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The Toyota economic system : how leaders create true prosperity through financial congruency, dignity of work, and environmental stewardship
- Author / Creator
- Available as
- Online
- Summary
-
This book analyzes the purpose and relationship between the different elements of the Toyota Production System (TPS) and how they add up to a system that brings engineering and managerial solutions...
This book analyzes the purpose and relationship between the different elements of the Toyota Production System (TPS) and how they add up to a system that brings engineering and managerial solutions to businesses and society.
Details
- Creator
- Olivier Larue
- Format
- Books
- Language
- English
- Publication
-
- Abingdon, England : Routledge, [2023]
- ©2023
- Physical Details
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- 1 online resource (291 pages)
- ISBNs
- 9781003348627, 1003348629, 9781000900903, 1000900908, 9781003348627, 1003348629, 1032391537
- Includes index.
- Cover -- Half Title -- Title Page -- Copyright Page -- Table of Contents -- Acknowledgments -- About the author -- Introduction -- Section 1 Philosophy, principles, and goals: Beyond tradeoffs by aiming for total instead of individual efficiency -- Chapter 1 Production systems' contribution to human progress -- Initial condition: Craftsmanship -- Current condition: The great mass production system -- Inflexibility in producing customized goods makes profit conflict with cash flow -- Dehumanization of work -- Singular dependence on economic growth and environmental pollution (Myopic dependency of singular performance metrics) -- Target condition: The Toyota Production System -- Technical innovation: Reconcile profit with cash flow -- Labor relation innovation: Re-humanization of work -- Economic innovation: Congruence between economic growth and environmental stewardship -- A new economy paradigm -- Chapter 2 Toyota Production System (TPS) as a system -- The three elements of TPS: What TPS does -- The philosophical element -- Customer focus philosophy -- "People are the most important asset" philosophy -- Kaizen philosophy -- Shop floor focus philosophy -- The technical element -- The managerial element (expertise with a framework) -- The unity of the three elements displayed in the house of TPS -- The house of TPS: A holistic framework from which to think -- The roof of the house: The goals of TPS -- The pillars of the house: The technical methods of TPS -- The foundation of the house: The managerial methods of TPS -- The house of TPS as a system -- Section 2 Technical innovation: Congruency Between profit and Cash Flow -- Chapter 3 As a system of economies of scale based on individual efficiency the traditional mass production system has inherent contradictions -- Batch of conveyance to reduce cost conflicts with quality and lead-time
- Batch of production to reduce cost conflicts with quality and lead-time -- Batch processing means relying on a long-range forecast -- Long lead-time of supply against production starts -- Long lead-time against equipment design -- Trading-offs factors instead of innovating -- Chapter 4 The Toyota Production System and its inherent harmony: Approach to reconciling income and cash flow financial statements -- Stop and notify, the first element of jidoka -- Stop-and-notify -- Stop-and-notify via poka-yoke or failsafe process -- Stop-and-notify via Andon -- Final manual inspection station -- Stop-and-notify: Conclusion -- Continuous flow as the first element of Just-in-Time -- The mass production system: Isolated and functionally organized assets and processes -- The issue with terminology -- Lead-time -- Clarification of terms and process characteristics -- Process design for continuous flow -- Continuous flow requires each process to have the same cycle time -- Continuous flow and proximity of processes -- Continuous flow and eliminating changeover time between product variety -- Summary of process design for continuous flow -- Design for a batch size of production as a result of changeover time and cost -- The economic order quantity (EOQ) -- Lot size calculation based on demand -- Summary of batch size of production -- Production lead-time versus the rate of supply under different conditions -- Discrete mass production system conditions -- Continuous flow conditions -- Conclusion of production lead-time calculation -- Summary of continuous flow -- Takt time is a new datum with which to calculate and organize resources -- Calculation for labor needed -- Calculation for machine and equipment needed -- Calculation for material and component inventory needed -- The difference between takt time and the rate of pull -- Takt time summary
