TPS Basics. What defines worth? Value: The key focus. Delivery. Worth Value= Cost. Functionality: what the product will do Performance Features

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1 TPS Basics Value: The key focus. Worth Value= Cost Eyes of customer Incurred during production Toyota s strategy is achieve total quality and maximum cost reduction through variation and waste elimination Maximizing Value-Added Activities 2 Functionality: what the product will do Performance Features Quality: how well the product meets intended functionality targets over its lifecycle Manufacturing conformance, durability, reliability, maintainability Aesthetics: how the product is perceived Includes perceived quality Delivery What defines worth? 3 1

2 The Importance of Cost Reduction Price Cost Profit Price = Cost + Profit Price - Cost = Profit 4 5S and Visual Management 5 Sort Straighten Shine Standardize Sustain The 5 S s 6 2

3 Establish Order: the first precondition for effective learning Make System visible! The Primary Objective of 5S 7 Enhances TM s ability to See the current situation clearly Become aware of abnormal occurrences Identify kaizen opportunities Awareness of rules Improved communication skills Sense of pride and accomplishment----- morale Sets example for appropriate work style Goal: Reduce TM Burden & Recognize Normal vs Abnormal 8 Before 5S: Examples 9 3

4 After 5S: Examples 10 Safety Quality Cost Productivity Human Resource Management Common Example: The Red Tag Event Misuse: Making 5S an end in itself Enables More Effective Management of Activities 11 Definition: The placement in plain view of all tools, parts, production activities, and indicators of production system performance, so the status of the system can be understood at a glance by everyone involved Visual Management 12 4

5 Make Information EXPLICIT Eliminate Surprises Visual Control Boards, Company/Performance metrics, overtime requirements Be Clear, Precise and Accurate Visually Convey status and structure clearly A picture is worth a thousand words Use color and shape to convey meaning Communication through Visual Management 13 Production system is designed and operated so that its structure and status are readily and consistently apparent A system exists for immediate response to abnormalities A system exists for root cause assessment and permanent countermeasures---- P/S Never hide waste make it visible Elements of Visual Control Systems 14 Shop Floor Controls 1. Layout 2. Work and Production Control 3. Quality 4. Inventory 5. Equipment Structure and status communication. Real time focus. Improvement Target Controls Long term focus. Make objectives, trends, and progress visible Two Levels of Visual Controls 15 5

6 Green Red Blue Yellow Blue Orange the Stroop effect is a demonstration of interference in the reaction time of a task. When the name of a color (e.g., "blue," "green," or "red") is printed in a color not denoted by the name (e.g., the word "red" printed in blue ink instead of red ink), naming the color of the word takes longer and is more prone to errors than Red Orange Green Blue Red Yellow when the color of the ink matches the name of the color. The Power of Color

7 Processing (operations): The steps occurring within the manufacturing process to change the form or shape of the product. Station or cell level Inspection: The detection elements within the process or operation. The Four Major Production Activities 19 Transportation: The movements of material. Inventory: Storage and Delay (two types): Starving and blocking time elements. Finished goods and in process inventory Process delay: Entire lot waits before processing Lot delay: While one is processed the others wait The Four Major Production Activities 20 Processing Inspection Transportation Inventory Which of these is value added? The Four Major Production Activities 21 7

8 At Toyota we search for the waste that usually escapes notice because it has become accepted as a natural part of everyday work Shingo, 1981 Do you work in a production system? Waste in Production 22 Toyota s Philosophy of the proper nature of work: Work should be consistent and even without waste and burden Mura Unevenness Muri Burden Muda Seven Wastes The Three M s - Mura, Muri, Muda 23 Fluctuation in cycle times: to complete a task (variability, intermittent elements) Cycle time of a curing process requires 2-shift operation while rest of line operates only 1 shift Work content varies by model in mixed model assembly Mura unevenness 24 8

9 Work is released to the floor randomly: without smoothing and leveling Disruptions of operations: setups and breakdowns Fan structures in product flow Parts transfers: performed on an irregular cycle Mura unevenness 25 WIP necessary to buffer out variability Excess capacity necessary to buffer out variability More Machines Increased Labor (e.g., work content variation forces work design for highestwork-content model) Consequences of Mura 26 Loss of Control Fluctuation is a symptom of lack of control Conformance to pace monitoring not possible WIP / decoupling obscures problem Consequences of Mura 27 9

10 Physical Fatigue issues, e.g., excessive lifting Ergonomic issues Excessive overtime Muri Burden 28 Mental Unnatural work sequences Must think to do it right. Delays and lapses common Uncertainty regarding correct procedures to apply Reliance on human diligence to attain quality results Stress on performance exceeds healthy levels Lack of mental engagement in work Utility of job rotation Muri Burden 29 Waiting Overproduction* Rework Motion Processing too much Inventory Transportation Intellect * Leads to all the rest AND it looks like productivity! MUDA: Taiichi Ohno s Seven Wastes 30 10

11 Value added vs non-value added Work What The Customer Valueadded Work Waste Not Needed Is Willing To Pay For Work At All To Do The Work Non-value Added Work Worker Movements No Added Value But Must Be Done Under Current Conditions 31 Work on later Check Current Conditions *Muda or Value-add? VA Muda No Eliminate now? Yes Act (Standardize) Stability Cycle: Check-Act Develop Alternatives 32 Check Act is the first step towards achieving a stable / standard condition. ID and eliminate special causes of variation and wastes using concepts of 5S, VM, STW and P/S to reduce variability and uncertainty 33 11

12 Cycle Time = average interval between work exiting a process the actual work time required to do a task or a series of tasks Takt Time = the amount of time the customer allows you to do a task or series of tasks scheduled work time divided by customer demand Limiting Overproduction: Takt Time vs. Cycle Time 34 Waste elimination, 5S and Visual Controls created as part of stabilization /standardization activities to enable TMs to immediately recognize abnormal conditions leads to effective problem solving TPS = Abnormality Management