Fundamental of TPS

Basic principle of TPS

Part 3

Basic philosophy is “Customer First”
Two pillars
Goal・JIT (Just-In-Time)・Jidoka (Autonomation, Autonomy)

Create teams and members who continue Kaizen activities
always seeking for “ To Be ” , ideal system

Ideal system:

Construct continuous flow business process

Objective of JIT: Shorter lead-time by eliminating waste (Muda)
TPS :First step to apply TPS

Symphonyorchestramodel（１）Awareness of TPS（２）５S（３）Visibility (Mieruka)
Source: Sato Sanpei

Harmonizedautonomous
De-centralizedsystemFundamental of TPS

To construct flow process
Improving TPS is an activity that creates a flowfrom materials to parts, to finished products
When we improve flow, we;Increase effectivenessUncover “hidden” capacity
Generate more revenue

Reduce costsImprove customer satisfactionImprove employee morale

1. Simplification of flow process
Never outsource the intermediate process; In-house using cheap equipment

2. Merging process eliminating branch （From turbulence to rectification）
HFIS

Large inventory of WIP

FH

Simplified flow

FIFOSI

Small inventory of WIP

3.One-piece-at-a-time production in a continuous line
Carry a certain amount of produced goods
to the next process
WIP WIPA

Material A A

B

WIP
B

WIP
B

C Product

Carry a produces good one by one
to the next process
MaterialA⇒B⇒C

Product

Fundamental of TPS

Example of kaizen for a continuous line
One-piece-at-a-time production in a continuous line
Carry a certain amount of produced goods
to the next process
AB
C
Product
10min
1010
A B WIPWIP
B C WIP C
WIP A WIPWIP
20pcs
20 20
20 20 20

Material

NCTR / pc.
=30/630=0.048Lead time:630min

Carry a produces good one by one
to the next process
MaterialA⇒B⇒C
10min10 10ProductNCTR/pc.=30/30

Lead time:30min

10Min. 10Min. 10Min.

NCTR= Net Conversion Time Ratio

Fundamental of TPS

Business advantage is to construct faster flow
Main objective of TPS is to construct flow process.
Source: Dr. Kawada

MATERIAL flowdays

Monetary Flow ： SCCC（Supply Chain Cash Conversion Cycle)）= Inventory turnover days + Receivable turnover days + Payable turnover days

inventory Turnover days (CGS basis)= Average Inventory/ＣＧＳ×365

70.0

180.0

65.0
60.0MONETARY flow

days

170.0

Honda

60 days

160.0

55.0

150.0

Honda

150 days

50.0

Toyota140.0

Toyota45.0

Nissan130.0

Nissan

40.0

Honda

120.0

Honda

Maｚda

110.0

Toyota

35.0
30.0

100.0

30 days

25.0

90.0

20.0

80.0

2008 2009 2010 2011 2012 2013 2014 2015

ToyotaNissan
Honda
Maｚda

2008
32.4
43.6
52.8
41.9

2009
34.3
45.3
63.0
45.3

2010
32.9
46.4
65.3
45.4

2011
31.1
45.5
54.1
39.9

2012
33.8
47.0
62.8
45.4

2013
33.8
51.7
58.6
50.9

Toyota100 days20082014
33.0
46.4
48.5
54.0

2015
35.2
48.650.0
57.1

SCCC
ToyotaNissan
Honda
Mazda

Mazda

2009

2010

2011

2012

2013

2014

2015

2008

2009

2010

2011

2012

2013

2014

2015

100.4
114.9
133.7
108.3

101.8
114.1
142.6
115.7

102.0
120.6
148.2
118.8

102.9
129.9
133.8
112.5

111.2
137.3
154.2
123.8

111.1
144.7
143.2
134.1

101.2
126.9
141.5
133.8

103.7
136.0
166.1
138.6

Fundamental of TPS

Waste (Muda) in TPS＜Seven wastes in TPS＞

Defining of waste- Operational elements increasing cost １）Overproduction- Work elements of no added value
Value added work（5~20%)

Incidental
Work

Movementof worker

Waste
No added value（more than50%）- Increase the value-added workby eliminating waste.
- The first is awareness : In almost
all business, the added value ofwork element is less than 20%.

