The book (which, by the way, is included in the list of the best business books according to The New York Times) talks about the main production method of the Toyota company - the just-in-time system. Using an easy-to-follow style, Taichi Ohno draws parallels with Ford, explains how the Just-in-Time method came to be, and explains from every possible angle what it actually means. The book is small in size, the main goal of which is to explain in the most accessible form the essence of this method and everything connected with it. Secondly, despite the specificity of the topic, the material is selected in such a way that reading the book will be interesting for those who are not associated with this field.

At the very beginning of the book, the author writes that the entire Toyota production system, which is “focused on the complete elimination of losses,” is based on two main principles:
. Just-in-time principle;
. The principle of autonomation, or automation using intelligence.
Both principles are discussed in detail later in the book.

Autonomation principle

If the principle of “just in time” is constantly mentioned in the literature on management and business, then not a word is said about the principle of automation. Meanwhile, without this principle the entire Toyota system would not work. As Taichi Ohno writes, “autonomization changes the essence of machine operation. If the work process proceeds normally, the machine does not need an operator. Human intervention is required only when the machine stops due to a disturbance in the normal course of the process. Consequently, one operator can operate several machines. This reduces the number of operators and increases production efficiency.” As the author writes, in America there could be problems with this simply because workers would have to learn new skills, because... they would have to operate different machines. This would not be allowed by trade unions, which ensure that a person performs only one function of his profession. As Taichi Ohno writes about the United States: “Turners are only allowed to work on lathes. Drilling must only be carried out by a driller. Since machine operators have only one qualification, welding work requires moving parts from the turning area to the welding area. As a result, a lot of people and equipment are required.” Because of this, the American auto industry could not copy Toyota's production system. And the only way out is mass production.
Returning to Toyota, it is worth adding that as workers learned the different skills required to implement a just-in-time production system, changes were also introduced to the layout of the machines themselves. As Taichi Ohno writes, “In 1947, we arranged machines in parallel lines or at right angles (L-shape), so that one worker operated three or four machines.”
Approaching the issue of the just-in-time system itself, Taichi Ono writes that they were faced with the problem of overproduction of individual parts. It was to solve this problem that the first ideas for the “just in time” system were laid down. And as the author further writes regarding the overproduction of certain parts: “These losses had to be eliminated somehow, which meant the immediate cessation of the automatic supply of parts from previous production sites to subsequent ones without their request. So vital necessity forced us to change our production method.” To implement an idea that can stop overproduction and, consequently, the problem of storing additional parts, a “just in time” system was created. To implement it, a piece of paper is used on which information is written about: receipt of products, transportation and about the product itself. This piece of paper is called “kanban”.

Kanban

The Kanban system was created under the influence of American supermarkets. As the book says, “A supermarket is a place where the consumer can get, firstly, what he needs, secondly, at the right time, and thirdly, in the right quantity.” In general, this is the whole essence of the just-in-time system. A piece of paper or card is used to support this system without creating overproduction and minimizing defective products. However, there are 6 rules of kanban: “In accordance with the first and second rules, a kanban serves as an order for receiving, transporting or delivering a production order. The third rule prohibits purchasing or producing products without a kanban. The fourth rule requires that a kanban card be attached to the product. The fifth rule dictates that 100% of products be produced without defects (that is, it contains a ban on sending defective products to subsequent processes). The sixth rule encourages us to reduce the number of kanbans. When these rules are carefully followed, the role of kanban increases.”
And in conclusion, to summarize, the author recalls why this system was actually created. As he writes, “if there are too many inventories and the plant cannot cope with them, it is necessary to build a warehouse and hire workers to transport the products to the warehouse. Each worker will probably need their own transport dolly. The warehouse will require personnel to manage the warehouse and also to monitor the condition of the stored materials. Despite all this, a certain amount of stored products will rust and deteriorate. Because of this, additional workers will have to be hired to clean up the products before they are sent out of the warehouse for use. Products placed in the warehouse must undergo regular inventory. This will require additional workers. At some point, some employees will think about the need to buy computers for inventory purposes.
If the quantity of products in the warehouse is not well tracked, stock-out problems may arise. Therefore, even though there is a daily production plan, some employees will decide that the shortage reflects a lack of production capacity. As a result, the investment plan for next year will include a plan to increase production capacity. After purchasing additional equipment, there will be even more reserves.” It was in order to prevent such a scenario that the “just in time” system was introduced. For “the main goal in the fight against losses is to reduce costs by reducing labor and inventory, identifying additional equipment capabilities and gradually reducing indirect losses. No matter how you say it, implementing the Toyota Production System will be pointless without a full understanding of the importance of eliminating waste.”

Taiichi Ohno (February 29, 1912 - May 28, 1990) was a prominent Japanese businessman, chairman of the board of directors of Toyota Spinning and Weaving since 1978. Considered the father of the Toyota Production System.

Born in the Chinese city of Dairen. Graduate of Nagoya Polytechnic Institute.

Taiichi Ono was an employee of the Toyota Corporation and gradually rose through the ranks to become the head of the company. As an engineer, Taiichi Ohno developed the Kanban inventory management and production organization system, lean manufacturing (Lean method), and the Just-in-time method. The company still adheres to this system.

In 1932, after graduating from college, he began working at Toyoda Boshoku (Toyoda Spinning and Weaving), and in 1943 he moved to the Toyota Motor plant and began improving the car production process. At Toyota, Taiichi Ohno pioneered an innovative problem-solving system that became the core of the Toyota Production System. He was appointed head of the machine shop in 1946, which later became the laboratory where the kanban system was invented and the flow production system was developed.

