The Continuous
Improvement Academy
TOYOTA
PRODUCTION
SYSTEM
- Foundational Concepts -
Toyota’s TPS was established based on many years of
continuous improvements, with the objective of making the
vehicles ordered by customers in the quickest and most
efficient way, in order to deliver the vehicles as swiftly as
possible.
The Continuous
Improvement Academy
INTRODUCTION
Toyota has repeatedly outperformed its
competitors in quality, reliability,
productivity, cost reduction, sales and
market share growth, and market
capitalization.
Toyota has been so widely studied and
copied. However, so few companies been
able to match its performance.
Part of the problem is that most outsiders
have focused on Toyota’s tools and tactics
—Kanban, pull systems, cords, production
cells, and the like—and not on its basic set
of operating principles.
Source: Steven J. Spear, Learning to Lead at Toyota, HBR
The Continuous
Improvement Academy
INTRODUCTION
These principles lead to ongoing
improvements in reliability, flexibility,
safety, and efficiency, and, hence, market
share and profitability.
Toyota’s real achievement is not merely the
creation and use of the tools themselves; it
is in making all its work a series of nested,
ongoing experiments
Toyota Production System (TPS) is a system
of nested experiments through which
operations are constantly improved.
Source: Steven J. Spear, Learning to Lead at Toyota, HBR
The Continuous
Improvement Academy
INTRODUCTION
The Toyota Production System
(TPS), which is based on the
philosophy of the complete
elimination of all waste in
pursuit of the most efficient
methods, has roots tracing back
to Sakichi Toyoda's automatic
loom.
TPS has evolved through many
years of trial and error to
improve efficiency based on the
Just-in-Time concept developed
by Kiichiro Toyoda, the founder
(and second president) of
Toyota Motor Corporation.
Source: [Link]
The Continuous
Improvement Academy
INTRODUCTION
With strong backing from Eiji Toyoda, Taiichi Ohno
helped establish the Toyota Production System, and
built the foundation for the Toyota spirit of "making
things" by, for example, creating the basic framework
for the Just-in-Time method.
Source: [Link]
The Continuous
Improvement Academy
INTRODUCTION
The Toyota Production System empowers
team members to optimize quality by
constantly improving processes and
eliminating unnecessary waste in natural,
human and corporate resources.
TPS influences every aspect of Toyota’s
organization 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.
Source: [Link]
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Improvement Academy
TOYOTA PRODUCTION SYSTEM
The Continuous
Improvement Academy
TOYOTA PRODUCTION SYSTEM
- Foundational Concepts -
For the Toyota Production System to function,
some foundational capabilities must be
secured.
The three foundational concepts are Heijunka,
Kaizen and Standard Work
Source: [Link]
The Continuous
Improvement Academy
TOYOTA PRODUCTION SYSTEM
- Foundational Concepts -
1️⃣ Heijunka: Leveled out workload
“In general, when you try
to apply the TPS, the first
thing you have to do is to
even out or level the
production. “
—Fuji Cho, President of Toyota 1999-2005
Source: LIKER, JEFFREY K. TOYOTA WAY
The Continuous
Improvement Academy
TOYOTA PRODUCTION SYSTEM
- Foundational Concepts -
1️⃣ Heijunka: Leveled out workload
With heijunka a process is
designed to switch products
easily, producing what is
needed when it is needed,
and relying on production.
Any variations in volumes are
accommodated by
establishing a level-average
demand rate.
Source: LIKER, JEFFREY K. TOYOTA WAY
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Improvement Academy
TOYOTA PRODUCTION SYSTEM
- Foundational Concepts -
2️⃣ Kaizen: Change for the Better
A Japanese term meaning
"Change for the better" or
Continuous Improvement.
It implies improvement every
day, everywhere by everyone.
KAIZEN is much more than
just small, incremental
improvements.
Source: [Link]
The Continuous
Improvement Academy
TOYOTA PRODUCTION SYSTEM
- Foundational Concepts -
3️⃣ Standard Work
“If you do not understand
standard work, you do not
understand the Toyota
Production System”
Chihiro Nakao
The Continuous
Improvement Academy
TOYOTA PRODUCTION SYSTEM
- Foundational Concepts -
3️⃣ Standard Work
Standard work is a tool that
defines the interaction of
people and their environment
when processing a repetitive
product or service.
By detailing the one “best
way/process” we currently
know and understand.
Standard work has three
central elements: takt time;
standard work sequence;
standard work in process.
