Toyota Production System

1945 1950 1955 1960 1965 1970 1975 1980

Productivity improvement and effective utilization of materials Facility modernization and production efficiency improvement Establishment of mass production system In the face of the post-war material shortage and small production learned a painful lesson from the massive layoff resulting from In response to spreading motorization, productivity was dramatically volume, it was necessary to raise the productivity level to that the recession caused by the Dodge Line. Therefore, even when its improving through the introduction of high-speed heavy machines achievable in large-volume production and to produce only as production volume began to expand, due to the special procurement and division of labor, making it important to produce high-quality Needs of the time many items as required by effectively utilizing materials. boom for the Korean War, Toyota tried to refrain from hiring more products on a just-in-time basis. With the trigger of an oil crisis, it people. Instead, it promoted mechanization and a conveyor belt became essential to build a structure whose productivity would system to produce only those items absolutely necessary. not drop, even when production volume declined.

Pull system of production Fill-up system of production Elimination of intermediate Adoption of a system to take delivery Promotion of synchronization Complete elimination of picking Adoption of a red/blue-tag system Company-wide adoption of the Adoption of the system for Pull system of adopted (1948) adopted at machining plants (1954) warehouse (1954) of parts in set quantities (1955) among various processes (1950s) tickets (1960) for accepting deliveries of parts Kanban system (1963) parts supplied from suppliers (1965) from outside suppliers (1961) production Toyota proceeded to make improvements such Whereas parts were previously delivered in Vehicle production involves many continuous The system of issuing parts picking tickets A plan was developed to propagate the Kanban In order to eliminate emergency deliveries as implementing the pull and fill-up systems of bulk and stored, Toyota switched to a system processes, such as the machining process whenever a part was picked was changed system, which had started in the Machining and excess inventory and to facilitate Toyota initially tried this system before the production, and was thereby able to eliminate in which pre-specified quantities of parts and the assembly process or the body plant in 1955 to one that issues only monthly Division, throughout the entire company. The delivery of parts on more of a just-in-time Kanban system, which was adopted in intermediate warehouses such as the finished were loaded on pallets and delivered to the and the assembly process. Toyota made it reports. Furthermore, as the pull and fill-up system was gradually expanded with many basis, the Kanban system, which had order to procure parts on a just-in-time Flow of production instruction Kanban A Flow of parts withdrawal Kanban A product maintenance room provided between work site in pallet increments, eliminating the possible for the preceding process to know production systems were expanded, trials and errors occurring in individual involved some suppliers starting in 1963, basis. A red tag was issued when 10% the machining and assembly processes and intermediate accumulation of stock. the progress of the next process, so that reducing inventory, Toyota completely processes, until it was eventually adopted in was expanded to all suppliers.