In 1949, Taiichi Ono was promoted to head of the machine shop, a director in 1954, managing director in 1964, senior managing director in 1970, and executive vice president of the company in 1975. He left Toyota in 1978, but continued to work in consulting. In addition, after leaving Toyota, he served as an advisor to Toyoda Gosei and was on the board of directors of Toyoda Boshoku, the company where he began his career.

In the early 1950s, when Kiichiro Toyoda died, Taiichi Ono conceived and then created a production management system (“kanban”), revolutionary for those years, with the help of which the Japanese were able to eliminate any type of waste from the production process. In the mid-1950s, he began to build a special production organization system called the Toyota Production System or Toyota Production System (TPS). Scientific developments, both in the field of management and technical re-equipment, have always been highly valued at this enterprise. The 50s are the years when Toyota is most active in this area.

Taiichi Ohno has written several books, the most famous of which bears the name of his brainchild, “The Toyota Production System: Moving Away from Mass Production.” Taiichi Ono presents the thoughts and ideas of three 20th-century managers—Henry Ford, Sakichi Toyoda, and Kiichiro Toyoda.

Ono, Taichi (1912-1990), Ohno, Taiichi

1. Introduction
2. Biographical information
3. Main contribution
4. Evaluation
5. Conclusion

Brief biographical information

born February 1912, Port Arthur, Manchuria, China;
in 1932 he graduated from the mechanical engineering department of the Nagoya Higher Technical School;
in 1932 he entered theToyoda Spinning and Weaving Company ;
in 1942 he moved to Toyota Motor Company;
in 1949 he was appointed head of the mechanical shop;
in 1964 appointed executive directorToyota Motor Company;
in 1975 he became vice president of the company;
retired in 1978 and became chairman of the board of directorsToyoda Gosei, one of the suppliersToyota Motor Company;
died in 1990

Main works

Toyota Production System: Beyond Large-Scale Production (1988)
Just-in-Time For Today and Tomorrow (1988)

Summary

Taichi Onoconsidered the creatorToyota Production System (TPS) (Company Production SystemsToyota). This innovative approach to production simultaneously reduces costs, improves quality and reduces wasted time. He played an important role in the successful developmentToyotaMotor Companyand has become widespread in many countries around the world under the name of the “just in time” production method.
In processTPST. Ono demonstrated a combination of missionary zeal with engineering pragmatism. He had an idealized vision of production as a continuous process of moving products around the plant between different sections and workshops, during which there is no what T. Ono himself called “unjustified costs.” In this concept, he included all activities that do not lead to an increase in the value of the product (for example, moving products, checking them, and especially stockpiling). For thirty years, from 1945 to 1975, T. Ono systematically sought to eliminate any unjustified costs. The set of methods he developed to achieve this goal formed the basis of his effective and holistic system of measures, calledTPS.

1. Introduction

Transition Taichi Ono in 1942 Toyota Motor Companyhad unusually happy consequences. There he turned out to be the right person, in the right place at the right time. In post-war Japan, demand for automobiles was low, the cost of raw materials and components was high, and labor productivity was low. However, in 1945, the company presidentToyotaKiihiro Toyoda launched a campaign under the motto “Catch up with America.” Such a task seemed completely unrealistic to many, since at that time the labor productivity of American automakers was about ten times higher than that of Japanese ones. T. Ono himself understood that such a gap in labor efficiency indicators could not be explained only by differences in the physical effort applied. He came to the conclusion that the reason for the lag was the use of uneconomical production methods in Japanese enterprises, therefore the desire to eliminateToyotaany unjustified expenditure of resources became the main goal of his life.

2. Biographical information

Taichi Ono is born in 1912 in the Chinese province of Manchuria. In the spring of 1932, he graduated from the mechanical engineering department of the Nagoya Higher Technical School. At that time, it was difficult for graduates to find work, but fortunately T. Ono's father knew Kiihiro Toyoda, the presidentToyoda Spinning and Weaving Compan . Under his patronage, T. Ono was accepted into the company immediately after defending his diploma. He worked for ten years as a textile machinery engineer and gained valuable manufacturing experience during a period in which the Japanese textile industry was making significant strides in becoming competitive in global markets through improved production methods and lower costs. In 1942, T. Ono moved to another enterprise of the Toyoda family -Toyota MotorCompany, which received a changed name on the recommendation of one of the marketing consultants.
Ten years of experience in his previous place turned out to be extremely useful for T. It was extremely useful, since the automotive industry, including the enterpriseToyota, at that time lagged significantly behind the textile industry in terms of productivity improvements. T. Ono began to create his ownTPS, while still in the position of foreman of a mechanical shop. He was deeply impressed by two concepts (which he called “pillars of wisdom”) developed by Kiihiro Toyoda as part of his “Catch Up with America” campaign. The first concept implied the synchronization of the movement of units of assembled products: all parts had to arrive at the assembly sites exactly on time and in the required quantity. The second concept was “autonomization” or automation using human control methods: machines had to be equipped with control devices to ensure that all manufactured parts met the technical requirements. If such a device detected a deviation of the part from the standard, then it gave a special signal to the operator.
The “pillars of wisdom” created by K. Toyoda helped T. Ono well in realizing his desire to save resources and became the cornerstones of his production organization system. System implementationTPScontributed to a significant increase in labor productivity in enterprisesToyota, and its creator quickly climbed the steps of the career ladder. In 1954, he became one of the company's directors, in 1964, its managing director, and in 1975, its executive vice president. In 1978, T. Ono left all his posts inToyotaand retired. However, in the same year he was elected chairman of the board of directors of the companyToyoda Gosei, part of the supplier groupToyota. T. Onodied May 28, 1990

