Operations and Service Management

Executive summary

Toyota is a major player in the global auto industry. Products of greater quality and lower cost are the results of its lean manufacturing approach, which emphasizes reducing waste, improving productivity, and providing value to clients. This paper draws from both original research and secondary sources including scholarly articles and books. The introduction provides a brief overview of Toyota’s lean manufacturing process, and the rest of the paper focuses on the process’s efficiency, the technologies integral to it, and how they can be improved with the help of other supporting functions. Finally, a conclusion is included to summarize the report’s main points.

Introduction

Management of an organization’s operations to improve productivity and maximize profits is known as operations management. Activities that require to be managed for an organization to work smoothly daily include manufacturing, shipping, managing the supply chain, financial management, and the direction of several divisions (Chambers, 2018). This report’s operation management practice is a study of Toyota’s Lean production method. The Toyota Production System (TPS) is the company’s standard operating procedure for building cars. Frequently referred to as a “lean” or “Just-In-Time” framework, this is a novel approach to production that prioritizes efficiency over other factors. In addition, this report intends to furnish readers with ample information regarding Toyota’s lean manufacturing process, including the effectiveness of the said process, its operation with the aid of other supporting functions throughout the organization, and the technologies that could be incorporated therein.

Operations management practice of Toyota

Lean manufacturing is a core part of the company’s approach to the management of operations. Toyota’s method of productive manufacturing is called TPS (Toyota Production System). TPS stands for the Toyota Production System, a manufacturing methodology created by the Japanese automaker (Lownal, 2019). For reasons of productivity and quality assurance, the firm adopted the system. Ultimately, the goal of TPS is to ensure that no waste is produced at any stage of the production cycle. JIT manufacturing and JIDOKA are two of its key tenets.

The Toyota Production System is based on three pillars:

• The pursuit of perfection
• The value of each employee
• The incorporation of superior quality into every step of the manufacturing cycle

There is no doubt that the Toyota Production System is among the most efficient and effective in the world. Just-in-time manufacturing, continuous improvement through the application of the 5 Whys and the 3Ms, and the “House of Lean” are all integral parts of the framework as a whole (Bronze, 2016).

Figure 1: Toyota Production System (TPS)

Source: (Bronze, 2016)

Just In Time (JIT) manufacturing

JIT manufacturing, frequently referred to as JIT manufacturing or the Toyota Production System (TPS), is an approach to streamlining production that emphasizes waiting as little time as possible between stages (Imai, 2017). It was first created by Toyota, a Japanese automaker, and has since been adopted by companies across a wide range of businesses.

JIDOKA

When something out of the ordinary is discovered, manufacturing is halted, a process known in Japan as judoka. The point of jidoka is to eliminate the possibility of errors occurring in the first place. The principle of jidoka stems from the lean production concept, which places a premium on minimizing wastage in all its manifestations (Imai, 2017). When the manufacturing setting is subpar, companies implement judoka to spot and fix issues before they can lead to errors.

Kaizen

“Kaizen” is a Japanese term that means “improvements” or “alteration for the good.” Using a cycle of constant iteration and refinement, Toyota factory workers have learned to pinpoint and eradicate any sources of unnecessary waste. With kaizen, Toyota strives for constant, gradual advancement (Ansuini, 2012). Because of its ability to facilitate trash removal and quality enhancement in tandem, this development prepares the way for several advantages.

The 3Ms

Muda, Muri, and Mura are known as the “Three Ms” of the Toyota Production System (TPS).

• Muda

“Wastage” in Japanese is (muda). The term “muda” is used to describe any element that does not improve the final result.

• Muri

“Overburden” translates to “muri” in Japanese (Ohno & Bodek, 2019). In the Toyota Production System (TPS), muri are any activities that are taxing on the resources of the company, whether it be human labour or machinery.

• Mura

In Japanese, this phenomenon is called mura, which means “unevenness.” Mura means “inconsistency” or “variation” in the framework of TPS.

House of Lean

The concept of kaizen, or continuous improvement, is central to the House of Lean. This means that organizations should continuously seek out opportunities to streamline their operations and cut down on waste. The House of Lean offers businesses a road map to success in this area (Carolla, 2014).

There are seven different types of production waste identified by the Toyota Production System. The following is a description of these trashes:

• Overproduction

Products that surpass the total amount or quality requirements of consumers are considered overproduction wastage. For the purpose to keep the assembly line running smoothly, it’s often necessary to produce goods in advance or to supply more products than is required to fulfil current orders.

• Waiting

Even if it doesn’t seem like it at first, waiting can have a major effect on how quickly things get done. There are many different kinds of waiting, such as resource waiting, machinery waiting, authorization waiting, etc.

• Transportation

Any action taken in transportation that does not improve the product in some way is considered wasteful (Simpson, 2020). It’s everything that doesn’t have an essential role in creating the final result.

