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TOYOTA PRODUCTION

SYSTEM

Submitted by: (Section: D)


Alliance Business School

Raunaq Chawla (08 PG 258)


Seshu Pinnamaneni (08 PG 270)
Vijay Pal Singh (08 PG 282)
Taiichi Ohno –
Father of Toyota
Production System
History
 Moving assembly line was the ideal model on
which Toyota based their production system
back in the 1940s
 Started lean manufacturing on the shop floor,
after World War II as a solution to a very real and
pressing problem
 After World War II when Japanese industry was
decimated, the Toyoda family decided to extend
Toyota Automatic Loom company to start an
automotive company. They had some cash but
did not have the infrastructure
 Under these conditions, Taiichi Ohno was given
the assignment of catching up with American
companies in productivity at a time when they
were behind
History (cont….d)
 Ohno drew upon a number of ideas from
the West and a lot of experimentation to
ultimately develop TPS
 Quality problem at Toyota led to
introduction of concept of “jidoka” – built in
quality
 After the 1973 oil crisis, Japan’s economy
collapsed to zero growth. Even Toyota
Motor Company suffered losses greater
earnings were sustained in 1975, 1976 and
1977 than at other Japanese companies –
which made Japan follow Toyota’s style
naming it as Toyota Production System
 Taiichi Ohno, Shigeo Shingo and Eiji
Toyoda developed the system between
1948 and 1975
7 Principles of TPS
Reduced set up times: organizing
procedures,  using carts, and
training workers to do their own
setups, helped in slashing setup
times from months to hours and
sometimes even minutes
Small -lot production: economically
produce larger variety and smaller
quantity
Employee involvement and
empowerment: formed teams and
7 Principles (cont….d)
 Quality at source: Since workers are at the
best position to find a defect and to
immediately fix it, they are assigned the
responsibility of eliminating defects as
early as possible.
 Equipment maintenance: responsibility of
maintenance assigned to workers
 Pull production: the quantity of work
performed at each stage of the process is
dictated solely by demand for materials
from the immediate next stage
 Supplier involvement: Suppliers are trained
in ways to reduce setup times, inventories,
defects, machine breakdowns etc., and
take responsibility to deliver their best
possible parts
Lean manufacturing –
precursor of TPS
TPS Concepts

1. JIDOKA: highlighting problems


 Means that a machine safely stops
when the normal processing is
completed
 Since a machine automatically stops
when processing is completed / when
a problem arises and is
communicated via the "andon
(problem display board)," operators
can confidently continue performing
work at another machine, as well as
Concept of “Jidoka”
TPS Concepts
2. JUST IN TIME: complete
elimination of waste
 When a order is received, production
instruction must be issued to the
beginning of the production line as soon
as possible
 The assembly line must be stocked with
small numbers of all types of parts so
that any kind of vehicle ordered can be
assembled
 The assembly line must replace the parts
used by retrieving same number of parts
from the parts-producing process
 The preceding process must be stocked
with small no. of all types of parts and
produce only the no. of parts required in
http://
www.toyota.co.jp/en/vision/production_system/video.html
Kanban system
Unique production control
method
Idea borrowed from super
markets so called “super market
method”
when a process goes to the
preceding process to retrieve
parts, it uses kanban signs to
communicate what parts have
been used
I
L
L
U
S
T
R
A
T
I
O
N

of

T
P
S
GOALS OF TPS
•Design out overburden(muri),
inconsistency(mura) & eliminate
waste(muda)
• Process of production is as flexible as
possible
• Follows 5 s approach- sieri(sort),
seiton(set in order), seiso(shine), seiketsu
(standardize), shitsuke(sustain)
• Participation of all employees in the
work process
• Elimination of imperfection or problem
so as to reduce inventory
OUTCOME OF TPS
•Reduction of lead time to a great
extent

• Improvement of quality

• One of ten largest companies in the


world

• Largets car manufacturer in 2007

• Low cost
Toyota’s spirit of “ making things” is being spread through
out the world as

“The Toyota
way”

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