TOYOTA as TOYOTA as NUMBER NUMBER ONEONE

What company is the world’s largest What company is the world’s largest

automaker?automaker?

Since April 2007,TOYOTASince April 2007,TOYOTA..

The company is also the world’s best The company is also the world’s best automaker.automaker.

Quality and reliabilityQuality and reliability

Customer loyaltyCustomer loyalty

Gaining the time Gaining the time

The vaunted production system of Toyoto(TPS) The vaunted production system of Toyoto(TPS) with quality and efficiency.with quality and efficiency.

Lean manufacturingLean manufacturingBusiness processes and information system Business processes and information system

based on the principles of:based on the principles of: Just in timeJust in time QualityQuality Continuous improvement Continuous improvement Creating customer valueCreating customer value

Culture of Toyota’s TPSCulture of Toyota’s TPS

To do away with wasteTo do away with waste

Manufacture product without maintaining an Manufacture product without maintaining an inventoryinventory

To improve productionTo improve production

The Key Concept of TPSThe Key Concept of TPS

There are three key concept of TPS:There are three key concept of TPS:

1.1. JidokaJidoka

2.2. KaizenKaizen

3.3. AndonsAndons

The Key Concept of TPSThe Key Concept of TPS

JIDOKA refers to just in time supply chain JIDOKA refers to just in time supply chain system and the ability to stop production to system and the ability to stop production to prevent defects.prevent defects.

Ex: Seat installation process.Ex: Seat installation process.To operate without stored inventoryTo operate without stored inventoryTo reduce errorsTo reduce errorsTo satisfy customer demandTo satisfy customer demandDeveloping own software to manage this Developing own software to manage this

scheduling.scheduling.The Assembly Line Control System(ALCS)The Assembly Line Control System(ALCS)

JIDOKAJIDOKA

The Key Concept of TPSThe Key Concept of TPS

KAIZEN is the component that seeks KAIZEN is the component that seeks continuous improvement,often by eliminating continuous improvement,often by eliminating waste from the system.waste from the system.

Ex: Toyota’s Dealer Daily Internet PortalEx: Toyota’s Dealer Daily Internet Portal

To reduce the wait time for customers.To reduce the wait time for customers.

KAIZENKAIZEN

The Key Concept of TPSThe Key Concept of TPS

ANDONS are visual controls that provide ANDONS are visual controls that provide an up to the minute look at how the an up to the minute look at how the production process is running.production process is running.

Ex: Electronic dashboards,overhead Ex: Electronic dashboards,overhead displays,plasma screens.displays,plasma screens.

Gives accurate reportGives accurate report

ANDONSANDONS

The Key Concept of TPSThe Key Concept of TPS

More advanced ANDONSMore advanced ANDONS

Connecting to the assembly line Connecting to the assembly line machinerymachinery

Using plasma screensUsing plasma screens

Competitors’ PerspectiveCompetitors’ Perspective

Other auto companies have studied Other auto companies have studied Toyota’s methods but have had Toyota’s methods but have had trouble imitating them.trouble imitating them.

Toyota’s Real Secret:Hint,It Is Not Toyota’s Real Secret:Hint,It Is Not TPSTPS

Toyota helps suppliers with product Toyota helps suppliers with product strategy,such as PTC.strategy,such as PTC.

Mutual success is the key to the relationship.Mutual success is the key to the relationship. Lean product development is key to long-range Lean product development is key to long-range

success of the enterprise.success of the enterprise.

Toyota’s Real Secret:Hint,It Is Not Toyota’s Real Secret:Hint,It Is Not TPSTPS

Are you considering emulating TPS or the Are you considering emulating TPS or the Toyota Product Development System?Toyota Product Development System?

Two key aspects os Toyota’s development:Two key aspects os Toyota’s development:

1.1. Customer – drivenCustomer – driven

2.2. The lean principles of TPS apply.The lean principles of TPS apply.On culture,the key point is that people must be On culture,the key point is that people must be

receptive to input from different areas of the receptive to input from different areas of the organization.organization.

THANKS FOR THANKS FOR LISTENING…LISTENING…