TPS was developed by Toyota, particularly by Taiichi Ohno, Sakichi Toyoda, and Kiichiro Toyoda, and has become a global standard for manufacturing excellence.
Waste Elimination: Targeting the "seven wastes" (overproduction, waiting, transportation, processing, inventory, motion, and defects).
High Efficiency & Quality: Producing high-quality vehicles at the lowest possible cost.
Respect for People: Making work safer, less physically taxing, and empowering workers to stop the line to correct issues.
The TPS House (Toyota Production System House) is a visual diagram used to illustrate the core principles of lean manufacturing and the Toyota Production System. It uses the analogy of a house to show how different components work together to create a stable, efficient system.
The Roof: Goals
The roof represents the ultimate goal: providing the highest quality (Q) to the customer at the lowest cost (C) with the shortest lead time (T) through the elimination of waste.
The Pillars: Just-In-Time and Jidoka
These two "pillars" support the roof:
Just-in-Time (JIT): Producing only what is needed, when it is needed, and in the amount needed.
Jidoka (Autonomation): Building quality into the process by ensuring machines or operators stop immediately when a problem occurs, preventing defects from passing through.
The Foundation: Stability and Standardized Work
The house stands on a foundation of stability, which includes:
The TPS House (Toyota Production System House) is a visual diagram used to illustrate the core principles of lean manufacturing and the Toyota Production System. It uses the analogy of a house to show how different components work together to create a stable, efficient system.
In this classic text, Taiichi Ohno--inventor of the Toyota Production System and Lean manufacturing--shares the genius that sets him apart as one of the most disciplined and creative thinkers of our time. Combining his candid insights with a rigorous analysis of Toyota's attempts at Lean production, Ohno's book explains how Lean principles can improve any production endeavor. A historical and philosophical description of just-in-time and Lean manufacturing, this work is a must read for all students of human progress. On a more practical level, it continues to provide inspiration and instruction for those seeking to improve efficiency through the elimination of waste.
Multiple Shingo Award-winning management and operations expert Jeffrey K. Liker provides a deep dive into Toyota's world-changing processes, showing how you can learn from it to develop your own improvement program that fits your conditions. Thanks in large part to this book, managers across the globe are creating workforces and systems that produce the highest-quality products and services, establish and retain customer loyalty, and drive business profitability and sustainability.
Now, Liker has thoroughly updated his classic guide to include: completely revised data and updated information about Toyota's approach to competitiveness in the new world of mobility and smart technology; illustrative examples from manufacturing and service organizations that have learned and improved from the Toyota Way; a fresh approach to leadership models; the brain science and skills for learning to think scientifically; and how Toyota applies Hoshin Kanri, a planning process that aligns objectives at all levels and marries them to business strategy.
Until the early 1980s, Toyota met foreign demand by exporting CBU and CKD vehicles. But as the sudden increase in exports led to increased trade friction and as economic conditions grew more volatile, Toyota started full-scale efforts to produce its products overseas.
Sales overseas grew stagnant in the second half of the 1980s due to a sudden appreciation of the yen. By 2000, however, overseas production far exceeded CBU exports, and with the successful launch of a number of region-specific models, sales overseas expanded, hitting its peak at over 6.8 million units in 2007.
Impacted by the global recession that started to unfold in autumn 2008, sales in 2009 dropped by over 900,000 units from the previous year to a total of 5.6 million units. Still, overseas sales in 2009 accounted for more than 80% of Toyota's total sales, a significant increase from the 50% levels of the late 1980s