Decoding the DNA of the Toyota Production System

Article Summary:
Continuous process improvement has long been a competitive advantage in Toyota's famed
production system (TPS). TPS has been imitated by organizations across a wide range of
industries, including aerospace, metals processing, and consumer goods. Nonetheless, most
of them fall short. Why? TPS's evident practices are adopted by managers, but the four
unwritten norms that make TPS successful are ignored. These rules, like strands of DNA,
regulate how people do their jobs, connect with one another, flow products and services, and
discover and solve problems in the process.

The rules rigidly specify how every

activity—
from the shop floor to the executive
suite,
from installing seat bolts to reconfiguring
a
manufacturing plant—should be per-
formed. Deviations from the
specifications
become instantly visible, prompting
people
to respond immediately with real-time
ex-
periments to eradicate problems in their
own work. Result? A disciplined yet
flexible
and creative
community of scientists

who continually push Toyota closer to its

zero-defects, just-in-time, no-waste idea
The standards describe how every operation, from adding seat bolts to reorganizing a
manufacturing plant, should be carried out, from the shop floor to the executive suite. People
are prompted to respond immediately with real-time experiments to eliminate faults in their
own work as deviations from the criteria become obvious. Result? Toyota has a rigorous yet
flexible and innovative group of scientists working to get the company closer to its zero-
defects, just-in-time, zero-waste vision.

It takes time to master TPS's four rules. You have a higher chance of reproducing Toyota's
DNA—and its performance—if you devote yourself to the task. It takes time to master TPS's
four rules. You have a higher chance of recreating Toyota's DNA and performance if you
devote yourself to the task.

Decoding the DNA of Toyota production:

Introduction:
Toyota's remarkable performance as a manufacturer has long been attributed to the TPS
system. Even though their distinctive processes have been widely adopted elsewhere, only a
few manufacturers have effectively imitated TPS system of Toyota.

This brings us to What exactly distinguishes Toyota from other companies.

TPS & their scientific method

More about the system:

 Toyota has instilled the scientific process such that its systems motivate workers and
managers.
 Toyota creates scientific communities so that when a problem emerges, they can generate
a variety of theories that can be tested repeatedly..
 If adjustments are to be made inside the TPS, Toyota employs a rigorous problem-solving
procedure that necessitates a thorough assessment of the situation before developing a
strategy for improvement.
 This system has evolved in the organization over time, but it was never documented, and
the workers are unable to explain it. That is why it is so difficult for other organizations to
understand.
 TPS has 4 rules- 3 for designing & 1 for improvement.

TPS Rule’s in use:

 1. All work is highly specified in its
content,
2. sequence, timing, and outcome
3.
4. All work is highly specified in its
content,
5. sequence, timing, and outcom
6. All work is highly specified in its
content,
7. sequence, timing, and outcome
Rule 1: All work is highly specified in its content, sequence, timing, and outcome

Employees follow a well-defined

sequence of
steps for a particular job. This specificity
en-
ables people to see and address
deviations
immediately—encouraging continual
learn-
ing and improvement
Employees follow a well-defined sequence of steps for a particular job. This specificity
enables people to see and address deviations immediately encouraging continual learning and
improvement

Rule 2: Direct connection between customer and suppliers

Workers needing parts submit cards
specify-
ing part number, quantity, and required
desti-
nation. Suppliers must respond to
materials
requests within specified periods of time.
Workers encountering a problem ask for
help
immediately. Designated assistants must
re-
spond at once and resolve the problem
within
the worker’s cycle time (e.g., the 55
seconds it
takes to install a front seat)
Workers who require parts must fill up cards that include the part number, amount, and
destination. Suppliers must react to requests for materials within a certain time frame. When
an issue arises, workers seek assistance right away. Designated assistants must act quickly to
remedy the issue within the worker's cycle time (e.g., the 55 seconds it takes to install a front
seat).

Importance of the connection:

1. Every Relationship Between any party at Toyota must be standardized and direct,
unambiguously specifying the people involved, the form and the quantity of the goods
and services to be provided, the way requests are made and the expected time in
which these requests will meet.
2. Connection is so smooth and well thought out and executed at Toyota compared to
other companies also substantially devote their time in coordinating people.
 3. If someone is not available then a supervisor can come and help in redesigning the
process.

Benefits:
1. No scope of grey area in deciding who provides what to whom and when
2. It creates a simpler relationship between all the stakeholders

Sub Rules:
1. People should respond to a supply request within their time framework. Failure to do
so will be the variance from expected process.
2. It is assumed that if someone failed at following the first rule then the request made
must be ambiguous. Perhaps the designated assistant has too many other requests or
not a problem solver.
3. If a assistance is not available to assist, we adjust the system constructively.

