Part 1

Basic principle of TPS
TPS -Toyota Way
Satoshi Kuroiwa
Managing director, ESD 21
Former Visiting Professor, NIT and KIT
Former Toyota Corp.

1. Introduction
2. Why should you learn TPS
3. What is TPS/Lean system
4. Toyota Way（TPS)
5. Fundamental of TPS
6. Concluding

Agenda<Speaker’s Profile>- Worked for Toyota for 34 years and had experience in the car
production preparation engineering together with IT engineering- Specialized in Factory Automation based on TPS (1980~2000)- Involved in IMS and E-Commerce project organized by METI.
- After retirement from Toyota, had been a visiting professor ofNagoya /Kyusyu Institute of Technology and have been working
for some NPOs, such as ESD21 and APSOM and so forth.

Introduction

Structural change to the global economy
Almost all issues brought by ICT evolution and digitalization
Key Issues- Open - Speed - Global - Collaboration - Core-competence
1. Globalization of economy
2. Environment and energy issues
3. Change of the industrial structure
4. New ICT impact to the manufacturing industries
ICT Sector
VerticalStructure(~1990)Auto Sector

HorizontalStructure

New era(GAFA )1. Mega-competition
2. HV/EV/PHV/FCV
3. CASE in the new ICT era

CPU：Intel etc.
OS：Win, Mac,
Apps： SAP, etc.
N/W： Cisco etc.
Peripheral：Canon, etc.
PC ：Dell etc.

GoogleApple
Facebook
AmazonSamsung……

C: Connected
A: Autonomous (Vehicle)
S: Shearing (Economy)
E: Electric (Vehicle)

All Products

IBM

Prius
Mirai

Introduction

Initiatives of enhancement ofmanufacturing in the new ICT era
GAFA

BATH

Google, Apple
Facebook, Amazon

Baidu, Aribaba
Tencent, Huawei

Industry 4.0

Society 5.0

Introduction

Toyota’s production history and overviews

Why should you learn TPSToyota System(TPS) and ICT are criticalfor sustainable manufacturing
General-purpose technologies (GPTs) are technologies that canaffect an entire economy (usually at a national or global level)<After AD to 19th Century>“Printing” , “Steam Engines ”,“Railway ”, “Electricity ”
and so forth<GPTs in the 20th Century>

 Automobile
 Airplane
 Mass Production(Ford System) Computer Lean Production(Toyota System) Internet
 Biotechnology
https://en.wikipedia.org/wiki/General_purpose_technology

Why should you learn TPS

Basic fundamentals of Monozukuri
Global NO.1
TPS(Toyota Production System) ProductQuality First-Just-In-Time-Jidoka (Autonomation)-Gnechi-genbutu (Go and see)
- QC(Quality control)

Monozukuri-Making things is making people-Production technology-Processing technology Continuous Improvement -Respect for people- TQM / TPM - IT system with Technology and Skill -Teamwork

Technology
Evolving

Hitozukuri

Hitozukuri= Human development Monozukuri= Manufacturing

Aim for an ideal Factory

Resources of an enterprisepeoplemoney
wisdommaterial
information

The Ideal Factory Manager
published by NITWhy should you learn TPS

Why are Toyota System (TPS) and IT?
 Business outcome is brought by activities
with people and machine systems (IT) IT has evolved one million times in 50 years.
 IT is a powerful tool for business activities

4 million years
Communication
speedCPUspeed<Business Activity>
Input
PeopleMaterial
Money
Information

Value added byInformation processing/creating ,（Design/ Production/ procurement and etc.)

and Production

Productivity and CompetitivenessProductivity ＝

Output
Input＝

Value added
Lead-time

OutputProducts, Service
Customer Value

Increase productivity＝SalesCost Increase sales
 Reduce cost
 Shorten lead-timeWhy should you learn TPS

Business consists of people and machines(IT)Business Activities are information processing
with people and machine systems (IT)
PeopleSystems

People (Brain)

Computer(software)

Organization

IT Architecture
Analogy Control

Management
Communication
Enterprise
Organization
Org
ManManBusiness
Partners

Man

Org.

Ent.

Connection
COM

Ent.

Org.

Machine/IT
Systems

Intranet

Org.

COM

Extranet
COM

TPS

WAN

COM

COM
COM

Office work＝ People
Production work ＝ People

COM

COM
COM

Ent.
Ent.

Internet
COM

LAN

Ent.

COM

COM

COM＝Computer＋ Machine （CAD/ERP, RPA, e-Mail, Printer )＋ Machine （Robot/Automation, FA/IT)IT

Why should you learn TPS"Man-machine (IT) system" in manufacturing

Part 1-Pause-