November 6th, 2017

Achieving Quality through Optimal Utilization of Inventory

When you think of Toyota, you think of world-class quality. So what is the reason for Toyota's success? A very simple concept called Toyota Production System (TPS).

Let's see how it all began. A delegation of officials from Toyota visited automobile plants in Michigan owned by Ford Motor Company, the world leader in automobile manufacturing at that time. The delegation, however, was not impressed by what they saw - it was discovered that a large amount of stock was simply not being used. Toyota representatives were also shocked by the fact that document flow between departments in the company differed from day to day, which indicated suboptimal use of resources. Thus, potential opportunities for automation at Ford were identified! This statement in no way invalidates Henry Ford's contributions to the automation of the automobile industry, but merely reflects the lack of attention paid to proper inventory management.

The same delegation visited an American supermarket called Piggly Wiggly, and this visit made a huge impression on them. They found that the supermarket was restocking and restructuring after existing stock had been sold. This forced Toyota to seriously rethink its inventory management practices.

The delegation returned to Japan and applied the knowledge gained at Piggly Wiggly to the automation process. They reduced the amount of inventory to a minimum level, after which supplies began to be reorganized depending on their consumption. This principle laid the foundation for the just-in-time inventory management system.

A management philosophy built on best practices gave birth to the Toyota Production System. TPS integrates production and logistics management, as well as the interaction between customer and supplier. There are two main principles on which TPS is based. The first is called "Jidoka", which means "automation using human intelligence." When a problem occurs on the assembly line, operators are authorized to stop the entire production line. This is to prevent the production of defective products. The second is the concept of “just in time”. The TPS system was built on the principles adhered to by the founder of Toyota, Sakichi Toyoda. They were developed between 1948 and 1975 by a Toyota team including Eiji Toyoda, Shigeo Shingo and Taiichi Ono.

Three M's in TPS: Muri, Mura and Muda:

What is Muri? The literal translation of Muri is overload. The process must be designed to provide maximum performance, without "muri" or overload.

What is Mura? A process designed to produce what you need without any variation or “mura”.

What is Muda? It is logical that any inconsistency or stress in the process will generate waste or “muda” that must be eliminated.

The concepts behind Muri, Mura and Muda are so simple, yet so profound and their understanding so critical – that it's no wonder Toyota is now synonymous with quality.

The ultimate requirement for any process is the reduction or complete elimination of waste. The TPS talks about 7 types of losses (Muda). They manifest themselves in overproduction, unnecessary movement, waiting, unnecessary transportation, additional processing that is unnecessary for the customer or the creation of unnecessary features, unnecessary waste and correction of defects. Eliminating waste is at the heart of the TPS system. Toyota's application of this concept resulted in lower costs and shorter inventory rotation times. This is the reason why Toyota has become one of the top ten companies in the world.

The company's profits are constantly increasing, and in 2007, Toyota finally took a leading position in the rankings of car manufacturers in terms of production volume. Jeffrey Liker's book, The Toyota Way, goes into detail about the TPS system.

Ministry of Education and Science of the Russian Federation

STATE EDUCATIONAL INSTITUTION

HIGHER PROFESSIONAL EDUCATION

"NATIONAL RESEARCH

TOMSK POLYTECHNIC UNIVERSITY"

Institute of Engineering Entrepreneurship

Direction (specialty) – Management (080500)

Department of International Management

Corporation management Toyota

Course work

Student of group 14A91 ____________ Zhukova A.S.

Scientific director

Associate Professor, Ph.D. ____________ Dreval A.N.

Introduction

The success of Toyota has been of constant interest to managers and businessmen around the world for many decades. The reliability of Toyota cars has become a standard for the global automotive industry, so everyone who is interested in improving the quality of goods and services, one way or another, gets acquainted with the experience of this corporation.

Having developed its “14 principles of management”, using the “5S” system for the first time, and building its own system, the company came out on top in the world of automakers. Stable management principles make it unshakable even in the face of a global crisis.

The basis of Toyota's success is its perfect production management and high-quality work on creating new models, allowing it to offer consumers new model ranges every two years. The company produces 60 basic models for Japan and many options for foreign markets, while the degree of unification is very high - Toyota very successfully uses components and assemblies from old ones in new models.

The purpose of my course work is to review key aspects of the company's activities and study the principles of the management system.

