What is TPS - Toyota Production System

1Marek.Piatkowski@Rogers.com
What is Toyota
Production System
Introduction
Thinkingwin, Win, WIN
What is Toyota Production System?
Introduction to TPS
Marek Piatkowski – March 2017

What is Toyota
Production System
Introduction
Introduction - Marek Piatkowski
 Professional Background
 Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from
1987-1994
 TPS/Lean Transformation Consulting - since 1994
 Professional Affiliations
 TWI Network – John Shook, Founder
 Lean Enterprise Institute (LEI) – Jim Womack
 Lean Enterprise Academy (LEA) – Daniel Jones
 CCM/CAINTRA – Monterrey, Mexico
 SME, AME, ASQ, CME
 Lean Manufacturing Solutions - Toronto, Canada
http://twi-network.com

What is Toyota
Production System
Introduction

What is Toyota
Production System
Introduction
The Most Studied Company in the World

7
Production should take place with a
little inventory as possible,
preferably only the one component that
is to be processed or assembled next.

What is Toyota
Production System
Introduction
Stability
GOAL: Highest Quality, Lowest Cost, Shortest Lead Time
1. Stable Manufacturing Processes
2. 100% Quality Parts
Heijunka Standardized Work Kaizen
Just-in-Time Jidoka
Stop the line
and fix
the Problem
Separate man’s
work from
machine’s work
Continuous
Flow
Takt Time
Pull System
The Toyota House
Toyota
Production
System
(TPS)

What is Toyota
Production System
Introduction
Toyota Sensei
 Sensei (先生) is a Japanese title used to
refer to or address teachers, professors,
masters, coaches, professionals such as
lawyers, doctors, politicians, clergyman
and other figures of authority.
 The word Sensei is also used to show
respect to someone who has achieved a
certain level of mastery in an art form or
science or some other skill: accomplished
novelists, musicians, and artists for
example are addressed in this way.
 The Japanese Sensei is a courtesy title for
a man of respected stature.

What is Toyota
Production System
Introduction
What is TPS – Toyota Production System?
 Toyota Production System (TPS) is a practical expression of Toyota's people and
customer-oriented philosophy.
 This is not a rigid company-imposed procedure but a set of principles that have
been proven in day-to-day practice over many years.
 Many of these ideas have been adopted and imitated all over the world.
 TPS has three desired outcomes:
 To provide the customer with the highest quality vehicles, at lowest possible cost, in
a timely manner with the shortest possible lead times.
 To provide Toyota employees with work satisfaction, job security and fair treatment.
 It gives the company flexibility to respond to the market, achieve profit through cost
reduction activities and long-term prosperity.

What is Toyota
Production System
Introduction
Operating
Principles
TPS Leadership
TPS
Toyota’s
Philosophy
What is Toyota Production System (TPS)?

What is Toyota
Production System
Introduction
Toyota’s Philosophy
Toyota’s
Philosophy
Operating
Principles
TPS Leadership
TPS
Toyota’s
Philosophy
Eiji Toyoda
1913 -2013
Akio Toyoda
2013 -

What is Toyota
Production System
Introduction
Guiding Principles at Toyota
1. Always be faithful to your duties, thereby contributing to the company and to the
overall good
2. Always be studious and creative, striving to stay ahead of the times
3. Always be practical and avoid frivolousness
4. Always strive to build homelike atmosphere at work that is warm and friendly
5. Always have respect for spiritual matters and remember to be grateful at all times
Sakichi Toyoda
Founder of Toyota

What is Toyota
Production System
Introduction
Guiding Principles at Toyota
1. Honor the language and spirit of the law of every nation and undertake open and
fair business activities to be a good corporate citizen of the world.
2. Respect the culture and customs of every nation and contribute to economic and
social development through corporate activities in their respective communities.
3. Dedicate our business to providing clean and safe products and to enhancing the
quality of life everywhere through all of our activities.
4. Create and develop advanced technologies and provide outstanding products and
services that fulfill the needs of customers worldwide.
5. Foster a corporate culture that enhances both individual creativity and the value
of teamwork, while honoring mutual trust and respect between labor and
management.
6. Pursue growth through harmony with the global community via innovative
management.
7. Work with business partners in research and manufacture to achieve stable, long-
term growth and mutual benefits, while keeping ourselves open to new
partnerships.
Eiji Toyoda
1913 - 2013

