1. “Japanese Manufacturing Techniques” & “Uprooting the Toyota Production System” PRESENTED BY: SLAVIK DEMIN & ALON SIMCHONI Based on the articles by xxxxxx & Anne Harris

2. Topics to be covered:  History and introduction to Japanese manufacturing.  The Toyota production system.  The leading principles in TPS.  The impact of TPS outside of Japan.  Uprooting the Toyota Production System and transplanting it to the US. 2

3. A brief history & introduction:  Japanese manufacturing emerged after WWII.  Reached it’s prominence during the 80’s.  This approach was oriented towards efficiency and quality.  Most widely recognized as the Toyota Production System (TPS).  The core of TPS is just-in-time production, or lean manufacturing. 3

4. The people behind TPS: 4 Shigeo Shingo (1909 – 1990)Taiichi Ohno(1912 – 1990)

5. Timeline: 5

6. What is the Toyota Production System? A production technique developed by Toyota that is a form of lean manufacturing. The system uses “Just-In-Time” methodology (“Kanban”) which consists of supplying what’s needed in the right time, right place & right quantity. 6 Material Machining AssemblyCustomer Shipment

7. The basics of TPS:  Waste elimination.  Reducing overproduction.  Reducing production time.  Order-based production.  Constant improvement (Kaizen). 7

8. Types of Waste:  Overproduction – excess goods.  Waste of waiting time, e.g. delays, idle workers.  Unneeded movement of material and/or products.  Poor process design.  Defects in product. 8

9. Waste Elimination:  Identifying unnecessary use of human, capital, or physical resources.  Minimalizing transportation.  Optimizing use of worker’s time – “Jidoka”. 9

10. Reducing Overproduction:  Using a non-stock method.  Avoiding the tying up of capital in the form of excess inventory.  Using the Kanban system to synchronize and coordinate the flow of materials and work. 10

11. Process Improvement:  SMED – Single Minute Exchange of Die.  Prioritizing value-adding activities.  Redesigning current methods.  The concept of Poka – Yoke. 11

12. Order Based Production:  “Kanban” – Production tracking system.  Just-in-Time production.  Forfeiting reliance on predictions or anticipated demand.  Looking at the present rather than analyzing the past/predicting the future. 12

13. Quality By Design:  Focusing on quality during the process rather than in the end.  Analyzing quality-control weak spots.  Fixing processes before they turn problematic. 13

14. Impact of Japanese Manufacturing:  Adoption by manufacturing firms outside of Japan.  Migration outside of Japan with emphasis on the US.  Adoption of hybrid methods. 14

15. Uprooting the Toyota Production System and transplanting it to the US:  New United Motor Manufacturing, Inc. ( NUMMI ) - a joint venture between GM and Toyota.  Georgetown Kentucky US plant.  Over 500,000 Toyota cars made in the US (2006)  The gap is closing but Toyota maintains the advantage.  Global Toyota – global kaizen. 15

16. Integration of TPS in the US plant:  Identifying problems in early development.  Partnership relations with suppliers.  Carefully chosen automation.  “Active Plant” quality control system.  Examples (part totes, Johnson controls). 16

17. Thanks for listening! Questions? 17