TOYOTA PRODUCTION

SYSTEM

PRESENTED BY
DEEPAK KHANDELWAL
(5)
 INTRODUCTION
 Toyota Motor Corporation commonly known simply as
Toyota.
 It Is a multinational corporation headquartered in
Japan.
 It is the world’s largest automobile makers by sales.
 Toyota Employed approximately 3,20,000 people
worldwide.
 Toyota is headquartered in Toyota city, Aichi and in
Tokyo.
 The company was founded by Kiichiro Toyoda in
1937.
 HISTORY
 Sakichi Toyoda invented a power loom in 1902 and
founded the parent organization of toyota.
 In 1926 Sakichi formed the Toyoda Automatic Loom
Works(TALW) to manufacture automatic looms.
 Sakichi’s son kiichiro, an engineer from tokyo
university, he had established a new company was
named Toyota in 1936.
 Toyota’s first export to the US was the Toyota Crown.
TOYOTA PRODUCTION SYSTEM
 TPS is a concept developed by Sakichi, Kiichiro and
Eiji and ohno was streamlined this concept and
developed into a formal system .
 Toyota brought TPS to the US in the 1980.
 The main motive of TPS is tried to overcome the
deficiency or limitations of production.
 TPS tried to increase the efficiency of production by
eliminating waste and lowering costs.
 CONTD…
 TPS consisted of two aspects-
1. Hard
2. Soft
 The ‘Hard’ aspect focused on manufacturing system
like JIT(Just-In-Time) and Kanban.
 The ‘Soft’ aspect was related to “respect for
humans” which include suppliers and workers.
 CONTD…

 The TPS stressed flexibility of process and cross

utility of resources and a constant improvements in
work.

 Simply, TPS involved a Flexible Batch Process with

multipurpose capital equipment and cross-trained
workers supplied by JIT inventory and also focused
on empowerment of workers and developing strong
relation with supplier.
 JIT
 JIT means “Just-In-Time” was the foundation of the
TPS.
 Its aim was to eliminate waste of all kinds by
producing or supplying materials only when they
were needed and not earlier.
 The principle behind JIT was to produce “ only the
necessary products at the necessary time and in the
necessary quantity” to keep stock at a minimum.
 The main motive of JIT was to make the production
process by avoiding or eliminating unnatural peaks
and gullies in production.
 CONTD….
 JIT was based on reverse reasoning and the working
of production line started at the point of customer
demand.
 JIT was based on the ‘Pull’ system of manufacturing
as against the popularly used ‘Push’ system.
 It is difficult to achieve JIT where thousand of
components required to manufacture one car and to
overcome this difficulty Toyota developed ‘Kanban’
system.
 KANBAN
 Kanban was the cornerstone of JIT.
 The Kanban system was a tool to effectively control
production quantity.
 This helped Toyota to achieve a high level of
outsourcing.
 In the Kanban system workers of a process needing
components wrote the details about the kind of units
needed and the quantity in which they were needed
on a card called the Kanban.
 CONTD….
 Kanban system comprised of two types-
1. Withdrawal Kanban- This Kanban detailed the kind
and quantity of product that the subsequent process
should withdraw from the preceding process.

2. Production Kanban- Production ordering kanban

specified the kind and quantity of the product that the
preceding process must produced.
 KAIZEN

 Kaizen was another important element of TPS which

means continuous improvement.
 Kaizen required all employees to participate in
eliminating all activities (productivity and safety) that
were classified as waste from the production
system.
 The focus of kaizen was not just to identify a
problem and develop a solution, but to understand
the problem and all its alternatives thoroughly.
 CONTD…

 An important element in kaizen was Poka-yoke or

error proofing.
 Poka-yoke involved the creation of processes that
moved smoothly from step to step without giving
room for error to creep in.
 Kaizen was the major contributor to the Toyota’s
global success.
HUMAN ELEMENT AND JIDOKA

 The main consideration in TPS were-

1. Elimination of wasteful movement by workers
2. Consideration for workers safety
3. Self display of workers
 The TPS emphasized on flexibility and team work.
 Any employee at any level of the hierarchy had a
right to make improvement In processes this was
called visible controlled.
 CONTD..
 The philosophy of Jidoka was empowered
workers to stop the equipment or
operations In a line whenever an
abnormal or defective condition arose in
the line.
 This was the manifestation of Toyota's
commitment towards empowerment.
 The Jidoka system helped direct attention
to the problems as it occurred, thus
preventing further complications.
BENEFITS AND CHALLENGES
 Concepts like Kaizen and Jidoka ensured that high
level of quality were maintained.
 Toyota strong relationship with its suppliers also
ensured that company was able to implement JIT
effectively which allowed it to achieve high degree of
flexibility and considerable lower inventory costs.
 The biggest challenge for TPS was the time it took
for its implementations.
 LEAN MANUFACTURING
 This concept was based on the
philosophy of Toyota's production
system which manufactured better
quality products with a lower defect
rate and greater speed.

 Lean manufacturing also requires

minimum levels of inventory and can
produced a greater variety of products
with the same resources.
 CONTD..

 It combine team of multi-skilled workers at all levels

of the organization and increasingly automated
machines to produced volume of products of various
variety.

 The main principle of lean manufacturing were no

waiting time, minimal inventory, pull based
manufacturing, line balancing, smaller batch size
and lower process time.
 OHNO’S SEVEN WASTES

1. Defects
2. Overproduction
3. Waiting
4. Transporting
5. Movement
6. Inappropriate processing
7. Inventory
 PULL SYSTEM
Parts Raw
Dem Asse
suppl mate
and mbly y rial
PUSH SYSTEM

Raw Parts product

Assembly
materials manufacture
 OHNO’S KANBAN FORMULA
D (TW  T P )(1   )
Y 
a
Y = Number of kanban
D = Demand per unit time
TW = Waiting time of kanban
TP = Processing time
a = Container capacity(<10%)
 = Policy variables(<10%)
CONCLUSION