Toyota Production System (TPS)

What if I told you a production system was implemented and it revolutionized the industry to such a degree that the entire world started using it? Fit for the perfect quality, productivity and sustainable improvements, the Toyota Production System , also known as TPS, is a masterpiece of modern manufacturing.

It is an accomplishment of the three brightest minds in manufacturing: Eiji Toyoda, Kiichiro Toyoda, and Taiichi Ohno . This system is more than just a methodology in manufacturing. It is a philosophy striving Toyota to be the best.

What is the Toyota Production System and how does it relate to Lean Methodology?

The Toyota Production System (TPS) is a well-known method developed by Toyota that has shaped modern Lean methodology. At its core, TPS is a system designed for continuous improvement, also known as Kaizen. This system was pioneered by Kiichiro Toyoda, Eiji Toyoda, and Taiichi Ohno, and focuses on two main principles: Just in Time and Jidoka. These principles form the backbone of TPS and are the foundation for Lean methodology used worldwide today.

The Two Foundations of TPS

1. Just in Time

The Just in Time (JIT) principle focuses on producing only what is needed, at the right time, and in the right quantity. This approach ensures that processes are organised efficiently, with minimal waste, and that both internal and external customers receive what they need when they need it.

The core elements of Just in Time include:

• One Piece Flow: Producing one item at a time through the production process.
• Pull Production: A system where production is based on customer demand rather than forecasted demand.
• Takt Time: The rate at which products need to be completed to meet customer demand.

Taiichi Ohno, one of the founders of TPS, introduced the concept of the seven wastes, or muda, which are non-value-adding activities that must be eliminated to improve efficiency. He famously stated: “Every employee has to know what value he is adding for the customer. You stop every other activity.”

The seven original types of waste identified by Ohno are:

1. Overproduction: Producing more than what is needed.
2. Waiting: Time wasted when materials or information are not ready.
3. Transport: Unnecessary movement of materials.
4. Overprocessing: Excess steps in a process that do not add value.
5. Inventory: Excess products or materials not being processed.
6. Motion: Unnecessary movements of people or equipment.
7. Defects: Products that are scrapped or require rework.

An eighth waste was later added, which focuses on underutilising employee skills.

To help remember these types of waste, many practitioners use the mnemonic TIMWOODS:

• T = Transport
• I = Inventory
• M = Motion
• W = Waiting
• O = Overproduction
• O = Overprocessing
• D = Defects
• S = Skills

Beyond muda (waste), TPS also addresses two additional concepts:

• Mura: Imbalance or irregularities in a process.
• Muri: Overburdening people or equipment, leading to stress and inefficiency.

2. Jidoka

Jidoka, or “automation with a human touch,” is about building in quality from the start. It focuses on preventing errors before they happen. If a problem occurs during the production process, the system automatically stops so that the issue can be fixed immediately. This principle ensures that defects are not passed on to the next stage of production.

Eiji Toyoda, another key figure behind TPS, introduced the ‘stop the line’ process, where the entire production line is stopped whenever an issue is identified. This ensures that problems are addressed in real-time, preventing defects from being compounded.

The essence of Jidoka is that workers are responsible for the quality of their work. If a problem arises, it is the worker’s duty to stop production and solve the issue, ensuring that only flawless products move forward in the process. This approach prevents poor-quality products from reaching customers and encourages ownership and accountability among employees.

The Link Between TPS and Lean Methodology

When discussing Lean methodology, it’s impossible to ignore its deep connection to TPS. In fact, TPS serves as the foundation for Lean principles. Both systems aim to maximise efficiency, reduce waste, and focus on continuous improvement, but they also share a common philosophy: the importance of people.

Lean methodology is often viewed as an evolution of TPS, and it has been widely adopted in industries beyond manufacturing. It takes many of the concepts developed within TPS, such as the elimination of waste and the focus on customer value, and applies them in various contexts, from healthcare to IT.

In Lean, the focus is on empowering people to continuously improve processes. Employees are encouraged to challenge the status quo, propose improvements, and take ownership of their work. The principle of Kaizen—or continuous improvement—is central to both TPS and Lean, driving incremental, ongoing improvements in every aspect of work.

Total Toyota Production System (T-TPS)

After decades of success with TPS in Japan, Toyota was invited to introduce its system to the West. During this transition, the original TPS was adapted to better suit Western culture, where people tend to play a more autonomous role in the production process. As a result, Toyota introduced Total-TPS (T-TPS), an updated version of the system that incorporated the principles of continuous improvement while empowering workers to have even greater control over their work processes.

T-TPS further strengthened the relationship between TPS and Lean, especially in the Western world, where the Lean methodology has become synonymous with efficient, people-centred production.

The Role of People in Lean and TPS

One of the central themes of both TPS and Lean is the role of people in the production process. Being Lean means engaging people in the process, allowing them time to rest and reflect, and giving them the tools and authority to improve their work. This approach not only improves efficiency but also helps workers feel empowered and motivated to contribute to the organisation’s success.

A key message of Lean and TPS is to never waste the creative potential of your people. Whether in manufacturing, services, or any other industry, employees are your most valuable resource. When they are given the opportunity to think critically about their work and suggest improvements, the organisation benefits as a whole.

Toyota’s credo, “Good thinking, good products,” perfectly captures this philosophy. By fostering a culture where every employee is encouraged to think creatively and contribute to process improvements, companies can produce high-quality products while continually refining their operations.

Conclusion

The Toyota Production System (TPS) and Lean methodology are deeply interconnected, sharing core principles such as waste reduction, continuous improvement, and employee empowerment. TPS serves as the foundation for Lean, offering a proven framework for driving efficiency and building a culture of quality.

By embracing the principles of Just in Time and Jidoka, organisations can optimise their production processes, reduce waste, and deliver exceptional products. Whether you are implementing Lean or looking to enhance your current processes, studying and adopting the philosophies of TPS can provide invaluable insights into building a more efficient, people-centred operation.

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