Toyota Production System Analysis of PR PDF

TPS PROJECT.
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UNIVERSITY OF MUMBAI
NCRD’S
STERLING COLLEGE OF ARTS, COMMERCE & SCIENCE
NERUL, NAVI MUMAI
COLLEGE CODE: 0552
PROJECT REPORT ON
“TOYOTA PRODUCTION SYSTEM – ANALYSIS OF
PRODUCTION PRINCIPLES AND PROCESSES IN
TOYOTA MOTOR CORPORATION”
SUBMITTED BY
“TUHIL GOSWAMI”
PROJECT GUIDEANCE
PROF. MANASI KILEDAR
IN PARTIAL FULFILLMENT FOR THE COURSE OF
BACHELOR OF MANAGEMENT STUDIES (B.M.S)
T.Y.B.M.S (SEMESTER V)
ACADEMIC YEAR 2015 - 2016
[1]
DECLARATION
I TUHL GOSWAMI OF NCRD’S STERLING COLLEGE OF ARTS, COMMERCE

& SCIENCE, studying in B.M.S (Semester V) hereby declare that I have complete this
project report on “TOYOTA PRODUCTION SYSTEM – ANALYSIS OF PRODUCTION
PRINCIPLES AND PROCESSES IN TOYOTA MOTOR CORPORATION”
And has not been submitted to any other University of Institute for the award of any
degree, diploma etc. The information is submitted by me is true and original to the best of my
knowledge.
Date: ____________ ______________________

Place: Nerul Navi Mumbai (TUHIL GOSWAMI)
[2]
ACKNOWLEDGEMENTS
I am thankful to STERLING INSTITUTE OF ARTS, COMMERCE AND

SCIENCE for giving me an opportunity to work on the project. I am highly
thankful to my esteemed guide PROF MANASI KILEDAR for her support
throughout the completion of this project.
[3]
NCRD’S
STERLING COLLEGE OF ARTS, COMMERCE & SCIENCE
NERUL, NAVI MUMAI
CERTIFICATE
This is to certify that Mr Tuhil Goswami of Bachelor of Management

Studies has undertaken and completed the project work titled ““TOYOTA
PRODUCTION SYSTEM – ANALYSIS OF PRODUCTION PRINCIPLES
AND PROCESSES IN TOYOTA MOTOR CORPORATION” during the
academic year 2015 – 2016 under the guidance of Prof. MANASI KILEDAR
submitted on ____________ to this college in fulfilment of the curriculum Of
Bachelor of Management Studies University of Mumbai.
This is a bonafide project work and the information presented is true and
original to the best of our knowledge and belief.
PROJECT GUIDE COURSE CO-ORDINATOR
(____________________) (_________________________)
PRINCIPAL EXTERNAL GUIDE
[4]
(________________) (_______________)
CONTENTS
1. SUMMARY - TOYOTA MANAGEMENT PRACTICES

2. INRODUCTION – LEAN MANUFACTURING _
3. INTRODUCTION – TOYOTA PRODUCTION SYSTEM
4. HISRORY – TOYOTA PRODUCTION SYSTEM _
5. TOYOTA WAY
6. TOYOTA BUILDING BLOCKS
 LONG TERM PHILOSOPHY
 DEVELOPING PEOPLE
 SOLVING ROOT PROBLEMS
 ONE PIECE FLOW
 PULL SYSTEMS
 TOYOTA’S SIX RULES
 HEIJUNKA
 QUALITY
 STANDARDISATION
 5 S
 CONTINUOUS IMPROVEMENT
 LEADERSHIP
 MANAGING PEOPLE
 VENDOR MANAGEMENT
 LEARNING ORGANISATIONE
 PERFORMANCE MEASUREMENT
 WORK CULTURE
7. TPS CONCEPTS
 JIDOKA
CONTENTS (CONTD...)
 JIT
 POKA YOKE
 MURA MURI
8. ELIMINATION OF WASTES IN LEAN MANUFACTURING
9. TOYOTA MISSION AND VISION _
10. ILLUSTRATION OF TOYOTA PRODUCTION SYSTEM
11. HISTORY OF TOYOTA MOTORS _
12. FACTS ABOUT TOYOTA MOTOR CORPORATION
13. HISTORY OF KIRLOSKAR GROUP
[5]
14. INTRRODUCTION – TOYOTA KIRKLOSKAR MOTORS
15. TOYOTA PRODUCT LINE IN INDIA
16. IMPLEMENTATION OF TOYOTA PRODUCTION SYSTEM
17. SOCIAL CONTRIBUTION
18. TMMK PLANT TOUR
19. TOYOTA AND ENVIRONMENT
20. DISTINGUISHING FEATURES ( REASONS TO BUY)
21. RESEARCH FINDINGS
22. TOYOTA PRODUCTS
23. TOYOTA AWARDS
24. RECOMMENDATION
25. CONCLUSION
26. BIBLIOGRAPHY
EXECUTIVE SUMMARY
Toyota’s Management Practices
Toyota's management philosophy has evolved from the company's origins and has been
reflected in the terms "Lean Manufacturing" and Just in Time Production, which it was
instrumental in developing. Toyota's managerial values and business methods are known
collectively as the Toyota Way.
In April 2001, Toyota adopted the "Toyota Way 2001", an expression of values and conduct
guidelines that all Toyota employees should embrace.
Under the two headings of Respect for People and Continuous Improvement, Toyota
summarizes its values and conduct guidelines with the following five principles:
 Challenge
 Kaizen (improvement)
 Genchi genbutsu (go and see)
 Respect
 Teamwork
[6]
According to external observers, the Toyota Way has four components:
 Long-term thinking as a basis for management decisions
 A process for problem-solving
 Adding value to the organization by developing its people
 Recognizing that continuously solving root problems drives organizational learning
[7]
LEAN MANUFACTURING
Lean principles are derived from Japanese Manufacturing Industry.
Lean manufacturing or lean production, often simply "lean", is a systematic method for the
elimination of waste ("Muda") within a manufacturing system. Lean also takes into account
waste created through overburden ("Muri") and waste created through unevenness in
workloads ("Mura"). Working from the perspective of the client who consumes a product or
service, "value" is any action or process that a customer would be willing to pay for.
[8]
Essentially, lean is centred on making obvious what adds value by reducing everything else.
For many, lean is the set of "tools" that assist in the identification and steady elimination of
waste (muda). As waste is eliminated quality improves while production time and cost are
reduced. A non exhaustive list of such tools would include: SMED, value stream
mapping, Five S, Kanban (pull systems), poka-yoke (error-proofing), total productive
maintenance, elimination of time batching, mixed model processing, rank order clustering,
single point scheduling, redesigning working cells, multi-process handling and control
charts (for checking mura).
Lean manufacturing is a management philosophy derived mostly from the Toyota Production
System (TPS) (hence the term Toyotism is also prevalent) and identified as "lean" only in the
1990s. TPS is renowned for its focus on reduction of the original Toyota seven wastes to
improve overall customer value, but there are varying perspectives on how this is best
achieved. The steady growth of Toyota, from a small company to the world's largest
automaker, has focused attention on how it has achieved this success.
There is a second approach to lean manufacturing, which is promoted by Toyota, called The
Toyota Way, in which the focus is upon improving the "flow" or smoothness of work, thereby
steadily eliminating mura ("unevenness") through the system and not upon 'waste reduction'
per se. Techniques to improve flow include production levelling, "pull" production (by means
of kanban) and the Heijunka box. This is a fundamentally different approach from most
improvement methodologies, and requires considerably more persistence than basic
application of the tools, which may partially account for its lack of popularity.
[9]
TOYOTA PRODUCTION SYSTEM
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 "lean
manufacturing." Ohno, and Eiji Toyoda 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.
[10]
A Brief History of Toyota Production System
Toyota developed the Toyota Production System after World War II. While Ford and GM
used mass production, economies of scale, and big equipment to produce as many parts as
possible, as cheaply as possible, Toyota's market in post-war Japan was small. Toyota also
had to make a variety of vehicles on the same assembly line to satisfy its customers. By
making lead times short and focusing on keeping production lines flexible, Toyota realized it
could actually get higher quality, better customer responsiveness, better productivity, and
better utilization of equipment and space.
A basic premise of mass production is that machine downtime is obvious waste. A machine
shut down for repair is not making parts that could make money. But TPS has challenged this
notion.
Often the best thing you can do is to idle a machine and stop producing parts. Over
production, is a fundamental waste in TPS.
Often it is best to build up an inventory of finished goods in order to level out the production
schedule, rather than produce according to the actual fluctuating demand of customer orders.
Levelling out the schedule (heijunka) is a foundation for flow and pull systems and for
minimizing inventory in the supply chain. Levelling production smoothes out the volume and
mix of items produced so there is little variation in production from day to days.
Often it is best to selectively add and substitute overhead for direct labour. When waste is
stripped away from value-adding workers, high-quality support has to be provided for them.
It may not be a top priority to keep your workers busy making parts as fast as possible.
Companies should produce at the rate of customer demand.
Working faster just for the sake of getting the most out of workers may be counterproductive.
It is best to selectively use information technology and often better to use manual processes
even when automation is available and would seem to justify its cost in reducing your
headcount. People are the most flexible resource.
[11]
The manual process must be streamlined before it is automated. TPS starts with the customer,
by asking, "What value are we adding from the customer's perspective?" Because the only
thing that adds value in any type of process- be it in manufacturing, marketing, or a
development process-is the physical or information transformation of that product, service, or
activity into something the customer wants.
TPS is all about commitment to continuously investing in its people and promoting a culture
of continuous improvement. When Toyota sets up assembly lines, it selects only the best and
brightest workers, and challenges them to grow in their jobs by constantly solving problems.
Similarly, Toyota staffs sales, engineering, service parts, accounting, human resources, and
every aspect of the business with carefully selected individuals and empowers them to
improve their processes and find innovative ways to satisfy their customers.
Toyota is a true learning organization that has been evolving and learning for most part of a
century. Many U.S. companies have embraced lean tools but do not understand what makes
them work together in a system. They do not understand the power behind true TPS. That lies
in Toyota’s continuous improvement culture.
[12]
TOYOTA WAY
The Toyota Way incorporates the Toyota Production System
A Brief History
The roots of the Toyota Way can be traced back to Sakichi Toyoda, a tinkerer and inventor,
who grew up in the late 1800s in a remote farming community outside of Nagoya. As a boy,
Toyoda learned carpentry from his father and started designing and building wooden spinning
machines. In 1894 he began to make manual looms that were cheaper and more efficient than
existing looms. Toyoda’s mother, grandmother, and their friends worked hard spinning and
weaving. To relieve them of this punishing labour, he set out to develop power-driven
wooden looms. Toyoda eventually developed sophisticated automatic power looms. Among
his inventions was a special mechanism to automatically stop a loom whenever a thread
broke. This invention led to the concept of jidoka (automation with a human touch). If
Sakichi Toyoda put his mark on the industrial world through loom making, Just-In-Time was
his son Kiichiro Toyoda's contribution. His ideas were influenced by a study trip to Ford's
plants in Michigan to see the automobile industry Kiichiro was also inspired by the U.S.
supermarket system of replacing products on the shelves just in time as customers purchased
them.
[13]
After World War II, the Americans realized the need for trucks in order to rebuild Japan and
even helped Toyota to start building trucks again. As the economy gained momentum, Toyota
had little difficulty getting orders for automobiles. But rampant inflation made money
worthless and collections became very difficult. As the cash crunch worsened, Toyota
adopted strict cost-cutting policies, including voluntary pay cuts by managers and a 10
percent cut in pay for all employees.
Even before the Second World War, Toyota had realized that the Japanese market was too
small and demand too fragmented to support the high production volumes in the U.S. Toyota
realized that to survive in the long run, it would have to adapt the mass production approach
for the Japanese market. Bigger rivals like Ford had tons of cash and a large U.S. and
international market. Toyota had no cash and operated in a small country. With few resources
and capital, Toyota needed to turn cash around quickly. Ford had a complete supply system,
Toyota did not. Toyota didn't have the luxury of taking cover under high volume and
economies of scale afforded by Ford's mass production system. It needed to adapt Ford's
manufacturing process to achieve simultaneously high quality, low cost, short lead times, and
flexibility. Toyota needed to churn out low volumes of different models using the same
assembly line, because consumer demand in Japan was too low to support dedicated
assembly lines for one vehicle.
Most businesses use processes that are filled with waste, because work in Step 1 is performed
in large batches before it is needed by Step 2. This "work in process" must then be stored and
tracked and maintained until needed by step 2. TPS is a "pull system", in which every step of
every manufacturing process has the equivalent of a "gas gauge" built in, (called kanban), to
signal to the previous step when its parts need to be replenished. This creates "pull" which
continues cascading backwards to the beginning of the manufacturing cycle.
The Toyota Way is a set of principles and behaviours that underlie the Toyota Motor
Corporation's managerial approach and production system. Toyota first summed up its
philosophy, values and manufacturing ideals in 2001, calling it "The Toyota Way 2001". It
consists of principles in two key areas: continuous improvement, and respect for people.
The two focal points of the principles are continuous improvement and respect for people.
The principles for a continuous improvement include establishing a long-term vision,
working on challenges, continual innovation, and going to the source of the issue or problem.
The principles relating to respect for people include ways of building respect and teamwork.
[14]
Toyota’s Building Blocks
The 14 principles of The Toyota Way are organized in four sections: (1) long-term
philosophy, (2) the right process will produce the right results, (3) add value to the
organization by developing your people, and (4) continuously solving root problems drives
organizational learning.
Principle 1. Base your management decisions on a long-term philosophy, even at the expense
of short-term financial goals.
Principle 2. Create continuous process flow to bring problems to the surface.
Principle 3. Use “pull" systems to avoid overproduction.
Principle 4. Level out the workload (heijunka).
Principle 5. Build a culture of stopping to fix problems, to get quality right the first time.
Principle 6. Standardized tasks are the foundation for continuous improvement and
employee empowerment.
Principle 7. Use visual control so no problems are hidden.
Principle 8. Use only reliable, thoroughly tested technology that serves your people and
processes.
Principle 9. Grow leaders who thoroughly understand the work, live the philosophy, and
teach it to others.
Principle 10. Develop exceptional people and teams who follow your company's philosophy.
Principle 11. Respect your extended network of partners and suppliers by challenging them
and helping them improve
Principle 12. Go and see for yourself to thoroughly understand the situation (genchi
genbutsu).
Principle 13. Make decisions slowly by consensus, thoroughly considering all options;
implement decisions rapidly.
Principle 14. Become a learning organization through relentless reflection (hansei) and
continuous improvement (kaizen).
[15]
Long-term philosophy
The first principle involves managing with a long-view rather than for short-term gain. It
reflects a belief that people need purpose to find motivation and establish goals.
Right process will produce right results

