Module 4.

Production System
Production System: Meaning, Types- Batch and Continuous Production, TPS: Introduction, Overview of
Toyota Production Systems – Focused Areas, Techniques: 5S, JIT, JIDOKA, KANBAN, KAIZEN,
POKAYOKE, Toyota Production Systems.

Production System

Production System Meaning

• Production system, any of the methods used in industry to create goods and services from
various resources.
• All production systems said to be “transformation processes”
• Processes that transform resources into useful goods and services.

Principles of Production System

• Its transformation processes
• Process uses labour, capital and space.
• Economists call above resources as “factors of production.”
• Production managers referred them as “five M’s” – Men, Machines, Methods, Materials, and
Money.
• Production system further characterized by flows:
• Physical flow of materials (work in process, finished goods)
• Flow of information
• Inevitable paperwork
• The physical flows are subject to the constraints of the capacity of production system.
• The management of information flows,
 • The planning and control of the system to achieve acceptable outputs, is an important task of
the production manager.
• The quality of a product, measured against some objective standard, includes appearance,
1. Performance characteristics,
2. Durability,
3. Serviceability, and
4. Physical characteristics;
5. Timeliness of delivery; cost;
6. Appropriateness of documentation and supporting materials.

Types- Batch and Continuous Production

What is Batch Production?

• Is a production methodology in which products are manufactured in groups called batches
rather than in a continuous fashion.
• A group or set or batch of products are made, and the same machinery is used to make the next
batch of goods.
• Batch production is usually used for making group orders, and not used for mass production.

Importance of Batch Production

• Batch production is one of the three primary forms of manufacturing,
• with Job and Flow being the others.
• Job system is used in cases where high level of customization is required
• Flow is used where the same product is to be mass produced,
• Batch production system offers flexibility in terms of these two factors.
• It allows customization to some extent in order to meet specific customer needs while ensuring
higher productivity
Characteristics of Batch Production System
1. Reuse
• The same machinery can be re-utilized for producing another batch of products which may be
same or can have minor changes like color, size or shape
2. Group Customizations
• Customizations can be done at a group level in batch production. In batch production, the
customization related to minor changes can be done in groups to produce batches as per
production plan and market demand.
• These group customizations make the batch production a more viable option and responsive to
changing demands.
3. Batch Size
• Parts or products are made in smaller batches. These smaller batches are beneficial because the
time taken is less and also the quality control can be done in a more efficient way.
4. Cost Effective
• It is cost effective as compared to every customized job production product. Batch production
because of its reusability and better quality control is a more cost efficient method as compared
to continuous manufacturing.
Examples of Batch Production
1. Batch production techniques are generally used in Baking or meal preparation.
Consider a bakery using its over to bake 50 white breads in the first batch.
Then the same oven can be used to bake 50 brown breads. Also, after this 30 buns can be baked.
Hence the same machinery is used for making different group of products in batches.

2. Manufacturing clothes also use batch production.

Consider a t-shirt manufacturing company. In its first batch, it makes 100 blue t-shirts, followed by 100
green & 100 red t-shirts in the subsequent batches.
All these t-shirts are made using the same machinery, just by tweaking the colors & machinery.

Continuous Production

Continuous production is a type of production system in which materials being processed are
continuously in motion.
Continuous production, like mass production, is a flow production method.
A manufacturing method in which the materials (dry bulk or fluids) that are being processed are
continuously in motion, undergoing mechanical, thermal, and/or chemical treatment.
• During continuous processing, distinct parts flow from one machine to the next to make a
finished product.
• There are no interruptions between the stages of production.
• It’s a very organized system involving advanced machinery and producing high volumes.
• Continuous production is characterized by:
– Equipment dedicated to specific tasks
– Automated material handling
– Identical products
– Use of specialized machinery and tools
• Companies must have high capital to run a continuous production operation.
• Continuous production requires a large floor space and advanced machinery.

Continuous production Advantages

• Standardization: Continuous production is a carefully monitored, consistent process that uses
advanced machinery to produce standardized goods.
• Higher production rate: Continuous production never stops running. Without the need to shut
down or reset machinery, manufacturers can produce large quantities in less time than a factory
that only runs one or two shifts
• Increased worker safety: It’s an automatic process that doesn’t put workers in strenuous or
dangerous situations.
• Economies of scale: Economies of scale refers to a decrease in overall costs due to increased
production.
Disadvantages of Continuous Production
• Requires a high investment
• Lack of flexibility: Continuous production plants are usually designed to produce a single
product
 • Products are the same: Continuous production produces identical items. More consumers want
custom or personalized products
• Requires extremely careful planning and design: Manufacturers must work with engineers and
other design specialists to very carefully. Any failure in equipment in an assembly line stops the
entire manufacturing process.
• May lead to excess inventory: Continuous production creates high volumes.
example
Paper Manufacturers
• Paper manufacturing is a complex process that involves various machines and processes to turn
logs into paper. First, logs are put through machines to remove the bark and then ground into
wood chips. Wood chips are then cooked in a special solution inside a large vat called a digester.
A digester is designed to handle large volumes and run continuously. As it runs, it efficiently
turns wood chips into a pulp. The pulp is then pumped into automated machines and moves
through rollers to be pressed and dried.
• The paper industry, like other industries that use continuous manufacturing, needs to be able to
produce large quantities of standardized products.

