TOYOTA PRODUCTION SYSTEM (TPS)

BY: Prashant Thakur

CONTENT TABLE:
History Of Manufacturing Management
HISTORY (company)
Goals of TPS
Toyota Principles
Toyota Ways
How to make money ????
Toyota Production System
TPS-House
Main pillar of TPS
Just-In-Time( Takt time,Pull System,Flow production)
Heijunka
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 Waste (INVENTORY)
Jidoka
Genchi Genbustu
Andon Wheel
Standardization
Mistake proofing
Visual management
Kaizen
5s
The Environment Toyotas commitment
Health and Safety
What TPS Means for your Business
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History of Manufacturing Management

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 The Toyota Production System (TPS) arose out of necessity in

response to the circumstance surrounding the company. Many of
the foundational concepts are old and unique to Toyota while
others have their roots in more traditional sources.
The oldest part of the production system is the concept
of Jidoka which was created in 1902 by Toyota founder
Sakichi Toyota.
The most famous element of the TPS is no doubt the Just-inTime pillar of the production system.
Everything was expected to be procured just in time and not
too early or too late. Later elements developed in the 1950s
including takt time,standardized work, kanban, and
supermarkets added to the basis for JIT.
There are also many other tools and techniques that were
developed in Toyota such as 7 Wastes,Standardized Work, 5S,
SMED, Visual Control, Error Proofing, as well as many others.
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GOALS OF TPS
The goal of the Toyota Production System is to provide products at
world class quality levels to meet the expectations of customers,
and to be a model of corporate responsibility within industry and the
surrounding community.
The Toyota Production System historically has had four basic aims
that are consistent with these
values and objectives: The four goals are as follows:
1. Provide world class quality and service to the customer.
2. Develop each employees potential, based on mutual respect,
trust and
cooperation.
3. Reduce cost through the elimination of waste and maximize profit
4. Develop flexible production standards based on market demand.
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TOYOTA-PRINCIPLES
Section I Long-term philosophy

SUCCESS
DEPEND UPON
Principle 1: Base your management decisions on a long-term
THE
philosophy, even at the expense of short-term financial goals.
PRINCIPLEs

Section II The Right processes will produce the right

results
Principle 2: Create continuous process flow to bring problem to the
surface.
Principle 3: Use pull system to avoid overproduction.
Principle 4: Level out the workload (heijunka). (work like a tortoise not
the hare.)
Principle 5: Build the culture of stopping to fix problems to get quality
right the first time.
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TOYOTA-PRINCIPLES
Principle 6: Standardize tasks are the foundation for continuous
improvement and employee empowerment.
Principle 7: Use visual control so no problems are hidden.
Principle 8: Use only reliable, thoroughly tested technology that serves
your people and processes.

Section III Add value to the organization by developing

your people and partners
Principle 9: Grow leaders who thoroughly understand the work, live the
philosophy, and teach it to others.
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TOYOTA-PRINCIPLES
Principle 10: Develop exceptional people and teams who follow your
companys philosophy.
Principle 11: Respect your extended network of partners and
suppliers by challenging them and helping them improve.

Section IV Continuously solving root problem drives

organizational learning
Principle 12: Go and see for yourself to thoroughly understand the
situation (genchi genbutsu).
Principle 13: Make decisions slowly by consensus, thoroughly
considering all options, implement decisions rapidly.
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The TOYOTA

WAY

The five core values of The Toyota Way are shared and practiced by
Toyota
employees at every level in their daily work and relations with others

This is how Toyota is able to deliver

sustainable customer satisfaction.

Continuous
Improvement

Respect
For People
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CHALLENGE
To maintain a long-term
vision and meet all challenges
with the courage and
creativity needed to realize
that vision.

GENCHI
GENBUTSU
Going to the source to find
the facts to make correct
decisions, build consensus
and achieve goals.

KAIZEN
Continuous
improvement.
As no process can ever
be declared perfect,
there is always room for
improvement.
GENCHI

Continuous
Improvement
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TEAMWORK

RESPECT

Toyota stimulates personal

and professional growth,
shares opportunities for
development and maximizes
individual and team
performance.

Toyota respects others,

makes every effort to
understand others, accepts
responsibility and does its
best to build mutual trust.

Respect
For People

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How to make money?

