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Understanding The Toyota Model through Simulation
CreateASoft, Inc.
The Process Improvement Company
  • 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.
Single Piece Flow
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Single Piece vs Batch
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The Value Streams
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  • 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

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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.
  • 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.

Q & A

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