Toyota Production System

AMAN ULLAH TUSHER

23230333135
 Overview
Company name
Toyota Motor Corporation
President, Member of the Board of Directors (Representative Director)
Koji Sato
Date founded
August 28, 1937
Capital (as of March 31, 2023)
635 billion yen
Main business activities
Motor vehicle production and sales
Number of employees (as of March 31, 2023)
70,056 (Consolidated 375,235)
2
 Toyota Production
System

Vision & Philosophy

A production system based
on the philosophy of
achieving the complete
elimination of all waste in
pursuit of the most
efficient methods.

3
 Lean Manufacturing System

Toyota Motor Corporation's vehicle production system is a

way of making things that is sometimes referred to as a “Lean
manufacturing system," or a "Just-in-Time (JIT) system," and
has come to be well known and studied worldwide.

4
The Toyota Production System (TPS)
The Toyota Production System (TPS) was established based on two concept

Jidoka Just-in-Time
“Jidoka" which can be translated as "Just-in-Time" concept, in which
"automation with a human touch”, each process produces only what is
as when a problem occurs, the needed for the next process in a
equipment stops immediately, continuous flow.
preventing defective products from
being produced

Based on the basic philosophies of jidoka and Just-in-Time, TPS can efficiently and quickly
produce vehicles of sound quality, one at a time, that fully satisfy customer requirements.
5
 Just-in-time
JIT is an all-encompassing manufacturing and service management
philosophy that is founded on the concept of elimination of waste.

✓ JIT means making only "what is needed, when it is needed, and in the
amount needed."
✓ A useful common denominator running through this and other JIT
Big Image Slide
definitions is a broad philosophy of pursuing zero inventories, zero
transactions, and zero disturbances.
✓ The term just-in-time stems from a primary form of waste elimination:
reducing inventories (in manufacturing) and waiting times (in services).
7
TPS has evolved through
many years of trial and error
to improve efficiency based
on the Just-in-Time concept
developed by Kiichiro
Toyoda, the founder (and
second president) of Toyota
Motor Corporation.

9
History of
TPS History of Toyota Production System - TPS
Introduction
1890
 Sakichi Toyoda invented the wooden Toyoda handloom that improves efficiency in
weaving

1896
 Sakichi invents the Toyoda Power Loom

1902 - 1924
 Sakichi slowly develops a variety of patents on devices on looms including the
auto stop “Jidoka” feature for thread breakage and a non-stop changeover
feature on the shuttle part of the loom. In total it includes 24 different
patents. After 1921 the majority of the patents and improvements are
actually created by Kiichiro Toyoda the son of Sakichi.

10
History of
TPS History of Toyota Production System - TPS
Introduction
1929
 Kiichiro Toyoda again visits the U.S. and tours American textile and loom
manufacturing companies such as Draper & Compton, and Knowles among
others. He further observes the emerging U.S. auto industry.
 Sale of the patent rights to the G-Type Auto Loom to Platt Brothers in England
is initially negotiated for the sum of £100,000 pounds. This amount provides
some seed money for the experiments leading to engine development and the
automotive department within Toyoda Auto Loom

1930
 Kiichiro Toyoda returns to Japan from Britain and begins initial study
and development of gasoline internal combustion engines.
 Production Toyoda Model AA Sedan, AB phaeton, and GA truck
announced
History of History of Toyota Production System – Lean Manufacturing
TPS
Introduction
November 1991
 Professors Jones and Womack of Massachusetts Institute of Technology (MIT)
complete a 5 years study of the transportation industry and the effort
documents the benefits of TPS calling it “Lean Production”. The book is entitled
The Machine that Changed the World.

James P. Womack Daniel T. Jones

History of
TPS History of Toyota Production System - TPS
Introduction
1931 - 1932
 Kiichiro Toyoda initiates the collection of precision machine tools from Germany
and the U.S. that will be necessary to support automotive production.
 Initial development work and a formal prototype engine is produced in 1933.
The engine is based off a Chevrolet design.

1933
 An automobile department formally established within the Toyoda Auto
Loom Company.
History of
TPS History of Toyota Production System - TPS
Introduction
1936
 The first prototype vehicles are completed by Toyoda in 1936.

1937
 Toyota Motor Corporation is officially established. Kiichiro Toyoda is President.
 A new factory is built in Koromo, Japan (present day Toyota City) about 30 minutes
outside city of Nagoya.
 A 10 centimeter thick document authored by Kiichiro is used to layout the factory,
the process flow, and provides a basis for training the workers in the new flow
style of production. Eiji later calls this document in writing “The Roots of TPS”.
 Kiichiro decrees that internal production and procurement should be done “Just-in-
Time” to avoid wasting materials.
History of History of Toyota Production System - TPS
TPS
Introduction
1938
 "Just-in-time" system launched on a full-scale basis.

