The Success of Production System - Term Paper Example

«TOYOTA PRODUCTION SYSTEM» The Toyota Production System is a combination of management philosophy and technical skills which forms the underlying concept of integrated socio technical production system at Toyota. This Production System at Toyota handles the manufacturing and logistic operations of the company which includes frequent interactions with both the suppliers as well as customers. It is because of such state of the art and sophisticated systems that has made Toyota a world leader in automobile industry. The TPS is described by the company as “A production system that is steeped in philosophy of the complete elimination of all waste and that imbues all aspects of production with this philosophy in pursuit of the most efficient production system” (Toyota, 2008). It is also referred to the “Just – in – Time” system which is a well - known concept studied and practiced world wide. The concept of TPS was based on several years of persistent development with the aim of providing vehicles as ordered by its customers in the fastest and most proficient manner so as to ensure its prompt delivery. The two basic concepts on which the TPS is based includes “jidoka” or automation with a human touch. It ensures that in case a problem is encountered during production the equipment / machines are automated to pause promptly thus, averting any defective products being produced thereby. The second most significant concept on which the production system is based is the Just – in – Time which has the ability to manufacture machines with great speed and accuracy and at the same time maintaining the desired level of quality in the process, which appeals to the customer and ensures their total satisfaction. The basic underlying aim of the very concept of TPS is to eliminate over burden, inconsistency and waste to the maximum possible extent. The several different kinds of inconsistencies including waste recognized by Toyota includes over production, motion of the machine, pause time required by the machine, conveyance, processing, raw material / inventory, as well as scrap. TPS helps in eliminating these wastes and help in gaining accuracy to provide the best and most efficient product with timely delivery to the best satisfaction of the customers. The concept of TPS can well be understood through a more insightful analysis of the two basic underlying concepts on which it is ultimately based i.e., the Just – in – Time and jidoka. Just – in – Time is concerned with improving the productivity while jidoka on the other hand is more concerned with recognizing and highlighting the actual problem situations. According to jidoka which lays greater emphasis on identifying the problems associated while production, it also seeks to ensure retaining and enhancing the quality especially during the manufacturing stage. Thus when a malfunction occurs or a defective part is encountered the machine that is concerned with such a function is designed to stop automatically which is a cue for the operators to pause work and detect and resolve the problem before proceeding. In order to ensure smooth functioning of the Just – in – Time system, the inventory that is supplied and made is required to be of a specified quality which is in turn achieved by jidoka. Thus the two systems work simultaneously for a flawless production system to function. When the normal processing is completed the machine stops automatically and it stops in case a problem arises during production without the need for human supervision or intervention, and thereby prevents defective pieces being produced due to such problem. This further ensures that only those products that successfully pass the required standards criteria are produced eliminating production of wastes or defective products. One of the advantages of this system is that it saves a considerable amount of time since as the machine detects a problem it is made to automatically pause work. Besides, the machine displays the problem on the problem display board which is accessible to all the workers. The following diagram shows an andon problem display board used in the company. (Source: Toyota.co.jp) This gives the workers the opportunity to diagnose the problem as well as find out the causes of its occurrence. They may shift their work to other machines or after examining the cause of the problem, may take necessary steps to prevent such a malfunction in the future. This leaves the operators with a choice of operating through several machines thereby further leading to increased productivity, continuous improvement and enhanced processing capacity. In case of just – in – time system the basic aim is to produce only ‘what is needed’, ‘when it is needed’, and ‘in the amount it is needed’. This system is wholly focused on enhancing quality of products by completely eliminating waste and defective products, inconsistencies, as well as unreasonable demands on the production line. The system mainly aims to deliver a good quality product which is in accordance with the customer’s satisfaction and that too in the shortest possible time. This is in turn, expected to be achieved through certain guidelines which include forwarding the instruction of vehicle order received to the beginning of the vehicle production line as soon as possible, as shown in the diagram below. After the required information has been successfully passed the next step is to stock the assembly line with various sizes of parts so that the system may adjust to produce any kind of vehicle which is ordered in the assembly line. Following which the assembly line is required to replace the parts used from the parts producing process i.e., the preceding process. This process is in turn is again, stocked up with various sizes of parts in small numbers, and is required to produce only the number of parts that were retrieved by an operator in the next process. Advantages of Toyota Production System A perfect and efficient production system will ensure desired results by creating a process flow that guarantees continuous flow of information to help bring and identify problems to the forefront. It helps in establishing a foundation for a culture / work ethic that provides solution to identify problems and prevent their occurrence in the future to avoid wastage of time and parts as well as preventing production of defective products. The system uses visual control such as the andon problem display board that catches the attention of the workers successfully which in turn helps in detecting and repairing the problems in a most efficient and effective as well as timely manner. The system also enhances the overall value of the organization by establishing a wide network of partners and a wide customer database. It leads to building an efficient leadership that concerned with achieving maximum productivity at lowest possible cost and have policies that are consistent with the company’s philosophies. Such an efficient and flawless system of production also ensures a harmonious working environment and creates and harbors exceptional abilities and talent within the workforce thereby further leading to the development and growth of the company. The consistent problem solving that is enabled through the production system at the company creates opportunities that encourage organizational learning and growth. The acts such as detection of problems and identifying the causes of the problem, on the part of the workers lead to development and nurturing of exceptional problem solving skills within the company’s workforce. It also sharpens the decision making skills since the workers might often have to consider various probable alternatives prior to choosing the one best solution for the ongoing problem. Thus in spite of no formal training, the on the job experience of the workers could enhance overall organizational skills. Apart from such numerous qualitative benefits that accrue from the production system employed at Toyota, the system also leads to various quantitative benefits as well. Some of such quantitative benefits include, significant reduction in cost and lead time. Since the problems are detected well in time, the machines are repaired promptly to avoid production of any wastage or defective products. This saves the inventory cost and helps in reducing the overall cost of production. The ease with which the system allows for easy detection of problems, saves considerable time and efforts on the part of the workers and hence increases their productivity which is translated into increased revenues and hence profits for the company. Limitations of TPS Over dependence on machines might kill innovativeness and ability to think independently. Problem solving skills of the workers which are developed during working with machines might be totally eliminated since the machine does most of the work. However, the benefits far exceed the limitations of the system, both quantitatively as well as qualitatively which has led to the stupendous success of Toyota and the ability to retain its world leadership which is achieved through flawless automated systems and co-ordination of man machine combination. References Toyota, (2008). Toyota Production System, viewed: December 4, 2008, from: Read More