History of Toyota Production System (TPS)

1Marek.Piatkowski@Rogers.com
History of TPS
Introduction
Thinkingwin, Win, WIN
History of TPS (Toyota Production System)
Introduction
Marek Piatkowski – January 2017

History of TPS
Introduction
Introduction - Marek Piatkowski
 Professional Background
 Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from
1987-1994
 TPS/Lean Transformation Consulting - since 1994
 Professional Affiliations
 TWI Network – John Shook, Founder
 Lean Enterprise Institute (LEI) – Jim Womack
 Lean Enterprise Academy (LEA) – Daniel Jones
 CCM/CAINTRA – Monterrey, Mexico
 SME, AME, ASQ, CME
 Lean Manufacturing Solutions - Toronto, Canada
http://twi-network.com

History of TPS
Introduction

History of TPS
Introduction
Toyota Production System
 Toyota Production System (TPS) is a collection of best know:
 Business philosophies
 Operating principles
 Tools and Methodologies
 Leadership style
 which are proven and are logically connected.
 When properly used and applied they will lead any Company to higher profits,
greater business success, stability, growth and profitability
 Lean Manufacturing, which is based on TPS, suggests a way of managing and
operating your business:
 Anywhere in the World
 Any size and any type of business

History of TPS
Introduction
History of Toyota Production System - TPS
 Sakichi invents the Toyoda Power Loom
1890
1896
 Sakichi Toyoda invented the wooden Toyoda handloom that improves efficiency in
weaving
 Sakichi slowly develops a variety of patents on devices on looms including the
auto stop “Jidoka” feature for thread breakage and a non-stop changeover
feature on the shuttle part of the loom. In total it includes 24 different patents.
After 1921 the majority of the patents and improvements are actually created
by Kiichiro Toyoda the son of Sakichi.
1902 - 1924

History of TPS
Introduction
 Kiichiro Toyoda returns to Japan from Britain and begins initial study and
development of gasoline internal combustion engines.
 Production Toyoda Model AA Sedan, AB phaeton, and GA truck announced
1929
1930
 Kiichiro Toyoda again visits the U.S. and tours American textile and loom
manufacturing companies such as Draper & Compton, and Knowles among others.
He further observes the emerging U.S. auto industry.
 Sale of the patent rights to the G-Type Auto Loom to Platt Brothers in England is
initially negotiated for the sum of £100,000 pounds. This amount provides some
seed money for the experiments leading to engine development and the
automotive department within Toyoda Auto Loom

History of TPS
Introduction
 An automobile department formally established within the Toyoda Auto Loom
Company.
1931 - 1932
1933
 Kiichiro Toyoda initiates the collection of precision machine tools from Germany
and the U.S. that will be necessary to support automotive production.
 Initial development work and a formal prototype engine is produced in 1933. The
engine is based off a Chevrolet design.

History of TPS
Introduction
 Toyota Motor Corporation is officially established. Kiichiro Toyoda is President.
 A new factory is built in Koromo, Japan (present day Toyota City) about 30 minutes
outside city of Nagoya.
 A 10 centimeter thick document authored by Kiichiro is used to layout the factory,
the process flow, and provides a basis for training the workers in the new flow style
of production. Eiji later calls this document in writing “The Roots of TPS”.
 Kiichiro decrees that internal production and procurement should be done “Just-in-
Time” to avoid wasting materials.
1936
1937
 The first prototype vehicles are completed by Toyoda in 1936.

History of TPS
Introduction
 Establishment of several different Toyota Groups: Aichi Steel Works,
Toyoda Physical and Chemical Research Institute, Toyota Machine
Works Co., Aisin Seiki Co., Toyota Auto Body Co., Nagoya Rubber Co.,
Nippondenso Co. …
1940 - 49
 "Just-in-time" system launched on a full-scale basis.
1938

History of TPS
Introduction
 Toyoda Machine Works is established to specialize in the manufacture of machine
tools, jigs, fixtures and other devices for Toyota Motor Company.
 Eiji Toyoda has Taiichi Ohno join him in the complex machine shops of the company
(engine, transmission, and chassis) to begin making improvements again now that
the war has ended.
1939 - 1940
1945
 Sections of Toyota plants are required to produce parts for the government to aid
in WWII efforts.
 Most improvement efforts in the company stall.

