Description
The issue of Rise in number of Camry’s with defective seats, leading to a reduced run ratio at the TMM Georgetown Plant
Toyota Motor Manufacturing Inc., USA
The Problem__________________
• Rise in number of Camry’s with defective seats, leading to a reduced run ratio at the TMM Georgetown Plant.
The Reason___________________
• Product proliferation
– From 3 styles x 4 colors, to 36 different seat styles
– Sequential pull with a 57 sec line cycle time means response time for KFS to come up with the next seat is minimal
– Greater variety of styles and heijunka concept means more frequent changes in seat line setup
The Impact___________________
• Loss due to andon pulls:
Work stations Line cycle time Team members Payment rate OT Rate Team Leaders Leader Rate Leader OT Rate Assistant Managers Group Leaders Regular Shift Unpaid lunch time Paid breaks Paid time/shift Working time/shift => Throughput 95% Run ratio 85% Run ratio Production loss Cost of OT Time required to cover Production loss OT Cost Incurred 353 57 seconds 769 17 $/hr 25.5 $/hr 154 18.36 $/hr 27.54 $/hr 10 46 525 minutes 45 minutes 30 minutes 8 hours 450 minutes 27000 seconds 474 cars/shift 450 cars/shift 403 cars/shift 47 cars/shift 19923.25 $/hr 2700 seconds 0.75 hours 14942.44 $/shift
So is andon a bad thing? No. Jidoka concept only assures better quality. The problem cannot be solved by reducing andon pulls. It can be solved by eliminating the cause behind the pulls.
The Root Cause________________
• TMM did not internalize the TPS philosophy. It only emulated the systems from Toyota, Japan. • KFS balanced capacity to meet TMM Production. It did not have the TPS implementation to respond to the product proliferation. It only learnt system from the Japanese seat suppliers, not the underlying philosophy.
• Not allowing the seat problem to be solved in real time but just tagging it for storage in the rework area is a gross violation of the jidoka concept.
The Snowballing Mistakes_______
• Thinking that it is too expensive to stop the line. Andon pulls don’t stop the line at once. 353 workstations would slow down to a halt depending upon time taken for rectification. • Illegible re-order form instead of a proper kanban system might be leading to slower turnaround from KFS
• Additional time pressure on KFS would further interrupt their production line, deteriorating quality further
• KFS is blamed for the seat defects without going for the Five Why’s to determine the root cause of the problem • KFS being treated as a supplier as opposed to the partnership model JIT actually professes
Suggestions__________________
Date 14-Apr 15-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 21-Apr 22-Apr 23-Apr 24-Apr 25-Apr 26-Apr 27-Apr 28-Apr 29-Apr 30-Apr Total Contri KFS Defects TMM
•
Total
5 9 6 16
2 2
7 11 6 16
Given that 88% of seat defects is from KFS, TMM needs to participate in KFS’s QC Process, perhaps by placing its own personnel Defective items need to be fixed on assembly line and not postponed Design review needs to be done to see if so many different seat styles are actually necessary Heijunka system may be avoided given the wide variety. This would ensure that a replacement is at hand within 1 minute A drum-buffer-rope model of intimating KFS of replacement stock as soon as it is discovered needs to be installed. A contingency kanban may be designed.
• • •
13 3 5 7 13
2 1
13 5 5 8 13
16 11 7 2 113 88%
4 3 1 15 12%
20 11 10 3 128
•
Suggestions (Contd.)____________
Seat spec recvd at KFS
Seat setup as per spec on KFS Assy Line
Seat inspected by TMM QC person at KFS
Seat despatched to TMM
Seat recvd at TMM (different dock for replacement)
If seat needs replacement, a kanban sent to KFS
If seat found defective, andon cord pulled
Seat checked for defect during installation
Seat installed in the car
Seat carried above TMM Assy Line
Car continues with other processes
Seat is rechecked.
Seat replaced if replacement is indicated
Car Assy completed
Finished car rolls out of Assy line
Legend Normal flow Flow for replacement seats
The Hook Problem_____________
• $50,000 expenditure is not justified. If the cost of a single hook replacement is not more than $30, the system would need more than 3 years to break even.
