Lean Operations and the Toyota Production System
Research suggests that the more JIT is comprehensive in its breadth and depth greater the overall returns will be.
Toyota Motor Corporation is amongst the largest vehicle manufactures in the world with annual sales of over 9 million cars and trucks. Post WWII Just-in-Time (JIT) and the Toyota Production System (TPS) have served as techniques instrumental in the growth of this company. TPS has always laid emphasis on contiouous improvement respect for people and standard work practices. It accrntuates employee learning and empowerment in an assembly-line environment. JIT,TPS and Lean systems competitive advantage and result in increased overall returns.
The term "Lean" in the manufacturing environment in itself to the Toyota Production System established by the Toyota Corporation. Taiichi Ohno the basic framework for JIT and TPS one of the world's most discussed system for improving productivity.
JIT is based on the philosophy of continued problem solving via a focus on throughput and reduced inventory. In practice JIT means to make only what is needed whenever needed. It provides an excellent way for finding and eliminating problems because it is easier to find problems in a system with no slack. Quality layout scheduling supplier issues and excess production become immediately evident when excess inventory is eliminated.
The continuing effort to create and produce products under ideal conditions is a concept central to TPS. Generally ideal conditions would exist only if facilities machines and people are brought together to add value without waste.
Toyota's latest implementation of TPS and JIT are present at its new San Antonio plant which is the largest Toyota land site for an automobile assembly plant in the US. The building itself is one of the smallest in the industry despite its annual production of 200,000 Tundra pick-up trucks. Generally modern automobiles have around 30,000 parts but at Toyota many of these parts are combined into sub-assemblies by independent suppliers. Twenty-one of these suppliers are on site at the San Antonio facility and transfer components to the assembly line on a Just-in-Time basis. It is because of these operations that take place in the new San Antonio plant that Toyota still continues to perform near the top in quality and maintain the lowest labour-hour assembly time in the industry.
This is how JIT,TPS and Lean operations work and provide a competitive advantage at Toyota Motor Corporation.