5. History of TPS
• The Toyota Production System (TPS) is an integrated socio-technical system,
developed by Toyota, that comprises its management philosophy and
practices.
• The TPS organizes manufacturing and logistics for the automobile
manufacturer, including interaction with suppliers and customers.
• The system is a major precursor of the more generic methodology of 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, a set of
principles that defines the organization’s philosophies.
6. History of TPS
• The Toyota Production System, which is steeped in the philosophy of the
complete elimination of all waste, embodies all aspects of production in
pursuit of the most efficient methods, tracing back its roots to Sakichi
Toyoda’s automatic loom. The TPS has evolved through many years of trial
and error to improve efficiency.
• Waste can manifest as excess inventory in some cases, extraneous processing
steps in other cases, and defective products in yet other cases. All these
waste elements intertwine with each other to create more waste, eventually
impacting the management of the corporation itself.
• By practicing the philosophies of daily improvements and “good thinking,
good products” the methodology has evolved into a world-renowned
production system. Furthermore, all Toyota production divisions are making
improvements to the TPS day and night to ensure its continued evolution.
8. Just in time - JIT
• Just in Time (JIT), as the name suggests, is a management philosophy that calls for the
production of what the customer wants, when they want it, in the quantities requested,
where they want it, without it being delayed in inventory.
• So instead of building large stocks of what you think the customer might want you only
make exactly what the customer actually asks for when they ask for it. This allows you to
concentrate your resources on only fulfilling what you are going to be paid for rather
than building for stock.
• Within a Just in Time manufacturing system, each process will only produce what the
next process in sequence is calling for.
10. Jidoka
Jidoka is about quality at source, or built in quality; no company can survive without excellent quality of product and service
and jidoka is the route through which this is achieved.
The principle of Jidoka can be broken down into a few simple steps;
• Discover an abnormality
• STOP
• Fix the immediate problem
• Investigate and correct root cause
12. Heijunka
Heijunka (pronounced hi-JUNE-kuh) is a Japanese word that means
“leveling.” When implemented correctly, heijunka elegantly – and
without haste – helps organizations meet demand while reducing while
reducing wastes in production and interpersonal processes.
• “Leveling the type and quantity of production over a fixed period of
time.
• This enables production to efficiently meet customer demands while
avoiding batching and results in minimum inventories, capital costs,
manpower, and production lead time through the whole value stream.”
14. Standardized Work
• Standardized work is one of the most powerful but least used lean tools. By documenting
the current best practice, standardized work forms the baseline for kaizen or continuous
improvement.
• As the standard is improved, the new standard becomes the baseline for further
improvements, and so on. Improving standardized work is a never-ending process.
Basically, standardized work consists of three elements:
• Takt time, which is the rate at which products must be made in a process to meet
customer demand.
• The precise work sequence in which an operator performs tasks within takt time.
• The standard inventory, including units in machines, required to keep the process
operating smoothly.
16. Kaizen
“Kaizen” refers to a Japanese word which means “improvement” or “change for the better”. Kaizen is
defined as a continuous effort by each and every employee (from the CEO to field staff) to ensure
improvement of all processes and systems of a particular organization.
18. Benefits of TPS
The Toyota Production System empowers team members to optimise quality by constantly improving processes and
eliminating unnecessary waste in natural, human and corporate resources. Toyota Production System influences every
aspect of Toyota’s organisation and includes a common set of values, knowledge and procedures. It entrusts employees
with well-defined responsibilities in each production step and encourages every team member to strive for overall
improvement.
As a result, Toyota Production System delivers the following key benefits:
• Quality inherent in Toyota’s products
• Costs are kept to a minimum.
• Delivery is on time, and to the expected standard, allowing Toyota’s customers to plan and maintain their
operations successfully
• Environmental concerns are shared by Toyota and its customers, from manufacturing through to recycling at end-
of-life
• Safety is Toyota’s constant concern – both for its employees and for those of its customers.
23. AGENDA
Activity Duration
Power point Presentation 1 Hour 30 mins
Case Study reading and discussion 1 Hour
Class room activities 2 Hour
Toyota Documentary 30 mins