Hook Problem Breakages/shift Assumed shifts/day Breakages/year Investment needed ($) Break even cost of replcmnt 1 2 540 50000 92.59 1-Year 46.30 2-Years 30.86 3-Years
Thank You________________
doc_137853037.pptx
The issue of Rise in number of Camry’s with defective seats, leading to a reduced run ratio at the TMM Georgetown Plant
Toyota Motor Manufacturing Inc., USA
The Problem__________________
• Rise in number of Camry’s with defective seats, leading to a reduced run ratio at the TMM Georgetown Plant.
The Reason___________________
• Product proliferation
– From 3 styles x 4 colors, to 36 different seat styles
– Sequential pull with a 57 sec line cycle time means response time for KFS to come up with the next seat is minimal
– Greater variety of styles and heijunka concept means more frequent changes in seat line setup
The Impact___________________
• Loss due to andon pulls:
Work stations Line cycle time Team members Payment rate OT Rate Team Leaders Leader Rate Leader OT Rate Assistant Managers Group Leaders Regular Shift Unpaid lunch time Paid breaks Paid time/shift Working time/shift => Throughput 95% Run ratio 85% Run ratio Production loss Cost of OT Time required to cover Production loss OT Cost Incurred 353 57 seconds 769 17 $/hr 25.5 $/hr 154 18.36 $/hr 27.54 $/hr 10 46 525 minutes 45 minutes 30 minutes 8 hours 450 minutes 27000 seconds 474 cars/shift 450 cars/shift 403 cars/shift 47 cars/shift 19923.25 $/hr 2700 seconds 0.75 hours 14942.44 $/shift
So is andon a bad thing? No. Jidoka concept only assures better quality. The problem cannot be solved by reducing andon pulls. It can be solved by eliminating the cause behind the pulls.
The Root Cause________________
• TMM did not internalize the TPS philosophy. It only emulated the systems from Toyota, Japan. • KFS balanced capacity to meet TMM Production. It did not have the TPS implementation to respond to the product proliferation. It only learnt system from the Japanese seat suppliers, not the underlying philosophy.
• Not allowing the seat problem to be solved in real time but just tagging it for storage in the rework area is a gross violation of the jidoka concept.
The Snowballing Mistakes_______
• Thinking that it is too expensive to stop the line. Andon pulls don’t stop the line at once. 353 workstations would slow down to a halt depending upon time taken for rectification. • Illegible re-order form instead of a proper kanban system might be leading to slower turnaround from KFS
• Additional time pressure on KFS would further interrupt their production line, deteriorating quality further
• KFS is blamed for the seat defects without going for the Five Why’s to determine the root cause of the problem • KFS being treated as a supplier as opposed to the partnership model JIT actually professes
Suggestions__________________
Date 14-Apr 15-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 21-Apr 22-Apr 23-Apr 24-Apr 25-Apr 26-Apr 27-Apr 28-Apr 29-Apr 30-Apr Total Contri KFS Defects TMM
•
Total
5 9 6 16
2 2
7 11 6 16
Given that 88% of seat defects is from KFS, TMM needs to participate in KFS’s QC Process, perhaps by placing its own personnel Defective items need to be fixed on assembly line and not postponed Design review needs to be done to see if so many different seat styles are actually necessary Heijunka system may be avoided given the wide variety. This would ensure that a replacement is at hand within 1 minute A drum-buffer-rope model of intimating KFS of replacement stock as soon as it is discovered needs to be installed. A contingency kanban may be designed.
• • •
13 3 5 7 13
2 1
13 5 5 8 13
16 11 7 2 113 88%
4 3 1 15 12%
20 11 10 3 128
•
Suggestions (Contd.)____________
Seat spec recvd at KFS
Seat setup as per spec on KFS Assy Line
Seat inspected by TMM QC person at KFS
Seat despatched to TMM
Seat recvd at TMM (different dock for replacement)
If seat needs replacement, a kanban sent to KFS
If seat found defective, andon cord pulled
Seat checked for defect during installation
Seat installed in the car
Seat carried above TMM Assy Line
Car continues with other processes
Seat is rechecked.
Seat replaced if replacement is indicated
Car Assy completed
Finished car rolls out of Assy line
Legend Normal flow Flow for replacement seats
The Hook Problem_____________
• $50,000 expenditure is not justified. If the cost of a single hook replacement is not more than $30, the system would need more than 3 years to break even.
Hook Problem Breakages/shift Assumed shifts/day Breakages/year Investment needed ($) Break even cost of replcmnt 1 2 540 50000 92.59 1-Year 46.30 2-Years 30.86 3-Years
Thank You________________
doc_137853037.pptx