History of TPS
Introduction
1947 - 1949
 Taiichi Ohno promoted to machine shop manager.
 Machining shop areas designated as a model shop in the company. Internally it is
referred to as the “Ohno Line”. Rearrangement of machines from process flow to
product flow is piloted.
 End of one man one machine. Start of multi process handling begins with L, U, and I
shaped lines in machining. Inspiration was mainly the fact that one person could
operate 24-36 auto looms in other facilities.
 Detail studies of individual processes and cycle times are conducted by Taiichi Ohno
and staff. Time study and motion analysis are conducted as well.
 Reduction of work in process inventory begins in earnest.
 In-process inspection by workers is adopted as a policy.
 Line stop authority to workers is granted as well.

History of TPS
Introduction
1950
 After WWII Japan experiencing a crisis in product quality. Japanese goods were
thought to be cheap, easily broken and in general extremely poor quality.
 Economic depression and decline in sales triggers a financial crisis in the company
and labor disputes are frequent with work stoppages. The crisis eventually results in
a consortium of banks loaning Toyota money but requiring a restructuring plan and
reduction in work force. As a result 2146 people or about one third of the company
lose their jobs. Kiichiro Toyoda steps down as President to accept responsibility
 Financial crisis / Labor dispute - Voluntary retirements. Shoichiro Toyoda resigns as a
President of Toyota. Eiji Toyoda becomes the new President.
 Toyota being on the edge of bankruptcy forces the company to re-visit how they
conduct business
 Start of Korean war saves Toyota. Taiichi Ohno is send to Detroit

History of TPS
Introduction
1951
 Eiji Toyoda tours the U.S. for 6 weeks to visit factories and observe production.
 For three weeks he is at Ford Motor Company as the guest of Henry Ford II.
 Eiji notes that Toyoda is behind Ford in many respects and can not compete on a
mass production basis. However he does believe they can emphasize their own
unique attributes and style of production and improve upon what he observed.
 Taiichi Ohno studies at Ford principles of mass production and Assembly Line.
 Concept of Takt Time is created.
 Taiichi Ohno learns about Standardized Work. Initial Standardized Work Charts are
developed.
 Elimination of waste concept is created.

History of TPS
Introduction
1951 - 1955
 Further refinements to the basic system emerging in the machine shops by Ohno
and his direct reports (K. Suzumura, I. Mamiya, T. Watanabe, M. Morita, Y. Arima) in
the engine, transmission, and chassis areas.
 Start of TWI management training programs (JI, JR, JM) begins to develop
supervisors and managers in production.
 Creative Suggestion system initiated based upon a model observed at Ford.
 Elimination of waste concept is created.
 Initial Standardized Work charts are developed and utilized for analysis.
 Further reduction of batch sizes and change over time on tooling is conducted.
 Aspects of visual control / 4S introduced.

History of TPS
Introduction
 Corporate slogan "Good Thinking, Good Products" established
 Toyota Motor Sales, U.S.A., Inc. established
 Toyopet dealerships started operations –first export of Japanese car to the USA
 Emergence of more “Efficient Production System” (Machining plant with flow,
visual control, standardized work, basic pull)
1955
1956
 Initial Kanban implementation and replenishment style production is trialed in
areas.
 Production leveling and mixed assembly is conducted in engine machining and
assembly.
 TPS begins to expand slowly outward from the engine, transmission, and chassis
shops to other areas.

History of TPS
Introduction
 Start of Motomachi vehicle plant the second major facility for Toyota
1957
1959
 Basic Andon system initiated with lights on engine assembly line.
 Installation of Quick Die Change machines from Danly Corporation with moving
bolster mechanism and other features greatly reduces average change over time in
stamping. These machines introduce many key rapid changeover features to the
company.
1960

History of TPS
Introduction
1961
 Start of Production Engineering Department #1 with focus on the following more
technical aspects of TPS and manufacturing.
 In house design of machine tool jigs and fixtures
 Start of corporate wide TQC program driven by Eiji Toyoda.
 Pull system and Kanban complete internally company wide in all of Honsha Plant,
and the new Motomachi Plant.
 Average company wide changeover time in stamping is down to15 minutes. Single
minute of die exchange machines exist.
 Standardization of tooling, cutting conditions, etc.
 Improve production processes to work with TPS.
(work closely with Toyoda Machine Works)

