Changes In Toyota Motors’

Operations Management
Nafis Sadik
Roll : 039
Batch : 63 D (A)
 Toyota Production System
Total Production System developed by Toyota Motor Corporation to provide best quality ,lowest cost
and shortest lead time throughout the elimination of waste. TPS, which was developed over several
decades has been a key driver behind Toyota Motors’ rise to prominence.
TPS incorporated many changes such as line segmentation, the use of inter-segment buffers and high-
tech automation because it got increasingly hard to recruit and retain production workers.
TPS quickly became the standard for global manufacturers. The TPS was adopted by other Japanese
car manufacturers after the oil crisis of 1973/74, and by American and British competitors after
Japanese transplants proved successful in these countries.
 Classical TPS ( Toyota Production System)
Two key principles of TPS:
 Only products which are sold are produced
 Smooth and uninterrupted flows that arrive ‘Just In Time’ to be processed
 Problems Faced in Classical TPS

In the late 1980s, Toyota Motors started various experiments to cope with labour market shortages.
These ranged from automating manual work through high-tech machinery to a variety of measures
that were meant to increase the attractiveness of assembly work. The problems faced in the
classical TPS included:

 Tough physical working conditions

 Employees have to work under high pressure
 Tight time schedule
 Performing repetitive tasks at high space
 Changes that were incorporated
Toyota experienced substantial difficulties in recruiting and retaining assembly staff. To resolve
this problem the high-tech approach was pioneered at Toyota’s Tahara plant. Due to breakdowns,
high maintenance costs, heavy investments and troublesome acceptance by assembly workers, this
strategy was quickly abandoned. Toyota's prime strategy was to adopt a high-tech strategy, which
might result in a substantially reduced need for staff. So they brought some changes in 1980s :
 Segmented lines built around functions
 Buffers between lines
 Various ergonomic measures to improve physical working environment
 Mechanization and automation of particular assembly tasks
 Open towards continuous improvement (Kaizen)
 Supporting personnel policies.
 Segmented Lines
Previously, long assembly lines without buffers were standard. But that was problemtic as
disturbance anywhere in the line would effect the whole production. To overcome this Toyota
engineers developed the ‘jiritsu gata kanketsu kotei’- which means ‘completing processes
autonomously’. While keeping the line layout and kumis as strong elements of the former approach,
the idea has become to create rounded-off modules of tasks.
For example, while the different components of the exhaust system were previously assembled at
various working stations spread over the line, it is now considered to be one module that is
assembled as a system. Some key elements were,

 Creating rounded-off modules of task

 Each segment operated by units of 20 people, called ‘kumi’.
 Inter-segment buffers with holding capacity of 5 cars
 Workers only need to do ‘functionality’ related tasks
 Ergonomic Measures

 Introduced Toyota Verification of Assembly Line for identification and measurement of

physically demanding works
 Introduction of the raku raku seats
 Introduction of dolly, a cart containing necessary tools for the workers
 Reduction of noise levels
 Using bright colors
 Placing toilets in close vicinity of the line segments
 Mechanization & Automation

 Mechanization of particular assembly tasks with

simple machinery

 Mechanized workstations are placed either at the

end or beginning of the line

 This was done so that workers do not feel

alienated through the presence of complex
machinery
 Improvement activities

 No obligation for the workers to come up with a minimum number of suggestions per year
 Emphasis on enhancing individual capabilities and self-development, and on creating working
conditions in a broad sense.
 Improvements are sought on no only for production related tasks but also other non-section
issues
 Realization of quality is more important than quantity.
 Continuous Improvement/ Kaizen

The continuous improvement system is the backbone for TPS evolution. However, the policy to
prefer quality of quantity has resulted in a decline in the number of improvement suggestions per
employee per year

 No obligation for the workers to come up with a minimum number of suggestions per year
 Improvements are sought on no only for production related tasks but also other non-section
issues
 Realization of quality is more important than quantity
 Implementation of the changes
in
The Toyota Plants

Toyota Kyushu

1. Increased transparency for workers, making it easier for them to learn and transfer skill
2. Simpler forms of mechanization easily understandable by workers
3. Invention and making of low cost devices that are simple and cope up with demand variety
4. Suggestions per year came down from 22000 to only 10 on average per employee
 Toyota Takaoka
1. Humans do delicate jobs’ and complicated tasks, whereas robots and other machines are to
take care of the handling of heavy and bulky parts.
2. Mechanization level was low to avoid heavy investment and maintenance problems.
3. Machines were general so that they may be used for different kinds of cars.
4. The ergonomic measures include the raku raku-seat , the actual number of which was limited.
5. Synchronized dollies were used to improve assembly work environment.
6. Reduced number of parts to be assembled by creating sub-assemblies.
 Daihatsu-Ikeda
1. Total investment was kept low at approximately 10% of a conventional set-up.
2. 90 specialized manual welding guns which had become redundant at other locations were used
in the line.
3. Assembly line had no conveyor belt.
4. This facility acted as a training center .
 Conclusion

Continuous improvement system is still in place as the backbone for TPS evolution. But the policy
to prefer quality of quantity has resulted in a decline in the number of improvement suggestions
per employee per year. Over the years many changes were witnessed .Some of which were
accepted and some were not.
 During the last decade some of changes like high-tech approach have been abandoned and
transparency has been deemed less important.
 Changes like intra-line segments and ergonomic improvements are seem to have become more
broadly accepted and incorporated globally.