This document discusses the Toyota Production System and its transition from mass production to lean manufacturing. It provides background on Toyota as the world's largest automaker. The key aspects of the Toyota Production System discussed are just-in-time production and supply chain integration, which aim to eliminate waste through continuous improvement. Suppliers are expected to provide frequent, small deliveries with high reliability and participate in long-term relationships focused on productivity and quality gains.

1. The Toyota Production System
A Transition from Mass Production to
Lean Manufacturing and Supply Chain Management
Gunjan Tiwari
D-19
SIMS
MBA 2015-17

2. TOYOTA
• Toyota Motor Corporation is a Japanese automotive
manufacturer headquartered in Toyota, Aichi, Japan.
• In March 2014 the multinational corporation consisted of
338,875 employees worldwideand, as of November 2014, is
the fourteenth-largest company in the world by revenue.
• Toyota was the largest automobile manufacturer in 2012
(by production) ahead of the Volkswagen Group and
General Motors.
• Toyota is the world's first automobile manufacturer to
produce more than 10 million vehicles per year.
• As of July 2014, Toyota was the largest listed company in
Japan by market capitalization and by revenue.

3. Major Revolutions in
Manufacturing
• 1776, Adam Smith “The Wealth of Nations”
• 1910, Henry Ford and Mass Manufacturing.
• 1980, The Toyota Production System.
• Lean Manufacturing.
• Supply Chain Management.

4. The Gestation of TPS
• Eiji Toyoda visit to Henry Ford’s factory in 1950.
• The SMED (Single-digit in Minutes Exchange of Dice)
program at the stamping plant.
• Deming’s quality movement in Japan.
• The Engineers: Taiichi Ohno and Shigeo Shingo
• “Japanese” Manufacturing hits America in 1970

5. Main Features of TPS
• Greater Product Variety
• Fast Response (Flexibility)
• “Stable” Production Schedules
• Supply Chain Integration
• Demand Management

6. Elements of TPS
• The SMED Program.
• Highlight Problems (Jidoka).
• Gradual Elimination of Waste.
• Continuous Improvement (Kaizen), Root-Cause Analysis (5-whys?) and Fool-
proofing (Poka-Yoke).
• Cross-Trained Workers.
• Just-In-Time Production.
• Stable Production Schedules (Heijunka)

7. Traditional “Buffered” Supply
Chain
Assembler
2nd
Tier
1st
Tier
Flow of Production
Flow of Information
Customer
Demand

8. The Just-in-Time Supply Chain:
“Look Ma” No Stocks!
Toyota
2nd
Tier
1st
Tier
Flow of Production
Flow of Information
Customer
Demand

9. Expectations from Suppliers
• Frequent deliveries.
• Hours (not days) lead time.
• Rapid response capability (not from stocks).
• Delivery to assembly line at the right time in the
right sequence without inspection.
• Reliability (quality and timing).

10. Supplier Relationships
• Long-term, steady relationships with a few
suppliers.
• Negotiation based on a long term commitment to
productivity and quality improvement.
• Interested in supplier capabilities.
• Continuous improvement.
• Product/process technology.
• Design for manufacturability.

11. What’s in it for a supplier?
• A Stable Manufacturing Environment.
• Steady production volume.
• Leaner Processes.
• Cost/Flexibility/Quality
• Profits.

12. •THANK YOU