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ANALYSIS OF PRODUCTION PRINCIPLES IN TOYOTA MOTOR CORPORATION case OM ANALYSIS OF PRODUCTION PRINCIPLES IN TOYOTA MOTOR CORPORATION case OM ANALYSIS OF PRODUCTION PRINCIPLES IN TOYOTA MOTOR CORPORATION case OM ANALYSIS OF PRODUCTION PRINCIPLES IN TOYOTA MOTOR CORPORATION case OM ANALYSIS OF PRODUCTION PRINCIPLES IN TOYOTA MOTOR CORPORATION case OM
TPS PROJECT.docx UNIVERSITY OF MUMBAI NCRD’S STERLING COLLEGE OF ARTS, COMMERCE & SCIENCE NERUL, NAVI MUMAI COLLEGE CODE: 0552 PROJECT REPORT ON “TOYOTA PRODUCTION SYSTEM – ANALYSIS OF PRODUCTION PRINCIPLES AND PROCESSES IN TOYOTA MOTOR CORPORATION” SUBMITTED BY “TUHIL GOSWAMI” PROJECT GUIDEANCE PROF MANASI KILEDAR IN PARTIAL FULFILLMENT FOR THE COURSE OF BACHELOR OF MANAGEMENT STUDIES (B.M.S) T.Y.B.M.S (SEMESTER V) ACADEMIC YEAR 2015 - 2016 [1] DECLARATION I TUHL GOSWAMI OF NCRD’S STERLING COLLEGE OF ARTS, COMMERCE & SCIENCE, studying in B.M.S (Semester V) hereby declare that I have complete this project report on “TOYOTA PRODUCTION SYSTEM – ANALYSIS OF PRODUCTION PRINCIPLES AND PROCESSES IN TOYOTA MOTOR CORPORATION” And has not been submitted to any other University of Institute for the award of any degree, diploma etc The information is submitted by me is true and original to the best of my knowledge Date: Place: Nerul Navi Mumbai (TUHIL GOSWAMI) [2] ACKNOWLEDGEMENTS I am thankful to STERLING INSTITUTE OF ARTS, COMMERCE AND SCIENCE for giving me an opportunity to work on the project I am highly thankful to my esteemed guide PROF MANASI KILEDAR for her support throughout the completion of this project [3] NCRD’S STERLING COLLEGE OF ARTS, COMMERCE & SCIENCE NERUL, NAVI MUMAI CERTIFICATE This is to certify that Mr Tuhil Goswami of Bachelor of Management Studies has undertaken and completed the project work titled ““TOYOTA PRODUCTION SYSTEM – ANALYSIS OF PRODUCTION PRINCIPLES AND PROCESSES IN TOYOTA MOTOR CORPORATION ” during the academic year 2015 – 2016 under the guidance of Prof MANASI KILEDAR submitted on to this college in fulfilment of the curriculum Of Bachelor of Management Studies University of Mumbai This is a bonafide project work and the information presented is true and original to the best of our knowledge and belief PROJECT GUIDE COURSE CO-ORDINATOR ( ) ( _) PRINCIPAL EXTERNAL GUIDE ( ) ( _) [4] CONTENTS SUMMARY - TOYOTA MANAGEMENT PRACTICES INRODUCTION – LEAN MANUFACTURING _ INTRODUCTION – TOYOTA PRODUCTION SYSTEM HISRORY – TOYOTA PRODUCTION SYSTEM TOYOTA WAY TOYOTA BUILDING BLOCKS LONG TERM PHILOSOPHY DEVELOPING PEOPLE SOLVING ROOT PROBLEMS ONE PIECE FLOW PULL SYSTEMS TOYOTA’S SIX RULES HEIJUNKA QUALITY STANDARDISATION 5S CONTINUOUS IMPROVEMENT LEADERSHIP MANAGING PEOPLE VENDOR MANAGEMENT LEARNING ORGANISATIONE PERFORMANCE MEASUREMENT [5] _ WORK CULTURE TPS CONCEPTS JIDOKA CONTENTS (CONTD ) JIT POKA YOKE MURA MURI ELIMINATION OF WASTES IN LEAN MANUFACTURING TOYOTA MISSION AND VISION _ 10 ILLUSTRATION OF TOYOTA PRODUCTION SYSTEM 11 HISTORY OF TOYOTA MOTORS _ 12 FACTS ABOUT TOYOTA MOTOR CORPORATION 13 HISTORY OF KIRLOSKAR GROUP 14 INTRRODUCTION – TOYOTA KIRKLOSKAR MOTORS 15 TOYOTA PRODUCT LINE IN INDIA 16 IMPLEMENTATION OF TOYOTA PRODUCTION SYSTEM 17 SOCIAL CONTRIBUTION 18 TMMK PLANT TOUR 19 TOYOTA AND ENVIRONMENT 20 DISTINGUISHING FEATURES ( REASONS TO BUY) 21 RESEARCH FINDINGS 22 TOYOTA PRODUCTS 23 TOYOTA AWARDS [6] 24 RECOMMENDATION 25 CONCLUSION 26 BIBLIOGRAPHY EXECUTIVE SUMMARY Toyota’s Management Practices Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms "Lean Manufacturing" and Just in Time Production, which it was instrumental in developing Toyota's managerial values and business methods are known collectively as the Toyota Way In April 2001, Toyota adopted the "Toyota Way 2001", an expression of values and conduct guidelines that all Toyota employees should embrace Under the two headings of Respect for People and Continuous Improvement, Toyota summarizes its values and conduct guidelines with the following five principles: Challenge Kaizen (improvement) Genchi genbutsu (go and see) Respect [7] Teamwork According to external observers, the Toyota Way has four components: Long-term thinking as a basis for management decisions A process for problem-solving Adding value to the organization by developing its people Recognizing that continuously solving