The next seven principles are focused on process with an eye towards quality outcome.
Following these principles, work processes are redesigned to eliminate waste (muda) through
the process of continuous improvement — kaizen. The seven types of muda are (1)
overproduction; (2) waiting, time on hand; (3) unnecessary transport or conveyance; (4) over
processing or incorrect processing; (5) excess inventory; (6) motion; and (7) defects.
The principles in this section empower employees in spite of the bureaucratic processes of
Toyota, as any employee in the Toyota has the authority to stop production to signal a quality
issue, emphasizing that quality takes precedence (Jidoka). The way the Toyota bureaucratic
system is implemented to allow for continuous improvement (kaizen) from the people
affected by that system so that any employee may aid in the growth and improvement of the
company.
Recognition of the value of employees is also part of the principle of measured production
rate (heijunka), as a level workload helps avoid overburdening people and equipment (muri),
but this is also intended to minimize waste (muda) and avoid uneven production levels
(mura).
These principles are also designed to ensure that only essential materials are employed (to
avoid overproduction), that the work environment is maintained efficiently (the 5S Program)
to help people share work stations and to reduce time looking for needed tools, and that the
technology used is reliable and thoroughly tested.
[16]
Value to organization by developing people
Human development is the focus of principles 9 through 11. Principle 9 emphasizes the need
to ensure that leaders embrace and promote the corporate philosophy. This reflects, according
to Liker, a belief that the principles have to be ingrained in employees to survive. The 10th
principle emphasizes the need of individuals and work teams to embrace the company's
philosophy, with teams of 4-5 people who are judged in success by their team achievements,
rather than their individual efforts. Principle 11 looks to business partners, who are treated by
Toyota much like they treat their employees. Toyota challenges them to do better and helps
them to achieve it, providing cross functional teams to help suppliers discover and fix
problems so that they can become a stronger, better supplier.
Solving root problems drives organizational learning

The final principles embrace a philosophy of problem solving that emphasizes thorough
understanding, consensus-based solutions swiftly implemented and continual reflection
(hansei) and improvement (kaizen). The 12th principle (Genchi Genbutsu) sets out the
expectation that managers will personally evaluate operations so that they have a firsthand
understanding of situations and problems. Principle 13 encourages thorough consideration of
possible solutions through a consensus process, with rapid implementation of decisions once
reached (nemawashi). The final principle requires that Toyota be a "learning organization",
continually reflecting on its practices and striving for improvement. According to Liker, the
process of becoming a learning organization involves criticizing every aspect of what one
does.
[17]
Towards one piece flow
To become lean, companies have to create continuous flow wherever applicable. Flow also
tends to force the implementation of a lot of the other lean tools and philosophies such as
preventive maintenance. Creating flow exposes inefficiencies that demand immediate
solutions. Everyone concerned is motivated to fix the problems and inefficiencies because the
plant will shut down if they don't. Traditional business processes, in contrast, have the
capacity to hide vast inefficiencies without anyone noticing. Flow means that a customer
order triggers the process of obtaining the raw materials needed just for that customer's order.
The raw materials then flow immediately to supplier plants, where workers immediately fill
the order with components, which flow immediately to a plant, where workers assemble the
order, and then the completed order flows immediately to the customer. The whole process
should take a few hours or days, rather than a few weeks or months. In a large batch
operation, there are probably weeks of work in process between operations and it can take
weeks or even months from the time a defect is caused until it is discovered. By then it is
nearly impossible to track down and identify why the defect occurred. By making a product
flow, we can set in motion numerous activities to eliminate all muda (wastes). In lean
thinking, the ideal batch size is one. Creating flow means linking together operations that
otherwise are disjointed. There is more teamwork, rapid feedback on earlier quality problems,
control over the process, and direct pressure for people to solve problems and think and grow.
Ultimately, the main benefit of one-piece flow is that it challenges people to think and
improve.
Quality - It is much easier to build in quality in one-piece flow. Every operator is an

inspector and works to fix any problems in station before passing them on. But if defects do
get missed and passed on, they will be detected very quickly and the problem can be
immediately diagnosed and corrected.
[18]
Pull Systems (Kanban)
Kanban is a system to control the logistical chain from a production point of view, and is an
inventory control system. Kanban was developed by Taiichi Ohno, an industrial
engineer at Toyota, as a system to improve and maintain a high level of production. Kanban
is one method to achieve JIT.
Kanban became an effective tool to support running a production system as a whole, and an
excellent way to promote improvement. Problem areas are highlighted by reducing the
number of kanban in circulation.
[19]
One of the main benefits of kanban is to establish an upper limit to the work in progress
inventory, avoiding overloading of the manufacturing system. Kanban aligns inventory levels
with actual consumption. A signal tells a supplier to produce and deliver a new shipment
when material is consumed. These signals are tracked through the replenishment cycle,
bringing visibility to the supplier, consumer, and buyer.
Kanban uses the rate of demand to control the rate of production, passing demand from the
end customer up through the chain of customer-store processes. In 1953, Toyota applied this
logic in their main plant machine shop.
Kanban is part of an approach where the "pull" comes from demand. Re-supply or production
is determined according to the actual demand of the customer. In contexts where supply time
is lengthy and demand is difficult to forecast, often, the best one can do is to respond quickly
to observed demand. This situation is exactly what a kanban system accomplishes, in that it is
used as a demand signal that immediately travels through the supply chain. This ensures that
intermediate stock held in the supply chain is better managed, and are usually smaller. Where
the supply response is not quick enough to meet actual demand fluctuations, thereby causing
potential lost sales, stock building may be deemed more appropriate, and is achieved by
placing more kanban in the system.
Taiichi Ohno stated that, to be effective, kanban must follow strict rules of use. Toyota, for
example, has six simple rules, and close monitoring of these rules is a never-ending task,
thereby ensuring that the kanban does what is required.
Toyota's Six Rules