To achieve this goal, I define the following tasks:

1. Consider the history of the company.

2. Identify the management features of Toyota.

This work is relevant because Toyota cars are very popular all over the world, and Russia is no exception. And the principles of Japanese management can be used not only in the automotive industry, but also in any other industry.

1 Company history

The history of Toyota begins in 1924, when, with the help of his son Kiishiro, Sakishi Toyoda, a Japanese inventor, created a fully automated loom, and in 1926 founded a new textile company, Toyoda Automatic Loom Works. Sakishi Toyoda later sells the patent rights to his automatic machine for £100,000. Sakishi will give this money to his son Kiishiro, with the order to spend it on establishing an automobile production in his hometown.

In 1930, Kiishiro Toyoda began studying automobile production. As a competent engineer, Kiishiro understands that the only correct way to start progress is to take advantage of the already successful American developments. In 1930, Kiishiro Toyoda approached the board of directors of Toyoda Automatic Loom Works with a request for space to organize an automotive research laboratory. In 1931, the laboratory began work on studying American internal combustion engines. This work continues for several years. Kiishiro strives to develop a unique Japanese production system that takes into account the country's limited space and resources, as well as the adaptability and versatility of its people.

In 1933, Toyoda Automatic Loom Works, Ltd created an automotive division, headed by Kiishiro Toyoda.

The quality of the first cars produced by Toyoda in 1936 could be called anything, most likely American, but not Japanese.

In 1935, work was completed on the first passenger car, called the Model A1 (later AA) and the first Model G1 truck, and in 1936 the Toyota logo was approved and the Model AA car, AB phaeton, and AG truck were put into production. At the same time, the first export delivery was made - four G1 trucks went to northern China. Only 150 cars were produced in a month.

In 1937, the automobile division of Toyoda Automatic Loom Works, Ltd. was spun off into an independent company - Motor Company, Ltd. By this time, Toyoda received a “government order” for 3,000 trucks for the Japanese army. Ordering military trucks was so profitable that a year later - in 1938 - it allowed the Toyoda brothers to build a new real automobile plant, Honsha Plant, in the town of Koromo. To this day, this place is the center of the Toyota empire - many years later, the town was even renamed Toyota for the corporation’s services to the fatherland.

In 1940, Toyoda Seiko, Ltd. was created in the same year to meet the company's metal needs. - Today's largest Japanese manufacturer of rods and calibrated steel, Aichi Steel Works.

In 1941, a plant for the production of machine tools and equipment was launched - Toyota Machine Works Co., Ltd. Also in 1941, production of the AE passenger car began, in 1942 the KB truck was launched, and in 1947 the SB light truck and the SA small passenger car were launched. The year 1947 becomes a landmark year for the company - a car with serial number 100,000 rolls off the assembly line.

In 1951, production of the BJ Toyota Jeep, the prototype of today's Land-Cruiser, began on assembly lines. In 1957, Toyota Motor Sales USA, the American representative office of Toyota, began operating in the United States. In the same year, the Toyota Crown, whose production for the Japanese domestic market began in 1955, began to be supplied to the American market for the first time.

In 1958, Toyota opened a representative office in Brazil, and already in 1962 the millionth car for the domestic market rolled off the assembly line. In 1961, the Toyota Publica was released, a small, economical car that quickly became popular.

In 1966, the first Toyota Corolla rolled off the assembly line - one of the company's future bestsellers. A year later, Eiji Toyoda becomes president of Toyota.

In 1969, Toyota exports its millionth car.
In 1970, production of the legendary Toyota Celica model began.

After the "oil crisis" of 1974, the international automobile industry found itself in dire straits. However, Toyota is among the few automakers that continue to generate sustainable profits. Many competitors are trying to figure out how a company can operate profitably in unfavorable market conditions. Indeed, during this period, Toyota managed to achieve high levels of quality (low number of defects) and labor productivity (in the late 1980s, the number of cars produced per company employee was two to three times higher than at enterprises of US and European companies) . Toyota also demonstrates tremendous flexibility, producing relatively small batches of different models with virtually no reduction in quality or productivity. In 1978, production of the Toyota Celica XX, today known as the Toyota Supra, began, and in 1980, the Celica Camry, today known to us as the Toyota Camry. In 1979, the total export of the brand reaches 10,000,000 cars.

