The Toyota production system has revolutionized industry.

People believe it can transform the World ………….

~ A group 6 initiative

The machine that changed the world.

The Inception

1890 – Sakichi Toyoda - genchi genbutsu /jidoka.

1920 - Kiichiro Toyoda – Just in time.

“Everyone should tackle some great project at least once in

their life. ... should make an effort to complete something

that will benefit society.”

Pioneering TPS ……

Eiji Toyoda Taiichi Onho

“Out of the rubble of WWII ... ‘with a creative spirit and courage’

[Ohno] solved problem after problem and evolved a new production

system. ... This same process has been played out time and again

throughout the history of Toyota.”

Philosophy

• Principle 1: Base management decisions on a long-term philosophy, even at the expense of short-term financial goals.

“to be the most respected and admired company.”

• Have a sense of purpose that supercedes any short term decision making. Work, grow, align the organization toward a purpose greater than “making money.” Understand your place in the history of the company and work to bring the company to the next level.

• Generate value for the customer, society and the economy. Evaluate every function in the company in terms of its 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 conduct and maintain and improve the skills that enable you to produce added value.

Process

Principle 2: Create continuous process flow to bring problems to the surface

• Redesign processes to achieve high value added, continuous flow.

• Create flow to move material and information fast as well as to link processes and people together so that problems surface right away.

• Make flow evident throughout your organizational culture.

Principle 3: Use “pull” systems to avoid overproduction

• Provide your downstream customers in the process with what they want, when they want it, and in the amount that they want. – Toyota studied US supermarkets in the 50’s

• Pull vs Push (Production Schedule)– Material replenishment initiated by consumption is the basis

for just-in-time. – Just-in Time - an organized system of inventory buffers. – Examples- filling your gas tank, office supplies. – Kanban - sign, signboard, doorplate, poster, billboard,

card…signal

• Scheduling still happens, but keep it short (days vs months).

Principle 4: Level out workload (heijunka)

• Eliminating Muda is just one third of the equation for making lean successful. Eliminating Muri and eliminating Mura in production are just as important.

• Muda (waste)– Transportation, Inventory,Movement Waiting, Overproduction,

Overprocessing, Defects + Unused employee abilities.

• Muri (overwork), Mura (inconsistency),Heijunka (evenness)

• AAABBBCCC to ABCABCABC

Principle 5: Build a culture of stopping to fix problems, to get quality right the first time

• Quality at the source– Jidoka – autonomation– Andon – signal for help

• Yellow, then red• Team leader fix, figure, pull• Segmented assembly line with buffer inventory

– Poke yoke – “get rid of mistakes” mistake avoidance (example-cotter pin/light curtain) (avoid easy mistakes)

• Administrative approaches –standardized work and checklists (pilots) (engineering forced to consider alternatives)

• Toyota’s quality process1. Go and see2. Understand the situation3. One piece flow or andon4. Ask why 5 times

Principle 6: Standardized tasks are the foundation for continuous improvement and employee empowerment

• Standardized work is not the end result, the “one best way,” it is the beginning of improvement.

• Use stable, repeatable methods everywhere to maintain the predictability, timing, and regular output of your processes. (This also helps to manage them). It is the foundation of flow and pull.

• Standardized work consists of three elements-– Takt time– Sequence of the process– Amount of stock on hand

• Capture the accumulated learning about a process by standardizing the current best practices. Allow creative and individual expression to improve upon the standard; then incorporate it into the new standard.

Principle 7: Use visual control so no problems are hidden

At Toyota, visual control refers to the design of JIT information of all kinds, integrated into the process of value-added work, to ensure fast and proper execution of operations and processes.

Its well-developed visual control system (which includes such lean production tools as kanban and andon) increases productivity, reduces defects and mistakes, helps meet deadlines, facilitates communication, improves safety, lowers costs, and generally gives workers more control over their environment.

Principle 8: Use only reliable thoroughly tested technology that serves your people and processes

• Use technology to support people, not to replace people.

• Conduct actual tests before adopting new technology in business processes, manufacturing systems, or products.

• Reject technologies that conflict with your culture or that might disrupt stability, reliability, and predictability.

• Encourage your people to consider new technologies when looking into new approaches to work. Quickly implement a thoroughly considered technology if it has been proven in trials and it can improve the flow of your processes.