Jus t more parts than planned were required, (2) The operator carries the (Next process) the intermediate maintenance room provided production on the two processes can be eliminated picking tickets. nearly all processes. and a blue tag was issued when 10% fewer parts withdrawal Kanban to between the stamping and assembly processes, synchronized. (Preceding process)[1] When a part is pulled, Parts loaded in bulk parts than planned were required retrieve parts. further reducing inventory. the production instruction Kanban is removed. -in- t Adoption of a conveyance call-out Adoption of set quantity delivery Adoption of continuous flow Adoption of concurrent multiple Expansion of the conveyance Adoption of the relay system for Transporting only system in machining plants (1953) (1955) production (1963) processes (1963) call-out system to all plants (1970) suppliers trucks (1973) (1) The parts withdrawal In order to transfer only the required materials To supply parts on a just-in-time basis and The relay system adopted for delivery ime what is needed Kanban is removed Continuous flow processing and use of in only the required quantities only when Old method concurrent multiple processes improve conveyance efficiency, the conveyance materials between plants was also applied when an operator required, and to improve delivery conveyance, call-out system, which had first been adopted for to transfers involving parts suppliers and uses the parts. Process No.1 Process No.2 Process No.3 Toyota adopted a system in the machining Parts machining process Assembly process Process No.1 Process No.2 Process No.3 conveying materials at the Honsha Plant body manufacturers. plant in which materials are delivered based The operator takes machining plant, was expanded throughout on a call-out from the next process using a a sequence list to the entire company. produc t light signal. retrieve parts. (4) Parts displaying the parts Line A [2] The operator makes[3] The operator attaches( 3) The operator removes withdrawal Kanban are Assembly sequence instruction Completed product Pallet with Kanban only the quantity of the production the production instructio n transported to the next Completed Completed Completed Completed parts indicated on Kanban to the finished Kanban and replaces it process. Raw product fromproduct fromproduct fromproduct from Completed MaterialsProcess No.1 Process No.1 Process No.2 Process No.2 product the production products and places with a parts retrieval Line B Completed product instruction Kanban. them in the staging ar ea . Kanban. Raw Materials Adoption of a relay system for delivering Shortening of time for changing Development of various types of simple When an item has it, and then Producing products materials between plants (1959) Assembly line gone through a moves onto the automated machines to facilitate process, the next machine. stamping setup at all plants (1971) Line C ion s Modeling after the supermarket system operator takes it Products can continuous flow production (1975) within a flow Toyota adopted a system that divides the The operator moves out, sets the next be made one delivery process into truck driving and truck item to be after another in only the set quantity. processed in the this way. Flow production was achieved through various • A supermarket is a convenient store where you can buy what you need when you want. loading/unloading. In this system, a truck Warehouse machine, and starts innovative steps. In two examples, the painting of parts, driver arriving at a destination switches to Attachment (HDA) Stamping dies Customers do not need buy any unwanted items, while the store only needs to replenish previously done in batches using large-scale equipment, another truck that has already been what has been sold, resulting in no waste for either party. In the set-quantity delivery system, the operator retrieves only the set quantities of required Even when materials are placed in processes, This method allows the required product was switched to line-by-line painting using simple loaded/unloaded and departs, thereby it takes a long time for products to be to be completed quickly and requires y painting machines, and a simple machine was provided improving logistics efficiency. parts according to the production sequence specified in the assembly process. Adopting this completed and requires many operators. lesser number of operators. in the next process to sort previously stamped parts into st e • Using this system as a model, Toyota established a system in which the operator system synchronized the assembly and parts machining processes, allowing both to carry those with holes and those without holes. Producing products goes from the location where parts will be used (next process) back to where the parts out lean production with low inventory. in small lots were made (preceding process), in order to retrieve only the necessary parts at the Continuous flow Use of concurrent multiple processes

m right time. ------Pull system of production Then, Toyota began to use transport cards (parts withdrawal ) when retrieving parts. Previously, after parts had gone through a In the continuous flow process, a machine Adoption of sequence tables Adoption of a system that issues production process, they were placed in a warehouse stops once processing is finished. The Adoption of the 10-day order Adoption of the daily order • Furthermore, at the production location, a specified number of completed parts and later taken out to be processed in the operator removes the completed item and sets system (1966) Material system (1970) (1957) instructions on a just-in-time basis (1960) How can we switch are kept in a designated area, and only as those parts are retrieved are they next process. With the continuous flow the next item to be processed in the machine. more quickly? replenished. ------Fill-up system of production Rather than using a mass production system Since production instructions based on system, machines were instead arranged In addition, the operator carries the processed To cope with an increasing number of different Containers In response to the introduction of the full Then, Toyota began to use production cards (production instruction Kanbans) to control that managed vehicle production in a specified sequence tables do not show the progress according to the processing sequence and item to the next machine and repeats the specifications, Toyota switched from monthly choice system, Toyota switched to a inventory and production. number of lots, sequence tables indicating the status of individual processes, production in parts were sequentially machined one by one same routine there. As a result, items no production planning to 10-day production system that fixed customers by order the starting from the raw material. This new longer stagnate and can be finished more In the stamping process, several types of parts are produced on a single line. However, for each different • Toyota introduced this system first into its machining plants and subsequently expanded production sequence for individual vehicles the individual processes may be too fast or planning (receiving orders three times a 10-day plan one day at a time. The new were distributed. Component assembly and too slow. Therefore, Toyota adopted a method allowed the necessary parts to be quickly. Training is also provided to help each month). As a result, the number of days it part, the setup must be changed, including the stamping dies, material, container, jigs, and tools. system allowed plan changes even five based on it to other processes. After implementing various types of improvements to cope with vehicle assembly processes were then carried system that uses an ÒInter-writerÓ, etc. to completed within a short period of time. handle take charge of multiple machines took from order receipt to vehicle delivery Through many improvements, Toyota was able to shorten the setup switching time to less than 10 days before a line-off and shortened the machine breakdowns and defective products, Toyota learned to produce and transfer out according that sequence, producing only issue production instructions on a (processes), resulting in higher efficiency. was halved from an average of 50 days to minutes and produce small quantities of various parts in the exact quantities needed. The new system delivery lead time to 10 days. only the required products, in only the required quantity, only when required. the required parts and vehicles. just-in-time basis 25 days. made stable production possible with only low inventory and also reduced waste in storage and