In 1982, Eiji Toyoda became chairman of the company's board of directors. That same year, he began negotiations with General Motors (GM) about an ambitious joint venture - the creation of the New United Motor Manufacturing Incorporated (NUMMI), which would produce cars based on the Japanese Corolla model at the recently closed GM plant in Fremont. California State. The project was successfully implemented in 1984, which proves the possibility of using the Toyota production system in Western countries.

In 1982, production of the Camry model began. By this time, Toyota had finally established itself as the largest automobile manufacturer in Japan, ranking third in the world in terms of production volumes. In 1983, Toyota signed a multi-year agreement with General Motors, and the following year, car production began at their joint venture in the United States. In 1986, another milestone was crossed - the 50 millionth Toyota car was produced. New models are born - Corsa, Corolla II, 4Runner.

Also in 1982, Toyota Motor Co., Ltd and Toyota Motor Sales Co., Ltd merged to form Toyota Motor Corporation. The pace of production and sales continues to grow steadily. In 1985, total exports reached 20,000,000 cars; in 1986, the 50 millionth car was produced on the domestic market. The year 1986 is marked by an increase in sales on the domestic market to two million cars per year.

The success of the Toyota Production System is making Japan one of the world's leading automobile manufacturers and helping to increase productivity and efficiency in Western countries.

One of the main events of the 80s can be considered the emergence of such a brand as Lexus, a division of Toyota created to enter the high-class car market. Before this, Japan was associated with small, economical, inexpensive and affordable cars; With the advent of Lexus in the luxury luxury car sector, the situation has changed. A year after Lexus was founded, in 1989, models such as the Lexus LS400 and Lexus ES250 were introduced and went on sale.

In 1990, the European division of Toyota, Toyota Motor Europe Marketing & Engineering S.A., began operating.

In the 90s, Toyota attracted serious investments to increase its market share in the USA, Europe, India and Asia, while simultaneously expanding its model range. The company uses the latest technical solutions and developments. Two years later - in 1992 - the corporation's first plant in Europe - Toyota Motor Manufacturing (U.K.), Ltd. - opened.

Toyota continues its global expansion - opening branches in more and more countries around the world and developing those that have already been opened. At the same time, The Earth Charter was published - as a reaction to growing environmental trends in society. Ecology has had a major influence on Toyota's development; plans and programs were developed to protect the environment, and in 1997 the Prius model was created, equipped with a hybrid engine (Toyota Hybrid System). In addition to the Prius, the Coaster and RAV4 models were equipped with hybrid engines.

In addition, in the 90s, Toyota managed to produce its 70 millionth car (1991), and its 90 millionth car (1996).

The Toyota Auto dealer network was renamed Netz Toyota in 1998. In the same year, Toyota plants in Indiana and western Virginia began operating, and a year later the Toyota Kirloskar Motor plant in India.

In 1999, Toyota entered the London and New York stock exchanges, and its 100 millionth car was produced in the Japanese domestic market.

A year later, Toyota Financial Services Corporation was created to monitor the financial condition of the expanded corporation, and already in 2001, production began in France at Toyota Motor Manufacturing France S.A.S. (TMMF).

In 2002, Toyota competed in Formula 1 teams for the first time. Another Toyota plant begins operating in China, and a car with serial number 10,000,000 is produced in the USA. In the same year, the 100,000th Toyota Prius is sold.

By 2005, global sales of Toyota Camry reached 10,000,000 vehicles. At the same time, production of the subcompact Toyota Aygo began in Europe, and Lexus brand cars began to be sold on the Japanese market.

In April of the same year, a significant event took place for Russia - an agreement was signed on the construction of a Toyota Motor Manufacturing Russia plant. On December 21, 2007, the Toyota Motor Manufacturing Russia plant was opened in St. Petersburg.

2 Features of Toyota Corporation management

2.1 Toyota Production System (TPS)

The Toyota Production System was developed by the automobile company over a period of approximately three decades from 1945 to 1975.

Western managers and economists have always been interested in the secrets of the efficiency of Japanese manufacturers. When Japanese companies first took a significant share of the American market with their inexpensive, high-quality cars, it was believed that the key to their success lay in the ability of Japanese workers to work without sleep or rest. But when the Japanese built their factories in America and achieved the same amazing successes - in production efficiency and product quality - but with American workers, American competitors were completely discouraged. It turned out that the whole secret lies in the uniquely efficient production organization. Upon closer examination, it turned out that the Japanese pay a lot of attention to such seemingly obvious things as customer satisfaction, product quality, savings, and the elimination of unnecessary operations. But these brilliantly simple principles, which later formed the basis of the concept of “lean manufacturing,” turned out to be so effective that American companies had to master them in order to keep up with the competition.