• Motion

All non-value-adding human or mechanical activity is considered motion. Reducing unneeded movements in a manufacturing setting can have a major impact on output.

• Defects

The Toyota Production System considers defects to be one of the seven primary wastages. Flaws refer to anything that falls short of the expectations of the buyer. There are four types of flaws: visible, invisible, hidden, and potential.

• Inventory

Products that do not directly benefit the client are considered inventory (Simpson, 2020). Everything from raw ingredients to completed goods is included.

• Underutilized talent

The skills of individuals go to waste when they aren’t used to their full potential, which happens when they’re underutilized. It can cause dissatisfaction among workers, greater turnover, and lower output.

Figure 2: 7 wastes of TPS (MUDA)

Source: (Takeuchi & Kimura, 2022)

Impact of Lean manufacturing practice on Toyota

Companies in industries other than automobile manufacturing have paid a lot of focus to the Toyota Production System over the past few years. Many businesses are interested in studying Toyota’s methods of manufacturing to boost their productivity and profits (Smalley, 2014). The Toyota Production System can benefit the organization in a few key manners:

• The procedure Streamlining

The most prosperous businesses today are those that have figured out how to maximize the efficiency with which they generate their wares and operations. This is when the term “streamlined manufacturing” enters into play. If someone wants to maximize productivity in your factory, they need to streamline the process of manufacturing. Toyota’s legendary Toyota manufacturing Process has made the company a pioneer in the field of mass manufacturing efficiency for decades (Takeuchi & Kimura, 2022). To help companies optimize their manufacturing procedures, Toyota developed the Toyota Production System (TPS), which is a set of guidelines and procedures refined over many years.

• Tighter Monitoring of Quality

Toyota employs a manufacturing approach to enhance quality assurance that might benefit the company as well. Toyota uses this approach because it is based on the philosophy of continuous improvement, indicating the company is always looking to better its procedures and goods. Toyota can reach this goal thanks, in part, to the use of a just-in-time manufacturing process that allows them to reduce wasteful runs of production. They can adjust swiftly to shifts in consumer demand thanks to this technology (Stewart, 2018). Structured directions for work are an integral part of Toyota’s assurance of the quality process. It makes sure that everyone does their job identical manner and adheres to the same policies. It facilitates the rapid detection and resolution of issues. Toyota has had enormous success because of these quality assurance processes.

• Increased Versatility

The capacity of a production system to swiftly and readily respond to shifts in demand is what we mean when we talk about greater adaptability. Movable elements of manufacturing lines allow companies to quickly switch between making a variety of items. The advantages of greater adaptability are dual. As a result, firms can adapt rapidly to shifts in consumer demand. Furthermore, it saves businesses the time and money that would otherwise be spent revamping their manufacturing processes for each new product. The Toyota Production System is widely recognized for being both adaptable and effective (Ohno & Bodek, 2019). Since implementing this approach, the business’s operations have greatly improved; consequently, it is now offering the method as an offering to other businesses.

• Improves Effectiveness and Output

The core tenet of the Toyota Production System is the complete eradication of waste. Excessive stock, travel, faults, and excessive processing are all examples. Companies may run more smoothly and provide better goods by reducing unnecessary expenses. The Toyota Production System can be adapted to fit a variety of corporate settings. But one common method is to utilize “kanban” cards to indicate when work must be done (Bronze, 2016). Employees are better able to maintain attention and are less likely to begin new tasks when the present ones are completed.

Figure 3: Global position of TOYOTA

Source: (Raghu, 2017)

Integrating machine vision and AI using Jidoka techniques in Toyota

The jidoka strategies of poka-yoke, 5 whys, and Kaizens, enhanced by machine vision and AI, are detailed below:

• Poka-Yoke

The goal of “Poka-Yoke” is for creating a procedure more reliable by preventing errors from happening during its execution. It’s utilised during the procedure for inspection to make sure everything gets checked off. Non-contact computer vision and AI can simplify the inspection process because they are simple to implement (Bronze, 2016). It’s a plus that the velocity makes it more efficient than doing the work by hand. Machine vision and AI solutions can assess in milliseconds what would normally require a human around a minute to examine, with much greater precision.

• 5 Whys

The “5 Whys” method is an ongoing series of questions used to investigate the root causes of an issue. The 5 whys method is intended to isolate the issue at hand and gain insight into its nature. Because of this, we can provide customers with trustworthy and consistent tailored solutions based on machine vision and AI.

• Kaizen

“Kaizen” is a Japanese word made up of the characters for “change” (KAI) and “better” (ZEN) (Chambers, 2018). Kaizen refers to the practice of making steady, incremental improvements to a system. Kaizen focuses on improving processes. To get really good outcomes, you need to improvise on the entire procedure. It integrates novel ideas and persistent work towards the twin goals of always getting better and always keeping the same excellent standards.

