Toyota Production System: A Brief History of Car Manufacturing

Toyota Production System
A Brief History of Car Manufacturing
 Invention of Automobile in 1880
 The Henry Ford Mass Production System
 The Toyota or Lean Production System

Invention of Automobile
 Carl Benz is generally given credit to
develop world first automobile in 1985
 Gotlib Daimler is also contemporary of

Carl Benz who is simultaneously
Carl Benze
developed the automobile with him.
 Other contemporaries are Wilhelm

Maybach and Seigfried Marcus known
for developing automobile later during
the same period.
Gotlib Daimler
Carl Benze
Gotlib Daimler
Replica of the Benz Patent Motorwagen built in 1886
Carl Benze
Gotlib Daimler Carl Benze First Motorcyle

Carl Benze
Gotlib Daimler
Carl Benze
Gotlib Daimler Carl Benze “Vilo” Model of 1894

Henry Ford’s Mass Production System
 In 1910 Henry Ford laid the foundation of first highly
organized assembly line system of automobile
manufacturing.
 He organized all the elements of a manufacturing
system-- people, machines, tooling, and products--
and arranged them in a continuous system called
conveyer system for manufacturing the Model-T
automobile.
 Ford was so incredibly successful he quickly became
one of the world's richest men and put the world on
wheels.
 Ford Motor Company produced “A-Bomber an Hour”
during WWII for USAF using the same concept.
Ford Motor Company’s Production Lines

Henry Ford Introduced Conveyer Belt System in Automotive Industry
A bomber an hour: Assembly in Ford Motor Company
B-24 bomber final assembly area at Ford Motor Company's Willow Run plant
Toyoda Family in Auto Industry

 The Allied victory and the massive quantities of material
behind it (“A Bomber an Hour” success) caught the attention
of Japanese industrialists.
 Toyoda family were among those Japanese industrialists who

were observing American industrial strength and wanted to
emulate it by investing in Automotive Industry.
Kiichiro Toyoda  Toyoda Automatic Loom Company, under the encouragement

of the Japanese government, which needed domestic vehicle
production partly due to the worldwide money shortage and
partly due to the war with China
 The Toyota Motor Corporation was founded in September

1933 when Toyoda Automatic Loom created a new division
devoted to the production of automobiles under the direction
of the founder's son, Kiichiro Toyoda.
The first production model AA in 1936
Toyota Learns From the Ford Motor Company
 Toyota found it difficult to emulate Ford Motor Company whose

production system was based on Mass Production System.
 Post WWII Japanese economy was in shambles and Toyota could

not afford Mass Production of vehicles due to smaller market size.
 Toyota’s top bosses begin to design a whole new concept of

Production System which is now also known as Just-in-Time
system.
 At Toyota Motor Company, Taichii Ohno and
Shigeo Shingo, are known as the brain
behind transforming Ford production and
other techniques into an approach called
Toyota Production System or Lean
Production System or Just-in-Time System.
Taichii Ohno
 Taichii Ohno was the Production Boss of

Toyota Motor Corporation and Shigeo Shigo
was industrial engineer and consultant of
Toyota Motor Corporation.
Shigeo Shingo
Ford vs. Toyota model of Production System
Can be best explained as:
Mass Production vs. Lean (JIT) Production

What is Mass Production System
Mass production is the name given to the

method of producing goods in large
quantities at low cost per unit.
This system of production is also known

as Push System or Just-in-Case System.
To make it worthwhile, mass production

requires mass consumption.
With precision equipment, large numbers

of identical parts could be produced at low
cost and with a small work force.
What is Lean Production System?
Lean Production System is the system

designed and evolved in Toyota Motor
Corporation.
It is the modified form of Henry Fords Mass
Production System. In some areas its
philosophy seem exactly opposite to the
fundamental principles of Mass Production
System.
This system is generally known as JIT
system, which in fact is an important pillar
of Lean Production System.
The slogan of Lean Production is “Less is
best”
Just-in-Time Jidoka (Automation)

• Leveled Production
• Andon-Fixed Position Stop
• Pull System System
• Pokayoke- Fail Proofing
• Continuous Flow
System
Processing
• Takt Time
• Flexible Work Force
• 3 Ms
• 5S
Standardized Work Kaizen (Continuous Improvement)

Just-in-Time (JIT) System
Just-in-Time means PRODUCING:
a) Only what is needed
b) in necessary quantity
c) at necessary time
Main Components of JIT

 Leveled Production
 Pull System
 Continuous Flow Processing
 Takt Time
 Flexible Workforce (Shojinka)
 3 Ms
 5S
Leveled Production means producing

various model variations on the same line
to cater the customer demand
Conveyer Belt
Leveled Production-Flexible Production Line

Pull System (Don’t Push)
Produce only when your customer

demands the product in the required
quantity.
Run the production according to this

demand
Pull System or Kanban System?

