I think TOYOTA is doing well in the car manufacturing industry which is regarded as a complex system.
It's impossible to predict how many and which types of cars will be ordered. Then, TOYOTA assembles each car on order. When I bought a TOYOTA car, it took one month from purchasing contract to taking delivery. The car manufacturer should try to shorten this period, at least not to keep the buyer waiting too long. For that purpose, TOYOTA uses ANDON and KANBAN methods.
ANDON is an information display device. In the manufacturing factory, anyone can push the emergency button to stop the entire assembly line, if he/she finds something wrong. Then, many engineers get together, check what's wrong and fix it. During that time, ANDON displays the situation, such as "something wrong," "checking" or "fixing." This ANDON method prevents from shipping a defective car.
The other method, KANBAN is an ordering plate from each assembly process to the parts providing sections. Every assembly process has a minimum amount of parts, like screws, nuts and bolts. Once those parts are used, the deficit will be filled up soon by the parts providing sections. This method prevents from excessive amount of parts which occupies the factory space or costs a lot of maintenance fee. On the other hand, this method enables "just in time," providing necessary parts in the necessary timing.
It's impossible to predict how many and which types of cars will be ordered. Then, TOYOTA assembles each car on order. When I bought a TOYOTA car, it took one month from purchasing contract to taking delivery. The car manufacturer should try to shorten this period, at least not to keep the buyer waiting too long. For that purpose, TOYOTA uses ANDON and KANBAN methods.
ANDON is an information display device. In the manufacturing factory, anyone can push the emergency button to stop the entire assembly line, if he/she finds something wrong. Then, many engineers get together, check what's wrong and fix it. During that time, ANDON displays the situation, such as "something wrong," "checking" or "fixing." This ANDON method prevents from shipping a defective car.
The other method, KANBAN is an ordering plate from each assembly process to the parts providing sections. Every assembly process has a minimum amount of parts, like screws, nuts and bolts. Once those parts are used, the deficit will be filled up soon by the parts providing sections. This method prevents from excessive amount of parts which occupies the factory space or costs a lot of maintenance fee. On the other hand, this method enables "just in time," providing necessary parts in the necessary timing.
In conclusion, TOYOTA uses ANDON and KANBAN methods to assemble an appropriate number of quality cars in a complex system where one can not predict future.
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