To help businesses sustainably improve and preserve standards of quality, machine vision and artificial intelligence can be employed to automate inspections method and decrease fault outflow. There are four steps to accomplishing this, the first of which is taking photographs using a designated camera (Chambers, 2018). The second is the creation of answers using annotations and deep learning programmes. The subsequent step is to roll out an answer for continuous monitoring.

Lastly, keep an eye on things and adjust how precise your inspections are. For instance, our powerful optical system captures rings in specialised illumination with the assistance of a camera, verifies the number, and then displays the comparable outcome. Human ring counting examination would be imprecise because of the tiny rings if the machine vision method wasn’t employed (Newman et al., 2021). This would lead to an increase in flaws. A ring that wasn’t counted correctly would be useless because it wouldn’t fit the following assembly. Machine vision and AI solutions facilitate ring numbering by making it more accurate and quicker than human numbering methods.

Supporting functions embedded in the operations of Lean Manufacturing at Toyota

Lean manufacturing, often known as the Toyota Production System (TPS), is a methodology developed by Toyota to maximise productivity and minimise waste in manufacturing (Chambers, 2018). Although manufacturing and maintenance are TPS’s main concerns, the philosophy’s achievement also depends on several ancillary factors. The purpose of this reply is to investigate some auxiliary operations associated with Toyota’s Lean production method.

• Management of People (HR)

Human resources (HR) is an integral back-office performance in any business, and the Lean industry gvumawof manufacturing is no exception. To put TPS concepts into practice, human resources play a crucial role in hiring, educating, and fostering workers with the necessary skills. Human resources are also accountable for fostering an environment of constant growth and development and facilitating staff participation and autonomy (Smalley, 2014). Human resources are also responsible for talent pipeline management, which involves maintaining a consistent flow of qualified people to back up lean manufacturing initiatives.

• Supply chain management

The management of the supply chain is also an important assisting element for the implementation of Lean manufacturing. The Toyota Production System (TPS) emphasizes a streamlined supply chain that cuts down on unnecessary steps and delays. The supply chain group is in charge of maintaining contact with vendors, maximising the amount of inventory, and guaranteeing on-demand access to basic supplies (Monden, 2019). Toyota is capable to decrease expenditures, raising productivity, and enhancing quality by concentrating on streamlining and optimising the supply chain.

• Sales and marketing

It’s easy to overlook the importance of sales and marketing in guaranteeing the achievement of TPS, but they’re essential to the continued growth of any lean manufacturing operation. The team working on the project relies on the sales and marketing teams to ascertain what the consumer wants and then relay that information to them (Lownal, 2019). Toyota’s production is more efficient and wastage is cut down to a minimum thanks to the company’s keen awareness of customer needs. When it comes to educating consumers, vendors, and other partners on the benefits of lean manufacturing, sales and marketing personnel additionally have an important role.

• Information technology (IT)

When it comes to the achievement of lean manufacturing, IT is an additional vital assisting element. Obtaining and analysing data is crucial in a Lean manufacturing setting to reduce inefficiencies, increase productivity, and foster a culture of constant advancement. For information to be gathered, analysed, and reported, IT must supply the required infrastructure and capabilities. These include anything from MES to ERP (Alvira, 2022). Toyota improves productivity and cuts costs by using data to inform its Lean production practices and modern technology.

Figure 4: Technologies Used in Lean Manufacturing Practice

Source: (Alvira, 2022)

• Accounting and Finance

The process of lean manufacturing relies heavily on the finance and accounting departments for assistance. To keep a Lean manufacturing setting going strong, it’s crucial to comprehend how every choice could affect money. A company’s financial health can be monitored and reported on by its finance and accounting staff, who should also look for ways to cut costs and maximise productivity with the assets at their disposal (Carolla, 2014). Toyota can make investments in lean manufacturing practices and refine its business processes because it has a solid economic footing.

Several ancillary processes are essential to the success of Toyota’s Lean manufacturing approach. Included in this category are human resources, management of supply chains, sales and marketing, information technology, and accounting (Ansuini, 2012). Toyota can foster a mindset of continuous enhancement, as well as increase productivity and cut down on waste material, by utilising these auxiliary processes in service of TPS objectives.

Conclusion

The report concludes by praising Toyota’s Lean manufacturing approach, which is widely regarded as one of the strongest and most efficient methods of production worldwide. The three main tenets of Lean manufacturing are “wastage elimination,” “continuous improvement,” and “the empowerment of staff members for bettering manufacturing procedures” (Stewart, 2018). Just-In-Time manufacturing, Kanban, and Kaizen are just a few of the core tenets of Lean manufacturing that have been shown to boost productivity, save costs, and raise the quality of products. Due in large part to Toyota’s pioneering work in the field of Lean manufacturing, the technique is now widely used in a wide range of sectors. Yet, an important cultural shift is required for a company to effectively apply Lean manufacturing, and its advantages may not be immediately obvious. Toyota’s Lean manufacturing process has improved the organization’s efficiency and earnings despite a few setbacks.

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