TOYOTA PRODUCTION SYSTEM

BY: Prashant Thakur

 CONTENT TABLE:
• History Of Manufacturing Management
• HISTORY (company)
• Goals of TPS
• Toyota Principles
• Toyota Ways
• How to make money ????
• Toyota Production System
• TPS-House
• Main pillar of TPS
• Just-In-Time( Takt time,Pull System,Flow production)
• Heijunka

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• Waste (INVENTORY)
• Jidoka
• Genchi Genbustu
• Andon Wheel
• Standardization
• Mistake proofing
• Visual management
• Kaizen
• 5’s
• The Environment – Toyota’s commitment
• Health and Safety
• What TPS Means for your Business
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History of Manufacturing Management

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• The Toyota Production System (TPS) arose out of necessity in response to the
circumstance surrounding the company. Many of the foundational concepts are
old and unique to Toyota while others have their roots in more traditional
sources.
• The oldest part of the production system is the concept of Jidoka which was
created in 1902 by Toyota founder Sakichi Toyota.
• The most famous element of the TPS is no doubt the Just-in-Time pillar of the
production system.
• Everything was expected to be procured just in time and not too early or too
late. Later elements developed in the 1950’s including takt time,standardized
work, kanban, and supermarkets added to the basis for JIT.
• There are also many other tools and techniques that were developed in Toyota
such as 7 Wastes,Standardized Work, 5S, SMED, Visual Control, Error Proofing,
as well as many others.

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 GOALS OF TPS
The goal of the Toyota Production System is to provide products at world class quality
levels to meet the expectations of customers, and to be a model of corporate
responsibility within industry and the surrounding community.

The Toyota Production System historically has had four basic aims that are consistent
with these
values and objectives: The four goals are as follows:
1. Provide world class quality and service to the customer.
2. Develop each employee’s potential, based on mutual respect, trust and
cooperation.
3. Reduce cost through the elimination of waste and maximize profit
4. Develop flexible production standards based on market demand.

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 TOYOTA-PRINCIPLES
Section I – Long-term philosophy SUCCESS
• Principle 1: Base your management decisions on a long-term DEPEND UPON
• philosophy, even at the expense of short-term financial goals. THE PRINCIPLEs

Section II – The Right processes will produce the right results

• Principle 2: Create continuous process flow to bring problem to the surface.
• Principle 3: Use “pull” system to avoid overproduction.
• Principle 4: Level out the workload (heijunka). (work like a tortoise not the hare.)
• Principle 5: Build the culture of stopping to fix problems to get quality right the first time.

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 TOYOTA-PRINCIPLES
• Principle 6: Standardize 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.

Section III – Add value to the organization by developing your

people and partners
• Principle 9: Grow leaders who thoroughly understand the work, live the philosophy, and
teach it to others.

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 TOYOTA-PRINCIPLES
• 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.

Section IV – Continuously solving root problem drives

organizational learning
• 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.

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 The TOYOTA WAY

The five core values of The Toyota Way are shared and practiced by Toyota
employees at every level in their daily work and relations with others
This is how Toyota is able to deliver sustainable customer satisfaction.

Continuous Respect
Improvement For People

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CHALLENGE GENCHI GENBUTSU
“Going to the source to find
“To maintain a long-term the facts to make correct
vision and meet all challenges decisions, build consensus
with the courage and and achieve goals.”
creativity needed to realize
that vision.”

KAIZEN
“Continuous improvement.
As no process can ever
be declared perfect,
there is always room for
improvement.”
GENCHI

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 RESPECT TEAMWORK
“Toyota stimulates personal
“Toyota respects others,
and professional growth,
makes every effort to
shares opportunities for
understand others, accepts
development and maximizes
responsibility and does its
individual and team
best to build mutual trust.”
performance.”

Respect
For People Manufacturing Technology 12
 How to make money?
Traditional pricing strategy: Cost + Profit = Selling price
Example: When the cost goes up, the product selling price is raised to reflect the
higher costs and maintain the desired level of profit.
Some even argues that the profit added should be large enough to cover potential
losses if the product does not sell well.
Toyota accepts neither this formula nor these
arguments!

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 Toyota's philosophy
Selling price – Cost = Profit

Customers decide the selling price.