root problems drives organizational learning [8] LEAN MANUFACTURING Lean principles are derived from Japanese Manufacturing Industry Lean manufacturing or lean production, often simply "lean", is a systematic method for the elimination of waste ("Muda") within a manufacturing system Lean also takes into account waste created through overburden ("Muri") and waste created through unevenness in workloads ("Mura") Working from the perspective of the client who consumes a product or service, "value" is any action or process that a customer would be willing to pay for [9] Essentially, lean is centred on making obvious what adds value by reducing everything else For many, lean is the set of "tools" that assist in the identification and steady elimination of waste (muda) As waste is eliminated quality improves while production time and cost are reduced A non exhaustive list of such tools would include: SMED, value stream mapping, Five S, Kanban (pull systems), poka-yoke (error-proofing), total productive maintenance, elimination of time batching, mixed model processing, rank order clustering, single point scheduling, redesigning working cells, multi-process handling and control charts (for checking mura) Lean manufacturing is a management philosophy derived mostly from the Toyota Production System (TPS) (hence the term Toyotism is also prevalent) and identified as "lean" only in the 1990s TPS is renowned for its focus on reduction of the original Toyota seven wastes to improve overall customer value, but there are varying perspectives on how this is best achieved The steady growth of Toyota, from a small company to the world's largest automaker, has focused attention on how it has achieved this success There is a second approach to lean manufacturing, which is promoted by Toyota, called The Toyota Way, in which the focus is upon improving the "flow" or smoothness of work, thereby steadily eliminating mura ("unevenness") through the system and not upon 'waste reduction' per se Techniques to improve flow include production levelling, "pull" production (by means of kanban) and the Heijunka box This is a fundamentally different approach from most improvement methodologies, and requires considerably more persistence than basic application of the tools, which may partially account for its lack of popularity [10] Toyota Kirloskar Motor Private Limited A subsidiary of Toyota Motor Corporation of Japan (with Kirloskar Group as a minority owner), for the manufacture and sales of Toyota cars in India It is currently the 4th largest car maker in India after Maruti Suzuki, Hyundai, and Mahindra Type Joint venture Industry Automotive Founded October 1997 Headquarters Bangalore, Karnataka Key people Mr Ryoichi Sasaki, Chairman Products Automobiles Employees 4,975 Parent Subsidiaries Toyota Motor Corporation, Kirloskar Group Toyota Kirloskar Auto Parts Private Limited [67] TKMPL's current plant at Bidadi, Karnataka is spread across 432 acres and has a capacity of 80,000 vehicles per annum TKMPL's second manufacturing plant on the outskirts of Bangalore, Karnataka has a capacity of 70,000 vehicles per annum Both plants have a combined capacity of 150,000 vehicles per annum On 16 March 2011, it announced that it was increasing production to 210,000 vehicles per annum due to increase in demand for its models especially the Etios and Fortuner Your Satisfaction Our Commitments Vision Delight our customers through innovative products, by utilising advanced technologies and services Ensure growth to become a major player in the Indian auto industry and contribute to the Indian economy by involving all stakeholders Become the most admired and respected company in India by following the Toyota Way Be a core company in global Toyota operations Mission Practise ethics and transparency in all our business operations Touch the hearts of our customers by providing products and services of superior quality at a competitive price Cultivate a lean and flexible business model throughout the value chain by continuous improvement Lead the Toyota global operations for the emerging mass market Create a challenging workplace which promotes a sense of pride, ownership, mutual trust and teamwork Create an eco-friendly company in harmony with nature and society THROUGH THESE ACTIVITIES ESTABLISH A SUPERIOR BRAND IMAGE IN