Toyota's Production System ( Tps )

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Toyota Production System As part of Toyota Global, Toyota Australia inherited legendary Toyota Production System (TPS). TPS was created by the founder of Toyota Motor Corporation as ‘a set of principles that have been proven in day-to-day practice over many years’ (Toyota Australia n.d.) TPS has three desired outcomes: • To provide the customer with the highest quality vehicles, at lowest possible cost, in a timely manner with the shortest possible lead times. • To provide members with work satisfaction, job security and fair treatment. • It gives the company flexibility to respond to the market, achieve profit through cost reduction activities and long-term prosperity. (Toyota Australia n.d.) TPS consists of Kaizen, Just In Time (JIT), and Jidoka. Kaizen means never stop improving. Toyota encourages its employees to not only follow the rules, but also improve the rules to achieve highest productivity. Just In Time means to produce necessary units in the necessary quantities at the necessary time. Jidoka means automation with a human touch (Toyota Australia n.d.). Toyota Australia utilises its manufacturing plant in Althona, Victoria to produce cars in five departments. Firstly, powertrain department produces engine components. Once the engine is finished, it is sent directly to assembly department. Secondly, Press plant manufactures steel panels such as side panels, roof panels and bottom panels using press machine. Thirdly, welding shop department fastens and welds

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