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Case Studies FMS

The document discusses the Toyota Production System and how it compares to traditional mass production methods. It describes how Toyota pioneered a new approach combining aspects of mass production and craft production. The Toyota Production System aims for continuous workflow, just-in-time production, and flexibility. It uses small batch sizes and multi-skilled workers. A key part is the Kanban system which coordinates production through a card-based system to achieve smooth, timely delivery of needed parts. The Toyota approach focuses on efficiency while also aiming for high quality and respecting workers.

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0% found this document useful (0 votes)
181 views

Case Studies FMS

The document discusses the Toyota Production System and how it compares to traditional mass production methods. It describes how Toyota pioneered a new approach combining aspects of mass production and craft production. The Toyota Production System aims for continuous workflow, just-in-time production, and flexibility. It uses small batch sizes and multi-skilled workers. A key part is the Kanban system which coordinates production through a card-based system to achieve smooth, timely delivery of needed parts. The Toyota approach focuses on efficiency while also aiming for high quality and respecting workers.

Uploaded by

Neha Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CASE STUDIES

CASE I: TOYOTA PRODUCTION SYSTEM

Automotive Production

Forty years ago, Peter Drucker called it “the industrial revolution.” Today, automotive
production remains the world's largest producer of production. After World War I, Henry
Ford and General Motors ’Alfred Sloan moved the world through centuries of art
production (in the age of mass production.) As a result, the United States quickly took
control of the world economy.

Toyota Production System

After World War II, Eiji Toyoda and Taiichi Ohno at a Japanese car company in Japan
pioneered the concept of Toyota Production System. Japan's rise to its current economic
rise soon followed, as other companies and industries copied this remarkable program.
Manufacturers around the world are now trying to embrace the new system, but they are
experiencing difficulties.

The companies that started working well with this program were all based in one country
— Japan. However, many of the methods in existing mass production systems cause
great pain and cracking.

This article, I believe, is an attempt to explain the transition required from mass
production to transformation production called the Toyota production System. With a
focus on the global automotive industry, this article explains in simple terms, where the
Toyota Production System is, where it came from, how it really works, and how it can
spread to all corners of the globe. Western companies now understand Toyota Production
System, and at least one is in the process of launching it. a person. Globalization, as it
certainly spreads beyond the automotive industry, will change everything in almost every
industry-chosen company, type of work, corporate luck, and, ultimately, the destiny of
nations. What is the Toyota Production system? Perhaps the best way to describe this
new production system is to compare it with art production and mass production, the
other two ways people have planned to do things.

Production Methods

An art producer uses highly skilled workers with a simple but flexible tool to do exactly
what a customer asks for one thing at a time. Few exotic sports cars offer modern day
examples. We all love the concept of handicraft production, but the problem with it is
obvious: Handcrafted goods - like cars that only exist - are too expensive for most of us
to afford. Therefore, mass production was established in the early twentieth century as an
alternative.

A large manufacturer uses less skilled technicians to design products made by unskilled
or less skilled workers who are responsible for expensive, one-purpose machinery. This
produces products made with very high volume. Because the equipment is very
expensive and does not tolerate disruption, a large manufacturer keeps the normal
structure in production for as long as possible. The result: The customer earns less but
pays for the variety and versatility that many employees find boring and frustrating.

The automotive company Toyota, by comparison, combines the benefits of technology


and mass production, while avoiding the high costs of the past and the recent difficulties.
In this regard, they employ multi-skilled workforce at all levels of the organization and
use flexible and growing equipment to produce a wide range of products. The Toyota
Production system is also described as Lean Production because it uses the smallest in
terms of mass production - half the human effort in the factory, half the production area,
half the investment in tools, half hours of engineering to make a new product in half the
time. It also requires less than half the required amount of material on site, leads to fewer
errors, and produces a variety of ever-growing product types.

Perhaps the most striking difference between the weight loss program and Toyota lies in
its ultimate goals. Mass producers set a modest goal— “enough,” 1.3 production
methods, which translate into acceptable number of errors, acceptable level of inventory,
a limited range of certified products. Producers who rely on the other side put their ideas
clearly in perfection.

