The Toyota Way

TPS Explained

Staff Report 

      What is TPS? Is it a collection of tools and methods? Is it a way of thinking? How can it adapt to the challenges of the 21st century?

      On March 7, 2002 , a group of experts on TPS gathered to discuss these questions at a special conference titled “Making Things 21C,” held in Nagoya Japan .
      Toyota President Fujio Cho opened the conference with the observation that making things is a fundamental human activity. It is the act of giving form to a dream, creativity itself. Cho reminded the audience that Toyota founder Kiichiro Toyoda was a practical engineer who believed in getting his hands dirty. He was also a practical businessman who realized that the key to increased profit was reduced costs. His most famous innovations Just In Time and jidoka do more than simply eliminate waste and improve quality. They bring the manufacturing process into crisp focus, exposing problems as they arise. They are therefore the scientific basis of kaizen, continuous improvement, and the bedrock of the Toyota Production System (TPS).

      Following President Cho’s keynote speech, Tokai Gakuen University Professor Kazuo Koike reminded the audience of manufacturing’s core role in adding economic value. Regarding the contribution of Kiichiro Toyoda, Koike explained how manufacturing requires “mastering uncertainty,” examples of which include creatively solving unpredictable problems of product quality and machinery. Koike described the ability of TPS to deal with changing market demand as particularly impressive in this respect. As an example, if a production line needs to reduce production volume by 20 percent, it will use 20 percent fewer workers and decrease the takt time by 20 percent. This is accomplished by giving each remaining worker additional tasks so that it takes longer to complete...

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