1940 - 49
 Establishment of several different Toyota Groups: Aichi Steel Works,
Toyoda Physical and Chemical Research Institute, Toyota Machine
Works Co., Aisin Seiki Co., Toyota Auto Body Co., Nagoya Rubber Co.,
Nippondenso Co. …
History of
TPS History of Toyota Production System - TPS
Introduction
1939 - 1940
 Sections of Toyota plants are required to produce parts for the government to
aid in WWII efforts.
 Most improvement efforts in the company stall.

1945
 Toyoda Machine Works is established to specialize in the manufacture of machine
tools, jigs, fixtures and other devices for Toyota Motor Company.
 Eiji Toyoda has Taiichi Ohno join him in the complex machine shops of the
company (engine, transmission, and chassis) to begin making improvements again
now that the war has ended.
History of
TPS History of Toyota Production System - TPS
Introduction
1947 - 1949
 Taiichi Ohno promoted to machine shop manager.
 Machining shop areas designated as a model shop in the company. Internally it is
referred to as the “Ohno Line”. Rearrangement of machines from process flow
to product flow is piloted.
 End of one man one machine. Start of multi process handling begins with L, U, and
I shaped lines in machining. Inspiration was mainly the fact that one person could
operate 24-36 auto looms in other facilities.
 Detail studies of individual processes and cycle times are conducted by Taiichi Ohno
and staff. Time study and motion analysis are conducted as well.
 Reduction of work in process inventory begins in earnest.
 In-process inspection by workers is adopted as a policy.
 Line stop authority to workers is granted as well.
History of
TPS History of Toyota Production System - TPS
Introduction
1950
 After WWII Japan experiencing a crisis in product quality. Japanese goods
were thought to be cheap, easily broken and in general extremely poor
quality.
 Economic depression and decline in sales triggers a financial crisis in the company
and labor disputes are frequent with work stoppages. The crisis eventually results
in a consortium of banks loaning Toyota money but requiring a restructuring plan
and reduction in work force. As a result 2146 people or about one third of the
company lose their jobs. Kiichiro Toyoda steps down as President to accept
responsibility
 Financial crisis / Labor dispute - Voluntary retirements. Shoichiro Toyoda resigns as
a President of Toyota. Eiji Toyoda becomes the new President.
 Toyota being on the edge of bankruptcy forces the company to re-visit how
they conduct business
 Start of Korean war saves Toyota. Taiichi Ohno is send to Detroit
History of
TPS History of Toyota Production System - TPS
Introduction
1951
 Eiji Toyoda tours the U.S. for 6 weeks to visit factories and observe production.
 For three weeks he is at Ford Motor Company as the guest of Henry Ford II.
 Eiji notes that Toyoda is behind Ford in many respects and can not compete on
a mass production basis. However he does believe they can emphasize their
own unique attributes and style of production and improve upon what he
observed.
 Taiichi Ohno studies at Ford principles of mass production and Assembly Line.
 Concept of Takt Time is created.
 Taiichi Ohno learns about Standardized Work. Initial Standardized Work Charts
are
developed.
 Elimination of waste concept is created.
History of
TPS History of Toyota Production System - TPS
Introduction
1951 - 1955
 Further refinements to the basic system emerging in the machine shops by Ohno
and his direct reports (K. Suzumura, I. Mamiya, T. Watanabe, M. Morita, Y. Arima) in
the engine, transmission, and chassis areas.
 Start of TWI management training programs (JI, JR, JM) begins to develop
supervisors and managers in production.
 Creative Suggestion system initiated based upon a model observed at Ford.
 Elimination of waste concept is created.
 Initial Standardized Work charts are developed and utilized for analysis.
 Further reduction of batch sizes and change over time on tooling is conducted.
 Aspects of visual control / 4S introduced.
History of History of Toyota Production System - TPS
TPS
Introduction
1955
 Initial Kanban implementation and replenishment style production is trialed
in areas.
 Production leveling and mixed assembly is conducted in engine machining and
assembly.
 TPS begins to expand slowly outward from the engine, transmission, and
chassis shops to other areas.

1956
 Corporate slogan "Good Thinking, Good Products" established
 Toyota Motor Sales, U.S.A., Inc. established
 Toyopet dealerships started operations –first export of Japanese car to the
USA
 Emergence of more “Efficient Production System” (Machining plant with
flow,
visual control, standardized work, basic pull)
History of
TPS History of Toyota Production System - TPS
Introduction
1957
 Basic Andon system initiated with lights on engine assembly line.