 Later process picks up the number of items indicated by the kanban at the earlier
process.
 Earlier process produces items in the quantity and sequence indicated by the kanban.
 No items are made or transported without a kanban.
 Always attach a kanban to the goods.
[20]
 Defective products are not sent on to the subsequent process. The result is 100%
defect-free goods.
 Reducing the number of kanban increases the sensitivity.
Kanban cards are a key component of kanban and they signal the need to move materials
within a production facility or to move materials from an outside supplier into the production
facility. The kanban card is, in effect, a message that signals depletion of product, parts, or
inventory. When received, the kanban triggers replenishment of that product, part, or
inventory. Consumption, therefore, drives demand for more production, and the kanban card
signals demand for more products—so kanban cards help create a demand-driven system.
Heijunka
Production levelling is also known as production smoothing or – by its Japanese original

term – heijunka is a technique for reducing the Mura (Unevenness) which in turn
reduces muda (waste). It was vital to the development of production efficiency in the Toyota
Production System and lean manufacturing. The goal is to produce intermediate goods at a
constant rate so that further processing may also be carried out at a constant and predictable
rate.
On a production line, as in any process, fluctuations in performance increase waste. This is

because equipment, workers, inventory and all other elements required for production must
always be prepared for peak production. This is a cost of flexibility. If a later process varies
its withdrawal of parts in terms of timing and quality, the range of these fluctuations will
increase as they move up the line towards the earlier processes. This is known as demand
amplification.
Toyota's final assembly line never assembles the same automobile model in a batch. Instead,
they level production by assembling a mix of models in each batch and the batches are made
as small as possible. This is in contrast to traditional mass production, where long changeover
[21]
times meant that it was more economical to punch out as many parts in each batch as
possible. When the final assembly batches are small, then earlier process batches, such as the
press operations, must also be small and changeover times must be short.
Implementation
1. Implement green stream/red stream or fixed sequence, fixed volume to establish

the entry and exit criteria for products from these streams and establish the supporting
disciplines in the support services. The cycle established will produce Every Product
Every Cycle (EPEC). This is a specific form of Fixed Repeating Schedule. Green
stream products are those with predictable demand, Red stream products are high
value unpredictable demand products.
2. Faster fixed sequence with fixed volume keep the streams the same but use the now
established familiarity with the streams to maximise learning and improve speed of
production (economies of repetition). This will allow the shortening of the EPEC
cycle so that the plant is now producing every product every 2 weeks instead of month
and then later on repeating every week. This may require support services to speed up
as well.
3. Fixed sequence with unfixed volume keep the stream sequences the same but now
phase in allowing actual sales to influence volumes within those sequences. This
affects inbound componentry as well as support services. This is a more generalised
form of Fixed Repeating Schedule.
4. Unfixed sequence with fixed volume the stream sequences, and EPEC, can now be
gradually flexed but move to small fixed batch sizes to make this more manageable.
5. Unfixed sequence with unfixed volume finally move to true single piece flow and
pull by reducing batch sizes until they reach one.
[22]
Quality
Toyota’s philosophy is to identify defects when they occur and automatically stop production
so that the problem can be fixed before the defect continues downstream. Jidoka is also
referred to as autonomation – equipment endowed with human intelligence to stop itself
when it has a problem. In-station quality (preventing problems from being passed down the
line) is much more effective and less costly than inspecting and repairing quality problems
after the fact. The last thing management in traditional mass manufacturing allows is a halt in
production. Bad parts are simply labelled and set aside to be repaired at another time and by
another department. The mantra is to produce large quantities at all costs and fix problems
later. Lean manufacturing dramatically increases the importance of building things right the
first time. With very low levels of inventory, there is no buffer to fall back on in case there is
a quality problem. Problems in operation A will quickly shut down operation B. When
equipment shuts down, flags or lights, usually with accompanying music or an alarm, are
used to signal that help is needed to solve a quality problem.
Andon refers to the light signal for help.
Toyota follows a different approach. Toyota keeps things simple and uses very few complex
statistical tools. The quality specialists and team members have just four key tools:
 Go and see.
 Analyze the situation.
 Use one-piece flow and andon to surface problems.
 Ask "Why?" five times.
Andon works only when employees know the importance of bringing problems to the surface.
Unless there is a problem-solving process already in place and people are following it, there's
no point in spending money on fancy technology. Toyota prefers to first use people and
processes to solve problems, then supplement and support its people with technology. A
common Toyota quality tactic is to anticipate problems as early as possible and put in place
countermeasures before the problems even occur. Occasionally a time-out is required to
reflect on the purpose and direction of the project before moving on. The Toyota Way
emphasises stopping or slowing down to get quality right the first time to enhance
productivity in the long run.
[23]
Standardisation
Toyota believes standardized work is the basis for empowering workers and innovation in the
work place. If the process is shifting, then any improvement will just be one more variation
that is occasionally used and mostly ignored. One must standardize, and thus stabilize the
process, before continuous improvements can be made. Workers follow very detailed
standardized procedures that touch every aspect of the organization. In the workplace,
everything must be in its place. There is strict discipline about time, cost, quality ... and
safety-virtually every minute of the day is structured. But Toyota also values many of the
characteristics associated with flexible organizations referred to as "organic": extensive
employee involvement, a lot of communication, innovation, flexibility, high morale, and a
strong customer focus. Standardisation does not necessarily imply a bureaucratic approach. A
coercive bureaucracy uses standards to control people, catch them breaking the rules, and
punish them to get them back in line. Unlike Taylorism, the Toyota Way preaches that the
worker is the most valuable resource-not just a pair of hands taking orders, but an analyst and
problem solver. Toyota’s enabling systems are simply the best practice methods, designed and
improved upon with the participation of the work force. The standards actually help people
control their own work.
The critical task when implementing standardization is to find that balance between providing
employees with rigid procedures to follow and providing the freedom to innovate and be
creative to meet challenging targets consistently for cost, quality, and delivery. The key to
achieving this balance lies in the way people write standards as well as who contributes to
them. First, the standards have to be specific enough to be useful guides, yet general enough
to allow for some flexibility. Second, the people doing the work have to improve the
standards. Nobody likes rules and procedures when they are imposed on them. Imposed rules
that are strictly policed become coercive and a source of friction and resistance between
management and workers.
[24]
The 5S
The five Ss (seiri, seiton, seiso, seiketsu, and shitsuke) are:
1. Sort-Sort through items and keep only what is needed while disposing of what is not.
2. Straighten (orderliness}- A place for everything and everything in its place.
3. Shine (cleanliness)- The cleaning process often acts as a form of inspection that exposes
abnormal and pre-failure conditions that could hurt quality or cause machine failure.
4. Standardize (create rules}-Develop systems and procedures to maintain and monitor the
first three S's.
5. Sustain (self-discipline}-Maintaining a stabilized workplace is an ongoing process of

continuous improvement.
[25]
CONTIUOUS IMPROVEMENT PROCESS
1. Set ground rules
2. Identify customer requirements
3. Define success
4. Process Mapping
5. Map current state process
6. Debrief (Plus / Delta)
7. Check-in meeting
8. Review agenda, ground rules, and check-in report
9. Complete current state map
10. Assign task and wait time and characterize process
11. Identify value added steps, wastes, & pain points
[26]
CONTIUOUS IMPROVEMENT PROCESS (CONTD...)
12. Identify root causes of problems
13Brainstorm ideas to improve the process
15. Check-in meeting
17. Evaluate and select improvements
18. Take Team photo
19. Map the future state process
20. Assign task and wait time and characterize process
21. Identify performance measures
22. Prepare an Action Plan
24. Check-in meeting
26. Finish up work from the prior day
27. If there is time:
 Identify project risks and prepare mitigation steps
 Revise forms/templates
 Prepare communication plan
 Implement Quick Hits
28. Prepare report out presentation
29. Deliver report out presentation
30. Celebrate!
[27]
Leadership
Toyota’s leaders are home grown. Leaders must live and thoroughly understand the
company’s culture day by day. A critical element of the culture is genchi genbutsu, which is
interpreted within Toyota to mean going to the place to see the actual situation for
understanding. Gemba, the more popular term, refers to "the actual place" and means about
the same thing as genchi genbutsu. The first step of any problem-solving process,
development of a new product, or evaluation of an associate's performance is grasping the
actual situation, which requires "going to gemba."
Toyota promotes and expects creative thinking, but it should be grounded in a thorough
understanding of all aspects of the actual situation. Leaders must demonstrate this ability and
understand how work gets done at a shop floor level. Toyota believes that, a superficial
impression of a situation will lead to ineffective decision-making and leadership. Someone
trained in the Toyota Way, takes nothing for granted and knows what he is talking about,
because it comes from firsthand knowledge.
Toyota leaders are passionate about involving people who are doing the value-added work in
improving the process. Yet encouraging employee involvement by itself is not enough to
define a Toyota leader. In-depth understanding of the work in addition to general
management expertise is also needed. So Toyota leaders are respected for their technical
knowledge as well as followed for their leadership abilities. Instead of giving orders, they
lead and mentor through questioning. They will raise questions about the situation and the
person’s strategy for action, but they will not give answers to these questions even though
they may have the knowledge.
Toyota believes in making decisions slowly by consensus by thoroughly considering all

