GURUNANAK COLLEGE OF ARTS, SCIENCE AND COMMERCE.

Group no ‘6’• Navneet Singh {06}

• Ajay Jaiswal {17}

• Santosh Singh {32}

• Aman Singh {36}

• Nitesh Singh {37}

• Surendra Singh {40}

• Vikramraj Singh

Toyota Motor Corporation

PRODUCTION AND

MATERIAL MANAGEMENT.

SYBMS

PRESENTED TO

KAMALDEEP

ANAND

SIR

H I S T O R Y• The company was founded by Kiichiro Toyoda in 1937 as a spinoff from

his father’s company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries , it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors, along with several "non-automotive" companies. TMC is part of the Toyota Group, one of the largest conglomerates in the world.

• It is abbreviated TMC, is a multinational automaker headquartered in Toyota, Aichi, Japan. In 2010, Toyota employed 300,734 people worldwide, and was the second largest automobile manufacturer in 2010 by production. Toyota is the ninth largest company in the world by revenue . In July 2012 the company reported that it had manufactured its 200 millionth vehicle.

TOYOTA BACKGROUND• The company was founded in 1937 by Kiichiro Toyoda

as a spin-off from his father's company Toyota Industries to create automobiles.

• The Toyota Motor Corporation was founded or established on 28 August 1937 when Toyoda Automatic Loom created a new division devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda.

• The world headquarters of Toyota are located in its home country in Toyota, Aichi,

• Toyota is considered luckier than Toyoda in Japan, where eight is regarded as a lucky number, and eight is the number of strokes it takes to write Toyota in katakana

APPROACH• To solve the problem of waste, Lean Manufacturing

has several 'tools' at its disposal. These include continuous process improvement (kaizen), the "5 Whys" and mistake-proofing. In this way it can be seen as taking a very similar approach to other improvement methodologies

• There is a second approach to Lean Manufacturing which is promoted by Toyota in which the focus is upon implementing the 'flow' or smoothness of work through the system and not upon 'waste reduction' per se. Techniques to improve flow include production leveling, "pull" production (by means of kanban) and the Heijunka box.

Total Production System• The practical expression of Toyota's people

and customer-oriented philosophy is known as the Toyota Production System (TPS). This is not a rigid company-imposed procedure but a set of principles that have been proven in day-to-day practice over many years. Many of these ideas have been adopted and imitated all over the world.

GOALS OF TPS• Main goals of TPS : • 1 - To design out overburden (Muri)• 2 - Smooth Production (Mura)• 3 - Eliminate Waste• This production control system has been

established based on many years of continuous improvements, with the objective of "making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible."

TPS has three desired outcomes:

• To provide the customer with the highest quality vehicles, at lowest possible cost, in a timely manner with the shortest possible lead times.

• To provide members with work satisfaction, job security and fair treatment.

• It gives the company flexibility to respond to the market, achieve profit through cost reduction activities and long-term prosperity.

Plant Layout

Total Productive Maintenance

A main pillar of the Toyota Production System (TPS) is Total Productive Maintenance (TPM).

The essential strategy is to eliminate the potential of a problem. That is, eliminate a

problem before it occurs.

Total Productive Maintenance

Basic Elements:1. Maximizes equipment effectiveness.2. Establishes a through system of preventative

maintenance (PM) for the equipment`s entire life span.3. Implemented by various departments (engineering,

operations, maintenance). 4. Involves every single employee- from top management to

workers on the floor. 5. Based on the promotion of productive maintenance

through workforce motivation management via autonomous small group activities.

The Goal of Total Productive Maintenance

• To achieve overall equipment effectiveness, TPM works to eliminate the six big losses that are formidable obstacles to equipment effectiveness:

Down Time:

1. Equipment failure - from breakdowns

2. Setup and adjustment - from exchange of die in injection molding machines, etc.

Speed losses:

3. Idling and minor stoppages - due to the abnormal operation of sensors, blockage of work, etc.

4. Reduced speed - due to discrepancies between designed and actual speed of equipment.

Defects:

5. Process defects - due to scraps and quality defects to be repaired.

6. Reduced yield - from machine start-up to production stability.

JUST IN TIME• In short, the just-in-time inventory system is all about

having “the right material, at the right time, at the right place, and in the exact amount” but its implications are broad for the implementors.

• It is perhaps not widely known that the 'just in time' approach to production that has now gained almost universal acceptance in world manufacturing was actually pioneered by Toyota. In fact, a Toyota engineer coined the term itself.

• Essentially, 'just in time' manufacturing consists of allowing the entire production process to be regulated by the natural laws of supply and demand.

• Customer demand stimulates production of a vehicle. In turn the production of the vehicle stimulates production and delivery of the necessary parts and so on.

