Kaizen Company F
Emphasis: JIT Production, TPS
· Backgrounds of selection of the company:
Toyota Production System is called by various names such as Just-In-Time Production System, Kanban System (strictly speaking, this is some misleading), Lean Production System and Pull System.
TPS is now extensively applied by non-automotive industry in Japan as well as abroad.
This Kaizen Company is using TPS for non-automotive products such as sewing machines and sleeping beds with tremendous results.
The TPS practices applied here is included in MBA textbooks for US university students.
Actual Total Production Lead Time (TPLT) of sleeping beds reduced to 35 minutes.
• Points of Interest:
1) Complete understanding of TPS in sleeping bed manufacturing from order entry through shipment.
2) Kanban routing in the manufacturing process and computer using between retailers across Japan and the manufacturing plant at.
On site observation:
• Company Business Indexes indicating not a very bright future. They decided to employ an Ex-Toyota Manager as CEO.
• An Ex-Toyota Manager took the responsibility as CEO. After a careful study he found out a major non-value added process is sales expenditures.
• He eliminated the large area showrooms in different places, and instead he established small contact points with potential customers. Having only two different types of sleeping beds, traditional and waterbed for customers to touch and feel the product they are going to buy. Customers also had the chance to go through the catalog and select the style they like.
• A new type of waterbed was developed which used Gel instead of water to avoid sinking into the bed and provide more comfort.
• First Improvement was to eliminate warehouse. Move from one-month production scheduling, keeping 30 days of inventory moving to Day-To-Day Orders. Abolish the system of Make-to-Forecast and make by order only.
• All customers were informed that their order will be delivered at their address after three days.
• Different Kanban tools made in force to have a better flow of information.
BEFORE:
• Number of Styles: 335
Finished Goods Inventory: 2.5-day work from 30 days
Number of production per day: 230 units
Number Operators: 21
Labor Content: 54 minutes/unit
• A series of improvements were made to reduce Muda in different processes:
1) Amount of control in quilting processes.
2) Progress detection in assembly lines.
3) Further reduction in change over time.
• The company could gain better results.
• AFTER:
Number of Styles: 850
Finished Goods Inventory: 1.5day work
Number of Daily Production: 550
Number of Operators: 50
Labor Content: 35 minutes/unit
• A change in production schedule was made regarding the distance and different locations that dictates different means of transportation to be used such as Lorry, Ferry and alike.
• Productivity within almost 4 years improved 2.1 times.
Finished Product Inventory reduced to 1/20.
Quality was improved to Quick Response Quality Control and by eliminating the warehouse such as; Stain, Dirt, Change Color caused by the longtime storage reduced.
• An increase in sales: Sales Strategy ” IMMEDIATE…”
• One of the BOING Vice Presidents visits this company once every year to learn what improvements the sleeping bed company has made to use them in Air Craft industry.