3. Main contribution

Figuratively speaking, it can be argued that T. Ono “stood on the shoulders " The mass production system created by H. Ford in the early 1900s required a decisive rejection of the labor methods that prevailed at that time, based on the high individual skill of workers. eliminated the need for skilled labor by dividing the labor process into simple operations, which made it possible to involve many unskilled workers in production, each of whom was responsible for performing a small, standardized part of the overall technological process. The emphasis on the flow nature of production operations was further developed in the creation of assembly conveyor lines.
In the years after World War II, the Ford system was the standard for ensuring the competitiveness of manufactured cars, but it was necessary to make certain changes taking into account the characteristics of the companyToyota. The focus on long-term production of the same model, characteristic of G. Ford's system, was unacceptable for Japan, where the automobile market was extremely small, and, in addition, limited local resources made it impossible for Japanese firms to create large inventories. Company production systemToyota (TPS) arose as a result of attempts to adapt G. Ford's mass production system to the economic realities of post-war Japan.
The main difficulty I encounteredT. Ono, was the need to overcome economies of scale through greater flexibility or “economies of scale.” This goal had to be achieved without creating large inventories, which were required for the uninterrupted operation of Ford assembly lines in the face of possible delays in delivery, equipment breakdowns, or the receipt of defective components. The value of T's contribution lies in the way he managed to cope with this problem.
Due to a sharp reduction in the changeover time of machines and assembly linesToyotawas able to continuously produce small batches of cars of various models. This “continuous production of different models” made it possible to reduce the required inventories, expand the ability to customize products and reduce lead times. To ensure continuity of production without creating large reserve stocks, special programs were developed to support the systemic resolution of production problems (“General Preventative Maintenance of Equipment”, “Total Quality Management”, “Continuous Improvements”, “Autonomization”, “Just-In-Time Component Deliveries”).
The innovative solution to the problem proposed by T. Ono made it possible to improve G. Ford's mass production system and achieve an increase in its efficiency and flexibility, which had a positive impact on the production of constantly repeating small batches of various product modifications. Because theTPSIt reduces inventories and does not require large capital investments; it can also be used by small firms seeking to take advantage of the benefits of continuous production. This seems especially important since 75% of manufacturing firms cannot be classified as mass production.
Philosophy of T. Onoregarding developmentTPSchanged the approaches of production system designers to solving their immediate problems. His tireless pursuit of process improvement, the struggle to produce “defect-free goods” while completely eliminating unnecessary waste of any kind of resources, is an impressive example of improving existing production methods. However, on the path to any improvement, problems inevitably arise.Philosophy of T. Onoallows you to cope with most of them by identifying and eliminating the causes that gave rise to them:
Under the external causes of the problem, it is hiddenreal reasons . In each case we must get to the root cause by asking ourselves again and again,Whyit arose. Otherwise, we will not be able to take any countermeasures and, in fact, the problem will remain unresolved (1988b: 126).

From the point of view of T. Ono, repeated repetition of the questionWhymay lead to an understanding ofHowyou can deal with the problem that has arisen. His focus on finding fundamental solutions contrasts sharply with the prevailing idea of ​​the need to overcome short-term symptoms of ill-being (“to ensure continuation of work”). As a result, it led to one of his most famous recommendations - giving workers the right to stop working if a serious problem arose until it was identified and completely eliminated. T. Ono recognized that “keeping things going” by using random resources takes away many of the incentives for managers to look for the real roots of the problem. Suspension of production is a very effective way of drawing the attention of managers to the problem and developing a sense of responsibility in them to find ways to solve it in the long term.

4. Evaluation

Active implementationTPSin industry, it helped establish new standards for product quality and production costs, benefit consumers and improve living standards. The new system made it possible to sharply reduce the inventories needed to carry out the production process, which, in turn, reduced the impact of inventory fluctuations on the amplitude of the business cycle and, thus, strengthened economic stability.Innovative thinking T. Ono influenced a whole generation of production theorists and practitioners, providing them with both effective methods for organizing technological processes and a reliable ideological basis for the continuous implementation of improvements.
For workers implementationTPSprovides reasonable organization of their workplace, relative freedom from the negative impact of production problems and the opportunity to participate in the continuous process of improving the company's activities. However, using this system also has its downside. In particular, there is a lot of evidence of the occurrence of psychological stress among workers responsible for completing production tasks on time, especially in the automotive industry. On the other hand, establishing tight schedules when developing and executing operations on a precise deadline does not correspond to the fundamental ideas of T. Ono. For example, he always opposed the practice of increasing assembly line speed: “ never intended for workers to work with greater and greater intensity, to feel dependent on the pace of machinery and alienated from the results of their activities... however, the implementation of these ideas was not always carried out as their author wanted” (1988b: 100 ).
However, there is evidence of tension between T. Ono's enlightened view of human resource issues and his passion for minimizing production waste. W. Horsley and R. Buckley claim that the companyToyota“The workers lived in fear of Taichi Ono. ...He presented himself to his subordinates as a man who came into the world with a special mission” (Horsley and Buckley, 1990: 156). Obviously, his sense of mission led him to use stress-inducing techniques such as removing a few workers from a slow-moving assembly line to stimulate the search for and implementation of process improvements. It is obvious that the methods of completing work tasks on a precise deadline potentially contribute to the occurrence of stressful situations. However, managers introducing such methods must, in accordance with the philosophy proclaimed by T. Ono, proceed from the safety and well-being of workers.

