Toyota’s global sustainable competitive advantage is based on a corporate philosophy, an integrated socio-technical management system and practices known as the Toyota Production System (TPS).

 

 

 

TPS is a holistic approach to efficiency, generating sustainable profits, and satisfying the customer with the highest possible quality  at the lowest cost in the shortest lead-time, while developing the talents and skills of its workforce through rigorous improvement routines and problem-solving  disciplines.

  Just-in-Time (JIT) Seven Wastes Lean Manufacturing (or Lean Production) Toyota Production System (case study) Japanese-style Suggestion Systems Key Features of a Lean System Efficiency Improvement Toyota Production System (TPS) - Lean Manufacturing / Lean Production

 

 

The Essence of TPS

Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices.

As a management system, TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. The system depends in part on a human resources management policy that stimulates employee creativity and loyalty but also on a highly efficient network of suppliers and components manufacturers.

 

 

 

 

The Focus of TPS

Toyota Production System (TPS) is not just about “5Ss” or “pull production” or “flow”” or "load leveling". It is a holistic approach to efficiency, generating sustainable profits, and satisfying the customer with the highest possible quality  at the lowest cost in the shortest lead-time, while developing the talents and skills of its workforce through rigorous improvement routines and problem-solving  disciplines. This stated aim is mixed in with the twin production principles of Just in Time (make and deliver the right part, in the right amount, at the right time), and Jidoka (build in quality at the process), as well as the notion of continuous improvement by standardization and elimination of waste in all operations to improve quality, cost, productivity, lead-time, safety, morale and other metrics as needed.

 

 

 

 

Specific Factors Underlying Toyota's Success

Toyota corporate culture

Lean manufacturing system

An effective and efficient human resources management system, the cornerstone of which is a high level of employee loyalty and commitment to quality

A state-of-the-art assembly system incorporating the latest robotic technology

A well-coordinated network of world-class suppliers

A highly effective and efficient just-in-time (JIT) inventory system

 

 

 

 

Toyota Suggestion System: Typical Annual Results

More than 700,000 improvement suggestions were submitted by Toyota's employees.

That is an average of over 10 improvement suggestions per employee per year.

Over 99% of suggestions were implemented.