All setup practices are wasteful because they add no value and they
tie up labor and equipment. By organizing procedures, using
carts, and training workers to do their own setups, Toyota managed
to slash setup times from months to hours and sometimes even
minutes.
Small-Lot Production: Producing things in large batches results
in huge setup costs, high capital cost of high-speed dedicated
machinery, larger inventories, extended lead times, and larger
defect costs. Because Toyota has found the way to make setups short
and inexpensive, it became possible for them to economically produce
a variety of things in small quantities.
Toyota
organized their workers by forming
teams and gave them the responsibility and training to do many
specialized tasks. Teams are also given responsibility for
housekeeping and minor equipment repair. Each team has a
leader who also works as one of them on the line.
Quality at the Source:To eliminate product defects, they must
be discovered and corrected as soon as possible. Since workers
are at the best position to discover a defect and to immediately fix
it, they are assigned this responsibility. If a defect cannot be
readily fixed, any worker can halt the entire line by pulling a cord
(called Jidoka).
Equipment Maintenance: Toyota operators are assigned primary
responsibility for basic maintenance since they are in the best
position to defect signs of malfunctions.
Maintenance specialists
diagnose and fix only complex problems, improve the performance of
equipment, and train workers in maintenance.
Pull Production:
To reduce inventory holding costs and
lead times, Toyota developed the pull production method wherein the
quantity of work performed at each stage of the
process is dictated solely by demand for materials from the
immediate next stage. The Kamban scheme coordinates the flow
of small containers of materials between stages. This is where the
term
Just-in-Time (JIT) originated.
Supplier Involvement:
Toyota treats its suppliers as
partners, as integral elements of Toyota Production System
(TPS). Suppliers are trained in ways to reduce setup times,
inventories, defects, machine breakdowns etc., and take
responsibility to deliver their best possible parts.
It is an ideal tool
for any company, large or small, which doesn't wish to operate a complex, oversized, MRP system when all they really want is the ability to manage inventory, vendors, customers and associated purchase orders, sales orders and invoicing.