Toyota Motor Corporation.

Toyota Production System. (TPS)

A production system which is steeped in the philosophy of "the complete

elimination of all waste" imbuing all aspects of production in pursuit of the most efficient
methods.

Toyota Motor Corporation's vehicle production system is a way of "making

things" that is sometimes referred to as a "lean manufacturing system" or a "Just-in-
Time (JIT) system," and has come to be well known and studied worldwide.
This production control system has been established based on many years of
continuous improvements, with the objective of "making the vehicles ordered by
customers in the quickest and most efficient way, in order to deliver the vehicles as
quickly as possible."

The Toyota Production System (TPS) was established based on two concepts:
The first is called "jidoka" (which can be loosely translated as "automation with a
human touch") which means that when a problem occurs, the equipment stops
immediately, preventing defective products from being produced; The second is the
concept of "Just-in-Time," in which each process produces only what is needed by the
next process in a continuous flow.

Based on the basic philosophies of jidoka and Just-in-Time, the TPS can
efficiently and quickly produce vehicles of sound quality, one at a time, that fully satisfy
customer requirements.
Toyota Motor Corporation.

TPS Concept

Jidoka
Just-in-Time
— Highlighting/visualization of
— Productivity improvement —
problems —
- Making only "what is needed, when
-Quality must be built in during the
it is needed, and in the amount
manufacturing process!-
needed!"
If equipment malfunction or a defective
Producing quality products efficiently
part is discovered, the affected machine
through the complete elimination of
automatically stops, and operators cease
waste, inconsistencies, and
production and correct the problem.
unreasonable requirements on the
For the Just-in-Time system to function, all
production line.
of the parts that are made and supplied
In order to deliver a vehicle ordered
must meet predetermined quality
by a customer as quickly as possible,
standards. This is achieved through jidoka.
the vehicle is efficiently built within the
shortest possible period of time by
1. Jidoka means that a machine
adhering to the following:
safely stops when the normal
processing is completed. It also means
1. When a vehicle order is
that, should a quality / equipment
received, a production instruction
problem arise, the machine detects the
must be issued to the beginning of
problem on its own and stops,
the vehicle production line as
preventing defective products from
soon as possible.
being produced. As a result, only
products satisfying quality standards 2. The assembly line must be
will be passed on to the following stocked with required number of
processes on the production line. all needed parts so that any type
of ordered vehicle can be
2. Since a machine automatically
assembled.
stops when processing is completed or
when a problem arises and is 3. The assembly line must
communicated via the "andon" replace the parts used by
(problem display board), operators can retrieving the same number of
confidently continue performing work at parts from the parts-producing
another machine, as well as easily process (the preceding process).
identify the problem's cause to prevent
4. The preceding process must
its recurrence. This means that each
be stocked with small numbers of
operator can be in charge of many
all types of parts and produce only
machines, resulting in higher
the numbers of parts that were
productivity, while continuous
retrieved by an operator from the
improvements lead to greater
next process.
processing capacity.
Toyota Motor Corporation.

More about the Toyota Just in Time (JIT):

Philosophy of complete elimination of waste

"Just-in-Time" means making "only what is needed, when it is needed, and in

the amount needed." For example, to efficiently produce a large number of
automobiles, which can consist of around 30,000 parts, it is necessary to create a
detailed production plan that includes parts procurement. Supplying "what is needed,
when it is needed, and in the amount needed" according to this production plan can
eliminate waste, inconsistencies, and unreasonable requirements, resulting in
improved productivity.

Kanban System

In the TPS (Toyota Production System), a unique production control method

called the "kanban system" plays an integral role. The kanban system has also been
called the "Supermarket method" because the idea behind it was borrowed from
supermarkets. Such mass merchandizing stores use product control cards upon which
product-related information, such as a product's name, code and storage location, are
entered. Because Toyota employed kanban signs for use in their production processes,
the method came to be called the "kanban system." At Toyota, when a process refers
to a preceding process to retrieve parts, it uses a kanban to communicate which parts
have been used.

Evolution of the Kanban through daily improvements.

Through continuous technological improvements, the kanban system has

evolved into the "e-kanban," which is managed using IT methodologies and has
increased productivity even further.

Why use a supermarket concept? A supermarket stocks the items needed by its
customers when they are needed in the quantity needed, and has all of these items
available for sale at any given time. Taiichi Ohno (a former Toyota vice president), who
promoted the idea of Just-in-Time, applied this concept, equating the supermarket and
the customer with the preceding process and the next process, respectively. By having
the next process (the customer) go to the preceding process (the supermarket) to
retrieve the necessary parts when they are needed and in the amount needed, it was
possible to improve upon the existing inefficient production system. No longer were the
preceding processes making excess parts and delivering them to the next process.
Toyota Motor Corporation.

Two kinds of kanban (the production instruction kanban and the parts retrieval kanban) are used for managing parts.

