Toyota Case Study

Toyota Case Study

Since 1937, Toyota has always strived to build better cars that “meet the needs of people in every region”. To satisfy customers with quality and timeliness, all at a reasonable price, Toyota Production System (TPS) evolved. TPS was demonstrated in the United States through an actual experiment when Toyota Motor Corporation (TMC) assigned responsibilities of building Camry and Camry Wagons to the Toyota Motor Manufacturing (TMM), USA plant in Georgetown, Kentucky. Based on this US plant ramp-up, TPS aimed at core principal-building block foundations that we’ve studied for lean. Specifically in the “House of Lean”: focus is on flow and cycle time, leveled production (heijunka), reduced batch sizes, make problems visible, create stable and standardized processes and eliminate waste. Key elements of TPS added to these core foundations include: Just-in-Time (JIT), Waste Reduction, In-station Quality (Jidoka), People & Teamwork and Continuous Improvement. Although the TMM plant used all these key elements of TPS, focus will be on two of these key elements critical to the Toyota cast study; Just-In-Time (JIT) and In-station Quality (Jidoka).

Just-In-Time, from a positive perspective is the first key element of the TMM plant TPS. Focus is on having necessary parts available at the right place and time on the build lines so the right number of cars in the process flow could be delivered to the sales company. TMM JIT focused on continuous flow, a production Pull System, takt time planning, quick changeover and integrated Logistics. It was managed through TMM’s Production Control department which involved coordination with TMC’s Supply Chain Management, the sales company, and local suppliers who support the build and delivery of a variety and combination of car styles. To meet these challenges and in support of JIT, plant production relied on extensive forecasting and planning. The planning process reflected JIT principals in two major ways. First the practice of heijunka called for evening out the total order in the daily production sequence for 500 base model Camry’s and 500 luxury models every day, with these models made alternately. The production plan also called for mixed installation of customized options such as moon/sun roofs that were made by suppliers. By leveling production, it relieved supplier surges in workload (no bull whip effect) which helps to lower capacity, inventory, possible costs and lesson waste. The second principal was reflected in TMM’s TPS employed use of kanbon cards. These kanbon cards triggered part production and traveled between the part-use point and the supplier to signal actual parts required. JIT was demonstrated through successful matching of Toyota Camry car seats to the correct car configuration that required them. A sole source supplier, Kentucky Framed Seat (KFS), delivered batches of 58 seat sets to TMM to support