5. Conclusion

Apparently Taichi Ono will take a place in the history of production organization on a par with such giants as And . Similar to H. Ford’s “mass production” and F. Taylor’s “scientific management method”, proposed by T. OnoToyota Product Systemrepresented a significant advance over the dominant production practices of the time. According to Thomas Kuhn, the T system represents a “paradigm change” - a new standard for organizing production, making possible a sharp increase in labor productivity and product quality (Kuhn, 1970).
However, like systems And , TPSmay have a negative impact on workers. Enterprise managers, trade unions and workers must take joint care to ensure that the introduction of an innovative approach to the problem of ensuring high quality products and low production costs does not harm the welfare and well-being of workers.

Thanks to its signature production system, Toyota is the most profitable and fastest-growing company in the world. Maybe that’s why the abbreviation TPS received another decoding:

TPS House Blueprint (Tools and Principles)

The TPS House diagram was developed by Taiichi Ohno and E. Toyoda specifically to make it easier to explain the Toyota Production System to employees and suppliers. According to the developers, the shape of the house (roof, columns and base) was used deliberately because it is understandable to everyone and symbolizes stability and solidity.

Foundation of the "TPS building"— 3 principles: Heijunka, Kaizen and Standard work.

Heijunka- organization of “smoothing” of the production plan, in which orders are fulfilled in cycles, and daily fluctuations in the level of orders are reduced to their value in the long term. For example, if a customer ordered 200 pieces of product A, 200 pieces of product B and 400 pieces of product C in a week and wants to receive them in batches of 200, 200 and 400 pieces respectively, after smoothing these products will go into production in the following sequence: A, C, B, C, A, C, B, C, A, C and so on. Likewise, if a customer wishes to pick up his weekly order of 800 pieces in batches of 200 pieces on Monday, 400 pieces on Tuesday, none on Wednesday, 100 on Thursday and 100 on Friday, after smoothing the production schedule the plant will produce 100 pieces each day in the following sequence: A, C, A, B and so on. Some types of smoothing are inevitable in any type of production: both mass and lean (unless the company and all its suppliers have infinite productivity and zero changeover time). Lean manufacturing focuses on creating excess production capacity over time by freeing up resources and reducing changeover times. At the same time, the emerging discrepancies between heijunka and real demand are minimized, which is greatly facilitated by the process of “sales smoothing” (level selling).

Kaizen- continuous, continuous improvement of activities in order to increase value and reduce waste.

Standard work is a precise description of each activity, including cycle time, takt time, the sequence in which certain tasks are performed, and the minimum amount of inventory to complete the work.

Windows "Buildings"- TPS tools. Among them are 5S, Kanban, SMED, TPM, 3P and the system for collecting creative ideas and proposals - the main tool of Lean Manufacturing, ensuring the process of continuous improvement.

5S— five steps for effective organization of the workspace and standardization of personnel actions, based on visual control, are:

• Sort - separate necessary tools, parts and documents from unnecessary ones;
• Systematize: arrange and label parts and tools at the workplace so that it is convenient to work with them;
• Sanitize: keep the workplace clean;
• Standardize: follow the previous 3 rules regularly (for example, every day) to keep the workplace in excellent condition;
• Self-discipline is a special point, since it is no longer an action, but a state that is maintained through the habitual implementation of the first four “Cs”.

You can find standard instructions, templates, and the best practices of enterprises in practical guide to implementing 5S .

Visual control- such arrangement of tools, parts and production status indicators in which everyone can understand the status of the system at first glance.

Kanban— a simple pull-through production management system using task cards transmitted to performers.

Quick replacement of molds (SMED - Single Minute Exchange of Dies)— technique for reducing time for readjustment of production equipment.

Total Productive Maintenance (TPM)- a set of methods that originated in the Nippondenso company (part of the Toyota group) and aimed at ensuring that each machine is always in working order and production is never interrupted.

Optimization technology for production preparation (Production Preparation Process, 3P)— Rapid redesign of the production process and equipment layout in order to ensure guaranteed equipment performance and quality. 3P minimizes the amount of resources needed, such as capital, the number of tools and fixtures used, space and time required to carry out the production process.

System for collecting creative ideas and proposals— the main tool for maintaining the process of continuous improvement (Kaizen). The most popular way to collect suggestions is through quality circles.

Determining the value and types of losses

The idea of ​​Lean Manufacturing is that any action in the enterprise is checked whether it creates value for the Consumer or not. The main goal of Lean Manufacturing is to eliminate waste—actions that do not create value. All over the world, losses began to be called the Japanese word muda, which means any activity that consumes resources but does not create value. To do this, actions should be divided into three categories:

• activities that create value;
• actions that do not create value, but are inevitable, for example due to technological reasons, such as checking the quality of welds (muda of the first kind or losses);
• actions that do not create value, which can be immediately excluded from the process, for example, distant and inconveniently located tools, parts (muda of the second kind or harm).