Going futher in Jidoka’s concept.

Manufacturing high-quality products

Automation with a human touch

The term jidoka used in the TPS (Toyota Production System) can be defined as
"automation with a human touch." The word jidoka traces its roots to the invention of
the automatic loom by Sakichi Toyoda, Founder of the Toyota Group. The automatic
loom is a machine that spins thread for cloth and weaves textiles automatically.
Before automated devices were commonplace, back-strap looms, ground looms, and
high-warp looms were used to manually weave cloth. In 1896, Sakichi Toyoda invented
Japan's first self-powered loom called the "Toyoda Power Loom." Subsequently, he
incorporated numerous revolutionary inventions into his looms, including the weft-
breakage automatic stopping device (which automatically stopped the loom when a
thread breakage was detected), the warp supply device and the automatic shuttle
changer. Then, in 1924, Sakichi invented the world's first automatic loom, called the
"Type-G Toyoda Automatic Loom (with non-stop shuttle-change motion)" which could
change shuttles without stopping operation. The Toyota term "jido" is applied to a
Toyota Motor Corporation.

machine with a built-in device for making judgments, whereas the regular
Japanese term "jido" (automation) is simply applied to a machine that moves on its
own. Jidoka refers to "automation with a human touch," as opposed to a machine that
simply moves under the monitoring and supervision of an operator. Since the loom
stopped when a problem arose, no defective products were produced. This meant that
a single operator could be put in charge of numerous looms, resulting in a tremendous
improvement in productivity.

Jidoka and Visual Control

Since equipment stops when a problem arises, a single operator can visually
monitor and efficiently control many machines. As an important tool for this "visual
control" or "problem visualization," Toyota plants use a problem display board system
called "andon" that allows operators to identify problems in the production line with only
a glance.
Toyota Motor Corporation.

The origin of the Toyota Production System

A production system that has been fine-tuned over generations

Roots of the Toyota Production System

The Toyota Production System (TPS), which is steeped in the philosophy of

"the complete elimination of all waste" imbues all aspects of production in pursuit of the
most efficient methods, tracing back its roots to Sakichi Toyoda's automatic loom. The
TPS has evolved through many years of trial and error to improve efficiency based on
the Just-in-Time concept developed by Kiichiro Toyoda, the founder (and second
president) of Toyota Motor Corporation.

Waste can manifest as excess inventory in some cases, extraneous processing

steps in other cases, and defective products in yet other cases. All these "waste"
elements intertwine with each other to create more waste, eventually impacting the
management of the corporation itself.

The automatic loom invented by Sakichi Toyoda not only automated work which
used to be performed manually but also built the capability to make judgments into the
machine itself. By eliminating both defective products and the associated wasteful
practices, Sakichi succeeded in tremendously improving both productivity and work
efficiency.

Kiichiro Toyoda, who inherited this philosophy, set out to realize his belief that
"the ideal conditions for making things are created when machines, facilities, and
people work together to add value without generating any waste." He conceived
methodologies and techniques for eliminating waste between operations, between both
lines and processes. The result was the Just-in-Time method.

By practicing the philosophies of "Daily Improvements" and "Good Thinking,

Good Products" the TPS has evolved into a world-renowned production system.
Furthermore, all Toyota production divisions are making improvements to the TPS day
and night to ensure its continued evolution.

Recently, the "Toyota spirit of making things" is referred to as the "Toyota Way."
It has been adopted not only by companies inside Japan and within the automotive
industry, but in production activities worldwide, and continues to evolve globally.
Toyota Motor Corporation.

Sakichi Toyoda (1867-1930).

Toyoda Power Loom equipped with a new weft-breakage automatic stopping device
(developed in 1896) World's first automatic loom with a non-stop shuttle-change
motion, the Type-G Toyoda Automatic Loom (developed in 1924)

Kiichiro Toyoda (1894-1952).

Drawing on his experience of introducing a flow production method using a

chain conveyor into the assembly line of a textile plant (completed in 1927) with a
monthly production capacity of 300 units, Kiichiro Toyoda also introduced this method
into the body production line at Toyota Motor Co., Ltd.'s Koromo Plant (present day
Honsha Plant), completed in 1938.

Type-G Automatic Loom assembly line

Toyota Standard Sedan Model AA announced in 1936.

Toyota Motor Corporation.

Eiji Toyoda (1913-)

By ensuring thorough implementation of jidoka and the Just-in-Time method,

Eiji Toyoda increased workers' productivity by adding value and realized the Toyota
Production System, which enabled Toyota to compete head-on with companies in
Europe and the U.S.

Taiichi Ohno (1912-1990).

With strong backing from Eiji Toyoda, Taiichi Ohno helped establish the Toyota
Production System, and built the foundation for the Toyota spirit of "making things" by,
for example, creating the basic framework for the Just-in-Time method.
Toyota Motor Corporation.

llustration of the TPS.