1. Toyota Production System (TPS) MGMT- E5060 Operations Management

2. Food for Thought……

3. Toyota Production System (TPS) The Roots of the Toyota Production System (TPS) –Taiichi Ohno, VP of Manufacturing, and Shigeo Shingo, head of industrial engineering and factory improvement training, developed the Toyota Production System. –They emphasized: o The minimization of all waste. o“Doing it right the first time.” Ohno Shingo o Continuous Improvement o Leveraging the front line workers

4. The Seven Wastes in TPS 1.Overproduction – Producing more than, faster than or sooner than is required 2.Waiting – Idle time that could be used productively 3.Transporting – Unnecessary transport of parts or materials 4.Inappropriate processing – Operations that add no value from the customer’s perspective 5.Unnecessary inventory – Exceeding one-piece flow 6.Unnecessary/excess motion – Any movement by people or equipment that does not add value 7.Defects – Rework, repair or waste in its simplest form

5. 14 Toyota Management Principles (1-7) Use only reliable, thoroughly tested technology that serves your people and processes. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. Develop exceptional people and teams who follow your company’s philosophy. Respect your extended network of partners and suppliers by challenging them and helping them improve. Go and see for yourself to thoroughly understand the situation (manage by walking around). Make decisions slowly and implement rapidly consider all options Become a learning organization through relentless reflection (Hansei) and continuous improvement (Kaizen).

6. 14 Toyota Management Principles (8-14) Make decisions on a long-term philosophy, even at the expense of short-term financial goals. Design processes so that problems quickly come to the surface. Use "pull" systems to avoid overproduction Eliminate overburdens on people and equipment. Build a culture of stopping to fix problems, to get quality right the first time. Standardized tasks and processes are the basis for continuous improvement and employee empowerment. Design visual controls so that problems aren't hidden.

7. TPS Terminology Andon - A type of visual control that displays the current state of work (i.e., abnormal conditions, work instructions, and job progress information). It is one of the main tools of Jidoka. Genchi Genbutsu - Go see the problem. This is the belief that practical experience is valued over theoretical knowledge. You must see the problem to know the problem. Hoshin - Goals (with targets) and means for achieving it to address business priorities to move the organization to a new level of performance. Jidoka - Jidoka helps prevent the passing of defects, helps identify and correct problem areas using localization and isolation, and makes it possible to “build” quality at the production process. Jishuken - Management driven kaizen activity where management members identify areas in need of continuous improvement and spread information through the organization to stimulate kaizen activity.

8. TPS Terminology (cont.) Just-In-Time - One of the two main pillars of TPS. It refers to the manufacturing and conveyance of only “what is needed, when it is needed, and in the amount needed.” Kanban - Visual control tool to check for over production and to detect irregular processing speeds. Kaizen - A system of continuous improvement in which instances of Muda (waste) are eliminated one-by-one at minimal cost. Muda - Non-value added. Muda is translated as waste. Nemawashi - Preliminary work to involve other sections/departments in discussions to seek input, information and/or support for a proposal or change. Pokayoke - Low cost, highly reliable devices, used in the Jidoka system, that will stop processes in order to prevent the production of defective parts.