For ease of detection, the Japanese divided losses into seven types, later the Americans added an eighth:

1. Overproduction, i.e. premature or excessive production of products beyond what is required at the next stage of the process.
2. Loss during transportation- unnecessary, unnecessary transportation of materials, semi-finished products, finished products.
3. Movement- any movement (movement) of people, tools or equipment that does not add value to the final product.
4. Expectation— interruptions in work caused by waiting for things such as human resources (labor), materials, equipment or information.
5. Additional (unnecessary) processing- additional effort that does not add value to the consumer.
6. Excess inventory- any excess supply of raw materials and materials into the production process.
7. Defective product- products requiring inspection, sorting, disposal, downgrading, replacement or repair.
8. People- incomplete use of human mental, creative abilities and experience, absenteeism.

Even with the American addition, the Japanese classification lacks completeness and logical completeness. Therefore, during the development of a proprietary production system at the KAMAZ Automobile Plant, a classification was proposed based on six fundamental resources, from the point of view of their deficiency and excess, and the designations were proposed:

Classification based on six fundamental resources

Method 6S

A similar approach requires adding one more step to the well-known 5S methodology as the fourth stage - “maintain dynamic order” - the embodiment of the well-known rule: “clean not where one sweeps, but where one does not litter.” This is especially true for tools: don’t make them look for them - put them in their place or leave them in plain sight. An addition to the 5S methodology was made during seminars for managers of KAMAZ-Metallurgy LLC.

The 6C technique will help you get rid of waste in the workplace

№	Japanese term	Russian term	English term	Translation of English term	Contents of the activity
1	Seiri	Sort (organization)	Sort	Disassemble, classify	Removing unnecessary
2	Seyton	Systematize (order)	Set in Order (Straighten)	Put in order	Organizing the placement of items
3	Seiso	Sanitize (cleanliness)	Shine (Sweep)	Clean (sweep)	Cleaning the workplace, eliminating sources of pollution
4	?	Maintain dynamic order	Save	Keep	Continuous maintenance of order during work
5	Seiketsu	Standardize (neatness)	Standardize	Standardize, Normalize	Standardization of rules for cleaning, organizing, cleaning
6	Sitsuke	Self-discipline	Sustain (Self-discipline)	Maintain (self-discipline)	Formation of the habit of maintaining cleanliness and order

Value Stream Mapping (VSM-M)

The key tool in TPS is the value stream map VSM (value stream mapping), which, with the use of new notations, becomes more convenient for building the KAMAZ production system.

Rules for Value Stream Mapping (VSM-M)

AS IS (Current State Map)

HOW IT SHOULD BE (Future State Map)

As a result of building a map of the future state, it became clear that Cycle Time (how often the process “produces” a part or product) can be reduced by more than 2 times. The share of Value Creation Time (the time of operations or actions as a result of which the product is actually given properties for which the client is willing to pay) will increase significantly.

To reduce cycle time, a program is being drawn up to reorganize production into a compact, loss-free flow of single products. A convenient tool is " REPORT A3 SIZE(See The Illustrated Glossary of Lean Manufacturing, edited by Chet Marchwinski and John Shook), which includes VSM-M and as-is, to-be layouts, takt, cycle, and in-production time calculations, and also a Gantt chart with stages of production improvement.

All these are part of the processes of describing the Standard Work and smoothing the flow (Heijunka), symbolized by the appearance at the workplace INDIVIDUAL VISUAL WORKING INSTRUCTIONS and andons (visual process monitoring tools that display current status data and alert you to urgent problems).

You can find standard instructions, templates and algorithms for starting a LEAN project inpractical guide to implementing lean manufacturing .

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Ffederalstatebudgeteducational

Uinstitutionhigherprofessionaleducation

St. Petersburgstatepolytechnicuniversity

FacultyEconomicsAndManagement

Department:"EconomyAndmanagementreal estateAndtechnologies"

CoursesOuchproject

Discipline: Management

Subject: Taiichi Ono. Toyota Production System. Management principles

St. Petersburg - 2013

• Introduction
• Toyota Company
• Toyota Production System
• Toyota Tao Principles
• Conclusion
• Bibliography
• Introduction
• The theoretical foundations of management grow from the immediate needs of organizations and industries. Theory follows practice. The experience of many leading global companies, which at one time were pioneers in the implementation of management systems, is now being adopted by many small, medium and large companies. Management systems have long gone beyond the industries in which they arose and were first applied.
• One such innovative company is Toyota Motors. Today, Toyota Motors is one of the three leading automobile companies in the world.
• Over the years, Toyota has been characterized by:

· the volume of profit, as well as the market capitalization of the company, exceeds the corresponding aggregate indicators of all its closest competitors (General Motors, Ford, Chrysler);

· the rate of profit growth is on average twice as high as sales growth (there is a systematic increase in profitability);

· Toyota's sales growth significantly exceeds the dynamics of its main competitors.

The purpose of the course project was to review the activities of Toyota and identify the principles of company management.

The objective of the project was to study and analyze the book “The Toyota Production System” by Taiichi Ohno.

CompanyToyota

Toyota now produces over 45% of its products at its 46 factories located outside Japan - in almost all parts of the world, including Africa. Moreover, the share of foreign production in the company has doubled over the past 10 years, demonstrating rapid growth. At all factories abroad, mainly local personnel are used, with the involvement of Japanese managers in key positions in management at the first stages. All factories, without exception, have a developed system of continuous training (TPS) (Toyota Production System, the primary source of the Lean Production concept that later emerged in the USA), which not a single employee bypasses. So Kenya, Venezuela, Pakistan, the USA are also not Japan, but Toyota manages to maintain its culture everywhere.

