Chapter Eight Notes - Chapter Eight Notes Toyota Production...

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Chapter Eight Notes Toyota Production System (TPS) - One of the most valued lean manufacturing systems in the world - 50 year project of employee "experiments" to gradually improve efficiency and quality and eliminate waste Based on four principles: 1) All work must be completely specified as to content, sequence, timing, and outcome. Detail is important. 2) Every customer-supplier connection must be direct, unambiguously specifying the people involved, the form and quantity of the services or goods to be provided, the way the requests are made by each customer, and the expected time in which the requests will be met. Customer-supplier relationships can be internal (employee-to-employee) or external (company-to-company). 3) The pathway for every service and product must be simple and direct. Services and goods don't flow to the next available person or machine, but to a specific person or machine. With this principle employees can determine whether a capacity problem exists at a particular workstation and then analyze ways to solve it. 4) Any improvement to the system must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible organizational level. In accordance with the scientific method, potential changes must be presented as a hypothesis about how the particular change will help improve the system. The hypothetical change is then tested under a variety of conditions while working with a supervisor. Employees learn the scientific method and become teachers of others. Improvements are made at the lowest level of the organization so that the employees actually doing the work are actively involved in making improvements. Supervisors/managers are simply coaches, not problem-solvers. Lean Systems : an approach for designing supply chains that involves operations systems that maximize the value added by each of a company's activities by removing waste and delays from them. The lean system encompasses the company's operations strategy, process design, quality management, constraint management, layout design, supply chain design, and technology and inventory management. It can be used by both service (with front-office, hybrid-office, or back-office designs) and manufacturing firms. Lean systems affect a firm's internal linkages between its core and supporting processes and its external linkages with its customers and suppliers. The design of supply chains using this approach is important to various departments and functional areas across the organization: - Marketing relies on the systems to deliver high-quality services or products on time and at a reasonable price
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- HR must put in place the right incentive systems that reward teamwork; must recruit, train, and evaluate the employees needed to create the flexible workforce that is needed to operate a lean system - Operations must maintain close ties with suppliers, design the lean system and it in the production of goods and services - Accounting must adjust its billing and cost accounting practices to provide the
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