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Toyota Production System
and what it means for business

www.toyota-forklifts.eu

T O Y O T A

P R O D U C T I O N

S Y S T E M

Table of Contents

Toyota Way Toyota Production System Definition TPS History Just-in-Time Jidoka Kaizen The Environment Health and Safety What TPS Means for your Business Glossary

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The Toyota

Way

The Toyota Production System is an expression of The Toyota Way. The five core values of The Toyota Way are shared and practised by Toyota employees at every level in their daily work and relations with others. This is how Toyota is able to deliver sustainable customer satisfaction.

Continuous Improvement
CHALLENGE

Respect for People
RESPECT “Toyota respects others, makes every effort to understand others, accepts responsibility and does its best to build mutual trust.”

“To maintain a long-term vision and meet all challenges with the courage and creativity needed to realise that vision.”

KAIZEN “Continuous improvement. As no process can ever be declared perfect, there is always room for improvement.”

TEAMWORK “Toyota stimulates personal and professional growth, shares opportunities for development and maximises individual and team performance.”

GENCHI GENBUTSU “Going to the source to find the facts to make correct decisions, build consensus and achieve goals.”

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Toyota Production System Definition
The Toyota Production System empowers team members to optimise quality by constantly improving processes and eliminating unnecessary waste in natural, human and corporate resources. TPS influences every aspect of Toyota’s organisation and includes a common set of values, knowledge and procedures. It entrusts employees with well-defined responsibilities in each production step and encourages every team member to strive for overall improvement.

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TPS History
Sakichi Toyoda founded the Toyoda Spinning and Weaving Company in 1918. He developed the first steam-powered loom that could detect a broken thread and stop itself automatically. This innovation led to the wider principle of jidoka, or automation with a human touch – later to become one of the two pillars of TPS. Some years later in 1937, Sakichi’s son Kiichiro founded the Toyota Motor Corporation. Kiichiro took his father’s concept of jidoka and developed his own complementary philosophy – justin-time – which would become the other pillar of TPS. He visited Ford’s mass production plants in Michigan to study their use of assembly lines. Taiichi Ohno

After World War II, the need to be able to manufacture vehicles efficiently was greater than ever. Kiichiro’s younger cousin, Eiji – later to become president and chairman of Toyota Motor Manufacturing – tasked one of Toyota’s young engineers, Taiichi Ohno, with the job of increasing productivity.

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Ohno’s achievement was to marry the just-in-time concept with the principle of jidoka. In 1953, Ohno also visited the USA to study Ford’s production methods, but he was much more inspired by American supermarkets. He noticed how customers would take from the shelves only what they needed at that time, and how those stocks were quickly and precisely replenished. Ohno had the insight that a supermarket was essentially a well-run warehouse, with ‘goods-in’ closely matching ‘goods-out’, and no space for long-term storage. On his return to Japan, Ohno developed the same idea into the kanban concept. Ohno also learnt from the American pioneer of quality control, Dr. W. Edwards Deming. The aim of Deming’s method was to improve quality at every stage of a business, from product design, through manufacturing, to aftersales service. Deming taught that each stage in a manufacturing process should...
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