Toyota Production System (TPS) Basics

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Click here for the Japanese version. トヨタ生産方式

The Toyota Production System (TPS) is a management philosophy and strategy from the lean production perspective. It is a people oriented system because it respects the fact that it is people who operate the system. Respect for the work team forms the basis of TPS. Effective utilization of a member`s time - employee engagement and encouraging lean process improvement contributions from staff are key elements. Under TPS, every action of a team member should add value to the production process and help increase overall productivity. Communication and visual management are at the core TPS.

For more on Toyota History, click here.

Toyota Production System Basics

What are the main pillars of TPS?

1. Standardization

2. Just in Time Manufacturing

3. Lean Kaizen

4. Jidoka or Autonomation

5. Total Productive Maintenance

For information on Dr. Shigeo Shingo, one of the leaders of the creation of TPS, click here.

Employee motivation - Process Improvement Japan

TPS Objectives

  • Reduce cost by the elimination of waste- good products that are safer and lower in cost.

  • Make it easier to obtain and guarantee good quality.

  • Based on teamwork and respect for human life, create a workplace where all can fulfill their potential.

  • Build a lean production system capable of responding immediately to changes in the market.

Key to understanding The Toyota Production System:

Profit and Cost

Cost + Profit does not equal Price

Price - Cost = Profit

In order to increase profit do not raise the price - it is determined by the market.

In the market, companies compete against eachother in function, quality and price.

Reduce Cost

Determined by production and supply chain management methods

Use internal know how and innovation to reduce cost and generate profit

Unless you reduce the cost, you cannot expect a profit!

TPS is based on the complete elimination of waste in all aspects of production in the pursuit of the most lean production method.

This was developed by Kiichiro Toyoda, the founder (and first president) of The Toyota Motor Corporation.

Central to TPS is the complete elimination of waste or "muda".

There are 7 types of waste:

All these "muda" elements intertwine with each other to create more muda, eventually impacting the management of the corporation itself.

The elimination of waste is vital. Find out more, click here.

Lean 5s lays the foundation for TPS success, click here for more.

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