Profit is what remains after subtracting the cost from it.
The main way to increase profit is to reduce cost.

Consequently, cost reduction through waste elimination should have the highest
priority.
Toyota's paradox: Reducing cost (waste), will reduce lead time while increasing
quality and customer satisfaction.
How? We will discuss it soon.

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 Toyota Production System
Definition: The production system developed by Toyota Motor Corporation to provide
best quality, lowest cost, and shortest lead time through the elimination of waste.

The Toyota Production System empowers team members to optimize quality

by constantly improving processes and eliminating unnecessary waste in
natural, human and corporate resources.

It entrusts employees with well-defined responsibilities in each production step

and encourages every team member to strive for overall improvement.

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The TPS House

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 Main Pillars Of TPS

• JUST-IN-TIME

• JIDOKA

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 • JUST-IN-TIME- smooth, continuous, optimized workflows……………….

• JIT is a manufacturing philosophy involving an integrated set of procedures/activities

designed to achieve a volume of production using minimal inventories
OR
• A philosophy that seeks to eliminate all types of waste, including carrying excessive levels of
inventory and long lead times.
• Takes its name from the idea of replenishing material buffers just when they are needed
and not before or after.
• Best applied to a production system, such as automobile assembly, that would be
considered repetitive, such as a flow shop.

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 JIT Elements Are:
• Takt Time

• Flow Production

• Pull system

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• TAKT TIME(Heartbeat of production)

• Takt is the rate of customer demand – essentially, what the market is requiring be
produced.

• It is the basis on which we can create flow within our work-cells and throughout
our whole value chain from raw materials to customer delivery.

• Takt time is the available working time for production divided by the actual average
daily demand for our product(s) expressed in minutes. this gives us the customer
demand rate for use throughout our organization and the supply chain.

• The Takt time also forms the basis for enabling the design and balancing of our
work-cells and production lines in an efficient manner.
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 Takt Time vs Cycle Time
• Takt time should not be confused with machine cycle time; machine cycle time is the
time taken to produce a part, this could exceed takt time in some cases which would
mean that the process would be incapable of producing enough products within the
available time.

• Where cycle times exceed your Takt time there is a need for machines to either be
run on additional shifts to build stock, the product to be outsourced or a need for
additional machines to be run in parallel.

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 FLOW PRODUCTION

• Producing and moving one item at a time (or a small and consistent batch of
items) through a series of processing steps as continuously as possible, with each
step making just what is requested by the next step.

It is also called the one-piece flow, single-piece flow, and make one,
move one.

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Traditional Flow
Production Process (stream of
water)

Suppliers
Customers

Inventory (stagnant ponds)

Flow with JIT Material
(water in stream)

Suppliers

Customers
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 PUSH vs PULL SYSTEM
• Push system : material is pushed into downstream workstations regardless
of whether resources are available
• Pull system: material is pulled to a workstation just as it is needed

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 • Traditional Manufacturing Way:

• One directional flow system:

Work WS 2 WS 3
Station 1
Material
Information (Production Schedule)
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 • Pull (JIT) System

The production of items only as demanded for use or to replace those taken for
use.

Work WS 2 WS 3
Station 1
Material
Information (via Kanban/Card)
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 HEIJUNKA – LEVELLING THE FLOW
• The term heijunka describes the foundation of the TPS approach.

are produced, often significantly unrelated to demand.

• With heijunka a process is designed to switch products easily, producing what is
needed when it is needed, and relying on production.
• Any variations in volumes are accommodated by establishing a level-average demand
rate.
• It will reduce the ripple effect of the production.

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Small versus Large Lots
JIT produces same amount
in same time if setup times
JIT Small Lots are lowered

A A B B B C A A B B B C

Time
Small lots also increase flexibility to meet
customer demands
Large-Lot Approach

A A A A B B B B B B C C

Time
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Heijunka = Leveling (Smoothing) Production Schedule using Mixed Model
Sequencing = Uniform Plant Loading.

Determining Production Sequence

Monthly Daily
Product Demand Requirements
A

B 8002040
8002040
2002010
C
Largest integer that divides into all daily requirements evenly is 10
Product Daily Requirements Divided by 10
A

B 4 0 1 0  4
4 0 1 0  4
10101
C

Mixed-model sequence
A-B-A-B-A-B-A-B-C Repeat 10 times per day
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 • ELIMINATION OF WASTE
Waste – defined as anything that does not add value.