INDIA [68] [69] [70] Toyota Product line in India Manufactured/Assembled locally Toyota Corolla (launched 2003) Toyota Innova (launched 2005) Toyota Etios (launched 2010) Toyota Etios Liva (launched 2011) Toyota Fortuner (launched 2009) Toyota Camry (launched 2002) Imported : Toyota Land Cruiser Prado (launched 2004) Toyota Land Cruiser (launched 2009) Toyota Prius (launched 2010) Discontinued: Toyota Qualis (1999-2004) [71] Production System Hormonizing with the Environment Globally, Toyota has indicated a strong and diverse commitment to the pursuit of harmonious growth through its technically advanced and environment-friendly products There have been relentless efforts in the crucial fields of mobility, city transportation, resources, society and environment, through research & development Protecting the environment has always been a priority at TKM, starting with the eco-friendly engines that are manufactured for the Toyota vehicles, to the advanced technology that is used for purification or recycling of waste water at the plant Apart from this, the plant at Bidadi, Karnataka, is surrounded by a green belt, meets high environmental standards and has achieved the ISO 14001 certification in its very first year of operations [72] Setting benchmarks for Production Excellence Quality is ensured in every vehicle that rolls out of Toyota Kirloskar Motor, through in-built audits at every process of the system The company's operational excellence is based on the improvement tools and methods developed by Toyota under the Toyota Production System (TPS), greatly emphasizing superlative quality and minimal waste In line with Toyota's growing comfort with its India operations, the company set up Toyota Kirloskar Auto Parts (TKAP), which commenced production of transmissions in May 2004, for its global requirements Another initiative is the Toyota Techno Park India (TTPI), a non-profit industrial infrastructure company aimed at boosting local industries and related job opportunities Setting benchmarks for the automobile industry, the manufacturing facility consists of divisions (shops) – Press, Weld, Paint and Assembly [73] Social Contribution Of TKM Toyota Kirloskar Motor (TKM) is constantly working towards harmonious, scalable and sustainable development of society We use our expertise, technology and partnerships to help communities who are in need The TKM Corporate Social Responsibility (CSR) policy is aligned with Toyota’s Global Vision for 2020: 'Seeking Harmony between People, Society and the Global Environment, and Sustainable Development of Society through Manufacturing' TKM has always and always will comply with local, national laws and regulations and conduct their business operations with honesty and integrity We believe that any initiative must start at home – our beloved plant, in this case Our plant has been planned to seamlessly adapt to the nature in and around it, not the other way round Our processes and technology have been tuned to function with lower levels of CO2 emissions We have a waste water recycling system, too The paint we use in the plant is nontoxic and water-based Over the years, through conscious effort, we have achieved zero landfill waste TKM's corporate approach is their commitment to invest and allocate resources for development and to improve the quality of life for the communities in which they live and work TKM contributes towards vibrant world through a socially responsible and sustainable approach that includes sharing knowledge and skills through the philosophy of giving back to the community TKM extended gradually their CSR programme focusing on overall development of the neighbouring villages and communities emphasizing on Education, Health & Hygiene, Road Safety, Environment and Skill Development [74] [75] TMMK PLANT TOUR Home of the world's finest automobiles and the world's finest automobile builders! Toyota Motor Manufacturing, Kentucky, Inc.