This video is based in “the Toyota Production System (TPS)” which is a reference in the world of production. I would like to show you some of the keys to success in the supply chain:
First of all, they use the pull system. That means they only produce what is order. One advantage to the system is that there will be no excess of inventory that needs to be stored, thus reducing the cost of carrying and storing products. Moreover, they use the process Just in time. What system did they adopt to deliver just in time? They adopted Heijunka which is a production-levelling that produces the right product as demanded by costumer in the exact sequence. So, they will be able to deliver the right parts at the right moment where they are needed.
The next key is the management to improve quality. Every morning, at 8:30 they have a meeting called Assaichi where group leaders can update all their department about the major issues they find in the line. Also, another main aspect is the good information system they have. For instance, they perform quality checks before sending their work to the next step.
Finally, the video talks about the Warranty Claim Process. This is a system of the reverse logistics that consists in detecting the defects of the parts that they received from the suppliers with the purpose of avoid them for the future.
Overall, I think TPS is efficient and successful because it helps to get the right products in the right place, at the right time at the desired conditions and it minimizes the stores’ costs. What disadvantages do you think it may has?
By: Anabel Ramos