options and then implementing them rapidly. Nemawashi is the process by which junior
people build consensus by developing a proposal and circulating it broadly for management
approval. In the nemawashi process, many people give their input and this generates
consensus. By the time the formal proposal comes up for a high-level approval, the decision
is already made. Agreements have been reached and the final meeting is a formality.
[28]
Managing people
Stage 1: Orientation. The group needs strong direction from the leader and must understand
the basic mission, rules of engagement, and tools the members will use.
Stage 2: Dissatisfaction. After going to work, the members discover it is harder than they
thought to work as a team. In this stage, they continue to need strong direction (structure)
from the leader but also need a lot of social support to get through the tough social dynamics
they do not understand.
Stage 3: Integration. The group starts to develop a clearer picture of the roles of various team
members and begins to exert control over team processes. The leader does not have to
provide much task direction, but the team still needs a lot of social support.
Stage 4: Production. The group becomes a high-performing team, no longer dependent on the
leader.
Toyota has attempted to enrich jobs in various ways. Some of the features that make the job
more enriching include job rotation, various kinds of feedback on how workers are doing at
their jobs, the andon system and significant work group autonomy over the tasks. Toyota
became interested in job enrichment in the 1990s and redesigned its assembly lines so that the
parts that make up a subsystem of the vehicle are installed in one specific area on the
assembly line. Rather than a work group assembling electrical systems and then putting in
floor mats and then door handles, a work group might focus almost exclusively on the
electrical system under the hood. For white collar workers, Toyota organizes teams around
complete projects from start to finish. For example, the design of the interior of the vehicle is
the responsibility of one team from the design phase through production. Participation in the
project from beginning to end enriches and empowers the employee. People are motivated by
challenging but attainable goals and measurement of progress toward those goals. Toyota's
visual management systems plus policy deployment means that teams always know how they
are doing and are always working towards stretch improvement targets. Policy deployment
sets challenging, stretch goals from the top to the bottom of the company. Careful
measurements every day let work teams know how they are performing.
[29]
Vendor management
Toyota is a tough customer. Toyota has very high standards of excellence and expects
partners to rise to those standards. But Toyota will also help partners to improve their
standards. Toyota has made serious investment in building a network of highly capable
suppliers who are tightly integrated into Toyota's extended lean enterprise. Toyota’s high
quality 12 standards result from the excellence in innovation, engineering, manufacture, and
overall reliability of Toyota's suppliers. Without dependable suppliers, JIT cannot work.
There is much hype about "streamlining" the supply chain through advanced information
technology. What is not adequately emphasized is the enormous complexity of coordinating
detailed, daily activities to deliver value to the customer. One is not likely to hear about
relationships across firms-about how partners must work together toward common goals. Yet,
this is one of Toyota's key strengths.
Toyota gives new suppliers very small orders to start with. They must prove their sincerity
and commitment to Toyota's high performance standards for quality, cost, and delivery. If
they demonstrate this for early orders, they will get increasingly larger orders. Toyota will
teach them the Toyota Way and adopt them into the family. Once inside, a supplier is not
removed except in extraordinary circumstances.
Toyota keeps challenging its suppliers with aggressive targets. Toyota believes in having high
expectations for their suppliers and then treating them fairly and teaching them. Treating
them softly or beating them up without teaching them would be very disrespectful. And
simply switching supplier sources because another supplier is a few percentage points
cheaper is unthinkable. Suppliers want to work for Toyota both for the prestige involved and
because they know they will get several opportunities to learn and improve.
Toyota is very careful when deciding what to outsource and what to do in house. Like other
Japanese automakers, Toyota outsources a lot, about 70% of the components of the vehicle.
But is still tries to develop internal competency even in case of components it outsources.
[30]
A learning Organization
When processes are stable and waste and inefficiencies become publicly visible, there is an
opportunity to learn continually from improvements. To be a learning organization, it is
necessary to have stability of personnel, slow promotion, and very careful succession systems
to protect the organizational knowledge base. To "learn" means having the capacity to build
on the past and move forward incrementally, rather than starting over and reinventing the
wheel with new personnel with each new project.
The Toyota philosophy emphasises that true problem solving requires identifying the root
cause which often lies hidden beyond the source." The answer lies in digging deeper by
asking why the problem occurred. The most difficult part to learn is grasping the situation
thoroughly before proceeding with five-why analysis. Grasping the situation starts with
observing the situation with an open mind and comparing the actual situation to the standard.
To clarify the problem, one must start by going to where the problem is (genchi genbutsu).
For Toyota, problem solving is 20% tools and 80% thinking. For most other companies, it
seems to be 80% tools and 20% thinking.
A key to learning and growing, not only within Toyota but in Japanese culture, is hansei,
which roughly means "reflection." Hansei means reflection on the process of developing the
vehicle. Hansei is the check stage of PDCA. It is used most often at the end of a vehicle
program, but is being now moved further upstream so there are several hansei events at key
junctures in the program.
Toyota has judiciously used stability and standardization to transfer individual and team
innovation into organization-wide learning. It is one thing for individual employees to come
up with innovative ways to do things. But to become organization - wide learning, the new
way must be standardized and practiced across the organization until a better way is
discovered. This is the foundation for the Toyota Way of learning-standardization punctuated
by innovation, which gets translated into new standards.
[31]
Performance measurement
Toyota is not particularly strong at developing sophisticated metrics across the company.
Toyota measures processes everywhere on the factory floor, but prefers simple metrics and
does not use many of them at the company or plant level.
There are at least three types of measures at Toyota:
Global performance measures-how is the company doing? At this level, Toyota uses
financial, quality, and safety measures very similar to those used by other companies.
Operational performance measures-how is the plant or department doing? Toyota's

measurements are timelier and better maintained than at other companies. The people at the
work group level or the project manager's level painstakingly track progress on key metrics
and compare them with aggressive targets. The metrics tend to be specific to a process.
Stretch improvement metrics-how is the business unit or work group doing? Toyota sets
stretch goals for the corporation, which are translated into stretch goals for every business
unit and ultimately every work group. Tracking progress toward these goals is central to
Toyota's learning process.
Creating flow
There are five steps to creating flow:
1. Identify who the customer is for the processes and the added value they want delivered.
2. Separate out the repetitive processes from the unique, one-of-a-kind processes and learn
how you can apply TPS to the repetitive processes.
3. Map the flow to determine value added and non-value added.
4. Think creatively about applying the broad principles of the Toyota Way to these processes
using a-future-state value stream map.
5. Start doing it and learn by doing using a PDCA cycle and then expand it to the less
repetitive processes'
[32]
Culture
The Toyota Way goes to the level of basic assumptions of the most effective way to
"perceive, think, and feel" in relation to problems. Things like genchi genbutsu, recognizing
waste, thorough consideration in decision making, and the focus of Toyota on long-term
survival are the DNA of Toyota.
The Toyota Way is explicitly taught to new members. Toyota conducts seminars on the
Toyota Way. The Toyota Way also gets transmitted through action in day-to-day work where
leaders demonstrate by their actions.
Toyota has also attempted to spread the culture to global operations. The most intensive effort
has been in North America. All U.S. senior managers were assigned Japanese coordinators.
The coordinators had two jobs: coordinating with Japan, where there are continuous technical
developments, and teaching U.S. employees the Toyota Way through daily mentorship. Every
day is a training day, with immediate feedback shaping the thinking and behaviour of the U.S
employees.
Toyota has used trips to Japan, to influence the cultural awareness of U.S. employees. Toyota
has also sent over senior executives to instill the culture in new American leaders. This
started with managers from Japan and has evolved to homegrown managers in North
America. Toyota has used the TPS technical systems, or "process" layer of the Toyota Way, to
help reinforce the culture Toyota sought to build. By creating flow across operations using
TPS and lean product development in its overseas operations, Toyota is helping change this
behaviour and shape the culture it seeks to nurture
[33]
TPS Concepts
1.) Jidoka
— Highlighting/visualization of problems —
-Quality must be built in during the manufacturing process!-
If equipment malfunction or a defective part is discovered, the affected machine

automatically stops, and operators cease production and correct the problem.
For the Just-in-Time system to function, all of the parts that are made and supplied must meet
predetermined quality standards. This is achieved through jidoka.
Jidoka means that a machine safely stops when the normal processing is completed. It also
means that, should a quality / equipment problem arise, the machine detects the problem on
its own and stops, preventing defective products from being produced. As a result, only
products satisfying quality standards will be passed on to the following processes on the
production line.
Since a machine automatically stops when processing is completed or 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 easily identify the problem's cause
to prevent its recurrence. This means that each operator can be in charge of many machines,
resulting in higher productivity, while continuous improvements lead to greater processing
capacity.
[34]
2.) Just-in-Time
- Making only "what is needed, when it is needed, and in the amount needed!"
Producing quality products efficiently through the complete elimination of waste,

inconsistencies, and unreasonable requirements on the production line.
In order to deliver a vehicle ordered by a customer as quickly as possible, the vehicle is

efficiently built within the shortest possible period of time by adhering to the following:
When a vehicle order is received, a production instruction must be issued to the beginning of
the vehicle production line as soon as possible.
The assembly line must be stocked with required number of all needed parts so that any type
of ordered vehicle can be assembled.
The assembly line must replace the parts used by retrieving the same number of parts from
the parts-producing process (the preceding process).
The preceding process must be stocked with small numbers of all types of parts and produce
only the numbers of parts that were retrieved by an operator from the next process.
[35]
3.) Poka-Yoke
 Poka-yoke (means "fail-safing" or "mistake-proofing")

 Avoiding (yokeru) inadvertent errors (poka)) is a behavior-shaping constraint.
 A method of preventing errors by putting limits on how an operation can be
performed in order to force the correct completion of the operation.
4.) Mura, Muri
 Mura is a Japanese term for unevenness.

 It is also a key concept in the Toyota Production System and is one of the three types
of waste (Muda, Mura, Muri) it identifies. Waste reduction is an effective way to
increase profitability.
 Muri is a Japanese term for overburden or unreasonableness.
 It is also a key concept in the Toyota Production System and is one of the three types
of waste (Muda, Mura, Muri) it identifies. Waste reduction is an effective way to
increase profitability.
 Muri can be avoided through standardised work.
5.) Andon (Signboard)
 Andon is a manufacturing term referring to a signboard incorporating signal lights,

audio alarms, and text or other displays installed at a workstation to notify
management and other workers of a quality or process problem.
 It gives the worker the ability to stop production when a defect is found, and
immediately call for assistance.
 Work is stopped until a solution has been found out. The alerts may be logged to a
database so that they can be studied as part of a continuous-improvement program.
 The system will typically indicate where the alert was generated, and may also
provide a description of the trouble.
7 WASTES
[36]
TPS concepts focus on elimination of the seven wastes in lean manufacturing
 Overproduction Waste -. This is usually because of working with oversize batches, long
lead times, poor supplier relations and a host of other reasons. Overproduction leads to high
levels of inventory which mask many of the problems within your organisation.
The aim should be to make only what is required when it is required by the customer.
 Inventory Waste - Inventory costs you money, every piece of product tied up in raw
material, work in progress or finished goods has a cost and until it is actually sold that cost is
yours. In addition to the pure cost of your inventory it adds many other costs; inventory feeds
many other wastes. Inventory has to be stored, it needs space, it needs packaging and it has to
be transported around. It has the chance of being damaged during transport and becoming
obsolete. The waste of Inventory hides many of the other wastes in your systems.
 Waste Of Waiting - The Waste of Waiting disrupts flow, one of the main principles of
Lean Manufacturing, as such it is one of the more serious of the seven wastes.
7 WASTES (Contd…)
[37]
 Waste Of Motion - Unnecessary motions are those movements of man or machine which
are not as small or as easy to achieve as possible, by this I mean bending down to retrieve
heavy objects at floor level when they could be fed at waist level to reduce stress and time to
retrieve. Excessive travel between work stations, excessive machine movements from start
point to work start point are all examples of the Motion. All of these wasteful motions cost
you time (money) and cause stress on your employees and machines.
 Waste Of Transportation - Transport adds no value to the product, you as a business

are paying people to move material from one location to another, a process that only costs
you money and makes nothing for you. The waste of Transport can be a very high cost to
your business; you need people to operate it and equipment such as trucks or fork trucks to
undertake this expensive movement of materials.
 Waste Of Rework (Defects) - The most obvious of the seven wastes, although not
always the easiest to detect before they reach your customers. Quality errors that cause
defects invariably cost you far more than you expect. Every defective item requires rework or
replacement, it wastes resources and materials, it creates paperwork, and it can lead to lost
customers. The Waste of Defects should be prevented where possible, better to prevent than
to try to detect them, implementation of poka yoke systems and autonomation can help to
prevent defects from occurring.
 Waste Of Overprocessing - The waste of Overprocessing is where we use inappropriate

techniques, oversize equipment, working to tolerances that are too tight, perform processes
that are not required by the customer and so forth. All of these things cost us time and money
[38]
TOYOTA GLOBAL VISION
Toyota will lead the way to the future of mobility, enriching lives around the world with the
safest and most responsible ways of moving people.
Through our commitment to quality, constant innovation and respect for the planet, we aim to
exceed expectations and be rewarded with a smile.
We will meet our challenging goals by engaging the talent and passion of people, who believe
there is always a better way
TMC GLOBAL MISSION

