TOYOTA Production System;Kanban Production
Summary
TLDRThe video script delves into two production systems: the Kanban system, which emphasizes 'Just-in-Time' production, and the Push system, based on demand forecasts. Kanban uses a card system to control production, ensuring materials are produced and procured only as needed, minimizing waste and inventory. In contrast, the Push system plans production in advance and maintains stock to prevent stockouts, but can lead to overproduction if demand forecasts are inaccurate. The script highlights the importance of balancing production speed with sales speed to manage inventory effectively.
Takeaways
- 📈 Just-in-Time (JIT) Production: The script introduces the JIT production style, which focuses on producing only the exact amount of products needed based on received orders, minimizing waste and inventory costs.
- 🔄 Kanban System: The JIT production is controlled by a tool called 'Kanban,' which carries production and logistics information and acts as a pull signal for the next process in the production line.
- 🔄 Backward Scheduling: The Kanban system works by moving backward through the production process, starting with the shipping of finished products and pulling required parts from previous processes based on Kanban instructions.
- 🚫 No Production Without Orders: The script highlights that in the Kanban system, production only occurs when there are orders, which helps in aligning production with actual demand and reducing overproduction.
- 📉 Inventory Control: The main goal of production control in the JIT system is to keep inventory at a minimum by matching production speed with sales speed, which is influenced by external factors like customer demand and competition.
- 🔄 Sales Speed Dependency: The script points out that sales speed is not controllable by the manufacturer and can fluctuate widely, necessitating adjustments in production speed to manage inventory effectively.
- 🛡 Safety Stock Concept: The concept of safety stock is introduced as a buffer to handle fluctuations in sales speed, ensuring that production can continue even when sales temporarily exceed production capacity.
- 🔮 Demand Forecasting: The script discusses the importance of demand forecasting in a general production style, which is crucial for planning production amounts and maintaining an optimal level of inventory.
- 🚀 Push System Production: The push system is contrasted with the JIT/Kanban system, where production is based on demand forecasts and maintains a certain level of inventory, shipping products from stock upon receiving orders.
- 📉 Overproduction Risk: The push system is highlighted as potentially leading to overproduction and excess inventory if the demand forecast is inaccurate or if actual demand falls below the forecasted levels.
- 🔄 Flexibility in Production: The script concludes by emphasizing the need for a flexible production style that can adapt to demand fluctuations, aligning production speed with sales speed to minimize inventory and stockouts.
Q & A
What is the main principle behind the pole system production style?
-The pole system production style, also known as just-in-time (JIT), is based on producing the right material at the right time, at the right place, and in the exact amount as per the orders received, thus minimizing waste and inventory.
What tool is used in the pole system production to control production?
-A tool called 'Kanban' is used in pole system production to control the production process, carrying all necessary information for production and logistics.
How does the Kanban system ensure the production of the right amount of material?
-The Kanban system ensures the production of the right amount of material by signaling the production line to process parts using materials to fulfill the instructions indicated on the Kanban, which represents the product that has been shipped or parts used.
What is the purpose of passing the Kanban from one process to another in the pole system production?
-The purpose of passing the Kanban from one process to another is to ensure that materials required for processing are picked up from storage and processed according to the instructions on the Kanban, thus maintaining a smooth flow of production.
How does the pole system production respond to fluctuations in sales speed?
-The pole system production responds to fluctuations in sales speed by adjusting the production speed to match the sales speed, using accumulated inventory when sales exceed production, and replenishing inventory when sales drop.
What is the main target of production control in the pole system?
-The main target of production control in the pole system is to keep inventory at its minimum by controlling the sales speed and production speed without causing stockouts.
What is the push system production and how does it differ from the pole system?
-The push system production is a style based on demand forecasts and production schedules, maintaining a certain amount of inventory and shipping products from stock upon receiving orders. It differs from the pole system by focusing on the manufacturer's logic, ordering materials in large lots, and maintaining a large production lot size for efficiency.
How does the push system production plan its production schedule?
-The push system production plans its production schedule based on demand forecasts and internal information from customers, making plans for materials, production facilities, personnel, and production steps accordingly.
What are the potential problems of the push system production?
-The potential problems of the push system production include inaccuracies in demand forecasts leading to stockouts or excess inventory, and the difficulty in adapting quickly to market fluctuations due to its reliance on large lot sizes and set production schedules.
How can a company minimize stock or stockouts in the push system production?
-A company can minimize stock or stockouts in the push system production by not solely relying on demand forecasts but also implementing a flexible style that adjusts production speed according to actual demand trends, thus reducing the difference between production and sales speeds.
What is the significance of safety stock in production control within the push system?
-Safety stock is significant in production control within the push system as it serves as a buffer to prevent stockouts. It is considered standard stock and is used to control production to ensure that it is always maintained, even when there are fluctuations in demand.