The Toyota automobile company grew out of the family business of the Toyoda family. Sakichi Toyoda made his first wooden loom, which was followed by the opening of the Toyoda Spinning and Weaving mill. In 1911, Sakichi Toyoda went to travel to Europe and America, after which he returned to the factory with the idea of ​​​​organizing automobile production. Soon he invented a machine that could turn off at the slightest malfunction. This was necessary to achieve a minimum of losses and defects. As soon as something went wrong in the process, the machine immediately turned off. This event marked the beginning of the idea of ​​zero-defect production and laid the foundation for Toyota's first operating principle: autonomy, that is, automation using intelligence.

In 1929-1930 Sakichi Toyoda's son Kiichiro Toyota sold the patent for one of the machines to Platt Brothers. With the proceeds, on behalf of his father, Kiichiro founded a car company in 1930.

Very soon the Second World War began. The country was in ruins. The plant practically ceased to function. Everything had to start over.

In 1942, the weaving factory was closed, and the workers were transferred to car production. In 1943, one of these workers became Taiichi Ohno.

Taiichi Ono in 1932 Graduated from the Faculty of Mechanical Engineering at the Nagoya Technical High School and began working at the Toyoda Spinning and Weaving factory. Finding yourself at a Toyota Motors plant? For a long time he headed the mechanical shop of the Koromo plant. The plant needed a new look and a strong hand capable of leading the company out of its current situation. These are precisely the goals that were set for Taiichi Ono.

Over the next 30 years, he was able to develop and implement the Toyota Production System, which grew into a management system that is now adopted by many companies around the world.

In the 1940s, the American way of life with all its innovations was very popular in Japan. Taiichi Ohno paid attention to supermarkets, where customers bought the goods they needed, in the right quantity, at the time they needed. The fundamental principle of “just in time” was implemented here.

Already in 1953, Taiichi Ono used such a system in production in the machine shop at the head plant of Toyota Motors.

In consistent steps, this man implemented the Toyota system throughout the company as a whole. In addition, according to the principles of the new system, also in relations with external partners.

Toyota Production System

The Toyota Production System (TPS) was later called Lean Production, or “lean production”. The main goal of creating such a system was to minimize the use of labor and implement the idea of ​​defect-free production.

According to Taiichi Ohno, waste occurs when one product is produced in large quantities, so it is necessary to ensure that one product is produced only once. This is why it is much more efficient to produce a large range of products in small batches. This is how Toyota began to work.

TPS is based on two principles:

1. “just in time”

2. principle of autonomy.

The first thing that was done under the new system was to reduce the number of workers in production. These measures caused discontent among the staff and even forced the plant director to resign, but workforce reduction is one of the pillars of the Toyota system and was therefore necessary to implement. One person was now responsible for several machines. Workers have become less specialized, but more skilled. All machines were automated: they contained safety mechanisms, precise stopping systems, devices for quick changeover, and foolproof devices (baka-yoke) to prevent errors. Thus, the worker’s role was to re-adjust or eliminate errors that occurred in the operation of the machines.

Another stage was a rethinking of the principle of information transfer. So the production process was considered in the opposite direction, on the basis of which the “kanban” system was invented and implemented. That is, the “just in time” principle was implemented as follows: from the final assembly stage to the previous one, and so on until the materials procurement department itself. Thanks to such a system, only the necessary materials, parts and components were supplied at the right time.

These measures allowed the company to avoid the existence of inventories and overproduction as the reason for the increase in these inventories.

Then another aspect grew - visual control. Visual control, or control by signals, allows you to identify shortcomings in the production of each element separately, as well as take measures to enhance the quality of other elements. Effective work combines good group work and individual skills. Managers and supervisors at each production site were responsible for the implementation of autonomy. They had to coordinate and train the staff. According to Ono, training should take 3-4 days, which is quite enough for a worker who knows his job.

Human potential is of great importance in the system. It is all built on respect for people and their work. Attention was focused on the education and formation of disciplined, responsible, highly professional workers, specialists, and leaders.

Accordingly, the determining factors were the development of human creativity, ensuring the most fruitful work, the correct operation of machines and equipment and the prevention of any unnecessary costs.

Losses arise, for example, from overproduction and the production of defective products. One of the most important steps towards eliminating losses was the identification of losses, which revealed

Losses due to overproduction

Lost time due to waiting

Loss due to unnecessary transportation,

Losses due to unnecessary processing steps,

Losses due to excess inventory,

Losses due to unnecessary movements,

Losses due to the release of defective products.

Since efficiency within Toyota meant reducing costs, increasing efficiency only makes sense if it is associated with cutting costs. To achieve this, it is necessary to produce only as much product as possible using the minimum amount of labor.

To do this, it is necessary to first check the efficiency of each operator and each machine line, then the efficiency of the site managers and, finally, the efficiency of the entire plant. Maximum efficiency should be achieved not only in each individual area, but also throughout the enterprise as a whole.

Kanban became a tool for implementing the production system concept. This is a system of cards that contain requirements or instructions for each department.

The Kanban system, that is, a system of cards and pointers, allows

· deliver only what is needed at the right time,

solves the problem of overproduction,

· draws attention to the need to eliminate losses.