Assignment of each operator to Adoption of andon system for visual control Innovation in machining process Adoption of andons linked to a Building in quality through the use of Poka-yoke Adoption of full - work control Completion of an automated Adoption of a system of fixed Ð When a problem is multiple machines begins (1950) automation (1951) stop button (1955) (mistake proofing) (1962) (1962) engine line (1966) position Ð stop in the assembly (1947 through 1950) Innovative measures, such as setting up In order to easily identify the process that had To avoid making unnecessary items on lines An M-type engine line equipped with process (1971) machines to be automatically fed or stopped caused a line stoppage, Toyota adopted linked through the automated transport high-performance equipment and an automated detected, production To reduce the muda associated with assigning After clearly identifying the work scope within by a limit switch when processing was stop-button-linked andons on the Crown system, Toyota used the Kanban concept to transport system was completed at the Kamigo each operator to a single machine when the Example of using an interference plate and each process, the line was designed to stop at completed, made it possible for operators to assembly line at the Honsha Plant. establish and electrically control the Plant. Adopting a system that stopped the required volume was small and to improve the asymmetrical shape of a workpiece to a fixed position if a problem could not be corrected lines stop and an safely leave active machines. This in turn conditions required to send a processed equipment when a problem was detected, productivity, machines were positioned in prevent incorrect setting within the scope of a particular process. This enabled the assignment of each operator to item to the next process. along with andons that displayed the problem parallel or in an L-shape and each operator system prevented defective products from being J alert is displayed multiple machines. location, enabled Toyota to efficiently produce was assigned to multiple machines. Before After sent on to the next process. Interference plate only high-quality products. ido k Part (set incorrectly)

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Establishment of standardized a Separation of work (1953) Machine operatorsÕ work and Toyota established standard operations Main spindle Part I see No.6 is stopped! consisting of specified takt times, work (Cannot be set incorrectly) machinesÕ work I need to go and fix it. sequences, and standard amounts of work-in-process on hand to achieve an efficient production system. Machines and materials were positioned intelligently, taking operator movement into consideration. 1985 1990 1995 2000 2005

Handling of demand fluctuation and diversification, and locating Coping with globalization plants in multiple regions Based on its philosophy of Ôproducing vehicles where they are soldÕ, As the market matured, demand fluctuation and diversification Toyota rapidly expanded production overseas, including China, other widened and plants were being established in many locations Asian countries, and the EU. It implemented global initiatives in order inside and outside Japan. It became important to establish a to deliver vehicles to overseas customers at the same quality, lead production system that included parts suppliers to flexibly meet time, and productivity levels as in Japan. the requirements of the just-in-time system.

Adoption of automatic kanban Adoption of electronic Kanbans Adoption of the e-Kanban reading machines (1977) for long distance suppliers (1993) system (1999)

As the number of types of parts and their To prevent Kanban information transmission Toyota further evolved the electronic Kanban volume increased, Toyota installed automated time from becoming longer as plants were system and adopted the e-Kanban system, Kanban readers to simplify the handling of built at distant locations, Toyota began to which transmitted information for ordering kanbans and the clerical processing involved, electronically send parts retrieval Kanbans to necessary parts based on confirmed vehicle and to improve accuracy in keeping track of the preceding processes, thereby shortening sequence information and made automatic number of times kanbans were used. lead times. adjustments to the number of Kanbans for each month. Automated kanban reader Electronic Kanban

