Driving Efficiency and Quality: The Toyota Production System (TPS)

The  Toyota Production System (TPS) is a highly effective manufacturing philosophy and management system that has revolutionized the way manufacturing processes are approached. This article from Viindoo will explore the principles of TPS, and how it has helped Toyota become a leading global automotive manufacturer.

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What is Toyota Production System?

The Toyota Production System (TPS) is a manufacturing philosophy and set of principles developed by the Japanese automobile manufacturer Toyota. It is a comprehensive management system that encompasses every aspect of production, including design, procurement, assembly, and quality control.

The goal of TPS is to produce high-quality products with minimal waste, using a system of continuous improvement and respect for people. The system emphasizes the elimination of waste and any activity that does not add value to the product or process. This includes overproduction, waiting, unnecessary transportation, over-processing, excess inventory, unnecessary motion, and defects.

Toyota Production System

What is Toyota Production System?

The Toyota Production System (TPS) has been widely recognized as a leading example of effective manufacturing philosophy and management system. TPS has revolutionized the way manufacturing processes are approached, with a strong focus on efficiency, waste reduction, and continuous improvement. 

Through its emphasis on eliminating waste and involving every employee in the improvement process, TPS has not only transformed Toyota's manufacturing processes but has also become a model for other companies seeking to improve their production systems.

Principles Toyota Production System

The foundation of the Toyota Production System (TPS) is built on two fundamental principles of:

  • Jidoka (meaning “automation with a human touch”)
  • Standardization
  • Just-in-Time
  • Lean Kaizen
  • Total Productive Maintenance

Jidoka principle in Toyota Production System

The Jidoka principle is a key component of the Toyota Production System (TPS), which is a manufacturing philosophy developed by Toyota. The term “Jidoka” can be translated as “automation with a human touch”. 

Toyota Production System Jidoka

Jidoka principle in Toyota Production System

It involves giving machines the ability to detect problems and stop the production process immediately to prevent defective products from being produced. This allows workers to address the problem and correct the issue before production resumes, ensuring that quality is maintained throughout the production process. 

The Jidoka principle also involves empowering workers to identify and solve problems proactively, leading to a culture of continuous improvement and greater efficiency in the production process.

Standardization

Standardization is a critical element of the Toyota Production System (TPS), where processes and production instructions are specified in great detail. This helps to avoid inconsistencies and false assumptions about how a job should be done. 

A standardized work chart is an important factor in achieving efficiency in the production of goods, encompassing the standardization of bill of materials, labor, and machinery. Standardized work charts are also more effective than relying on supervisors to teach from personal experience.

Toyota Production System Standardization

Standardization

The goal of standardization is to:

  • Harmonize production activities, except where production processes require adjustment due to emerging needs. 
  • Facilitate easier expansion of production and reduce disruptions that can arise from non-standardized processes. 
  • Maximize efficiency and minimize waste by controlling three critical factors: Task time (time required to complete a job); sequence of operations, and the standard handling of work-in-progress.

Just-in-Time

Just-in-Time (JIT) is a lean manufacturing philosophy that focuses on producing products in the right quantity, at the right time, and with the right quality. The goal of Just-in-Time is to eliminate waste and improve efficiency by synchronizing production with customer demand. 

Toyota Production System Just-in-time

Just-in-Time

In TPS, each process produces only what is needed for the next process in a continuous flow, and products are made only when they are needed. This allows Toyota to reduce inventory costs, minimize lead times, and respond quickly to changes in customer demand. JIT also involves close communication and collaboration with suppliers to ensure that they deliver the right parts at the right time, further reducing waste and improving efficiency

By implementing Just-in-Time, Toyota has been able to achieve high levels of quality and efficiency while keeping costs low, making it a widely studied and admired production system in the manufacturing industry.

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Lean Kaizen

The Toyota Manufacturing System (TPS) is built on the principle of Kaizen (continuous improvement). Although Kaizen strategies aim to achieve significant improvements, they also prioritize making small improvements. If Toyota can reduce the amount of waste generated during the production of one car by even 1%, it would eventually result in a significant reduction in waste.

Toyota Production System Kaizen

Lean Kaizen

Kaizen Toyota is not solely focused on waste elimination, but also on improving the quality of their products. This process starts with the company's employees, from the highest-ranking CEO to the assembly line workers. When employees are well-trained, motivated to improve themselves, and are recognized as valuable contributors to the company, they are more likely to perform at a higher level. 

Total Productive Maintenance

Total Productive Maintenance (TPM) is the assignment of basic equipment maintenance tasks, including inspection, cleaning, lubrication, and adjustment, to production workers who operate the equipment. TPM clearly delineates responsibilities, encouraging workers to take ownership in identifying, monitoring, and resolving causes of unnecessary machine downtime.

By assigning responsibilities to machine operators, maintenance work and downtime are minimized. This also requires machine operators to regularly update the maintenance team on equipment status to detect and prevent potential technical issues early on.

How Toyota Production System helped Toyota stay resilient

Despite the unprecedented impacts of Covid-19 pandemic on the auto industry, which led to severe shortages of semiconductor chips and other components, Toyota, the originator of lean concepts, outperformed most of its competitors and became the top seller in North America in 2021, surpassing General Motors. 

Chris Nielsen, executive vice president of Toyota North America indicated that the Toyota Production System is really what allowed Toyota to do as well as they did.

Toyota Production System

How Toyota Production System helped Toyota stay resilient

In Toyota Manufacturing System, lead time is taken more seriously, and Toyota did a lot to reduce lead time and build appropriate inventory forecasting, all based on usage rates and patterns.

For example, in Toyota’s assembly facility in Georgetown, Kentucky, once vehicle bodies leave the painting area, a request is sent to the seat supplier, who is located within an hour's distance. The supplier then creates seats that match the correct model and color and delivers them to the assembly line in the correct order after several hours. 

To account for this lead time, the company keeps an inventory of roughly two hours' worth of seats positioned next to the assembly line. As a result, lead time is reduced, the process is more efficient and faster.

In the above article, Viindoo has summarized to you the most detailed information about the Toyota production system. Hope this article will be useful and help you improve your production process better.

Driving Efficiency and Quality: The Toyota Production System (TPS)
Viindoo Technology Joint Stock Company, Amber Nguyen August 13, 2023

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