The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices. The TPS is a management system that organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. The system is a major precursor of the more generic "lean manufacturing". Taiichi Ohno and Eiji Toyoda, Japanese industrial engineers, developed the system between 1948 and 1975. Originally called "Just-in-time production", it builds on the approach created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno. The principles underlying the TPS are embodied in The Toyota Way.
Goals The main objectives of the TPS are to design out overburden (muri) and inconsistency (mura), and to eliminate waste (muda). The most significant effects on process value delivery are achieved by designing a process capable of delivering the required results smoothly; by designing out "mura" (inconsistency). It is also crucial to ensure that the process is as flexible as necessary without stress or "muri" (overburden) since this generates "muda" (waste). Finally the tactical improvements of waste reduction or the elimination of muda are very valuable. There are eight kinds of muda that are addressed in the TPS:
Waste of overproduction (largest waste) Waste of time on hand (waiting) Waste of transportation Waste of processing itself Waste of excess inventory Waste of movement Waste of making defective products Waste of underutilized workers
Concept Toyota Motor Corporation published an official description of TPS for the first time in 1992; this booklet was revised in 1998. In the foreword it was said: "The TPS is a framework for conserving resources by eliminating waste. People who participate in the system learn to identify expenditures of material, effort and time that do not generate value for customers and furthermore we have avoided a 'how-to' approach. The booklet is not a manual. Rather it is an overview of the concepts, that underlie our production system. It is a reminder that lasting gains in productivity and quality are possible whenever and wherever management and employees are united in a commitment to positive change". TPS is grounded on two main conceptual pillars:
Just-in-time – meaning "Making only what is needed, only when it is needed, and only in the amount that is needed" Jidoka – (Autonomation) meaning "Automation with a human touch" Toyota has developed various tools to transfer these concepts into practice and apply them to specific requirements and conditions in the company and business.
Origins Toyota has long been recognized as a leader in the automotive manufacturing and production industry. Toyota received their inspiration for the system not from the American automotive industry (at that time the world's largest by far), but from visiting a supermarket. The idea of just-in-time production was originated by Kiichiro Toyoda, founder of Toyota. The question was how to implement the idea. In reading descriptions of American supermarkets, Ohno saw the supermarket as the model for what he was trying to accomplish in the factory. A customer in a supermarket takes the desired amount of goods off the shelf and purchases them. The store restocks the shelf with enough new product to fill up the shelf space. Similarly, a work-center that needed parts would go to a "store shelf" (the inventory storage point) for the particular part and "buy" (withdraw) the quantity it needed, and the "shelf" would be "restocked" by the work-center that produced the part, making only enough to replace the inventory that had been withdrawn. While low inventory levels are a key outcome of the System, an important element of the philosophy behind its system is to work intelligently and eliminate waste so that only minimal inventory is needed. Many Western businesses, having observed Toyota's factories, set out to attack high inventory levels directly without understanding what made these reductions possible. The act of imitating without understanding the underlying concept or motivation may have led to the failure of those projects.
Principles
The underlying principles, called the Toyota Way, have been outlined by Toyota as follows:
Continuous improvement Challenge (We form a long-term vision, meeting challenges with courage and creativity to realize our dreams.) Kaizen (We improve our business operations continuously, always driving for innovation and evolution). Genchi Genbutsu (Go to the source to find the facts to make correct decisions).
Respect for people Respect (We respect others, make every effort to understand each other, take responsibility and do our best to build mutual trust.) Teamwork (We stimulate personal and professional growth, share the opportunities of development and maximize individual and team performance.) Just-in-Time (JIT): produce what is needed, when it’s needed. Jidoka (Automation with a human touch): stop production when problems occur. External observers have summarized the principles of the Toyota Way as:
The right process will produce the right results Create continuous process flow to bring problems to the surface. Use the "pull" system to avoid overproduction. Level out the workload (heijunka). (Work like the tortoise, not the hare.) Build a culture of stopping to fix problems, to get quality right from the start. (Jidoka) Standardized tasks are the foundation for continuous improvement and employee empowerment. Use visual control so no problems are hidden. Use only reliable, thoroughly tested technology that serves your people and processes.
Add value to the organization by developing your people and partners Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. Develop exceptional people and teams who follow your company's philosophy. Respect your extended network of partners and suppliers by challenging them and helping them improve.
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