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Toyota Production System


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A presentation made on TPS in college for the MBA course. Data collected from Internet and The Toyota Way.

Published in: Business, Technology

Toyota Production System

  1. 1. TOYOTA BACKGROUND <ul><li>The company was founded in 1937 by Kiichiro Toyoda as a spin-off from his father's company Toyota Industries to create automobiles. </li></ul><ul><li>The Toyota Motor Corporation was founded or established on 28 August 1937 when Toyoda Automatic Loom created a new division devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda. </li></ul><ul><li>The world headquarters of Toyota are located in its home country in Toyota, Aichi, </li></ul><ul><li>Toyota ( トヨタ ) is considered luckier than Toyoda ( 豊田 ) in Japan, where eight is regarded as a lucky number, and eight is the number of strokes it takes to write Toyota in katakana </li></ul>
  2. 2. TOYOTA PRODUCTION SYSTEM <ul><li>Make what the customer needs, when it is needed, in the right amount </li></ul><ul><li>Minimize inventories </li></ul><ul><li>Separate machine work from human work and fully utilize both </li></ul><ul><li>Build quality into the process and prevent errors from happening </li></ul><ul><li>Reduce lead-times to allow for rapid, flexible scheduling </li></ul><ul><li>Produce a high mix of low volume products efficiently </li></ul>
  3. 3. TPS Terms <ul><li>Muri (overburden) </li></ul><ul><li>Mura (unevenness) </li></ul><ul><li>Muda (waste) </li></ul><ul><li>TPS is the Operational Blueprint for a Lean Enterprise </li></ul><ul><li>Kaizen </li></ul><ul><li>JIT </li></ul><ul><li>According to Taiichi Ohno, the man credited with developing JIT, kanban is a means through which JIT is achieved.[2] </li></ul><ul><li>Piggly Wiggly </li></ul><ul><li>Jidoka </li></ul><ul><li>kanban </li></ul>
  4. 4. APPROACH <ul><li>To solve the problem of waste, Lean Manufacturing has several 'tools' at its disposal. These include continuous process improvement (kaizen), the &quot;5 Whys&quot; and mistake-proofing ( poka -y o ke ). In this way it can be seen as taking a very similar approach to other improvement methodologies </li></ul><ul><li>There is a second approach to Lean Manufacturing which is promoted by Toyota in which the focus is upon implementing the 'flow' or smoothness of work (opposite of mura , unevenness) through the system and not upon 'waste reduction' per se. Techniques to improve flow include production levelling , &quot;pull&quot; production (by means of kanban ) and the Heijunka box . </li></ul>
  5. 5. CONCEPTS OF TPS <ul><li>The Toyota Production System (TPS) was established based on two concepts: </li></ul><ul><li>The first is called &quot;jidoka&quot;(which can be loosely translated as &quot;automation with a human touch&quot;) which means that when a problem occurs, the equipment stops immediately, preventing defective products from being produced; </li></ul><ul><li>The second is the concept of &quot;Just-in-Time,&quot; in which each process produces only what is needed by the next process in a continuous flow. </li></ul>
  6. 6. GOALS OF TPS <ul><li>Main goals of TPS : </li></ul><ul><li>1 - To design out overburden (Muri) </li></ul><ul><li>2 - Smooth Production (Mura) </li></ul><ul><li>3 - Eliminate Waste </li></ul><ul><li>This production control system has been established based on many years of continuous improvements, with the objective of &quot;making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible.&quot; </li></ul>
  7. 7. JUST IN TIME <ul><li>In short, the just-in-time inventory system is all about having “the right material, at the right time, at the right place, and in the exact amount” but its implications are broad for the implementors. </li></ul><ul><li>Total there are 7 waste </li></ul>
  8. 8. Status <ul><li>Toyota together with its half owned subsidiary Daihatsu, is the world's largest seller of cars for the first half of 2007 selling 4.72 million vehicles, ending GM's 76 year reign as the world's best selling marque. Toyota plans to produce 9.4 million vehicles in 2007 </li></ul><ul><li>Although the Toyota Group is best known today for its cars, it is still in the textile business and still makes automatic looms, which are now fully computerized, and electric sewing machines which are available worldwide . </li></ul>
  9. 9. Market Postition <ul><li>In the Fortune Global 500, Toyota Motor is the 8th largest company in the world. </li></ul><ul><li>Since the recession of 2001, it has gained market share in the United States. </li></ul><ul><li>Toyota's market share struggles in Europe where its Lexus brand has three tenths of one percent market share, compared to nearly two percent market share as the U.S. luxury segment leader. </li></ul>
  10. 10. BEST SELLING CAR With over 30 million sold, the Toyota Corolla is the best selling car in the world