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WHY TOYOTA HATES INVENTORY ????

Work in process inventory level

(hides problems)

Unreliable Vendors Capacity Imbalances

Scrap
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 Reducing inventory reveals
problems so they can be solved.

WIP
Unreliable Vendors Capacity Imbalances
Scrap

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 Reducing inventory reveals
problems so they can be solved.

Unreliable Vendors WIP Capacity Imbalances

Scrap

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 KANBAN CARD

• A smooth, continuous and optimized workflow, with carefully planned and measured
work-cycle times and on-demand movement of goods, reduces the cost of
wasted time, materials and capacity.
• Team members can concentrate on their tasks without interruption, which leads to better
quality, timely delivery, and peace-of-mind for Toyota’s customers.

• In TPS it means having just the right components to build the product.

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 • JIDOKA……. building in quality

Jidoka translates as “automation” and can

be described as
“automation with a human touch”.
If a defect or error is
identified it is addressed immediately –
even if this means
temporarily stopping production.

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• GENCHI GENBUTSU – GOING TO THE SOURCE
• It means going to the actual place to solve the problem.

• which means ‘going to the source’ of the problem and assessing it for yourself rather
than relying on information supplied by others, in order to gain a complete and
accurate understanding.
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 ANDON BOARD/WHEEL

• The Andon board is a simple but highly-visible electronic sign displaying the status of
production lines.
• It notifies management immediately if a worker has identified a fault, precisely
identifying its location.
• Workers take responsibility for production quality, with the power to stop the
production line as required.
• The production line will not be restarted until the
reason for the fault has been resolved.

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 STANDARDISATION
• key element for quality assurance is a focus on standardization.
• Developing and relying on standardized work tasks not only ensures
consistently high levels of quality, but also maintains production pace and
provides a benchmark for implementing continuous improvement.

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 • MISTAKE-PROOFING AND LABELLING
Devices that make it difficult or impossible for a worker to make
typical errors at his or her workstation are a common sight on
Toyota production lines.

Goal: Finding defects

before they occur
= Zero Defects

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 • VISUAL MANAGEMENT
• In shop floor the things are visually display so that every one can excess them.
• Provide safety features for employs like by visually representing the Heights, how to
carry load, how to move pallet truck etc.
• Help's visitor to excess plan without the help of others.
• It also applies for tools,materials,documents etc.

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QPSDC

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A CULTURE OF CONTINUOUS IMPROVEMENT – ‘5S’
• SEIRI – Sifting SEITON – Sorting
• SEISO – Sweeping and cleaning SEIKETSU – Spic-and-span
• SHITSUKE – Sustain

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 The Environment – Toyota’s commitment
• Toyota has a policy in place to reduce CO2 emissions, use resources more efficiently, and
reduce environmental risk factors.

• Its policy is to analyze the

effects of every stage in its
products’ lives: development,
manufacturing, operation, and
recycling.
• TPS philosophy also includes
the 3Rs – reduce, reuse,
recycle

manufacturing sites have all achieved ISO 14001 certification.

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TPS IS CONCERNED WITH Health and Safety
• Toyota maintains health and safety for its
team members so they can concentrate on
their jobs delivering the best quality
products and be more efficient.
• Manufacturing sites have achieved OHSAS
18001 certification –the international
standard for occupational health and
safety management.

OHSAS 18001 is a British

Standard for occupational health
and safety management systems

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 What TPS Means for your Business
• Toyota’s customers know what to expect when they buy from Toyota – a business
partner with the strength and flexibility to meet the needs of a changing market

• Quality inherent in Toyota’s products, thanks to the company’s constant striving

for improvement, has direct benefits for their customers…
• Costs are kept to a minimum thanks to a good return on investment based
on the productivity and reliability of Toyota's products…
• Delivery is on time, and to the expected standard, allowing Toyota's customers
to plan and maintain their operations successfully…

• Environmental concerns are shared by Toyota and its customers, from

manufacturing through to recycling at end-of-life. Choosing Toyota products is
a good choice for the environment…
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• Safety is Toyota’s constant concern – both for its employees and for those
of its customers.

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