Outlines
🔄 Just-In-Time (JIT) Production and Kanban System
This paragraph introduces the Just-In-Time (JIT) production style, which focuses on manufacturing products based on the exact order quantity received. The JIT system minimizes waste by procuring materials and processing only what is needed for the current order. A key tool in this system is the 'Kanban,' which carries vital production and logistics information, such as part numbers and capacity. The Kanban facilitates a pull system, where production is triggered by the demand from the post-process, ensuring that materials, parts, and production instructions are aligned with actual orders. The goal is to synchronize production speed with sales speed to maintain minimal inventory and avoid stockouts, with safety stock serving as a buffer against demand fluctuations.
🚀 Push System Production: Efficiency and Challenges
The second paragraph delves into the push system production, contrasting it with the JIT and Kanban system. The push system is based on demand forecasts and internal customer information to plan production schedules, material procurement, and staffing. It emphasizes efficiency through large lot sizes to reduce setup frequency and lower purchasing costs. However, the push system's reliance on forecasts can lead to stockouts if demand exceeds production or excess inventory if demand is lower. The paragraph highlights the push system's strengths in stable markets and the need for flexibility to adapt to fluctuating demand, suggesting that adjusting production speed to match sales speed can minimize safety stock requirements and better align inventory with actual demand.
Mindmap
Keywords
💡Just-in-Time (JIT)
💡Kanban
💡Postprocess
💡Push System Production
💡Demand Forecast
💡Safety Stock
💡Inventory Control
💡Production Speed
💡Sales Speed
💡Efficient Production
💡Fluctuation
Highlights
Just-in-Time (JIT) manufacturing concept produces the right material at the right time, place, and in the exact amount.
Kanban system is used in JIT to control production with cards carrying production and logistics information.
Kanban cards instruct the production line to process parts using materials to fulfill indicated instructions.
In Kanban production, if no products are shipped, no production instructions are given, aligning production with demand.
Production control aims to minimize inventory by managing sales and production speeds without causing stockouts.
Sales speed is influenced by customers and competitors and cannot be directly controlled by manufacturers.
Accumulating inventory when sales speed drops allows manufacturers to respond to fluctuations in demand.
Safety stock in production control is considered standard stock to maintain a balance between inventory and stockouts.
Push system production is based on demand forecasts and maintains a certain amount of inventory.
Push system production plans are made for materials, facilities, personnel, and schedules based on forecasts.
Push system production focuses on large lot sizes for efficiency and reduced setup frequency.
Push system production maintains a large inventory to prevent stockouts and ensure security of supply.
Push system production is effective in markets with less demand fluctuation and easy predictability.
Demand forecast accuracy and fluctuation are weak points of push system production, leading to stockouts or excess inventory.
To cope with push system weaknesses, manufacturers must implement flexible styles that adjust to demand changes.
Adjusting production speed to sales speed minimizes the difference between the two and reduces required safety stock.
Kanban production offers a contrasting inventory logic to push system, focusing on demand-driven production.
Understanding the differences between Kanban and push system production is crucial for optimizing manufacturing strategies.
Transcripts
let's look into the details of the pole
system production style this style is
based on the orders received it
assembles products only for the amount
of order received then it processes the
quantity used for assembly and likewise
procure materials for the volume that
has been
processed this manufacturing concept
which produces the right material at the
right time at the right place and in the
exact amount is called the just in time
in the pole system production a tool
called Canin is used to control the
production the Canin representing the
product that has been shipped or parts
used is handed from the
postprocess the Canin carries all the
necessary information for production and
Logistics such as the part number pickup
cycle and
capacity the Canon provides instruction
for production the production line will
process Parts by using materials to
fulfill the instructions indicated on
the Canin once the parts have been
processed the Canin will be attached and
handed over to the post
process now the Canin of the materials
used for processing will be passed on to
the previous process to place in order
in this manner a pulse system production
using the Canon is called the Canon
production now let's find out the flow
of the Canon
production products are shipped based on
the orders that have been received the
Canin of products that have been shipped
are handed down to the previous process
the welding assembly line based on the
information on the Canin parts required
for assembly are picked up from the
previous process and assembly is carried
out in the previous processing line the
Canon of the parts which has just been
picked up now becomes an instruction
order for
processing in the processing line
materials required for processing are
picked up from the storage and then
processing is carried out the Canon
which was attached to the materials will
be
removed based on the information
indicated on this can been removed
orders will be placed to supply
materials products that have been welded
and assembled are transferred to the
shipping area materials that have been
ordered will be delivered to the factory
with the Canon being attached in this
way the Canin is issued from the post
process to the previous process in order
to pick up the parts required
instruction for production is provided
moving backwards of the processes when
products are shipped following the
orders the Canin is issued to
manufacture products this means that if
no products are shipped no production
instructions will be given the Canon
enables to achieve the production
concept of the right material at the
right time at the right place and in the
