2. INTRODUCTION
In the mid-1990s, more than fifty
executives and engineers from major
automobile companies worldwide
visited Toyota Motor Company's
(Toyota)manufacturing complex at
Georgetown, US, to study the Toyota
Production System(TPS). The visit also
included an intensive question and
answer session. Even though the
visitors were from competing
automakers, including Ford etc Toyota
did not deny them access to the plant.
3. SECRET TO SUCCESS
The TPS aimed to produce world-class,
quality automobiles at competitive prices.
It was built on two main principles, Just-
in-Time (JIT) production and Jidoka.
JIT was used not only in manufacturing
but also in product development, supplier
relations and distribution. Analysts
remarked that despite imitating Toyota's
JIT for many years, no other automaker in
the world had been able to make their
production systems and processes as
efficient as Toyota had done.
4. SOLUTION
The major challenge to all automotive
companies in inventory management,
obsolete after 2 years, new models, waste
moments of workers etc.
The JIT production was defined as
'producing only necessary units in a
necessary quantity at a necessary time
resulting in decreased excess inventories
and excess workforce, thereby increasing
productivity. JIT was based on the principle
of producing only what is needed and
nothing more than needed. JIT focuses on
continuous improvement.
The JIT system was aimed at avoiding
waste, reducing inventories and increasing
production efficiency.
