TOYOTA PRODUCTION SYSTEM If we talk about the benefits of strategic triangle of 3 C’s the best example is TOYOTA PRODUCTION SYSTEM. The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices. Originally called "Just-in-Time Production,". THEME: “Shortening lead time by eliminating waste in each step of a process leads to best quality and lowest cost, while improving safety and morale.
” Toyota system demonstrates that focusing on quality actually reduced cost more than focusing only on cost.They always believe in doing right part of work in right amount and at right time. GOAL: The main objectives of the TPS are to design out overburden (muri) and inconsistency (mura), and to eliminate waste (muda). The most significant effects on process value delivery are achieved by designing a process capable of delivering the required results smoothly; by designing out "mura" (inconsistency). It is also crucial to ensure that the process is as flexible as necessary without stress or "muri" (overburden) since this generates "muda" (waste).Finally the tactical improvements of waste reduction or the elimination of muda are very valuable.
There are seven kinds of muda that are addressed in the TPS: 1. Waste of overproduction (largest waste) 2. Waste of time on hand (waiting) 3. Waste of transportation 4.
Waste of processing itself 5. Waste of stock at hand 6. Waste of movement 7. Waste of making defective products The elimination of waste has come to dominate the thinking of many when they look at the effects of the TPS because it is the most familiar of the three to implement.
In the TPS many initiatives are triggered by inconsistency or overburden reduction which drives out waste without specific focus on its reduction. This system, more than any other aspect of the company, is responsible for having made Toyota the company it is today. Toyota has long been recognized as a leader in the automotive manufacturing and production industry. CUSTOMER: they start observing from the day when a customer made an order. What actually the customer want? Delivery of quality product at the ordered time.
To attract customer and increase the sales they always believe in CONTINUOS IMPROVEMENT.We respect others, make every effort to understand each other, take responsibility and do our best to build mutual trust. Diversification of products according to demand of customer is the key objective i. e. greater product variety increase customer inclination.
COMPETITION: they avoid excess inventories so results in cost reduction. TPS focuses on the entire value stream to eliminate the non-value adding items. As u reduce cost you create option of lower price which often lead to high market share . Thus cut away the competition. Growth through acquisition and diversification.
CORPORATION: They believe in Go and see for yourself to thoroughly understand the situation. Make decisions slowly by consensus, thoroughly considering all options. Become a learning organization through relentless. The Toyota production system has been compared to squeezing water from a dry towel. What this means is that it is a system for thorough waste elimination. Because of all these Toyota was able to greatly reduce leadtime and cost using the TPS, while improving quality.
This enabled it to become one of the ten largest companies in the world. Became the largest car manufacturer in 2007.