(TMMK) in Georgetown, Kentucky, is Toyota’s first wholly owned manufacturing facility in the United States Since 1988, Toyota's Kentucky team has been building quality vehicles in the Bluegrass state Today, "TMMK" is the largest Toyota plant outside of Japan Each year in Georgetown, nearly 7,000 team members build about 500,000 vehicles and engines That's about 2,000 vehicles every day!! TMMK boasts over 11,500 square foot state-of-the art Visitor Center, offering both visual and hands-on experiences Visitors can see firsthand the beginnings of a global automaker, experience archival footage and see the first American Toyota Camry that rolled off the assembly line in 1988 Special exhibits also include detail principles of the Toyota Production System and the mechanics behind Toyota’s groundbreaking environmental initiatives Don’t hesitate to climb inside one of TMMK’s vehicles on display to experience one of Toyota’s finest crafted automobile TMMK and the Community Toyota Motor Manufacturing, Kentucky, Inc., proves its commitment to the community, as well as to the state, through both monetary contributions and personal involvement of TMMK team members Besides being a major contributor to United Way of the Bluegrass, which serves eight central Kentucky counties, many employees are members of and serve on community organization boards The Kentucky Chamber of Commerce, Governor’s Scholars Program, Leadership Kentucky, Urban League, YMCA Black Achievers, Lexington Humane Society, Louisville Zoo, Junior [76] Achievement of the Bluegrass, and the Governor's School for the Arts are just a few of the many organizations that TMMK supports [77] Toyota And The Environment Working hard to reduce waste, conserve energy and protect the environment Our Policy Statement As a leading Automotive Manufacturing Facility, Toyota Motor Manufacturing, Kentucky, Inc (TMMK) is committed to ensuring our operations and business practices contribute to the quality of life at TMMK and the surrounding community Team members are responsible for diligently managing their processes as part of the TMMK team In keeping with this philosophy, TMMK is adopting the EARTH CARE policy E = Provide Environmental Awareness to the TMMK team Assess Environmental Impact of TMMK's operations and strive A = to Kaizen R = Reporting of Environmental concerns by team members T = Train team members in areas of significant environmental impacts Heighten awareness H to Pollution Prevention and Emergency = Preparedness Programs Strive for Compliance with applicable laws, regulations and other C = TMMK requirements to protect the environment A = Perform periodic compliance Audits for assessing performance R = Respond to community and environmental compliance concerns Encourage Environmental Improvement through setting Objectives and E = Targets Four reasons to buy Toyota [78] Safety – Toyota is regularly best in class when it comes to safety In 2012, Toyota had ten vehicles that received the IIHS Top Safety Pick Award New Toyota models also feature the Star Safety System, which includes lots of great safety features that come standard on all vehicles Resale Value – Toyota regularly tops the list for Kelley Blue Book resale value In 2012, Toyota and Lexus won the Best Resale Value Award at the Los Angeles Auto Show They really hold their value when you use genuine parts such as Toyota Sienna parts Maintenance – Toyotas are durable, long-lasting vehicles Eighty percent of Toyotas sold 20 years ago are still on the road today Toyotas last a long time, especially when you use genuine Toyota parts Technology – When you buy a Toyota, you’re getting some of the latest technology in your vehicle Toyota’s Entune system allows you to connect to popular mobile apps right to your Toyota FINDINGS ABOUT TPS [79] CONTINUOUS IMPROVEMENT LEARNING ORGANISATION RESPECT FOR PEOPLE TEAMWORK QUALITY DRIVEN RESEARCH LONG TERM PHLOSOPHY LEADERSHIP MANAGEMENT STANDARDISED WORK LESS WORKLOAD ON EMPLOYEES REDUCED WASTAGE IN PRODUCTION [80] PROTECTING THE ENVIRONMENT SOCIAL CONTRIBUTION SETTING BENCHMARKS FOR PRODUCTION EXCELLENCE TOYOTA PRODUCTS [81] ... MURA MURI ELIMINATION OF WASTES IN LEAN MANUFACTURING TOYOTA MISSION AND VISION _ 10 ILLUSTRATION OF TOYOTA PRODUCTION SYSTEM 11 HISTORY OF TOYOTA MOTORS _ 12 FACTS ABOUT TOYOTA MOTOR CORPORATION. .. chance of being damaged during transport and becoming obsolete The waste of Inventory hides many of the other wastes in your systems Waste Of Waiting - The Waste of Waiting disrupts flow, one of. .. physical or information transformation of that product, service, or activity into something the customer wants TPS is all about commitment to continuously investing in its people and promoting a culture