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Kanban System For Toyota Outbound Logistics

The document discusses Toyota's use of a Kanban system for outbound logistics. Kanban systems were developed by Toyota to improve manufacturing efficiency through the use of cards that signal when materials move between stages. Specifically, Toyota uses a Transportation Kanban system to track all stages of the delivery process from assembly plants to customers. This process involves finished vehicles moving through marshalling yards, staging areas, loading areas, and transit before being delivered to dealers. Kanban helps Toyota measure lead times and identify issues at each stage of outbound logistics.

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Debopriyo Roy
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226 views2 pages

Kanban System For Toyota Outbound Logistics

The document discusses Toyota's use of a Kanban system for outbound logistics. Kanban systems were developed by Toyota to improve manufacturing efficiency through the use of cards that signal when materials move between stages. Specifically, Toyota uses a Transportation Kanban system to track all stages of the delivery process from assembly plants to customers. This process involves finished vehicles moving through marshalling yards, staging areas, loading areas, and transit before being delivered to dealers. Kanban helps Toyota measure lead times and identify issues at each stage of outbound logistics.

Uploaded by

Debopriyo Roy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Kanban System for Toyota Outbound Logistics

Kanban system is a scheduling system for lean manufacturing and just in time manufacturing. It was
developed by Taiichi Ohno, an industrial developer at Toyota, it was developed to improve
manufacturing efficiency. Cards are the key component of Kanban system and they give signal when
material move from one stage to another.

The two most important types of Kanban systems are:

 Production Kanban
 Transportation Kanban

Toyota uses Transportation Kanban system in outbound logistics to keep track of all stages in
delivery process. Kanban system highlights the problem areas by measuring the lead time and cycle
time of the full process and process steps. Kanban is best used as progress tracking tool in outbound
logistics for Toyota.

Toyota uses different types of delivery methods in different areas depending on volume of vehicles
to be delivered and where to be delivered. The most common distribution flow shows how vehicles
move from assembly plants to customers. This process is commonly known as outbound logistics.

Vehicles move through various stages during manufacturing and delivering to customers. Stages
included in outbound logistics are:

Stages:

1. Finished vehicles – This is the first stage in outbound logistics where vehicles are produced
in manufacturing unit. It is then made ready to be shuttled in marshalling yard.
2. Marshalling yard – This process is extremely important, as it ensures the efficient and timely
delivery of vehicles to their final destination. Vehicles which need to be equipped with
accessories are sent to installation staging and after that marshalling yard flow directly to
the rail or road staging areas.
3. Staging area - All Vehicles are parked in rail staging area or truckway staging area. There
are 2 modes of transport rail and road. Rail is used for long distance areas and truck is used
for nearby areas.
4. Loading area - All vehicles are loaded in rail and trucks. Trucking partner loads the
vehicle onto truck and begin their journey to deliver it to dealers.
5. In-transit - Usually it takes 2-3 days to deliver vehicles from loading area to dealers.
This movement comes under In-transit stage.
6. Delivered - It is the final stage where vehicle is successfully delivered and unloaded
to dealer showroom. From here it will be delivered to different customers.
An example of Kanban system can be used by Toyota is given below:

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