TOYOTA PRODUCTION SYSTEM

Basic Idea and framework

Toyota's production system is a complete production management technology developed


by the Japanese a hundred years after the opening of the modern world. The basic idea of
the program is to maintain a continuous flow of products in factories to adapt to changing
demands. The achievement of the flow of such production is called temporary
production, which means that the production of only the required units in the required
quantity at the time required. As a result, excess commodity prices and additional labor
will decrease naturally, thus achieving higher productivity targets and lowering costs.

The basic principle of Just-in-time production makes sense; that is, Toyota's production
system is built in accordance with the standard production management method. With the
realization of this concept, unnecessary medium and finished product repositories will be
removed. However, while cost reduction is the most important goal of the plan, it must
achieve three more goals in order to achieve its primary goal. Includes:

 Price control, enabling the system to adapt to daily and monthly fluctuations in
demand and quantity;
 Quality assurance, which ensures that each process, will only provide good units
for subsequent programs.

Human dignity must be cultivated while the system uses employees to achieve its cost
goals. It should be emphasized here that these three objectives cannot be achieved
independently or achieved independently without consultation or the primary goal of cost
reduction. All policies are issued in the same order; by production as the ultimate goal
and guiding concept, Toyota's production system aims to achieve each goal for which it is
designed. Before discussing in detail the content of the Toyota production system, an
overview of the program is in order. Outcomes or side effects and inputs or side of the
production process are shown.

The continuous flow of production, or adaptation to the demand for change in quantity
and diversity, is created by fulfilling two important concepts: Timely and Automation.
These two ideas are the cornerstones of the Toyota production system.

Timely intervention basically means producing the required units in the required quantity
over time. Automation (“Jidoka” in Japanese) can be freely translated as autonomous
error control. It supports Just-in-time by not allowing error units from the previous
process to enter and interrupt the next process. Two other important concepts in Toyota's
production system include the Flexible work force ("Shojinka" in Japanese) which means
the difference in the number of workers to demand change, and Creative thinking or
creative ideas ("soikufu"), or use workers' suggestions. To achieve these four ideas,
Toyota has developed the following programs and strategies:

 Kanban plan to keep production up to date


 Smooth adaptation to change
 Reducing set-up time to reduce production lead time
 Suspension for line measurement
 Machine design and multi-functional staff for flexible staff
 Small-scale improvement activities and a plan to reduce staffing and increase
work ethic.
 Visual control system to achieve the concept of Automation
 Effective Operational System to promote comprehensive quality control of the
company.

Just-in-Time Production

The concept of producing the required units in the required quantity in the required time
is explained by the short-term Just-in-time. Just getting in on time means, for example,
that while assembling car parts, the required type of small organizations of previous
processes must reach the product line in time by the required quantity. If Just-in-time is
available throughout the factory, then unnecessary supplies in the factory will be
completely eliminated, making stores or warehouses unnecessary. Acquisition costs will
be reduced, and capital gains will increase.

However, relying solely on a centralized editing process, which teaches production


schedules in all processes simultaneously, it is very difficult to see Just-in-time in all
automotive product processes, consisting of thousands of components. Therefore, in the
Toyota system, it is necessary to look at the production flow differently; in other words,
people of a particular process go to the previous process to withdraw the required units in
the required quantity at the required time. After that what the previous process has to do
is produce only a sufficient number of units to replace those that have been withdrawn.

Kanban System

Many people think that the Toyota production system is the Kanban system: this is
wrong. Toyota's production system is a product-based approach, and the Kanban system
is a Just-in-time production management system. In short, the Kanban system is an
information system that harmoniously controls the production rate throughout the
process. It is a tool to accomplish timely production. In this system what type of units and
how many units are needed are listed on a card similar to a tag called Kanban. Kanban is
sent to the people of the previous process from the next process. As a result, many
processes in plants are interconnected. This integration of factory processes allows for
better control of the required quantity of various products. The following supports the
Kanban program:

 Smooth production
 Reduction of set time setting for machine configuration
 Standardization of jobs n Improvement activities
 Autonamation
Kanban is usually a card inserted in a rectangular envelope. Two types are widely used:
Kanban Withdrawal and Production-ordering Kanban. Withdrawal Kanban defines the
type and quantity of the product, the next process that should withdraw from the previous
process, while Production-ordering Kanban specifies the type and quantity of the product,
the pre-production process.