1959
 Start of Motomachi vehicle plant the second major facility for Toyota

1960
 Installation of Quick Die Change machines from Danly Corporation with moving
bolster mechanism and other features greatly reduces average change over time in
stamping. These machines introduce many key rapid changeover features to the
company.
History of
TPS History of Toyota Production System - TPS
Introduction
1961
 Start of Production Engineering Department #1 with focus on the following more
technical aspects of TPS and manufacturing.
 In house design of machine tool jigs and fixtures
 Start of corporate wide TQC program driven by Eiji Toyoda.
 Pull system and Kanban complete internally company wide in all of Honsha Plant,
and the new Motomachi Plant.
 Average company wide changeover time in stamping is down to15 minutes.
Single minute of die exchange machines exist.
 Standardization of tooling, cutting conditions, etc.
 Improve production processes to work with TPS.
(work closely with Toyoda Machine Works)
History of History of Toyota Production System - TPS
TPS
Introduction
1962
 Start of corporate wide TQC program by Eiji Toyoda.
 Pull system and Kanban complete internally company wide in all of Honsha
Plant, and the new Motomachi Plant.
 Average company wide changeover time in stamping is down to 15 minutes.
 Single minute of die exchange machines exist - SMED

1965
 Toyota wins Demming Prize for Quality
 Dr. Demming’s expertise in quality control techniques led to his receiving an
invitation from the society of Japanese Union of Scientists and Engineers
(JUSE). JUSE members had studied Shewhart's techniques, and as part of
Japan's reconstruction efforts, they sought an expert to teach statistical control
(SPC).
History of
TPS History of Toyota Production System - TPS
Introduction
1971
 Average changeover time in stamping is down to 3 minutes company wide.

1973
 The “Oil Shock” from OPEC countries placing an embargo on the West
plunges Japan economy into crisis. Only Toyota makes a profit among all the
major companies in Japan.
 Discovery of Japanese cars in North America – small, cheap cars and good on
gas
 Toyota’s Education Department creates the first 200 page TPS manual in
Japanese.
The foreword is drafted by Taiichi Ohno. Authors include F. Cho, K. Sugimori, S.
Uchikawa, etc. Edited by Isao Kato. This is really the first time that Toyota’s
system is called the “Toyota Production System” in writing.
History of
TPS History of Toyota Production System - TPS
Introduction
1975
 Taiichi Ohno is appointed Executive Vice President of Manufacturing

1976
 Regular supplier improvement workshops (called Jissyuken) begin with 17 suppliers
lead by the Operation Management Consulting Division (Fujio Cho, Kikuo
Suzumura, etc.)

1977
 First English TPS presentation drafted by Y. Sugimori, K. Kusunoki, F. Cho, S.
Uchikawa, for a management conference on production research in Tokyo, and
later publication in the Journal of Operations Research.
History of
TPS History of Toyota Production System - TPS
Introduction
1978
 Taiichi Ohno retires from Toyota Motor Corporation. He is appointed as Chairman
and member of the Board of Director for both Toyoda Gosei and Toyoda
Boshoku.
 Writes his first book on TPS as the request of many people in Japanese

1970`s
 Initial wave of Americans visit Japan and tour different companies including
Toyota.
 TPS is slowly identified in various Western books as various topics including but
not limited to QC circles, Kanban, JIT, 5S, Visual Control, TPM, Standardized Work,
or Kaizen.
History of History of Toyota Production System - TPS
TPS
Introduction
1981
 Shigeo Shingo writes “A Study of the Toyota Production System from an Industrial
Engineering Viewpoint”. In 1983 it is translated into English.

1984
 Toyota GM joint venture Nummi is established in Fremont California.

1988
 First wholly owned U.S. facility Toyota Motor Manufacturing in Georgetown,
Kentucky (TMMK and first Canadian Toyota Manufacturing facility in Cambridge
(TMMC), Ontario are established.
History of
TPS History of Toyota Production System - TPS
Introduction
1989
 Toyota ventures into a Luxury car market. A Lexus brand is introduced to North
America.

1990
 Toyota Supplier Support Center opens as well to aid suppliers in the conversion to
TPS principles. (Note: TSSC is initially an outpost of Toyota’s OMCD department in
Japan. Now it is a separate for profit entity operated by Hajime Ohba. Through
this groups efforts much material and instruction are supplied to a large variety
of companies in the U.S.
History of History of Toyota Production System – Lean Manufacturing
TPS
Introduction
November 1991
 Professors Jones and Womack of Massachusetts Institute of Technology (MIT)
complete a 5 years study of the transportation industry and the effort
documents the benefits of TPS calling it “Lean Production”. The book is entitled
The Machine that Changed the World.

James P. Womack Daniel T. Jones

History of History of Toyota Production System - TPS
TPS 2016
Introduction  Toyota is the largest vehicle manufacturer
by volume, ahead of Volkswagen and
GM
 338,875 employees world wide
 66 factories world wide
 In July of 2013 Toyota reported the
production of its 200-millionth vehicle.
 Toyota is the world's first
automobile manufacturer to produce
more than 10 million vehicles per
year.
History of History of Toyota Production System - TPS
TPS
Introduction

Toyota did not “Invent” TPS

Toyota developed TPS by

benchmarking their
management system against
best practices
in the World.

This is what history tells us …

 TPS Benefits
Elimination of work wastes
Proper utilization of physical spaces
Zero Inventories
Improved customer satisfaction
Improved profits
Improved profits
33
Thank You!
AMAN ULLAH TUSHER