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Posted in Improvement, and Toyota Production System

Toyota production system is a powerful method for making production since the system is an effective tool to generate the ultimate goal – profit .

The main purpose :

1. Earnings Through Cost Reduction

Cost reduction and productivity improvements achieved by removing waste.

Types of waste in the fabrication operations :

1. Resource production too much
2. Excessive production
3. preparations too much
4. The capital investment unnecessary

Costs in the Toyota production system not only cost fabrication , but also the cost of sales , administrative costs , and capital costs . Therefore, the expenditure of funds to make a profit in the past , present and future , which will be deducted from sales .

2. Removal Product Overload

Four types of waste will also increase the cost admiistrasi , direct material costs , direct labor costs and indirect and overhead costs , for example depreciation etc .

Workforce too much will cause the waste berikkutnya , the first action is very important that reduce or eliminate waste . Moreover , additional costs due to waste a second , third , and fourth can be reduced .

The main subject of the Toyota system is the excessive production control and ensure the product manufacturing process in accordance with the pace of sales in the market .