Why should you learn TPS

Part 2

Origin of Toyota’s monozukuri and TPS
1. Enterprising spirit Always go ahead of the times.
(Toyota’s platform)
2. Principle of genchi genbutsu (Go and sea)
(Sakichi Toyoda)
3. Total participation “Good products, good thinking” (Toyota’s slogan)
4. Making things is making people(Eiji Toyoda)(1) Autonomation(自働化) Concept︓1902 (Sakichi Toyoda)- Autonomous automation with human touch(2) “Just-In-Time”

Concept︓- Elimination of Muda (Waste)(3) Single minutes die change(4) Kanban method- Pull production(Kiichiro Toyoda)(Shigeo Shingo)(Taiichi Oono)- Replenishment by later process

豊田佐吉
豊田喜⼀郎

1938

Type-G

ToyodaAutomaticLoom(1924)

What is TPS/Lean system

TPS/Lean manufacturing
Craft-man Production

19th Century（Hand operation）
First half
20 Century
Latter half
20 Century

Craft -man

Mass Production（Ford system= Fordism）

Ford system

Lean Production

Eiji Toyoda
Taichi Oono
Shigeo Shingo（Toyota system= Toyotism）＜Benchmarking between GM and Toyota ＞
Assembly hours［Hours/Car］

Defects/100cars
Assembly space/car［ sq. ft. ］

Average Partsinventory

Research in 1987

GMFramingham

ToyotaTakaoka

NUMMIFremont

3116191354545

8.1

4.8

7.0

2 Weeks

2 Hours

2 DaysLean system
named by MITSource：J.P.Womack, et al.,The Machine that Changed
the World （IMVP Survey）

What is TPS/Lean system

U.S. learned TPS at NUMMI in 1980’s
High-tech (Robotics, CIM, etc. )was defeated by Low-tech based on TPS
Magazine, “Fortune” report in1986

1982 – GM closed the Fremont, CA Plant- Lowest Productivity - Highest Absenteeism

Silicon Valley in U.S.

NUMMI

1984 – Reopened as NUMMI (Toyota & GM)- Same work force- White-collar jobs switch from directing to support.
- Small work teams trained to design, measure,standardize and optimize their own work.
- If an operator finds a defectiveon the assembly line, he can stop the line.
1985- Productivity & quality doubled, exceeded all other GM plants

2010 – End of Toyota-GM joint venture-Tesla Motor and Toyota announced a partnershipto work on EV development.
- Tesla S sedan is built at the plant.

Tesla S sedanFlagship car

What is TPS/Lean system

Toyota Production System(TPS) in manufacturingTPS has been learned by people around the worldin the name of “Lean system”
1970

1980

1990

2000

2010

’37TMC founded

DevelopmentofTPS(Japan)Deploymentof
Lean system（US,Overseas）

Break away from the traditional TPS・Global business expansion’73TPS （In-house Manual)・Total management from production’78 TPS Publish（Oono）
・Technology innovation of ICT’83 TPS Publish（Monden）’85~90Visit of Japanese industry
from US’03 The Toyota Way(Liker)’90 The machine that change the world（Womack）
Deployment ofLean production

Made in America

Methodology or Concept
originated in TPS

６Sigma, ECR, TOC

Spread of Lean system
to other sector
Agile software processWhat is TPS/Lean system

Many books that have spread TPS to the world
TPS established in 70's⇒ Expanded to the US in 80's ⇒ Named Lean system around 90

S.Shingo Y. Monden
M.ImaiT.OonoT.Oono（1981）（1983）（1986）（1988)（1978)TPS spreads to the world under the name of Lean system(1995 ~)Womack & Daniel Jones（1990） （1996）

Jeffrey Liker（2003）

Mike Rother K. Sobek II.
(2009)（2009）
Shingo Prize

Lester & Solow（1989）

Eric Ries(2011)

Toyota Way（TPS)

Structure of TPS (Toyota Way) TPS is a people centric system, but not technology or tools.
 Toyota Way consists of 4Ps, which are Philosophy, People,Process (Lean Production) and Problem Solving (Liker)

Customer FirstCS (Customer Satisfaction)
QCD ( Quality, Cost, Delivery)

Just-In-Time
Just what is needed,
only when needed, onlyin the Quantity needed・Continuous flow
・Takt Time・Pull System
・Small lot size

Jidooka
People & Teamwork（Autonomation）

Kaizen Activities

Quality built intoeach process（ Exposure ofproblems ）・Manpower-Saving
・Autonomy

Eliminating Muda
・Genchi genbutu ・7 wastes
・Root Cause ・Problem Solving

Leveled Production, Standardized Work
Visual Management, Information Sharing
ES (Employee Satisfaction)
Mutual Trust between Employee and Management

Toyota Way（TPS)

4Ps in “Toyota Way” for TPS/Lean practice•••ProblemSolving
Jeffrey LikerPeople（2003）and Partners

Process-Continuous flow
-Pull System

Philosophy-Respect people

Continual organizational learning through Kaizen
Go and see for yourself to thoroughly understandthe situation. (Genchi Genbutsu)
Make decisions slowly by consensus, thoroughly considering
all options; implement rapidly (Nemawashi)••••

Grow leaders who live the philosophy
Respect, develop and challenge your people
and teams
Respect, challenge, and help your suppliers

•
•
•
••
•
•

Create process “flow” to surface problems
Level out the workload (Heijunka)
Stop when there is a quality problem (Jidoka)
Use pull systems to avoid overproduction
Standardize tasks for continuous improvement
Use visual control so no problems are hidden
Use only reliable, thoroughly tested technology•Base management decisions ona long-term philosophy, evenat the expense of short-term
financial goals

Dr. Jeffrey K. Liker is Professor Emeritus, University of Michigan

Toyota Way（TPS)

What is “Toyota Way” and Toyota’s DNA
1. Principle of “Customer Orientation”- The first is Customer, second is Dealer, third is Maker- Next process is the customer

2. Genchi-genbutu (Go and see)
3. The head office, car development divisionand production plant are adjacent- The climate of Toyota’s head office isgood Spartan Mikawa.
- The headquarters in Tokyo, are mostly bad

4. Focus on human resource development- Making Things is Making People

5. Strong energy for transformation“Toyota Way”
Published in 2001
6 pages booklet（１）Knowledge andimprovement-Challenge-Kaizen-Genchi Genbutsu（２）Respect people-Respect-Teamwork

Okuda (Former chairman and top of Keidanren) saying ;"It is wrong not to change”"Those who oppose change are not silently next to me at least"

6. The strength of the sense of crisis

Part 2-Pause-