The Toyota Production System is thebenchmark used throughout theworld for “lean” thinking. Now youcan model your own processes after those ofthe company that “wrote the book on supplychain management.” Written by two experts on the subject, alongwith a former Toyota senior executive, thisbook details the most celebrated supply chainoperation in the world to help you form anintegrated, synchronized system that will bethe envy of your industry. You will find key insight into the logic behindevery point of Toyota’s supply chain, alongwith both the tactics and strategies you canuse to build an outstanding system of yourown. Toyota Supply Chain Management explainshow to achieve balance and efficiencyby focusing on: Variety : Determine your varietyof offerings based on operationalefficiency and market demand - Velocity : Maintain a steadyflow through all processes ofthe supply chain - Variability : Manage inconsistenciescarefully to reduce cost andimprove quality - Visibility : Ensure the transparencyof all processes to enable continuouslearning and improvement The authors provide valuable insider tipsand offer hands-on guidance for improvingproduction and operations in a variety ofindustries, including health care, insurance,banking, credit processing, and retailing. With careful attention paid to every aspectof the subject―from principles and theories tooperations and best practices― Toyota SupplyChain Management is the most comprehensive,insightful guide to forging a world-classsupply chain system. Sridhar Seshadri is a professor of operations management in the IROM Department at the McCombs School of Business, University of Texas at Austin. He has done extensive research on supply chain contracts and risk management. Roy Vasher is a former Toyota senior executive. Vasher played a leading role in Toyota’s North American and European initiatives to streamline the supply chain to reduce order-to-delivery lead time. Currently he is president of RPV Consulting, LLC. Top managementsecrets to buildinga world-classupply chain Three industry insiders cover every link in Toyota’s supply chain, explainingthe operations and the logic behind them. Toyota Supply Chain Management will help you design and oversee significant improvements to your supplychain, including Sales planing - Production scheduling - Supplier Management - Logistics - Parts ordering - Demand fulfillment The authors pool their extensive and well-rounded knowledge to provide“how-to” insights for applying the lessons of Toyota in any industry. Usingthis book as your guide, you can create operational efficiency by better connectingoffices, plants, facilities, and vendors. Apply the lessons of Toyota toensure your company leads the race for growth and profits in today’s competitiveeconomy. Seshadri received his PhD in Management Science at the University of California Berkeley in 1993 and has an MBA and undergraduate degree in Mechanical Engineering. His dissertation was on stochastic modeling of semiconductor manufacturing and he has consulting experience with Lancome and the Federal Home Loan Bank in New York. He teaches Operations Management and electives in the Stern School at NYU. Sridhar Seshadri is a professor of operationsmanagement in the IROM Departmentat the McCombs School of Business, Universityof Texas at Austin. He has done extensiveresearch on supply chain contracts and riskmanagement. Roy Vasher is a former Toyota seniorexecutive. Vasher played a leading rolein Toyota’s North American and Europeaninitiatives to streamline the supply chain toreduce order-to-delivery lead time. Currentlyhe is president of RPV Consulting, LLC. Roy Vasher is a former Toyota seniorexecutive. Vasher played a leading rolein Toyota’s North American and Europeaninitiatives to streamline the supply chain toreduce order-to-delivery lead time. Currentlyhe is president of RPV Consulting, LLC. TOYOTA SUPPLY CHAIN MANAGEMENT A STRATEGIC APPROACH TO THE PRINCIPLES OF TOYOTA'S RENOWNED SYSTEM By ANANTH V. IYER SRIDHAR SESHADRI ROY VASHER The McGraw-Hill Companies, Inc. Copyright © 2009 Ananth V. Iyer, Sridhar Seshadri, and Roy Vasher All right reserved. ISBN: 978-0-07-161549-5 Contents Chapter One Toyota Learning Principles and the v4L Framework Toyota is well known for its approach to problem solving and continuous improvement. Articles by practitioners, researchers, and participants have made the tools and techniques of continuous improvement familiar to every business executive. For example, phrases such as andon, heijunka, and kanban have become part of the day-to-day vocabulary of managers. In an insightful commentary on these tools and techniques, Jeffrey Liker writes that Toyota's success goes beyond these tools and techniques to what he calls "The Toyota Way." Liker presents the Toyota Way as an all-encompassing method for designing and managing processes. Every student of Toyota also knows that the Toyota Way i