Toyota Lean Production Systems

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Toyota Motor Manufacturing. USA Inc. Case Study 2 Group members: Ibraheem Hoseni Abdullah Bensalama Alia Abbas 1) How does the andon procedure work and what are its fundamental aspects? How much does it cost to stop the line? What are the benefits of stopping the line? a. The andon cord is a cord running adjacent to assembly lines that enables workers to stop production if they detect a defect; this procedure dramatizes manufacturing problems and acts as a pressure for process improvements. In other words in TPS, the next step is the customer; hence every resource should only let the flow units move downstream after it has been inspected and evaluated as good parts. Of course, in the case, there is a yellow and red lines where it indicates where is the andon cord should be pulled (70% of the line) . a team member who’s behind in finishing his task on the assembly line pulls the andon cord to attract the team leader, the andon pull turns on a flashing light and triggered loud music and lights up the work station having the problem. b. Depending on the stoppage time, the cost varies as all other resources in the upstream and downstream become somehow idle. * From the case study, we got the following information Number of Team Leaders = 204 Work stations = 353 Number of Team members = 769 Team leader salary (5%-8% Premium) = 17.85$/HR and 18.36$/HR Team member Salary = 17$/HR Overtime will cost an extra 50% for each member. Shift Duration = 525-(15 paid break X2)-45 = 450 min Total produced cars per shift = 474 cars with a 60 sec start up. Current production rate is 95% = 474 X 0.95 = 450 cars per shift * As given above, the cost calculation for the scenario when production fell (from the case study) from 95% to 85% is as follows: * 474 cars X 0.85 = 403 Cars * Hence the number of cars produced = 450 – 403 = 47

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