorises production of kanban quantity in preceding station Subcontract Kanban: Instructs subcontracted supplier to deliver kanban quantity
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Information Kanban System


Types of Kanbans (continued)
Emergency Kanban Temporarily issued fordefective work, extra insertions or spurt in demand Special Kanban for job orders Signal kanban Used whn lot production takes place in job-oriented production. It is triangular, and placed at a ROL level to the bin. Operates similar to ROL
Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602

JIT Information Kanban System


Types of Kanbans (continued)
Combination Kanban A cart is used to physically move to preceding station like a withdrawal Kanban Electric Kanban For fully automated processes (like a transfer line). No workers. Material moves from station A to B automatically, triggered by Electric Kanban. Only at first station loading is done Other variations: colour code raw materials Kanban.
Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602

JIT Information Kanban System


Kanban Rules 1) Subsequent process withdraws from preceding process the necessary quantity at necessary time 1.1) Withdrawal without Kanban is prohibited 1.2) Withdrawals greater than number of Kanbans is prohibited 1.3) Kanban should always be attached to the physical product
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Information Kanban System


Kanban Rules (continued)
2) Preceding process produces quantities withdrawn by subsequent process, initiated when the withdrawal takes place 2.1) Production greater than number of Kanbans is

prohibited 2.2) Sequence of production of variety of parts in same process should follow the sequence in which each Kanban was delivered
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Information Kanban System


Kanban Rules (continued)
2.3) Where set-up change is needed in preceding process, it should be quick 2.4) If Kanban quantity is equal to re-Order Point, production must start immediately

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Information Kanban System


Kanban Rules (continued) 3) Defective products should never be sent to subsequent process. 4) Number of Kanbans should be minimised 5) Kanban system should be used to adapt to only small fluctuations in demand

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Information Kanban System


Adapting to Demand Fluctuation Minor fluctuations are met through temporary increase of capacity like overtime (10-30% variation in demand can be met by changing frequency of Kanban transfers, without revising the number of Kanbans Kanban cannot cater to major seasonal changes. These should be dealt as production smoothing
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Information Kanban System


Two other Kanban concepts
1) Whirligig Beetle (Mizusumashi) A forklift moves moves through various processes picking up parts for subsequent processes

2) Round Tour System: If 4 suppliers need to supply parts 4 times a day to the line, the first supply is by supplier A who picks up required parts from B, C, D also. Second supply is by B who picks up parts from A, C, D also. And so on.
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Information Kanban System


Determining number of Kanban cards (containers)
1) Let n = total containers/ kanban cards, D = demand rate of succeeding (using) centre (2 parts per minute), C = container size in number of parts (25), T = lead time for a container to complete a full circuit of fill, wait, move, used and return to fill (100 minutes) 2) Number of containers n = DT/C = 2*100/25 = 8 3) Maximum inventory = nC = DT = 8*25 = 200 4) Reducing lead time (T) is the key to inventory control
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Information Kanban System


Advantages of Kanban 1) Containers are small and standardised control inventory 2) Emphasis is on meeting schedules, reducing time and cost of set-up, economical material handling 3) Kanban is a visible system easily worked NOTE: Kanban is suitable only for repetitive production and the demand is reasonable stable
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

JIT Information Comparing Kanban and MRP


1) Kanban is pull, MRP is push 2) MRP is based on sales forecast, Kanban on a repetitive master Schedule of shorter duration 3) MRP results in build for stock, Kanban results in build for demand 4) In MRP production peaks and falls in a month, in Kanban production is smooth 5) Kanban highlights and reduces wastes like long set-up time, lower inventory, lower total cycle time
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Module 6 TPS Pillar 2 Autonomation (Jidoka)


6.1) Andon 6.2) Yo-I-Don 6.3) Poka-Yoke

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Autonomation - Andon
Autonomation (or Jidoka) is developed to give machines the intelligence to stop automatically as soon as an abnormality occurs and send a signal to draw the operators attention This is achieved by using light signals called Andon - meaning lantern in Japanese Andon light is used to expose abnormalities immediately so that they can be controlled

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Autonomation - Andon
World class operations quickly identify problems (abnormalities) and respond to it. Autonomation (or Jidoka) is developed to give machines the intelligence to stop automatically as soon as an abnormality occurs and send a signal to draw the operators attention This is achieved by using light signals called Andon meaning lantern in Japanese Andon light is used to expose abnormalities immediately so that they can be controlled
Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602