Toyota will lead the way to the future of mobility, enriching lives around the world with the
safest and most responsible ways of moving people.
“Through our commitment to quality, constant innovation and respect for the planet, we aim
to exceed expectations and be rewarded with a smile”.
“We will meet our challenging goals by engaging the talent and passion of people who
believe there is a always a better way”.
When Toyota Motor Corporation (TMC) President Katsuaki Watanabe announced "Toyota
Global Vision 2020" to worldwide Toyota associates in November 2007, it was a continuation
of a series of Visions that began 12 years ago.
[39]
Throughout the '80s, Toyota never allowed itself to be blinded by the good times of the
bubble economy, but instead it worked hard to maintain steady growth and make sure all of
its business functions (sales, technology, manufacturing, procurement, human resources,
logistics, etc.) kept the same pace. However, upon entering the '90s, the company was faced
with tougher circumstances, such as the appreciation of the Japanese yen, a shrinking market
and plateauing exports. This led TMC's top management to decide that Toyota needed to
clearly define its path for the next 10 years and share this vision with all of its global
associates
After numerous meetings, TMC executives concluded that "growth will not be achieved
without harmony." Featuring the slogan "harmonious growth," the "Toyota 2005 Vision" was
released in January 1996 by President Hiroshi Okuda (current Senior Advisor to the Board).
The Vision's underlying philosophy was the need to facilitate harmony between the global
environment, the world economy and industries, local communities and stakeholders in order
for Toyota to continue growing — and that Toyota's growth can be beneficial to the world
In May 2002, one year after the release of "The Toyota Way 2001," President Fujio Cho
(current Chairman of the Board) released "Global Vision 2010." The Vision's aim was to
serve as a reminder of Toyota's founding principle of contributing to society through the
manufacture of automobiles. Under the slogan of "Innovation into the Future," four themes
were presented as benchmarks for projecting Toyota's corporate image into the first half of
the 21st century: Kindness to the Earth, Comfort of Life, Excitement for the World and
Respect for all People.
"Toyota Global Vision 2020" was part of Toyota's current attempts to address increasingly
complex and conflicting issues facing the automotive industry, such as the environment and
energy. Given such circumstances, the Vision outlines TMC's hope for all associates to share
a firm resolve and honorable spirit and for Toyota to become an engine that drives the cycles
of industry in harmony with those of nature in anticipation of the year 2020.
Specifically, the Vision states Toyota's goal is to become "more inquiring, more advanced and
more dedicated" under the slogan of "Open the frontiers of tomorrow through the energy of
people and technology." While Toyota's worldwide family is aiming to become "the most
admired in town," the aim of Toyota's Vision is to work hard towards making every dealer,
plant, regional headquarters, design center and supplier around the world, including TMC, the
[40]
"best company in town." In other words, a "company that is respected and admired by the
communities we operate in and creates and shares a desirable future for all."
Illustration of the Toyota Production System
[41]
Sakichi Toyoda Kiichiro Toyoda
HISTORY OF TOYOTA MOTORS
In 1949, the Japanese auto industry was hit hard by a cutoff in Reconstruction Finance Bank
loans and the sudden drop in demand caused by the recession at the time. While other
automakers in the same predicament laid off workers, Toyota Motor Co., Ltd. (TMC) held to
its policy of no dismissals, instead negotiating a 10% cut in employee wages — but even this
was not enough to reduce the huge deficit.
Following a reconstruction plan in December 1949, financing to TMC was offered under
strict conditions by a group of local banks, led by the Nagoya Branch of the Bank of Japan,
including the creation of an independent sales company and the dismissal of surplus labor.
TMC thus created Toyota Motor Sales Co., Ltd. (TMS) in April 1950. Unfortunately, the
crisis continued to worsen, and reductions in TMC's work force became unavoidable. The
same month, TMC's request for 1,600 voluntary retirements would spark a heated labor
dispute — with TMC Founder and then-President Kiichiro Toyoda expressing regret for the
situation to the TMC labor union and asking for their understanding.
[42]
With monthly output falling and huge losses accumulating daily for TMC, Toyoda regrettably
announced his resignation as President of TMC and apologized to the TMC labor union when
the dispute came to a head. Around this time, a greater number of employees than requested
by TMC began leaving the company voluntarily, and the collective bargaining shifted focus
to dealing with the dispute's aftermath. The dispute would finally end with 2,146 voluntary
retirees and with both TMC labor and management feeling that the experience of seeing
colleagues leave the company once was more than enough. This difficult experience became
the starting point of the labor and management relationship that supports Toyota today. Two
months later, TMS assumed all domestic marketing functions for Toyota and soon began
handling overseas marketing as well, serving as a constructive counterpoint to TMC's
concentration on technology and production.
In January 1982, TMC and TMS decided to merge as a means to cope with the turbulent
1980s and changed their name to Toyota Motor Corporation. At the time, Toyota Motor
Corporation's then-Chairman Eiji Toyoda recalled to all associates how — at the brink of
bankruptcy in 1950 — TMC was forced to split its production and sales departments into
separate companies. He urged everyone to "return to our original organization, let us grasp
our capabilities to their fullest and let us make the effort needed to carve ourselves a new
future."
For 32 years, TMC and TMS had concentrated their managerial resources in their respective
areas of responsibility to become leaders in the Japanese automobile industry. However, to
develop their international operations and to make decisions more quickly, a need emerged to
integrate the functions of both companies and restructure into a new organization.
In his June 25, 2009 speech, Toyota Motor Corporation President Akio Toyoda specifically
referenced TMC's handling of the 1949 labor crisis, emphasizing every challenge in Toyota's
path would result in the creation of a valuable asset: a corporate culture focused on the
customer and the genba. "Toyota has been hit by a crisis about once every ten years," Toyoda
said, "but Toyota has made it through every crisis with the constant support of all Toyota
team members."
[43]
Three men were especially prominent in creating the Toyota Production System: Sakichi
Toyoda; his son, Kiichiro Toyoda; and a production engineer by the name of Taiichi Ohno
Sakichi Toyoda was the inventor of automatic looms who founded the Toyota Group. He
invented a loom in 1902 that would stop automatically if any of the threads snapped. His
invention opened the way for automated loomworks where a single operator could handle
dozens of looms.
Sakichi's invention reduced defects and raised yields, since a loom would not go on
producing imperfect fabric and using up thread after a problem occurred. The principle of
designing equipment to stop automatically and call attention to problems immediately is
crucial to the Toyota Production System. It is evident on every production line at Toyota and
at other companies that use the system.
Toyota Group set up an automobile-manufacturing operation in the 1930s, Sakichi's son

Kiichiro headed the new venture. Kiichiro traveled to the United States to study Henry Ford's
system in operation. He returned with a strong grasp of Ford's conveyor system and an even
stronger determination to adapt that system to the small production volumes of the Japanese
market
Kiichiro's solution was to provide the different processes in the assembly sequence with only
the kinds and quantities of items that they needed and only when they needed them. In his
system, each process produced only the kinds and quantities of items that the next process in
the sequence needed and only when it needed them. Production and transport took place
simultaneously and synchronously throughout the production sequence — inside and between
all the processes. Kiichiro thus laid the groundwork for just-in-time production, and he gets
credit for coining the term "just in time."
[44]
Taiichi Ohno
The man who did the most to structure the Toyota Production System as an integrated
framework was Taiichi Ohno. In the late 1940s, Ohno — who later became an executive vice
president at Toyota — was in charge of a machining shop. He experimented with various
ways of setting up the equipment to produce needed items in a timely manner. But he got a
whole new perspective on just-in-time production when he visited the United States in 1956.
Ohno went to the United States to visit automobile plants, but his most important U.S.
discovery was the supermarket. Japan did not have many self-service stores yet, and Ohno
was impressed. He marveled at the way customers chose exactly what they wanted and in the
quantities that they wanted. Ohno admired the way the supermarkets supplied merchandise in
a simple, efficient, and timely manner.
In later years, Ohno often described his production system in terms of the American
supermarket. Each production line arrayed its diverse output for the following line to choose
from, like merchandise on supermarket shelves. Each line became the customer for the
preceding line. And each line became a supermarket for the following line. The following line
would come and choose the items it needed and only those items. The preceding line would
produce only the replacement items for the ones that the following line had selected. This
format, then, was a pull system, driven by the needs of the following lines. It contrasted with
conventional push systems, which were driven by the output of preceding lines. Ohno
developed a number of tools for operating his production format in a systematic framework.
The best known of those tools is the kanban system, which provides for conveying
information in and between processes on instruction cards
[45]
66 Years of Corporate Tradition
Since the company manufactured its first passenger vehicle in 1936, Toyota has
continuously pursued the number one position for total customer satisfaction in all areas,
ranging from manufacturing and products to sales and service. Toyota exported its first
Japanese-made passenger car to the United States in 1957. Since then, Toyota has
steadily expanded its global presence with the establishment of overseas bases.
Using such success as a springboard, Toyota is pursuing a policy of sustained

development and hopes to use innovation and strong R & D to create cars that are
greener, safer and more fun to drive
As a global company; Toyota realizes that local commitment is a prerequisite to success

on a worldwide scale. Toyota's activities are highly appreciated around the world, a result
of the company's devotion to customer-oriented activities and social contributions in
every market it operates.
[46]
History of Toyota (1867-1939)
New Model Introductions, Business Development,

Year
Productions, Sales and Exports Plants and Facilities
1867 • Sakichi Toyoda is born.
• Sakichi Toyoda invents the wooden
'90
Toyoda handloom.
'94 • Kiichiro Toyoda is born.
•Sakichi Toyoda completes Non-stop

the non-stop shuttle change shuttle
1924
type Toyoda automatic loom change type
(Type G). Toyoda
automatic
loom (Type
G)
• Kiichiro Toyoda travels to Europe and the
United States to investigate automobiles.
'29
• The British company Platt Brothers gains
the automatic loom patent rights.
• Kiichiro Toyoda starts research into
1930
gasoline-powered engines.
• Automobile Department is established in
'33
Toyoda Automatic Loom Works, Ltd.
A1 prototype • A1 prototype passenger car

• Hinode Motors (currently Aichi Toyota)
passenger car is completed. '35
starts operations.
• G1 truck is completed.
G1 truck
[47]
History of Toyota (1867-1939) (Contd....)
• Toyoda Model AA
Toyoda Model
Sedan, AB phaeton and
AA Sedan
GA truck are '3
• Toyota's logo is established.
announced. 6
• First export of a
First export of a Toyota car (G1 truck).
Toyota car (G1
truck)
'3 • Toyota Motor Co., Ltd. is
7 established.
• Koromo Plant
(currently Honsha
Koromo Plant
Plant) starts
'3
• Production of GB truck starts. operations.
8
• "Just-in-time"
system launches on Production line
a full-scale basis. at Koromo
Plant
[48]
Year
• Toyoda Seiko, Ltd. (currently
Aichi
1940 Steel Works, Ltd.) is established.
• Toyoda Physical and Chemical
Research Institute is established.
• Toyota Machine Works Co.,
• Production of AE passenger car starts. '41
Ltd. is established.
• Production of KB truck starts. '42
• Tokai Hikoki Co., Ltd.
• Production of AC passenger car and KC truck starts. '43 (currently Aisin Seiki Co., Ltd.)
is established.
• Toyota Shatai Kogyo Co., Ltd.
'45 (currently Toyota Auto Body Co.,
Ltd.) is established.
• Kanto Electric Auto
Manufacturing, Ltd. (currently
'46
Kanto Auto Works, Ltd.) is
established.
SB truck
• Production of BM truck,
SB small truck and SA
SA compact passenger compact passenger car
'47
car racing with starts.
express train • 100,000th Toyota vehicle
is produced domestically.
100,000th Toyota
vehicle is produced
domestically
Nisshin Tsusho Co., Ltd.
'48 (currently Toyota Tsusho
Corporation) is established.
• Production of SD compact passenger car starts. '49 • Nagoya Rubber Co., Ltd.
(currently Toyoda Gosei Co.,
[49]
Ltd.) is established.

