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TOYOTA BACKGROUND

The company was founded in 1937 by KiichiroToyoda as a spin-off from his father's companyToyota Industries to create automobiles.

The Toyota Motor Corporation was founded or

established on 28 August 1937 when ToyodaAutomatic Loom created a new division devotedto the production of automobiles under thedirection of the founder's son, Kiichiro Toyoda.

The world headquarters of Toyota are located inits home country in Toyota, Aichi,

Toyota () is considered luckier than Toyoda() in Japan, where eight is regarded as alucky number, and eight is the number ofstrokes it takes to write Toyota in katakana

http://en.wikipedia.org/wiki/Image:Kiichirotoyoda.jpg

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TOYOTA PRODUCTION SYSTEM

Make what the customer needs, when it is needed,in the right amount

Minimize inventories

Separate machine work from human work and fullyutilize both

Build quality into the process and prevent errorsfrom happening

Reduce lead-times to allow for rapid, flexiblescheduling

Produce a high mix of low volume products

efficiently

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TPS Terms

Muri (overburden) Mura (unevenness) Muda (waste) TPS is the Operational Blueprint for a Lean

Enterprise Kaizen JIT

According to Taiichi Ohno, the man credited withdeveloping JIT, kanban is a means through which

JIT is achieved.[2] Piggly Wiggly Jidoka

kanban

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APPROACH

To solve the problem of waste, Lean Manufacturinghas several 'tools' at its disposal. These includecontinuous process improvement (kaizen), the "5Whys" and mistake-proofing (poka-yoke). In thisway it can be seen as taking a very similar

approach to other improvement methodologies There is a second approach to Lean Manufacturing

which is promoted by Toyota in which the focus isupon implementing the 'flow' or smoothness ofwork (opposite ofmura, unevenness) through thesystem and not upon 'waste reduction' per se.Techniques to improve flow include productionlevelling, "pull" production (by means ofkanban)and the Heijunka box.

http://en.wikipedia.org/wiki/Poka-yokehttp://en.wikipedia.org/wiki/Poka-yokehttp://en.wikipedia.org/wiki/Poka-yokehttp://en.wikipedia.org/wiki/Poka-yokehttp://en.wikipedia.org/wiki/Mura_%28Japanese_term%29http://en.wikipedia.org/wiki/Mura_%28Japanese_term%29http://en.wikipedia.org/wiki/Production_levellinghttp://en.wikipedia.org/wiki/Production_levellinghttp://en.wikipedia.org/wiki/Production_levellinghttp://en.wikipedia.org/wiki/Kanbanhttp://en.wikipedia.org/wiki/Production_levellinghttp://en.wikipedia.org/wiki/Heijunka_boxhttp://en.wikipedia.org/wiki/Kanbanhttp://en.wikipedia.org/wiki/Heijunka_boxhttp://en.wikipedia.org/wiki/Heijunka_boxhttp://en.wikipedia.org/wiki/Kanbanhttp://en.wikipedia.org/wiki/Production_levellinghttp://en.wikipedia.org/wiki/Production_levellinghttp://en.wikipedia.org/wiki/Mura_%28Japanese_term%29http://en.wikipedia.org/wiki/Poka-yokehttp://en.wikipedia.org/wiki/Poka-yokehttp://en.wikipedia.org/wiki/Poka-yokehttp://en.wikipedia.org/wiki/Poka-yoke

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CONCEPTS OF TPS

The Toyota Production System (TPS) was establishedbased on two concepts:

The first is called "jidoka"(which can be loosely translatedas "automation with a human touch") which means that

when a problem occurs, the equipment stopsimmediately, preventing defective products from beingproduced;

The second is the concept of "Just-in-Time," in whicheach process produces only what is needed by the next

process in a continuous flow.

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GOALS OF TPS

Main goals of TPS :

1 - To design out overburden (Muri)

2 - Smooth Production (Mura)

3 - Eliminate Waste

This production control system has beenestablished based on many years of continuousimprovements, with the objective of "making the

vehicles ordered by customers in the quickest andmost efficient way, in order to deliver the vehiclesas quickly as possible."

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JUST IN TIME

In short, the just-in-time inventory system is all abouthaving the right material, at the right time, at the rightplace, and in the exact amount but its implications are

broad for the implementors. Total there are 7 waste

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Status

Toyota together with its half owned subsidiary Daihatsu, is the world'slargest seller of cars for the first half of 2007 selling 4.72 million vehicles,ending GM's 76 year reign as the world's best selling marque. Toyota plansto produce 9.4 million vehicles in 2007

Although the Toyota Group is best known today for its cars, it is still in thetextile business and still makes automatic looms, which are now fully

computerized, and electric sewing machines which are available worldwide.

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Market Postition

In the Fortune Global 500, Toyota Motor is the 8thlargest company in the world.

Since the recession of 2001, it has gained market sharein the United States.

Toyota's market share struggles in Europe where itsLexus brand has three tenths of one percent marketshare, compared to nearly two percent market share asthe U.S. luxury segment leader.

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BEST SELLING CAR

With over 30 million sold, the Toyota Corolla is the best selling car in the world

http://en.wikipedia.org/wiki/Image:Toyota-Corolla-S.jpg

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HEADQUARTERS