Toyota Production System Theory

The Toyota Production System

by

John Doe

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The purpose of this paper is to identify and analyze the concepts and practices that have made the Toyota Production System (TPS) one of the most influential supply chain advances in history. By discovering and studying the Toyota Production system, we should gain insight into the foundations of lean manufacturing concepts which will help steer our firm into a new level of success and innovation.

The overall goal of TPS is to provide cost savings, increased value, and waste elimination. By accomplishing these tasks, adopting firms should see an increase in profitability, customer satisfaction, and reduction of lost revenue. TPS is often illustrated as a house consisting of a foundation of standardized work, continuous improvement (Kaizen), and leveling (Heijunka) (Kaizen Institute, 2016). The components of this foundation focus on creating a culture of standardization that allows for dynamic change to be made when necessary.  Furthermore, the kaizen concept promotes the idea of continually searching for ways to improve both the manufacturing process as well as the people who are closest to the production. Finally, the foundation of TPS is leveled by stabilizing schedule variability, lead-time reduction, and coordinating consumer demand with production. Once these three concepts are in place, the TPS “house” can be raised.

Continuing the TPM “house” illustration, we now address the walls of the home. These walls are associated with the principles of automation (Jidoka) and Just-in-Time production. Jidoka focuses on creating equipment that is free of defects, that are reliable and easy to use. By centering on producing a process that is engrained with quality in mind, we initiate a sequence of events that lead to the creation of quality products or services. Furthermore, by including automation in the production of outputs, we reduce the incidences of human error. The Just-in-Time wall of the TPS house focuses on the elimination of inventory surplus as well as the elimination of waste. In developing a process where materials and information are used when necessary, the reduction of waste and resources is immediate. The TPM process supports the production of goods when demand is present, never before (Toyota Production System, 2016). Real-time reporting of the usage of inputs alert the firm when more resources are needed for assembly. In adopting the principles of automation and JIT, customers receive their desired product in a timely matter, while the manufacturer maintains balance of resources and quality.

People are at the focal point of the Toyota Production System. They provide the ultimate influence within the scheme. By utilizing quality, driven people, TPS becomes a highly effective means of production. The roles of humans within this system range from assembly to concept design. All members of this process are required to work as a team and abide by the guiding principles of TPS. People provide the invaluable inputs that have made TPM such a successful process globally. This input drives the continuous improvement of manufacturing processes and procedures. The Toyota Production System relies on the feedback of those closest to the system to assist in improving it on a regular basis. They offer suggestions and provide insight that has allowed for great advances throughout the SCM and manufacturing fields.