Secret of Success of Toyota.

2.  History
 Taiichi Ohno
 Toyota Production System
 Hard Aspects
 Soft Aspects

3.  Back to 1887, Sakichi Toyoda diversified into
Textile machinery business from Carpentry
 Founded Toyota Group in 1902
 Invented Power Loom
 Invented automatic loom in 1926
 Founded Toyota Automated Loom Works (TALW)

4.  Sakichi‟s son Kiichiro, an engineer from Toyota
University
 Interested in automobiles & engines
 In 1929, visited to US & Europe studied at Ford
 In 1933, establishment of department within
TALW
 1935 first prototype, 1947 Production

5.  Born 1912, Manchuriya, China
 Joined TALW in 1932
 Experimented with production machines
 2nd world war faced challenge of Customer
satisfaction with efficient production
 Founded JIT, Kanban
 Vice president by 1975
 Died in 1990 at Toyota City

10.  Only the necessary products, at the necessary
products, at the necessary time & in the
necessary quantity
 Motto- Speed without continuity is meaningless
 Reverse reasoning like working on customer
demand – Pull system
 Elimination of inventory ultimate aim
 Difficult to anticipate future demand so to
overcome that „Kanban‟ implemented

12.  Means „signboard‟
 Toyota achieve a high level of outsourcing
 A Withdrawal Kanban- the subsequent
process should withdrawn from preceding
 A Production Kanban- the preceding process
must produce
 All process connected

14.  Continuous improvement
 Changes incremental & small rather than system-
wide & revolutionary
 Ohno – “go to gemba everyday, and when you
go, don‟t wear out the soles of your shoes in
vain, you should come back with at least one
idea for Kaizen”
 „Five whys‟ important part of Kaizen
 Poka-Yoke or Error Proofing

16.  John Krafcik in his 1988 article "Triumph of the
Lean Production System"
 derived mostly from the Toyota Production System
 increasing efficiency, decreasing waste, and using
empirical methods to decide what matters
 Lean may be defined as
Eliminate waste & non value added activity
Practice respect for people

17.  to maximize customer value while minimizing
waste
 creating more value for customers with fewer
resources
 The ultimate goal is ZERO WASTE
 less human effort, less space, less capital, and
less time to make products and services at far
less costs and with much fewer defects

19.  Elimination of wasteful movements by
workers
 Consideration for workers safety
 Workers were cross trained & could be
shifted between different production lines –
”Shijinka”
 Visible control – autonomy of workers to
improve process
 Vendors are real King maker
 Vendors are suppliers & Workers are
resources

20.  Process owned by workers so can stop anytime to
improve it
 Faith in ability of thinking
 automation with a human touch
 Quality control process having four principle
1) Detect the abnormality.
2) Stop
3) Fix or correct the immediate condition.
4) Investigate the root cause and install a
countermeasure.

22.  Five days for car manufacturing from raw
material to final car
 Kaizen & Jidoka ensured high level of quality
 “Toyota‟s success is led by unusual quality
delivered at very competitive prices”
 Strong relationship with the suppliers
 Biggest challenge – time for implementation
 To promote TPS free services & consultancy
started by Toyota in 1990.

23.  Toyota Corolla
 Toyota Camry
 Toyota Yaris/Vitz/Vios
 Toyota HiLux
 Toyota Prius

28. Thank
You