Withdrawal Kanban indicates that the previous procedure that causes this part to break,
and the person in charge of the next part has to go to the B-2 of the fraudulent department
to withdraw the driving pins. The following process is mechanical. Kanban suggests that
the SB-8 machinery manufacturing process should produce a car-type crankshaft. The
manufactured crankshaft should be placed in store F26-18. These cards circulate within
Toyota's industries, between Toyota and its many cooperative companies, and within
corporate corporate firms. In this way, Kanban can provide details on the withdrawal and
production of value in order to achieve temporary production.

Suppose we make the products A, B and C in the assembly line. The components required
to produce these products are a and b produced by the previous machine line. Sections a
and b produced by the machine line are kept behind this line, and the order of Kanban
production line is attached to these sections. The carrier from the assembly line makes the
product A will go to the machine release line to withdraw the required part by
withdrawing Kanban. After that, in the store, he takes several boxes of this part as his
cannabis withdrawal and restricts the production that Kanban ordered attached to these
boxes. He then returned the boxes to his meeting line, and withdrew Kanban. At this
point, Kanban production orders were left at a machine line store showing the number of
units withdrawn. These Kanban will be the information sent to the machine line. Part a is
then produced in quantities directed by that amount of Kanban. At the click of a line, in
fact, parts a and b both are withdrawn, but these parts are produced according to a
separate order of Kanban order.
Autonamation

To see Just-in-Time completely, 100 percent good units should flow to the previous
process, and this flow should be rhythmic without interruption. Therefore, quality control
is so important that it must be combined with Just-in-time performance throughout the
Kanban system. Automation means building on how to create ways to prevent mass
production of incomplete work in machinery or product lines. Automation is not
automation, but an independent check of the abnormality in the process.

A stand-alone device is a device that attaches to an automatic stop device. In Toyota


factories, almost all machines are self-sufficient, so that in large quantities the defects can
be prevented and the mechanical breakdown checked automatically. The concept of
Autonamation is also expanded into product lines. If something unusual happens in a
product line, the user presses the stop button, thus stopping his entire line. For the
purpose of detecting problems in each process, an electric board, called Andon, which
shows the line of the line, hangs high in the factory to be easily seen by everyone. Andon
in the Toyota system plays an important role in helping these independent tests, and is a
typical example of Toyota's "Visual Control System".
CASE II: LATEST TRENDS IN FLEXIBLE MANUFACTURING
TECHNOLOGIES: A CASE STUDY OF TOYOTA'S MANUFACTURING
SYSTEM

The Flexible Production and Structure program is a emerging platform for technology
management across all organizations and Business in the manufacturing and services
sector, addressing the need for the Flexible Small and Medium Enterprise Production
sector to meet their strategic objectives and use business process management to utilize
these emerging technologies. It provides an overview of the various types of new
production technologies that are flexible in their domain and that contribute to the
creation of a business value.

1. Introduction to Lean Manufacturing: Industrial requirements

Today when we talk about production we are not limited to the final products / goods that
will be produced but our limits on understanding the word Production have increased by
many shoulders. Although the final product that comes out of the production process is
what we need, we have begun to focus on production-related factors that we can ensure
efficiency and effectiveness. And with the advent of this trend traditional production
methods have been left behind and are no longer valid now. Gone are the days when
Production Procedures were known only for Production, now they have emerged as the
most important asset to be handled in an organization. Finding the right strategies and
production is only one side of the money but assessing its potential and tapping areas
where financial savings and production time can be made is very important.

