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OPERATIONS TECHNIQUES OF TOYOTA MOTORS

PRESENTED BY: DIGVIJAY SINGH SHIKHAR PURI ANKIT TYAGI

Why Toyota
Toyota is now the world's largest carmaker.
Toyota sold 2.348 million vehicles in the first three

months of 2007.
General Motors (GM) is

estimated to have sold 2.26 million cars and small trucks during the same period.

Toyota Callback Case


1.5 Million Toyotas Recalled for Brake and Fuel

Pump Problems globally. This hampered the Toyota Brand. It was due to some error at the factory level. i.e. Production Operations were faulty.

If Marketing and Sales are the limbs of the company then Operations is surely the Backbone

Toyota Motor Corporation


Headquartered in Japan Founded by Kiichiro Toyoda in 1937 Revenues 18.9 trillion Yen in 2010 71,116 employees Operations in North America, Latin America,

Europe, Africa, Asia, Oceania and Middle East

Toyota Production System (TPS)


Definition: The production system developed by Toyota

Motor Corporation to provide best quality, lowest cost, and shortest lead time through the elimination of waste.

TPS is comprised of two pillars, Just-in-Time and Jidoka

(Autonomation - Automation with a human touch)

TPS is maintained and improved through iterations of

standardized work and kaizen (continuous improvement), following PlanDo-Check-Act (PDCA Cycle from Dr. Deming), or the scientific method.

JIT In Toyota
Eliminate waste of all kinds by producing or

supplying materials only when they are needed. Produce only the necessary products, at the necessary time and in the necessary quantity JIT allowed Toyota to do away with inventory cost such as raw material, WIP cost, FG Cost.

Pull System Of Manufacturing


JIT was based on reverse reasoning and the working

of the production line started at the point of customer demand.


Parts Supply Raw Materials

Demand

Assembly

Push System Of Manufacturing


If JIT is achieved throughout the organization, then

the inventory would be completely eliminated

Raw Material

Part Supply

Assembly

Product

Kanban
Implementing JIT is difficult as it require thousand

parts/components to manufacture. Kanban means signboard in Japanese was a tool to effectively control production quantities Workers of a process needing components wrote the details about the kinds of units needed and the quantity in which they are needed on a card called the Kanban.

The system was made up of a fixed number of containers, each holding a certain fixed quantity of parts

TQM
Total quality management or TQM is an integrative

philosophy of management for continuously improving the quality of products and processes. Total Quality Management (TQM) is a management approach to long-term success through customer satisfaction, all members of an organization participate in improving processes, products, services and the culture in which they work. It is important because every company needs all operation should be done right the first time. The aim of the combination of quality and management is increasing business and reducing losses due to wasteful practices to low cost.

TQM & TOYOTA


Originally TQM started was TPM "Total Productive

Maintenance". It was invented by Toyota, not by W. Edwards Deming or by the U.S. Navy. Before TPM problem was that workers followed the basic American practice which was to operate a machine until it broke and only then call in an engineer to fix the machine. This cause extra time consumption. The US Navy began to develop what it called "Total Quality Management" around 1980 which was based on a collection of Japanese models, the most important of which was Toyota's TPM.

Steps taken by Toyota to improve Quality


Maintain quality through team work-work as a

team to continuous improvement in quality. High quality start with the consumer-focus not only on economic issue but also on customer life. Ask WHY five times about every matter-Go directly to source and keep asking why, when problem arise. Building quality into process-Standard in process Good thinking. Good products-encourage creative idea for quality improvement.

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