The document outlines the Toyota Production System, which aims to eliminate waste and improve efficiency. It discusses Toyota's vision, mission and seven principles. The key concepts of just-in-time production, kanban, jidoka, lean manufacturing and continuous improvement are explained. The goals are to produce only what is needed when it is needed to improve capital efficiency and customer value.

1. TOYOTA PRODUCTION
SYSTEM
www.a2zmba.com

2. Vision
 Contribute to Indian industry and economy
through technology transfer, human resource
development and vehicles that meet global
standards at competitive price.
 Contribute to the well-being and stability of team
members.
 Contribute to the overall growth for our business
associates and the automobile industry.
www.a2zmba.com

3. Mission
 Our mission is to design, manufacture and market
automobiles in India and overseas while
maintaining the high quality that meets global
Toyota quality standards, to offer superior value and
excellent after-sales service. We are dedicated to
providing the highest possible level of value to
customers, team members, communities and
investors in India.
www.a2zmba.com

4. 7 Principles of Toyota
Production System
 Reduced setup time
 Small-lot production
 Employee Involvement and Empowerment
 Quality at the source
 Equipment maintenance
 Pull Production
 Supplier involvement
www.a2zmba.com

5. TOYOTA PRODUCTION SYSTEM
www.a2zmba.com

6. Production System
www.a2zmba.com

7. JUST-IN-TIME
Produced according to what needed, when needed and
how much needed.
Strategy to improve return on investment by reducing
inventory and associated cost.
The process is driven by Kanban concept.
www.a2zmba.com

8. www.a2zmba.com

9. KANBAN CONCEPT
Meaning- Sign, Index Card
It is the most important Japanese concept opted by
Toyota.
Kanban systems combined with unique scheduling
tools, dramatically reduces inventory levels.
Enhances supplier/customer relationships and
improves the accuracy of manufacturing schedules.
A signal is sent to produce and deliver a new shipment
when material is consumed.
These signals are tracked through the refill cycle and
bring extraordinary visibility to suppliers and buyers.
www.a2zmba.com

10. www.a2zmba.com

11. Just-in-time --- Benefits
Set up times are significantly reduced in the
warehouse.
The flows of goods from warehouse to shelves are
improved.
Employees who possess multiple skills are utilized
more efficiently.
Better consistency of scheduling and consistency of
employee work hours.
Increased emphasis on supplier relationships
www.a2zmba.com

12. JIDOKA
Jidoka (meaning ‘autonomation’)-a term used in Lean
manufacturing meaning "automation with a human
touch."
It is a quality control process used in the Toyota
Production System which applies the following four
principles:
 Detect the abnormality.
 Stop.
 Fix or correct the immediate condition.
 Investigate the root cause and install a countermeasure.
www.a2zmba.com

13. www.a2zmba.com

14. Jidoka
www.a2zmba.com

15. Lean Manufacturing
Most important concept of Toyota Production System
A management philosophy focusing on reduction of
the seven wastes to improve overall customer value.
www.a2zmba.com

16. www.a2zmba.com

17. Key Principles
 Pull processing products are pulled from the consumer end
(demand), not pushed from the production end (Supply)
 Perfect first-time quality  quest for zero defects, revealing &
solving problems at the source
 Waste minimization  eliminating all activities that do not add
value & safety nets, maximize use of scarce resources (capital,
people and land)
 Continuous improvement  reducing costs, improving quality,
increasing productivity and information sharing
 Flexibility  producing different mixes or greater diversity of
products quickly, without sacrificing efficiency at lower volumes
of production
 Building and maintaining a long term relationship with
suppliers through collaborative risk sharing, cost sharing and
information sharing arrangements.
www.a2zmba.com

18. seven wastes to improve overall customer
value [ MUDA ]
Transportation
Inventory
Motion
Waiting time
Over-production
Processing Itself
Defective Product (Scrap in manufactured
products or any type of business.)
www.a2zmba.com

19. Other Toyota Production
Concepts
 Heijunka (Production Smoothing)
 Kaizen (Continuous Improvement)
 Poke-Yoke (to avoid inadvertent errors)
 Andon (Signboard)
 Mura,Muri
www.a2zmba.com

20. Heijunka
(Production Smoothing)
Heijunka is Japanese term that refers to a system of
production smoothing designed to achieve a more even
and consistent flow of work.
Heijunka as a concept is closely related to lean
production and just in time manufacturing.
A related visual scheduling board known as a heijunka
box is often used in achieving heijunka style
efficiencies.
The use of heijunka as well as broader lean production
techniques helped Toyota massively reduce vehicle
production times as well as inventory levels during the
1980s.
www.a2zmba.com

21. Kaizen
Meaning- Continuous Improvement
Kaizen refers to a workplace 'quality' strategy and related to
various quality-control systems.
It aims to eliminate waste (defined as "activities that add
cost but do not add value").
Kaizen is a daily activity whose purpose goes beyond
improvement. It is also a process that, when done correctly,
humanizes the workplace, eliminates overly hard work
(both mental and physical.
It teaches people how to perform experiments using the
scientific method and how to learn to spot and eliminate
waste in business processes.
www.a2zmba.com

22. Poke-Yoke
 Poka-yoke (means "fail-safing" or "mistake-proofing"
—
 avoiding (yokeru) inadvertent errors (poka)) is a
behavior-shaping constraint, or a method of
preventing errors by putting limits on how an
operation can be performed in order to force the
correct completion of the operation.
www.a2zmba.com

23. Andon (Signboard) Andon is a manufacturing term referring to a signboard incorporating
signal lights, audio alarms, and text or other displays installed at a
workstation to notify management and other workers of a quality or
process problem.
 The alert can be activated manually by a worker, or may be activated
automatically by the production equipment itself. Typically, it will
incorporate both a visual indicator and an audible alarm.
 An Andon system is one of the principle elements of the Jidoka
quality-control method pioneered by Toyota and now part of the Lean
methodology.
 It gives the worker the ability to stop production when a defect is
found, and immediately call for assistance.
 Work is stopped until a solution has been found out. The alerts may be
logged to a database so that they can be studied as part of a
continuous-improvement program.
 The system will typically indicate where the alert was generated, and
may also provide a description of the trouble.
 Modern Andon systems can include text, graphics, or audio elements.
 Audio alerts may be done with coded tones, music with different tunes
corresponding to the various alerts, or pre-recorded verbal messages.
www.a2zmba.com

24. Mura , Muri
Mura
 Mura is a Japanese term for unevenness.
 It is also a key concept in the Toyota Production System and is one of
the three types of waste (Muda, Mura, Muri) it identifies. Waste
reduction is an effective way to increase profitability.
Muri
 Muri is a Japanese term for overburden or unreasonableness.
 It is also a key concept in the Toyota Production System and is one of
the three types of waste (Muda, Mura, Muri) it identifies. Waste
reduction is an effective way to increase profitability.
 Muri can be avoided through standardised work.
www.a2zmba.com

25. Conclusion
A Production System that is steeped in the philosophy
of the complete elimination of all wastes and that
penetrates all aspects of production with this
philosophy in pursuit of the most efficient production
method.
www.a2zmba.com