Manufacturing strategy is the root of success and failure of current industries, espescially for manufacturing business so far. Strategy must be developed to increase power and competitiveness of the industry. A company should develop business strategy not only for maintaining the costumers but also strengthening whole business core.
Manufacturing strategy that develops manufacturing process that's easy to costumize in order to fits rapid growing market changes. This system needs ability to modify current system to meet product changes. Production line changes developed should allow small-run batches but also consider production cost according to planning market strategy.
Lean manufacturing strategy, or also known as just-in-time manufacturing, aims to develop efficient manufacturing process bu reducing wasted labor and material costs. The stratgey needs multi skill labor and high percentage quality control process production.
Service Based Manufacturing
The strategy focuses on continued aftermarket purchases by selling goods with low profit margin. Selling premium goods is just side of the strategy, but with aftermarket sales and service estabilishes costumer bases.
All setup practices are wasteful because they add no value and they tie up labor and equipment. By organizing procedures, using carts, and training workers to do their own setups, Toyota managed to slash setup times from months to hours and sometimes even minutes.
Producing things in large batches results in huge setup costs, high capital cost of high-speed dedicated machinery, larger inventories, extended lead times, and larger defect costs. Because Toyota has found the way to make setups short and inexpensive, it became possible for them to economically produce a variety of things in small quantities.
Employee Involvement and Empowerment
Toyota organized their workers by forming team and gave them the responsibility and training to do many specialized tasks. Teams are also given responsibility for housekeeping and minor equipment repair. Each team has a leader who also works as one of them on the line.
Quality at the Source
To eliminate product defects, they must be discovered and corrected as soon as possible. Since workers are at the best position to discover a defect and to immediately fix it, they are assigned this responsibility. If a defect cannot be readily fixed, any worker can halt the entire line by pulling a cord (called Jidoka).
Toyota operators are assigned primary responsibility for basic maintenance since they are in the best position to defect signs of malfunctions. Maintenance specialists diagnose and fix only complex problems, improve the performance of equipment, and train workers in maintenance.
To reduce inventory holding costs and lead times, Toyota developed the pull production method wherein the quantity of work performed at each stage of the process is dictated solely by demand for materials from the immediate next stage. The Kamban scheme coordinates the flow of small containers of materials between stages. This is where the term Just-in-Time(JIT) originated.
Toyota treats its suppliers as partners, as integral elements of Toyota Production System (TPS). Suppliers are trained in ways to reduce setup times, inventories, defects, machine breakdowns etc., and take responsibility to deliver their best possible parts.
The right process will produce the right results
1. Create continuous process flow to bring problems to the surface
2. Use the "pull" system to avoid overproduction
3. Level out the workload (heijunka). (Work like the tortoise, not the hare.)
4. Build a culture of stopping to fix problems, to get quality right from the first
5. Standardized tasks are the foundation for continuous improvement and employee empowerment
6. Use visual control so no problems are hidden
7. Use only reliable, thoroughly tested technology that serves your people and processes.
Add value to the organization by developing your people and partners
1. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
2. Develop exceptional people and teams who follow your company's philosophy.
3. Respect your extended network of partners and suppliers by challenging them and helping them improve.
Continuously solving root problems drives organizational learning
1. Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu);
2. Make decisions slowly by consensus, thoroughly considering all options (Nemawashi); implement decisions rapidly;
3. Become a learning organization through relentless reflection (Hansei) and continuous improvement (Kaizen).
The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices. The TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. The system is a major precursor of the more generic "Lean manufacturing." Taiichi Ohno, Shigeo Shingo and Eiji Toyoda developed the system between 1948 and 1975.
Originally called "Just In Time Production," it builds on the approach created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno. The founders of Toyota drew heavily on the work of W. Edwards Deming and the writings of Henry Ford. When these men came to the United States to observe the assembly line and mass production that had made Ford rich, they were unimpressed. While shopping in a supermarket they observed the simple idea of an automatic drink resupplier; when the customer wants a drink, he takes one, and another replaces it. The principles underlying the TPS are embodied in The Toyota Way.