This document summarizes Toyota's Production System (TPS) philosophy and principles. TPS was developed based on Kiichiro Toyoda's philosophy to compete with large automakers through small volume production with low capital costs. Key principles of TPS include putting customers first, respecting people, continuous improvement (Kaizen), eliminating waste, building quality in from the start, and pacing production to match sales. TPS aims for the highest quality, lowest cost and shortest lead times through stability, standardized work, visual management, and respect for people. Challenges to implementing TPS include changing mindsets, leadership support, and business environment factors.

1. Toyota Supplier Support
Center

2. TOYOTA PRODUCTION SYSTEMS
• Integrated System
– Technical
– Managerial
– Philosophy
– Human Development
Forms the ORGANIZATION CULTURE

3. Kiichiro Toyoda’s Philosophy
• Used this philosophy to compete with Ford and
other automobile manufacturers
• Compete with large volume
manufacturers in price, quality and
availability to satisfy customer needs
while producing in small quantities with
limited capital expenditure

4. Toyota Philosophy
• Customer First
• People are the most valuable resources
• Kaizen
• Shop Floor Focus

5. Toyota Philosophy
 Eliminate Waste / Muda of overproduction
Pace of production = Pace of sales
 Efficiency is gauged by the ability of a plant to
meet exact customer requirements with the
least amount of resources

6. Toyota Philosophy
• KAIZEN is about people:
By knowing they are adding value for
customer
By having a safe work environment
By utilizing their creativity
By developing themselves

7. Toyota GOAL
• HIGHEST QUALITY
• LOWEST COST
• SHORTEST LEAD TIME

8. Toyota Production System (TPS)
• Influenced by:
– Business Needs
– Company Philosophy

9. TPS
• Foundation is STABILITY
• STABILITY is dependant on 4 M’s
• Man
• Machine
• Material
• Method

10. TPS
• Problems impacting stable production:
•Equipment
•Defects
•Rework
•Shortage
•Absenteeism
•Morale

11. TPS
• Tradition Approach to solve problems
• Maintain large inventories
• Add more shifts or work overtime
• Purchase more equipment

12. TPS
• TPS Approach to solve problems
• Expose and attack problems
• Seek out Root cause of problems
• Fix problems 1 by 1
• Do not pass defective part on - inspect at the
process and fix
• Quality feedback immediate
• Defects are visible at the source

13. TPS
• Build Quality:
• Make abnormalities easy to notice
• Call for help
• Take quick action to fix so
– Prevent building defect
– Do not pass defect
• Separate Man’s work and Machine’s work
• Identify man’s work separately from Machine’s
work

14. TPS
• Plan production based on TAKT TIME
TAKT TIME =
Total Available Production Time per day
Total Production Requirements per day

15. TPS
• ALWAYS :
Pace of production = Pace of sales

16. TPS
• Always have Standardized Work:
• Most efficient work flow maintaining
– Safety
– Quality
– Quantity
– Cost
• Main consideration on human movement
• Should change when
– Production Requirements change
– Improved operation method is identified

17. TPS
• All relevant work site information is available at
each jobsite through three worksheets
1. Production capacity Sheet
2. Standardized work combination table
– Indicates flow of human work within a process
– Specifies exact time requirement for each work step
– Job design based in takt time
– Useful for problem identification in relationship between
man and machine

18. TPS
3. Standardized work chart
– Illustrates the work sequence and process layout
– Indicates takt time and standard in process stock
– Useful as a method of work site management
Note: Examples of the three documents are attached with the
presentation

19. Problems while implementing TPS
• Human Mindset
– Same way for 30 years
– People fear losing jobs
– Teams are not effective
– How to motivate “kaizen”
effort
– Why must we change
– Manpower has no discipline
– Why must I do
standardized work if I can
do faster my way
• Misconceptions
– TPS only makes me work
harder
– Long distances between
supplier and manufacturer
– No Money
– Just another program
– Equipment not capable

20. Problems while implementing TPS
• Leadership/management
– What to do with people
“kaizened” out
– Large lot sizes, lower costs
– Run machine for 24 hours
– No support from top mgmt
– Top mgmt often changes
• Business Environment
– Unlevel customer orders
– Many customers, not all
advocate TPS
– Many different job
classifications
– Piece rate system
– Many products, one day
turnaround
– Union won’t go along with
TPS

21. KAIZEN
• Points of motion Kaizen
• Hard Work
– Bending
– Reaching
• Waiting
– Waiting time in front of machine
• Walking
– Eliminate or reduce

22. KAIZEN
• Operator work while walking
• Hand movements
– Wide hand movements
– Muda hand movements
– Hands waiting?
• Material Flow
– Work being carried on a straight and level path
– Part direction change
• Eye Movements
– Operator Checking?