In: Operations Management
PULL MANUFACTURING SYSTEM IN TOYOTA COMPANY
Basic Idea and Framework :
The Toyota production system is a technology of comprehensive
production management the
Japanese invented a hundred years after opening up to the modern
world. The basic idea of this
system is to maintain a continuous flow of products in factories in
order to flexibly adapt to demandchanges. The realization of such
production flow is called Just-in-time production, which means
producing only necessary units in a necessary quantity at a
necessary time. As a result, the excess inventories and the excess
work force will be naturally diminished, thereby achieving the
purposes of increased productivity and cost reduction.
The basic principle of Just-in-time production is rational; that
is, the Toyota production system
has been developed by steadily pursuing the orthodox way of
production management. With the realization of this concept,
unnecessary intermediate and finished product inventories would be
eliminated, However, although cost reduction is the system's most
important goal, it must achieve three other sub-goals in order to
achieve its primary objective. They include:
.Quality control, which enables the system to adapt to daily and
monthly fluctuations in
demand in terms of quantities and variety;
• Quality assurance, which assures that each process, will
supply only good units to the
subsequent processes.
Respect-for-humanity, which must be cultivated while the system
utilizes the human resource
to attain its cost objectives. It should be emphasized here that
these three goals cannot exist independently or be achieved
independentlv without influencing each other or the primary goal of
cost reduction. All goals are output of the same systerm; with
productivity as the ultimate purpose and guiding concept, the
Toyola production system strives to realize each of the goals for
which it has been designed. Before discussing the contents of the
Toyota production system in detail,an Overview of this system is in
order. The outputs or result side as well as the inputs or
constituent side of the production system are depicted.
A continuous flow of production, or adapting to demand changes in
quantities and variety, is
created by achieving two key concepts: Just-in-time and Automation.
These two concepts are the pillars of the Toyota production
system.
Just-in-time basically means to produce the units in the
necessary quantities at the necessary time. Automation ("Jidoka" in
Japanese) may be loosely interpreted as autonomous defects
control. It supports Just-in-time by never allowing defective units
from the preceding process to flow into and disrupt a subsequent
process. Two concepts also key to the Toyota production system
include Flexible work force ("Shojinka" in Japanese) which means
varying the number of workers to demand changes, and Creative
thinking or inventive ideas ("soikufu"), or capitalizing on
workers. suggestions
To realize these four concepts, Toyota has established the
following systems and methods:
• Kanban system to maintain Just-in-time production
- Production smoothing method to adapt to demand changes
- Shortening of set-up time for reducing the production lead
time
• Standardization of operations to attain line balancing
. Machine layout and the multi-function worker for flexible work
force
. Improvement activities by small groups and the suggestion system
to reduce the work force
and increase the worker's morale.
- Visual control system to achieve, the Automation concept
• Functional Management system to promote company-wide quality
control.
MATERIAL HANDLING
Just-in-Time Production
The idea of producing the necessary units in the necessary
quantities at the necessary time is described by the short term
Just-in-time. Just-in-time means, for example, that in the process
of assembling the parts to build a car, the necessary kind of
sub-assemblies of the preceding processes should arrive at the
product line at the time needed in the necessary quantities. If
Just-in-time is realized in
the entire firm, then unnecessary inventories in the factory will
be completely eliminated, making
stores or warehouses unnecessary. The inventory carrying costs will
be diminished, and the ratio of capital turnover will be
increased.
However, to rely solely on the central planning approach, which instructs the production schedules to all processes simultaneously, it is very difficult to realize Just-in-time in all the processes for a product like an automobile, which consists of thousands of parts. Therefore, in Toyota system, it is necessary to look at the production flow conversely, in other words, the people of a certain process go to the preceding process to withdraw the necessary units in the necessary quantities at the necessary time. Then what the preceding process has to do is produce only enough quantities of units to replace those that have been withdrawn.
KANBAN SYSTEM
Many people think the Toyota production system a Kanban system:
this is incorrect. The Toyota
production system is a way to make products, whereas the Kanban
system is the way to manage the Just-in-time production method. In
short, the kanban system is an information system to harmoniously
control the production quantities in every procesą. It is a tool to
achieve just-in-time production. In this system what kind of units
and how many units needed are written on a tag-like card called
Kanban. The Kanban is sent to the people of the preceding process
from the subsequent process. As a result, many processes in a plant
are connected with each other. This connecting of processes in
a
factory allows for better control ofnecessary quantities for
various products. The following supports the Kanban system:
• Smoothing of production
• Reduction of set-up time design of machine layout
• Standardization of jobs
. Improvement activities
. Autonamation
A kanban is usually a card put in a rectangular vinyl envelope.
Two kinds are mainly used:
Withdrawal Kanban and Production-ordering Kanban. A Withdrawal
Kanban details the kind and quantity of product, which the
subsequent process should withdraw from the preceding process,
while a Production-ordering Kanban specifies the kind and quantity
of the product, which preceding process must produce.
The Withdrawal kanban shows that the preceding process which makes
this part is forging ,and the carrier of the subsequent part must
go to position B-2 of the forging department to withdraw drive
pinions. The subsequent process is machining. The Kanban shows that
the machining process
SB-8 must produce the crankshaft for the car type. The crankshaft
produced should be placed at store F26-18. These cards circulate
within Toyota factories, between Toyota and its many co-operative
companies, and within the factories of co-operative companies.
In this manner, the Kanban can contribute information on withdrawal and production quantities in order to achieve Just-in-time production.
Suppose we are making products A, B, and C in an assembly line.
The parts necessary to produce these products are a and b which are
produced by the preceding machining line. Parts a and b produced by
the machining line are stored behind this line, and the
production-ordering Kanbans of the line are attached to these
parts. The carrier from the assembly line making product A will go
to the machining line to withdraw the necessary part a with a
withdrawal kanban. Then, at store, he picks up
as many boxes of this part as his withdrawal kanbans and he
detaches the production-
ordering kanban attached to these boxes. He then brings these boxes
back to his assembly line, againwith withdrawal kanbans. At this
time, the production-ordering Kanbans are left at store of
themachining line showing the number of units withdrawn, These
Kanbans will be the dispatching information to the machining line.
Part a is then produced in the quantity directed by that number of
Kanbans. In this machining line, actually, parts a and b are both
withdrawn, but these parts are produced according to the detached
order of the production-ordering Kanbans.
AUTONAMATION
In order to realize Just-in-time perfectly, 100 per cent good units must flow to the prior process, and this flow must be rhythmic without interruption. Therefore, quality control is so important that it must coexist with the Just-in-time operation throughout the Kanban system. Autonamation means to build in a mechanism a means to prevent mass-production of defective work in machines or product lines. Autonamation is not automation, but the autonomous check if abnormality in the process.
The autonomous machine is a machine to which an automatic
stopping device is attached. In
Toyota factories, almost all the machines are autonomous, so that
mass-production of defects can be prevented and machine breakdowns
are automatically checked. The idea of Autonamation is also
expanded to the product lines of manual work If something abnormal
happens in a product line, the worker pushes stop button, thereby
stopping his whole line. For the purpose of detecting troubles in
each process, an electric light board, called Andon, indicating a
line stop, is hung so high
in a factory that it can easily be seen by everyone. The Andon in
the Toyota system has an important role in helping this autonomous
check, and is a typical example of Toyota's "Visual Control
System."
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