TOYOTA PRODUCTION SYSTEM
QUESTION 1
Toyota production system is an integrated system that considers equipment’s, raw materials and
human resources in an efficient way by ensuring that they are well utilized to meet productivity
without making it hazardous to the workers. The production system is based on two principals
“just in time” and jidoka. Toyota Company is based on delivery of required products within
specified time to ensure they always meet the market demand therefore it is appropriate to have a
functional system that evaluate mistakes and correct them within production process. TPS
principals have mini values that influence the working of the company. These mini values are
defined and explained below.
Andon
Andon is a virtual control technique that defines the current state of work (Toyotageorgetown,
2017). Depending on the workability of the system, work condition is always subjected to
changes. In the case of damages in the system, the production rate is always likely to go down.
The quality of the output in such situation is also expected to be low. The situation that results in
low output in terms of quality and quantity is known as an abnormal situation. Therefore, a
proper mechanism to identify causes of the abnormality needs to be in place and running to keep
the company ahead in production. The best thing is that Toyota has an integrated system that
combines production processes as well as risk identifiers and correction mechanism. The current
state of the work also enshrines the work instruction conditions. Work instruction offers
procedure of how products are produced. The technique behind work instruction is to improve
efficiency by teaching even the basic concept such as how to handles the tools. The final mini
3
TOYOTA PRODUCTION SYSTEM
principal under Andon is the job progress information. Job progress information shows how
much has been done and how much is remaining. Progress measurement is important in planning
and setting deadlines. With good progress estimation, the company can always have good quality
product in the right quantity at the right time. Bank of America can apply this technique by
defining how each employee should be doing work through providing work instruction. Besides
that, they can also classify the operation of their system as either operating normally or
abnormally. For example, if there is a breakdown in the system resulting to slow services, it can
be classified as abnormal to ensure that affected part is repaired on time.
Genchi Genbutsu
In English, this terms means “go and see the problem” (toyotageorgetown, 2017). Many
companies today rely on second-hand information. Over reliance on second information possess
danger such as inaccuracy in the transmission of the information. Avoiding problem associated
with secondary information, Toyota Company usually aim to be the witness and receiver of the
firsthand information regarding the problem identified. Having firsthand information about the
problem is important since it facilitates offering the solution required. The solution proposed in
such situation always aims to meet the immediate requirement as shown by the problem at hand.
Therefore, Toyota values the practical experience rather than theoretical one. The main reason
for such approach is that yesterday problem is not today problem since the need of yesterday was
totally different from the needs of today. For example, in the past cars were viewed as means of
moving people from one place to the other but today cars are a luxury system that must have
music players, cameras, air conditions and many other important elements. Therefore, a problem
associated with today system cannot be solved effectively by theoretic means proposed in the
4
TOYOTA PRODUCTION SYSTEM
past. Surely, they are less likely to work. Therefore, practical experience will promote new ideas
that will help to solve today problems effectively. For the case of Bank of America, both
customers and workers complain about different problems. Workers feel that the working
condition is poor while customer feels that services offered are unsatisfying. Management needs
to interact with workers and customers to know exactly what the problem is and thus offer the
most suitable solution.
Jidoka
What if the there is a defect and it is highly likely to impact the quality of the output? This
concept tries to give a solution in such situations. Occasionally, machines can have defects and
yet continue to function. While working with defects chance of late work delivery and poor
quality is high. However, with identification and correction tools in place, the defect can be
identified and corrected ensuring the system resume production as scheduled. The technique
used to achieve quick corrective measure includes isolation and localization (toyotageorgetown,
2017). Isolation help to identify and remove the affected areas hence make it easier to correct.
Still, on the Bank of America banking system can fail to give correct transactions. Such problem
can be considered a defect. Therefore, the appropriate approach is to isolate affect systems and
correct them to avoid further defects. Other example involves driverless car being developed by
Google. What if when launched some fails to recognize direction provided by Google map? If
that is the case, TPS system suggest that Google need to recall back affected cars and check and
correct them as well as implement upgraded system in the new model. Such problem might have
adverse impact as such as increase in accident and wastage of fuel. However, if there can be a
5
TOYOTA PRODUCTION SYSTEM
system that identify the defect and stop the driverless car immediately or move it to a safer area,
it will save cost, reputation and lives.
Just in time
For every company, it is important to manufacture the product that is needed, in the right
quantity and at the right time (toyotageorgetown, 2017). With such system in place, accuracy in
meeting the demand can be achieved. Also, quality cannot be overshadowed. Just in time
principal is controlled by three basic strategies including pull system, continuous flow processing
and Takt time. Under pull system, production is pulled by a series of factors that are influential
on the need to produce. For example, what customer need is a pull? If they need more, hence
production will have to be increased. Another factor that facilitates pull includes dedication,
definition and control. The person who controls resources determines how the production
proceeds. If they offer enough resources, hence production will be swifter and meet large
quantity requirements. Sharing is also a factor, if the item is shared then they have to be
dedicated sparingly to each sharing departments depending on the needs. Definition based on
the volume to be produced is another factor that influences the production capacity. Usually,
there is a set limit per day or per specified time if the limit is hit, then production stops.
However, if the limit is extended then more production can be achieved and that is the pull.