Year
• Financial crisis/Labour
dispute/Voluntary retirement.
• Toyota Motor Sales Co., Ltd. is
1950 established.
• Minsei Spinning Co., Ltd. (currently
Toyoda Boshoku Corporation) is
established.
• BX truck and BJ Toyota Jeep

(currently Land Cruiser) are announced. • Creative Idea Suggestion System
'51
• Production of SF compact passenger begins.
car starts.
• Production of SG small truck starts. '52
• Towa Real Estate Co.,

Ltd. is established.
• RH Toyopet Super and RK small truck • Corporate slogan
'53
are announced. "Good Thinking, Good
Products" is Slogan is
established. established
• SKB small truck (currently Toyo Ace) • Main Technical Building (Technical
'54
is announced. Center) is completed.
• Toyopet Crown,
Toyopet Master and
'55
Crown Deluxe are
Toyopet announced.
Crown
• RK52 small truck (currently Dyna) is • Toyopet dealerships start operations.

'56
announced. • Head Office test course is completed.
[50]
History of Toyota (1950-1959)(Contd....)
• DA60 diesel truck

and Toyopet Corona
(currently Premio) • Toyota Motor
are announced. Sales, U.S.A.,
First export of '57
• First export of Inc. is Toyota Motor
Japanese Japanese passenger established. Sales, U.S.A.,
passenger car car (Crown) to the Inc.
(Crown) to the U.S. United States.
• Toyota do Brasil S.A. starts
'58
operations.
• Motomachi
'59 Plant starts
operations. Motomachi
Plant
[51]

Year
• Main Building is
completed.
•Toyota Central
1960 Research &
Development Main Building of
Laboratories, Inc. is Toyota Head Office
established.
• Publica dealerships (currently Toyota
Corolla dealerships) start operations.
• Publica is • Total Quality Control (TQC) is adopted
'61
announced. throughout company.
Publica • Haruhi Plant (currently Haruhi Center) is
completed.
• Labour-Management
Joint Declaration is
• 1 millionth Toyota vehicle is signed.
'62 Signing ceremony
produced domestically. • Toyota Motor
Thailand Co., Ltd. is for Labour-
established. Management Joint
Declaration
• RK170B light bus (currently
'63
Coaster) is announced.
• Crown Eight, FA100 and
DA100 heavy-duty trucks are '64
announced.
• The Deming Prize
for major advances in
• Toyota Sports 800 is quality improvement
'65
announced. is awarded.
• Kamigo Plant starts The Deming Prize
operations. is awarded
• Takaoka Plant starts

operations.
• Enter into business
• Corolla is
'66 partnership with Hino
announced.
Motors, Ltd. Higashifuji Proving
Corolla • Higashifuji Proving Ground
Ground is completed.
[52]
History of Toyota (1960-1969) (Contd...)
• Toyota Auto dealerships

• Toyota 2000GT, Hiace (currently Netz Toyota
and Miniace are '67 dealerships) start operations.
Toyota 2000GT announced. • Enter into business partnership
speed trial with Daihatsu Motor Co., Ltd.
• Hilux, Corolla Sprinter and Corona Mark II are • Miyoshi Plant starts
'68
announced. operations.
• Cumulative exports
reach 1 million units.
'69
• Annual domestic sales
Cumulative exports reach 1 million units.
reach 1 million units
[53]

Year
• First Japan Quality

Control Medal is
• Carina (currently Allion), Celica and
1970 awarded.
Light Ace are announced. Japan Quality
• Tsutsumi Plant
starts operations. Control Medal
is awarded
• 10 millionth Toyota vehicle is
'72
produced.
• Myochi Plant starts operations.
• Publica Starlet is announced. '73 • Calty Design Research, Inc. is
established.
• Toyota Kuragaike
Commemorative
Hall is completed.
• The Toyota
'74
Foundation is
established. Nisshin
• Nisshin Training Training Center
Center is completed.
• Cumulative exports reach 5 million • Shimoyama Plant starts operations.
'75
units. • Prefabricated housing business starts.
• Town Ace is announced. '76
• Toyota Technical Center U.S.A., Inc. is
established.
• Chaser is announced. '77
• Toyota Kaikan Exhibition Hall is
completed.
• Celica XX
(currently Supra),
'78 • Kinuura Plant starts operations.
Tercel and Corsa
Celica are announced.
Cumulative • Cumulative
• Tahara Plant starts
production exports reach 10 '79
operations.
reaches 10 million units.
million units Tahara Plant
[54]
Year
• Celica Camry (currently Camry)
1980 • Toyota Vista dealerships starts operations.
and Cresta are announced.
• Soarer is • Toyota Technological Institute is

'81
announced. inaugurated.
Soarer
• Toyota Motor Co., Ltd.

and Toyota Motor Sales
'82 Co., Ltd. merge into Merger of
Toyota Motor Toyota Motor
Corporation. Corporation and
Toyota Motor
Sales Co., Ltd.
• Toyota-General Motors
joint venture in the
United States, known as
New United Motor
• Hilux Surf and MR2 are
'84 Manufacturing, Inc.
announced.
(NUMMI), starts
production. NUMMI
• Shibetsu Proving
Ground is completed.
• Cumulative exports reach 20
'85 • Tobishima Center is completed.
million units.
• 50 millionth
Toyota vehicle
50 millionth '86 • Teiho Plant starts operations.
is produced
Toyota vehicle domestically.
is produced
domestically
[55]
• Kasugai Housing Works

starts operations.
• Toyota Memorial Hospital
is completed.
'87
• TMME (Toyota Motor Ground breaking
Europe Marketing & ceremony for
Engineering S.A.) Technical TMM plant
Center is established.
• Annual domestic sales reach • Toyota Motor Manufacturing, Kentucky, Inc.
'88
2 million units. starts production.
• Hirose Plant starts operations.
• Tochigi Housing Works starts operations.
• Celsior is
'89 • Toyota Automobile Museum is completed.
announced.
• Lexus dealerships are established in the U.S.
Celsior • Tokyo Design Center is established.
[56]
New Model
Introductions, Business Development,
Year
Productions, Sales and Plants and Facilities
Exports
• Amlux opens.
• Estima is announced. 1990 • Toyota Motor Europe Marketing & Engineering S.A.
(TMME) is established.
• Windom and Aristo

'91 • Yamanashi Housing Works starts operations.
are announced.
• Guiding Principles at Toyota

are announced.
• Toyota Earth Charter is
established.
• Toyota Motor Manufacturing
(U.K.), Ltd. (TMUK) starts Aerial view of
production. TMUK
'92
• DUO dealerships for
Volkswagen and Audi cars
open.
• Toyota Motor Hokkaido, Inc. Announcement of
starts operations. new plant in France
• Toyota Motor Kyushu, Inc.
starts operations.
• RAV4L and RAV4J

are announced.
• Annual overseas '94 • Industrial Technology Memorial Museum opens.
output exceeds 1 million
units.
• Avalon and Toyota

'95
Cavalier are announced.
• Ipsum is announced. '96 • Genesis Research Institute, Inc. is established.
[57]
• Prius and Harrier

'97
are announced.
Prius
• "Toyota Auto" sales channel

changes name to "Netz Toyota."
• Toyota Motor Manufacturing
Indiana, Inc. (TMMI) and Toyota
Motor Manufacturing, West Virginia,
• Altezza is announced. '98
Inc. (TMMWV) start operations.
• Tianjin Toyota Motor Engine Co.,
Ltd. (TTME) starts operations.
• Toyota Motor Tohoku, Inc. starts
operations.
• Vitz, Cami, Platz,

FunCargo and MR-S
are announced. • MEGA WEB opens.
Vitz
• 100 millionth • TMC is listed on the New York and
Toyota vehicle is London Stock Exchanges.
'99 • Toyota Kirloskar Motor, Ltd. starts
produced
domestically. operations.
100 millionth • Annual overseas
Toyota vehicle is sales exceed 3
produced million units.
domestically
[58]
Year
･ Toyota Financial Services Corporation is
･ WiLL Vi, bB, Pronard, Opa, established to oversee Toyota's finance
Sparky and Kluger V are 2000 companies worldwide.
announced. ･ Sichuan Toyota Motor Co., Ltd. (SCTM)
starts production in China.
･ Allex, Allion, Voxy, WiLL VS, ･ Toyota Motor Manufacturing France S.A.S.
'01
Brevis and Verossa are announced. (TMMF) starts production.
･ Toyota enters Formula One (F1)

competition.
･ Toyota Peugeot Citroen Automobile Czech,
･ Alphard, Probox and Succeed, s.r.o. is established.
Voltz and WiLL CYPHA are ･ Toyota Motor Manufacturing Poland SP.z
announced. o.o. (TMMP) starts production.
･ Toyota FCHV is introduced on a ･ China FAW Group Corporation (FAW)
limited sales basis. signs a cooperative agreement in China.
'02
･ North American production ･ Toyota Motor Manufacturing de Baja
achieves 10 million units California S.de R.L.de C.V. is established.
cumulative production. ･ Toyota Kirloskar Auto Parts Private Ltd. is
･ Worldwide Prius sales achieve established.
100,000 units. ･ Tianjin Toyota Motor Co., Ltd (TTMC)
starts production in China.
･ Toyota Motor Industries Poland Sp.z o.o.
(TTIP) is established.
･ Toyota Home Inc. (house retail company) is
established.
･ WISH, Sienta and Avensis are ･ Toyota Motor Manufacturing, Texas, lnc.
'03
announced. (TMMTX) is established.
･ Toyota Motor Manufacturing, Alabama, lnc.
(TMMAL) is established.
･ Toyota FAW (Tianjin) Dies Co., Ltd. is
established.
･ Passo, Porte, Isis and Mark X are ･ FAW Toyota Changchun Engine Co., Ltd. is
'04
announced. established.
･ Guangzhou Toyota Motor Co., Ltd. is
established.
[59]
History of Toyota (2000-2009)(Contd...)
･ Toyota starts production of the "Toyota Aygo" along with

