Toyota Way

The Toyota Production System
High Quality and Low Cost
COST VS
DEFECTS

R e a d in g s ;
J a m e s W o m a c k , D a n ie l T . J o n e s a n d D a n ie l R o o s ,
T h e M a c h in e th a t C h a n g e d th e W o r ld , 1 9 9 0 , C h 3 a n d 4
K e n n e th N . M c K a y , “ T h e E v o lu tio n o f M a n u f a c tu r in g C o n tr o lWhat Has Been, What Will Be” Working Paper 03 –2001
Mi c h a e l M c C o b y , “ I s T h e r e a B e s t W a y t o B u i l d a C a r ?”
H B R N o v -D ec 1 9 9 7

Consumer Reports

Gains of imports

The Toyota Production System
 H i s to r i c a l V i e w

 erformance measures
P
 lements of TPS
E
 D i ffi c u l ti e s w i th Im p l e m e n ta ti o n

  i x E r a s o f M a n u fa c tu r i n g P r a c ti c e
S

ThreeMajor Mfg Systems
from 1800 to 2000

Machine tools, specialized machine tools, Taylorism, SPC, CNC, CAD/CAM

1800
Interchangeable
Parts at U.S.
Armories

1900
Mass
Production
at Ford

2000
Toyota
Production
System

Key Elements for New Mfg Systems
E le m e n t/
S y s te m

Need of
S o c ie ty

Resources

W o rk
F o rc e
M o tiv a tio n

E n a b lin g
T e c h n olo g y

Leader

In te r c h a n g e - M ilita r y
a b le P a r ts

“ Y ankee
Ingenuity”

M a c h in e
T o o ls ,
D iv is io n o f
Labor

R o s w e ll U .S .
Lee/
G ovt
John
H a ll

M ass
P r o d u c tio n

T ra n s p o r ta tio n

$ 5 /d a y
Im m ig r a n t

M o v in g
A s s e m b ly
L in e ,e tc

H e n ry
F o rd

E a rn in g s

T o y o ta
P r o d u c tio nS y s te m

P ost W ar Jobs,
S e c u r ity

CNC,
In te g r a tio n
of Labor

T a iic h i
Ohno

Japanese
B anks

Q. By what method did these
new systems come about?
A . T ria l a n d E rro r

History of the Development of the Toyota
Production System
r e f; T a iic h i O h n o
1945

1975

The Toyota Production System
 H i s to r i c a l V i e w

 erformancemeasures
P
 lements of TPS
E
 D i ffi c u l ti e s w i th Im p l e m e n ta ti o n

  i x E r a s o f M a n u fa c tu r i n g P r a c ti c e
S

S u m m a r y o f A s s e m b ly P la n t C h a r a c te r is tic s , V o lu m e P r o d u c e r s ,
1989
( A v e r a g e fo r P la n ts in E a c h R e g io n )
Japanese
in
Performance:
Producvitity (hours/Veh.)
Quality (assemblydefects/100 vehicles)
Layout:
Space (sq.ft./vehicle/yr)
Size of Repair Area (as %
of assembly space)
Inventories(days for 8
sample parts)
Work Force:
% of Work Force in Teams
Job Rotation (0 = none,
4 = frequent)
Suggestions/Employee
Number of Job Classes
Training of New Production
Workers (hours)
Absenteeism
Automation:
Welding (% of direct steps)
Painting(% of direct steps)Assembly(% of direct steps)

Japan

Japanese
North

in

America

American in
North

All

Europe

America

16.8

21.2

25.1

36.2

60

65

82.3

97

5.7

9.1

7.8

7.8

4.1

4.9

12.9

14.4

0.2

1.6

2.9

2

69.3

71.3

17.3

0.6

3
61.6
11.9

2.7
1.4
8.7

0.9
0.4
67.1

1.9
0.4
14.8

380.3
5

370
4.8

46.4
11.7173.3
12.1

86.2
54.6
1.7

85
40.7
1.1

76.2
33.6
1.2

76.6
38.2
3.1

Source: IMVP World Assembly Plant Survey, 1989, and J. D. Power Initial Quality Survery, 1989

Cost Vs Defects
R e f. “ M a c h in e th a t C h a n g e d th e W o r ld ” W o m a c k , J o n e s a n d R o o s

Cost Vs Automation
Ref. “Machine that Changed the World” Womack, Jones and Roos

The ToyotaProduction System
 H i s to r i c a l V i e w

 erformance measures
P
 lements of TPS
E
 D i ffi c u l ti e s w i th Im p l e m e n ta ti o n

  i x E r a s o f M a n u fa c tu r i n g P r a c ti c e
S

How do you get this kind of
performance?
 W om ack, Jones and R oos

 T. Black’s 10 Steps
J
 emand Flow Technology’s 9 Points
D

W om ack J ones a nd R oos...