Toyota’s JIT Revolution
Group No : 3
Samir Diwakarrao Kitukale
Mouna Kumar
Pankaj Sharma
Points to be Discussed
History of Toyota
Production System in Toyota
Just In Time – Analysis
Three major Sections
Future of JIT
History
1897: Sakichi Toyoda diversified into handloom
1926: Toyoda Automatic Loom Works(TALW)
1933: Explored into automobile industry .
1935: Development of passenger car prototype.
1937: TMC was established
1947: First small car (SA Model) was launched.
1950: TMS company Ltd was formed
Contd…
1953: Started exporting the automobiles
1957: Entered US market through subsidiary
1959: First overseas manufacturing at Brazil
1970: Became the Third largest manufacturer
1974: World’s largest selling car – Corolla
1984: JV with GM called NUMMI.
Toyota Production System
Aimed at producing world class, quality automobiles
at competitive prices.
TPS stood as a benchmark in manufacturing and
product development.
Based on two main principles:
JIT
Jidoka
Just In Time
It is a new dimension for manufacturing.
Evolved in early 1970s in Japan
Kanban & Heijunka are the essential components of
JIT
Increase production volume by optimizing inventory
Has direct impact on time, inventory, scrap
Ideal lot size is 1
JIT VS Western
CHARACTERISTICS
Systems
JIT SYSTEM NON JIT SYSTEMS
Labor Division Flexible Work teams Rigid work segments
Setting Standards Standardization of methods Standardization of methods
Inventories Low Inventories High Inventories
Discipline Self Discipline of workers Discipline imposed through
strict hierarchical
Production runs Small batch sizes organization
Long Runs
Planning Flow Last stage first First stage last
Set up times Frequent Infrequent
Operating Control Decentralized Centralized
Interdependence Increased Lowered
Advantages of JIT
Price flexibility by managing inventory.
Reduction in product variation.
Zero waste.
High quality product.
Low cost for consumer.
Customer satisfaction.
Shortened lead time.
Disadvantages of JIT
Based on the key assumption that the source and the
channel of supply are dependable all the time.
Did not take the possibility of labor strike at
automotive plant.
Cost indulged in set up and training of employees is
high.
Risk of inventory shortage is high.
Production planning is entirely dependant on
forecasting of demand.
Equipment failure and employee absenteeism.
KANBAN
Concept brought from retail industry to automobile
A piece of paper used to convey sophisticated
information
Simple part movement system dependant on card
from one work station to another
Delivers the component at required time
It’s a pull system
Kanban System
Conveyance Production Conveyance
Empty Kanban Kanban Returned Kanban
Containers Containers
C P
C C C P P P C
Output Buffer( full
Input Buffer( full Transport to
containers awaiting
containers from previous next stage
transport)
stage)
Kanban Vs. Western Philosophy
Factors Toyota’s Kanban Western philosophy
philosophy
Inventory A liability An asset
Lot size Immediate needs only Formula (EOQ, lot per
lot)
Set ups Make them insignificant Low priority
Queues Eliminate queues Necessary investment
Vendors Co- worker, part of Multiple sources
organization
Quality Zero defect Tolerate some scrap
Equipment maintenance Constant and effective As required break down
Lead times Keep them short Longer
workers Management by Management by edict
consensus
Rules For Effective Kanban
Later process went to the earlier to pick product.
Produce only the amount picked by later process.
Should not pick or produce with out Kanban.
100% defect free parts were required.
Reduce number of Kanban.
Advantage Of Kanban
Simple understandable process.
Provide quick and precise information.
Low cost for information transfer.
Quick response to change.
Limit over capacity in process.
Minimize waste.
Delegate responsibility to worker.
Disadvantage of Kanban
Highly inter dependable process.
Wrong Kanban may cause loss of production.
More depend on worker.
Involve high training cost.
Heijunka
Second important concept of JIT.
Help to accomplishment creating consistent
production volume.
Average the highest and lowest variations of the order.
Variation removed to ensure right quantity of part
produce with minimum work force.
Taking care of item produce in large volume and also
type of item produce.
Jidoka
Automatic or manual defect detection system.
Stop system when defect occurs.
improvement is done by the worker who stop the
system and necessary action is taken.
Allow the worker to stop the assembling line.
Encourage thinking process of the worker.
Future of JIT
As JIT is supposed to be in contact with production or
assembly line but it has its applicability in all the
departments for cost reduction.
Its successful only in Japan
Equipment failure and employee absenteeism
Unexpected events such as strikes and natural
calamities were not taken into account
Suppliers’ geographical locations can be of matter in
various sectors. e.g. Pharmaceuticals
Glossary
TALW: Toyoda Automatic Loom Work.
TMC: Toyota Motor Corporation.
TMS: Toyota Motor Sales.
NUMMI: New United Motor Manufacturing Inc.
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Thank you
