Toyota Production System

Topics: Toyota Production System, Lean manufacturing, Management Pages: 11 (3318 words) Published: September 4, 2012

Submitted To:
Prof. A.K. Dey
Submitted By: Abhishek Sharma-11DM006 Aditya Arora- 11DM010 Avni Gupta- 11DM034 Bharti Verma- 11EMPDM198 Kumar Gaurav- 11EMPDM201 Anurag Singh- 11EMPDM197

The Toyota Motor Corporation was founded in 1937 by Kiichiro Toyoda. It originally started as a subsidiary of his father’s company Toyoda Industries. The first vehicle, the Toyota AA, was produced in 1936 whilst the company was still associated with Toyoda. The brand as we know it became established as an independent company in 1937 and changed their name to Toyota. In the year 2000, Toyota was the world's third largest car company and the largest car company in Japan. As of June 2012, Toyota is the world’s largest automaker with a 9.8 percent share of the automobile global marketplace. The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota that comprises its management philosophy and practices. The TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. The system is a major precursor of the more generic "lean manufacturing". The lean manufacturing philosophy includes concepts such as customer relations, product design, supplier networks and operations. The lean manufacturing practices have made Toyota achieve low cost production and allowed them to manufacture high quality cars at lowered costs. Toyota Motor Company has been successful because of its unique reduction systems that emphasizes on continuous improvement and just in time management. It has created a decentralized structure that encourages employee participation and team working. These incorporated concepts just as supply chain management and inventory management has helped Toyota in creating high quality automobiles and gaining a competitive edge in the highly competitive global automobile market.

Operations Management:
The study of operations management looks at the production of quality goods and service that aims to create efficient and effective business operations. Operation management attempts to ensure the efficient management of resources along with the distribution of goods and services and thereby enhances manufacturing performance to achieve optimum productivity with utmost utilization of resources. This discipline has proposed various techniques that include quality management (TQM), just in time (JIT) or Leaning manufacturing and a theoretical framework to achieve these goals. Other concepts in the field of operations management include six sigma and supply chain management. All these techniques require a flat organizational structure coupled with functional integration in the organization and which Toyota has already embraced by decentralizing its organizational structure. As the world outside is extremely competitive , the demand for improved product quality has led to numerous operations paradigms emerging/ the most significant ones include Just in Time, Total Quality Management (TQM) and Supply chain management (SCM). JIT seeks to eliminate waste and rescue setup times, it also controls the material flows and focuses on effective resource utilization. The TQM philosophy looks at developing a corporate culture that is customer focused empowers employees and seeks continuous improvement. The supply chain management integrates buyers and suppliers decision-making to improve the flow of materials in the supply chain.

Toyota Production System (TPS)

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