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Toyota production system

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Eliminate all unnecessary elements in the production area, used to achieve cost reductions, meeting the needs of customers at the lowest possible costs. The Toyota Production System is a methodology based on Lean Manufacturing, whose main objective is to reduce waste (Muda) and apply Just in Time (Just in Time) in the production process.

Introduction

The West realized that there was a different way of doing things and the authors coined and / or introduced the concept Lean Manufacturing to refer, of course, to the Toyota Production System (the Japanese do not call it Lean Manufacturing, for them the technique that developed in the automotive industry and shared with the world is the Toyota Production System).

The research also showed that not all these tools were innovations, but were mainly effective uses of many other existing tools, Eastern and Western, which were adapted to the type of industry and culture in which they should be implemented. The tools covered under the Lean Manufacturing concept range from those focused on the organization of the workplace (5 S's, born in Japan and already adapted by the West) to those that seek almost 100% quality in the processes (6 Sigma, born in the USA and developed by Motorola) but seeking to match the quality indices imposed by Japan, passing through those that focus their attention on the search for efficiency in the management of other resources of the productive apparatus (inventories and machinery),but always seeking to eliminate any vestige of waste (MUDA) generated by the inefficiency existing in the production processes (Just in Time, Kanban, Total Productive Maintenance –TPM-, Levelized Production –Heijunka-, Process Verification –Jidoka-, Devices to prevent errors -Poka Yoke-, Continuous improvement -Kaizen).

This system has been defined as a methodology - philosophy of excellence and continuous improvement aimed at eliminating waste and activities that do not add value to the processes for the manufacture, distribution and marketing of products and / or services, increasing the value of each activity carried out and eliminating those activities and sub-processes that are not required, allowing companies to reduce costs, improve processes, eliminate waste, increase customer satisfaction and maintain the profit margin. Over the years it has also been called: Flow Manufacturing, Just in Time Production and Demand Flow Technology.

From Lean Manufacturing to Lean Enterprise

Although it was foreseen by its creators, who make mention of the NIA (Not Invented Here) syndrome, and the resistance of people to apply the principles of Lean Manufacturing, considering that it was a system discovered and created in another part of the world., then they don't understand it and they don't accept it. James Womack and Daniel Jones mention that the concepts of Lean Manufacturing (arising from the Toyota Production System) are replicable to what they later called, in their second book Lean Thinking, Lean Enterprise, and in this sense they are applicable in any region of the world, in any industry, company, entity, organization and even nation.

"We believe that the fundamental ideas of lean manufacturing are universal - applicable anywhere by anyone - and many non-Japanese companies have learned this," Womack, Jones and Roos.

Why? Because Lean Manufacturing starts from the principle of eliminating waste, and whenever an activity is done, whatever it is, there is implicit waste. The idea of ​​Lean Enterprise is to reduce or eliminate it. Lean Enterprise is a new way of thinking in organizations to eliminate waste, MUDA, activities that consume resources but do not add value.

Lean Thinking

The 5 principles of Lean Thinking are:

  1. Define value from the customer's point of view: Most customers want to buy a solution, not a product or service Identify the value stream: Eliminate waste by finding steps that do not add value, some are unavoidable and others are eliminated immediately.Create flow: Make the whole process flow smoothly and directly from one step that adds value to another, from the raw material to the final consumer. Produce the customer's "pull": Once the flow is done, it is capable of producing by customer orders rather than producing based on long-term sales forecasts. Pursuing perfection: Once a company achieves the first four steps, it becomes clear to those who are involved that adding efficiency is always possible.

The fundamental part in the process of developing a lean strategy is that of the personnel, since it often involves radical changes in the way of working, something that by nature causes distrust and fear. What the Japanese discovered is that more than a technique, it is a good regimen of human relations. In the past, the intelligence and creativity of the worker has been wasted, and he is hired as if he were a machine. It is very common that when an employee at the lower levels of the organization comes up with an idea or proposal, they are criticized and even shut up. Managers sometimes don't understand that every time they 'turn off the light' on a worker, they are wasting money. The concept of Lean Enterprise involves the removal of controls and their replacement by leadership.The word leader is the key.

How to do it

According to Womack et al., The principles of lean thinking include:

  1. Efficient use of resources and elimination of waste Teamwork Communication Continuous improvement

The goal is the total elimination of waste through:

  1. Define waste (Muda) Identify source Plan waste elimination PERMANENTLY establish a control to prevent recurrence

To eliminate waste, it must first be identified. There are seven main types of MUDA, according to the classification developed by Ohno (Father of Just in Time):

  1. Overproduction move Inventory change Repair change / defective product rejection Move move Process change Hold move Transport move

Once you have identified what type of waste you have, you have to attack it to eliminate it.

Opportunity for Mexico.

As we can see, Lean or Lean Enterprise thinking is the logical evolution of Lean Manufacturing; that is to say, it is the application of the principles of the Toyota Production System to a company seen in an integral way, be it a manufacturing, commercial or service company of any nature. A company managed under the Light Company philosophy can achieve benefits such as:

  1. Reduce the waste chain dramatically Reduce production costs Reduce inventory and floor space in production, warehousing and point of sale Create more robust production systems Create appropriate material delivery systems Improve plant layout for Increase flexibility Reduce lead time Improve quality Optimize workforce Ensure greater equipment efficiency Minimize waiting times (delays)

Faced with this panorama, the implementation of the concepts of Lean Manufacturing or Lean Enterprise thinking is a highly feasible alternative for Mexican and Latin American MSMEs, the great base of our industrial and business structure, and mostly suppliers of large transnational manufacturers.

The principles of Lean Enterprise are viable for the management of a nation like ours, where waste is constant in each of our daily activities.

Lean thinking offers a complete and real alternative for Latin American professionals, companies, organizations, institutions and nations to implement within themselves a philosophy-culture focused on improving their competitive position, achieving high efficiency, reducing waste and continuous improvement.

Undoubtedly, an approach to Lean thinking is a possibility and / or the way to Lean Companies and Nations, where a better use and administration of financial, material and human resources is made, and use is made, as well as In Lean Manufacturing, all the production tools existing today such as 5'S, Theory of Constraints, Kanban, Just in Time, ISO Quality Certification, Total Productive Maintenance (TPM), Level Production (Heijunka), Process Verification (Jidoka), Devices to prevent errors (Poka Yoke), Continuous improvement (Kaizen), which are integrated into the new way of different business thinking, being part of a global concept, rather than holistic as is the case of Lean Enterprise.

The Toyota production system is a revolutionary system adopted by Japanese companies after the 1973 oil crisis, the Toyota company began to use it in the early 50's and the main purpose of this system is to eliminate all unnecessary elements in the production area (which includes from the raw material purchasing department, to the customer service department, through human resources, finance, etc.) and is used to achieve cost reductions never imagined and meeting the needs of customers at the lowest possible costs.

To achieve the above objectives, the system must meet the goals of three subsystems, which are:

  • Quality Control, which designs and develops a system that adapts to fluctuations in daily or monthly demand in terms of the quantity and variety of products.

Finally, a couple of videos with which you can get an overview of the Toyota Production System. The first is a video lesson by Professor Julio García Sabater, from the Polytechnic University of Valencia, who presents the key concepts of the lean manufacturing philosophy and TPS. The second is an institutional video in which the most important components of the system are outlined.

Toyota production system