How Toyota Become the World's Best Manufacturer: The story of Toyoda Family and the Toyota Production System Chapter 2 The Toyota Way: Chapter2 1
The Toyota Way: Chapter2 1
How Toyota Become the World's Best Manufacturer: The story of Toyoda Family and the Toyota Production System
Chapter 2
The Toyota Way: Chapter2 2
The Toyota Way: Chapter2 3
Kiichiro Toyoda
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The Toyoda Family Generation of Consistent leader • Toyoda learned carpentry with father• In 1894 he make loom that were cheaper but
worked better than existing loom
• First develop • Why there have no power to run the loom ? • Steam engine
In 1926 Start Toyoda Automatic loom workIn 1987 Stop a loom whenever a thread broke
I plan to cut down on the slack time within work processes and in the shipping of parts and materials as much as possible. As the basic principle in realizing this plan, I will uphold the "just in time" approach. The guiding rule is not to have goods shipped too early or too late."1 —Kiichiro Toyoda, founder of Toyota Motor Company, 1938
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1.Automation with human touchJidoka ?
Toyota Production System (TPS)
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2. Building in quality as you product the material or “ mistake proofing “
“ Value Added Work”
Toyota Production System (TPS)
The Toyota Way: Chapter2 8
The Toyota Way: Chapter2 9
The Toyota Automotive Company
1929
Sold the patent rights of Toyoda Automatic Loom to “Platt Brother”.
Mr. Sakichi Toyoda
Mr. Kiichiro Toyoda
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The Toyota Automotive Company
1929
Sold the patent rights of Toyoda Automatic Loom to “Platt Brother”.
1930
The beginning of “Toyota Motor Corporation”.
Power Loom: Yesterday’s Technology
Automotive: Tomorrow’s Technology
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The Toyota Automotive Company
1929 Sold the patent rights of Toyoda Automatic Loom to “Platt Brother”.
1930 The beginning of “Toyota Motor Corporation”.
1937
-1945
“World War II”; Japan lost,Toyota start building trucks to rebuild Japan.
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The Toyota Automotive Company
1929 Sold the patent rights of Toyoda Automatic Loom to “Platt Brother”.
1930 The beginning of “Toyota Motor Corporation”.
1937
-1945
“World War II”; Japan lostToyota started building trucks to rebuild Japan.
1948 The post-war: rampant inflationToyota adopted “strict cost-cutting policies”• Cut in pay for all employees• Voluntarily retire 1,600 workers
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The Toyota Automotive Company
Mr. Eiji ToyodaOne of Toyoda Family Leaders to shape Toyota
The Next President and Chairman (1967)
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Philosophies of Toyoda Family
• Learn to get your hands dirty
• Learn the spirit of innovation
• Understand the values of company in contributing to society
• Have the vision of creating the special company in future
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The Development of the Toyota Production System
(TPS)
• 1930s visited Ford and GM Mass Production System – Ford
Model T
• After 1950 WWII, Toyoda aimed to improve manufacturing process.
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The Development of the Toyota Production System
(TPS)
Excess of supply and inventory Wasteful cost and man power to control
excess inventory and production process
Ford Toyota
Production capability 9,000 units/mth
900 units/mth
Capital and Resource High Low
Market size Large Small
Customer demand Large Small
Inventory storage cost High Low
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One-Piece Flow
• One-Piece Flow is fundamental process of one unit in assembly line with efficient that flexibly changed according to customer demand • Continuous material flow• Standardizing process• Eliminate waste
• Improving Toyota’s manufacturing process High quality Low cost Short lead times Flexibility
One-Piece Flow
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Creating the Manufacturing System That Changed the World
• 1930s Taiichi Ohno return to work on the shop work.
Decades of practice, he had come up with “The New Toyota Production System”.
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The New Toyota Production System
• Pull System
“ Overproduction happens all the time in mass production”
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The New Toyota Production System
• Deming’s principle
“The next process is the customer”
Atokotei wa o-kyakusama• Deming Cycle or Plan-Do-Check-Act (PDCA)
• Kaizen : Continuous improvement
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Toyata way : The Machine That Changed the World• After WWII, focused on cost, cost,
cost “Economics of scale”
• 1980s, focusing on quality actually reduced cost more than focusing only on cost.
• Finally 1990s, MIT’s Auto Industry Program “lean production”- shortening lead time by eliminating waste in each step of process leads to best quality and lowest cost, while improving safety and morale.