SUPPLY CHAIN MANAGMENT IN TOYOTA

1.Toyota Production System (TPS)

Developed in the 1940s by Shigeo Shingo and
Taiichi Ohno.
Cornerstone of Toyota's operations strategy.
Principles spread globally, known as Lean 4.Capacity Planning Approach by
Manufacturing. Toyota
Emphasizes inventory reduction.
Relies on pull mechanism for efficiency and
2. Key Elements of Toyota Supplier continual improvement.
Partnering Hierarchy
Shared understanding and trust.
Interlocking structures.
Control systems. 5. Lean Manufacturing
Compatible capabilities.
Information exchange.
Inspired by Toyota's practices.
Cooperative improvement initiatives.
Kaizen and learning. Focuses on waste elimination and just-in-time
inventory management.
3. Just-in-Time (JIT) System Enhances customer service and gains a
competitive edge
Utilizes pull production based on kanban
cards.
Minimizes waste, reduces inventory, and
ensures continuous improvement.
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ABDUR RAHMAN BIN MOHAMMED (21BB04011)
 SUPPLY CHAIN MANAGEMENT IN
TOYOTA

6.Identifying and Addressing 7.Improving Supply Chain

Waste Management
Toyota categorizes waste into seven main Vital for cutting costs and enhancing
types, including: efficiency.
Overproduction. Requires strategic approaches tailored to
Holding up. each organization's culture and
Needless movement. resources.
Over processing.
Excess inventory.
Waiting.
Wasteful transport.
Plus, underutilized staff inventiveness.

8.Adapting Toyota's Principles

Businesses can learn from Toyota's
success.
Adapt principles such as TPS, JIT, lean
by: manufacturing, and kaizen.
ABDUR RAHMAN BIN MOHAMMED (21BB04011) Tailor them to their own circumstances
and organizational culture.