Toyota Production System

Toyota Manufacturing

TPS Meaning

Toyota Production System (TPS)

The TPS was created in the late 50’s to get the Japanese manufacturing economy moving after WWII.  With assistance from the U.S., they focused on the auto industry to get the factories back to work.  After an extensive study of American and European manufacturing techniques, they decided to focus on Flow production as opposed to the batch/scheduling production practiced in the West.  The first reason is because of the productivity and quality benefits of Flow Manufacturing in addition to the potential inventory savings associated to Pull material systems (Kanban).  One of the original creators of TPS, Taiichi Ohno, a Vice President for Toyota Motor Corporation, is credited as for the pull (Flow) production, and pull (Kanban) material system.

01

Flow Design

TPS is built upon a Flow and Pull Production Foundation.  It is a fixed volume implementation but Toyota has an advantage of selling everything they can produce.

02

Pull Material Supply chain

Their Flow and Kanban process can pull Just-In-Time (JIT) material.  They preferred pull as opposed to the American and European batch scheduling with massive inventories and warehouses.

03

process Perfection

Kaizen-Continuous Process Perfection is the easy part after the Flow process and pull systems are in place.

Toyota Manufacturing

TPS Meaning

In discussion with Ohno, he stated, “They studied American batch manufacturing systems.  However, he preferred the methodology of a single piece flow as opposed to batch (scheduling) production.  He also preferred the replenishment method of the US supermarkets (Pull) to resupply material.  They worked on their Takt line design to achieve their Flow goal of a single piece flow.  Once that was achieved, he designed the Kanban pull system for materials and suppliers.  Toyota Management is continuously trained on Flow and Pull techniques.  They established a Flow production foundation, and THEN…they continue to perfect it with their Kaizen (never ending improvement) techniques.

“The more inventory a company has, the less likely they will have what they need.”

Taiichi Ohno

THE 7 WASTES

MOTION

Kitting

INVENTORY

Batch/Scheduling

WAITING

Lead Time

DEFECTS

External Inspection

OVERPRODUCTION

Forecast Driven

TRANSPORTATION

Routing & Move

OVERPROCESSING

Finished Goods

Taiichi Ohno

7 Wastes Model: Core in Many Academic Observation Approaches

  • Delay
  • Producing more than you need
  • Over processing or undertaking non-value added activity
  • Transportation
  • Unnecessary movement or motion
  • Inventory
  • Reduction of defects

10 Precepts to Think and Act to Win

  • You are a cost. First reduce waste.
  • First say, "I can do it." And try before everything.
  • The workplace is a teacher. You can find answers only in the workplace.
  • Do anything immediately. Starting something right now is the only way to win.
  • Once you start something, persevere with it. Do not give up until you finish it.
  • Explain difficult things in an easy-to-understand manner. Repeat things that are easy to understand.
  • Waste is hidden. Do not hide it. Make problems visible.
  • Valueless motions are equal to shortening one's life.
  • Re-improve what was improved for further improvement.
  • Wisdom is given equally to everybody. The point is whether one can exercise it.

With Flow Manufacturing we design the process one time  and we can change volume and mix every day.  This is achieved without impacting  operational work content or the materials pull process.  With ERP scheduling, you are changing work quantity every time you schedule.

This explains part of the confusion as to why the Flow Manufacturing process perfection/Kaizen is so successful.  On the other hand, the similar continuous improvement or Black Belt/Waste elimination rarely has a positive impact to the bottom line.

Ohno was quick to stress the importance of continuous improvement, but hesitant to openly discuss Toyota’s intellectual design property and focus toward Flow.  They gave away Kaizan and the simple aspects of improvement, but did not advertise the “How To” foundation to TPS was Flow and Pull.  He was a wealth of knowledge, and extremely professional toward us.  He believed the management of Western countries could never evolve from batch/scheduling to a singe-piece-flow.  He wrote about it in the introduction to TPS book.

John R. Costanza

President,John Costanza Institute of technology

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