At freeway speeds production is stopped in 1959

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Unformatted text preview: xports its First Car: The Forgettable “Crown” Under-powered and Unstable at Freeway speeds, Production is stopped in 1959 Toyota 20 TOYOTA PRODUCTION TOYOTA PRODUCTION SYSTEM In 1961, Toyota adopts “Systems Perspective” KAIZEN – Continuous Improvement Attitude that Minimizes Waste and Emphasizes High Quality Processes are analyzed to eliminate flaws rather Processes than fixing defective products than WASTE – Comprehensive View that includes Time, Resources and Materials Over-Production Time Spent Waiting Unnecessary Movements of Items 21 TOYOTA PRODUCTION TOYOTA PRODUCTION SYSTEM Waste is anything other than the Waste minimum amount of equipment, minimum materials, parts, space, and workers’ time which are absolutely essential to add value to the product. add - Shoichiro Toyoda President, Toyota Motor Co. 22 TOYOTA PRODUCTION TOYOTA PRODUCTION SYSTEM KANBAN - Downstream Demand drives Upstream Activity (“Pull Strategy”) Orders flow “Up” System, not from Top-down Only what is Needed is Ordered and Produced 23 TOYOTA PRODUCTION TOYOTA PRODUCTION SYSTEM ANDON – Work Stops when Problem Encountered Counter-measures taken to Cure Cause, Not re-work Defective Result. Authority delegated to Production Team Production and Problem-solving Functions combined. No Special Trouble-shooting Teams 24 TOYOTA PRODUCTION TOYOTA PRODUCTION SYSTEM Result of TPS is “Just-in-Time” Inventory System Comes from System’s Operation, Not a Requirement of It: Element of “Waste” Management Philosophy JIT relies on Supplier Relationships that Integrate Inventory Arrivals and Production Needs JIT depends on Mutual Commitment of Toyota Loyalty and Supplier Performance 25 TOYOTA PRODUCTION TOYOTA PRODUCTION SYSTEM Why Hasn’t TPS Been Universally Adopted? Equipment Transition Costs: Short Turnover Times (High Variety) combined with High Quality Different Management Paradigm: Empower Assembly Line Workers to Stop Production and Order Processcorrecting Counter-measures 26 World’s Second Largest Manufacturer of Automobiles About 240,000 Employees Produces a Vehicle about every Six Seconds Consistently Profitable GM: $1.1 Billion Quarter Loss 27 SUPPLY CHAIN SUPPLY CHAIN MANAGEMENT A supply chain is a system through which organizations deliver their supply products and services to their customers." (Poirier and Reiter, 1996) (Poirier "A supply chain is an integrated process wherein raw materials are "A manufactured into final products, then delivered to customers (via distribution, retail, or both)." (Benita, 1999) (Benita, 28 SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MANAGEMENT Supplier Supplier Supplier Supplier Supplier Supplier Supplier Customer Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Corporation Customer Supplier Supplier Customer Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supply Chain 29 SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MANAGEMENT 30...
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This document was uploaded on 02/19/2014 for the course ENTC 5010 at East Tennessee State University.

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