"Peugeot 107" and "Citroen C1" through a joint venture with
･ Ractis and Belta are announced.
PSA Peugeot Citroen in the Czech Republic.
･ GS430, SC430 and IS350/250 are
･ "TOYOTA MOTOR MANUFACTURING RUSSIA"(TMMR) is
announced. '05
established.
･ Worldwide Camry Sedan sales
･ The Lexus brand is launched in Japan.
reach 10 million units.
･ Toyota and Fuji Heavy Industries agree on Business
Collaboration.
･ Rush is announced.
･ GS450 and LS460 are announced.
･ Collora Axio, Auris and Blade are ･ Toyota Motor Engineering & Manufacturing North America
'06
announced. Inc. (TEMA) is established.
･ Worldwide Prius sales achieve
500,000 units.
･ LS600h/600hL is announced.
･ Toyota Motor Asia Pacific Engineering and Manufacturing
･ Vanguard and Mark X Zio are
Co., Ltd. (TMAP-EM) is established.
announced.
･ Subaru of Indiana Automotive, Inc. (SIA) starts production.
･IS F is announced. '07
･ Tong Fang Global Logistics Co., Ltd (TFGL) is established.
･ Corolla Rumion is announced.
･ "TOYOTA MOTOR MANUFACTURING RUSSIA"(TMMR)
･ Worldwide Hybrid sales top 1
starts production.
million units.
･Toyota Research Institute of North America (TRI-NA) is
established in United States.
･ Toyota Motor Corporation (TMC), Daihatsu and FHI
Research & Development and product-supply ties grow deeper.
･ The 21st Century Greater Beijing
･ Worldwide Prius sales top 1 million
Afforestation Center in China opens.
mark.
･ Toyota Motor Corporation Australia Ltd. (TMCA) starts
･ Leasing Advanced Fuel Cell Hybrid
Camry Hybrid vehicle production in Australia.
Vehicle begins. '08
･ Toyota Motor Thailand Co., Ltd. (TMT) starts Camry Hybrid
･ Toyota Peugeot Citroën Automobile
vehicle production in Thailand.
Czech, s.r.o. (TPCA) produces 1
･ Testing Plug-in Hybrid Vehicles in the United Kingdom
millionth vehicle.
begins.
･ Toyota Technical Center, USA, Inc.(TTC) York Township
campus opens in the U.S.
･ Toyota Motor Manufacturing Canada Inc. (TMMC) starts
RAV4 production in Canada.
･ RX450h/RX350, IS 250C, HS250h
and LFA are announced.
･ SAI and Prius Plug-in Hybrid are
announced. ･ Toyota Marketing Japan (TMJ) is established.
･ Toyota Motor Manufacturing '09 ･ Toyota Motor Sales & Marketing (TMSM) is established.
Turkey Inc. (TMMT) production ･ Toyota to withdraws from F1.
exceeds 1 million units.
･ Worldwide Hybrid sales top 2
million units.
[60]

Year
･ Toyota and Mazda agree to Hybrid System

･ FJ Cruiser launched.
Technology Licence.
･ Worldwide Prius sales top 2 million
･ Toyota and Tesla Motors agree on joint EV
units.
development.
･ Thailand cumulative production 2010
･ Toyota's housing operations to integrate under
reaches 5 million units.
Toyota Housing Corporation.
･ Europe sales archive 20 million
･ Toyota develops Advanced Energy Management
units.
System.
･ CT200h, Prius α, Pixis, Aqua are ･ Microsoft and Toyota forge a strategic
announced. partnership on Next-Generation Telematics.
･ Worldwide Hybrid Vehicle sales top ･ Salesforce and Toyota form strategic Alliance to
3 Million mark. build 'Toyota Friend'.
'11
･ Malaysian cumulative production ･ Toyota Motor Manufacturing Mississippi, Inc.
reaches 1 million units. begins production in the USA.
･ GAC Toyota Motor Co., Ltd. ･ BMW and Toyota agree to a mid-to-long-term
(GTMC) produces 1 millionth vehicle. research in environment-friendly technologies.
･ Toyota 86 sports car launched

･ Worldwide sales of TMC hybrids
top 4 million units
･ IMV series cumulative production
･ BMW Group and Toyota agree to further
reaches 5 million units '12
strengthen collaboration
･ TMC worldwide cumulative
production tops 200 million units
･ North America cumulative
production reaches 25 million units
･ IS launched
･ Worldwide sales of TMC hybrids
top 5 million units
･ Worldwide Prius sales top 3 million '13
units.
･ Worldwide Corolla sales top 40
million units.
[61]
Facts about TMC
 GM retook the sales crown in 2011, when Toyota's production was hurt by the
earthquake and tsunami in northeastern Japan.
 Toyota sold 9.98 million vehicles during 2013, which was 270,000 more than its
closest rival - US car giant General Motors.
 Sales were up 2% from the year before and Toyota also announced plans to sell 10.32
million vehicles in 2014.
 Competitors GM in USA and VW in China.
 GM sold 9.71 million vehicles, which was a four percent year-on-year gain, while
Volkswagen was up almost five percent at 9.5 million.
 TMC underwent a massive recall debacle in the US, announcing recall after recall
starting in 2009. It paid $1.2bn to settle a Justice Department investigation into
charges of covering up problems that caused unintended acceleration in some cars.
 The Corolla is the company’s bestselling nameplate for automobiles across the globe.
The total number of nameplates that have been sold to date is 30 million.
 In the year 2011, Toyota was ranked as the third largest car manufacturer in the world,
after General Motors and Volkswagen Group.
 In 2012, eight Toyota-manufactured cars won the J.D Power and Associates Vehicle
Dependability Study.
 Toyota has filed 1000 new patents for the Prius which was manufactured by the
company in 2012. That goes to show how much new technology has been used in the
making of the car.
 Toyota has the largest hybrid model line-up in the world
[62]
Brief History of Kirloskar Group
The Kirloskar Group is an Indian conglomerate headquartered in Pune, Maharashtra,

India. The company exports to over 70 countries over most of Africa, Southeast
Asia and Europe. The flagship & holding company, Kirloskar Brothers Ltd established in
1888, is India's largest maker of pumps and valves. and also undertakes construction projects
through its subsidiary Kirloskar Construction And Engineers Ltd. The group is headed
by Sanjay Kirloskar. The Kirloskar group of companies was one of the earliest industrial
groups in the engineering industry in India. The group produces pumps, engines,
compressors, screw & centrifugal chillers, lathes and electrical equipments like electric
motors, transformers and generators. It is the world’s largest GENSET manufacturer.
The group’s two largest companies, Kirloskar Brothers Limited and Kirloskar Oil Engines
Limited, own many patents.
Kirloskar Brothers Ltd created the world’s largest irrigation project which was commissioned
in March 2007 (the Sardar Sarovar Dam project) for the Gujarat Government. This was done
for Sardar Sarovar Narmada Nigam, and on 14 March 2008 commissioned the world’s second
largest water supply system with the world’s highest head in Andhra Pradesh. Kirloskar
Brothers is associated with India's nuclear program and has made canned motor pumps for
pumping heavy water which are deployed at Indian Nuclear Power Plants.
[63]
Toyota Kirloskar Motor Private Limited
A subsidiary of Toyota Motor Corporation of Japan (with Kirloskar Group as a minority
owner), for the manufacture and sales of Toyota cars in India. It is currently the 4th largest
car maker in India after Maruti Suzuki, Hyundai, and Mahindra.
Type Joint venture
Industry Automotive
Founded 6 October 1997
Headquarters Bangalore, Karnataka
Key people Mr. Ryoichi Sasaki, Chairman
Products Automobiles
Employees 4,975
Toyota Motor Corporation, Kirloskar

Parent
Group
[64]
Toyota Kirloskar Auto Parts Private
Subsidiaries
Limited
TKMPL's current plant at Bidadi, Karnataka is spread across 432 acres and has a capacity of
80,000 vehicles per annum.
TKMPL's second manufacturing plant on the outskirts of Bangalore, Karnataka has a
capacity of 70,000 vehicles per annum. Both plants have a combined capacity of 150,000
vehicles per annum.
On 16 March 2011, it announced that it was increasing production to 210,000 vehicles per
annum due to increase in demand for its models especially the Etios and Fortuner.
Your Satisfaction Our Commitments
Vision
1. Delight our customers through innovative products, by utilising advanced technologies and services.
2. Ensure growth to become a major player in the Indian auto industry and contribute to the Indian economy by
involving all stakeholders.
3. Become the most admired and respected company in India by following the Toyota Way.
4. Be a core company in global Toyota operations.
Mission
1. Practise ethics and transparency in all our business operations.
2. Touch the hearts of our customers by providing products and services of superior quality at a competitive
price.
3. Cultivate a lean and flexible business model throughout the value chain by continuous improvement.
4. Lead the Toyota global operations for the emerging mass market.
5. Create a challenging workplace which promotes a sense of pride, ownership, mutual trust and teamwork.
6. Create an eco-friendly company in harmony with nature and society.
THROUGH THESE ACTIVITIES ESTABLISH A SUPERIOR BRAND IMAGE IN INDIA.
[65]
[66]
[67]
[68]
Toyota Product line in India
Manufactured/Assembled locally
 Toyota Corolla (launched 2003)
 Toyota Innova (launched 2005)
 Toyota Etios (launched 2010)
 Toyota Etios Liva (launched 2011)
 Toyota Fortuner (launched 2009)
 Toyota Camry (launched 2002)
Imported :
 Toyota Land Cruiser Prado (launched 2004)
 Toyota Land Cruiser (launched 2009)
 Toyota Prius (launched 2010)
Discontinued:
 Toyota Qualis (1999-2004)
[69]
Production System
Hormonizing with the Environment
Globally, Toyota has indicated a strong and diverse commitment to

the pursuit of harmonious growth through its technically advanced
and environment-friendly products. There have been relentless
efforts in the crucial fields of mobility, city transportation, resources,
society and environment, through research & development.
Protecting the environment has always been a priority at TKM,

