Outline Continued

Taiichi Ohno’s contributions
Presentation by: Cody Johnson – BYU Student
Taiichi Ohno Contribution Outline
Who is Taiichi Ohno?
Key terms and meanings
What is the Toyota Production System
View the basics of the TPS
Where do many of the ideas stem from
Review the Seven Wastes
Asking ‘why’ 5 times
Stagnation = waste
Outline Continued:
• Key component to TPS – JIT – What is it?
• Brainstorming Activitiy – Takt Time
• Key Componenet to TPS explained – Kanban
• Summary
• Sources/Readings List
Taiichi Ohno
 Who is Taiichi Ohno?
 Born in China but known as a Japanese Businessman
 What is he known for?
 Being the father of the Toyota Production System (TPS)
 Ohno drove development and practical application of the
 Believed in teaching leadership by example and
empowering employees
Quote from Ohno: “Costs do not exist to be calculated, they exist to be reduced.”
Key terms and meanings
Just-in-time: getting what is needed at the time it is needed in the quantity needed (JIT)
Kanban: Simple, clear, fast means of communication
Autonomation: separation of machine and man
Muda: Waste, anything that is non-value added
Poka-Yoke: A failsafe, instruments in place to avoid mistakes
Heijunka: The discipline of leveling customer demand (Quantity and Variety)
Kaizen: continuous improvement
Takt Time: referred to as the time it takes to assemble products in each stage of the
manufacturing process
• Jidoka: automation with a human touch
What is the Toyota Production System?
*Two main pillars*
• Continuous Improvement - often referred to
as Kaizen
• Respect for People
The Basics of TPS
Heijunka – Preexisting condition – Keep it level
a. Pull System
b. Continuous Flow
c. Takt Time
a. Stop and Fix
b. Separate Human & Machine
Create flow of parts and seek people contributing to the company
Where did Toyota get their ideas for the TPS?
•Experiencing major material shortages
because of the war
•Henry Ford and his book
•US Supermarkets – Saw replenishment
and product delivery
Ford Model T - 1908
The Seven Wastes of the TPS – ‘MUDA’
•Too much machining (Over-processing)
•Making defective parts and products
You must first understand the nature of waste before it can be recognized
Asking ‘Why’ 5 times
• Critical component of problem solving
• Goal: find the root cause of the problem
• The direct root cause should point to a
process after asking the 5 whys
What is stagnation and how do
we eliminate waste?
Products are always changing
-How can we add value
We must have a continuous flow
*Stagnation is considered waste, no matter
what form it is in.
Keep the flow with Takt Time
Just-in-time (JIT)
Developed to eliminate inventory
Produce What is needed
At the time it is needed
In the Quantity needed
• Pull Systems (Kanban signals)
• Keeping Takt Time (pace of sales)
Brainstorming Activity – Takt Time
Formula for Takt Time =
Time Available
Customer Demand
Time Available = Amount of scheduled work time per shift
8.00 hrs. per shift – minus .80 hrs of break and lunch
= 7.2 hours of work time
We need to convert minutes to seconds:
7.2 hours X 60 min.= 432 min.
Per Shift the available time = 25,920 seconds
432min.X 60 sec.= 25,920 sec.
Brainstorming Activity – Takt Time
Now that we have ‘Time Available’, we need to compute
customer demand.
Customer Demand (Parts Required) = Demand per shift
Weekly Demand
= Demand per shift
# of Shifts per week
27,000 demand per week
10 shifts per week
= 2,700 units per shift
Brainstorming Activity – Takt Time
Takt time = Time Available
Parts Required (Customer Demand)
= 25,920 seconds per shift
= 9.6 seconds per unit
2,700 units per shift
*Every 9.6 seconds one unit should be produced*
What if we are
running faster than
Takt Time?
What if we are
running slower than
Takt Time?
• Inventory increases
• Lead times increase
• Demand on
suppliers increase
• Cost increase
• Overtime needed to
meet demand
• Product increases in
• Shipping costs will
• Customer
• Missed shipments
Kanban system
• A pull system – What is a pull system?
Pull – means that nobody upstream will produce goods or
services until the customer downstream asks for it
Push – means produce even if there is no demand
How does a Kanban Pull
system work?
“Shop Stock”
*This side you are seeing the flow of
*This side you are seeing the flow of
information. A signal is sent to
notify that more material is needed.
Much to learn about the TPS concepts
Terms are simple and straightforward
Identify the seven wastes
Asking ‘why’ 5 times can make a difference
JIT and Kanban – if implemented correctly, can be
extremely beneficial for your organization
• Always be looking for waste – WASTE = $$
Readings list: Sources
• ‘Toyota Production System’ written by Taiichi
• ‘The Toyota Way’ written by Jeffrey Liker
• I worked at US Synthetic in Orem, Utah and took
a Lean certification class. They base much of their
manufacturing off of the TPS. I received a lot of
information from my research from the hand book
for this certification class through US Synthetic

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