By the 1970s, car production in Europe and America was huge. Demand was high and cars were mass-produced on an enormous scale. But when demand changed, and mass production methods didn't thousands of unsold vehicles sat outside the factories waiting to be bought. In Japan however, things were different.
The Toyota Production System (TPS) was developed in the middle of the last century by a Toyota manager named Tiichi Ohno. It created the most efficient car production system in the world. Instead of using machines that built only one specific part, Toyota designed machines that could produce many different parts. This made Toyota more flexible and able to react quickly to customers' changing needs.
By the 1990s, the term Lean Manufacturing was being used to describe TRS. Lean manufacturing combines the best elements of craftwork and mass production. It uses less labour, less machinery, less space and less time. The aim of lean manufacturing is to eliminate all defects. If something goes wrong a worker can stop the whole production line and deal with the problem immediately. If the worker didn't make this decision, production could carry on producing faulty or incorrect parts.
At Toyota, the just-in-time system makes stores or warehouses unnecessary because parts are only produced or ordered when they are needed. This means that costs are cut, and turnover is increased.
Toyota has more success with lean manufacturing than other companies because all their employees have a clear understanding of the objective and are totally committed to kaizen, the Japanese term for continuous improvement. Importantly, Toyota employees identify strongly with their company.
When implemented successfully, the TPS is a systematic way to satisfy customer needs and create meaningful work for every member of an organization.
The results of TPS are superior products and service quality, short lead times, low costs and a safe (physically, professionally and emotionally) working environment for the employees.
Although lean manufacturing is spreading from the car factory to other industries, manufacturers around the world who try to implement the TPS are not always successful. One of the reasons for this is that companies which have been running mass production systems sometimes find it difficult to adjust. Additionally, in the West, where employees think of themselves before the company, it is more difficult for employees to adapt to the TPS.