• The result is that the right parts and materials are manufactured and provided in the exact amount needed - and when and where they are needed.

• There are 7 waste.

The Seven waste• Overproduction: Producing more than the demand for

customers resulting in unnecessary inventory, handling, paperwork, and warehouse space.

• Waiting Time: Operators and machines waiting for parts or work to arrive from suppliers or other operations.

• Transportation: Double or triple movement of materials due to poor layouts, lack of coordination and workplace organization.

• Processing: Poor design or inadequate maintenance or processes requiring additional labour or machine time.

• Inventory: Excess inventory due to large lot sizes, obsolete items, poor forecasts or improper production planning.

• Motion: Wasted movements of people or extra walking to get materials.

• Defects: Use of materials, labour and capacity for production of defects, sorting our bad parts or warranty costs with customers.

Inventory Control Techniques

• Just in Time (JIT) Inventory Control is a management strategy that originated in Post World War II Japan and met with remarkable success. JIT aims to eliminate waste and cut costs through inventory reduction, continuous improvement of product quality, and process efficiency.

• Just In Time is a management strategy based on planned elimination of all waste and continuous improvement of productivity. Just in Time (JIT) Inventory Control aims at elimination of wastes related to stocking and usage of raw materials and finished inventory.

The Origin Of Kanban• In the 1950s, Ohno visited Detroit to learn

about auto making from the U.S. manufacturers.

• He was not impressed.

• He visited a supermarket, which they did not have in Japan, and observed the way they restocked the shelves.

• He used that method as the basis for Kanban.

Kanban• Kanban literally meaning “signboard" or “billboard," is a

concept related to lean and just in time (JIT) production. According to its creator, Taiichi Ohno , Kanban is one means through which JIT is achieved.

• Kanban is not an inventory control system; it is a scheduling system that helps determine what to produce, when to produce it, and how much to produce.

• The need to maintain a high rate of improvement led Toyota to devise the Kanban system. Kanban became an effective tool to support the running of the production system as a whole. In addition, it proved to be an excellent way for promoting improvements because reducing the number of Kanban in circulation highlighted problem areas.

Kanban System• The Kanban system uses simple cards or

signals to strictly control production

• The basic idea is that no station is permitted to produce more than is immediately required by the succeeding station

• This simple idea prevents the buildup of inventory

• No computer is required!

• Limiting surplus capacity of preceding shops. Since an automotive industry consists of multistage processes, generally the demand for the item(the part) becomes progressively more erratic the further the process point.

The reasons to have employed Kanban System instead. of computerized

system are as follows:• Reduction of cost processing information. It calls for huge

cost to implement a system that provides production schedule to all the processes and suppliers as well as its alterations and adjustments by real time control.

• Rapid and precise acquisition of facts. Using Kanban itself, managers of workshops may perceive such continuously changing facts as production capacity, operating rate, and man power without help of a computer. Hence, data of schedules corresponding to the change are accurate, which urge workshops to found responsibility systems and to promote activities for spontaneous improvements.

Kaizen• Kaizen is the heart of the Toyota Production System. • Like all mass-production systems, the Toyota process

requires that all tasks, both human and mechanical, be very precisely defined and standardised to ensure maximum quality, eliminate waste and improve efficiency.

• Toyota Members have a responsibility not only to follow closely these standardised work guidelines but also to seek their continual improvement. This is simply common sense - since it is clear that inherent inefficiencies or problems in any procedure will always be most apparent to those closest to the process.

• TPS strives for the absolute elimination of waste, overburden and unevenness in all areas to allow members to work smoothly and efficiently. The foundations of TPS are built on standardization to ensure a safe method of operation and a consistent approach to quality. Toyota members seek to continually improve their standard processes and procedures in order to ensure maximum quality, improve efficiency and eliminate waste. This is known as kaizen and is applied to every sphere of the company's activities.

VALUE CHAIN ANALYSIS• The value chain is a systematic approach to

examining the development of competitive advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980).The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organization. The organization is split into 'primary activities' and 'support activities.

Toyota forecasts strong comeback

• Toyota is forecasting record sales for 2012 as it rebounds from two natural disasters that disrupted its supply chain and production and halved its profits this year.

• The Japanese carmaker said that it expected its worldwide sales of Toyota and Lexus premium-brand vehicles to rise 20 per cent to 8.48m next year, from 7.05m in 2011.

• This would surpass its previous sales record of 8.43m vehicles set in 2007.

• Toyota said that the forecast did not take into account incentives for lower-emission cars recently approved by Japan’s cabinet. The tally does not include vehicles made by its Daihatsu and Hino subsidiaries.

• Toyota said that it expected its global sales to increase a further 6 per cent in 2013 to 8.95m.

T H A N K

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