Started in 1933 as a division of Toyoda Automatic Loom
Toyota is devoted to the production of automobiles under
the direction of the founder's son, Kiichiro Toyoda.
Its first vehicles were the A1 passenger car and the G1 in
The Toyota Motor Co. was established as an independent
company in 1937.
In 2008, Toyota's sales surpassed General Motors, making
Toyota number one in the world.
FROM THE BEGINNING…
Toyota's management philosophy has evolved from the
company's origins and has been reflected in the terms "Lean
Manufacturing" and Just In Time Production.
It was instrumental in developing Toyota's managerial values
and business methods collectively known as the Toyota
Toyota Way -an expression of values and conduct guidelines
that all Toyota employees should embrace. Under the two
headings of Respect for People and Continuous Improvement.
Always be faithful to your duties
Always be studious and creative, striving to stay ahead
of the times.
Always be practical and avoid frivolousness.
Always strive to build a homelike atmosphere
Always have respect for spiritual matters, and remember
to be grateful at all times.
THE 5 PRINCIPLES…
JUST IN TIME
JUST IN TIME-
JIT Production system is also known as the zero
inventory production system.
At Toyota JIT controls delivery necessary quantities
for operations i.e.Making only "what is needed, when
it is needed, and in the amount needed!“
Based on Three fundamental principles:
Elimination of waste
Continuous quality improvement
A participative work culture
JIT processes eliminate inventories through
interdependent relationships in the operations.
It eliminates waste(anything which does not add value
to the production) i.e. TPS is compared to “squeezing
water out of towels that are already dry”.
A Defect prevention system is used to enhance the
quality of products.
The culture of Toyota ensures that the entire
production team focus on preventing any defects and
reducing waste from the production process..
JUST IN TIME(contd.)
Practices used for JIT implementation:
• Short setup times
• Multi skilled workers
KANBAN system provide customers with the right
product at the right time.
It ensures that there is no late or early production.
Ii is characterized by a pull principle that ensures that
parts are sourced when needed and there are no
JUST IN TIME(contd.)
Vehicle order received
Production instructions are issued
Assembly line stocked with required
no. of all parts
Replace the parts used by retrieving the same
number of parts from the parts-producing
preceding process must be stocked with small
numbers of all types of parts and produce only
the numbers of parts that were retrieved by
an operator from the next process.
In order to deliver a vehicle ordered by a customer as quickly as
possible, the vehicle is efficiently built within the shortest possible
period of time by adhering to the following:
• Poka yoke is a Japanese term that means "mistake-
• It’s a mechanism in a lean manufacturing process that
helps an equipment operator avoid (yokeru) mistakes
• Its purpose is to eliminate product defects by preventing,
correcting, or drawing attention to human errors as they
• The concept was formalized, and the term adopted,
by Shigeo Shingo as part of the Toyota Production
How to fight with defects?
The Toyota System or Lean Philosophy aims for perfection.
In manufacturing one defect can destroy the brand’s
reputation or - even worse – put people in danger?
Traditional management’s first response would probably be
something to the effect of setting up an effective quality
"kai" means "change”
The word Kaizen means "continuous improvement".
Kaizen is a Japanese philosophy that focuses on
continuous improvement throughout all aspects of life.
When applied to the workplace, as a Kaizen Management
System Kaizen activities continually improve all functions
of a business, from manufacturing to management.
By improving standardized activities and processes, Kaizen
aims to eliminate waste.
First implemented after world war 2, This method became
famous by the book of Masaaki Imai “Kaizen: The Key to
Japan's Competitive Success.”
are all included within the Kaizen system of running business.
1. The employee identifies a problem, waste, or an
opportunity for improvement and writes it down.
2 Discusses it with his/her supervisor.
3. The supervisor reviews the idea within 24 hours and
encourages immediate action.
4. The employee should/may take leadership to
implements the idea.
5. The idea is written up on a simple form in less than
6. Supervisor posts the form to share with and stimulate
others and recognizes the accomplishment.
Three Key Characteristics
1.Permanent method changes. Change the method.
Once the change is made, you can’t go back to the old
way of doing things.
2.Continuous flow of small ideas. The smaller ideas,
the better. Kaizen is small ideas.
3.Immediate local implementation. Be realistic.
Kaizen is done within realist or practical
Kaizen Management System empowers employees,
enriches the work experience and brings out the best
in every person.
Serves as a barometer of leadership.
Kaizen helps eliminate or reduce wastes and
improves quality, safety, cost structures, delivery,
environments, product and customer service.
"ji" refers to the worker herself.
If he feels “something is wrong” or “I am creating a
defect”, he must stop the line.
"Do" refers to motion or work, &
"ka" to the suffix “-ation”.
JIDOKA is defined as automation with a human mind i.e
"stop and respond to every abnormality "
JIDOKA – how it works ?
A machine safely stops when the normal processing is completed.
The machine detects the problem on its own and stops, preventing
defective products from being produced.
Only products satisfying quality standards will be passed on to the
following processes on the production line.
The problem is communicated via the "andon" (problem display
board), operators can confidently continue performing work at
another machine, as well as easily identify the problem's cause to
prevent its recurrence.
Each operator can be in charge of many machines, resulting in higher
productivity, while continuous improvements lead to greater
COMMON CAUSES OF DEFECT
Inappropriate operating procedures
Excessive variation in operations
Defective raw material
Human or Machine error
Quality problem or alert
Health and safety concern
Lack or overload of parts
An operator communicating an
A randon problem display board that
An operator communicating an abnormality
9 Wastes To Be Eliminated
1.Work-in-process. Stocking items not immediately needed
2. Quality. Producing defective products.
3. Facilities. Having idle machinery and breakdowns, taking too long
4. Expenses. Over investing for required output
5. Indirect labor. Excess personnel due to bad indirect labor system.
6. Talent. Employing people for jobs that can be mechanized or
assigned to less skilled people.
7. Motion. Not working according to the best work standards.
8. Product Design. Producing products with more functions than
9. New-product run-up. Making a slow start in stabilizing the
production of a new product.