Since the mid-1960s, market competition has intensified and intensified and
organizational nutrition has become a herculean activity that keeps the minds of
competitors in mind. In the past, costs were a major concern after the Truth became a
priority. The complexity of the market has accelerated the delivery of services. And to
ensure the speed of delivery at the right level of quality and keep in mind the cost, which
is the only thing that could be developed into a production practice. This paradigm shift
has led to the implementation of the Flexible Manufacturing System (FMS), a production
system where there is a certain amount of flexibility that can be used in the event of a
change, whether predictable or unpredictable including machine flexibility and routing
flexibility.

2. New Trends in Flexible Manufacturing System Design - Comparison and


Development in Technological Front

The Industrial Flexible Manufacturing System (FMS) consists of robots, computer-


controlled machines, and price-control machines (CNCs), metal gadgets, work stations,
sensors, and other isolated components, for example, review equipment. The use of
robots in the business integration phase ensures a mixed fund of profits ranging from high
usage to high production capacity. Every Robotic cell or hub will be seen next to a design
object, for example, a vehicle or a targeted vehicle. The processing of each part or piece
of work will bind the other joints of the harps. The development of parts that start with
one harp to the next is done with materials that take care of the frame. At the end of the
partial management, the completed parts will be forwarded to the designated testing
center, and then released to the Flexible Manufacturing System. Flexible Production is a
complete conversion of the traditional Production Process into a Robot-controlled
Machine. Improvements have now provided a new way of responding to the final product
being produced. Executive software's used for the exchange of information and messages
for Machining Data, Communication Toolkit, Status Monitoring, and data reporting are
limited in size. Token Bus is a network that controls Token Ring, a local network (LAN
Technology) protocol based on Data Link Layer (DLL). It uses a special three-bite frame
called a token that travels around the ring. In practice, there are different types of FMS
available. There are many types of adaptations and it is indeed a great book dedicated to
competing typologies of various types of variables. However, from an organizational
point of view, all forms of flexibility present a similar challenge: efficiency requires a
well-organized organization with high levels of standardization, formalization, expertise,
management position, and staff; but these managerial factors hinder the liquid process of
the other adjustments required for flexibility; and organizations therefore deal with the
trade-offs between efficiency and flexibility.
FLEXIBLE MANUFACTURING SYSTEM CATEGORIZATION:

Operation

 Processing operation: transforms a work material from one state to another


 Assembly operation: joining of two or more component to create a new entity

Operational Machines (Count)

 Single machine cell: fully automated machine capable of unattended operations


for a time period longer than one machine cycle.
 Flexible manufacturing cell: two or three processing workstation and a part
handling Processing operation

Flexibility:

 Dedicated FMS: produce a particular variety of part styles


 Random order FMS: handle the substantial variations in part configurations

FLEXIBLE MANUFACTURING SYSTEM AND ITS SUBSYSTEMS:

Physical Subsystem

 Workstations: consists of NC machines, HMC/ VMCs, machine-tools, inspection


equipment’s etc.
 Storage retrieval systems: acts as a buffer during WIP (work-in-processes) and
holds devices.
 Material handling systems: consists of power vehicles, conveyers, automated
guided vehicles (AGVs) etc.

Control subsystem

 Control hardware: consists of mini and micro-computers, programmable logic


controllers, communication networks, switching devices and others peripheral
devices
 Control software: a set of files and programs that are used to control the physical
subsystems.

Today's business and industrial needs are not limited to conventional production using
simple Lathe or Cutting Bending operations. With the advent of terms such as Aero-
dynamicity and Material Cutting, manufacturers have become increasingly aware of their
practice. Of course, it is very difficult and not financially feasible to do all this in the way
of a highly efficient, inefficient Batch Production as all equipment must be stopped,
repaired, and the result needs to be tested before the next batch can be produced. For
continuous uninterrupted external operation, we need a Flexible Manufacturing System
governed by a single Computer and in line with Computer Integrated Manufacturing,
often abbreviated as CIM.

