Blog CEKARE #6

The Toyota Production System

By Baptiste CARRE, 01/05/2025.

Time to read : 8 min

white sedan on road during daytime
white sedan on road during daytime

Today, lean management methodologies have become essential for organizations seeking to enhance efficiency, reduce waste, and improve overall performance. While lean has evolved into a global movement, its roots trace back to one groundbreaking system developed decades ago on the shop floors of Toyota: the Toyota Production System (TPS).

SUMMARY

The origins of the Toyota Production System.

The Toyota Production System wasn’t born overnight. It was the result of decades of observation, experimentation, and relentless pursuit of improvement by some of Japan’s most forward-thinking minds.

It all started with Sakichi Toyoda, a brilliant inventor and the founder of Toyota, initially in the textile industry. His creation of an automatic loom that stopped when a thread broke laid the groundwork for one of TPS’s core ideas: building quality directly into the process. This represented a radical idea at the time and introduced a new philosophy: when a problem occurs, stop immediately to fix it. This philosophy would later become known as Jidoka.

His son, Kiichiro Toyoda, took this mindset into the world of automotive manufacturing, establishing the Toyota Motor Corporation when Toyota shifted from textiles to cars in the 1930s. Kiichiro was determined not to copy Western mass-production methods blindly. Instead, he sought a system better suited to Japan’s reality with limited resources, high customer expectations, and a need for flexibility. This system rooted the Just-in-Time concept, producing to meet customer needs.

Later, Eiji Toyoda, a cousin of Kiichiro and a key figure in Toyota’s early automotive efforts, visited Ford’s factories in the U.S. in the 1950s. While he admired the efficiency, he saw room for improvement, particularly in terms of flexibility and quality.

Upon returning to Japan, he worked closely with Taiichi Ohno, a production engineer known as the father of the TPS. Taichi Ohno drew inspiration from American supermarkets (where shelves are restocked only when customers take items), from Japanese craftsmanship values, and from concepts implemented by the family to develop the Toyota Production System. This responsive and tailored system was designed to eliminate waste, empower workers, and produce exactly what the customer needs.

The core of TPS : Two pillars and a strong foundation.

The Toyota Production System is often visualized as a house supported by two main pillars: Just-in-Time and Jidoka, both built on a foundation of stability and continuous improvement.

The First Pillar: Just-In-Time (JIT).

At the core of Just-in-Time is a simple yet powerful idea: don’t produce anything unless there is a real demand for it. The goal is to produce only what is needed, when it is needed, and in the amount needed. This approach minimizes on-hand stock. Central to the Just-in-Time process is the Kanban system, which provides an automatic, real-time method to replenish parts at the line side while maintaining minimal stock.

This JIT approach helps avoid overproduction, reduces inventory costs, and keeps the system responsive. JIT relies on several important concepts:

  • Continuous Flow: This involves organizing workstations to allow for a smooth and uninterrupted flow of materials and products through the production line. By minimizing downtime and eliminating bottlenecks, continuous flow helps reduce lead times and improve overall efficiency.

  • Takt Time: Takt time refers to the rate at which a product needs to be completed to meet customer demand. It is calculated by dividing the total available production time by the number of units required by the customer.

  • Pull System: In a pull system, production is driven by customer demand rather than push-based production schedules. Each process in the production line produces only what is needed by the next process, ensuring that inventory levels are kept to a minimum and waste is reduced.

The Second Pillar: Jidoka.

Also known as "automation with a human touch", Jidoka involves designing equipment and processes so that machines can detect abnormalities and stop automatically when issues arise. This prevents defective products from continuing through the line and allows problems to be addressed where and when they occur, ensuring quality at every step of the process.

The implementation of Jidoka involves several key practices:

  • Andon Systems: Visual management tools, such as Andon boards, are used to signal when a problem occurs. These signals alert team members to issues that need immediate attention, facilitating quick responses and minimizing downtime.

  • Poka-Yoke: Also known as "mistake-proofing," Poka-Yoke involves implementing simple and effective mechanisms to prevent errors before they occur. This can include design features that make it impossible to assemble parts incorrectly or sensors that detect deviations from standard procedures.

This principle isn’t just technical; it’s deeply human. Workers are trusted and encouraged to stop production to solve problems, rather than hide them or pass them along. It creates a culture of responsibility and shared ownership for quality.