Autonomation - Andon
Problem Identification in Automatic Operations

This can be achieved by giving intelligence to the machine to sense the abnormal. Examples: 1. A limit switch to sense need for replenishing raw materials 2. Fixing a counter to stop a machine for maintenance after a pre-determined number of cycles are over 3. Fixing a timer for a fixed time operation
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Autonomation - Andon
Problem Identification in Automatic Operations (contd) When the intelligence makes the machine stop, a buzzer and a light go on The buzzer draws the operators attention that an abnormality has occurred The lamp pinpoints the location Andon Green light shows machine is working okay (normal). Yellow shows requires attention(defects happening) before it leads to stoppage. Red light shows stoppage (parts shortage)
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Autonomation - Andon
Types of Andon

1. Paging Andon (Yellow) to request material replenishment 2. Emergency Andon (Yellow) to indicate abnormalities 3. Operation Andon (Green) all is okay 4. Progress Andon Different Andons on different interconnected lines
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Autonomation Yo-I-Don
Yo-I-Don It is indicative of Ready, Set and Go It is an autonomation method using andon and specially applied in group processes Group processes are generally made of sub-processes (cells) which all work synchronously as per takt time. If any process is lagging behind, process operators use Andon lights to control speed of the process. Process operators have authority to stop the line
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Yo-I-Don

Autonomation Yo-I-Don

Yo-I-Don Lights is like call buttons for airline hostesses If a sub-process is unable to finish in the takt time, or an operator needs major help, he can switch on the red light If operator needs temporary/ minor help, he can switch on the yellow light If all is well and within takt time, it is green light. If all Yo-I-Dons of a linked process are green, it is working synchronously NOTE: Yo-I-Don lights are for a cell. They are in addition to Andon lights of individual proceses of the cell
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Autonomation Yo-I-Don
Comparing Andon and Yo-I-Don Both use lamps to communicate status of operation, draw attention of operator/ supervisor, attend the problem and set it right Andon draws attention to one operation within a multi-machine/ multi-operation set up Machine stops automatically when process is over or problem occurs Used in unlinked cells/ process units
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Autonomation Yo-I-Don
Comparing Andon and Yo-I-Don

Yo-I-Don is applying andon to group working and multi-cell working This ensures takt time is maintained by all the linked processes The lagging or delaying process can be helped so that overall takt time is maintained

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Autonomation Poka-Yoke
Poka-Yoke Japanese word meaning fool-proof mechanism Fool-proofing or mistake-proofing prevents operatos from committing a mistake in the process Poka-Yoke identifies areas requiring operators visual attention & eliminates need for visual attention It makes operation fool proof by stopping machine if anything wrong is attempted Helps reduce inspection time in succeeding process
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Module 7 TPS Support Function


7.1) 5S 7.2) JIT Purchasing

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

TPS Support Function 5S


5S gives five good housekeeping concepts Seiri Sort out unnecessary items Seiton Arrange items in good order a place for everything and everything in its place Seiso Clean workplace thoroughly Seiketsu Maintain high standards of housekeeping always Shitsuke Train people to follow good housekeeping autonomously
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

TPS Support Function 5S


Functional Influence of 5S Safety as place is well organised Efficiency improves at an organised workplace Quality not hampered as the place is clean Elimination of breakdown correct labeling prevents a wrong button being pushed, leading to problems Helps in Quality, Cost, Time efficiencies Searching for Something Sagasu leads to waste
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

TPS Support Function JIT Purchasing


JIT Purchasing Right parts in right quality at right place and time through supplier cooperative relationship JIT Purchasing eliminates waste and non-value added items, effective implementation of kanban, continuous process improvement Reduced supplier base helps to achieve the above
Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Advantages of reduced number of suppliers 1) Manage quality than quantity 2) Less paper work 3) Work closely with suppliers 4) Economies of scale 5) Reduce variability of supplies 6) Easier coordination 7) Easier quality certification of supplier
Dr. Gopal Iyengar

TPS Support Function JIT Purchasing

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

Kirloskar Institute of Advanced Management Studies, Yantrapur, Harihar 577 602 Dr. Gopal Iyengar

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