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The Toyota Method - History and Examples

The Toyota production system was originally developed in Toyota's automobile factories and focuses on continuous improvement and waste elimination. It was created by Sakichi Toyoda, Kiichiro Toyoda, and Taiichi Ohno between 1902 and 1975, with an emphasis on just-in-time production, quality, and efficiency. The system has become a highly influential business philosophy worldwide.
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0% found this document useful (0 votes)
38 views7 pages

The Toyota Method - History and Examples

The Toyota production system was originally developed in Toyota's automobile factories and focuses on continuous improvement and waste elimination. It was created by Sakichi Toyoda, Kiichiro Toyoda, and Taiichi Ohno between 1902 and 1975, with an emphasis on just-in-time production, quality, and efficiency. The system has become a highly influential business philosophy worldwide.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

The Toyota Production System

Sakichi Toyoda, his son Kiichiro Toyoda, and engineer Taiichi Ohno. Surely if you are a fan
Does the name Toyota ring a bell? They are our founders and the main ones.
responsible for the famous Toyota Production System or Toyota Production System
(TPS).

In 1902, Sakichi invented a loom that could detect a broken thread and stop the process.
manufacturing. From this innovation emerged the pioneering idea of a 'removal system'
"complete of all waste" and the search for more efficient methods in the
production.

In 1937, Kiichiro, son of Sakichi Toyoda, founded Toyota Motor Corporation and developed its
own philosophy based on the concept of just in time, which would become one of the
basic pillars of the company's comprehensive production system.

Shortly after, another visionary (Eiji Toyoda, Kiichiro's cousin) became the president.
from Toyota Motor Manufacturing and tasked engineer Taiichi Ohno with the always demanding
task to increase productivity.

Ohno investigated and developed the quality control method of pioneer W. Edwards.
Deming, based on the technological improvement of each stage of a business, from design
up to post-sales. This is how it definitively shaped the concept of just in time and to the
Kaizen principle, which makes Ohno the true architect of the TPS.

The system is studied in universities and companies around the world, creating a
reputation of a business philosopher respected by all and envied by many, due to
its benefits in terms of efficiency and quality in manufacturing. Of course, it is the
philosopher with whom Toyota works in Mexico.
It is an integral production system 'Integral Production System' and management that is
related to the Toyotism that emerged in the Japanese automotive company 'Toyota'. In
Originally, the system was designed for automobile factories and their relationships with suppliers.
and consumers, however, this has extended to other areas. This system is a
great precursor for the generic Lean Manufacturing.

The development of the system is primarily attributed to three people: the founder of
Toyota, Sakichi Toyoda, his son Kiichiro, and engineer Taiichi Ohno, who created this
system between 1946 and 1975. Originally called 'Just-in-time Production'. The
The main principles of SPT are mentioned in the book 'The Toyota Way'

This system, more than any aspect of the company, is responsible for having made it
that today is Toyota. Toyota has been recognized as a leader in manufacturing
automobiles and the production industry. It became known as TPS in 1970, but was
established long before by Taiichi Ohno in Japan. Based on the principles of Jidoka and
Just-in-time, the system is a fundamental factor in reducing inventory and defects.
in the plants of Toyota and its suppliers. The TPS, with its emphasis on continuous improvement
and the value of employee commitment is considered by the automotive industry
like a true benchmark.

The idea of Just in Time production was originated by Kiichiro Toyoda, founder of
Toyota. The question was how to implement the idea. While reading descriptions of the
American supermarkets, Taiichi Ohno saw the supermarket as a model for what
I was trying to get it from your factory.

A low level of inventory is key to achieving the Toyota Production System.


An important element of the philosophy that underlies its system is to work.
intelligently and eliminate spending in such a way that only the minimum level is needed
inventory. Many Western businesses, seeing Toyota's factories, decide to attack the
high levels of inventory directly without understanding what made it possible to have those
reductions. Imitating this process without understanding the basic concept or the motivation could
have been what led to the failure of those projects.
Toyota Production System

It is a work philosophy where all decisions are made with a long-term perspective.
although it may result in short-term harm. It is thus a philosophy in line with the
Epicurean thought in the sense of sacrificing immediate rewards in favor of
greater future rewards. Broadly speaking, this philosophy (TPS) is based on
decision patterns (techniques). The objective of these techniques is to produce things
efficiently to generate benefits that ensure the company's survival.

Toyota's mission is to make a better world. Toyota not only contributes to society by
not only through the qualified labor positions it creates, but also does so in
through the taxes it pays on its profits.

Toyota techniques can be conceptually grouped into:

1. Create a continuous flow of products in the production chain so that the


problems come to the surface (make quality problems visible).

Instill a sense of crisis, tension, and importance in what employees do.

b. Maintain the morale, attention, and motivation of the workers


c. Continuous improvement (kaizen-5S).

2. Avoid doing unnecessary things (mute), from which it derives:

Just-in-Time: Produce just what is needed and at the right moment

b. Jidouka, automating automatable tasks

c. Minimize all risks

3. Standardize tasks so that people can improve in them by setting a


stable standard. A concept derived from standardization is: Equalizing production
daily (Heijunka, Takt time). This concept is in tension with the Just-in-Time principle.

