Toyota's JIT Revolution: A Legendary Production System

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Humaira Mehboob 07Naila Farooq 14Aneela Yousaf 25Sidra Mumtaz 02

Just In Time:The JIT production was defined as 'producing only necessary units in a

necessary quantity at a necessary time resulting in decreased excess inventories and excess workforce, thereby increasing productivity. JIT was based on the principle of producing only what is needed and nothing more than needed.JIT focuses on continuous improvement.

TOYOTA MOTOR CORPORATION TOYOTA MOTORS is a Japanese automobile manufacturer headquartered

in Toyota, Aichi, Japan.November 2014, is the twelfth-largest company in the world by revenue. Toyota was the largest automobile manufacturer in 2012 (by production) Toyota is the world's first automobile manufacturer to produce more than

10 million vehicles per year . As of July 2014, Toyota was the largest listed company in Japan

by market capitalization and by revenue.

Background of Toyota

Sakichi Toyoda(1867-1930) Toyota Automatic Loom Work

Kiichiro Toyoda (1894- 1952) Used chain conveyor into the Assembly line Taiichi Ohno (1970) Implemented JIT in Toyota’s manufacturing plants to avoiding waste, reducing inventories & increasing production efficiency to compete .

A Legendary Production System

Toyota production system also known as “TOYOTA WAY” was developed & promoted by Toyota Motor Corporation.

The main purpose of TPS is to eliminate waste through continuous improvement activities.

Profit through cost reduction

Elimination of over production

Quality control , Quality assurance.

Toyota Production SystemCost Reduction Increase of capital

turnover ratio

Elimination of Waste

Productionmethods

Information system

Control byteamwork

Automatic stop device

Kanban

Continuous flow of Production

Just-in time production Jidoka(automation)

Heijunka

Features of Just-In-Time Production System

What it is: • Management philosophy• 'Pull' System through the plant

What it does: • Attacks waste (time, inventory, scrap)• Exposes problems and bottlenecks• Achieves streamlined production

What it requires: • Employee participation• Industrial engineering/basics• Continuing improvement• Total quality control• Small lot sizes

What it assumes: • Stable environment

Principles or Components of JIT:

Kanban: A simple parts-movement system that depended on cards and boxes/containers to take

parts from one workstation to another on a production line.

o Conveyance Kanban card/ withdrawal card:

The kanban card used to move parts from one place to another, known as the Conveyance Kanban card.

o Production Kanban card:

The second card to authorize the production of parts, known as the production kanban card. A standard size container was used to store parts and each card was treated like a coupon.

Heijunka:

Another important component of JIT was Heijunka (finding and keeping average production volumes).

JIT's principle of building only the required number of items helped keep the production costs low.

Heijunka helped in the accomplishment of this principle by creating a consistent production volume.

Heijunka averaged the highest and lowest variations of the orders. The variations were then removed from the production schedule. This ensured that the right quantity of parts was produced with minimum workforce.

STRAT EGIES FOR THE IMPLEMENTATION OF JIT

 

Customer satisfaction

Employee involvement

Continues improvement

Pull system

CHECK PLAN

ACT DO

Supply chain management

Adward deming wheel

PROBLEMS AND THE ACTIONS TAKEN

WHY TOYOTA INTRODUCED JUST IN TIME PRODUCTION PHILOSOPHY?

In the early 1930s, the technology used by American automobile companies was superior to that used by Japanese companies.

After thorough study and research Kiichiro sort out the root causes to the

failure of not competing in the global market. He then reorganized the production system in Toyota in a unique way.

This reorganization eventually led to the development of JIT concept

GHRAPHICAL REPRESENTATION OF CAUSES OF PRODUCTION FAILURE 

Production failure

Production processSupplier

Workers Inventory Management

Delayed delivery

Delivery of wrong items Improper delivery of material

Weak business relations with supplier

inelastic production systemDifficult to identify defects during production

Increased dead stock large production lots Equipment Breakdown

Risen cost

Lack of coordination among workers No employee empowerment Lack of training Absenteeism

Increased boredom during work

Increased inventory storage cost Increased work in process

Increased unused accumulated inventory

Advantages of JIT Production flexibility

Quick response to customers DemandHigh quality products at low prices for customers Customer satisfactionLow inventory investmentEarly detection of quality problems Small lot sizesLow cost of productionShortened lead times Employee empowermentIncreased supplier relations.

Disadvantages of JIT:

JIT involved high set up costs

Special training and reorganization of policies and procedures in the company were necessary to implement JIT

The supplier relations of the company also needed to be improved to ensure timely delivery. In the absence of good supplier relations, JIT increased the risk of inventory shortage.

Change in Organizational culture.

CONCLUSION

The JIT system was aimed at avoiding waste, reducing inventories and increasing production efficiency.

JIT principles is respect for people or maintaining relationship at all levels, be it employees, customers, suppliers or management.

Success of JIT depends on identification of what the customer needs and fulfilling the request in the best possible manner.