CreateASoft, Inc.
The Process Improvement Company

Understanding the Toyota Model through simulation



Hosni Adra
Product Manager/Partner
 

Outline
 

• Introduction
• Basic concepts of the Toyota Production System.
• Basic concepts of the Toyota Production System.
• Simulating the Toyota Concepts,
  -- Benefits and applications.
  -- View of the Value stream map.
• How to apply it to your operation.
• Q&A
   

About CreateASoft, Inc.

• In business since 1992
• Core technology: Simcad Process Simulator software
• Provides Simulation and Process Improvement services to the manufacturing and service industries in the areas of
  -- Automation, manufacturing, and process improvement.
  -- Lean transition and implementation.

Simcad Process Simulator

• Discrete-Event based process simulator with extended continuous simulation capabilities.
• Design and developed in the US by CreateASoft, Inc.
• Currently used by many companies,
  -- Jostens, Baxter, USAF, Bechtel SAIC, The US Department of Energy, Rumble Automation, LaSalle Bank, Florida hospital and many others..
   

What is Lean?
 

• Lean manufacturing concepts.
  -- Eliminate waste time.
  -- Increase throughput.
  -- Reduce overall cost.
  -- Increase lean efficiency.
• Heavily used in manufacturing to improve efficiency.
• Finding its way to the service sector slowly.

Simcad Pro role in the transition to Lean Manufacturing

• The dynamic value stream provides an efficient tool to validate existing or proposed design based on different product mixes.
• Kanban events and buffer sizes can be dynamically computed from the value stream.
• Efficient reporting to generate best path, lean efficiencies, and OEE values.

Lean Methods
 

• The Kanban
  --  Required in process inventory to maintain high efficiency.
• The Supremarket
  -- An inventory buffer used to reduce the customer andvariability
• Single Piece Flow paradigm.
  
  
   

Components of a Non-Lean environment

• Traditional batch implementation
  -- Through the use of carts, bins, …
• High inventory cost.
• Long production lead time, with high dependence on order variability.
• Excessive resource travel – specially in the service sector.
• Reduced process and system efficiency.

The Single Piece Flow

• Ability to process “one part” at a time.
• Requires a different processing paradigm to be successful.
• Benefits of a single piece flow
  -- Reduced Inventory cost.
  -- Just-in-time production
  -- Deterministic lead time.
  -- Increased process and system efficiency.
  

The Batch Flow

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Single Piece Flow

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Single Piece vs Batch

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The Value Streams

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Lead Times

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Kanban

• Used to implement a Pull systems.
• Defines the optimum inventory levels to place order from suppliers.
  -- Suppliers and customers can be other departments within the same organization.
• Optimizing Kanban provides:
  -- Less Work in progress (WIP)
  -- Improved lead time
  -- Improved workflow efficiency

Kanban Implementation

• Determining the optimum Kanban size is the key to a successful implementation.
• 2 Kanban system
  -- While one kanban is being processed, another one is being filled by the supplier.
  -- The second Kanban is requested when a predetermined condition occurs within the “processing” station.

2 Kanban System
 

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The role of the Supermarket

• Supermarkets are strategically located inventory within the operation.
• Main use: Eliminate the effect of product variability in order to achieve:
  -- A “standard” Lead time.
  -- Have a predictable workflow.
  -- Reduce Production Risk.
  -- Reduce Work in progress.

Process variability
 

• Each process environment suffers from one or more of the following
  -- Unpredictable order arrival rate.
  -- Process Change-over to accommodate different products.
  -- Internal process variability due to efficiency fluctuation (Human and machine)
  -- Rework and scrap due to production quality.
  
   

The effect of the Supermarket

• The supermarket(s) can be strategically placed in the process flow to eliminate the “variability” effect on the processing segment.
• The supermarket size and content plays a key role in the keeping variability under control.
• Benefits include lead time management, efficiency improvement, and Just-in-time processing.
   

Simulating variable orders with Change-Over

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Variable Order With Supermarket

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Putting it all together

• The solution will vary based on the environment being optimized.
• The target is to produce to “takt”.
  -- “takt” time is measured in the time based on consumer demand.
  -- In a single piece flow, each process’s lead time should be below the target “takt” time.

Summary

• Implementation of the Toyota system helps in cost reduction, lead time control, and improved efficiencies.
• The final result will be a combination of Single Piece flow, Kanbans, and supermarkets placed throughout the process flow.
• Creating simpler processes reduces the fluctuations based on resource efficiencies.

CreateASoft, Inc.
The Process Improvement Company

Understanding the Toyota Model through simulation