Assessment of Production Costs in Toyota Production System Simulation Based on Makespan

Abstract

This study examines the impact of makespan on production costs by comparing the Toyota Production System through simulations with three scheduling algorithms: the Initial Method, Simulated Annealing (SA), and Tabu Search (TS). This analysis explores the makespan, total production costs, and unit costs across three varying demand levels. Results show that SA and TS achieve a lower makespan than the Initial Method, although their total production costs are slightly higher. However, as demand increases, unit costs decrease in SA and TS, suggesting improved economies of scale with these methods. These findings highlight critical trade-offs between time and cost, emphasizing the importance of aligning scheduling choices with the company’s strategic goals. Additionally, the study addresses managerial aspects such as Break-even analysis, production constraints, and technology investments. Limitations include a restricted demand range and the exclusion of external factors, suggesting areas for further research on production quality in manufacturing.

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