A Study of Implementing TPS Principles on Small/Medium Sized Continuous Factory
Date Issued
2008
Date
2008
Author(s)
Yang, Wayne Chia-Wei
Abstract
This thesis is a case study of a Taiwanese small/medium sized family owned nylon yarn production company. This company is in desperate situation in the face of China’s low price products. Therefore, a new strategy must be formed for the survival of this company. This thesis examines the practicality of Toyota Production System (TPS) implementation by this company. There are three main parts in this thesis: 1) industry analysis, 2) TPS implementation, and 3) cost benefit analysis.WOT analysis and Six Forces Analysis are performed on Taiwan’s Nylon yarn production industry. The results show that this industry should focus on differentiating from low price products and avoid head on price competition.his thesis uses Liker’s 14 management principles of the Toyota way to formulate a customized TPS for the case study company through observation, interviews, and recommendation. This section shows that the case study company should focus on 1) long term vision, 2) building a flexible production system, 3) respecting human resources, and 4) continuous improvement.he cost benefit analysis estimates potential cost and benefit of TPS implementation over the period of 12 months using the concept of Throughput Accounting. This analysis shows that the case study company can greatly benefit from TPS implementation and that positive results can be seen as soon as one month after TPS implementation. Short term benefit comes from the elimination of overproduction while long term benefit comes from building a flexible production system that can better satisfy customers.his case study also shows that 1) it is possible to transfer TPS to a different production environment. 2) It is also profitable for a Taiwanese family firm to adopt TPS. 3) Even though TPS will not change the outlook of an industry in a country, it will increase a company’s competitiveness. 4) A small/medium sized company can benefit from TPS as soon as 1 month after implementation.
Subjects
Toyota Production System (TPS)
Nylon Yarn
Family Firm
Lean Production
Type
thesis
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