Lessons from Leading Firms




VadiK teachings Vadim Kotelnikov

Toyota Production System

Vadim Kotelnikov, founder of 1000ventures - personal logo VadiK

Inventor Business e-Coach

Author Innoball

Founder Innompic Games icon



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).

  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 The Toyota Way 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.


Competitive Advantage of Japanese Firms

Kaizen Mindset

Best Practices

The Toyota Way: 14 Principles

7 Principles of TPS

Lean Manufacturing

Key Features




The Focus of TPS

Toyota Production System (TPS) is not just about “5Ss” or “pull production” or “flow”” or "load leveling".





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.




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.


3 Broad Types of Waste

 7 Wastes

Toyota Problem Solving Techniques

5-Why Process




Specific Factors Underlying Toyota's Success

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 Corporate Culture


Continuous Improvement Mindset

Japanese Suggestion 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.