Toyota’s People System

I’ve combined a couple of things in this post. The video is from a local news report of how the Toyota Production System (what most of us generically refer to as “lean”. The rest of the post was compiled by the Public Relations Department of Toyota’s Georgetown Kentucky plant. It doesn’t seem to still be on their active website, but I think it remains a great primer on how Toyota uses a superior management system to achieve superior results.
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The “Thinking” Production System:

TPS as a winning strategy for developing people in the global manufacturing environment

At the 2003 Automotive Parts System Solution Fair held in Tokyo, June 18, 2003, Teruyuki Minoura, Toyota’s  an aging director of global purchasing at the time, talked about his experiences with TPS (the Toyota Production System), and what it means for suppliers and for the future of the auto industry.

At the 2003 Automotive Parts System Solution Fair, held in Tokyo, June 18, 2003, Teruyuki Minoura, then-managing director of global purchasing, Toyota Motor Corporation, talked about his experiences with TPS (the Toyota Production System), and what it means for suppliers and for the future of the auto industry.

Teruyuki Minoura
Teruyuki Minoura

Teruyuki Minoura is confident that the long-standing principles of the Toyota Production System will not change in the future, and that TPS will be able to meet any challenge. He noted that the system originally emerged through a trial-and-error approach aimed at solving practical problems and meeting the needs of the company. Recalling painful memories of the labor dispute of 1950 that destroyed so many friendships, he observed, “Businesses suffer if efforts are devoted to raising productivity when the products themselves cannot sell.” It was through such experiences, that the basic concept of just-in-time was born.

In simplest terms, Just-in-time is “all about producing only what’s needed and transferring only what’s needed,” says Minoura. Instead of the old top-down “push” system, it represented a change to a “pull” system where workers go and fetch only what is required. Tools, including the kanban (information card), andon (display board), and poka yoke (error prevention) were developed to implement the pull system. But, Minoura warns “simply introducing kanban cards or andon boards doesn’t mean you’ve implemented the Toyota Production System, for they remain nothing more than mere tools. The new information technologies are no exception, and they should also be applied and implemented as tools.”

Early in his career, Minoura worked under Taiichi Ohno, recognized as the creator of the Toyota Production System. Ohno, through tireless trial and error, managed to put into practice a “pull” system that stopped the factory producing unnecessary items. But Minoura observes that it was only by developing this “loose collection of techniques” into a fully-fledged system, dubbed the Toyota Production System or TPS, that they were able to deploy this throughout the company.

Andon

Andon (アンドン, あんどん, 行灯) is a manufacturing term referring to a system to notify management, maintenance, and other workers of a quality or process problem. The centrepiece is a signboard incorporating signal lights to indicate which workstation has the problem. The alert can be activated manually by a worker using a pullcord or button, or may be activated automatically by the production equipment itself. The system may include a means to stop production so the issue can be corrected. Some modern alert systems incorporate audio alarms, text, or other displays.

At Toyota, each team member is a quality inspector. At any time during the production process, any team member who spots a problem can stop production by pulling the “andon cord” located next to the assembly line. An andon board (left) lets supervisors know the location of the problem with a blinking light and a distinct musical tone.

An Andon system is one of the principal elements of the Jidoka quality control  method pioneered by Toyota as part of the Toyota Production System and therefore now part of the Lean approach. It gives the worker the ability to stop production when a defect is found, and immediately call for assistance. Common reasons for manual activation of the Andon are part shortage, defect created or found, tool malfunction, or the existence of a safety problem. Work is stopped until a solution has been found. The alerts may be logged to a database so that they can be studied as part of a continuous-improvement program.

The system typically indicates where the alert was generated, and may also provide a description of the trouble. Modern Andon systems can include text, graphics, or audio elements. Audio alerts may be done with coded tones, music with different tunes corresponding to the various alerts, or pre-recorded verbal messages.

Usage of the word originated within Japanese manufacturing companies, and in English is a loanword from a Japanese word for a paper lantern.

References

Liker, Jeffrey (2004) “The Toyota Way” New York:McGraw Hill ISBN 0-07-139231-9

Toyota Production System

The “Thinking” Production System:

TPS as a winning strategy for developing people in the global manufacturing environment

At the 2003 Automotive Parts System Solution Fair held in Tokyo, June 18, 2003, Teruyuki Minoura, Toyota’s an aging director of global purchasing at the time, talked about his experiences with TPS (the Toyota Production System), and what it means for suppliers and for the future of the auto industry.

At the 2003 Automotive Parts System Solution Fair, held in Tokyo, June 18, 2003, Teruyuki Minoura, then-managing director of global purchasing, Toyota Motor Corporation, talked about his experiences with TPS (the Toyota Production System), and what it means for suppliers and for the future of the auto industry.

Teruyuki MinouraTeruyuki Minoura is confident that the long-standing principles of the Toyota Production System will not change in the future, and that TPS will be able to meet any challenge. He noted that the system originally emerged through a trial-and-error approach aimed at solving practical problems and meeting the needs of the company. Recalling painful memories of the labor dispute of 1950 that destroyed so many friendships, he observed, “Businesses suffer if efforts are devoted to raising productivity when the products themselves cannot sell.” It was through such experiences, that the basic concept of just-in-time was born.

In simplest terms, Just-in-time is “all about producing only what’s needed and transferring only what’s needed,” says Minoura. Instead of the old top-down “push” system, it represented a change to a “pull” system where workers go and fetch only what is required. Tools, including the kanban (information card), andon (display board), and poka yoke (error prevention) were developed to implement the pull system. But, Minoura warns “simply introducing kanban cards or andon boards doesn’t mean you’ve implemented the Toyota Production System, for they remain nothing more than mere tools. The new information technologies are no exception, and they should also be applied and implemented as tools.”

Early in his career, Minoura worked under Taiichi Ohno, recognized as the creator of the Toyota Production System. Ohno, through tireless trial and error, managed to put into practice a “pull” system that stopped the factory producing unnecessary items. But Minoura observes that it was only by developing this “loose collection of techniques” into a fully-fledged system, dubbed the Toyota Production System or TPS, that they were able to deploy this throughout the company.