Japanese Manufacturing Techniques Dror Avitan Shuki Agibayev /11/2015

Area of influential practices and philosophies emerged in the post-World War II era and reached the height of their prominence in the 1980’s. Many adaptations of Japanese methods have made their way into U.S. Distinguishing characteristics: Emphasis on designing processes to optimize efficiency. Strong commitment to quality. Background

The most widely recognized collection of Japanese manufacturing techniques. The core of which is Just-In-Time (JIT) production or so-called lean production. The pioneers of these method: Toyota Production System (TPS) Taiichi Ohno A former Toyota executive Shigeo Shingo Eminent engineer & consultant

Form a contrast to traditional (pre-1980’s) Western manufacturing, which tended to emphasize mass production, full capacity utilization and the economies of scale. Toyota Production System (TPS) – (2)

Basic Features of TPS 1.It achieves cost reductions by eliminating waste (be it staff time, materials, or other resources). 2.It reduces the likelihood of overproduction by maintaining low inventories (non-stock) and keeps labor costs low by using minimal manpower. 3.It reduces production cycle time with innovations which cuts downtime and enables small-lot production. 4.It emphasizes that product orders should guide production decisions and processes (a practice known as order-based production).

Eliminating Waste The task of reducing waste often centers first around identifying unnecessary uses of human, capital, or physical resources. After waste is targeted, new processes or practices can be devised to deal with it.

TPS distinguish between activities that add value to a product and those that are logistical but add no value. When processes are examined for potential improvements and cost cutting, reducing non- value-added activities is often the highest priority. Processes that add the most value, even if they are expensive, will usually not be compromised to achieve lower costs at the expense of quality. Value Added

Process Improvement Designing efficiency into production processes and methods. Major process improvements often occur through a series of smaller initiatives (“kaizen”(Japanese)=continuous improvement). Selectively redesign the manufacturing tasks so they could be more easily and reliably mastered. Examples: 1)Lowering the time and complexity required to change a die in a manufacturing process. 2)The concept of “poka-yoke” which involves designing a foolproof process to eliminate the chance of errors.

hours 6 months later 1.5 hours End of minutes Die-Changing Process Improvement Guiding principles: 1.Lowering the complexity of the changeover process. 2.Standardizing the tools used in it.

Poka-Yokes Examples

Non-Stock & Order-Based Production Just-In-Time (JIT) production -The company produces goods at the exact quantity and schedule that they are required by its customers. Systems like the Japanese “Kanban” established a set of simple visual cues in the factory to help coordinate and synchronize the flow of materials and work.

Kanban System Example

Worker Flexibility Human time is more valuable than machine time. Emphasis of cross-training workers to perform various functions as needed, rather than tying them to a particular machine or process. This creates well-rounded employees who can be assigned exactly where needed in the process without creating delays or diminishing the quality of work. Converting to a multi-machine worker system reportedly achieved 20%-30% gains in worker productivity.

Market-Driven Pricing Identify the market-determined price for a good and then engineer the manufacturing process to produce at this price profitably. Increasing in costs are not passed on to the consumer in the form of higher prices. As a corollary, the only way for a firm to increase profitability is by lowering costs. Lower costs may also allow the company to be profitable yet deliver products at the low end of pricing spectrum.

Toyota Motor Manufacturing Kentucky (TMMK)

Toyota Advantages Over Most Auto- Makers Experience of 50 years doing lean manufacturing. Tight network - Sharing ideas/“kaizens” with other Toyota’s centers around the world. The DNA of TPS: the culture - how people think, trained and treat each other. The concept at the heart of TPS: The customer is always first. Identifying problems very early in a car’s development. Treating the suppliers as partners.

Supply Chain Complexity Solutions Delivering all materials to a consolidated building where they are taken in, unpacked and sorted in rapid order, then delivered directly to lineside and pulled by the vehicle being built (Just-In-Time). Preferring the use of tuggers/AGVs vehicles rather than fork-lift trucks for the internal lineside deliveries. Building and customizing the AGVs vehicles in-house. Utilizing external logistics suppliers (the plant consolidated building is also managed by a supplier). Locating suppliers closer to the factory (TMMK has 350 U.S. suppliers, over 100 located in Kentucky).

TMMK Internal Delivering Vehicles Automated Guided Vehicle (AGV) Tugger

Assembly Line Complexity Solutions Line simplification: dedicated workers sequence and put all the parts need for the different assembly operations in little plastic Wal-Mart totes that delivered to the line with the designated vehicle. Toyota avoids taking large sub assemblies away from the line (except of cases it makes sense). Automation is kept to a minimum: “A robot cannot look for other defects, it can only do what you tell it to do”. Attention is paid to making sure that technicians can reach the parts they need to fit safely and comfortably, thus aiding quality: “Our team members are well trained, they have good eyes and good standardized work”.

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