Adoption of circling transport of Shortening lead time by Adoption of combined marine Adoption of joint transport of mixed loads (1977) reassessing logistics (1983) and land transport for remote completed vehicles (1998) As Toyota Motor and Toyota Motor Sales were locations (1996) Transporting other companiesÕ vehicles on merged, duplicate processes and inspection the return trips of Toyota vehicle transports Toyota adopted a transport system that Pick-up steps were eliminated, and production and from plants to dealers improved transport Before After the introduction of circling transport consolidated parts destined for remote once a day Pick-up four of mixed loads logistics were synchronized, establishing a efficiency and reduced both cost and CO2 times a day smooth and efficient flow from order receiving locations such as Kyushu and used marine emissions. and land transport for all shipments, Plant making Plant making to production and to logistics, thereby thereby achieving both cost reduction and product A Assembly product A Assembly shortening lead time. plant plant shorter lead times.

Plant making Plant making product B product B

Plant making Plant making Building of the Toyota Network Development of Global Body product C product C System (1986) Line (GBL) (1999)

Plant making Plant making Toyota began using a high-speed digital line As overseas production expanded, Toyota product D product D to process information on orders, production, implemented a flexible system that made it and vehicle delivery online on a real-time possible for the various overseas locations Previously, when loads from several parts plants were small and picked up by multiple trucks, parts could basis, thereby shortening lead time and to add, switch, or mutually replenish only be picked up once a day as shown on the left. A shift to circling the multiple plants with a single truck improving planning accuracy. vehicle models. In addition, it developed that collected the parts and transported them in a mixed load, as shown on the right, made it possible to and propagated a new body welding supply parts more frequently (four times a day in this case), without degrading logistics efficiency. As a result, technology that ensured high quality at all of its plants. both of the parts plants and the assembly plant were able to carry on production with lesser inventories.

Better production instruction system Adoption of a new order system Adoption of automated equipment Adoption of the new COMPASS devised in each process (1971) (1974) for issuing production instructions (2002)

To produce multiple vehicle models flexibly on Adoption of a system that blended 10-day (1980) Toyota developed a system that stored the times and part a just-in-time basis, easy-to-follow production ordering with daily ordering enabled Toyota installing locations for individual work steps in a database Toyota adopted automated equipment such instruction methods were devised for each to efficiently produce both small- and to balance work time among operators and determine the as automated sticker printers, memory vehicle, including an assembly sticker method large-volume vehicle models for sale with a shortest point-to-point walks when a model redesign devices, monitors, and barcode readers to and balls for production instruction device for short lead time. resulted in changes in production processes. issue clear production instructions involving body assembly. *COMPASS: Comprehensive Process Planning diverse specifications on more of a Assembly Simulation System just-in-time basis. *COMPASS=comprehensive process planning Dealer terminal TVIS assembly simulation system"

Adoption of automated lines using Strengthening the system of building Elimination of water-leak test in NC machines and robots (1980) in quality in-process (1982) assembly plants (1998)

As automated systems, such as computerized Toyota wanted to utilize new production Toyota thoroughly ensured quality in all NC machines in the machining process and technologies in the most fruitful way processes at vehicle plants and eliminated robots in the body process, came into wider possible. Therefore, it expanded its the shower test conducted for all vehicles. use, Toyota incorporated the concept of system of building in quality in-process Water usage was reduced at plants by 20%. Jidoka into these systems, building lines that throughout the entire company as part of send only high-quality products on to the next its comprehensive implementation of process. fundamentals initiative.

Establishment of standardized Establishment of an efficient production Development of Visual & Virtual (using an actual vehicle) work in all processes (1975) method for dedicated lines with a small Communication (V-Comm) (1996) Before number of operators (1985) Following the oil crisis, Toyota reassessed By creating three-dimensional (3D) data how its products were being produced in from design drawings to check for interference 1. Positioning 2. Workability 3. Appearance 4. Wire harness The number of dedicated lines staffed by a interference check check check order to prevent productivity from falling, small number of operators had risen as the and workability, Toyota was able to shorten check

even during a period of reduced production the period between development and V number of items to be produced increased and -Comm volume. As a result, it established standard processes were improved. In response, Toyota production start and improve productivity operations for all processes and thoroughly established a production method that improved and quality. improved the way its products were produced. productivity by reducing the number of operators in just-in-time production.