Problem with the rule:

1. If a problem is everyone’s problem then this approach does not help.
2. The striking thing about the requirement to ask for help at once is that it is often
counter intuitive for managers who are accustomed to encouraging workers to try to
resolve problems on their own before calling for help. But in such cases, the problems
remain hidden and are neither shared nor resolved companywide.
3. The situation is made worse if the workers begin to solve problems themselves and
then arbitrarily decides when the problem is big enough to warrant a call for help.
This only mounts up if not address at earliest.

Rule 3: Every product and service flows along a simple, specified path

Goods and services don’t flow to the next

available person or machine—but to a
specific

person or machine
Goods and services don’t flow to the next available person or machine—but to a specific
person or machine.

Sub Rules:
1. If the specified person for the job is not available, Toyota will consider it as problem
that might require the production line to be redesigned.

Benefits: Rule 3 keep the company to conduct experiments and remain flexible and
responsive.
Rule 4: Any improvement to processes, worker/machine connections, or flow path must
be made through the scientific method, under a teacher’s guidance, and at the lowest
possible organizational level.
Frontline workers make improvements to their own jobs. Supervisors provide direction and
assistance as teachers

Working:
Rule 4 establishes a criterion for evaluating the merits of improvement efforts and a process
for achieving them. The process for improving is also the mechanism for training people. As
a result, Rule 4 is essential for acquiring the ability to design, operate, and improve.

Furthermore, all improvement efforts, according to Rule 4, are attempts to improve individual
activities and systems of activities in order to always produce and deliver goods, services, and
information that are IDEAL.

Key Points:
1. A supervisors role consists of leading problem solving activities in a multi-skilled,
cross functional team environment such as
2. By involving everyone, TPS create a community of scientist who uses a rigorous
problem-solving process that requires a detailed assessment of current state of affairs
and a plan of improvement.
3. They follow trial and error in executing these improvements plan.
4. Improvement process is discovering and eliminating problems & waste.
5. The process is leadership driven.
6. Toyota operations management consulting division (OMCD) people helping &
teaching plant managers/ supervisors about the rules.

Meaning of IDEAL at Toyota:

1. defect-free product
2. On demand production & delivery
3. Production In batch size of one
4. Immediate response to customer requests
5. Zero
6. No threats to the supplier's physical, emotional, or psychological well-being.

7. And thus every improvement effort is to be designed as an experiment of specific

changes moving an activity, connection, or pathway closer to the IDEAL.

After looking at the rule’s specified by the company & the way it is followed at plant, we
realize that
TPS Rule observed from case:

1. Work is specified as to content, sequence, and outcome though dur to the nature of re-
manufacturing environment processing time of certain operations is not specified.

2. Even though the he customer- supplier connection are direct, the way to send request
and receive responses is not unambiguous and specified for time.
 3. Pathways for every product and service should be very simple, direct and
prespecified.

4. Improvement in the system as well as the resolution of problems is guided and pushed
to the lowest possible level but not in accordance with the scientific method.

How people should learn these rules:

1. Managers shouldn’t tell the workers and supervisors about how to their job rather they
should use a teaching and learning approach to allow their workers to discover these
rules as a consequence of problem solving.
2. Rules should be taught in a form of iterative questions lading to the impart of
knowledge implicitly.

Countermeasures in the TPS:

Toyota did not consider the adoption of specific tools and processes, such as cables and
Kanban, to be the normal method for resolving each issue. Toyota, on the other hand, has
exploited these tactics as a band-aid for their specific problems. As a result, such procedures
or instruments are known as countermeasures, and they include the following:

I. Unpredictable yield or downtime: When a person or equipment is unable to meet a

demand for which safety stock is utilized, this term is employed.

II. Time consuming setup’s: Because of the challenges they confront switching machinery,
suppliers make products in larger batches.

III. Consumer demand volume & volatility mix: For volatility in consumer demand, Buffer
stocks are employed as a countermeasure.

Organizational impact of the rules:

Above discussed working practices helped Toyota to become the master’s in manufacturing
process. These rules ultimately led to following outcomes for the company:
1. Efficiency of Repetitive manufacturing process has improved
2. Improvement in Total quality management (TQM)
3. Improved Total productive maintenance (TPM)
4. Better Total employee involvement (TEI)
5. Better Supplier partnership