Source: DeLuzio, M. C. (2020). Flatlined
The Continuous
Improvement Academy
TOYOTA
PRODUCTION
SYSTEM
- JIDOKA -
Jidoka refers to the capability of humans or machines to
identify an anomaly in materials, machinery, or processes
and intervene to prevent the anomaly from propagating to
subsequent stages.
Source: TPS Basic Handbook, Art of Lean, Inc.
The Continuous
Improvement Academy
TOYOTA PRODUCTION SYSTEM
The Continuous
Improvement Academy
INTRODUCTION
Conventional methods involve inspecting
finished parts and products before
customer delivery.
Yet, the guarantee of defect-free items is
not absolute when relying solely on
inspector sampling.
Offline inspection by inspectors adds
minimal value, prompting the need to
innovate processes that reduce the
reliance on inspectors and emphasize
manufacturing products of superior
quality.
Essentially, the objective is to "build quality
into the product."
Source: TPS Basic Handbook, Art of Lean, Inc.
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Improvement Academy
JIDOKA ESSENTIALS
Building in Quality
This principle mandates that team
members diligently evaluate quality at
every work stage to prevent the
propagation of defects to subsequent
phases.
Each team member should
acknowledge that the downstream
process functions as a customer and
should never transfer a faulty product.
If equipment malfunctions, it should be
automatically detected and stopped to
prevent further issues. Mistake-proofing
devices are commonly employed for
this task.
Source: TPS Basic Handbook, Art of Lean, Inc.
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Improvement Academy
JIDOKA ESSENTIALS
Building in Quality
If a quality defect arises, we can identify
its root cause and implement corrective
measures to prevent its reoccurrence.
Source: TPS Basic Handbook, Art of Lean, Inc.
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Improvement Academy
JIDOKA ESSENTIALS
Inspection Work
Inspection work entails more than
simply assessing whether components
or completed products meet quality
standards.
Defects can be minimized by
thoroughly understanding root causes
and implementing targeted
countermeasures based on a
comprehensive analysis.
Therefore, the aim of inspection work is not
merely to identify defective products but to
eliminate the root causes of defects.
Source: TPS Basic Handbook, Art of Lean, Inc.
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Improvement Academy
JIDOKA ESSENTIALS
Repair Reduction
It is crucial to acknowledge that repair work
necessitates additional manpower, diminishes
added value rates, and elevates production
costs.
Therefore, activities of this nature should be
identified and prioritized for elimination.
Source: TPS Basic Handbook, Art of Lean, Inc.
The Continuous
Improvement Academy
JIDOKA ESSENTIALS
Human Work and Machine Work
Human work entails tasks that necessitate
team member engagement to be
accomplished. Examples include handling parts,
loading and unloading machinery, activating
machine cycles through palm buttons, and
executing manual operations.
In contrast, machine work denotes the
segment of tasks that machinery executes
automatically, independent of operator
intervention.
Source: TPS Basic Handbook, Art of Lean, Inc.
The Continuous
Improvement Academy
JIDOKA ESSENTIALS
Human Work and Machine Work
By employing "smart" machines
and equipment capable of
detecting, signaling, and
identifying anomalies, there is no
longer a necessity to allocate a
team member solely for
continuous process monitoring.
This segregation of human tasks
from machine operations
provides the agility required to
adapt to fluctuations in customer
requirements.
Source: TPS Basic Handbook, Art of Lean, Inc.
The Continuous
Improvement Academy
JIDOKA ESSENTIALS
Standardization
Consistency in methodology
plays a pivotal role in minimizing
process variations and enhancing
production efficiency within a
specified timeframe.
Within the production area, two
essential documents often
displayed are the Standardized
Work Chart and Quality Check
Sheets.
Source: TPS Basic Handbook, Art of Lean, Inc.
The Continuous
Improvement Academy
TOYOTA
PRODUCTION
SYSTEM
JIT
The Just-in-Time (JIT) philosophy emphasizes producing and
delivering essential parts precisely when needed, in the right
quantity, and with minimal resources.
Source: TPS Basic Handbook, Art of Lean, Inc.
The Continuous
Improvement Academy
TOYOTA PRODUCTION SYSTEM
The Continuous
Improvement Academy
INTRODUCTION
Producing and shipping parts upon customer
orders without inventory is ideal.
Eliminating all inventory and work-in-process
(WIP) is impossible in the practical sense.
Decreasing inventory and work-in-process
continuously enhances manufacturing
efficiency.
Excess stock hides production issues,
hindering a strong work environment.