Taichi Ohno, founder of lean manufacturing and executive vice president of Toyota Motor since 1975, formulated the basic principles of the Toyota Production System, on which it stands to this day:

1. Produce only what is needed, and only when needed. The rule applies to spare parts, to the organization, to product characteristics. Everything else is waste.

2. When an error occurs, you should immediately find its cause, eliminate it, and prevent its occurrence in the future. Goal: no errors.

3. All employees and suppliers must continuously improve product quality and improve the production process.

Also, Taichi Ono, in the process of improving the production system, made an unexpected discovery: it turned out that it was more profitable to produce parts in small batches than in large ones.

Firstly, the costs of their transportation and storage were reduced, and secondly, and even more important, it was possible to identify defects even before the parts went for assembly. When Taichi Ono studied the assembly lines of American companies, he was struck by the scale of the losses. The Americans were guided by two main indicators: compliance of production volumes with the plan and the quality of the resulting cars. Production managers knew that if they produced less than planned, they would be in trouble. In addition, the cars were still being modified before shipment to the consumer, so the main thing was not to stop the conveyor under any circumstances.

Even if at any stage an error occurred or a defect appeared, the car was still assembled to the end, and only the product that had already left the assembly line was checked for quality and the defect was eliminated, spending a lot of effort, resources and time on this. Producing parts in small batches made it possible to avoid such losses.

But in practice, creating a system in which parts were produced in small batches exactly according to production requirements, with a minimum rate of waste during assembly, was not easy: it required that workers themselves strive to constantly improve quality.

Taichi Ono began the experiment. He divided Toyota workers into teams, assigned each one a specific area of ​​work, where it was necessary to perform several functions at once, assigned them specific tasks and obliged them to do all the auxiliary operations - cleaning, repairs and even quality control. Thus, he not only eliminated unnecessary employees, but also ensured that the workers began to care about the results of their work. Instilling in them a sense of responsibility, Taichi Ono encouraged workers to constantly optimize the work process, taking rationalization advice not only about their site, but about the entire Toyota plant.

Not surprisingly, the conveyor began to stop every minute. But the reformer, despite the discontent of the workers, went to the end: if in the West the mistake was corrected and forgotten about, hoping that it would not happen again, then Ono forced the workers to carefully analyze the reasons that gave rise to it. The entire process was then carefully standardized and documented to prevent a similar error from occurring in the future.

The consolidation of production into a common flow also contributed to the reduction in the number of defects. As a result, the quality of finished products at the Toyota plant has noticeably improved, and at the same time, the need to correct defects has practically disappeared. Thanks to this, in terms of productivity, Toyota was noticeably ahead of traditional automakers, in whose factories “working out mistakes” took up almost a quarter of the time, not to mention the fact that this required at least one-fifth of the production space.

Table 1 – features of continuous flow

Thus, under the leadership of Taichi Ohno, a “just-in-time” production system was created - “Just-In-Time” (JIT). In which, on the production line, the parts necessary for assembly appear strictly at the right time and in strictly required quantities, using Kanban information transfer tools.

This system involves eliminating those activities that do not generate income and moving towards “lean production”, flexible enough to adapt to the diverse requirements of consumers.

The characteristics of JIT that distinguish it from traditional mass production systems are:

1. Production of products exactly as much as is currently needed in the following operations.

2. “Pull” production system – planning based on the actual needs of the market, and not on established standards as in the “push system”.

3. Short production cycle.

4. High asset turnover.

5. Efficient use of resources.

6. Minimum amount of inventory (raw materials, supplies, work in progress, finished goods).

7. High labor productivity.

8. Minimum time is devoted to non-productive work.

9. High involvement of all personnel in the continuous process of continuous improvement.

Kanban in Japanese means “tag”, “card” or “signal”. This is the name of a tool for managing the flow and production of products in a “pull” system. The best way to reschedule the delivery of materials from internal and external suppliers is to use Kanban.