Traditional pricing strategy: Cost + Profit = Selling
price
Example: When the cost goes up, the product selling price is raised to
reflect the higher costs and maintain the desired level of profit.
Some even argues that the profit added should be large enough to
cover potential losses if the product does not sell well.

Toyota accepts neither this formula nor

these arguments!

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Toyota's philosophy
Selling price Cost = Profit

Customers decide the selling price.

Profit is what remains after subtracting the cost
from it.
The main way to increase profit is to reduce cost.
Consequently, cost reduction through waste elimination should have
the highest priority.
Toyota's paradox: Reducing cost (waste), will reduce lead time while
increasing quality and customer satisfaction.
How? We will discuss it soon.
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Toyota Production System

Definition: The production system developed by Toyota Motor
Corporation to provide best quality, lowest cost, and shortest lead time
through the elimination of waste.
The Toyota Production System empowers team members to optimize quality
by constantly improving processes and eliminating unnecessary waste in
natural, human and corporate resources.
It entrusts employees with well-defined responsibilities in each production
step
and encourages every team member to strive for overall improvement.
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TPS
House
The

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Main Pillars Of
TPS

JUST-IN-TIME

JIDOKA

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 JUST-IN-TIME-

smooth, continuous, optimized

workflows.
JIT is a manufacturing philosophy involving an integrated set of
procedures/activities designed to achieve a volume of production using
minimal inventories

OR

A philosophy that seeks to eliminate all types of waste, including carrying

excessive levels of inventory and long lead times.
Takes its name from the idea of replenishing material buffers just when
they are needed and not before or after.
Best applied to a production system, such as automobile assembly, that
would be considered repetitive, such as a flow shop.

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JIT Elements Are:

Takt Time
Flow Production
Pull system

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TAKT TIME(Heartbeat of
production)
Takt is the rate of customer demand essentially, what the market
is requiring be produced.
It is the basis on which we can create flow within our work-cells
and throughout our whole value chain from raw materials to
customer delivery.
Takt time is the available working time for production divided by
the actual average daily demand for our product(s) expressed in
minutes. this gives us the customer demand rate for use
throughout our organization and the supply chain.
The Takt time also forms the basis for enabling the design and
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balancing of our work-cells and production lines in an efficient

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Takt Time vs Cycle Time

Takt time should not be confused with machine cycle time; machine
cycle time is the time taken to produce a part, this could exceed takt
time in some cases which would mean that the process would be
incapable of producing enough products within the available time.
Where cycle times exceed your Takt time there is a need for
machines to either be run on additional shifts to build stock, the
product to be outsourced or a need for additional machines to be
run in parallel.

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FLOW PRODUCTION
Producing and moving one item at a time (or a small and
consistent batch of items) through a series of processing steps as
continuously as possible, with each step making just what is
requested by the next step.

It is also called the one-piece flow, single-piece

flow, and make one, move one.

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Traditional Flow

Production Process (stream of

water)

Suppliers

Customers
Inventory (stagnant ponds)

Flow with JIT

Material
(water in stream)

Suppliers
Customers
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PUSH vs PULL
Push
system : material is pushed into downstream
SYSTEM
workstations regardless of whether resources are available
Pull system: material is pulled to a workstation just as it is
needed

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 Traditional Manufacturing
Way:
One directional flow system:

Work
Station 1

WS 2

WS 3

Material
Information (Production Schedule)
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 Pull (JIT) System

The production of items only as demanded for use or to replace
those taken for use.

Work
Station 1

WS 2

WS 3

Material
Information (via Kanban/Card)
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HEIJUNKA LEVELLING THE FLOW

The term heijunka describes the foundation of the TPS approach.
It is the opposite of mass production series, in which high volumes of
a single product are produced, often significantly unrelated to
demand.
With heijunka a process is designed to switch products easily,
producing what is needed when it is needed, and relying on
production.
Any variations in volumes are accommodated by establishing a
level-average demand rate.
It will reduce the ripple effect of the production.

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Small versus Large Lots

JIT produces same amount
in same time if setup times
are lowered

JIT Small Lots

A

Time
Small lots also increase flexibility to meet
customer demands

Large-Lot Approach
A

Time
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Heijunka = Leveling (Smoothing) Production Schedule using Mixed Model Sequencing =

Uniform Plant Loading.