3. Flexibility vs. efficiency?

Contingency's vision is that organizations will be better off if they are tailored to their
core business. Specifically, organizations should use the form of repair if their work is
simple and stable and their purpose is efficiency, and they should adopt an organic form
when their work is complex and flexible and therefore their goal is therefore flexibility.
This concept of trade has been demonstrated in many other areas. General economic
theory places a trade between flexibility and average cost. Performance management
researchers have long argued that productivity and flexibility are a new trade in each
other in crop performance. In support of the important consensus of the tradeoff postulate
described in a book organization, they argue that the best choice is usually at the end or
on the other side of things, because a company that pursues both goals at the same time
will have to mix relevant organizational elements. That is way they would be “inside”.

4. Trade-off transition?

The evidence for the management of the tradeoff postulate, however, is very weak. Take,
for example, the flexibility of mixing a product. Some researchers say that while trade
may change, much of what we see when firms make significant improvements in a
number of ways at the same time achieves excellent performance. We conclude from
these perspectives and theoretical discussions that if there is a trade-off between
efficiency and flexibility among mid-industry players, at any time some firms are below
and some are above this tradeoff list. It is not difficult to see how firms can find
themselves below this line; but what do firms need to do to put it above it? More
interestingly, how can different firms change beyond the tradeoff that even their strongest
competitors get?

5. Toyota in the world

Founded in 1937, Toyota is the world's leading car manufacturer with a market share of
43% in Japan. Toyota vehicles are sold in 170 countries and territories around the world.
Toyota's total revenue for 2013 is 22,064,192.

6. Research context: Toyota case in the context of Flexible Production

Basic organizational research that excels in the performance and functioning of the
potential for power can improve our understanding of these processes and barriers being
considered and how the organizational environment influences its outcomes. NUMMI
(New United Motors Manufacturing Inc.) was one of those organizations previously
owned by General Motors which died a bit in the mid-1970s before TOYOTA managed
its operations and invested $ 100 million in 1984. In analyzing NUMMI's flexibility, we
focus on its major efforts to transform the model from the implementation of the Flexible
Manufacturing System to its innovation processes by overcoming challenges.

In the early 1970s, the automotive industry - was downgraded. While the foundation of
competition in the U.S. were previously the price and style of cosmetics, the new era
brought fierce competition from Japanese manufacturers who changed consumer
expectations in terms of price and quality of conformity while separating products
simultaneously with design and technology. So the products have changed very quickly
and the changes have been huge. Minor changes in the modeling model occur every year,
but the frequency of major model changes - as well as the size of the product and the
process of change associated with it - has increased. While the interval between major
models shifts to major U.S. car companies. The three had varied between four and eight
years, and competitive pressure led to a change in the four-year locking cycle adopted by
Japanese companies and their U.S. subsidiaries. These major model changes posed a
major challenge to the automotive assembly plant. Use of a flexible production system
Any between 60% and 90% of the 1500-2000 items collected in a vehicle were
rearranged, and as a result, most of both internal and supplier production processes were
reorganized. NUMMI operates at different levels of productivity and quality. In 1993, for
example, NUMMI took 18 hours to assemble a car, compared to an average of 22 hours
on a large sample of Big Three plants.

At the same time, NUMMI was more flexible than its Big Three counterparts. While
changes to the Ford, Chrysler, and GM model in 1994 included crop closures for 60, 75,
and 87 working days respectively, NUMMI was closed for only five days due to major
complex model changes in 1993 and 1995 during Lean Manufacturing System as a
business Process Renewal Strategy. While the standard Big Three plant usually took six
months to resume normal production estimates after a major model change, NUMMI
took less than four months to change in 1993 and less than three months to change in
1995. In addition, the quality of the Big Three plants tended to decline sharply when it
came into operation during 1987-1995, JD Power Initial Quality data shows that the
average number of problems in 100 domestic cars ranged from 135 per year before the
model change to 144 problems. in the year of model change. And the standard Big Three
plant has only returned to its normal quality level after a period of lasting from three
months to more than a year. As many model changes take place in August, J.D. Power
and Associates are critical to quality during the rise of new models.
1.1. Trade-offs: Key Findings

Based on the areas of compulsory research, we present our findings first, in this section,
and then present supporting evidence in the following three sections. Our results fall
under two broad themes: methods and context.

