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Manufacturing Supermarket
A manufacturing supermarket (or market location) is, for a factory process, what a retail supermarket is for the customer. The customers draw products from the 'shelves' as needed and this can be detected by the supplier who then initiates a replenishment of that item. It was the observation that this 'way of working' could be transferred from retail to manufacturing that is one of the cornerstones of the Toyota Production System (TPS). History In the 1950s Toyota sent teams to the United States to learn how they achieved mass-production. However, the Toyota Delegation first got inspiration for their production system at an American Supermarket (a Piggly Wiggly, to be precise). They saw the virtue in the supermarket only reordering and restocking goods once they’d been bought by customers. In a supermarket (like the TPS) customers (processes) buy what they need when they need it. Since the system is self-service the sales effort (materials management) is reduced. The shelves ar ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Toyota Production System
The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices. The TPS is a management system that organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. The system is a major precursor of the more generic " lean manufacturing". Taiichi Ohno and Eiji Toyoda, Japanese industrial engineers, developed the system between 1948 and 1975. Originally called " just-in-time production", it builds on the approach created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno. The principles underlying the TPS are embodied in The Toyota Way. Goals The main objectives of the TPS are to design out overburden ( muri) and inconsistency ( mura), and to eliminate waste ( muda). The most significant effects on process value delivery are achieved by designing a process capable of delivering the require ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mura (Japanese Term)
is a Japanese word meaning "unevenness; irregularity; lack of uniformity; nonuniformity; inequality", and is a key concept in the Toyota Production System (TPS) as one of the three types of waste ('' muda'', ''mura'', '' muri''). Waste in this context refers to the wasting of time or resources rather than wasteful by-products and should not be confused with Waste reduction. Toyota adopted these three Japanese words as part of their product improvement program, due to their familiarity in common usage. Mura, in terms of business/process improvement, is avoided through Just-In-Time systems which are based on keeping little or no inventory. These systems supply the production process with the right part, at the right time, in the right amount, using first-in, first-out (FIFO) component flow. Just-In-Time systems create a “pull system” in which each sub-process withdraws its needs from the preceding sub-processes, and ultimately from an outside supplier. When a preceding proc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stockout
A stockout, or out-of-stock (OOS) event is an event that causes inventory to be exhausted. While out-of-stocks can occur along the entire supply chain, the most visible kind are retail out-of-stocks in the fast-moving consumer goods industry (e.g., sweets, diapers, fruits). Stockouts are the opposite of overstocks, where too much inventory is retained. Extent According to a study by researchers Thomas Gruen and Daniel Corsten, the global average level of out-of-stocks within retail fast-moving consumer goods sector across developed economies was 8.3% in 2008. This means that shoppers would have a 42% chance of fulfilling a ten-item shopping list without encountering a stockout. Despite the initiatives designed to improve the collaboration of retailers and their suppliers, such as Efficient Consumer Response (ECR), and despite the increasing use of new technologies such as radio-frequency identification (RFID) and point-of-sales data analytics, this situation has improved little ove ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Frequent Deliveries
Frequent deliveries are a largely ignored but powerful way of leveling apparent demand within a supply chain and thereby reducing Mura. What is perhaps not so obvious is that this will reduce inventory levels and thereby assist progress along the Lean journey at the same time. The historical focus upon carrying full loads, sometimes of only one product, reduces the unit cost of transport but has sometimes hidden the true costs associated with achieving those transport discounts. It is also possible to gain some of these benefits by 'faking' frequent deliveries at the supply site. Principles Reducing production lot size and raising delivery frequency If we model this idea using a factory that produces three products (Triangles, Circles and Squares) and is making a regular daily delivery to its customer at the end of each day then we can represent this as below. Stock builds up during the day until the factory has completed the production campaign of three products each of wh ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Just-in-time (business)
Lean manufacturing is a production method aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. It is closely related to another concept called just-in-time manufacturing (JIT manufacturing in short). Just-in-time manufacturing tries to match production to demand by only supplying goods which have been ordered and focuses on efficiency, productivity (with a commitment to continuous improvement) and reduction of "wastes" for the producer and supplier of goods. Lean manufacturing adopts the just-in-time approach and additionally focuses on reducing cycle, flow and throughput times by further eliminating activities which do not add any value for the customer. Lean manufacturing also involves people who work outside of the manufacturing process, such as in marketing and customer service. Lean manufacturing is particularly related to the operational model implemented in the post-war 1950s and 1960s by the Jap ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
