The Toyota Production System’s effect on the American Automobile

Manufacturing Industry

 Members: Steven Taylor, Tyler Watson, Timothy Sparks, John Imboden

And So We Begin

1970's - Well into Toyota's development of their production line. US "Big Three:" Ford, GM, Chrysler

The new production line was gaining notice with each passing day and people all over were learning the vocabulary.

Effect on US Economy

US was production economy, became an "idea" economy "Everyone in the United States (and by implication, the United Kingdom, Germany, and other high-wage industrial economies) was to become a computer programmer, or perhaps a lawyer." -http://www.temple.edu/tempress/chapters_1400/1546_ch1.pdf

The 1990s

Sudden boom of automobile manufacturing employment in the US thanks to transplant factories Transplant factories were being created in the US, most of which were anti-union, and put into places that had lower wage workers, especially Kentucky and Tennessee.

Introduction to TPS: 

○ The Toyota Production System revolutionized the process of automobile manufacturing, not only in Japan, but also within the United States, for better or worse, this revolutionary system changed the scope of the automobile industry in the United States.

○ On one hand, the emergence of this methodology for

automobile manufacturing opened the doors for import manufacturing, but on the other hand it slammed the door shut on specific domestic production.

  

 Father of TPS:

○ Taiichi Ohno (Feb 29, 1912 - May 28,1990)○ Prominent businessman. Considered to be the father of

the Toyota Production System○ Employee of the Toyoda family's Toyoda Spinning, moved

to the motor company in 1943, and gradually rose through the ranks to become an executive.

  

 Major Themes of the TPS

○ Elimination of waste is the ultimate goal.○ Inventory - One of the largest wastes○ People - Emphasizes the participation of all employees○ Technology - Integrates with people using a Socio-

Technical system

 Cellular Manufacturing

○ Workcell is a self-contained space with all necessary equipment and resources used for processing

○ 3-12 people per cell with 5-15 workstations in a compact arrangement

Kanban Scheduling / Pull Scheduling 

○ Operates similar to a supermarket○ Small stock of every item sits in a dedicated location with

a fixed space allocation.○ Customers come to the store and visually select items.  

Rapid Setup 

○ Four phases of setup reduction■ Maintenance, Organization and Housekeeping

● Clean dirt, replace/fix damaged parts, etc.■ Internal Elements to External

● See if internal element can't be done externally■ Improve Elements

● Examine each element and determine how to eliminate it, simplify it, or improve in some other way

■ Eliminate Adjustments● Time consuming and prone to errors

 

Team Development 

○ Team Process Training - Activities and relationships within the team.■ Communication, conflict resolution, time management

○ Task Training - Lack of skills to accomplish task leads to frustration and conflict.■ Cross training - useful if a team member is temporarily

absent.○ Coaching - Helps team see where techniques can apply

■ Helpful for accelerating learning to work in teams 

Virtuous Circle of Team Learning 

TPS Technologies

Global Production CenterAdvanced Computer Simulation

Kanban Scheduling System

Global Production Center

● Benefits of the GPC

● Reduced training time

● Higher levels of achievement

● Efficiency of training

● Since January 2006, Toyota has opened regional GPCs in North America, Europe and Asia. In each region, Toyota commenced courses where trainees from each department are trained by local trainers to become trainers themselves.

● Since its establishment, GPC had trained approximately 14,000 people in 5 years.

Global Production Center● In order to strengthen manufacturing and promote localization of overseas production, Toyota

established the Global Production Center (“GPC”)

● Established in July 2003 as a development and training center for global human resources.

● The GPC is intended to introduce local managers to the Toyota methodology, allowing them to train their subordinates with the local management.

● GPC develops efficient training systems and formulaic, simplified and easy to understand methodology.

● One characteristic of the GPC is that managers and supervisors, new hires and experienced workers can all receive common skill training.

● GPC’s training system involves a pre-training phase where trainees learn basic skills and discover through image training the skills that they must acquire.

● This is followed by various steps, from basic skill training, elemental task training, to standard task training, which is a sure method of training.

Advanced Computer Simulation

 ● Toyota has introduced the use of sophisticated information technologies to improve each step of its vehicle development process, from product planning to commencement of mass-production.

● These technologies are intended to enhance flexibility, simplicity, quality, cost competitiveness, and speed. Specifically, detailed computer simulation of the assembly and test-run of a new vehicle or new vehicle production equipment or system is conducted before a prototype is made.

● An actual prototype is made only after defects and related issues have been identified and resolved by computer simulation, thereby minimizing the time required for rebuilding prototypes and significantly shortening the time required for production. Moreover, this system is used to prepare virtual factories and other visual aids in order to facilitate training and communication at overseas plants and enable the efficient transfer of necessary technology and skills.

 

Toyota Inventory Technology

Toyota utilizes an inventory control system known as the Kanban Scheduling System.

● The Kanban system allows for the company to minimize product overhead by only producing an explicit number of product that is guaranteed to be sold.

● Once a product is sold, a signal is sent to the manufacturer to produce another product.

● An issue with this system is the complete shutdown of factories during times of

recession.

Toyota Inventory Technology

 What is it that has made Toyota so competitive?

 ○ Many attribute Japanese manufacturing success to a

unique organizational structure called the Toyota Production System(TPS) or “lean work,” which also claims to improve quality and productivity while respecting workers’ rights.

  

 The Darker Side of TPS:

 Darius Mehri: A computer simulation

engineer who worked in a Toyota group company for three years, observing this system firsthand and conducting his own qualitative research on what he considers the true impact of lean work: the human cost.

  

 Western misinterpretation of TPS:  ○ "The Machine That Changed the World" ○ Darius Mehri was motivated by the inaccuracies of, "The

Machine That Changed the World: The story of Lean Production"

○ Corporate welfarists claim that Japanese companies have a unique labor-management relationship

○ paint TPS according to the numbers,with no regard to the worker.

○ The Darker Side of Lean: An Insider’s Perspective on the Realities of the Toyota Production System

   

TPS on paper: 

○ Toyota Production System works in a manner that increases profit, while also focusing on the people component.

○ Workers rewards:○ lifetime employment

○ encouragement

○ rewarded for innovation.

○ safety, training,family-typed manager \worker relationships

  

 Cultural Rules Dictate the Work Environment:

Three Cultural Rule Categories:1. written rules2. unwritten rules3. culturally learned rules

 2 Types of Rules:

1. formal2. informal

Japanese Culture & Business

● tatemae: what you are supposed to feel or do

● honne: what you actually feel or do  "international enthusiasm for theToyota Production System results from western observers’ failure to discern the honne within the tatemae."(Darius Mehri) 

 TPS in Practice:

 ○ optimizes profits○ disregards worker safety○ relies on fundamental elements of the Japanese

culture ○ threatens worker safety, bad manager/worker relations

TPS: Unethical Practices 

○ Design Espionage

○ Abusive Work Environment

 ○ Safety Scandals

 

Works Cited   

● http://astro.temple.edu/~rmudambi/Teaching/BA951/Week_04/Toyota-Darker-Side-Mehri.pdf ● http://web.mit.edu/2.810/www/lecture09/14.pdf● http://www.temple.edu/tempress/chapters_1400/1546_ch1.pdf● http://www.cnie.org/NLE/CRSreports/05apr/RL32883.pdf● http://www.strategosinc.com/toyota_production.htm● http://www.thetruthaboutcars.com/2011/02/toyota%E2%80%99s-secret-weapon-low-cost-car-

factories/