The figure shows an example of such a card.

rice. 1. Example of Kanban for working with external suppliers

In accordance with the needs of production, kanban has its own functions and, accordingly, rules for use. Violations of these rules lead to the occurrence of defects and, as a consequence, increased losses.

The functions and rules for using Kanban are presented in the table below.

Table 1. Kanban functions and rules for its use

The causes of defects may be insufficient standardization and rationalization, inconsistency, inappropriateness in work methods and in the distribution of working time.

The next stage of the production system is production leveling. The goal is not to produce more, but to avoid using highly specialized equipment. The equipment must be designed, but each subsequent unit produced is different from the previous one. This also means 100% equipment utilization. Leveling production allows the company to remain flexible in any situation of changing market demand.

An important element of the Toyota production system is personnel policy and work with personnel. Managers and supervisors are empowered to support subordinates. The company values ​​the craftsmanship and art of the craftsman; at each individual place, the worker performs many functions and is responsible for the area entrusted to him. In this way, the principle of local responsibility is implemented.

All workers’ actions can be divided into losses and work (Fig. 2):

· losses are useless repetitive actions that must be immediately eliminated (downtime),

· work: creating and not creating added value

o work that does not add value may be considered waste.

o work that creates added value - type of processing - changing the appearance or shape of individual parts or assemblies.

Rice. 2 Division of worker actions

The Toyota system considers the following indicators in production:

· takt - the length of time in minutes and seconds that is required to produce one unit of product. it is calculated as the reciprocal of the required volume of production.

· actual time fund - time spent daily on production.

Accordingly, the value of a machine is determined not by its service life or age, but by the capability it still retains.

Among other principles of the production system, aspects such as

standards should not be imposed from above,

· if standards are not adjusted effectively, this will lead to losses and defects,

preventive measures and maintenance are an integral part of TPS,

· for each problem it is necessary to select a specific countermeasure,

· information is selected and processed not by the system itself, but by people with a creative approach to the matter,

· Employees constantly make many proposals for rationalization.

In the framework of the formation of a production system, the use and formulation of a set of standard operations is not the easiest task, but this aspect requires special attention, since it is this aspect that can, as an integral part, make the system operate effectively.

Toyota Tao Principles

Based on the principles of functioning of the production system, a management system was formed. The main postulates of which are presented below.

All principles of the Toyota system can be divided into four groups:

Long term philosophy

The right process produces the right results (using TPS - lean manufacturing tools),

Add value to the organization by developing your employees and partners,

Constantly solving fundamental problems stimulates lifelong learning.

So, let's look at all four groups in turn.

1. Long term philosophy

Principle 1: Make management decisions with a long-term perspective, even if this is detrimental to short-term financial goals.

*Use systematic and strategic approaches when setting goals, and all operational decisions should be subordinated to this approach. Realize your place in the history of the company and try to take it to a higher level. Work on the organization, improve and rebuild it, moving towards the main goal, which is more important than making a profit. A conceptual understanding of your purpose is the foundation of all other principles.

*Your main task is to create value for the consumer, society and the economy. When assessing any type of activity in a company, consider whether it solves this problem.

*Be responsible. Strive to control your destiny. Believe in your strengths and abilities. Be accountable for what you do, maintain and improve the skills that allow you to produce added value.

2. The right process produces the right results.

Principle 2: A continuous flow process helps identify problems.

*Reengineer the process to create a continuous flow that effectively adds value. Minimize the amount of time unfinished work sits idle.

*Create the flow of products or information and establish connections between processes and people so that any problem is identified immediately.

*This flow must become part of the organizational culture, understandable to everyone. This is the key to continuous improvement and development of people.

Principle 3: Use a pull system to avoid overproduction.

*Make sure that the internal consumer who accepts your work gets what he needs at the right time and in the right quantity. The basic principle: in a just-in-time system, the stock of products should be replenished only as they are consumed.

*Minimize work in progress and stockpiling of inventory. Keep a small number of items in stock and replenish these stocks as customers pick them up.

*Be sensitive to daily fluctuations in consumer demand, which provide more information than computer systems and charts. This will help avoid losses due to the accumulation of excess inventory.

Principle 4. Distribute the workload evenly (heijunka): work like a tortoise, not like a hare.

*Eliminating waste is only one of the three conditions for success in lean manufacturing. Eliminating overload of people and equipment and smoothing out uneven production schedules are equally important. This is often not understood in companies that are trying to apply lean principles.

*Work to distribute the load evenly in all processes related to production and service. This is an alternative to alternating rush jobs and downtime, characteristic of mass production.

Principle 5: Make stopping production to solve problems part of the production culture when quality requires it.

*Quality for the consumer determines your value proposition.

*Use all available modern quality assurance methods.

*Create equipment that can independently recognize problems and stop when they are identified. Develop a visual system to notify the team leader and team members that a machine or process requires their attention. Jidoka (machines with elements of human intelligence) are the foundation for “embedding” quality.

*Ensure that the organization has a support system in place to promptly resolve problems and take corrective action.

*The principle of stopping or slowing down the process should ensure that the required quality is obtained “the first time” and become an integral part of the company’s production culture. This will improve process productivity in the long term.

Principle 6. Standard tasks are the basis for continuous improvement and delegation of authority to employees.

*Use stable, repeatable work methods to make results more predictable, improve teamwork, and produce more consistent output. This is the basis of flow and pull.