What is Toyota
Production System
Introduction
Toyota’s Philosophy - People
 The Toyota Production System (TPS) itself is based on the belief that the company
that ignores human respect will not endure
 People – a company’s greatest asset is its people. Toyota does as much as possible
to take care of the employees, recognizing first and foremost the importance of job
security
 People enjoy their work when it involves trying out their own ideas, mastering new
skills and making visible contributions
 Teamwork is a foundation of TPS – all employees are required to participate and to
follow rules and principles of TPS
 Operators who are the most knowledgeable of any manufacturing operation are
people who perform that job daily – their involvement is critical to the success of
implementation of TPS
 “Good Thinking, Good Product” – employees are expected to contribute to the
improvement of their own work.
Sakichi Toyoda
Founder of Toyota

What is Toyota
Production System
Introduction
Toyota’s Philosophy - People
 We respect our employees and believe that the success of our business is led by
each individual’s creativity and good teamwork
 We respect and honor the human rights of people involved in our business
 Through communication and dialogue with our employees, we build and share the
value “Mutual Trust and Mutual Responsibility” and work together for the success
of our employees and the company
 Management of our company takes leadership in fostering a corporate culture and
implementing policies that promote ethical behaviorEiji Toyoda
1913 - 2013

What is Toyota
Production System
Introduction
Guiding Principles of Toyota Revised April 1997
1. Honor the language and spirit of the law of every nation and undertake open and
fair corporate activities to be a good corporate citizen of the world.
2. Respect the culture and customs of every nation and contribute to economic and
social development through corporate activities in the communities.
3. Dedicate ourselves to providing clean and safe products and to enhancing the
quality of life everywhere through all our activities.
4. Create and develop advanced technologies and provide outstanding products and
services that fulfill the needs of customers worldwide.
5. Foster a corporate culture that enhances individual creativity and teamwork value,
while honoring mutual trust and respect between employees and management.
6. Pursue growth in harmony with the global community through innovative
management.
7. Work with business partners in research and creation to achieve stable, long-term
growth and mutual benefits, while keeping ourselves open to new partnerships.

What is Toyota
Production System
Introduction

What is Toyota
Production System
Introduction
Toyota’s Philosophy - Operating Guidelines
 Toyota’s goal is to contribute positively to the society and provide for the welfare
of our employees through the provision of better cars, at the better prices, for
more people.
 Produce superior automobiles that are in total balance with Customer’s desires for
quality and performance, while at the same time answering other modern-day
needs such as resource conservation, clean exhaust emissions and safety.
 Customers are the reason for existence and they must always receive a perfect
product or service
 Assure high quality by building it at each process. Defects are never passed on to
following process.
 Improvement is always possible and necessary. Continuously improve every aspect
of the system through Kaizen. Any existing process can be improved - no ifs, buts
or maybes
Akio Toyoda
2013 -

What is Toyota
Production System
Introduction
TPS Manufacturing Philosophies
 Expected cost reductions and process improvements can be achieved only, by
implementing, supporting and maintaining following TPS Manufacturing
methodologies and principles:
 Every customer-supplier connection must be direct and there must be a clear-cut
way to send requests and receive responses.
 All production lines must be balanced and operating to the Takt time
 The pathway for every product and service must be simple and direct.
 All our process must flow without interruption
 All inventory buffers are wasteful and need to be eliminated.

What is Toyota
Production System
Introduction
 All inventory levels will be determined based on the frequency of deliveries,
delivery lead times and consumption rates.
 All inventories will be stored in centralized Supermarkets.
 Production Schedule will be issued only to a single operation (pacemaker), all
preceding operation will work to the Pull System signal.
 All production must be scheduled in the smallest logical lot sizes.
 Daily schedule attainment is mandatory. Manufacturing will not overproduce,
under-produce or produce too soon.
 All deliveries of parts and components, internal and external, will be conducted
frequently and in smallest possible lots.