Here are a few other examples of industries that may use continuous production methods in their
facility:
• Steel
• Chemicals
• Glass
• Electronics
• Automobiles

Toyota Production Systems (TPS)

• The Toyota Production System (TPS) is an integrated socio-technical system
• Developed by Toyota (automotive manufacturer)
• To efficiently organize manufacturing and logistics, including the interaction with suppliers and
customers, to minimize cost and waste.
• Nampachi Hayashi claims that TPS should have been called “Toyota Process Development
System.”
• Most uses of the word “Lean” are actually referring to TPS.
Overview of TPS

• The philosophy is to work intelligently and eliminate waste so that only minimal inventory is
needed.
• This increases cash flow and reduces physical space needs
• Makes it easier to deliver the required results smoothly through internal processes one piece at
a time (single piece flow) to the end customer.
• The system is also known by the more generic “lean manufacturing” and “just-in-time
production” or “JIT Manufacturing.”
• The majority of the system was originally developed beginning in 1948 through 1975,
• Major influences from Taiichi Ohno, Eiji Toyoda, and Shigeo Shingo.
 • A visit by Eiji Toyoda (an engineer and member of the founding family of Toyota) to the River
Rouge Ford Plant in 1950 sparked the creation of the Toyota Production System.
• He famously stated to his colleagues at Toyota upon his return that “there are some possibilities
to improve the production system”.
The purpose is to identify and reduce three primary obstacles or deviations from optimal allocation
of resources within the system:
• Overburden (muri)
• Inconsistency (mura)
• Waste (muda)

TPS is grounded on two main conceptual pillars:

• Just-in-time – meaning “Making only what is needed, only when it is needed, and only in the
amount that is needed”

• Jidoka – (Autonomation) meaning “Automation with a human touch”

The underlying principles of TPS (called the Toyota Way)

• Continuous improvement
– Challenge
• We form a long-term vision, meeting challenges with courage and creativity to
realize our dreams.
– Kaizen
• We improve our business operations continuously, always driving for innovation
and evolution.
– Genchi Genbutsu
• Go to the source (gemba) to find the facts to make correct decisions.
• Respect for people
– Respect
• We respect others, make every effort to understand each other, take
responsibility and do our best to build mutual trust.
– Teamwork
• We stimulate personal and professional growth, share the opportunities of
development and maximize individual and team performance.
TPS Techniques
5S
• Seiri (Sort)
• Seiton (Straighten, Set)
• Seiso (Shine, Sweep)
• Seiketsu (Standardize)
• Shitsuke (Sustain)
Just-In-Time
• The just-in-time (JIT) inventory system is a management strategy that minimizes inventory and
increases efficiency.
• Just-in-time manufacturing is also known as the Toyota Production System (TPS) because the
car manufacturer Toyota adopted the system in the 1970s
 • Inventory system is a management strategy that aligns raw-material orders from suppliers
directly with production schedules.
• Companies employ this inventory strategy to increase efficiency and decrease waste by
receiving goods only as they need them for the production process, which reduces inventory
costs.
• This method requires producers to forecast demand accurately.
Benefits of JIT
1. Reduction in inventory
2. improved quality
3. Reduced space requirements
4. Shorter lead times
5. Lower production costs
6. Increased productivity
7. Increased machine utilization
8. Greater flexibility
How Does Just-in-Time Inventory Work
• Minimizes inventory and increases efficiency.
• Cuts inventory costs because manufacturers receive materials and parts as needed for
production and do not have to pay storage costs.
• Manufacturers are also not left with unwanted inventory if an order is canceled or not fulfilled.
• One example of a JIT inventory system is a car manufacturer that operates with low inventory
levels but heavily relies on its supply chain to deliver the parts it requires to build cars on an as-
needed basis.
• Consequently, the manufacturer orders the parts required to assemble the vehicles only after an
order is received.

Advantages of JIT

• JIT inventory systems have several advantages over traditional models.

