Toyota Production System - Origins

Origins

This system, more than any other aspect of the company, is responsible for having made Toyota the company it is today. Toyota has long been recognized as a leader in the automotive manufacturing and production industry.

It is a myth that "Toyota received their inspiration for the system, not from the American automotive industry (at that time the world's largest by far), but from visiting a supermarket." The idea of Just-in-time production was originated by Kiichiro Toyoda, founder of Toyota. The question was how to implement the idea. In reading descriptions of American supermarkets, Ohno saw the supermarket as the model for what he was trying to accomplish in the factory. A customer in a supermarket takes the desired amount of goods off the shelf and purchases them. The store restocks the shelf with enough new product to fill up the shelf space. Similarly, a work-center that needed parts would go to a 'store shelf' (the inventory storage point) for the particular part and 'buy' (withdraw) the quantity it needed, and the 'shelf' would be 'restocked' by the work-center that produced the part, making only enough to replace the inventory that had been withdrawn.

While low inventory levels are a key outcome of the Toyota Production System, an important element of the philosophy behind its system is to work intelligently and eliminate waste so that only minimal inventory is needed. Many American businesses, having observed Toyota's factories, set out to attack high inventory levels directly without understanding what made these reductions possible. The act of imitating without understanding the underlying concept or motivation may have led to the failure of those projects.

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