Toyota is considered as one of the leaders in the auto industry and its production systems is regarded as one of the best production systems of the world. The production systems are considered as a benchmark for other producers and its management and operational principles are quite famous all around the world. The production system of Toyota Motor Corporation’s vehicle production system is considered as a way of making things in an appropriate manner which is sometimes known as the process of lean production. It is sometimes referred to “Just in Time (JIT) system” and this system is considered as a well known system and it is studied worldwide.
The production system of Toyota came into existence after several years of continuous improvements and the core objective of the production system is to make the vehicle ordered by the customers in a quick manner and in a most effective way in order to ensure delivery of the products in the quickest possible way. This production system allows Toyota to increase its customer base and the stakeholders of the entire organization are satisfied with it. This production system was not adopted from the American automotive industry but it was initiated just by visiting a super market. This system initiated when a delegation from Toyota visited the United States in the 1950’s. The company found very ineffective methods that were adopted by the American companies and they were disappointed by the large amount of inventory at that time. The delegation was impressed when they visited a supermarket named Piggly Wiggly and they were impressed by their process and attitude of work. The delegation experienced Just in Time at that place and they were impressed by the inventory process is being managed. They developed a mindset that stacking up the inventory would affect the organization in a negative manner (Liker). The core focus of the organization was to reduce the waste and to eliminate the extra costs from the production process. The elimination of waste from the production processes is known as ‘muda’ in the Japanese language. The examples of muda are idle equipment, material, inventory and etc. The organization believes that most of the companies waste 70-90% of their total sources.
The entire concept is based in the two core concept and these two concepts are known as ‘Jiduka’ and ‘JIT’. The concept of Jiduka can be considered as the process of automation with a human touch. This phenomenon revolves around the concept that when the equipment stops working it stops immediately and doesn’t cause any defect in the final product. Another concept is of JIT which revolves around the phenomenon that the process only produces when it is needed. This process ensures effectiveness in the production process. Both of these processes are quite important for an organization and that is the reason why they are adopted by many organizations of the world (Bodek and Ohno). The concept of Lean Manufacturing was actually coined by James Womack and it is considered as the widely used phenomenon in the world. The TPS brings order of magnitude improvement in handing the material, inventory, customer satisfaction and quality. The payoff to the shareholders is quite significant and well documented.
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