Samir Vaz

2012104

Section B

Toyota production system and Kanban system Materialization of just-in-time and respect-for-human system Case Study
The paper talks about two of the most important systems in practise at Toyota viz. Toyota Production System and Kanban System. Two of the most distinctive features of the above systems are just in time production and respect for humans. In just in time type of a system only the necessary products, at the necessary time, in necessary quantity are manufactured and in addition the stock on hand is held down to a minimum. Whereas respect for humans is a system where the workers are allowed to display, in full their capabilities through active participation in running and improving their own workshops. Toyota Production System (TPS) Toyota Production System came into being because of the Japans distinguishing features as explained below; Lack of natural resources: As compared to other economic powerhouses Japan has limited natural resources, to make up for this its industries have to produce better quality good having high added value. Japanese attitude towards work: This includes traits such as, group consciousness, sense of equality, desire to improve, and diligence born from a long history of a homogenous race. Also includes high degree of ability resulting from higher education brought by desire to improve and centring their daily living around work. TPS achieves a low production cost by eliminating waste. This involves making a system that will thoroughly eliminate waste by assuming that anything other than the minimum amount of equipment, material, parts, and workers (working time) which are absolutely essential to production are merely surplus and that only raises the costs. The second involves building up a system that will allow the workers to display their full capabilities. Cost cutting by thorough removal of waste To see the fruits of the system Toyota has implemented just in time production and Jidoka Just in time production system tries to avoid problems such as inventory unbalance and surplus equipment and workers but adjust to fluctuations in demand. The goal here is to shorten the lead time, this is achieved by maintaining the conformity to changes by having all processes produce the necessary parts at the necessary time and have on hand only the minimum stock necessary to hold the process together. There are 4 aspects to this, viz. a) Withdrawal by subsequent process: To enable all process to quickly gain accurate knowledge of timing and control. b) One piece production and conveyance: Achieve a state where each process can produce only one piece, can convey it one at a time, and in addition, have only one piece in stock both between equipment and the process. c) Level Production: All processes perform small lot production and conveyance. d) Elimination of waste from over-producing: The underlying concept in just-timeproduction system is that the value of existence of inventory is disavowed. Jidoka at Toyota means to make the equipment or operation stop whenever an abnormal or defective condition arises. The reasons behind Jidoka are as follows; a) To prevent making too much: If the equipment is made to stop when the required amount is produced, making too much cannot arise. Consequently, the just in time production can be accurately carried out. b) Control of abnormality becomes easy: It will only be necessary to make improvements by directing attention to the stopped equipment and the worker who did the stopping.

Samir Vaz

2012104

Section B

Full utilization of workers capabilities Toyota has built up a system of respect for humans by putting emphasis on the following points; a) Elimination of waste moments by workers: The movements of material handling operations between the equipment and between the processes due to large inventory are all waste moments. b) Consideration for workers safety: Implementing systems and measures to ensure workers safety thereby increasing productivity c) Self-display of workers abilities: Encouraging workers to actively participate in running and improving their workshops and be able to fully display their capabilities. Kanban System Kanban is a production control system for just-in-time production and making full use of workers capabilities in the Kanban system. Below are some of the reasons why Kanban System has been successful; a) Reduced information processing costs: Huge costs involved to setup and maintain a system that provided production schedules to all processors and suppliers as well s its alterations and adjustments by real time control. b) Rapid and precise acquisition of facts: Using Kanban managers can get various facts without the need of a computer. c) Limiting surplus capacity of preceding shops: Preceding processes become required to have surplus capacity, and it is more liable to have waste of overproducing.