２）Waiting３）Delivery４）Processing itself
５）Inventory６）Motion
７）Rework

Overproduction

DeliveryInventory

Monitoring

Waiting

Processing

Fundamental of TPS

5S is the first step to apply TPS- Good workplaces develop beginning with the 5S.
- Efficient Work -Visualization -Better services -Company image
1. Seiri （整理）– sort, sort out, Organize
Separate out all the things that are not necessaryand eliminate them or tidy them away.

First step is 2S
Seiri

2. Seiton （整頓）–straighten, stabilize, Make neat
Arrange the essential things in order so that they can bequickly and easily accessed and put away.

3. Seiso （清掃）– scrub, shine, Clean
Keep machines and working environment clean.

4. Seiketsu （清潔）– systematize, Standardize
Make cleaning and checking a routine practice;
maintain a pleasant environment

5. Shitsuke (躾）–sustain, self-discipline, Discipline
Standardize the previous four steps
and constantly improve them.

SeitonFundamental of TPS

Visibility is one of the most critical for TPS
Andon （行灯）

(Signal board)Fundamental of TPS

The basis of TPS is “Trust the worker”
1. Mutual Trust between Labor and Management
 Improved productivity brings prosperity to the company
and the employees
2. Strong Employee Motivation
2.1 Creative Ideas and Suggestion System- Valuing practical experience over theoretical knowledge
 Total number of suggestions submitted ; 2.65 Million
 Average per employee;
48 per employee
 Percentage of acceptance
96% acceptance Total prize money
2,100 Million Yen(’87 results)

2.2 QC Circle (Problem Solving Circle) Small groups in which workers discuss and assist each other Carry out Kaizen in quality, cost, safety and so forth 6,650 circle, 6persons/circle, 25,000 themes/years(’87 results)
As of 2001, Toyota had approximately 4,800 Circles

Concluding

Kaizen activities by teamwork
1. First step is Safety (KYT), 5S , Visualization,
2. Information sharing and Visibility-Organization Policy,-Actual Results (Sales, Production, Quality )- Standardization (No kaizen without standard)

3. Communication-Greeting -Meeting -Ho-Ren-So （報連相）

4. Workplace activation- Idea suggestion system -QCC - Multi-skilled worker

Weak organization

Strong organization
Matching
Vector

Concluding

Vitalization of the people & organization
When do you have a strong motivation for work?
Survey results of Japanese and U.S. automakers is almost the same.

1. Autonomy (自律)3. Achievement （達 成 )5. the work itself （仕事そのもの)
7. Recognition （評 価 )2. Responsibility （責 任)
4. Opportunity （機会)6. Advancement （向 上 )product
Customerorientation
TQM/TPS
KaizenTotal
Participation

ManagementTechnologySkill

TPS kaizen activities; Improving quality of process &Powerperformanceof work
Genki, Ethics
Mind, Proud
Enthusiasm

Sharing
critical minds
Communication

Enhancing
Buildingawarenessa senseof fellowship of improvement

Reference

Global factory benchmark
by TPS certificate Institution
 Long-term goal by TPS improvement activities
Goal=4 (3 years)
Ave.=1.6
 First, make one year activity plan to implement
 Review based on the result of annual activities
Evaluate the basic elements of Total TPS- Checking by factory evaluation sheet- Evaluate by score 1~5 on each(①~⑥) item

Check item
①Active worksite②Standard sheets③People④Product/part⑤Equipment⑥Quality

Contents＜Grade: 1~5＞
USA=1.0~3.0
Korea=1.0~3.0
China=1.0~2.0
Japan=1.0~4.5< Company A >①Active work
543
201

⑥Quality-5S,visualization,motivation-Develop Standard work sheets-Movement Keep standard work
-Storage space, logistics, stock-Maintenance, changeover, leveling-Quality into process⑤Equipment②Standardsheet③People④GoodsAverage=1.6
Goal=4

TMS&TPS Certificate Institution: http://tms-tps-certification.org/en/tps

Thank you
for your kind attention“Open the window and look outside.
It`s a big world waiting for you.”by Toyoda Sakichi （豊田佐吉）

If you have some questions,do not hesitate to contact me by e-mail.

Satoshi Kuroiwa (黒岩惠）
skuro@esd21.jp