JIT manufacturing helps identify opportunities
for perfecting processes rather than creating
space for inventories.
Source: TPS Basic Handbook, Art of Lean, Inc.
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Improvement Academy
JIT ESSENTIALS
Pull System
In traditional production systems,
components produced by a specific process,
according to the production schedule, are
sent to subsequent processes, even if they
are not immediately required there.
Process Process
A B
This is called a “push” system.
Source: TPS Basic Handbook, Art of Lean, Inc.
The Continuous
Improvement Academy
JIT ESSENTIALS
Pull System
The pull system prevents both underproduction
and overproduction by restricting production to
the parts required by the subsequent
downstream process.
Process Process
A B
When the demand for the downstream
process varies in quantity and timing, the
upstream process needs to adjust its output
accordingly to accommodate the
fluctuations.
Source: TPS Basic Handbook, Art of Lean, Inc.
The Continuous
Improvement Academy
JIT ESSENTIALS
Kanban
A kanban is a visual cue or signal used to
communicate instructions for withdrawing parts
or producing a specific product.
Withdrawal Kanban Instruction Kanban
allows items to be enables the production
retrieved from a of a particular product,
central market area or such as instructing to
stores. produce a specific
quantity of product B.
Source: TPS Basic Handbook, Art of Lean, Inc.
The Continuous
Improvement Academy
TOYOTA PRODUCTION
SYSTEM
Quality,
Cost &
Delivery
at the
Gemba
To establish a sustainable competitive edge,
focus on more than just unit cost; consider
the total cost, which encompasses quality,
cost, and delivery (QCD) interactions.
Source: Imai, M. (2012). Gemba kaizen.
The Continuous
Improvement Academy
TOYOTA PRODUCTION SYSTEM
The Continuous
Improvement Academy
Quality, Cost, and Celivery are not distinctly
separate subjects but rather
are closely interrelated.
Source: Imai, M. (2012). Gemba kaizen.
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Improvement Academy
QUALITY AT THE GEMBA
More Than Just a Result...
Quality, broadly speaking, refers
to the excellence of the
processes and the output that
results in top-notch products or
services.
According to this definition, quality permeates all
aspects of company operations, spanning the
stages of development, design, production, sales,
and service of products or services.
Source: Imai, M. (2012). Gemba kaizen.
The Continuous
Improvement Academy
QUALITY AT THE GEMBA
More Than Just a Result...
In order to reduce variability, management
must establish standards, build self-discipline
among employees to maintain standards.
Source: Imai, M. (2012). Gemba kaizen.
The Continuous
Improvement Academy
QUALITY AT THE GEMBA
More Than Just a Result...
Quality begins when everybody in the
organization commits to never sending
rejects or imperfect information to the
next process (their next customer!)
Such a state of mind is often referred to as, “Don’t accept defects,
don’t make defects, and don’t pass on defects.”
Source: Imai, M. (2012). Gemba kaizen.
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Improvement Academy
COST REDUCTION AT THE GEMBA
Cost Management ...
Cost management oversees the
processes of developing, producing,
and selling products or services of
good quality while striving to lower
costs or hold them to target levels.
Efforts to eliminate muda will reduce
the overall cost of operations.
Source: Imai, M. (2012). Gemba kaizen.
The Continuous
Improvement Academy
COST
💡
REDUCTION AT THE GEMBA
Cost Reduction Strategies ...
Improve
Quality
Improve
Productivity
Reduce
Inventory
Shorten Prod.
Lines
Reduce
Downtime
Reduce Space
Reduce Lead
Time
Source: Imai, M. (2012). Gemba kaizen.
The Continuous
Improvement Academy
COST REDUCTION AT THE GEMBA
kaizen and productivity
improvement must not
result in firing of
employees.
Source: Imai, M. (2012). Gemba kaizen.
The Continuous
Improvement Academy
DELIVERY AT THE GEMBA
Just in Time...
Delivery refers to the timely delivery
of the volume of products or services.
Source: Imai, M. (2012). Gemba kaizen.
The Continuous
Improvement Academy
DELIVERY AT THE GEMBA
Just in Time...
In JIT, every effort is made to
produce and deliver the
product just in time—that is, to
produce only as many as are
needed and only when
needed, thereby eliminating
the cost of excessive inventory.
Synchronizing the flow of goods and services using
JIT is a practical way to drastically cut costs for
companies that have never tried it before.
Source: Imai, M. (2012). Gemba kaizen.
The Continuous
Improvement Academy
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