What is Toyota
Production System
Introduction
 All production down time due to parts shortage must be eliminated.
 All Waste is not acceptable and must be eliminated
 Our Set-up and Changeover processes must be minimized – SMED
 All work shall be highly specified as to content, sequence, timing, and outcome and
be defined in terms of Standardized Work.
 All equipment and work cells will be designed to support continuous flow
processing
 Manufacturing equipment will be maintained properly and repaired swiftly
 All vital information required to make shop floor decisions will be visually displayed
for anybody to see and to understand.

What is Toyota
Production System
Introduction
How do we translate these philosophies?
 By definition: Lean is a logical collection of philosophies, operating principles,
methodologies and tools, which will lead any Company to greater cost reductions
and efficiencies improvements.
 How are Toyota's philosophies, policies and practices translated in your Company?
 What is essential?
 What is difficult?
 What is misunderstood?
 What are the major issues?
 What are the corporate policies needed to support philosophies of Lean?

What is Toyota
Production System
Introduction
Operating Principles
Operating
Principles
Operating
Principles
TPS Leadership
TPS
Toyota’s
Philosophy
PeopleEnterprise Tools and Methods

What is Toyota
Production System
Introduction
TPS Operating Principles - Business
Enterprise

What is Toyota
Production System
Introduction
Principle: Base your management decisions on a long term philosophy, even at the
expense of short-term financial goals
 Have a philosophical sense of purpose that supersedes any short-term decision
making. Work, grow and align the whole organisation toward a common purpose
that is bigger than making money.
 Understand your place in the history of the company and work to bring the
company to next level. Your philosophical mission is the foundation for the other
principles.
 Generate value of the customer, society and the economy - it is your starting
point. Evaluate every function in the company in terms of ability to achieve this.
 Be responsible. Strive to decide your own fate. Act with self reliance and trust in
your own abilities. Accept responsibility for your own conduct and maintain
improve the skills that enable you to produce added value.
Enterprise

What is Toyota
Production System
Introduction
Toyota Motor Company
Toyota Production System, p.1
Enterprise

What is Toyota
Production System
Introduction
Principle: Constantly shorten the time it takes to convert Customer orders into deliveries.
 Lead time is defined as total time required to manufacture an item, including order
preparation time, queue time, setup time, run time, move time, inspection time, and
put-away time.
 An effort should be made to continuously reduce time from release of an order to
production and shipment. For make-to-stock products, it is the time taken from the
release of an order to production and receipt into finished goods inventory.
 Excess inventory presents a great deal of waste, not to mention quality issues
(spoilage), storage requirements, investment of funds, limiting cash flow, among
others. Reducing inventory will decrease your lead-time.
 Careful consideration of cost, replenishment lead-times, and space requirements play
an important role in determining reduced inventory levels. The order process is often
changed and more inventory is repositioned at “points of use.”
Enterprise

What is Toyota
Production System
Introduction
Enterprise

What is Toyota
Production System
Introduction
Principle: Add value to your organization by developing your people and partners
 Grow leaders who thoroughly understands the work, live philosophy and teach it to
others. Grow leaders within, rather than buying them from outside the
organisation.
 Do not view the leader's job as simply accomplishing tasks and having good people
skills. Leaders must be role models for the company's philosophy and the way of
doing business.
 A leader must understand the daily work in great detail so that he or she can be a
best teacher of your company's philosophy.
 Have respect for your partners and suppliers and treat them as an extension of
your business.
 Challenge your outside business partners to grow and develop. It shows that you
value them. Set challenging targets and assists your partners in achieving them.
Enterprise

What is Toyota
Production System
Introduction
People
TPS Operating Principles - People

