Case Study TOYOTA

On target to become number one

Summary
If it meets its sales targets, Toyota will overtake General Motors (GM) to become the world's biggest
motor car manufacturer.

2005 saw sales by both the US carmakers fall: GM by 10.2 per cent and Ford by 8.7 per cent in contrast,
Toyota said its US sales increased by 8.2 per cent.

Over the next two decades, under the guidance of Talichi Ohno, it developed its renowned Toyota
Production System (TPS) (The TPS is based on principles of the elimination of waste (muda), continuous
improvement (kaizen), automation with a human face (jidoka) and the involvement of all employees.

It forms the basis of what is now widely regarded as manufacturing best practice, so-called world class
manufacturing, for many products, not just motor cars.

The TPS has ensured that Toyota's factories consistently achieve higher levels of productivity and greater
flexibility

1. TPS PRINCIPLES (TOYOTA PRODUCTION SYSTEM)

 MUDA

 KAIZEN

 JIDOKA

I. MUDA

Waste reduction is an effective way to increase profitability.

II. KAIZEN

Practices that focus upon continuous improvement of processes in manufacturing.

III. JIDOKA

Jidoka sometimes is called automation, meaning automation with human intelligence. This is because it
gives equipment the ability to distinguish good parts from bad autonomously, without being monitored by
an operator

THE 3 E ’s

The 3 E‘s highly effects the outcome of any product.

Following are the three E’s

BETS
British Education And Training System
 Case Study TOYOTA
On target to become number one
 EFFICIENCY

 EFFECTIVENESS

 ECONOMY

Questions

1. What aspects of Toyota's operations contribute to efficiency?

Manifest themselves in the practices of just-in-time, total quality management, team-working

and cellular layouts.

TPS withal involves the most proximate collaboration with suppliers.Toyota to get incipient
products to market more expeditious than its rivals TPS is predicated on principles of the elimination
of waste , perpetual amendment , automation with a human face and the involution of all employees.

2. What aspects of Toyota's operations contribute to effectiveness?

The TPS has ascertained that Toyota's factories consistently achieve higher calibers of
productivity and more preponderant flexibility that engender cars with fewer defects than most rivals.

Consequently, Toyota has more satiated customers who are disposed to buy their products
without recourse to the kind of price discounting prevalent in the industry

3. What aspects of Toyota's operations contribute to economy?

The TPS has been extensively studied and replicated by carmakers across the globe. It
composes the substratum of what is now widely regarded as manufacturing best practice, soi-disant
world class manufacturing, for many products, not just motor cars. More recently, these conceptions
have been popularized under the banner of 'lean' endangerment. Its principles have been
prosperously applied in many accommodation environments.

BETS
British Education And Training System