Basic principles of Kanban:

1. Empty containers with a label that seems to say: “Fill me”;

2. Full containers with exact filling and maximum levels indicated;

3. labels located at the production site indicating the exact number of parts required;

4. labels attached to full containers indicating the need to move products to a specific point;

5. markings on the floor and on shelves to control overproduction;

6. use of kanban to report manufacturing defects;

7. maintaining order and safety;

8. All workers involved in this process must be aware of the “visual schedule” that Kanban provides.

In traditional manufacturing, many of the techniques used in planning production and material supply can be useful. Instead of intervening in the production process and introducing complex planning systems into it, technologists are engaged in determining and adjusting the number of necessary containers and labels involved in specific processes.

Simply put, technologists need to determine the level of daily consumption of parts and the layout of a standard container. The total daily consumption of parts is divided by the capacity of a standard container, thereby determining the number of kanban tags involved in the process. In some conditions, a certain number of parts for adjustment and long transportation routes force technologists to “adjust” the calculation response and issue several extra labels.

2.2 Kaizen Concept and 5 S System

Since 1986, when the book "Kaizen: The Key to the Success of Japanese Companies" was published, the term kaizen has been adopted as a designation of one of the key concepts of management.

In Japanese, the word "kaizen" means "continuous improvement". Based on this strategy, everyone is involved in the improvement process - from managers to workers, and its implementation requires relatively small material costs. The Kaizen philosophy suggests that our life as a whole (work, public and private) should be focused on continuous improvement.

Although improvements in kaizen are small and gradual, after a while their implementation produces amazing results. Kaizen explains why Japanese companies do not stop developing. Western management, meanwhile, is committed to innovation - large-scale changes to achieve technological breakthroughs, the latest management concepts or production technologies. Innovation involves a fundamental change on which the focus is focused. Kaizen, on the other hand, is often a prosaic and unobtrusive process. However, innovation is like a one-shot and its results are often mixed, while the kaizen process, based on common sense and low costs, produces steady progress that pays off in the long run. Kaizen is also a low-risk approach. Managers can always return to their old ways of working without suffering major losses.

The essence of most "unique to Japan" management practices, be it productivity improvement, TQC (total quality control) activities, QC (quality control) circles, or labor relations, can be summed up in one word: kaizen. By replacing words like productivity, SQC (statistical quality control), zero defects (zero defects), kanban with the term kaizen, we can get a much clearer picture of what is happening in Japanese industry. Kaizen is the “umbrella” under which most of these “unique to Japan” practices that have recently gained worldwide fame are hidden.

Figure 1 – Kaizen “umbrella”

The main significance of TQC or CWQC (company-wide quality control) is that these concepts have helped Japanese firms develop a process-oriented mindset and develop continuous improvement strategies that involve employees at all levels of the organizational hierarchy.

The Japanese mentality is characterized by a belief in endless possibilities for improvement. As the Japanese proverb says: "If you haven't seen a friend for three days, take a closer look and you will see what has changed in him." The meaning of this statement is that in three days a person cannot remain the same, so you need to be careful to notice these changes.

Management must use the following basic elements of the concept to implement the Kaizen strategy:

· Kaizen and management.

· Process, not result.

· Follow PDCA/SDCA cycles.

· Quality comes first.

· Speak with data.

· The next process is the consumer.

The first thing to do in the kaizen process is to introduce the plan-do-check-act (PDCA) cycle as a mechanism that ensures the continuity of kaizen in achieving the policy of maintaining and improving standards. This is one of the most important points of the process.

Figure 2 – PDCA cycle

· “Plan” implies that goals for improvement should be set (since kaizen is a way of life, there should always be a goal of improvement in any area) and action plans outlined to achieve them.

· “Do” refers to the implementation of the plan.

· “Verify” refers to determining whether the implementation has left a mark and resulted in the intended improvement.

· “Act” refers to building and standardizing new procedures to prevent recurrence of the original problem or to set goals for new improvements.

The PDCA cycle is constantly renewed: once improvement occurs, the outcome of the process becomes the object of further improvement. Implementing PDCA means never being satisfied with the status quo. Since people prefer to maintain status - quantity, and often shy away from initiating improvements, management must push them by constantly setting incentive goals.

Any new workflow is initially unstable. Before PDCA can be applied, each ongoing process must be stabilized using the Standardize-Do-Check-Act (SDCA) cycle.

