3. 1897: Parent Organization
Early 2000’s:
“Toyoda” found by Sakichi
Toyota becomes
Toyoda
the most
8 profitable
1
automobile co
1933: Automobile
unit set up
2 1990’s: Toyota
7 expands it’s
overseas
operations
1947: Passenger 3
automobiles
manufacturing 6
started
1977: Production
4 techniques at Toyota
5 formally named TPS
1950: Taiichi Ohno
made production chief
1970: Toyota
benefited of oil crisis
(fuel efficient
engines)
4.
5. Challenges
Objectives
Lack of natural resources available in Japan
To provide quality automobile products
Low level of employee productivity, in the initial years,
Target 15% market share
average productivity of US workers 9 times Japenese
Capturing markets globally
workers
“Push” based production system
Emphasis on training & development of employees under
Jidoka. Employee productivity enhanced. Customers
Manufacturing time for 1 car reduced to 5 days as Quality products
compared to average 30 days of US companies Lower Costs
Change to “Pull” based production system, Just in Time Just in time delivery of goods
concept and Kanban leading to reduction in wastage and
Inventory, goods of superior quality Employees
Kaizen ensured the production process constantly Pride
improved Motivation
Wages
Employment and security
Investors
ROI
Pride
Security
Solution Benefits
6. Key aspects of TPS
KANBAN JIT (Pull System)
Refers to a card Producing and/or delivering only the necessary parts,
Is of 2 types: Withdrawal & Signal within necessary time in the necessary quantity using
Used to effectively control production quantities minimum necessary resources
Eliminates all Inventory and subsequent storage costs
Toyota Production System
KAIZEN JIDOKA & Human
perspectives
Means Continuous improvement Emphasis on observation
Reduction and elimination of waste Abnormalities to be addressed immediately
Includes error proofing or Poke-Yoke Empowering and entrusting workers with greater
Stresses on strong observation responsibilities and authority
Ohno’s concept of 5 Why’s Emphasis on quality training, cross functional training
Small but may not radical changes and development of workers
Decentralizing decision making to workers
Safety and morale of workers on priority
8. Deming Chain the Toyota way
Decrease Improve
costs productivity Provide
ROI
employment
Improve
quality Decrease Increase Stay in
price market business
11. How TPS was Reengineering
With outside-in ideas from visits Eliminating wastage through
Starting Doing more
to US, the entire production Kanban and thus reducing costs
Over system was revamped with Less
Beyond Valuing employees, prioritizing on
Impacted supply chain process
Process Impacted quality check process functional their safety, morale and
oriented development
boundaries
Continuous improvement through
Aimed at eliminating inventory Anxious Kaizen
Ambitious Continuous improvement (Kaizen) Managers mandated to give ideas to
and Tense
improve
Changed from a “Push” based to “Pull” Quality became a way of life
Rule based system Fundamental Wastage was completely
Breaking Disseminating authority to workers changes eliminated from the prod.
Strong relationship with suppliers process
Partnership with Cisco TPS praised by other companies
Creative use A Buzzword globally
technology to standardize
of IT trainings globally Rivals praised and keen to apply
TPS techniques to their own
Lead to creation of Lean
Manufacturing
12. Learning's
TPS
People & Partners Benchmarking Thinking a step Wastage
ahead
Respect, Train and An act of imitating Toyota experimented How wastage can be
Develop without in it’s production found in any
understanding system like move process/sub-
Entrust responsibility concept will lead to from push to pull processes and be
failure based system, eliminated
Empower and empowering
decentralize decision Patience is key to workers,
making success. TPS made decentralizing
things first worse, authority etc.
Value partners and then better. Hurt
suppliers morale made many
drop put
13. Development in recent years
• Imaged not as a Quality Car making company but as a Quality
company making cars.
• Toyota – Cisco technological Partnership to empower training
and standardize globally
• TSCC- Toyota’s institute to help organizations set up TPS
• Toyota recall for Corolla – Paddle Issues
