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Group No : 3

Samir Diwakarrao Kitukale

Mouna Kumar

Pankaj Sharma

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History of Toyota

Production System in Toyota

Just In Time Analysis

Three major SectionsFuture of JIT

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y 1897: Sakichi Toyoda diversified into handloom

y 1926: Toyoda Automatic Loom Works(TALW)

y 1933: Explored into automobile industry .

y 1935: Development of passenger car prototype.

y 1937: TMC was established

y 1947: First small car (SA Model) was launched.

y

1950: TMS company Ltd was formed

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y 1953: Started exporting the automobiles

y 1957: Entered US market through subsidiary

y 1959: First overseas manufacturing at Brazil

y 1970: Became the Third largest manufacturery 1974: Worlds largest selling car Corolla

y 1984: JV with GM called NUMMI.

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y Aimed at producing world class, quality automobiles atcompetitive prices.

y TPS stood as a benchmark in manufacturing and

product development.y Based on two main principles:

y JIT

y Jidoka

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y It is a new dimension for manufacturing.

y Evolved in early1970s in Japan

y Kanban & Heijunka are the essential components of

JITy Increase production volume by optimizing inventory

y Has direct impact on time, inventory, scrap

y Ideal lot size is 1

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CHARACTERISTICS JIT SYSTEM NON JIT SYSTEMS

Labor Division Flexible Work teams Rigid work segments

Setting Standards Standardization of methods Standardization of methods

InventoriesDiscipline

Production runs

Low InventoriesSelf Discipline of workers

Small batch sizes

High InventoriesDiscipline imposed throughstrict hierarchical

organizationLong Runs

Planning FlowSet up times

Last stage firstFrequent

First stage lastInfrequent

Operating Control

Interdependence

Decentralized

Increased

Centralized

Lowered

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y Price flexibility by managing inventory.

y Reduction in product variation.

y Zero waste.

y High quality product.y Low cost for consumer.

y Customer satisfaction.

y

Shortened lead time.

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y Based on the key assumption that the source and thechannel of supply are dependable all the time.

y Did not take the possibility of labor strike at

automotive plant.y Cost indulged in set up and training of employees is

high.

y Risk of inventory shortage is high.

y Production planning is entirely dependant onforecasting of demand.

y Equipment failure and employee absenteeism.

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y Concept brought from retail industry to automobile

y A piece of paper used to convey sophisticatedinformation

y Simple part movement system dependant on card fromone work station to another

y Delivers the component at required time

y Its a pull system

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ConveyanceKanban Returned

Containers

ProductionKanban

Output Buffer( fullcontainers awaiting

transport)

Input Buffer( fullcontainers from previous

stage)

EmptyContainers

ConveyanceKanban

Transport tonext stage

C C C P PP

C P

C

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Factors Toyotas Kanbanphilosophy

Westernphilosophy

Inventory A liability An asset

Lot size Immediate needs only Formula (EOQ, lot per

lot)Set ups Make them insignificant Low priority

Queues Eliminate queues Necessary investment

Vendors Co- worker, part oforganization

Multiple sources

Quality Zero defect Tolerate some scrapEquipment maintenance Constant and effective As required break down

Lead times Keep them short Longer

workers Management by consensus

Management by edict

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y Later process went to the earlier to pick product.

y Produce only the amount picked by later process.

y Should not pick or produce with out Kanban.

y 100% defect free parts were required.y Reduce number of Kanban.

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y Simple understandable process.

y Provide quick and precise information.

y Low cost for information transfer.

y Quick response to change.y Limit over capacity in process.

y Minimize waste.

y Delegate responsibility to worker.

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y Highly inter dependable process.

y Wrong Kanban may cause loss of production.

y More depend on worker.

y Involve high training cost.

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y Second important concept of JIT.

y Help to accomplishment creating consistentproduction volume.

y Average the highest and lowest variations of the order.y Variation removed to ensure right quantity of part

produce with minimum work force.

y Taking care of item produce in large volume and also

type of item produce.

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y Automatic or manual defect detection system.

y Stop system when defect occurs.

y improvement is done by the worker who stop the

system and necessary action is taken.y Allow the worker to stop the assembling line.

y Encourage thinking process of the worker.

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y As JIT is supposed to be in contact with production orassembly line but it has its applicability in all thedepartments for cost reduction.

y

Its successful only in Japany Equipment failure and employee absenteeism

y Unexpected events such as strikes and naturalcalamities were not taken into account

y Suppliers geographical locations can be of matter invarious sectors. e.g. Pharmaceuticals

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y TALW: Toyoda Automatic Loom Work.

y TMC: Toyota Motor Corporation.

y TMS: Toyota Motor Sales.

y NUMMI: New United Motor Manufacturing Inc.

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Thank you