• Production runs are short, which means that manufacturers can quickly move from one product
to another.
• This method reduces costs by minimizing warehouse needs.
• Companies also spend less money on raw materials because they buy just enough resources to
make the ordered products and no more.
Disadvantages of JIT
• The disadvantages of JIT inventory systems involve potential disruptions in the supply chain.
• If a raw-materials supplier has a breakdown and cannot deliver the goods promptly, this could
conceivably stall the entire production line.
• A sudden unexpected order for goods may delay the delivery of finished products to end clients.
Advantages and Disadvantages of JIT

History of Jidoka
• Machines are built with the capacity to identify problems and stop when something goes wrong.
• We have Jidoka to thank for that.
• This concept originated with an automatic loom invented by Sakichi Toyoda in the late 19th
century.
• Toyoda’s machine would stop when a thread broke.
• When the machine stopped, a person would step in and work to find the root cause of the
problem before any other defective products were made.

• Jidoka sometimes is called “autonomation,” “intelligent automation,” “automation with a

human touch” or “automation with human intelligence.”
• It provides machines and operators the ability to detect when an abnormal condition has
occurred and immediately stop work when a problem first occurs.
• This enables operations to build in quality at each process by eliminating the root causes of
defects.
• It also increases work efficiency by separating workers and machines
• Eliminates the need for operators to continuously watch machines, as they can handle several
machines at once.
JIDOKA: follows four principles
• Detect the abnormality
• Stop
• Fix or correct the immediate condition
• Investigate the root cause and install a countermeasure
Kanban board

• A Kanban board is a visualization tool that enables you to optimize the flow of your work.
• Using a Kanban board to manage work across your team or organization can:
1. Promote focus
2. Boost productivity
3. Increase visibility
Why Kanban Board
• A Kanban board offers a way to visually manage your work.

• A well-designed Kanban board can consolidate all the information in disparate tools, helping you
save time, stay focused, and get more done.

What are Kanban Boards?

Kanban boards are a shared space where teams and organizations can visually manage their work.

• Harnessing our brains’ innate preference for consuming visual information,

• Kanban boards help teams:
1. See work in progress
2. Streamline their processes
3. Keep work flowing from “To Do” to “Done”

Who Uses Kanban Boards?

• First embraced by IT managers and software development teams,
• Kanban boards have been widely adopted by all types of teams and organizations.
• Kanban boards are especially popular among teams who practice Lean and Agile
• They enable the kind of visibility and transparency necessary to achieve business agility.
Team that follows a repeatable process can use Kanban boards to:
1. Clarify their process
2. Improve their workflow
3. Work more efficiently
Reasons for Using Kanban Boards

Look at a team Kanban board and get a sense of

• How many work items are in progress

• Where each of those work items are in their process
• How many items have been completed
• Which team members are assigned to which items
• Where bottlenecks might exist in the process
• If any items are blocked
• If any items are past their planned due date

What Is a Kanban Card?

A Kanban card represents an individual work item, which allows teams to view important work
information.
The Purpose of Kanban Cards
• Is to represent a work item and communicate its status as it moves through the workflow.
• Teams track work in one place, and communicate status in another
• By simply moving a Kanban card from one step (vertical lane) to the next
• A team member communicates to their team where that work item is in the process, without
any additional work.
Kanban cards can help teams
• Gain a quick understanding of work item details
 • Facilitate handoffs between team members as the work progresses through different stages in
the team’s process
• Document and communicate critical information about each work item
• Record important work attributes and metrics that teams can later use to improve their
workflow

Face of a Kanban Card

• A unique identifier or title
• Who is assigned to the work
• Due dates
• Work type (often communicated by the color of the card)
• Estimated effort (communicated through numeric “T-shirt” sizing, or other methods)
Back of a Kanban Card
• Card description – What exactly is involved in this work? What is the goal?
• Project scope – What is the definition of “done?” What is or is not included in this work?
• Attachments and links – Project briefs, templates, useful resources, drafts, and key deliverables
• Comments / comment history – What have team members said about the project so far?
• Subtasks – What are the individual tasks involved in completing this card?
Other Benefits of Kanban Cards
• Start date
• Blocked days
• Finish date
• Lead time
 • Cycle time
• Throughput
KAIZEN

