Tag Archives: Toyota

Some Thoughts on the Toyota Production System


The Toyota production system (TPS) was not designed.

The technique we call the Toyota production system was born through our various efforts to catch up with the automotive industries of western advanced nations…
— Taiichi Ohno, Foreword to Toyota Production System[1]

It grew out of “various efforts.” Often these efforts were “trial and error.” Experiments were run, lots of them. Some yielded desirable results, others did not. But lessons could be learned from every experiment—What worked? What didn’t? Why?

What made an outcome of an experiment desirable? What was the purpose of these efforts?

Above all, one of our most important purposes was increased productivity and reduced costs.

So how was productivity increased and costs reduced? Toyota guessed (or hypothesized) this could be done by “eliminating all kinds of unnecessary functions in the factories,” what we’ve come to term as waste. We all recognize there are many ways to produce the same result. However, some are less wasteful than others. They are efficient.

By attending to what is actually happening, by observing the real process, a worker could identify waste in various forms. Observation comes before understanding.

Our approach has been to investigate one by one the causes of various “unnecessaries” in manufacturing operations…

One by one!

If we take a minute to think about how many different operations—small and large, localized and cross-functional—take place in factories, we start to understand the scale of Toyota’s effort. That takes patience, discipline and perseverance i.e. grit. The image of a bee hive or a migrating wildebeest herd or a flock of starlings comes to my mind. There is no centralized design or control, nevertheless all members work with the same purpose.

…and to devise methods for their solution…

To eliminate the causes of different types of waste, i.e. the unnecessary functions in the factories, Toyota devised solutions such as kanban, just-in-time, production smoothing, and autonomation. These methods are outcomes of a way of thinking and being. Experimentation through trial and error. They are the means Toyota developed to achieve its purpose of increasing productivity and reducing costs. They could be spread within Toyota, but can they be used elsewhere? Many examples exist of attempts to incorporate them in companies here in the West. I’ve had a front row seat to many of them. Few, if any, show the type of sustained benefits seen by Toyota. Why is that? Context!

Although we have a slight doubt whether our Just-in-time system could be applied to the foreign countries where business climates, industrial relations, and many other social systems are different from ours, we firmly believe there is no significant difference among the final purposes of the firms and the people working in them.

All companies operate within an environment: business climates (e.g. the regulatory environment), industrial relations (i.e. how companies relate to their peers and their suppliers, their communities, and the natural environment), and social systems (such as local traditions and customs). These will necessarily affect the type and form of tools that emerge from experiments that (should) happen in support of a particular company’s purpose. By the way, contrary to Ohno’s point, and as irrational as it seems, not all companies have the same final purpose as Toyota—to increase productivity and reduce costs. Similarly, people in the West have different objectives, different worldviews, than those in the East.

The Toyota production system, and perhaps even lean, is a way of being in pursuit of certain purpose(s). They are not a set of tools to copy and deploy independent of and indifferent to the context where they are deployed. It shouldn’t surprise anyone that efforts to unthinkingly copy and apply them fail more often than succeed.

[1] Monden, Yasuhiro. Toyota Production System. Norcross, GA: Industrial Engineering and Management Press. 1983. Print. ISBN 0-89806-034-6

A Very Cool History of the Toyota Production System

The Toyota Production System was born out of necessity. These two videos show its evolution.

Pursuit of Perfection

I came across “The Elegant Solution: Toyota’s Formula for Mastering Innovation” by Matthew E. May while scanning the business section at a Half Price Books store. I picked it up because the price was right, to be honest. It sat in a stack at home for months before I came across it again. I had just finished reading Daniel H. Pink’s “A Whole New Mind: Why Right-Brainers Will Rule the Future” and was pondering about creativity & innovation. So, it made sense to read on the approach Toyota took. I regret not reading it sooner.

May dispels the myth that innovation happens in flashes of brilliance within a select group of people possessing an aptitude for creativity. He presents the system Toyota has in place wherein innovation and creativity are the domain of every person. Everybody is inherently creative and we would do well tap into this vast resource. But before you roll your eyes, May gives a reality check and points out that the net impact of your innovation is relative to your base of responsibility, power and control. This grows the higher you move in the organization.

In the book he reveals the three principles that fuel the engine of innovation at Toyota even today: Ingenuity in craft, Pursuit of perfection, and Fit with society. He details 10 key practices – the toolbox – that make these principles operational: Let learning lead; Learn to see; Design for today; Think in pictures; Capture the intangible; Leverage the limits; Master the tension; Run the numbers; Make Kaizen mandatory, and Keep it lean. And, he demonstrates how these principles and practices come together with various examples & anecdotes that go beyond Toyota or even the automotive industry to addressing social problems.

May takes great pains to pepper the book with quotes from figures across the spectrum of human endeavors to show that Toyota or the East didn’t invent these concepts. But, Toyota’s innovative & disciplined use of them has made it “a double threat: the world’s finest manufacturer and a truly great innovator…”

The writing is very reader friendly. I was devouring the book with speed. The structure of the book reinforces the problem solving approach. Each chapter on the 10 practices defines the Problem, identifies the Cause and presents the Solution. Each chapter ends with a section for self-reflection (Hansei): questions that I am using to exercise my brain daily. I would recommend that everyone, not just professionals, read “The Elegant Solution” at least once.