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    A Profile of Toyota's Production System

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    Zhen Wu
    Toyota's business model is the Toyota Production System (TPS), which minimizes inventory, involves employees in managing their jobs, and allows for flexible production of multiple products. The TPS affects automobile manufacturers, suppliers, and customers. It utilizes just-in-time production to manufacture only what is needed, when it is needed, in the necessary quantities while keeping stock levels low. Employees are empowered to stop production lines if needed. Kaizen is also key to the TPS - it refers to continual small improvements suggested by employees at all levels. Implementing the TPS well helped Toyota become the largest automaker by emphasizing clear work specifications, direct supplier relationships, simple production pathways, and scientific improvements led by teachers

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    A Profile of Toyota's Production System

    Uploaded by

    Zhen Wu
    143 views1 page
    Toyota's business model is the Toyota Production System (TPS), which minimizes inventory, involves employees in managing their jobs, and allows for flexible production of multiple products. The TPS affects automobile manufacturers, suppliers, and customers. It utilizes just-in-time production to manufacture only what is needed, when it is needed, in the necessary quantities while keeping stock levels low. Employees are empowered to stop production lines if needed. Kaizen is also key to the TPS - it refers to continual small improvements suggested by employees at all levels. Implementing the TPS well helped Toyota become the largest automaker by emphasizing clear work specifications, direct supplier relationships, simple production pathways, and scientific improvements led by teachers

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    Toyota's business model is the Toyota Production System (TPS), which minimizes inventory, involves employees in managing their jobs, and allows for flexible production of multiple products. The TPS affects automobile manufacturers, suppliers, and customers. It utilizes just-in-time production to manufacture only what is needed, when it is needed, in the necessary quantities while keeping stock levels low. Employees are empowered to stop production lines if needed. Kaizen is also key to the TPS - it refers to continual small improvements suggested by employees at all levels. Implementing the TPS well helped Toyota become the largest automaker by emphasizing clear work specifications, direct supplier relationships, simple production pathways, and scientific improvements led by teachers

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    143 views1 page

    A Profile of Toyota's Production System

    Uploaded by

    Zhen Wu
    Toyota's business model is the Toyota Production System (TPS), which minimizes inventory, involves employees in managing their jobs, and allows for flexible production of multiple products. The TPS affects automobile manufacturers, suppliers, and customers. It utilizes just-in-time production to manufacture only what is needed, when it is needed, in the necessary quantities while keeping stock levels low. Employees are empowered to stop production lines if needed. Kaizen is also key to the TPS - it refers to continual small improvements suggested by employees at all levels. Implementing the TPS well helped Toyota become the largest automaker by emphasizing clear work specifications, direct supplier relationships, simple production pathways, and scientific improvements led by teachers

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    What is Toyota's business model?

    Toyota’s business model is the Toyota Production System. Toyota improved the company’s
    logistics and production processes, especially in minimizing inventory, involving employees in the
    process of managing their jobs, and defining the manufacturing process so that it could handle
    multiple products easily.

    Who is involved in the TPS, and how are they affected by it?
    Automobile manufacturers, suppliers and customers are involved in the TPS. Automotive
    manufacturing needs to follow the “just-in-time production”, which means only the necessary
    products, at the necessary time, in the necessary quantity are manufactured, and in addition, the
    stock on hand is held to a minimum. Setup times are reduced for equipment and people.
    Employees are involved and empowered. Any workers can stop the entire line if necessary.
    Machine operators are trained to also do basic maintenance since they can see the problem
    before anyone else. Suppliers are partners, and are integral parts of the overall production
    process.

    What is kaizen, and what does it have to do with TPS?


    Kaizen is one of the two practices closely associated with TPS. It’s Japaneses for “good change”.
    Kaizen refers to activities that continually improve all functions of a business, from manufacturing
    to management and from the CEO to the assembly line workers. It’s pervasive in any TPS
    organization. It is like an operation method that everyone is encouraged to come up with small
    improvement suggestions on a regular basis.

    What does this production system do for Toyota?


    For companies attempting to copy the TPS, what does it take to do it well?
    It helped Toyota grow to a market capitalization of $138 billion by early 2010, number 10 on the
    Fortune Global 500. It helped Toyota become the largest car company in the world, having
    produced 8.9 million vehicles worldwide in 2008. It is an integrated socio-technical system that
    comprises Toyota’s management philosophy and practices.
    For companies attempting to copy the TPS, they have to implement four rules, or the TPS
    implementation can fail even if the TPS implementation is handled well. One is that all work shall
    be highly specified as to content, sequence, timing and outcome. Second, Every customer-
    supplier connection must be direct, and there must be an unambiguous yes-or-no way to send
    requests and receive responses. Third, the pathway for every product and service must be simple
    and direct. Last but not least, any improvement must be made in accordance with the scientific
    method, under the guidance of a teacher, at the lowest possible level in the organization.

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