- Separate Man and machine work -- Automation and production lead-time -- Automation and lead-time of equipment design -- Automation to cut the cost of labor rather than boost the value of labor -- One worker, one machine -- Conclusion of "separate man from machine work" -- Pull system, the second element of Just-in-Time -- Elements of the pull system -- Authorization to work, produce, and convey -- The store and the stock -- Types of pull system -- A-type or replenishment pull system -- B-type or sequential pull system -- C-type (combined) pull system -- Practical application of the pull system -- Pull system conclusion -- Jidoka and Just-in-Time conclusion -- Heijunka: Leveling work by varieties -- Heijunka and cash flow -- Heijunka and efficiency of assets -- Heijunka and machine efficiency -- Heijunka and labor efficiency -- Heijunka illustration -- A new look at labor requirements -- A new look at machine and equipment capacity requirements -- A new look at inventory requirements between the component process and the assembly line -- A new look at labor requirements -- Building the heijunka sequence -- How many orders to consider for the sequence -- Building the heijunka sequence -- Conclusion to heijunka -- Standardized work -- Purpose of work standards -- Purpose and benefits of standardized work -- Standardized work as an instrument -- Approach to implementing standardized work -- Role of the team leader -- Role of the environment -- Elements of standardized work -- Sequence of operation -- Takt time -- Standard in-process stock -- Different types of standardized work based on varying cycle times -- Type one standardized work -- Type two standardized work -- Type three standardized work -- Standardized work forms -- Machine capacity sheet -- Standardized work chart -- Standardized work combination table -- Conclusion on standardized work
- Heijunka and standardized work: Craftsmanship in an industrial setting -- Conclusion on the technical element of TPS -- Note -- Section 3 Managerial innovation: Industrial craftsmanship by reconciling the creative nature of people with the mundane requirements of industrial work -- Chapter 5 Management based on a vision of the ideal-true north -- The purpose of the ideal -- Application of the ideal -- Focused attention -- Grasping the gap between the current and the target condition -- Images of the ideal -- Characteristic of the ideal condition -- Technical characteristics of the ideal condition -- Zero defect (highest quality) -- 100% value-added, (lowest cost) -- On-demand and in sequence, (lowers cost and shortest lead-time) -- One-by-one (shortest lead-time) -- Human characteristics of the ideal condition -- Physical safety -- Mental safety -- Human development -- Note -- Chapter 6 Kaizen, a scientific problem-solving activity -- Observation (plan) -- Using our senses -- Grasping point-of-cause and root-cause deeply -- Cultivate expertise at all levels -- Hypothesizing (do) -- Testing (check) -- Draw a conclusion (act) -- Chapter 7 Institutionalization of problem-solving by developing experts: Learning problem-solving and solving learning-problems -- Humility -- Management shares in success and failure with others -- No problem is too small to solve -- Confirm by yourself -- "Go-see" -- Reach for the standard and the standardized work -- An intimate relationship between learning new tasks and scientific problem-solving -- Progressive learning -- Types of excess capacity to mitigate learning risk -- Teamwork -- Demonstrate results by realizing true efficiencies -- Chapter 8 Practical principle-based performance indicators -- Managing by total efficiency through the elimination of unevenness, overburden, and waste to achieve true efficiency
- Total versus individual (independent) efficiency -- Eliminating waste, unevenness, and overburden versus forcing work -- Waste or "Muda" -- Waste of overproduction -- Waste of waiting -- Waste in conveyance -- Waste in processing -- Waste of inventory -- Waste of motion -- Waste of correction -- Unevenness or "Mura" -- Equal capacity -- Simple flow -- Bends -- Tributaries -- Kanban size -- Overburden or "Muri" -- Safety -- Cycle time -- Overtime -- Mental burden -- Machine overburden -- True versus apparent efficiency -- Congruency between profit and cash flow -- Re-humanization of labor -- Economic and environmental benefits -- Summary of managing efficiency -- TPS metrics: Measuring and managing the 4M of the shop floor -- Rate of operation -- Overtime -- Less expensive, more reliable, and flexible equipment -- Operational availability: A keystone operational measure -- What counts as output toward operational availability? -- Late delivery doesn't count as output toward operational availability -- Relationship between RO and OA -- Labor efficiency -- ∑ cycle time also called total cycle time -- Demand -- Number of people and time worked -- Lead-time/inventory -- First design and specify the process and then measure the performance -- Separate rate of operation from operational availability -- Notification and categorization of performance indicators -- Notification of ahead or behind schedule? -- Categorization of behind-schedule conditions -- People -- Best repeatable manual cycle time too long? -- Manual cycle time fluctuates -- Machines and equipment -- Machine cycle time too long -- Unplanned downtime -- Quality defects and categorization -- Categorization of ahead of schedule condition -- Chapter 9 Managing human development with "A4 and A3"
- Using material and information flow A3 to manage total efficiency and achieve true efficiency through the elimination of unevenness, overburden, and waste