1.1.1. Flexible Trading Methods

First, NUMMI had more meta practices than traditional Big Three plants to direct
performance and increase the efficiency of unconventional operations. Second, NUMMI
has acquired significant trade by deducting profits from the transition to enriching general
manufacturing operations. Continuous development has been described as an important
additional function for production workers, indeed for all NUMMI employees.
Employees are encouraged to call ―andon cord‖ to indicate problems in their work and
leave the line if necessary. NUMMI executives put a premium on thinking in performing
routine tasks. The Pilot Team was a special unit of the novel, working with the
engineering change team, responsible for designing a new model operating system and
training staff for their new assignments. Meta-channels also indirectly promote greater
flexibility by facilitating the identification of incorrectly resolved solutions that represent
Opportunities to further increase flexibility. The direct result of the remaining three
processes was to increase the capacity of the new organization and thus become more
flexible. They also indirectly promote greater efficiency when these new skills are aimed
at improving continuous performance.

Contextual Features:

Our analysis of the NUMMI case highlighted two key aspects of this context: training
and trust. Training was essential. When people do not have the knowledge, skills, and
skills required for the effective use of the four basic processes, a tradeoff cannot be
eliminated. NUMMI has invested more than Big Three crops in staff training. Trust has
become the second most critical element of content. First of all, NUMMI culture has
invested heavily in consensus, in the flow of speech. Commitment to commitment but
supported by the strong voice of the union. Second, in many organizations managers and
subordinates do not trust each other's ability to fulfill their responsibilities. NUMMI's
investment has ensured high levels of support. NUMMI's great technology supplier has
promoted high levels of trust in suppliers. Third, all four can easily be undermined by the
lack of goal congruence goodwill trust, openness and concerns, expressed not only in the
organization of staff in small production teams, but also in the ethical relations between
departments and specific structures, as well as the relationship between employees and
suppliers. It has emerged in both forms of human interaction and system. As well as three
types of trust, NUMMI It was based on stakeholder loyalty, competence, and integration
of NUMMI's management system, its supplier relations systems, and its labor relations
system. By making its success a slave to the interests of workers, NUMMI management
has committed itself not to exploit the potential for harm to workers.

1.1.2. Toyota Production System

TOYOTA's production control system has been developed based on many years of
continuous development, with the aim of "ordering customers to order faster and more
efficiently, delivering cars faster. Toyota Production System (TPS) has developed
NUMMI's less than four major operating systems.

TPS Principles:

 Just-in-time production,

 The team concept,

 The jidoka concept of quality focus and

 Work standard, Kaizen


The Just-in-time process produces only what is needed with a sequential process in
continuous flow. By eliminating NUMMI buffers, problems and issues were quickly
identified and identified. NUMMI workers are divided into four to six groups, each with
a union member as Team Leader. Tasks were raised modestly: work cycles remained at
the level of the sector for about 60 seconds, but Group Members often rotated activities
within their group. This not only eliminated boredom and ergonomic difficulties, but
gave employees a broader understanding of the production system. Tasks are also
enriched with dignity, by providing production workers with a certain quality
responsibility, minimal repair work, and private house maintenance. Team leaders acted
primarily as guiding hands, with dignity.

The Jidoka TPS process works on the principle that when a problem arises, the machines
immediately stop to block the defective products being produced. To avoid contamination
and make it easier to find the cause, NUMMI aims to capture the incomplete portion as
soon as possible by thinking about Jidoka. Kaizen’s fourth major idea, which aims at
further development was NUMMI’s approach to scientific management in which Team
members and Team Leaders identified the appropriate process for each task. NUMMI
had a different approach compared to the other three Big colleagues for photographing
staff. About 1800 suggestions were made by staff and team members during the 1992
proposal process. The previous suggestions became a new drug, but only until the cycle
was revived by the next proposal.

