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CASE SUMMARY
•Most studied systems in the field of production and operations
management.
•Core elements- JIT, Kaizen, Kanban & Jidoka
•Taiichi Ohno- Father of Lean Management.
•Acknowledged by rivals like GM, Fords and BMW for Toyota Production
System.
TAIICHI OHNO- ARCHITECT OF TPS
•Shortage of materials in Japan during World War-II
•Toyota facing capital crunch to carry huge inventories.
•Ohno experimenting on the ideas of Henry Ford and Edward Deming.
•He gave the foundation of JIT system.
•He invented the tool of JIT and Kanban.
HISTORY
•Sakichi Toyoda diversified its traditional family business of carpentry into
textile machinery business in 1897.
•Sakichi’s son Kiichiro established an automobile department within Toyota
Automatic Loom Works (TALW).
•Sakichi sold patent rights to establish a new automobile business and
named it Toyota.
•Due to a major labor union strike in 1950, Kichiiro stepped down as
Managing Director and his cousin Eiji took the position.
•The company changed its name to Toyota Motor Corporation in 1983.
TOYOTA PRODUCTION SYSTEM
•Main focus of TPS was reduction in cost through elimination of waste.
•TPS has two components – the “hard” or the technical part and the “soft’’ or
people related part.
•According to Taiichi Ohno, any equipment, materials, parts and workers
that exceeded the minimum amount that was absolutely essential to
production was surplus and resulted in increased cost.
TOYOTA PRODUCTION SYSTEM
•Ohno listed 7 wastes in manufacturing which are as follows:
1. Defects
2. Overproduction
