1. The machine that changed the world.
~ A group 6 initiative
The Toyota production system has revolutionized industry.
People believe it can transform the World ………….

2. The Inception
1890 – Sakichi Toyoda - genchi genbutsu /jidoka.
1920 - Kiichiro Toyoda – Just in time.
“Everyone should tackle some great project at least
once in their life. ... should make an effort to
complete something that will benefit society.”

3. Pioneering TPS ……
Eiji Toyoda Taiichi Onho
“Out of the rubble of WWII ... ‘with a creative spirit and
courage’ [Ohno] solved problem after problem and evolved
a new production system. ... This same process has been
played out time and again throughout the history of
Toyota.”

5. Philosophy
• Principle 1: Base management decisions on a long-
term philosophy, even at the expense of short-term
financial goals.
“to be the most respected and admired
company.”

6. • Have a sense of purpose that supercedes any short term
decision making. Work, grow, align the organization toward a
purpose greater than “making money.” Understand your place
in the history of the company and work to bring the company
to the next level.
• Generate value for the customer, society and the economy.
Evaluate every function in the company in terms of its ability
to achieve this.
• Be responsible. Strive to decide your own fate. Act with self
reliance and trust in your own abilities. Accept responsibility
for your conduct and maintain and improve the skills that
enable you to produce added value.

7. Process

8. Principle 2: Create continuous process flow to
bring problems to the surface
• Redesign processes to achieve high value added, continuous flow.
• Create flow to move material and information fast as well as to link
processes and people together so that problems surface right away.
• Make flow evident throughout your organizational culture.

9. Principle 3: Use “pull” systems to avoid
overproduction
• Provide your downstream customers in the process with what
they want, when they want it, and in the amount that they want.
– Toyota studied US supermarkets in the 50’s
• Pull vs Push (Production Schedule)
– Material replenishment initiated by consumption is the basis
for just-in-time.
– Just-in Time - an organized system of inventory buffers.
– Examples- filling your gas tank, office supplies.
– Kanban -
sign, signboard, doorplate, poster, billboard, card…signal
• Scheduling still happens, but keep it short (days vs months).

11. Principle 4: Level out workload (heijunka)
• Eliminating Muda is just one third of the equation for making lean
successful. Eliminating Muri and eliminating Mura in production are
just as important.
• Muda (waste)
– Transportation, Inventory,Movement
Waiting, Overproduction, Overprocessing, Defects + Unused
employee abilities.
• Muri (overwork), Mura (inconsistency),Heijunka (evenness)
• AAABBBCCC to ABCABCABC

12. Principle 5: Build a culture of stopping to fix
problems, to get quality right the first time
• Quality at the source
– Jidoka – autonomation
– Andon – signal for help
• Yellow, then red
• Team leader fix, figure, pull
• Segmented assembly line with buffer inventory
– Poke yoke – “get rid of mistakes” mistake avoidance (example-cotter
pin/light curtain) (avoid easy mistakes)
• Administrative approaches –standardized work and checklists
(pilots) (engineering forced to consider alternatives)
• Toyota’s quality process
1. Go and see
2. Understand the situation
3. One piece flow or andon
4. Ask why 5 times

13. Principle 6: Standardized tasks are the foundation
for continuous improvement and employee
empowerment
• Standardized work is not the end result, the “one best way,” it is the
beginning of improvement.
• Use stable, repeatable methods everywhere to maintain the
predictability, timing, and regular output of your processes. (This also helps
to manage them). It is the foundation of flow and pull.
• Standardized work consists of three elements-
– Takt time
– Sequence of the process
– Amount of stock on hand
• Capture the accumulated learning about a process by standardizing the
current best practices. Allow creative and individual expression to improve
upon the standard; then incorporate it into the new standard.

14. Principle 7: Use visual control so no problems
are hidden
At Toyota, visual control refers to the design
of JIT information of all kinds, integrated into
the process of value-added work, to ensure
fast and proper execution of operations and
processes.
Its well-developed visual control system (which
includes such lean production tools as kanban
and andon) increases productivity, reduces
defects and mistakes, helps meet
deadlines, facilitates communication, improves
safety, lowers costs, and generally gives workers
more control over their environment.

15. Principle 8: Use only reliable thoroughly
tested technology that serves your
people and processes
• Use technology to support people, not to replace people.
• Conduct actual tests before adopting new technology in
business processes, manufacturing systems, or products.
• Reject technologies that conflict with your culture or that might
disrupt stability, reliability, and predictability.
• Encourage your people to consider new technologies when
looking into new approaches to work. Quickly implement a
thoroughly considered technology if it has been proven in trials
and it can improve the flow of your processes.

