Toyota’s lean management Harel cohen Maxim shulman

Since the early days, till now -In 1910, Henry Ford invented the assembly line for his standardized Ford Model T. - Toyota's journey started back in 1934 when it moved from textiles to produce its first car. -Eiji toyoda traveled to the United States to study the American automotive industry and report on American manufacturing methods. -After the Second World War, Taiichi toyoda created the “Just In Time”, “Waste Reduction” and “Pull System” concepts for Toyota.

Main Ideas: Human element – Puts ordinary workers in the spotlight. – Each worker recognizes and knows the other processes. – When a worker fails, the company fix the problem with him together. – No firing for reduce costs.

Financial element – The market determines the price. – The old method: cost + profit=price – The new method: price-cost=profit Reducing Costs=more profit – The solution: to remove the waste from the factory

Lean management method Purpose: To save wasting resources – Stock – Excess production – Unnecessary movements – Strikes and defective products – Mechanical failure – Delay

Kanban Process Advantages – Allows to bring the products required at some point and satisfy the need without unnecessary warehouses and without Waste on the line. – When the production Line in stopped, the supply line is stopped to and it saves burden on the Production floor.

Kanban Process Advantages – Saves 10% to 50% in the Reserve storage. – Saves 10% in the process time.

Principles of the method – Interim Storage Organizers carrier which is suitable for the production line to the amount required for production. – Working in kits which routine in factory.

KIT 1 in work KIT 2 waiting for work warehouse Work transfer the empty KIT KIT 1 waiting for transfer KIT 2 made by worker Assembly position

Principles of application of the method – Pull Just the parts required and no more. – Clear definition of the amount of kit items. – Refrain from sending defective products – Shipping rate adjusted the rate of production, no more and no less, so as not to create a burden rather than create a void.

DISADVANTAGES Supply Problems Customer Dissatisfaction Problems High Cost of Implementation Lack of Acceptance by Employee.

How Can Lean Manufacturing Backfire using common parts across multiple product lines, and reducing the number of suppliers — can backfire. -Toyota: a defective gas pedals has forced to halt sales of more than half of its U.S. models and recalled an unspecified number of cars in Europe. -Ford: in 2009 announced a recall of 4.5 million cars to address a fire hazard involving a faulty cruise-control deactivation switch used across different models. -Panasonic: recalled three million microwave ovens, clothes dryers and refrigerators. The cost may be decreased in the short term, but the risk is increased as well.