Determining Production Sequence

Monthly
Demand

Product
A
B

Daily
Requirements
800 20 40
800 20 40
200 20 10

C
Largest integer that divides into all daily requirements evenly is 10
Product
Daily Requirements Divided by 10
A
B

40104
40104
10101

C
Mixed-model sequence
A-B-A-B-A-B-A-B-C

Repeat 10 times per day

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 ELIMINATION OF WASTE
Waste defined as anything that does not add value.

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WHY TOYOTA HATES

INVENTORY ????

Work in process inventory level

(hides problems)

Unreliable Vendors

Scrap
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Capacity Imbalances
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Reducing inventory reveals

problems so they can be solved.

Unreliable Vendors

WIP
Scrap
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Capacity Imbalances

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Reducing inventory reveals

problems so they can be solved.

Unreliable Vendors

Scrap

WIP

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Capacity Imbalances
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KANBAN CARD
A smooth, continuous and optimized workflow, with carefully planned
and measured work-cycle times and on-demand movement of goods,
reduces the cost of
wasted time, materials and capacity.
Team members can concentrate on their tasks without interruption,
which leads to better quality, timely delivery, and peace-of-mind for
Toyotas customers.

In TPS it means having just the right components to build the

product.

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 JIDOKA. building in quality

Jidoka translates as automation

and can be described as
automation with a human touch.
If a defect or error is
identified it is addressed
immediately even if this means
temporarily stopping production.

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 GENCHI GENBUTSU

GOING TO THE SOURCE

It means going to the actual place to solve the

problem.

which means going to the source of the problem and assessing it for
yourself rather than relying on information supplied by others, in
order to gain a complete and accurate understanding.
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ANDON
BOARD/WHEEL
The Andon board is a simple but highly-visible electronic sign
displaying the status of production lines.
It notifies management immediately if a worker has identified a fault,
precisely identifying its location.
Workers take responsibility for production quality, with the power to
stop the production line as required.
The production line will not be restarted until the
reason for the fault has been resolved.

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STANDARDISATION
key element for quality assurance is a focus on
standardization.
Developing and relying on standardized work tasks not only
ensures consistently high levels of quality, but also maintains
production pace and provides a benchmark for implementing
continuous improvement.

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 MISTAKE-PROOFING AND LABELLING

Devices that make it difficult or impossible for a worker to
make
typical errors at his or her workstation are a common sight
on
Toyota production lines.
Goal: Finding defects
before they occur
= Zero Defects

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 VISUAL MANAGEMENT
In shop floor the things are visually display so that every one can
excess them.
Provide safety features for employs like by visually representing the
Heights, how to carry load, how to move pallet truck etc.
Help's visitor to excess plan without the help of others.
It also applies for tools,materials,documents etc.

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QPSDC

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A CULTURE OF CONTINUOUS IMPROVEMENT 5S

SEIRI Sifting SEITON Sorting
SEISO Sweeping and cleaning SEIKETSU Spic-and-span
SHITSUKE Sustain

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The Environment

Toyotas commitment

Toyota has a policy in place to reduce CO2 emissions, use resources

more efficiently, and reduce environmental risk factors.
Its policy is to analyze
the effects of every
stage in its products
lives: development,
manufacturing, operation,
and recycling.
TPS philosophy also
includes the 3Rs
reduce, reuse, recycle

manufacturing sites have all achieved ISO 14001

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certification.

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TPS IS CONCERNED WITH

Health and Safety

Toyota maintains health and safety

for its team members so they can
concentrate on their jobs
delivering the best quality
products and be more efficient.
Manufacturing sites have achieved
OHSAS 18001 certification
the international standard for
occupational health and safety
management.
OHSAS 18001 is a British Standard
for occupational health and safety
management systems
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What TPS Means for your Business

Toyotas customers know what to expect when they buy from
Toyota a business partner with the strength and flexibility to
meet the needs of a changing market
Quality inherent in Toyotas products, thanks to the companys
constant striving for improvement, has direct benefits for their
customers
Costs are kept to a minimum thanks to a good return on
investment based on the productivity and reliability of
Toyota's
Delivery products
is on time, and to the expected standard, allowing
Toyota's customers to plan and maintain their operations
successfully
Environmental concerns are shared by Toyota and its
customers, from manufacturing through to recycling at end-oflife. Choosing Toyota products is a good choice for the
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 Safety is Toyotas constant concern both for its employees

and for those of its customers.

TPS A World-Class System

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