The Ingenious Toyota Production System - Vol.358
You don't become the world's largest automaker just like that - and Toyota sure knows that. The company produces millions of cars each year all over the world, serving many different segments, from compacts to large SUVs and utility vehicles. What is their secret? Well, there are probably many, but one of the things that helped this company be great is the Toyota Production System or TPS for short.
What is TPS?
Good question. Toyota defines the TPS as a practical expression of their people and customer-oriented philosophy. It comprises a set of principles that have been proven in the company's practice so far. For starters, the TPS has three goals, the first of which is to provide the highest quality vehicles to customers, while keeping the cost low. This should be done on time and with shortest possible lead times.
The second goal of the TPS is to provide its members with fair treatment, job security, as well as work satisfaction which, as we all know, is one of the most important things at any job. Finally, the third goal of the TPS is the flexibility that will give the company chance to react quickly to the changes in the automotive market. Additionally, profit should be achieved with cost-effective reduction, and there should be long-term prosperity for the company.
Kaizen
You might have heard about the word Kaizen, which in Japanese means "continuous improvement". The concept is applied throughout the Japanese business world, and Toyota is no exception. In fact, the company says that kaizen is the heart of their Toyota Production System. All members of the Toyota Motor Corporation are encouraged to seek continual improvement, which applies to every sphere of the company's activities, ranging from the manufacturing process to serving customers wherever they may be in the world. This improvement is done hand-in-hand with the members adhering to precisely defined and standardized tasks, which ensure optimal results.
Jidoka
Another important concept in the Toyota Production is jidoka. The word means "automation", but Toyota takes it up a notch, and there it means "automation with a human touch". And the company sure knows a lot about automation. More than 100 years ago - in 1912 - Mr. Sakichi Toyoda invented an automatic loom that stopped automatically if any of the threads snapped. This was actually the world's first loom of its kind. Jidoka is manifested in Toyota's equipment and processes, which, when they sense a problem, stop and call attention to problems, which makes the whole manufacturing process more efficient.
Just In Time
Pioneered by Toyota, the "Just in Time" is another important component in the Toyota Production System. The term itself was coined by a Toyota engineer, and the company describes it as a "simple but inspired application of common sense". What it basically means is that the entire process of production is allowed to be regulated by the laws of supply and demand. Sounds simple enough, but you'd be surprised how hard it can be to meet the demand in the exact amount. By using this approach, Toyota is able to produce the amount of parts and materials that are very close to the demand, thus making the whole production process efficient.
TPS and Suppliers
Suppliers are an essential part of any motor vehicle production process. Suppliers who work with Toyota also get to experience the benefits of the company's Toyota Production system, such as the Just in Time production. It allows them to efficiently plan the distribution and manufacturing of certain parts, thus improving the overall quality and making the end users - the customers - happier and more satisfied.