1. Toyota Production System
and Lean Manufacturing
TOYOTA PRODUCTION SYSTEM
The Toyota Production System was adopted by
many Japanese companies in the aftermath of the
1973 oil shock
“Waste” Elimination Philosophy:
“.. Above all, one of our most important purposes was increased
productivity and reduced cost. To achieve this purpose, we put our
emphasis on the notion of eliminating all kinds of unnecessary
functions in the factories. Our approach has been to investigate one by
one the causes of various "unnecessaries" in manufacturing operations
and to devise methods for their solution, often by trial and error ...”
Taiicho Ohno, Former Vice President, Toyota Motor Corp., Former President, Japan Industrial Management
Association; Former Chairman, Toyoda Spinning and Weaving Co., Ltd.

2. PURPOSES OF JIT
Primary Purpose:
Profit through cost reduction (or improvement of
Productivity)
This is attained through WASTE elimination.
Other important purposes:
Quantity control:
JIT, Kanban & Autonomation (visual control system)
Quality control:
Autonomation, improvement by small groups, functional
management
Respect for humanity:
Flexible work force (adapt to demand changes), capitalize
workers ideas.
TYPES OF WASTE
Excessive production resources (primary waste):
excessive workforce
excessive facilities
excessive inventories
unnecessary capital investment
Overproduction (secondary waste - the WORST waste):
leads to
Excessive inventories (tertiary waste):
extra jobs make overproduction invisible.
adds losses in opportunity cost
lead to
Unnecessary capital investment (fourth waste):
adds facility depreciations and overhead cost

3. TO ACHIEVE THESE PUPOSES
7 Wastes Elimination
Just-In-Time (JIT) Production
Kanban System
Production Smoothing
5S
Setup Time Reduction
Machine Layout & Multi-function Worker
Autonomation (Visual Management)

4. Identification and Elimination of Waste
Philosophy
•Identification and elimination of waste is the central theme of a lean
manufacturing production system
•Lean manufacturing is a dynamic and constantly improving process
dependent upon understanding and involvement by all employees
•Successful implementation requires that all employees must be
trained to identify and eliminate waste from their work
•Waste exists in all work and at all levels in the organization

5. t
,
Identification and Elimination of Waste
Philosophy
Effectiveness is the result of the integration of:- Man
- Method
- Material
- Machine
At the worksite
• Waste exists in all work and at all levels in the organization
Seven Types of Waste
Over-production
Wait time
Transportation
Processing
Inventory
Motion
Defects

6. Over-production Waste
Definition
Producing more than needed Producing faster than needed
Over-production Waste
Characteristics:
•Inventory Stockpiles
•Extra equipment/oversized equipment
•Unbalanced Material Flow
•Extra Part Storage racks
•Extra Manpower
•Batch Processing
•Complex Inventory Management
•Excessive Capacity/Investment
•Additional Floor Space/Outside Storage
•Hidden Problems
•Excessive Obsolescence
•Large Lot Sizes
•Building Ahead

7. Over-production Waste
Causes:
•Incapable Processes
•Just in Case Reward System
•Lack of Communication
•Local Optimization
•Automation in the Wrong Places
•Cost Accounting Practices
•Low Uptimes
•Lack of Stable/Consitent Schedules
Waiting Time Waste
Definition
Idle Time That is Produced When Two Dependant Variables are not
Fully Synchronized.
•Man Wait Time
•Machine Wait Time

8. Waiting Time Waste
Characteristics:
•Man Waiting for Machine
•Machine/Materials Waiting for Man
•Unbalanced Operations (Work)
•Lack of Operator Concern for Equipment Breakdowns
•Unplanned Equipment Downtime
Waiting Time Waste
Causes:
•Inconsistent Work Methods
•Long Machine Change Over Time
•Low Man/Machine Effectiveness
•Lack of Proper Equipment/Materials

9. Transportation Waste
Definition
Any Material Movement That Does Not Directly Support a Lean
Manufacturing System
Transportation Waste
Characteristics:
•Extra carts, fork lifts, dollies
•Multiple Storage Locations
•Extra Material Racks
•Complex Inventory Management
•Extra Facility Space
•Incorrect Inventory Counts
•Damaged Material

10. Transportation Waste
Causes:
•Large Lot Processing
•Unleveled Schedules
•Lack of 5 S’s
•Lack of Visual Controls
•Improper Facility Layout
•Large Buffers and In Process Kanbans
Processing Waste
Definitio
n
Effort Which Adds No Value To a Product or Service.
Enhancements which are Transparent to The Customers or
Work Which Could Be Combined with Another Process.

11. Processing Waste
Characteristics:
•Process Bottlenecks
•Lack of Clear Customer Specifications
•Endless Refinement
•Redundant Approvals
•Extra Copies/Excessive Information
Processing Waste
Causes:
•Engineering Changes Without Processing
Changes
•Decision Making at Inappropriate Levels
•Inefficient Policies and Procedures
•Lack of Customer Input Concerning
Requirements

12. Inventory Waste
Definition
Any Supply in Excess of Process Requirements Necessary to
Produce Goods or Services Just in Time.
Inventory Waste
Characteristics:
•Extra Space on Receiving Docks
•Material Between Processes
•Stagnated Material Flow
•LIFO instead of FIFO
•Extensive Rework When Problems Surface
•Long Lead Time for Engineering Changes
•Additional Material Handling Resources (Men, Equipment,
Racks, Storage Space)

13. Inventory Level
Over
Production
Wait Time
Inventory Waste
Causes:
•Incapable Processes
•Uncontrolled Bottleneck Processes
•Incapable Suppliers
•Long Change Over Times
•Management Decisions
•Local Optimization
•In times
Process Defects
Motion Waste
Definition
Any Movement of People Which Does Not Contribute Added
Value To The Product or Service

14. Motion Waste
Characteristics:
•Looking for Tools
•Excessive Reaching or Bending
•Material Too Far Apart (Walk Time)
•Equipment for Moving Parts
•Extra “Busy” Movements While Waiting
Motion Waste
Causes:
•Equipment, Office & Plant Layout
•Lack of 5 S’s
•Lack of Visual Controls
•Inconsistent Work Methods (Standardized Work)
•Large Batch Sizes

15. Rework or Correction Waste
Definitio
n
Repair of a Product or Service To Fulfill Customer requirements
Rework or Correction Waste
Characteristics:
•Extra Floor Space/Tools/Equipment
•Extra Manpower To Inspect/Rework/Repair
•Stockpiling Inventory
•Complex Material Flow
•Questionable Quality
•Missed Shipments/Deliveries
•Lower Profits Due To Scrap
•Reactive Organization

16. Rework or Correction Waste
Causes:
•Incapable Processes
•Excessive Variation
•Incapable Suppliers
•Management Decisions
•Insufficient Training
•Inadequate Tools/Equipment
•Poor Layouts/Unnecessary Handling
•High Inventory Levels
Seven Types of Waste
Over-production
Wait
Transportation
Processing
Inventory
Motion
Defects

17. Seven Types of Waste