starting with the eco-friendly engines that are manufactured for the
Toyota vehicles, to the advanced technology that is used for
purification or recycling of waste water at the plant. Apart from this,
the plant at Bidadi, Karnataka, is surrounded by a green belt, meets
high environmental standards and has achieved the ISO 14001
certification in its very first year of operations.
[70]
Setting benchmarks for Production Excellence
Quality is ensured in every vehicle that rolls out of Toyota Kirloskar Motor, throug
in-built audits at every process of the system. The company's operational excellence i
based on the improvement tools and methods developed by Toyota under the Toyot
Production System (TPS), greatly emphasizing superlative quality and minimal waste
In line with Toyota's growing comfort with its India operations, the company set u
Toyota Kirloskar Auto Parts (TKAP), which commenced production of transmission
in May 2004, for its global requirements. Another initiative is the Toyota Techno Par
India (TTPI), a non-profit industrial infrastructure company aimed at boosting loca
industries and related job opportunitie
Setting benchmarks for the automobile industry, the manufacturing facility consists o
4 divisions (shops) – Press, Weld, Paint and Assembly.
[71]
Social Contribution Of TKM
Toyota Kirloskar Motor (TKM) is constantly working towards harmonious, scalable and
sustainable development of society. We use our expertise, technology and partnerships to help
communities who are in need.
The TKM Corporate Social Responsibility (CSR) policy is aligned with Toyota’s Global
Vision for 2020: 'Seeking Harmony between People, Society and the Global Environment,
and Sustainable Development of Society through Manufacturing'.
TKM has always and always will comply with local, national laws and regulations and
conduct their business operations with honesty and integrity.
We believe that any initiative must start at home – our beloved plant, in this case. Our plant
has been planned to seamlessly adapt to the nature in and around it, not the other way round.
Our processes and technology have been tuned to function with lower levels of CO2
emissions. We have a waste water recycling system, too. The paint we use in the plant is non-
toxic and water-based. Over the years, through conscious effort, we have achieved zero
landfill waste.
TKM's corporate approach is their commitment to invest and allocate resources for
development and to improve the quality of life for the communities in which they live and
work. TKM contributes towards vibrant world through a socially responsible and sustainable
approach that includes sharing knowledge and skills through the philosophy of giving back to
the community.
TKM extended gradually their CSR programme focusing on overall development of the
neighbouring villages and communities emphasizing on Education, Health & Hygiene, Road
Safety, Environment and Skill Development.
[72]
TMMK PLANT TOUR
Home of the world's finest automobiles and the world's finest automobile builders!
Toyota Motor Manufacturing, Kentucky, Inc.(TMMK) in Georgetown, Kentucky, is Toyota’s
first wholly owned manufacturing facility in the United States. Since 1988, Toyota's
Kentucky team has been building quality vehicles in the Bluegrass state. Today, "TMMK" is
the largest Toyota plant outside of Japan.
Each year in Georgetown, nearly 7,000 team members build about 500,000 vehicles and
engines. That's about 2,000 vehicles every day!!
TMMK boasts over 11,500 square foot state-of-the art Visitor Center, offering both visual and
hands-on experiences.
Visitors can see firsthand the beginnings of a global automaker, experience archival footage
and see the first American Toyota Camry that rolled off the assembly line in 1988. Special
exhibits also include detail principles of the Toyota Production System and the mechanics
behind Toyota’s groundbreaking environmental initiatives. Don’t hesitate to climb inside one
of TMMK’s vehicles on display to experience one of Toyota’s finest crafted automobile
TMMK and the Community
Toyota Motor Manufacturing, Kentucky, Inc., proves its commitment to the community, as
well as to the state, through both monetary contributions and personal involvement of TMMK
team members.
Besides being a major contributor to United Way of the Bluegrass, which serves eight central
Kentucky counties, many employees are members of and serve on community organization
boards.
The Kentucky Chamber of Commerce, Governor’s Scholars Program, Leadership Kentucky,
Urban League, YMCA Black Achievers, Lexington Humane Society, Louisville Zoo, Junior
Achievement of the Bluegrass, and the Governor's School for the Arts are just a few of the
many organizations that TMMK supports.
[73]
Toyota And The Environment
Working hard to reduce waste, conserve energy and protect the environment
Our Policy Statement

As a leading Automotive Manufacturing Facility, Toyota Motor Manufacturing, Kentucky,
Inc. (TMMK) is committed to ensuring our operations and business practices contribute to
the quality of life at TMMK and the surrounding community.
Team members are responsible for diligently managing their processes as part of the TMMK
team. In keeping with this philosophy, TMMK is adopting the EARTH CARE policy.
E = Provide Environmental Awareness to the TMMK team
Assess Environmental Impact of TMMK's operations and strive

A = to Kaizen
R = Reporting of Environmental concerns by team members
T = Train team members in areas of significant environmental impacts

Heighten awareness to Pollution Prevention and Emergency
H = Preparedness Programs
Strive for Compliance with applicable laws, regulations and other

C = TMMK requirements to protect the environment
A = Perform periodic compliance Audits for assessing performance
R = Respond to community and environmental compliance concerns
Encourage Environmental Improvement through setting Objectives and

E = Targets
4 Four reasons to buy Toyota
[74]
1. Safety – Toyota is regularly best in class when it comes to safety. In 2012, Toyota had ten
vehicles that received the IIHS Top Safety Pick Award. New Toyota models also feature the
Star Safety System, which includes lots of great safety features that come standard on all
vehicles.
2. Resale Value – Toyota regularly tops the list for Kelley Blue Book resale value. In 2012,
Toyota and Lexus won the Best Resale Value Award at the Los Angeles Auto Show. They
really hold their value when you use genuine parts such as Toyota Sienna parts.
3. Maintenance – Toyotas are durable, long-lasting vehicles. Eighty percent of Toyotas sold
20 years ago are still on the road today. Toyotas last a long time, especially when you use
genuine Toyota parts.
4. Technology – When you buy a Toyota, you’re getting some of the latest technology in
your vehicle. Toyota’s Entune system allows you to connect to popular mobile apps right to
your Toyota.
FINDINGS ABOUT TPS
[75]
 CONTINUOUS IMPROVEMENT
 LEARNING ORGANISATION
 RESPECT FOR PEOPLE
 TEAMWORK
 QUALITY DRIVEN RESEARCH
 LONG TERM PHLOSOPHY
 LEADERSHIP MANAGEMENT
 STANDARDISED WORK
 LESS WORKLOAD ON EMPLOYEES
 REDUCED WASTAGE IN PRODUCTION
 PROTECTING THE ENVIRONMENT
 SOCIAL CONTRIBUTION
 SETTING BENCHMARKS FOR PRODUCTION

EXCELLENCE
TOYOTA PRODUCTS
[76]
Toyota Awards
[77]
Awards – 2015
The Most Dependable In Its Segment

 * Entry Midsize Car Segment –Etios
Zgnition Auto Awards - 2015

 Category - Executive Sedan of the Year - Toyota Corolla Altis
ET-Promising Brands - 2015

 Category - ET-Promising Brands - Toyota Etios Series
Car India Awards

 Category - Executive Sedan - Toyota Corolla Altis
India Design Mark Awarded in 2015

 Category - India Design Mark Awarded in 2015 - Etios Cross
CNBC Overdrive Award - 2015

 Category - Sedan of the Year - Toyota Corolla Altis
[78]
RECOMENDATIONS
Based on the analysis of the TPS production processes and it’s principles,
TPS is recommended for all the production processes in motor vehicle

manufacturing industry.
[79]
CONCLUSION
TPS is a Production System that is steeped in the philosophy of the complete

elimination of all wastes and that penetrates all aspects of production with this
philosophy in pursuit of the most efficient production method.
[80]
BIBLIOGRAPHY
 en.wikipedia.org/wiki/Toyota_Production_System
 en.wikipedia.org/wiki/Kaizen
 en.wikipedia.org/wiki/The_Toyota_Way
 www.toyota-global.com
 www.toyotabharat.com
 www.toyotaky.com
 www.powershow.com/view1/1c89d4ZDc1Z/Toyota_Production_System_Lean_Manu
facturing_powerpoint_ppt_presentation
 www.leanmanufacturingtools.org
 www.slideshare.net
 The Toyota Way article by Jeffrey.K.Liker
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Toyota Production System Analysis of PR PDF

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TPS PROJECT.

STERLING COLLEGE OF ARTS, COMMERCE & SCIENCE

NERUL, NAVI MUMAI

COLLEGE CODE: 0552

“TOYOTA PRODUCTION SYSTEM – ANALYSIS OF

PRODUCTION PRINCIPLES AND PROCESSES IN

TOYOTA MOTOR CORPORATION”

PROF. MANASI KILEDAR

IN PARTIAL FULFILLMENT FOR THE COURSE OF

BACHELOR OF MANAGEMENT STUDIES (B.M.S)

ACADEMIC YEAR 2015 - 2016

I TUHL GOSWAMI OF NCRD’S STERLING COLLEGE OF ARTS, COMMERCE

Date: ____________ ______________________

I am thankful to STERLING INSTITUTE OF ARTS, COMMERCE AND

STERLING COLLEGE OF ARTS, COMMERCE & SCIENCE

NERUL, NAVI MUMAI

This is to certify that Mr Tuhil Goswami of Bachelor of Management

PROJECT GUIDE COURSE CO-ORDINATOR

PRINCIPAL EXTERNAL GUIDE

1. SUMMARY - TOYOTA MANAGEMENT PRACTICES

Toyota’s Management Practices

 Long-term thinking as a basis for management decisions

 A process for problem-solving

 Adding value to the organization by developing its people

 Recognizing that continuously solving root problems drives organizational learning

Lean principles are derived from Japanese Manufacturing Industry.

The Toyota Production System (TPS) is an integrated socio-technical system, developed

The Toyota Way incorporates the Toyota Production System

Principle 2. Create continuous process flow to bring problems to the surface.

Principle 3. Use “pull" systems to avoid overproduction.

Principle 4. Level out the workload (heijunka).

Principle 7. Use visual control so no problems are hidden.

Right process will produce right results

Solving root problems drives organizational learning

Quality - It is much easier to build in quality in one-piece flow. Every operator is an

Toyota's Six Rules

 No items are made or transported without a kanban.

 Always attach a kanban to the goods.

 Reducing the number of kanban increases the sensitivity.

Production levelling is also known as production smoothing or – by its Japanese original

On a production line, as in any process, fluctuations in performance increase waste. This is

1. Implement green stream/red stream or fixed sequence, fixed volume to establish

Andon refers to the light signal for help.

 Analyze the situation.

 Use one-piece flow and andon to surface problems.

 Ask "Why?" five times.

The five Ss (seiri, seiton, seiso, seiketsu, and shitsuke) are:

2. Straighten (orderliness}- A place for everything and everything in its place.

5. Sustain (self-discipline}-Maintaining a stabilized workplace is an ongoing process of

1. Set ground rules

2. Identify customer requirements

5. Map current state process

6. Debrief (Plus / Delta)

8. Review agenda, ground rules, and check-in report

9. Complete current state map

10. Assign task and wait time and characterize process

11. Identify value added steps, wastes, & pain points

12. Identify root causes of problems

13Brainstorm ideas to improve the process

14. Debrief (Plus / Delta)

15. Check-in meeting

16. Review agenda, ground rules, and check-in report

17. Evaluate and select improvements

Date: __________