Figure 3 – SDCA cycle

Whenever deviations appear in the current process, the following questions must be asked:

· Did this happen because we didn't have a standard?

· Did this happen because we didn't follow the standard?

· Was this because the standard was not adequate?

Only after the standard has been established and its requirements are met, it is worthwhile, stabilizing the current process, to move on to the use of PDCA.

SDCA standardizes and stabilizes current processes, while PDCA improves them. SDCA refers to maintenance and PDCA refers to improvement, and together they become the two main objectives of management.

Also, the concept of kaizen presupposes the existence of a 5S system or “five steps to maintain order.”

The five steps to maintaining order, expressed in Japanese terms, are as follows:

1. Seiri: Realize what is necessary for production and what is unnecessary, and abandon the latter.

2. Seiton: Arrange all the items that remain after performing seiri.

3.Seiso: Keep machines and work environment clean.

4. Seiketsu: Extend the concept of purity to yourself and continuously repeat the three previous steps.

5. Sitsuke: Develop self-discipline and develop the habit of participating in 5S through standards.

There are five ways to assess the level of 5S at each stage.

1. Self-esteem.

2. Assessment by an expert consultant.

3. Management assessment.

4. A combination of the above methods.

5. Competition among groups of workers.

For Kaizen, the process itself is no less important than the result. To engage people to continue their kaizen efforts, organizational leadership must carefully plan, organize, and execute the project. Often managers want to see results too quickly and miss vital processes. In fact, 5S is not a whim, not a fad for one month, but an element of everyday life. Therefore, any Kaizen project should include the following activities.

Since Kaizen takes into account people's resistance to change, the first step is to prepare them internally before the corresponding campaign begins. Before efforts to implement 5S, it is necessary to allocate some time to discuss this philosophy and the benefits of its implementation:

· creation of a clean, including from the point of view of sanitary conditions, pleasant and safe working environment;

· revitalization of jobs and significant improvement in morale and motivation of people;

· eliminate various types of waste by minimizing the need to search for tools, making work easier for operators, reducing heavy physical labor and freeing up space.

The great benefits of 5S are seen throughout the company:

Helping people develop self-discipline; such employees are always involved in 5S, they have a positive interest in Kaizen, and you can be sure that they adhere to the requirements of the standards;

· identification of many types of losses; recognizing problems is the first step in eliminating losses;

· eliminating waste improves the 5S process;

· Accurate identification of discrepancies such as defects and excess inventory;

· reduction of unnecessary movements, such as walking and useless labor-intensive work;

· visual identification and subsequent resolution of problems associated with material shortages, line imbalances, machine breakdowns and delivery delays;

· simple solutions to significant logistics problems;

· visualization of quality problems;

· increasing operational efficiency and reducing operational costs;

· Reducing the number of workplace accidents by eliminating problems caused by slippery floors, dirty areas, uncomfortable clothing and working in unsafe conditions.

2.3 The Toyota Way: 14 principles of management

In his book, The Toyota Way: 14 Management Principles for the World's Leading Company, Jeffrey Liker outlined 14 principles that make up the Toyota approach. The principles are grouped into four categories:

1. long-term philosophy;

2. the right process produces the right results (we are talking about using a number of Toyota Production System tools);

3. add value to the organization by developing your employees and partners;

4. Constantly solving fundamental problems stimulates lifelong learning.

Section I: Long-Term Philosophy.

Principle 1. Make management decisions with a long-term perspective, even if it is detrimental to short-term financial goals.

· Use systematic and strategic approaches when setting goals, and all operational decisions should be subordinated to this approach. Realize your place in the history of the company and try to take it to a higher level. Work on the organization, improve and rebuild it, moving towards the main goal, which is more important than making a profit. A conceptual understanding of your purpose is the foundation of all other principles.

· Your main task is to create value for the consumer, society and the economy. When assessing any type of activity in a company, consider whether it solves this problem.

· Be responsible. Strive to control your destiny. Believe in your strengths and abilities. Be accountable for what you do, maintain and improve the skills that allow you to produce added value.

Section II. The right process produces the right results.

Principle 2. A continuous flow process helps identify problems.

· Redesign the process to create a continuous flow that effectively adds value. Minimize the amount of time unfinished work sits idle.

· Create a flow of products or information and establish connections between processes and people so that any problem is identified immediately.

