Toyota Way Chapter 8

1. CHAPTER 8CHAPTER 8
Principle 2 :Principle 2 :
Create Continuous Process Flow toCreate Continuous Process Flow to
Bring Problems to the SurfaceBring Problems to the Surface
Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPSChapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS 1

2. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
The Right Process Will Produce the Right Results
SECTION II : THE RIGHT PROCESS WILL
PRODUCE THE RIGHT RESULTS
waste
waste
waste
waste
waste
waste
waste
waste
90%
10%
Most Business
Processes are 90% w
aste and 10% Value-a
dded work
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3. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
EXAMPLE OF BATCH MANUFACTURE
VS ONE-PIECE FLOW
Batch Manufacture
Batch manufacturing is often
organized by grouping processes,
However this can inhibit material flow.
One Piece Flow
Inventory is eliminated between
Processes allowing the product to
Flow through the value stream.
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4. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
THE EIGHT NON-VALUE-ADDING WASTES
4

5. What is the idea way to
organize your equipment and
process ?
What is the idea way to
organize your equipment and
process ?
Group similar machines
and similarly skilled people
together.
Group similar machines
and similarly skilled people
together.
Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
TRADITIONAL MASS PRODUCTION THINKING
5

6. 1.1. Economies ofEconomies of
scalescale
2.2. ApparentApparent
flexibility inflexibility in
schedulingscheduling
Mechanical
Engineering
Mechanical
Engineering
Electronical
Engineering
Electronical
Engineering AccountingAccounting
PurchasingPurchasing
ManufacturingManufacturing
Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
TRADITIONAL MASS PRODUCTION THINKING
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7. - Material handling department or planning department- Material handling department or planning department
- Move the most material possible each trip- Move the most material possible each trip
How often should you move material or information
between department?
How often should you move material or information
between department?
- InventoryInventory
- Delay timeDelay time
Produce theProduce the
customer’s order incustomer’s order in
shortage timeshortage time
TraditionalTraditional LeanLean
Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
TRADITIONAL MASS PRODUCTION THINKING
7

8. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
TRADITIONAL MASS PRODUCTION THINKING
8

9. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
TRADITIONAL MASS PRODUCTION THINKING
9

10. “ Often we think that increasing the speed of a process
means compromising quality, that faster is sloppier. But flow
achieves just the opposite---it generally improves quality.
Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
WHY FASTER MEANS BETTER IN A FLOW
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11. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
BATCH PROCESS & ONE PIECE FLOW
11
1 Min
1 Min
1 Min

12. “Takt” is a German word
for “Rhythm” or “Meter”
“Takt” is the rate of
customer demand
Takt TimeTakt Time
ใช้เพื่อกำำหนดจังหวะกำรทำำงำนที่ควรจะเป็นกำรไหลอย่ำงต่อเนื่อง
และ Takt time โดยส่วนใหญ่นำำไปประยุกต์ใช้กับกำรผลิตที่มีรูป
แบบซำ้ำเดิม ที่สำมำรถแจกแจงขั้นตอนต่ำงๆ ออกมำ รวมถึงกำรบ่ง
ชี้ควำมสูญเปล่ำในกระบวนกำรที่ต้องถูกกำำจัดออกไป เพื่อปรับปรุง
กำรไหลให้ดียิ่งขึ้น
TAKT TIME
Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS12

13. Builds in Quality
Creates Real Flexibility
Creates Higher Productivity
Frees up Floor Space
Improves Safety
Improves Morale
Reduces Cost of Inventory
BENEFITS OF ONE-PIECE FLOW
Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS13

14. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
WHY CREATING FLOW IS DIFFICULT
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15. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
WHY CREATING FLOW IS DIFFICULT
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16. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
• Fake Flow
Example: Will-Burt Company in Orrville, Ohio
Before After
Production Lead Time
(dock to dock)
37.8 days 29.2 days
Production Lead Time
(saw to weld)
3.75 days 0.8 days
# of Forklift Moves 11 2
Travel Distance
(dock to dock per
mast)
1,792 feet 1,032 feet
Shop Order Input Time
(per mast)
207
minutes
13
minutes
WHY CREATING FLOW IS DIFFICULT
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17. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
• Go backwards as soon as problem occurs
The problem is Cost to Creating Flow!!!
Short-term
costs
Continuous
Improvement
Better
Results in th
e Long run
WHY CREATING FLOW IS DIFFICULT
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18. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
SUMMARY
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19. Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS
Puget Sound Naval Shipyard
and Intermediate Maintenance
Facility
Repairing variety from submarines to carriers
Bottle neck
problem
Takt time was created
(based on demand of instrument)
Kaizen
Reorganize & office space
KEY: core people doing bulk of
work and collocate them to open
environment
1.non value added time
2.wait time
3.total lead time (Days)
4.travel distance of paperwork
5.step of Process
6.handoff
All above were reduced;
***Improvement in job process***
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20. Thank youThank you
Chapter 8: The 14 Principles of the Toyota Way: An Executive Summary of the Culture Behind TPS20