Continuous Flow Production
In TPS it means arranging work inside

each process to flow smoothly from one
step to other
Just-in-Case (JIC) Involves the use of buffer or safety stock
Buffer
or
Process A Safety Stock
Process B
Process C
Buffer
or
Safety Stock
Process A
Process B
Process C
Process A
Process B
Process C
Process A
Process B
Process C
Process A
Process B
Process C
Defect detected at
Process A
Process B that
actually
occurred at
Process A
Process B
Process C
Smooth Flow Processing
Process A Process B Process C

Smooth Flow Processing
Process A Process B Process C
Defect is detected and

countermeasures
are taken immediately
Takt Time: Takt is a German word meaning “meter”.
It is the time to finish a given amount of work-doing a single
operation, making one component, or assembling an entire car.
Total daily operating time

Takt time =
Total production requirement
480
Takt time = = 4.8 min/ vehicle
100
Flexible Workforce (Shojinka)

Flexible workforce or shojinka means to
alter (decrease or increase) the number of
operators within a shop, to equip with
demand changes.
Multi-machine Handling
Type of Part
A B C D
Machine (Lathing) 1 Unfinished Parts
Machine (Milling) 2
Machine (Drilling) 3
Machine (Tapping) 4 Finished Products
One person handles one process, four machines

Multi-process Handling
Type of Part
A B C D
Machine (Lathing) 1
Machine (Milling) 2
Machine (Drilling) 3
Machine (Tapping) 4
One person handles four processes, four machines

3 M’s
MUDA = Non-Value Added
MURA = Overburden
MURI = Unevenness
Muda . Mura . Muri
12 TONS
1 TON
4 ton
Capacity : 4 tons
X 2 = MURI (OVERBURDEN)
X 6= MUDA (NON-VALUE ADDED)
= MURA (UNEVENNESS)
The most efficient way to deliver 12 tons of good to the destination is:
NO MURI (OVERBURDEN)
X 3 = NO MUDA (NO WASTAGE)
NO MURA (NO UNEVENNESS)

5S
1. SEIRI = SIFTING
2. SEITON = SORTING
3. SEISO = SWEEPING
4. SEIKETSU = SPICK ‘N’ SPAN
5. SHITSUKE = SUSTAINANCE
SEIRI = SIFTING
Get rid off unwanted stuff from the workplace
Unwanted
TRASH
SEIRI = SIFTING
SIETON = SORTING
Arranging wanted items in proper order, which means place for
every thing and every thing in its place.
Boxes staked well Disorderly staking

sorted and orderly
manner
SIETON = SORTING
SIETON = SORTING
SIESO = SWEEPING AND CLEANING

Sweeping and cleaning means surface and other areas free from oil
and chemicals that may or may not cause slippage, fire or any
other possible hazard.
SEIKETSU = SPICK ‘N’ SPAN

Spick ‘n’ span means visible neatness. A nice, clean and tidy workplace
Affects directly to the performance and quality of workforce.
SEIKETSU = SPICK ‘N’ SPAN

SHITSUKE = SUSTAINANCE
Instilling supreme attitude and constantly reminding the
workforce about 5 S philosophy through training, competition,
encouragement by the top management.
Benefits of JIT
 Reduction of direct and direct labor by eliminating non-value added
activities
 Reduction of floor space and warehouse space per unit of output
 Reduction of setup time and schedule delays as the factory
becomes a continuous production process.
 Reduction is waste, rejects, and rework by detecting errors at the
source.
 Reduction of lead time due to small lot sizes, so that downstream
work centers provide feedback on quality problems.
 Better utilization of machines and facilities.
 Better relations with suppliers.
 Better integration of and communication between functions such as
marketing, purchasing, design, and production.
 Quality control built into the process.

Toyota Production System: A Brief History of Car Manufacturing

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Toyota Production System

A Brief History of Car Manufacturing

 Invention of Automobile in 1880

 The Henry Ford Mass Production System

 The Toyota or Lean Production System

 Gotlib Daimler is also contemporary of

 Other contemporaries are Wilhelm

Gotlib Daimler Carl Benze First Motorcyle

Gotlib Daimler Carl Benze “Vilo” Model of 1894

Ford Motor Company’s Production Lines

A bomber an hour: Assembly in Ford Motor Company

Toyoda Family in Auto Industry

 Toyoda family were among those Japanese industrialists who

Kiichiro Toyoda  Toyoda Automatic Loom Company, under the encouragement

 The Toyota Motor Corporation was founded in September

Toyota Learns From the Ford Motor Company

 Toyota found it difficult to emulate Ford Motor Company whose

 Post WWII Japanese economy was in shambles and Toyota could

 Toyota’s top bosses begin to design a whole new concept of

 Taichii Ohno was the Production Boss of

Ford vs. Toyota model of Production System

Can be best explained as:

Mass Production vs. Lean (JIT) Production

Mass production is the name given to the

This system of production is also known

To make it worthwhile, mass production

With precision equipment, large numbers

Lean Production System is the system

Toyota Production System

Just-in-Time Jidoka (Automation)

Standardized Work Kaizen (Continuous Improvement)

Just-in-Time (JIT) System

Just-in-Time means PRODUCING:

a) Only what is needed

Main Components of JIT

Leveled Production means producing

Leveled Production-Flexible Production Line

Pull System (Don’t Push)

Produce only when your customer

Run the production according to this

Pull System or Kanban System?

Continuous Flow Production

In TPS it means arranging work inside

Process A Process B Process C

Process A Process B Process C

Defect is detected and

Total daily operating time

Flexible Workforce (Shojinka)

Machine (Tapping) 4 Finished Products

One person handles one process, four machines

One person handles four processes, four machines

Muda . Mura . Muri

X 6= MUDA (NON-VALUE ADDED)

X 3 = NO MUDA (NO WASTAGE)

NO MURA (NO UNEVENNESS)

Boxes staked well Disorderly staking

SIESO = SWEEPING AND CLEANING

SEIKETSU = SPICK ‘N’ SPAN

SEIKETSU = SPICK ‘N’ SPAN

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