The document discusses the Toyota Production System (TPS) developed by Toyota to reduce costs and increase efficiency. It summarizes the key aspects of TPS, including just-in-time production, autonomation, continuous improvement, standardized work, and production leveling. TPS aims to eliminate waste and respond quickly to market changes through techniques like kanban signaling and minimizing inventory levels and changeover times. The document contrasts TPS with Ford's mass production system, noting TPS produces in smaller batches and prioritizes reducing setup times and responding flexibly to demand.

1. An Introduction
Toyota Production System – Beyond large scale production
by Taichii Ohno

2. Contents
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• Reason for Developing Toyota Production System (TPS)
• Reasons for TPS adopted by other companies
• Basics of Toyota Production System
• How Toyota implemented TPS?
• Benefits of TPS
• Influence of the founders of Toyota on TPS
• How TPS is different from Ford’s mass production?
• Why Ford’s mass production system was misunderstood by his
successors?

3. Reason for Developing TPS in Toyota
• To achieve cost reduction in a period of low growth
• The necessary to catch up with America
• The questioning of procuring unwanted inventory which occupied the
space and locked the valuable money
• The drive to reduce wastes in traditional mass production
• Necessary to avoid producing more at the end at the end of month
• The need of producing many models in small quantities. This was the
market requirement.
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4. Reasons for TPS adopted by other companies
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• Prior to the oil crisis whatever produced was sold
• Hence Japanese industry adopted exactly, America’s mass
production system involving producing larger quantity with little
variations
• Oil crisis created the need to move away from mass production.
During this period the profits declined in other companies, but
Toyota sustained higher earnings
• This created an interest in Toyota’s unique production system

5. Basics of Toyota Production System
• The major techniques of TPS are Waste reduction, Just in Time,
Autonomation and Production levelling
• TPS starts with viewing the work as :
– Present capacity= work +waste.
– In short, if wastes is reduced the efficiency increases
• The necessary to have intelligent machines created the idea of
Autonomation. In Autonomation, machine will stop if there is an
abnormality in the parts quality
• The availability of right material at right time in right quantity is
JIT. JIT can be achieved by using Kanban.
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6. Basics of Toyota Production System
• Kanban is basic operating method of TPS. In Kanban each
process is the customer of the prior process.
• The production levelling is the concept of producing two or
more varieties of products in same production line.
• The production levelling enabled to produce small lot sizes of
different products.
• This created the necessary to reduce the Set up Time between
the different models. Hence Single Minute of Exchange of Dies
was developed.
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7. How Toyota implemented TPS?
• TPS is built on the foundation of five why’s. By asking five why’s
we can find the real cause of the problem which is often hidden
• For each section Standard worksheets were developed. The
standard work sheet had cycle time, work sequence and
standard inventory
• Creating an environment, where team work is highly valued. If
person finds an issue in his work area, immediately he will be
helped by the other person in the group
• Creating a production process that could handle going back
process by process. This is essential for implementing Kanban.
• Creating the necessary to reduce the setup time by production
levelling
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8. How Toyota implemented TPS?
• Introducing carrying cart which also serves also as Kanban- A
carrying cart with a limited capacity is used to pick up the parts
between stations
• Communicating the daily production schedule only to the final
assembly line. The Kanban serves as the production schedule for
the rest of the previous stations till the beginning
• Applying the concept of Just in Time in information also. The
information on the product required will be sent to specific
station only when it is required
• Increasing the production rate by increasing the efficiency of
workers which involved waste reduction. Hence “worker saving”
can be done even before the necessary situations arises
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9. Benefits of TPS
• Kanban facilitates minor changes in the production schedule.
Hence the entire system, responds quickly for the market
changes.
• Everlasting effort to reduce waste and there by enhancing
productivity.
• Avoiding excess inventory which is the greatest waste of all.
• The production schedule is always built based on the required
numbers.
• TPS will help an organisation survive in period of low growth.
• Standard inventory helps to identify the hidden wastes in the
process.
• It helps to identify the original purpose of buying the advanced
machines. If productivity can be increased by rearranging the
work sequence then buying the advanced machine cannot be
justified.
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10. Influence of the founders of Toyota on TPS
• Toyoda Sakichi created Toyoda Spinning and weaving – The
parent company of Toyota.
• Toyoda Kiichiro started Toyota on the advice of Toyoda Sakichi
• The concept of 5 why’s and Autonomation was evolved from
Toyoda Sakichi.
• Just in Time was evolved from Toyoda Kiichiro
• Both these men had a burning desire to create indigenous
technology and to develop a Japanese style production
technique.
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11. How TPS is different from Ford’s mass
production?
Parameter Ford System Toyota Production
System
Batch size Usually Large Small
Setup time High as reducing it was
not necessary
Low – Reducing setup
time is a necessary
Production Levelling No Production levelling It is basis of TPS
Warehousing of parts It is the main in ford
system
The warehousing was
eliminated as there was
minimum inventory
Response to Market
changes
Slow as it is very difficult
to change schedule
It happens effortlessly
due to Kanban
Basis of efficiency Efficiency is the function
of Quantity and speed
Efficiency is ability to
respond quickly to the
needs of market
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12. Why Ford’s mass production system was
misunderstood by his successors?
• Ford had a great insight on Automobile business
• He introduced recycling from waste and stressed the
importance of having a standard. According to him “Standards
should be thought of not only as the production department’s
standards but also as the top management’s”
• Ford’s true intention has not been understood clearly
• The competition from other auto makers in America halted the
further development of Ford system
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13. For Further reading
• Toyota Production System – Beyond Large scale production
– By Taiichi Ohno
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