Toyota's Lean Manufacturing Process

William J. Stevenson, in Production/Operations Management, defines the term just-in-time manufacturing as “a repetitive production system in which processing and movement of material and goods occurs just as they are needed,usually in small batches” (Stevenson, 1996). However, just-in-time (JIT) is more than an inventory system. JIT manufacturing is a philosophy by which an organization seeks continually to improve its products and processes by eliminating waste (Ptak, 1997)

Toyota uses processes that are both implicit and explicit. Toyota’s operations are enormously flexible and responsive to customer demand. According to ASHP Foundation (2007). Many credit Toyota’s success to aspects of the Toyota Production System, established by Taïchi Ohno and Shigeo Shingo from the late 1950s through 1970 (when it gained the name). It includes aspects of Jidoka, just-in-time production, and kaizen, reducing both inventories and defects. The system is used worldwide, but is only one of the reasons for Toyota’s success. The very rigidity of the operations that makes the flexibility possible. That’s because the company’s operations can be seen as a continuous series of controlled tests.

The main aspect of Toyota Company’s value chain analysis is the inbound logistics. Inbound logistics use JIT (Just-in-Time) system of production as it decreases the inventory cost. JIT helps Toyota to optimize their assembling and production process as well as to minimize parts going to waste or getting unused as inventory. Inbound logistics are the goods that the company receives from its suppliers and store for some period of time until the moment when they will be used in the production process. Toyota company does not have and is not able to create own raw materials that are needed for assembling of cars, thus it has to collaborate with a third party.

Just in Time (JIT) is an approach of continuous and forced problem solving via a focus on throughput and reduced inventory. The Toyota Production System TPS. With its emphasis on continuous improvement, respect for people, and standard work practices. Is particularly suited for assembly lines. Learn operation supplies the customer with exactly what the customer want’s when the customer wants it. Without waste, through continuous improvement. Lean operation are driven by workflow initiated by the ‘pull” of the customer’s order. When implemented as a comprehensive manufacturing strategy. JIT, TPS and lean system sustain competitive advantages and result in increased overall return. If there is any distinction between JIT, TPS and lean operation, it if that

Amongst which, “jidoka” uses automation to immediately pause machinery which has problems. This stops defective products from being made and thus reduces wastage. As such, only products meeting their strict quality standards will continue onto the next stop on the production line.

In 1950, Toyota Motor Corporation had a difficulty to predict the size of their warehouse in order to store their finish products and parts. They have to use large warehouse to store the vehicles before shipping them to customers. It resulted in expensive inventory cost and waste associated with keeping dead stock. This becomes the main reason for Toyota to implement JIT and Toyota Production System (TPS) in their business operation.

. Toyota practices JIT (Just In Time) system or their “Lean Manufacturing System”. This is to maintain the production of their vehicles to be quick and efficient.

to meet the expectation of the customers around the World and to be the role model for within the industry as well as community (Global, 2010). The Toyota has four basic aims including: 1. To provide World class quality and services (Global, 2010). 2. Develop the employee’s potential based on mutual respect, trust and cooperation (Global, 2010). 3. Reduce cost through deduction of waste and maximize profit (Global, 2010). 4. Develop flexible standard based on market needs (Global, 2010). The following are the manufacturing principles implemented by Toyota: Just-in-time The Toyota production system meets the customer demand professionally and without delay by linking all production activities to real market place and demand. Just in time production

Lean manufacturing originated long before Toyota and Ford, however the thought that it originated with Toyota is flattering since they are the ones who perfected it. By creating the Toyota Production System (TPS), Toyota found a better way to produce large quantities of product efficiently with eliminating the waste factor and while cutting down cost. Taiichi Ohno a former Toyota vice president promoted the idea of JIT (Just-in-Time) which means “producing the necessary units in the necessary quantities at the necessary time.” (Monden) Which leads to Toyota’s ultimate goal in the TPS is to improve productivity for better return in investment. To have continuous flow in a production system Toyota sought out to achieve the concept of JIT and autonomation . Since the TPS is what creates the parts who monitors the JIT system? The kanban system which is an informational system that controls quantities being produce in each process. As the discussion carries on throughout this paper about Toyota and their use of the kanban system the topic

SUGIMORI Y., KUSUNOKI K., CHO F. & UCHIKAWA S. (1977) “Toyota production system and Kanban system Materialization of just-in-time and

Lean manufacturing is not just a production method. It is a way of life. One could say that it is simply a way of providing customers what they want, at a price they can afford, when they want it (Leaning Forward). However, it is much more than just satisfying the customer’s needs.

In the 1950’s Toyota introduced the concept zero inventories. Today known as Just in Time, it is a lean concept used in manufacturing. Lean thinking is a systematic approach that maximizes value and minimizes waste. It is a method that strives improves processes through continuous improvement and elimination of waste. Just in Time is a part of lean thinking, and it looks at how production is organized and reviews company inventory process (Liker 2004). Lean thinking provides a method to specify value and line up activities that create value. Essentially, lean provides a means of doing more with less human effort, less equipment, less time and less space while providing the customer with exactly what they want (Jones 2003).

Toyota 's Production System (TPS) is based upon “lean” principles that includes focusing on the customer, constant and recurrent improvement, and superiority through waste reduction, and combined upward and downward developments as part of a lean. “TPS is the foundation for what has become a global movement to “think lean”. Most manufacturing companies in the world have adopted some type of “lean initiative,” and this concept is now spreading to a diverse range of organizations, including the defense department, hospitals, financial institutions, and construction companies” (Liker & Morgan, 2006). Unlike like TPS, Lean is a business improvement idea that focuses on the true needs of the customer to help the business prevent waste from being built into the system. This paper will compare and contrast the concept of Lean and TPS used by Toyota.

It might not be universally known but Toyota Motor Inc. pioneered the “Just in Time” approach to production. In a nutshell, “Just in Time” is an approach where a corporation depends on the natural flow of supply and demand to determine inventory level. The core principle of this approach is to receive supplies and goods as they are needed thus reducing inventory costs. Toyota depends on its accurate forecasts and ability to make decisions real time during production to make “Just in Time” approach be beneficial to both company efficiency and cost management.

Just-in-time is a concept developed by Toyota and introduced during the 1950s and 1960s that has the characteristics of a pull system, meaning required inventory is only produced or used when demand is “pulling” to do so. After the inventory is used up, only what is needed to replace what has been used is manufactured. Because goods are only produced to keep up with demand, there is minimal inventory which can cause a reduction in overhead and an increase in responsiveness. JIT systems are based on the pull concept rather than the push concept, where products are manufactured in advance in anticipation that there will be a consumer demand (Collier 379). Many companies are motivated to implement just-in-time, or JIT, systems because it avoids time, cost, overhead and forecasting that is associated with keeping inventory on hand much like a push system (Kokemuller).