16. People/Partners

17. Principle 9: Grow leaders who thoroughly
understand the work, live the
philosophy, and teach it to others
• Grow leaders from within rather than buying them from outside.
(This is an example of applying Heijunka)…or constancy of purpose.
• Leaders must be role models of the company’s philosophy and way
of doing business.
• A good leader must understand the daily work in great detail so they
can be the best teacher of your company’s philosophy.
• “Before we make cars (monozukuri), we make people (hito-zukuri).”

18. Principle 10: Develop exceptional people and teams
who follow your company’s philosophy
• Create a strong, stable culture in which company values and
beliefs are widely shared and lived out over a period of many
years.
– Respect for Humanity system
– Uses both intrinsic and extrinsic approaches to motivation
• Train exceptional individuals and teams to work within the
corporate philosophy to achieve exceptional results.
– Balance between teamwork and excellent individual work
• Use cross functional teams to improve quality and productivity
and enhance flow by solving problems.
• Make an ongoing effort to teach individuals how to work together
as team toward common goals. Teamwork is something that
has to be learned.

19. Principle 11: Respect you extended network of
partners and suppliers by challenging
them improve
• Have respect for your partners and suppliers and treat
them as an extension of your company.
• Challenge your partners to grow and develop. It shows
that you value them. Set challenging targets and assist
your partners in achieving them.

20. Supplier’s philosophy must fit with Toyota’s

21. Problem solving

22. Principle 12: Go and see for yourself to
thoroughly understand the situation
• Genchi (actual location) genbutsu (actual material or product)…also known as
going to the gemba.
• Example-Siena chief engineer drives in 50 states, 13 provinces and territories
and Mexico
– Improvements include turning radius, wind stability, drift, cup holders and trays
• “Common sense will tell you the answer, but collecting data (and then
understanding the facts) will tell you whether your common sense was correct.”
• The Ohno circle – He asked an engineer to stand and observe an operation…for
8 hours!
• Hourensou- to report, to update periodically, to consult or advise
– Genchi genbutsu for executives (coordinated reporting)

23. Principle 13: Make decisions slowly by
consensus, thoroughly considering all
options; implement decisions rapidly
• Given a year to implement a project…
– Western – typically 3 months planning, 9 months implementing and correcting
– Toyota – typically 10 months planning, pilot, implement flawlessly
• Toyota decision making
1. Find out what is really going on, including genchi genbutsu
2. Understanding underlying causes that explain surface appearances – asking
“Why?” five times
3. Broadly considering alternative solutions and developing a detailed rationale
for the preferred solution.
– What alternatives have you considered?
– How does this solution compare with those alternatives?
4. Building consensus within the team, including employees and outside
partners.
– Nemawashi –the process of discussing problems and potential solutions with
all those affected, to collect their ideas and get agreement on a path forward.
e.g. tollgate review
5. Using very efficient communication vehicles to do 1-4, preferably one side of
one page (e.g. one page 7 step storyboards)

24. Principle 14: Become a learning organization
through relentless reflection (hansei) and
continuous improvement (kaizen)
“Many people are surprised when I give talks
and tell them that Toyota doesn’t have a Six
Sigma program. Six Sigma is based on
complex statistical analysis tools. People want
to know how Toyota achieves such high levels
of quality without the quality tools of Six
Sigma. You can find an example of every Six
Sigma tool in use somewhere in Toyota at
some time. Yet most problems do not call for
complex statistical analysis, but instead
require painstaking, detailed problem solving.
This requires a level of detailed thinking and
analysis that is all too absent from most
companies in day-to-day activity. It is a matter
of discipline, attitude, and culture.”
~Jeffrey Liker

25. To conclude ……..
Everyone in the auto industry is familiar with Toyota’s dramatic business success and, of course,
consumers are demonstrably aware of the company’s world-renowned quality. In fact, Toyota has
done so well that, as Liker points out, many consider the company to be “boring.” For, after all,
steadily growing sales, consistent profitability, huge cash reserves, operational efficiency (combined
with constant innovation—not an easy complement to pull off), and top quality, year after year, are
not the stuff of breaking news. But, despite this reputation as the best manufacturer in the world,
and despite the huge influence of the lean movement, most attempts to emulate and implement lean
production have been fairly superficial, with less than stellar results over the long term. “Dabbling at
one level—the ‘Process’ level,” U.S. companies have embraced lean tools, but do not understand what
makes them work together in a system.

26. CREDITS
• Prateek bhardwaj – 31
• Esha Sharm – 32
• Pratik laddha -33
• Prerna Gupta – 34
• Prithvi Ghag - 35