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Toyota Production System Case Study

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2.4 Toyota production system The key of Toyota’s success is attributed to the Toyota Production System (TPS), (Takeuchi et al. 2008, Liker 2003). It was developed by Taiichi Ohno in the 1960’s and 1970’s and consists of several elements, each of which is crucial to the structure of the entire system and crucial to the overall goal – Lean production. The TPS tends to be visualized as a house (figure 1) where each element plays an important role to the entire structure. This analogy was created to stress that TPS (Lean) can succeed only if applied as a system (Lander and Liker 2007, Liker 2003).
The overall goal of TPS, as visualized by the roof in Figure 1, is to produce quality products at the lowest costs and with short lead time. Toyota …show more content…

High employee morale is important to create a positive working environment, which helps achieve the company’s goals (Liker 2003). The roof of the TPS house is held by two main pillars: “just-in-time” on one side and “autonomation”, or “…Automation with a human touch… (Ohno 1988, p.6)” on the other side. Autonomation is also referred to as “jidoka” (Liker 2003). “Just-in-time” production means that only the parts in the quantity needed at a given time are processed, thereby reducing inventory to the minimum. Zero inventories is the theoretical goal, thus completely eliminate inventory costs. However, zero inventory is …show more content…

Taiichi Ohno (1988) uses the example of sport teams to explain the importance of teamwork in a company: A soccer team may have excellent individual players, but without teamwork this team does not necessarily win (Ohno 1988). Furthermore, the reduction of waste, such as, for example, the reduction of inventory or the elimination of defective parts produced is essential to identify and solve problems in the system immediately (Liker 2003). This approach requires a high level of process stability so that processes do not stop constantly. Stability is established through continuous improvement, an activity that is performed by everybody working for the company or supplying to the

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