*Capture the accumulated knowledge about the process, standardizing the best methods at the moment. Do not discourage creative expression aimed at raising the standard; consolidate what you have achieved with a new standard. Then the experience accumulated by one employee can be transferred to the one who replaces him.

Principle 7. Use visual inspection so that no problem goes unnoticed.

*Use simple visual aids to help employees quickly identify where they are meeting the standard and where they have deviated from it.

*You should not use a computer monitor if it distracts the worker from the work area.

*Create simple visual control systems in workplaces that promote flow and pull.

*If possible, reduce the length of reports to one sheet, even when it comes to major financial decisions.

Principle 8: Use only reliable, proven technology.

*Technology is designed to help people, not replace them. It is often worth doing the process manually first before introducing additional hardware.

*New technologies are often unreliable and difficult to standardize, compromising flow. Instead of using untested technology, it is better to use a known, proven process.

*Before introducing new technology and equipment, tests should be carried out in real conditions.

*Reject or change technology that goes against your culture and may disrupt stability, reliability, or predictability.

*Still, encourage your people to keep an eye on new technologies when it comes to finding new ways. Quickly implement proven technologies that have been tested to improve flow.

3. Add value to the organization by developing your employees and partners

Principle 9. Develop leaders who thoroughly know their business, profess the company's philosophy and can teach it to others.

*It is better to develop your own leaders than to buy them from outside the company.

*A leader must not only complete the tasks assigned to him and have the skills to communicate with people. He must profess the company's philosophy and set a personal example of how to do business.

*A good leader must know the day-to-day work like the back of his hand, only then can he become a true teacher of the company's philosophy.

Principle 10: Develop exceptional people and build teams that embrace the company's philosophy.

*Create a strong, sustainable work culture with lasting values ​​and beliefs that everyone shares and accepts.

*Train exceptional people and teams to operate in a corporate philosophy that produces exceptional results. Work tirelessly to strengthen your production culture.

*Form cross-functional teams to improve quality, productivity and flow by solving complex technical problems. Arm people with the tools to improve the company.

*Relentlessly train people to work as a team towards a common goal. Everyone should learn to work in a team.

Principle 11: Respect your partners and suppliers, challenge them and help them improve.

*Respect your partners and suppliers, treat them as equal participants in a common cause.

*Create conditions for partners that stimulate their growth and development. Then they will understand that they are valued. Set challenging tasks for them and help them solve them.

4. Constantly solving fundamental problems encourages lifelong learning.

Principle 12. To understand the situation, you need to see everything with your own eyes (genchi genbutsu).

*When solving problems and improving processes, you must see what is happening with your own eyes and personally verify the data, and not theorize by listening to other people or looking at a computer monitor.

*Your thoughts and reasoning should be based on data that you have verified yourself.

*Even representatives of the company’s senior management and department heads must see the problem with their own eyes, only then the understanding of the situation will be genuine and not superficial.

Principle 13. Make a decision slowly, based on consensus, after weighing all possible options; when implementing it, do not hesitate (nemawashi).

*Do not make a definitive decision on a course of action until you have weighed all the alternatives. When you have decided where to go, follow the chosen path without delay, but be careful.

*Nemawashi is a process of collaborative discussion of problems and potential solutions in which everyone participates. His task is to collect all the ideas and develop a common opinion on where to move next. Although this process takes quite a lot of time, it helps to carry out a larger search for solutions and prepare conditions for the prompt implementation of the decision made.

Principle 14: Become a learning structure through relentless self-reflection (hansei) and continuous improvement (kaizen).

*Once the process has stabilized, use continuous improvement tools to identify the root causes of inefficiencies and take effective action.

*Create a process that requires almost no inventory. This will help identify wastage of time and resources. When waste is obvious to everyone, it can be eliminated through continuous improvement (kaizen).

* Protect the knowledge base about the organization of your company, prevent staff turnover, monitor the gradual promotion of employees and the preservation of accumulated experience.

*When completing the main stages and completing all the work, analyze (hansei) its shortcomings and speak openly about them. Develop measures to prevent the repetition of mistakes.

*Instead of reinventing the wheel when you start a new job or when a new manager comes on board, learn to standardize best practices and methods.

Conclusion

management personnel production personnel

The Toyota Production System has become widespread in many industries, has been adopted by many companies, and has proven its effectiveness. Its implementation at Toyota Motors took almost 30 years, during which the bold ideas of its creator, Taiichi Ohno, were gradually implemented in production one by one.

A coherent system of management principles, born of the Toyota production system, opens up opportunities for the company to produce quality products at minimal cost and provides fundamental recommendations for quality management.

According to TPS principles

· strategic decisions are paramount, even if they are carried out at the expense of tactical ones, their adoption must be weighed and thought out,

· in order to avoid defects in production or overproduction, it is necessary to organize the process in the form of a continuous flow, use a pull system, use proven technology and also solve problems quickly to avoid losses,

· the decisive criterion is quality, and quality cannot be rushed,

· a system of visual control and delegation of authority is the basis for effective work and continuous improvement,

· the system implies the presence in the workplace of creative, active, professional workers, leaders who are able to work in a team, train colleagues and support and implement a corporate culture,

· It is necessary to respect partners and suppliers and work closely with them.

Bibliography

1. Taiichi Ono. Toyota Production System. - Moscow, 2005.

2. The Tao of Toyota: 14 principles of management of the world's leading company / Jeffrey Liker; Per. from English - M.: Alpina Business Books, 2005. - 402 p.

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