This article is another prepare for meeting quick read for those young professionals in manufacturing. Not knowing something about the Toyota Production System while working in a manufacturing environment is akin to a baseball player not knowing “the Sultan of Swat” or “the Bambino”.
The Toyota Production System (TPS) is the holy grail of manufacturing processes in which most manufacturers try to emulate. I believe visionaries such as the late Steve Jobs would try to leap frog the process rather than emulate but that’s a post for another day.
Toyota is a multinational automaker headquartered in Japan. The world’s third largest automaker and founded in 1937 by Kiichiro Toyoda.
Toyota is famous for the development of the Toyota Production System (TPS). If you’re new to manufacturing than its very important you have some basic knowledge of this program. As you’re probably aware Henry Ford revolutionized the manufacturing process with the assembly line and as long as you wanted a black Model T this was great. What Toyota did among other things was introduced mix model capability into the production line. In other words you can get cars with multiple features or colors coming off the same assembly line. This was done faster with less inventory and higher quality than the American style assembly line. That’s pretty friggin impressive!
Tоуоtа Prоduсtіоn Sуѕtеm (TPS), range еnсоmраѕѕеѕ all mаnаgеmеnt рhіlоѕорhу and рrасtісеѕ. In other words everyone in the organization has a substantial role to play. Rather than the boss and worker relationship the TPS system fosters more of a mentor system.
The bulk of the practices in use today were developed between 1948 and 1975. The system was original referred to as “Just in Time Manufacturing”. However just in time didn’t really encompass the entire vision for the program. Later this became the foundation of what is known as lean manufacturing.
The mаіn оbјесtіvеѕ of the Tоуоtа Prоduсtіоn Sуѕtеm is to eliminate waste (muda) and create linkage and flow throughout the entire process. Toyota identifies seven main waste categories to eliminate. Remember these there may be test later. The list below is from Wikipedia.
Transportation- Each time a product is moved it stands the risk of being damaged, lost, delayed, etc. as well as being a cost for no added value. Transportation does not make any transformation to the product that the consumer is willing to pay for.
Inventory- Inventory, be it in the form of raw materials, work-in-progress (WIP), or finished goods, represents a capital outlay that has not yet produced an income either by the producer or for the consumer. Any of these three items not being actively processed to add value is waste.
Motion -In contrast to transportation, which refers to damage to products and transaction costs associated with moving them, motion refers to the damage that the production process inflicts on the entity that creates the product, either over time (wear and tear)for equipment and repetitive stress injuries for workers) or during discrete events (accidents that damage equipment and/or injure workers).
Waiting – Whenever goods are not in transport or being processed, they are waiting. In traditional processes, a large part of an individual product’s life is spent waiting to be worked on.
Over-processing – Over-processing occurs any time more work is done on a piece than what is required by the customer. This also includes using tools that are more precise, complex, or expensive than absolutely required.
Over-production – Overproduction occurs when more products is produced than is required at that time by your customers. One common practice that leads to this muda is the production of large batches, as often consumer needs change over the long times large batches require. Overproduction is considered the worst muda because it hides and/or generates all the others. Overproduction leads to excess inventory, which then requires the expenditure of resources on storage space and preservation, activities that do not benefit the customer.
Defects - Whenever defects occur, extra costs are incurred reworking the part, rescheduling production, etc.
The inspiration for this system occurred in 1950 when a delegation from Japan toured businesses in the United States. The delegation found our manufacturing plants inefficient and wrought with too much rework and inventory. However the delegation was intrigued by how our supermarkets operated. Supermarkets turn inventory very quickly. This is done by keeping inventory levels low and having reorder points based only on consumption.
This was a ah ha moment for Japanese delegation. I prefer to think of it as “you have peanut butter on my chocolate moment”. Blending supermarket practices into manufacturing processes was a brilliant move.
ISM CPSM Certification Now More Inclusive!
Great news ISM (Institute of Supply Management) has expanded their CPSM (Certified Professional in Supply Management) certification to be more inclusive while also discontinuing the CSM (Certified in Supply Management).
I applaud these moves by ISM, it reflects their willingness to adapt and change as required. This is win for the average professional and that is what this blog is about!
The requirements for CPSM at time of writing are below.
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I’m a huge proponent of professional certifications. Dollar for dollar these are a great bargain for boosting your credentials and credibility. Education to use for your employer networking for you the individual it’s one of the few remaining win-win situations in the workforce.
With that I believe it was huge mistake for ISM to create two tiered certification process with the primary distinction being an educational prerequisite. This left out in the cold many low, mid and even high level professionals that have decades of experience.
I’ve found that professional certifications are the most beneficial to non-degreed individuals. They are an added distinction for those with degrees. If the certification highlights the fact your non-degreed than it’s a professional buzz kill. This is the reason I never recommend the CSM certification to professionals.
When ISM originally created CPSM designation without a pathway for non-degreed professionals it diminished CSM destination almost immediately. Carrying the CSM certification just screamed “I don’t have a degree” to colleague’s and coworkers in the profession. I’m sure that wasn’t ISM’s intent nor was it to make CPSM an elitist professional certification.
What’s slightly disheartening is that ISM needed research from outside consultants to make a change. Also ISM needs to slow all the designation changes there beginning to feel gimmicky e.g. CPM. Has the organization become too academic and lost touch with the rank and file in the supply profession. I’m willing to give them the benefit of the doubt, everyone slips now and again, remember new formula Coke!
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