A strong and stable foundation.

While Just-in-Time and Jidoka are the pillars of the Toyota Production System (TPS), the system relies on a stable and solid foundation to function effectively. This foundation is built mainly on three key concepts: Heijunka, standardized work, and Kaizen.

  • Heijunka

Heijunka is the concept of leveling production, which involves smoothing out the production schedule to avoid peaks and valleys in demand. By leveling production, TPS helps reduce variability and improve efficiency, ensuring a consistent flow of work through the production line. Instead of producing in large batches when orders pile up, the goal is to produce smaller amounts more consistently.

  • Standardized Work

Standardized work involves establishing highly efficient and repeatable work processes. It focuses on documenting the most effective methods for performing tasks and ensuring they are done the same way every time. Capturing best practices ensures consistency and reduces variability.

  • Kaizen

Kaizen, which translates to "change for the better," is a concept deeply rooted in Japanese culture. It emphasizes that significant results are achieved not through massive changes, but through the accumulation of small, incremental improvements over time. Additionally, Kaizen encourages the idea that everyone, regardless of their role, can contribute to making things better.

Benefits of implementing TPS.

The principles of TPS were first applied in Toyota's automotive manufacturing processes, but their impact quickly spread beyond the automotive industry. The system's focus on efficiency, quality, and continuous improvement made it a model for manufacturing excellence worldwide. Today, TPS principles are applied in various industries, from healthcare to software development, demonstrating their universal applicability.

Implementing methodologies inspired by the Toyota Production System offers numerous benefits.

  • Quality Improvement

By focusing on eliminating waste and improving processes, TPS helps to enhance the quality of products. The system's emphasis on Jidoka and continuous improvement ensures that defects are minimized and quality standards are consistently met.

  • Cost Reduction

TPS helps to reduce costs by eliminating waste and improving efficiency. By minimizing inventory levels, reducing defects, and optimizing work processes, TPS enables organizations to lower production costs and increase profitability.

  • Short Lead Times

The Just-in-Time principle of TPS ensures that products are manufactured and delivered quickly, reducing lead times and improving responsiveness to customer demand.

  • Customer Focus

TPS is designed to meet customer requirements efficiently and effectively. By focusing on producing what is needed, when it is needed, and in the exact amount required, TPS helps to improve customer satisfaction and build long-term customer relationships.

  • Empowered Employees

TPS places a strong emphasis on involving workers in the improvement process, leading to increased job satisfaction and a more engaged workforce. By empowering employees to identify and eliminate waste, TPS fosters a culture of continuous improvement and innovation.

  • High Morale

The focus on employee involvement and empowerment in TPS leads to improved employee morale. By recognizing and utilizing the skills of the workforce in process improvement, TPS helps to create a motivated and dedicated team.

Applying TPS in your business.

You don’t need to be an automaker to use TPS. The principles can be applied in any organization, of any size or sector.

  • Map Your Processes

Start by looking closely at how your processes actually work. Where does time get lost? Where do tasks pile up? Mapping your workflow gives you a clear picture of what’s happening and where the problems are. You can’t fix what you can’t see.

  • Identify Value

Think from the customer’s perspective. What are they really paying for? Focus on the steps that add value for them, and question everything else. If something doesn’t help deliver that value, it’s a candidate for improvement or elimination.

  • Start Small

You don’t have to change everything at once. Choose one team or one product, and apply Just-in-Time or Jidoka there. Observe. Learn. Once the method is working well and delivering results, you can expand with more confidence. Starting small reduces risk and builds momentum.

  • Train and Involve Your People

TPS is a culture, working at its best when everyone is involved. Give all employees the knowledge, the space, and the possibility to contribute. They see the day-to-day issues more clearly than anyone else, and their input is essential for real change.

  • Commit to Kaizen

Continuous improvement is at the heart of TPS. It’s not about reaching perfection overnight. It’s about steady progress, one small improvement at a time.

Ready to take the first step ?

The Toyota Production System has revolutionized industries around the world, and it can do the same for yours. Whether you're looking to streamline operations, boost team engagement, or deliver more value to your customers, the principles of TPS provide a roadmap.


At CEKARE, we help businesses like yours apply Lean thinking and TPS-inspired methods to achieve sustainable growth. Let’s talk about how we can support your transformation.