History of TPS
Introduction
 Toyota wins Demming Prize for Quality
 Dr. Demming’s expertise in quality control techniques led to his receiving an
invitation from the society of Japanese Union of Scientists and Engineers (JUSE).
JUSE members had studied Shewhart's techniques, and as part of Japan's
reconstruction efforts, they sought an expert to teach statistical control (SPC).
1962
1965
 Start of corporate wide TQC program by Eiji Toyoda.
 Pull system and Kanban complete internally company wide in all of Honsha Plant,
and the new Motomachi Plant.
 Average company wide changeover time in stamping is down to 15 minutes.
 Single minute of die exchange machines exist - SMED

History of TPS
Introduction
 The “Oil Shock” from OPEC countries placing an embargo on the West plunges
Japan economy into crisis. Only Toyota makes a profit among all the major
companies in Japan.
 Discovery of Japanese cars in North America – small, cheap cars and good on gas
 Toyota’s Education Department creates the first 200 page TPS manual in Japanese.
The foreword is drafted by Taiichi Ohno. Authors include F. Cho, K. Sugimori, S.
Uchikawa, etc. Edited by Isao Kato. This is really the first time that Toyota’s system
is called the “Toyota Production System” in writing.
1971
1973
 Average changeover time in stamping is down to 3 minutes company wide.

History of TPS
Introduction
 Regular supplier improvement workshops (called Jissyuken) begin with 17 suppliers
lead by the Operation Management Consulting Division (Fujio Cho, Kikuo
Suzumura, etc.)
1975
1976
 Taiichi Ohno is appointed Executive Vice President of Manufacturing
 First English TPS presentation drafted by Y. Sugimori, K. Kusunoki, F. Cho, S.
Uchikawa, for a management conference on production research in Tokyo, and
later publication in the Journal of Operations Research.
1977

History of TPS
Introduction
 Initial wave of Americans visit Japan and tour different companies including Toyota.
 TPS is slowly identified in various Western books as various topics including but not
limited to QC circles, Kanban, JIT, 5S, Visual Control, TPM, Standardized Work, or
Kaizen.
1978
1970`s
 Taiichi Ohno retires from Toyota Motor Corporation. He is appointed as Chairman
and member of the Board of Director for both Toyoda Gosei and Toyoda Boshoku.
 Writes his first book on TPS as the request of many people in Japanese

History of TPS
Introduction
 Toyota GM joint venture Nummi is established in Fremont California.
1981
1984
 Shigeo Shingo writes “A Study of the Toyota Production System from an Industrial
Engineering Viewpoint”. In 1983 it is translated into English.
 First wholly owned U.S. facility Toyota Motor Manufacturing in Georgetown,
Kentucky (TMMK and first Canadian Toyota Manufacturing facility in Cambridge
(TMMC), Ontario are established.
1988

History of TPS
Introduction
1990
 Toyota Supplier Support Center opens as well to aid suppliers in the conversion to
TPS principles. (Note: TSSC is initially an outpost of Toyota’s OMCD department in
Japan. Now it is a separate for profit entity operated by Hajime Ohba. Through this
groups efforts much material and instruction are supplied to a large variety of
companies in the U.S.
 Toyota ventures into a Luxury car market. A Lexus brand is introduced to North
America.
1989

History of TPS
Introduction
History of Toyota Production System – Lean Manufacturing
 Professors Jones and Womack of Massachusetts Institute of Technology (MIT)
complete a 5 years study of the transportation industry and the effort documents
the benefits of TPS calling it “Lean Production”. The book is entitled The Machine
that Changed the World.
November 1991
Daniel T. JonesJames P. Womack

History of TPS
Introduction
History of Toyota and TPS

History of TPS
Introduction
History of Toyota and TPS – in Spanish

History of TPS
Introduction
2016
 Toyota is the largest vehicle manufacturer
by volume, ahead of Volkswagen and GM
 338,875 employees world wide
 66 factories world wide
 In July of 2013 Toyota reported the
production of its 200-millionth vehicle.
 Toyota is the world's first automobile
manufacturer to produce more than 10
million vehicles per year.

History of TPS
Introduction
Toyota developed TPS by
benchmarking their management
system against best practices
in the World.
This is what history tells us …
Toyota did not “Invent” TPS

History of TPS
Introduction
Changing the World. One Transformation at a time
This presentation is an intellectual property of W3 Group Canada Inc.
No parts of this document can be copied or reproduced
without written permission from:
Marek Piatkowski
W3 Group Canada Inc.
iPhone: 416-235-2631
Cell: 248-207-0416
Marek.Piatkowski@rogers.com
http://twi-network.com

History of TPS
Introduction
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