• From the Japanese words “kai-” which means “change” and “-zen” which means “good.”
• The popular meaning from Toyota is “continuous improvement” or “small incremental
improvements” of all areas of a company, not just manufacturing.
• Kaizen means all personnel are expected to stop their work when they encounter any
abnormality and, along with their supervisor, suggest an improvement to resolve the
abnormality.
What is Kaizen?
• Kaizen is an approach to creating continuous improvement based on the idea that small,
ongoing positive changes can reap significant improvements.
• Typically, it is based on cooperation and commitment.
• Kaizen is core to lean manufacturing and the Toyota Way.
• It was developed in the manufacturing sector to lower defects, eliminate waste, boost
productivity, encourage worker purpose and accountability and promote innovation.
• It has been adopted in many other industries, including healthcare.
• It can be applied to any area of business and even on the individual level.
• Kaizen can use a number of approaches and tools, such as value stream mapping --
• (which documents, analyzes and improves information or material flows required to produce a
product or service)
• Total Quality Management -- which is a management framework that enlists workers at all levels
to focus on quality improvements.
10 principles of Kaizen
1. Let go of assumptions.
2. Be proactive about solving problems.
3. Don't accept the status quo.
4. Let go of perfectionism and take an attitude of iterative, adaptive change.
5. Look for solutions as you find mistakes.
6. Create an environment in which everyone feels empowered to contribute.
7. Don't accept the obvious issue; instead, ask "why" five times to get to the root cause.
8. Cull information and opinions from multiple people.
9. Use creativity to find low-cost, small improvements.
10. Never stop improving.
How Kaizen works
• Kaizen involves identifying issues and opportunities, creating solutions and rolling them out
• Then cycling through the process again for inadequately addressed issues and problems.
• A cycle made up of seven steps can be implemented for continuous improvement and can
provide a systematic method for executing this process.
This systematic method includes the following steps:
• Get employees involved. Seek the involvement of employees, including soliciting their help in
identifying issues and problems. Doing so creates buy-in for change. Often, this is organized as
specific groups of individuals charged with gathering and relaying information from a wider
group of employees.
• Find problems. Using widespread feedback from all employees, gather a list of problems and
potential opportunities. Create a list if there are many issues.
• Create a solution. Encourage employees to offer creative solutions, with all manner of ideas
encouraged. Pick a winning solution or solutions from the ideas presented.
• Test the solution. Implement the winning solution chosen above, with everyone participating in
the rollout. Create pilot programs or take other small steps to test out the solution.
• Analyze the results. At various intervals, check progress, with specific plans for who will be the
point of contact and how best to keep ground-level workers engaged. Determine how successful
the change has been.
• If results are positive, adopt the solution throughout the organization.
• These seven steps should be repeated on an ongoing basis, with new solutions tested where
appropriate or new lists of problems tackled.
Additional approaches to the Kaizen cycle exist: PDCA. (Shewhart cycle or Deming cycle)
Plan, Do, Check and Act
Kaizen advantages
• Kaizen's focus on gradual improvement can create a gentler approach.
• Kaizen encourages scrutiny of processes so that mistakes and waste are reduced.
• With fewer errors, oversight and inspection needs are minimized.
• Employee morale improves because Kaizen encourages a sense of value and purpose.
• Teamwork increases as employees think beyond the specific issues of their department.
• Client focus expands as employees become more aware of customer requirements.
• Systems are in place to ensure improvements are encouraged both in the short and long terms.
Kaizen disadvantages
• Companies with cultures of territorialism and closed communication may first need to focus on
cultural changes to create a receptive environment.
• Short-term Kaizen events may create a burst of excitement that is shallow and short-lived and,
therefore, is not sustained.
POKAYOKE
• The term Poka-Yoke (poh-kah yoh-keh) was coined in Japan during the 1960s by Shigeo Shingo,
an industrial engineer at Toyota.
• Shingo also created and formalized Zero Quality Control – a combination of Poka-Yoke
techniques to correct possible defects and source inspection to prevent defects.
• Poka-Yoke means ‘mistake-proofing’ or more literally – avoiding (yokeru) inadvertent errors
(poka).
• Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to
human errors as they occur.
• The washing machine that does not start if the door is not closed properly to prevent flooding.
Why is Poka-Yoke Important?
• They help people and processes work right the first time, which makes mistakes impossible to
happen.
• Improves the quality and reliability of products and processes by eliminating defects.
• This approach to production fits perfectly the culture of continuous improvement, which is also
part of the Lean management arsenal.
When and How to Use it?
• Processing error: Process operation missed or not performed per the standard operating
procedure.
• Setup error: Using the wrong tooling or setting machine adjustments incorrectly.
• Missing part: Not all parts are included in the assembly, welding, or other processes.
• Improper part/item: Wrong part used in the process.
• Operations error: Carrying out an operation incorrectly; having the incorrect version of the
specification.
• Measurement error: Errors in machine adjustment, test measurement, or dimensions of a part
coming in from a supplier.
How to apply POKAYOKE
• Why did your car stop?
– Because it ran out of gas.
• Why did it run out of gas?
– Because I didn’t buy any gas on my way to work.
• Why didn’t you buy any gas this morning?
– Because I didn’t have any money.
• Why didn’t you have any money?
– Because I lost it all last night in a poker game.
• Why did you lose your money in last night’s poker game?
– Because I’m not very good at “bluffing” when I don’t have a good hand