Toyota production system

From CEOpedia | Management online

Toyota Production System (TPS) is a management system which aims for reduction of waste in every process, activity and workplace. Waste reduction enables enterprise reduce quality costs and improve value for the customer. In that way the company increases its profits. It is important to state that, however economical aspects are important, they are only the result. The heart of the system is organizational culture based on kaizen - an idea of continuous improvement.

The elements of the system were developed by Kiichiro Toyoda, owner of Toyoda company (later Toyota) and his employees. One of the most important contributors was Taiichi Ohno, engineer at Toyota. The first of the methods was Jidoka - possibility to (automatically) stop the machine if anything goes wrong. It was developed in the beginning of XX century. The TPS was popularized in 80s and 90s as Total Quality Management and lean manufacturing, which has evolved into wider idea of lean management.

TPS principles

The main principle is that quality has to built in during the manufacturing process. Any repairs of defected products or their parts are waste which should be avoided.

  1. Continuous improvement of every piece of enterprise and product is the ultimate goal. Kaizen is not about reaching the excellence but about continuous searching for it.
  2. Respect for people and teamwork. The TPS was an effect of observation of scientific management and Ford production line solutions, but it was completely altered in part related to people. Respect for people helps to increase their engagement in company development.
  3. Long-term philosophy. The managers should look far ahead, not only observe stock value.
  4. Right the first time. Elimination of waste allows to reduce costs and improve value for customer. The idea of waste elimination was moved to the next level by Toyota.
  5. Adding value for customer, but also for all stakeholders. Improving employees, suppliers and other business partners helps the company itself.

Toyota Production System tools

The 12 pillars of Lean manufacturing are:

Examples of Toyota production system

  • Just-in-Time (JIT) Manufacturing: Just-in-time is a production system that uses smaller batches of items and produces them only when needed. This system reduces the amount of wasted resources such as labor, materials, and space.
  • Kanban: Kanban is a visual system used to manage production processes. It helps to reduce inventory levels, as well as improve communication between team members. The system is based on signals that indicate when items should be produced and when they should be delivered to the customer.
  • Kaizen: Kaizen is a Japanese concept which encourages continuous improvement of processes, products, and services. It is based on the idea that small, incremental changes over time can lead to a more efficient and effective operation.
  • Total Quality Management (TQM): TQM is an approach to product and service design that focuses on improving customer satisfaction. It involves implementing strategies and practices that ensure that products are of high quality while also being cost-effective.
  • 5S: 5S is a workplace organization system that helps to reduce waste and increase efficiency. It consists of five steps: Sort, Set in Order, Shine, Standardize, and Sustain. By following these steps, teams can establish an organized and efficient workplace.

Advantages of Toyota production system

Introduction: The Toyota Production System (TPS) is a management system that focuses on reducing waste in every process, activity, and workplace in order to improve value for the customer and increase profits. Here are some advantages of the TPS:

  • Improved Quality: By utilizing the Toyota Production System, production processes can be streamlined and standardized, allowing for high-quality products to be produced efficiently.
  • Reduced Costs: The TPS helps to reduce costs by focusing on eliminating waste and reducing the time and effort needed to produce a product. This results in faster production times and lower costs.
  • Increased Productivity: The TPS helps to increase productivity by focusing on streamlining processes and eliminating non-value-added activities. This leads to faster production times and higher output.
  • Increased Flexibility: The TPS helps to increase flexibility by allowing for the customization of processes to meet customer needs. This leads to faster production times and lower costs.
  • Enhanced Productivity: The TPS helps to enhance productivity by utilizing the latest technologies and techniques to increase productivity. This leads to faster production times and higher output.
  • Improved Safety: The TPS helps to improve safety by focusing on minimizing workplace hazards and eliminating unsafe practices. This leads to improved safety conditions and better working environment.

Limitations of Toyota production system

The Toyota Production System (TPS) is an effective and efficient management system, but it has its limitations. These include:

  • High Cost: Implementing TPS requires a high initial investment, including the costs of training, proper equipment, and resources.
  • Time Consuming: Implementing TPS can be a lengthy process due to its complex nature. It may take companies many months to retrain staff and introduce new processes.
  • Lack of Flexibility: TPS is a highly structured system that can be difficult to adjust to changing market conditions.
  • Cultural Differences: TPS is heavily rooted in Japanese culture and may not be suitable for organizations in different countries.
  • Lack of Motivation: TPS does not promote individual achievement and can lead to low motivation levels.
  • Inability to Handle Complexity: TPS may not be suitable for organizations dealing with highly complex processes.

Other approaches related to Toyota production system

The following are other approaches related to Toyota Production System:

  • Just-in-time manufacturing: This approach seeks to reduce the amount of inventory held in a company’s warehouses. It eliminates unnecessary storage costs and reduces the need for large amounts of capital tied up in inventory.
  • Total Quality Management (TQM): This approach emphasizes quality control in all aspects of production, from the design phase to the delivery of the product. It seeks to identify and eliminate defects in the production process, ensuring that products meet customer’s expectations.
  • Lean Manufacturing: This approach focuses on eliminating any non-value added activities, such as overproduction, waiting and transport. It seeks to improve efficiency and reduce costs through streamlining the production process.
  • Autonomation: This approach involves the use of automation and robotics to automate key parts of the production process. It seeks to reduce labor costs and create a more efficient production system.

In summary, the Toyota Production System is a management system which seeks to reduce waste and improve value for the customer. Other approaches related to this system include Just-in-time manufacturing, Total Quality Management, Lean Manufacturing and Autonomation. Each approach has its own set of objectives and focuses on different aspects of the production process.


Toyota production system — recommended articles
World class manufacturing — Lean management — Lean manufacturing — Total Quality Management — Kaizen — Kaizen principles — Kaizen costing — Quality management — Muda mura muri

References

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