Toyota Production System - Essay Example

Toyota Production System is one of the Most Efficient Manufacturing Systems in the World. Describe the Various Elements of Toyota Production System. What was Ohno’s Contribution to the Development and Implementation of the System? Table of Contents Table of Contents 2 Introduction 4 Literature Review 5 Discussion and Critique 6 Conclusion 8 References 9 Bibliography 10 Introduction Since the last few decades, Toyota Manufacturing Corporation is proved to be one of the best quality producers. Even Toyota’s rivals also acknowledge that the production system of Toyota, which is commonly known as TPS, is superior. This concept of TPS has been implemented by Taiichi Ohno, the production chief of Toyota in the 1950s to 1960s. According to the officials of General Motors, TPS is considered to be the benchmark in the automobile industry for manufacturing and product development. Even companies like Ford and BMW also acknowledge the fact quite often. TPS is basically focused to remove the deficiencies of the production process ensuring proper utilization of the available resources. The objective behind this study is to generate a proper idea of various operational tools as well as to identify the best used approaches. This study also provides an opportunity to acquire knowledge regarding the TPS and its application along with the outcome of such applications. Apart from it, the research paper also enables us to get a proper idea of the company profile of Toyota and their production chief Taiichi Ohno. It will also provide a scope of critically examine the quality factors for an automobile industry. Literature Review With a stable manufacturing systems design, Toyota is able to reduce its cost through the elimination of waste and these features are reflected in the two main pillars of the company. Those are Jidoka and Just-in-Time along with Kaizen. JIT is basically engaged with the practice of framing machines and processes to provide perfect quality product through rapid solution of the problems. Kaizen ensures the standardized, ergonomic and safe working condition in the production house at all time. The theme of TPS is controlling cost through waste removal process. JIT process is concerned with the right quantity, mix and time while Jidoka deals with the perfect quality. The bases of all these things are standardized work, leveled and balanced production and Kaizen. Spear and Brown have developed a concept or perception regarding the Toyota Production System that identifies its success. They found that the rigidly specified factory operation of Toyota is inherently adoptable and flexible. According to Spear and Brown, TPS is set up upon the foundation of various scientific methods namely observation, formulation, hypothesis and prediction of results. According to them, the four rules are responsible behind the success of the workings of TPS and thus their workings can be captured. The first rule suggests that all works are highly specified as per the timings, sequences, outcomes and contents. Second rule relates to the connection in between customer and supplier. They suggest that there must be a yes – or – no - way to receive responses and send requests. The third rule states that the pathway should be simple and direct for every product and services. The last one says that the every improvement must be followed by the scientific method under guidance of a teacher even at the lowest level of the company (Won & Et. Al., n.d.). Discussion and Critique Toyota Production System (TPS) consists of two aspects. The first one is ‘Hard’ which refers to the technical part and another one is ‘Soft ’which indicates to the people part. Just – In - Time, Jidoka and Kanban all such techniques come under the hard part where “respect for humans” is in the soft part. Ohno had greater respect and value for the people and that is why it is reflected in the production process also. Now individual approaches or the elements can be discussed as follows. JIT The main aim of JIT is to eliminate waste. As per the Japanese view, production beyond the requirement or the demand is considered as waste. Toyota adopted JIT in 1970. It has certain benefits like that of high quality with low cost, price flexibility, customer satisfaction and quick responses. The concept of JIT is based on reverse reasoning. The process of production starts with the demand of the customer. It indicates that the workflow of the factory is that of demand pull. Jidoka Jidoka refers that if any problem occurs in the process or in the production system then the particular machine or equipment will be stop from further processing immediately. It helps to reduce the number of defective products. This process is the combination of the automation and the human intelligence. It follows “Quality built-in to the process”. It means that the operator can bring changes in the process with in a certain limit. If the limit has been crossed and the variation has been detected, then the process will stop automatically and maintain the quality (Strategos, n.d.). Kanban Kanban is not a separate element but a part of the JIT. ‘Kan’ means card and ‘Ban’ means signal. There are mainly two kanban has been used by Toyota i.e. Conveyance Kanban Card and Production Kanban Card. The first one helps to move parts from different locations and the later one authorizes the production system. Three kind of information can be exchanged through this process. They are the pickup information, transfer information and production information. Pick up information guides the previous stage to get hold of succeeding stages. The transfer information indicates when the parts can be produced at the later stage. Production information provides the various data regarding the product mix and operational matter to the workers (Bright Hub, 2010). Contribution of Taiichi Ohno The concept of TPS has been discovered by Taiichii Ohno. But the entire credit does not go to Ohno as Sakichi, Kiichiro and Eiji are also involved in the developing process. It is acknowledged by all that a huge effort is given by Ohno to implement TPS. Even it was he who was responsible for the proper training of the engineers of the production system. He was inspired by the working procedure of US supermarkets. He identified the importance of inventory management system in those super markets. Ohno rightly understood that the inventory should be added only when it is needed not before that. He implemented the same concept in JIT. Conclusion Toyota has a rich production system which is ornamented with various equipments and techniques. It has been the quality leader in the automobile industry across the world. The mastermind, Taiichi Ohno had been the key success factor for Toyota. Regarding TPS, it involved a flexible batch process along with cross trained workers and multi purpose equipments. This process gets success because it focused on eliminating wastage, increasing productivity and lowering capital expenses through Kaizen which ultimately brings the overall improvements. References Bright Hub, 2010. Toyota and JIT Manufacturing. [Online] Available at: http://www.brighthub.com/office/project-management/articles/72086.aspx?p=2 [Accessed June 09, 2010]. Stratogos, No Date. A Pillar of the Toyota Production System, No Date. Jidoka and Automation. [Online] Available at: http://www.strategosinc.com/jidoka.htm [Accessed June 09, 2010]. Won, J. & Et. Al., No Date. Relationship to TPS. Rationalizing the Design of the Toyota Production System: A Comparison of Two Approaches. [Online] Available at: http://www.sysdesign.org/pdf/paper15.pdf [Accessed June 09, 2010]. Bibliography Becker, H. Phänomen Toyota: Erfolgsfaktor Ethik. Springer, 2006. Dennis, P. & Shook, J. Lean Production Simplified: A Plain Language Guide to the Worlds Most Powerful Production System. Productivity Press, 2007. Hirano.H & Et.Al. JIT Factory Revolution: A Pictorial Guide to Factory Design of the Future. Productivity Press, 1988. Liker. J. K. The Toyota Way: 14 Management Principles from the worlds Greatest Manufacturer. McGraw-Hill Professional, 2004. Liker. J. & Et. Al. Toyota Culture: The Heart and Soul of the Toyota Way. McGraw Hill Professional, 2007. Magee, D. How Toyota Became No 1: Leadership Lessons from the Worlds Greatest Car Company. Portfolio, 2007. Regani, S. Taiichi Ohno and The Toyota Production System. ICMR Center for Management Research. Read More