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MIT 2 810 - The Toyota Production System

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2.810 T.G.Gutowski 10/25/04 1The Toyota Production SystemHigh Quality and Low CostReadings;James Womack, Daniel T. Jones and Daniel Roos,The Machine that Changed the World, 1990, Ch 3 and 4Kenneth N. McKay, “The Evolution of Manufacturing Control-What Has Been, What Will Be” Working Paper 03 –2001Michael McCoby, “Is There a Best Way to Build a Car?”HBR Nov-Dec 1997COST VS DEFECTS2.810 T.G.Gutowski 10/25/04 2Consumer Reports2.810 T.G.Gutowski 10/25/04 3September January - SeptemberUnits % Share DSR VolCurrent Year-Ago Current Year-Ago % Chg. Current Year-Ago % Chg.Domestic Cars431,496 481,318 35.3 37.3 -2.6 4,594,203 4,865,569 -5.6Import Cars170,554 158,897 13.9 12.3 16.7 1,708,780 1,566,286 9.1Total Cars602,050 640,215 49.2 49.7 2.2 6,302,983 6,431,855 -2.0Domestic Light Trucks545,865 573,329 44.6 44.5 3.5 5,769,260 5,621,805 2.6Import Light Trucks75,999 75,575 6.2 5.9 9.3 798,656 711,178 12.3Total Light Trucks621,864 648,904 50.8 50.3 4.2 6,567,916 6,332,983 3.7Domestic Light Vehicles977,361 1,054,647 79.9 81.8 0.7 10,363,463 10,487,374 -1.2Import Light Vehicles246,553 234,472 20.1 18.2 14.3 2,507,436 2,277,464 10.1Total Light Vehicles1,223,914 1,289,119 100.0 100.0 3.2 12,870,899 12,764,838 0.8Ward's U.S. Light Vehicle Sales SummaryToyota vehicle sales20022.810 T.G.Gutowski 10/25/04 4The Toyota Production System1. Historical View 2. Performance measures 3. Elements of TPS4. Six Eras of Manufacturing Practice5. Difficulties with Implementation2.810 T.G.Gutowski 10/25/04 5Three Major Mfg Systemsfrom 1800 to 20001800 1900 2000Machine tools, specialized machine tools, Taylorism, SPC, CNC, CAD/CAM Interchangeable Parts at U.S. ArmoriesMass Production at FordToyota Production System2.810 T.G.Gutowski 10/25/04 6Key Elements for New Mfg SystemsJapaneseBanksTaiichiOhnoCNC, Integration of LaborJobs,SecurityPost WarToyota Production SystemEarningsHenryFordMovingAssemblyLine,etc$5/dayImmigrantTrans-portationMassProductionU.S.GovtRoswell Lee/JohnHallMachine Tools, Division ofLabor“Yankee Ingenuity”MilitaryInterchange-able PartsResourcesLeaderEnabling TechnologyWork Force MotivationNeed of SocietyElement/System2.810 T.G.Gutowski 10/25/04 7Q. By what method did these new systems come about?A. Trial and Error2.810 T.G.Gutowski 10/25/04 8History of the Development of the Toyota Production System ref; Taiichi Ohno194519752.810 T.G.Gutowski 10/25/04 9The Toyota Production System1. Historical View 2. Performance measures 3. Elements of TPS4. Six Eras of Manufacturing Practice5. Difficulties with Implementation2.810 T.G.Gutowski 10/25/04 10Japanese Japanese in American in All Europein Japan North America North AmericaPerformance:Producvitity (hours/Veh.) 16.8 21.2 25.1 36.2Quality (assemblydefects/100 vehicles) 60 65 82.3 97Layout:Space (sq.ft./vehicle/yr) 5.7 9.1 7.8 7.8Size of Repair Area (as %of assembly space) 4.1 4.9 12.9 14.4Inventories(days for 8sample parts) 0.2 1.6 2.9 2Work Force:% of Work Force in Teams 69.3 71.3 17.3 0.6Job Rotation (0 = none,4 = frequent) 3 2.7 0.9 1.9Suggestions/Employee 61.6 1.4 0.4 0.4Number of Job Classes 11.9 8.7 67.1 14.8Training of New