Introduction

Operation management is the process of conversion the various input into the usable output in
term of goods and services. The main objective of the operations management procedure
would be to productively utilise the available resources, create products that meet customer
requirements and efficiently handle the processes without any chaos. The responsibility of the
operations management is to ensure that the production work continuously and without any
kind of interruptions.
The operation management people are involved in product and service design, selection of
the process, selection of management of technology, designing the work system, planning the
location, planning the facilities, and quality improvement of the organizations products or
services. There has to be a proper planning of these aspects to create a place in the market
and sometimes also to gain competitive advantage.
The operation management people need to be proactive rather than being passive when it
come to decision making of the processes or systems that to be implement. The operations
management would need to change the strategies if there is a significant change in the inputs
that relate to material, labour, capital, information technology. The operations management
would also need to implement a change if there is a change in the volume or variety demand
of the product due to market factors. In such cases, the company may have to make a change
in the process technology, the capacity , the information technology or in the way the
processes are arranged.
As the example to show how well manages operation management help to create the
successful organization, we choose the Toyota company as our references. The today
achievement of Toyota was the result of implementation of their well manages operation
system that known as Toyota Production System.

Toyota Production System

TPS aim for the elimination of waste (MUDA), overburden (MURI) and inconsistency
(MURA) in all areas to allow process work smoothly and efficiently. The foundations of TPS
are built on standardisation to ensure a safe method of operation and a consistent approach to
quality. TPS has three desired outcomes, it is to provide the customer with the highest quality
vehicles, at lowest possible cost, in a timely manner with the shortest possible lead times. To
provide members with work satisfaction, job security and fair treatment. TPS also gives the
company flexibility to respond to the market, achieve profit through cost reduction activities
and long-term prosperity.
The KAIZEN philosophy was introduced to improve the processes and procedures in order to
maximize the quality, improve the efficiency and eliminate the waste. TPS is consist of two
pillars that are just-in-time and jidoka or autonomation which is the automation with human
touch,

Just-in-time
Just-in-time is a system of production that makes and delivers just what is needed, just when
it is needed, and just in the amount needed. The just-in-time philosophy state that the storage
of unused inventory is a waste of resources. Just-in-time inventory systems expose hidden
cost of keeping inventory, and are therefore not a simple solution for a company to adopt it.
The company must follow an array of new methods to manage the consequences of the
change. The ideas in this way of working come from many different disciplines including
statistics, industrial engineering, production management, and behavioural science.

Just-in-time is a one of two approaches to manufacturing planning and control other than
MRP. The difference between these two approaches are MRP is a resource planning system
that focuses on the future, and is time phased, while JIT does not provide for forwardthinking. The JIT system is a dynamically linked system that is better applied for short lead
times, while MRP is not linked, and is better suited for long lead times. Whereas the JIT
system enhances the value of processes, MRP will give you more control.
The Toyota Production System fulfils customer demand efficiently and promptly by linking
all production activity to real marketplace demand. Just-in-time production relies on finely
tuned processes in the assembly sequence using only the quantities of items required, only
when they are needed. Customer demand stimulates production of a vehicle. In turn the
production of the vehicle stimulates production and delivery of the necessary parts and so on.
The result is that the right parts and materials are manufactured and provided in the exact
amount needed and when and where they are needed. Under 'just in time' the ultimate arbiter
is always the customer. This is because activity in the system only occurs in response to
customer orders. Production is 'pulled' by the customer rather than being 'pushed' by the
needs or capabilities of the production system itself. The linkage between customer demand
and production is made by analysing takt time, a device for measuring the pace of sales in the
market in relation to the capacity of a manufacturing plant.
The word Kanban literally means sign board where the inventory requirements are planned so
accurately that there is no extra stock of inventory remains and there is also no delay due to
the non-availability of the inventory.

.JIDOKA / AUTONOMATION
Jidoka required each worker to perform ongoing quality assurance. Jidoka has the objective
to avoid the defective product passing to the following work station and to make sure the
workers aware about the quality.
There is no room for compromise in the Toyota Production System when it comes to
quality. Jidoka incorporates quality checks into every step of the production process. By
ensuring that all processes are visible, jidoka helps ensure that any abnormalities can be
addressed immediately. Jidoka has three basic rules such as, the machines were designed with
the mechanisms that will stop the process when the inconsistency or malfunctions occur,
make it easy to detect the malfunction and separated the work to be done by humans to the
work to be done by the machines.
In autonomation or jidoka, the machine shall detect the malfunction and stop itself when the
malfunction occurs. It will prevent the defective parts to be produced or passing through the
machine to the following work station, cause of this, the breakdown of machines can be
prevented. Jidoka also make it easy to locate the cause or roots of any malfunction and
implement measures to prevent recurrence.
The concept of autonomation or jidoka is beneficial compare to fully automated concept. In
automation, the machine will continuously operate if the malfunction occurs until there is
someone turns it off. It also difficult to detect the defect, and it will lead to breakdown of
machine due to miss of defected parts to following work station. Difficult to locate the cause
of malfunctions at an early stage and difficult to implement measures to prevent recurrence.

LEAN MANUFACTURING KAIZEN

Kaizen in japanese is a term that give the meaning of continous improvement. Kaizen is
referred a lean manufacturing in english.The lean manufacturing principles have made it
possible for The Toyota Motor Corporation and its subsidiary companies and suppliers to
attain incredibly efficient production processes with maximized elimination of waste and
maximized profit. The Toyota way of business is truly remarkable.
Kaizen in practice means that all team members in all parts of the organisation are
continuously looking for ways to improve operations, and people at every level in the
company support this process of improvement. Kaizen also requires the setting of clear
objectives and targets. It is very much a matter of positive attitude, with the focus on
what should be done rather than what can be done.
Creating a better method that provides better work efficiency is an endless challenge for
people who perform lean kaizen.
At every moment staff at the Toyota Motor Corporation companies are looking for ways to
make their work easier, safer, and/or faster with waste elimination in mind. Why do they do
it? Because they can. Because they want to. And because they find it very fulfilling. Process
improvement, when implemented correctly, is a very motivating force. It builds employee
satisfaction while increasing profit and reducing cost - the essential building blocks for Total
Quality Management and a company`s overall success.

Effective implementation of lean management strategies requires looking at things from a

different vantage point.
When you consider your lean manufacturing training, ensure the focus is on continuous
improvement - at all levels, from all angles as well as employee motivation and employee
engagement. Continuous improvement is supported by three key principles such as TPS or
Thinking People System, 5 why, and 5s.
Thinking People System invites team members to think about the process and make timely
decisions in order to keep it running smoothly, rather than merely operating like machines.
This involvement creates responsibility for the success of the process, increasing both morale
and quality. This is also essential for the success of kaizen.
Kaizen requires that the logic and benefit of all improvements are carefully evaluated before
being implemented. This is achieved by employing the concept of the 5 whys?. Every
planned improvement needs to be tested by questioning why? at five levels to ensure that its
logic and value is clear.
Toyota Production System goes beyond the areas that are purely related to production
processes. It also extends to the whole organisation sales and marketing, administration,
product

development

and

management.

Every employee, regardless of position is treated equally. Toyota takes care to nurture a sense
of pride and efficiency in the workplace. This is supported by the 5s . SEIRI or Sifting,
SEITON or Sorting, SEISO or Sweeping and cleaning, SEIKETSU or Spick and span,
SHITSUKE or Sustain.