exact amount in this way the production
speed can follow the S speed the main
target of production control is to keep
the inventory at its minimum by
controlling the sales speed and
production speed and not to cause any
stockouts the the sales speed depends on
customers and competitors therefore
cannot be controlled by
ourselves this is why we have to change
the production speed to control the
inventory and stock out however the
sales speed widely fluctuates compared
to the production speed which may create
some moments in which the sales speed
exceeds the production speed so we will
have to accumulate the inventory when
the Sal speed
drops when the sales speed increases and
the production speed cannot catch up we
will use the accumulated inventory
having stock allows you to respond to
the fluctuation of the sales speed in a
production schedule we set the
production amount to make sure that the
volume of inventory and stock out is
equal the maximum difference of the
production speed and sales speed becomes
the Safety stock in production control
we consider the Safety stock as the
standard stock and control the
production so that the standard stock is
always maintained a general production
style is is based on the demand forecast
and production schedule it maintains a
certain amount of inventory and products
are shipped from the stock every time an
order is received in this style the key
factor to minimize the inventory while
making sure that there will be no stock
at will be the demand forecast demand
forecast is made by analyzing the demand
Trend based on the past Trends seasonal
factors that repeatedly vary depending
on the season and contingency that
affects sudden fluctuations based on the
demand forecast the production amount
will be planned to make sure that more
than a certain amount of stock will be
maintained even after receiving the
expected number of orders based on the
production schedule the most efficient
style of material procurement processing
and assembly will be instructed to
manufacture products completed products
will be placed and stopped in the
shipping
area products will be shipped from the
stock once an order has been received
this production style is called the push
system production now let's look into
the details of the push system
production this is an example of a
production line where parts are
processed and welded the production
schedule is planned out based on the
demand forecast and internal information
from customers then plans will be made
for the materials outsourced production
facilities Personnel production steps
Manpower and schedule based on the
production schedule the materials will
be procured materials are ordered in a
large lot in order to keep the
purchasing price low then parts are
processed using the delivered materials
and following the production schedule
processing lot is kept at a large size
so that the frequency of setups will be
kept at minimum to achieve an efficient
production process parts are then
carried to the assembly
area parts are welded and assembled in
accordance with the production schedule
and are stocked in the shipping area the
standard stock is maintained to prevent
any stock out just like the processing
line the main target is to achieve an
efficient production by minimizing the
assembly and setup frequency products
are shipped from the stock following the
orders received now let's sort out the
logic of the push system production
which will later be compared with the
canbin production the push system
production is a production style that
focuses on the logic of the manufacturer
side the first point is the logic of
procuring
materials materials and parts are
ordered at a massive lot volume in order
to minimize the purchasing price the
monthly schedule is taken into account
so that all the parts needed for the
month can be ordered at once this makes
the lot size bigger and gives Advantage
for the buyer to negotiate the price the
second point is the logic of production
by making the production lot big the
frequency of setups can be reduced
leading to an efficient line operation
rate the facilities and line systems
also focus on a big lot size so that
maximum efficiency will be
realized the third point is the logic of
inventory the basic idea is to have a
large amount of stock to feel secure
that there will be no stock out produced
this is an absolute logic which is even
called the myth of Safety stock two
factors push manufacturers to keep on
increasing their stock the idea that the
stock will definitely be sold one day so
there will be no long in having stock
the other concept is that stock out
should never happen because it will
directly cause problems to the customers
the Canin production has a completely
opposite idea to this inventory Logic
the biggest difference in the two
production Styles exists here which
makes it hard to understand the Canin
production the push system production is
extremely effective in markets and
industries with less fluctuation in
which it is easy to predict the demand
especially in markets and industries
with less demand variation this
production system allows higher
productivity expectation compared with
that of the campon
production now let's think about the
problems of the push system production
the production schedule is usually
planned out by balancing the stock
amount and the stock at volume based on
the demand
forecast however if the actual demand
results high than the production
schedule the stockout volume will exceed
that of the stock and cause frequent
stockouts
on the other hand if the actual demand
is lower than the production schedule it
will increase the inventory as more
stock will be created than stockouts the
weak points of the push system
production exist in the accuracy and
fluctuation of the demand forecast
because of these weak points the push
system production may cause increased
amount of stock or stockouts to cope
with the weak points of the push system
production and eliminate excess stock
and stock outs a company must not simply
rely on the demand forecast but also
Implement a style that is flexible to
fluctuations to achieve this style the
manufacturing speed must follow the
sales speed which reflects the actual
demand Trend it is a method in which the
production amount is changed according
to the demand change by adjusting the
manufacturing speed to the S speed the
difference in the two types of speed
becomes smaller while it also minimizes
the required Safety stock
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