TUM School of Management

Production and Supply Chain Management

Prof Martin Grunow Technische Universität München

Brief History of Lean Production:

The Toyota Production System

Professor Holly Ott

Production and Supply Chain
Management Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott 1
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Learning Objectives
• Outline the history of the Toyota Motor Corporation from
the Toyoda Automatic Loom Works.
• Describe the historical drivers for the development of the
Toyota Production System at Toyota and identify the important
contributors to TPS.
• List the core elements of the Toyota Production System.

Holly Ott 2
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Brief History of TPS

• 1926 Sakichi Toyoda: Toyoda
Automatic Loom Works
• 1933 Kiichiro Toyoda: automotive
division. Produced military
trucks during WWII

©2012 from "A First Course in Quality Engineering: Integrating

Statistical and Management Methods of Quality" by K.S.
Krishnamoorthi. Reproduced by permission of Taylor and Francis
Group, LLC, a division of Informa plc.

Holly Ott 3
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Brief History of TPS

• 1926 Sakichi Toyoda: Toyoda
Automatic Loom Works
• 1933 Kiichiro Toyoda: automotive
division. Produced military
trucks during WWII
• After war, shortages, little cash…
Ford Motor Co. at the Rouge plant
near Detroit producing 7,000
cars/day. Toyota producing 200 per
year
• 1940s Eiji Toyoda … needed to do ©2012 from "A First Course in Quality Engineering: Integrating
Statistical and Management Methods of Quality" by K.S.
things differently! Krishnamoorthi. Reproduced by permission of Taylor and Francis
Group, LLC, a division of Informa plc.

Holly Ott 4
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Brief History of TPS

• Toyota Production System – Lean
Manufacturing
• Taiichi Ohno is credited for creating the
the system
• Dr. Shigeo Shingo, author Single Minute
Exchange of Die procedure.
https://en.wikipedia.org/wiki/Taiichi_Oh
• Quantity Control (Just In Time) no#/media/File:Taiichi_Ohno.jpeg
• Quality Control & Improvement
• Waste and Cost Control
• The term “Lean” is from John Krafcik’s
1988 article “Triumph of Lean
Production Systems.”
Holly Ott 5
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Core Elements of TPS Source: K. Mishina (1992)

• Maximize share of value-adding • Create a self-learning, continuously

activities
- Elimination of “waste” (muda)
- Strive to minimize batch sizes
(ideally
single piece flow)
- Build processes based on true customer
requirements
• Implement stable, standardized
processes
- Workplace organization
- Standard Operating Procedures
- Fail-safe processes (Jidoka)
• Backwards
Reference: TUM School of
Management, Chair: Production
and Supply Chain
Management, Course:
Introduction to Lean
Production
Holly Ott
improving organization
- Create transparency on problems/
facilitate immediate identification
- Conduct rigorous root-cause problem
solving
- Make continuous improvement part of the
daily work
• Take a holistic Supply Chain
perspective
- Customer requirements -
driven
perspective
People development- is the key integration to
include suppliers
success factor
- Employee skill building is an
important
part of the TPS
6
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Brief History of Lean Production:

The Toyota Production System

Professor Holly Ott

Production and Supply Chain
Management Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott 7