What is Toyota
Production System
Introduction
Principle: Develop exceptional people and teams who follow your company's philosophy
 Create a strange, stable culture in which company values and beliefs are widely
shared and lived out over a period of many years.
 Train exceptional individuals and teams to work within the corporate philosophy to
achieve exceptional results. Work hard to reinforce the culture continually.
 Use Cross functional teams to improve quality and productivity and enhance flow
by solving difficult technical problems.
 Empowerment occurs only when people use the company's tools to improve
company.
 Make an ongoing effort to teach individuals how to work together as teams
together toward common goals. Team work is something that has to be learned.
People

What is Toyota
Production System
Introduction
People

What is Toyota
Production System
Introduction
Principle: Continuously drive root cause problems solving activities
 Go and see for yourself to thoroughly understand the situation.
 Solve problems and improve processes by going to the source and personally
observing and verifying data rather than theorizing on the basis of what other
people or the computer screen tell you.
 Think and speak based on personally verified data.
 Even high-level managers and executives should go and see things for themselves,
so they will have more than a superficial understanding of the situation.
 Any improvement must be made in accordance with the scientific method, under
the guidance of a teacher, at the lowest possible level in the organization
 A manager’s or supervisor’s role consists of leading problem solving activities in a
multi-skilled, cross-functional team environment
People

What is Toyota
Production System
Introduction
People

What is Toyota
Production System
Introduction
Principle: Make decision slowly by consensus, thoroughly considering all options;
implement decisions rapidly. Practice PDCA.
 Do not pick a single direction and go down that one path until you have thoroughly
considered alternatives.
 Nemawashi is the process of discussing problems and potential solutions with all of
those affected, to collect their ideas and get agreement on a path forward. This
consensus process, though time - consuming, helps broaden the search for
solutions, and once a decision is made, the stage is set for rapid implementation.
 PDCA is a systematic four-step management method used in business for the
control and continuous improvement of processes and products.
 PDCA provides a systematic approach to achieving continuous improvement.
 It is a great management and communication tool
People

What is Toyota
Production System
Introduction
People

What is Toyota
Production System
Introduction
Principles: Continually improve standard processes and procedures in order to ensure
maximum quality, improve efficiency and eliminate waste
 Continuous improvement process (CI), is an ongoing effort to improve products,
services, or processes.
 Continuous Improvement efforts seek "incremental" improvement over time or
"breakthrough" improvement all at once.
 Value added processes are constantly evaluated and improved and non-value
added process and Waste are minimized or eliminated.
 Continuous Improvement is a gradual never-ending process which is focussed on
increasing the effectiveness and/or efficiency of an organisation.
 Continuous Improvement is not limited to quality initiatives. Put simply - it means
‘getting better all the time’.
People

What is Toyota
Production System
Introduction
People

What is Toyota
Production System
Introduction
Principle: Build a culture of stopping to fix a problem and to get quality right at the first
time
 Quality of the customer drives your value proposition
 Use all the modern quality assurance methods available
 Build into your equipment the capability of detecting problems and stopping itself.
Develop a visual system to alert team or project leaders that a machine or process
needs assistance. Jidoka (machines with human intelligence) is the foundation for
"building in" quality.
 Build into your organisation support systems to quickly solve the problems and put
in place countermeasures.
 Build into your culture the philosophy of stopping or slowing down to get quality
right the first time to enhance productivity in the long run.
People

What is Toyota
Production System
Introduction
TPS Operating Principles – Tools and Methodologies
Tools and Methods

What is Toyota
Production System
Introduction
TPS Operating Principles – Tools and Methods
Principle: Constantly strive for absolute elimination of waste, overburden and
unevenness in all areas.
 Meaningful Work consists of:
 Value Added Work - operations which increase a value of a product from the
Customer’s point of view
 Non-Value Added Work – Incidental Work. Work that does not have any particular
value, but it has a cost.
 The higher the value-added operation in your completed work, the higher the level
of production efficiency will be.
 Waste (Muda) - is NOT work. Waste are activities, motions, behaviors or actions
that are not part of the actual work (non essential activities).
 Two major contributors to Waste:
 Unevenness - fluctuating schedules, planning and production quantities
 Overload - machine or employee pushed beyond natural limits of their capacity
Tools and Methods