Google produces HTC phones. The production of thesae devices need to be influenced by
demand. Therefore, TPS advises that, the company should check the resources available at its
disposal as well as the demand of their products. If the demand keep increasing, then the
controller of production resources need to release resources accordingly.
6
TOYOTA PRODUCTION SYSTEM
Muda
Without proper estimation i.e. when we underestimate the market condition or if there is an
adverse scenario in the market that influences the buying ability of the customers, there will
always be wastage (toyotageorgetown, 2017). The causes of wastage include overproduction,
correction, motion, waiting and processing. This strategy can be effective in managing HTC
phone production by Google. Without proper estimation of the market, they can make more than
what is needed. Besides that, new technology can be introduced hence render the model in the
market useless. TPS advise that companies need to estimate and be vigilant of emerging issues
hence produce appropriately by estimating properly the market forces.
Pokayoke
Pokayoke represents low cost but a highly reliable product that is used in Jidoka system
(toyotageorgetown, 2017). Low cost means that they are cheap to acquire. Reliable means that
they suitably execute the duties they are expected to offer. Low cost but reliable does not mean
that they are durable but it can mean that they are easy to replace. The work of these mini
systems is to detect and prevent the production of defective parts. The main reason for putting
low cost but a reliable detective and correction devices it makes them usable only for a short
period before replacing them with newer one. Putting only one system over long time as a
corrective means can be dangerous as they may also be subjected failure. Google phones should
always be produced with care since any defective than can pass unknowingly can result in losses
as customers will shy from purchasing new Google devises due to fear of defects. Production
7
TOYOTA PRODUCTION SYSTEM
system therefore should have detective devices to identify abnormal processes that might lead to
poor quality production.
Jishuken
There is always a critical part of the organization that will always require continuous
improvement to make them effective (toyotageorgetown, 2017). Such parts are critical for the
success of the organization. For example, quality control department of the organization is very
important since it influences nearly everything in the organization. Therefore, its improvement
will always lead to improvement in other parts of the organization. Improvement need always to
start in such central department and spread to others since it will act as a motivation for the
others. For example, Google mission statement is very important as it defines what the company
needs to do every time. The statement suggests that Google should always aim to make
information accessible useful globally. The mission being the central control of the organization
should always remind still needs to improve to make their product durable and their services
better and attractive. Even though it has achieved greatness, there is still need to improve since
customers still complaint about hacking and annoying add-ons in their Google Chrome browsers.
Hoshin
A company without goals is dead. A company needs to have vision and mission hence set targets
to achieve them. Goals need to be realistic and reflect the company growth capacity. Goals are
either long term or short term but it is important for the company to have both long term and
short term goals. The company should also have means of achieving these goals. Therefore, it
should have strategies and framework to make them a reality. For example, the goal of Google is
8
TOYOTA PRODUCTION SYSTEM
to make information accessible and useful globally. Such goal is normally broken into smaller
goals and that is why Google has different projects such as YouTube project, phone projects and
driverless car projects.
TPS is an integrated social-technical system that aims to make work easier, perfect and on time.
The system contains its management philosophy and practices. Toyota system helps in
management as well as logistics. The system enables the company to interact with suppliers and
customers. The main component of the systems includes Taiichi Ohno and Eiji Toyoda
(TOYOTA, 2017). Toyota production system was designed by founder from 1948 to 1975
(TOYOTA, 2017). The goal of Toyota production system is to eliminate wastage, improve
consistency and avoid overburden. The combination of consistency and avoidance of overburden
aims to reduce the number of wastage including time, production, transportation, stock at hand,
movements and defective products wastage. The main concept of TPS contains Jidoka and just in
time strategies. Jidoka aims to make the work automatic to reduce chances of defections while
just in times aim to avoid wastage by producing what is needed when it is needed. The key
principle of this production system includes continual improvement, respect for people and long
term philosophy (TOYOTA, 2017). The key advantage of this system is to acknowledge the
importance of right process in producing right result, For example, the system aims to avoid
defective production to maintain high quality. Besides that, the processes utilized are automatic
meaning that whenever a problem occurs production stops to allow corrective measures. The
system is also inclusive meaning that it does not focus on developing the company only but also
the employees and other key stakeholders. The system also focuses on finding the root problem
by facilitating usage of the firsthand information in solving the problems and making decision
9
TOYOTA PRODUCTION SYSTEM
slowly in consensus. The main limitation of TPS is that it is stressing to implement. The system
specifies even how the employees should be handling tools or how they should be doing a
particular task. Just in time strategy is also another problem since it is stressing for human
resource involved since it require a very hard work and that is why Toyota in 1990s found it hard
to get and keep employees. For continual production, the company proposed automation to solve
high demand for human capital. The initial capital for automation is very high and most new
companies found it hard to manage. When Toyota found it hard to get employees, the company
moved to utilize ergonomics strategy to ensure they improve their human resource. The main
reason for this is to reduce hard work and incorporate efficiency in production. The fact that
workers are not required to work extremely hard as before means that the company is able to get
and make its worker happy. Toyota production system has been successfully copied by other
automakers such as general motors. The system proved to be reliable but it took a long time. At
the beginning, it proved to be complex and too demanding. However, with time, the process
worked. The key challenge to implement the system in Europe and USA is based on business
culture. Europe and USA favored short term planning while TPS is designed for long term
implementation.