Decisions are made by consensus, thoroughly examining all options.


consensus in interposition to more personalist styles of leadership minimizes to a certain extent
point all long-term risks including being the first in a market
moving advantage). (Paradoxically, Toyota is the company that can develop a
new car model faster than any other manufacturer and normally the
last to incorporate new technologies.
Operational objectives

According to the expert in the Toyota production system, Igarashi Ryou, we can synthesize
TPS in the following way: The objective of TPS is to improve productivity, quality,
lead times, reducing stocks and inventory through: The elimination
of waste (waste) through two basic principles: Just-in-Time and jidouka: that
expressed through the following techniques:

5S
2. production leveling (heijunka)
3. mini-batch multi-product
4. visual management (VM).

Difference between 'Lean' and 'TPS'

Lean in English refers to something thin, without fat or superfluous elements. Some environments
Lean production means an environment without superfluous things, and therefore, more efficient.
where everything irrelevant to production is considered superfluous. The idea of lean is
corresponds, in some way, to the asceticism of the 16th century. (the word ascetic comes from the
Greek: professional, athlete.

The ascetics: Saint John of the Cross (1542-1591) and Saint Teresa of Jesus (1515-1582), by
for example, they predicted the detachment from worldly materialism as they believed that everything
that superfluous and irrelevant matter constituted a distraction that hindered what was truly
important: his religious faith. Another influential ascetic was Saint Ignatius of Loyola (1491-1556),
great entrepreneur who founded what we could consider the first great lean company
made in Spain: The Company of Jesus.

The TPS: efficiency.

Lean is explained in antagonistic terms, that is, by its enemies, who are three:

Waste of resources.
Inflexibility of production processes that do not adapt to variations of
the demand (the market).
3. Variability (little stability) of processes (defects, service level, etc.)
4.

The fundamental difference between lean and TSP, therefore, is one of form and not of substance.
it lies in the perspective they apply: lean explains the concepts from a rational perspective.
dualist, while TPS explains things from a more heuristic Confucian perspective.

The Toyota production system was applied in Japan during the long period of
growth that occurred after World War II and would reach its peak in the 1960s
the sixties. The Toyota system is essentially based on two major pillars: the
innovation in work management in workshops and in control mechanisms
internal of the company.
(The TOYOTA production system)

The giants in Japanese and Korean manufacturing owe their success not to a better
administration, no to cheaper labor, no to a form of government favorable to the
industry and not to a better-funded industry, but rather that they owe their success to a better
manufacturing technology and the Toyota production system is one of which has
Given that competitive advantage in the global market, the Toyota production system is
a revolutionary system adopted by Japanese companies after the crisis
oil crisis of 1973, the company Toyota began to use it in the early 1950s and
the main purpose of this system is to eliminate all unnecessary elements in the
production area (which includes from the purchasing department of raw materials,
up to customer service, through human resources, finance, etc.) and it is used
to achieve unimaginable cost reductions while meeting the needs
from customers to the lowest possible costs.

To achieve the previous objectives, the system must meet the goals of three
subsystems, which are:

1.- Quality Control, which designs and develops a system that adapts to the
daily or monthly demand fluctuations in terms of quantity and variety of
products.

2.- Quality assurance, this component ensures that each process will be able to
only to manufacture good (quality) items for the following processes.
world-class manufacturer primarily seeks prevention techniques and the
problem solving is the responsibility of everyone, from the employee who
has just joined the company up to the general director.

3.- Respect for the staff, who need to be trained and educated, during the time
that the system uses people to achieve the objectives, people constitute the
most important asset of the entire company. Employees are trained to
perform a greater number of operations and are capable of taking different and
greater responsibilities and they are paid based on individual flexibility, the
employee participation, knowledge, skills, problem-solving ability
problems and the willingness to work in teams.
Important concepts of the Toyota production system

1.- Just in Time Manufacturing, which means producing the required amount of units,
The required time and in the required quantities. Just in Time eliminates inventories.
unnecessary both in process and in finished products and allows quickly
adapt to changes in demand.

2.- Autonomation (Jidoka) which means defect control in Japanese


autonomous. The autonomization never allows the unit with a defect of a process
flow to the next process, there must be devices that automatically stop
the machines and no more defects are produced. The worst part is not stopping the process, the worst part is
produce defective items.

3.- Flexible workforce (shojinka) which means varying the number of workers
to adjust to changes in demand and the employees should at least
to know the operations, before and after the one they are carrying out and they must be
capable and willing to carry out different types of activities in any area of
company. If the company cares about the worker's family, the worker will
will worry about the company.

4.- Creative thinking or creative ideas (Soikufu) that means to capitalize on the
suggestions from the workers for which it is necessary to have available resources to
respond to those suggestions. It is better not to have a participation program of the
employees who have one to whom the proper attention is not given. If we are asking
suggestions to improve the company we must have a response system for them
suggestions.

EXAMPLES

Toyota

Examples of JUST IN TIME in companies.

Toyota Motor Corporation is one of the most well-known examples of companies that use
the Just in Time method.

When a customer places an order, Toyota only receives the raw materials at the factory.
when it is ready to start building the car. This process minimizes costs
inventory maintenance.
Bibliography
ING Podadera, R. (n.d.). cba.infd.edu.ar. Retrieved from
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