People/Partners

Principle 9: Grow leaders who thoroughly understand the work, live the philosophy,

and teach it to others

• Grow leaders from within rather than buying them from outside. (This is an example of applying Heijunka)…or constancy of purpose.

• Leaders must be role models of the company’s philosophy and way of doing business.

• A good leader must understand the daily work in great detail so they can be the best teacher of your company’s philosophy.

• “Before we make cars (monozukuri), we make people (hito-zukuri).”

Principle 10: Develop exceptional people and teams who follow your company’s philosophy

• Create a strong, stable culture in which company values and beliefs are widely shared and lived out over a period of many years.– Respect for Humanity system– Uses both intrinsic and extrinsic approaches to motivation

• Train exceptional individuals and teams to work within the corporate philosophy to achieve exceptional results. – Balance between teamwork and excellent individual work

• Use cross functional teams to improve quality and productivity and enhance flow by solving problems.

• Make an ongoing effort to teach individuals how to work together as team toward common goals. Teamwork is something that has to be learned.

Principle 11: Respect you extended network of partners and suppliers by challenging them improve

• Have respect for your partners and suppliers and treat them as an extension of your company.

• Challenge your partners to grow and develop. It shows that you value them. Set challenging targets and assist your partners in achieving them.

Supplier’s philosophy must fit with Toyota’s

Problem solving

Principle 12: Go and see for yourself to thoroughly understand the situation

• Genchi (actual location) genbutsu (actual material or product)…also known as going to the gemba.

• Example-Siena chief engineer drives in 50 states, 13 provinces and territories and Mexico

– Improvements include turning radius, wind stability, drift, cup holders and trays

• “Common sense will tell you the answer, but collecting data (and then understanding the facts) will tell you whether your common sense was correct.”

• The Ohno circle – He asked an engineer to stand and observe an operation…for 8 hours!

• Hourensou- to report, to update periodically, to consult or advise– Genchi genbutsu for executives (coordinated reporting)

Principle 13: Make decisions slowly by consensus, thoroughly considering all options;

implement decisions rapidly

• Given a year to implement a project…

– Western – typically 3 months planning, 9 months implementing and correcting – Toyota – typically 10 months planning, pilot, implement flawlessly

• Toyota decision making1. Find out what is really going on, including genchi genbutsu2. Understanding underlying causes that explain surface appearances – asking

“Why?” five times3. Broadly considering alternative solutions and developing a detailed rationale

for the preferred solution. – What alternatives have you considered?– How does this solution compare with those alternatives?

4. Building consensus within the team, including employees and outside partners.

– Nemawashi –the process of discussing problems and potential solutions with all those affected, to collect their ideas and get agreement on a path forward. e.g. tollgate review

5. Using very efficient communication vehicles to do 1-4, preferably one side of one page (e.g. one page 7 step storyboards)

Principle 14: Become a learning organization through relentless reflection (hansei) and continuous

improvement (kaizen)

“Many people are surprised when I give talks and tell them that Toyota doesn’t have a Six Sigma program. Six Sigma is based on complex statistical analysis tools. People want to know how Toyota achieves such high levels of quality without the quality tools of Six Sigma. You can find an example of every Six Sigma tool in use somewhere in Toyota at some time. Yet most problems do not call for complex statistical analysis, but instead require painstaking, detailed problem solving. This requires a level of detailed thinking and analysis that is all too absent from most companies in day-to-day activity. It is a matter of discipline, attitude, and culture.”

~Jeffrey Liker

Everyone in the auto industry is familiar with Toyota’s dramatic business success and, of course, consumers are

demonstrably aware of the company’s world-renowned quality. In fact, Toyota has done so well that, as Liker points

out, many consider the company to be “boring.” For, after all, steadily growing sales, consistent profitability, huge

cash reserves, operational efficiency (combined with constant innovation—not an easy complement to pull off), and

top quality, year after year, are not the stuff of breaking news. But, despite this reputation as the best manufacturer

in the world, and despite the huge influence of the lean movement, most attempts to emulate and implement lean

production have been fairly superficial, with less than stellar results over the long term. “Dabbling at one level—the

‘Process’ level,” U.S. companies have embraced lean tools, but do not understand what makes them work together in

a system.

To conclude ……..

CREDITS

• Prateek bhardwaj – 31• Esha Sharm – 32• Pratik laddha -33• Prerna Gupta – 34• Prithvi Ghag - 35