1.1.3. Toyota Management System

NUMMI's implementation of the Toyota Production System was strengthened by


management policies that promoted employee commitment and capacity building. One
set of policies to strengthen commitment includes relations with the union. NUMMI and
the UAW have used a concerted approach to resolving many of the issues raised in GM-
Fremont's administration. In addition, the collective bargaining agreement promised a
measure of job security. Effective company efforts to avoid retrenchment during the
1980's greatly boosted employees' confidence in the company's commitment to non-
retrenchment. Kaizen's work was promoted by a profit-sharing system that rewards all
employees with a wide range of plant quality and efficiency: since its launch in 1990, it
paid $ 645 in 1992, $ 733 in 1993, $ 1,285 in 1994, $ 1,130 in 1995, and $ 1,316 in 1996.
NUMMI has also followed a number of skills building approaches.

1.1.4. NUMMI’s Model Transformation Process

For NUMMI, unlike the traditional American system, previous interactions between
design, engineering, and production workers allowed timely detection of many
inaccuracies. It has also allowed a lot of ingenuity to improve the quality, with aggressive
efforts in value engineering. The purpose of this partnership - indeed, the magnitude of
the MIsecret‖ to NUMMI model model according to Toyota's chief executive - was a
strong certificate before the start of the work ―man [read: staff], equipment, materials
and methods are able to perform their intended functions. This certificate not only
reduced the number of changes required after the start of production, but the certificate
also created standards that reduce the need for (cost) to adapt collaboratively in
determining any recent changes that need to be made. NUMMI has thus benefited greatly
from pre-loading that is, converting it to earlier stages than the Big Three. The Big Three
traditional management model assumes that the transformation process can be managed
sequentially, depending on the standards, systems, and plans to ensure departmental co-
operation. NUMMI is looking at a higher level of product integration / process
integration, so they interpret the transformation process as integrating more uncertainty
than the Big Three.

1.1.4.1. Pilot Production

Five months before the start of the product, NUMMI employees built the first set of 25
driving vehicles. This first pilot building focuses on engineering issues. It was therefore
made offline in the driver area, and relied heavily on components that were customized
by suppliers. The benefits for a regular line production pilot and regular production staff
are enormous: far more problems can be identified than would be possible in the
construction of an offline pilot. NUMMI's management of its drivers offers them three
distinct contrasts with the traditional Big Three tradition. The three major plants
generally did not make online pilots work on existing plants; they waited until the old
line was closed and new equipment was installed.

This is too late to identify and resolve issues. Second, U.S. firms are traditionally driven
by cost concerns and have been under less pressure to accelerate conversion; as a result,
they demolished most of their production workers during the long closure of plants,
remembering them continuously as production was fast, and training them only when
they returned to the plant. Third, these returning workers were trained by a small group of
workers who did the construction of the first aircraft, while at NUMMI, Team Leaders
and Team Leaders had the main training task.

1.1.4.2. Acceleration Period

At the expense of extra time to get driver training and construction, NUMMI produced a
full schedule of the old model car for up to a week before the start of production of the
new model. On August 7, 1992, NUMMI stopped producing one week for change.
During the week, the Air Force team worked with management, engineers, and
maintenance staff to set up this new line. Production workers were required - as they
were warned a year in advance - to use the week of their vacation time. When operations
resumed on August 14, Team Members returned to new jobs. In contrast, the traditional
acceleration of the Big Three was severely hampered by information gaps and conflicts
of interest that marked the relationship between workers on the one hand and industrial
engineers and managers on the other.
1.1.4.3. Problems in acceleration

The new line took only 77 days to accelerate full production. This was much faster than
normal found in Big Three plants, but not as fast as NUMMI's original 60-day plan.
Acceleration was required to overcome three sets of unexpected problems. First, some
new technologies introduced with this change — especially the door-off conveyor and
panel-sub-assembly line - had dropped more often than expected. Second, some parts did
not arrive on time. NUMMI has changed some of its supply chain, incorporating specific
deliveries to Chicago and has taken over multiple deliveries; errors in planning and
implementing these changes have led to delays in service delivery. Third, problems of
inequality and performance 'arose, in part due to the weakness of some American
suppliers.

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