ProductionWorkers (hours) 380.3 370 46.4 173.3Absenteeism 5 4.8 11.7 12.1Automation:Welding (% of direct steps) 86.2 85 76.2 76.6Painting(% of direct steps) 54.6 40.7 33.6 38.2Assembly(% of direct steps) 1.7 1.1 1.2 3.1Source: IMVP World Assembly Plant Survey, 1989, and J. D. Power Initial Quality Survery, 1989Summary of Assembly Plant Characteristics, Volume Producers, 1989 (Average for Plants in Each Region)2.810 T.G.Gutowski 10/25/04 11Cost Vs DefectsRef. “Machine that Changed the World” Womack, Jones and Roos2.810 T.G.Gutowski 10/25/04 12The Toyota Production System1. Historical View 2. Performance measures 3. Elements of TPS4. Six Eras of Manufacturing Practice5. Difficulties with Implementation2.810 T.G.Gutowski 10/25/04 13How do you get this kind of performance?1. Womack, Jones and Roos2. J T. Black’s 10 Steps3. Demand Flow Technology’s 9 Points4. MSDD, D. Cochran and Students2.810 T.G.Gutowski 10/25/04 14Womack Jones and RoosAutomation?n Yes, but….DFM?n ProbablyStandardized Production?n No!Lean Characteristics? n Integration of Tasksn Identification and removal of defects2.810 T.G.Gutowski 10/25/04 15Cost Vs AutomationRef. “Machine that Changed the World” Womack, Jones and Roos2.810 T.G.Gutowski 10/25/04 16J T. Black’s 10 StepsRef; JT. Black “Factory with a Future” 19911. Form cells2. Reduce setup 3. Integrate quality control4. Integrate preventive maintenance5. Level and balance6. Link cells – KANBAN7. Reduce WIP8. Build vendor programs9. Automate10. Computerize2.810 T.G.Gutowski 10/25/04 17Demand Flow Technology’s 9 Points1. Product Synchronization2. Mixed Model Process Maps3. Sequence of Events4. Demand at Capacity5. Operational Cycle Time6. Total Product Cycle Time7. Line Balancing8. Kanbans9. Operational Method Sheets2.810 T.G.Gutowski 10/25/04 18Current Value Stream Map2.810 T.G.Gutowski 10/25/04 19Future Value Stream Map2.810 T.G.Gutowski 10/25/04 20Manufacturing System Design Decomposition (MSDD)ROISalesCosts InvestmentsLower level actionsquality predictable output delay reduction− σ resolving problems σ µ2.810 T.G.Gutowski 10/25/04 21J T. Black –1, 21. Form CellsSequential operations, decouple operator from machine, parts in families, single piece flow within cell2. Reduce SetupExternalize setup to reduce down-time during changeover, increases flexibility2.810 T.G.Gutowski 10/25/04 22TPS Cell2.810 T.G.Gutowski 10/25/04 23Standardized Fixtures2.810 T.G.Gutowski 10/25/04 24J T. Black – 3, 43. Integrate quality controlCheck part quality at cell, poke-yoke, stop production when parts are bad4. Integrate preventive maintenanceworker maintains machine , runs slower2.810 T.G.Gutowski 10/25/04 25J T. Black – 5, 65. Level and balanceProduce to Takt time, reduce batch sizes, smooth production flow6. Link cells- KanbanCreate “pull” system –“Supermarket” System2.810 T.G.Gutowski 10/25/04 26J T. Black – 7, 87.Reduce WIPMake system reliable, build in mechanisms to self correct8. Build Vendor programPropagate low WIP policy to your vendors, reduce vendors, make on-time performance part of expectation2.810 T.G.Gutowski 10/25/04 27Manufacturing System Design Decomposition (MSDD)ROISalesCosts InvestmentsLower level actionsquality predictable output


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