· This flow must become part of the organizational culture, understandable to everyone. This is the key to continuous improvement and development of people.

Principle 3. Use a pull system to avoid overproduction.

· Make sure that the internal consumer who accepts your work gets what he needs at the right time and in the right quantity. The basic principle: in a just-in-time system, the stock of products should be replenished only as they are consumed.

· Minimize work in progress and stockpiling of inventory. Keep a small number of items in stock and replenish these stocks as customers pick them up.

· Be sensitive to daily fluctuations in consumer demand, which provide more information than computer systems and charts. This will help avoid losses due to the accumulation of excess inventory.

Principle 4. Distribute the amount of work evenly (heijunka): work like a tortoise, not like a hare.

· Eliminating waste is only one of the three conditions for lean manufacturing success. Eliminating overload of people and equipment and smoothing out uneven production schedules are equally important. This is often not understood in companies that are trying to apply lean principles.

· Work on equal distribution of load in all processes related to production and service. This is an alternative to alternating rush jobs and downtime, characteristic of mass production.

Principle 5. Make stopping production to solve problems part of the production culture if quality requires it.

· Quality for the consumer determines your value proposition.

· Use all available modern quality assurance methods.

· Create equipment that can independently recognize problems and stop when they are identified. Develop a visual system to notify the team leader and team members that a machine or process requires their attention. Jidoka (machines with elements of human intelligence) is the foundation for “embedding” quality.

· Ensure that the organization has a support system in place to quickly resolve problems and take corrective action.

· The principle of stopping or slowing down the process should ensure that the required quality is obtained “the first time” and become an integral part of the company’s production culture. This will improve process productivity in the long term.

Principle 6. Standard tasks are the basis for continuous improvement and delegation of authority to employees.

· Use stable, repeatable work methods to make results more predictable, improve teamwork, and produce more consistent output. This is the basis of flow and pull.

· Capture the accumulated knowledge about the process, standardizing the best methods at the moment. Do not discourage creative expression aimed at raising the standard; consolidate what you have achieved with a new standard. Then the experience accumulated by one employee can be transferred to the one who replaces him.

Principle 7. Use visual inspection so that no problem goes unnoticed.

· Use simple visual aids to help employees quickly identify where they are meeting the standard and where they have deviated from it.

· Do not use a computer monitor if it distracts the worker from the work area.

· Create simple visual control systems in workplaces that promote flow and pull.

· If possible, reduce the volume of reports to one sheet, even when it comes to the most important financial decisions.

Principle 8. Use only reliable, proven technology.

· Technology is designed to help people, not replace them. It is often worth doing the process manually first before introducing additional hardware.

· New technologies are often unreliable and difficult to standardize, jeopardizing flow. Instead of using untested technology, it is better to use a known, proven process.

· Before introducing new technology and equipment, it should be tested in real conditions.

· Reject or change technology that conflicts with your culture and may undermine stability, reliability, or predictability.

· Still, encourage your people to keep an eye on new technologies when it comes to finding new ways. Quickly implement proven technologies that have been tested to improve flow.

Section III. Add value to the organization by developing your employees and partners.

Principle 9. Develop leaders who thoroughly know their business, profess the company's philosophy and can teach this to others.

· It is better to develop your own leaders than to buy them from outside the company.

· A leader must not only complete the tasks assigned to him and have the skills to communicate with people. He must profess the company's philosophy and set a personal example of how to do business.

· A good leader must know the day-to-day work like the back of his hand, only then can he become a real teacher of the company's philosophy.

Principle 10. Develop exceptional people and form teams that adhere to the company's philosophy.

· Create a strong, sustainable work culture with lasting values ​​and beliefs that everyone shares and accepts.

· Train exceptional people and teams to operate in accordance with a corporate philosophy that produces exceptional results. Work tirelessly to strengthen your production culture.

· Form cross-functional teams to improve quality, productivity and flow by solving complex technical problems. Arm people with the tools to improve the company.

· Relentlessly train people to work as a team towards a common goal. Everyone should learn to work in a team.

Principle 11. Respect your partners and suppliers, challenge them and help them improve.

· Respect your partners and suppliers, treat them as equal participants in a common cause.

· Create conditions for partners that stimulate their growth and development. Then they will understand that they are valued. Set challenging tasks for them and help them solve them.

Section IV. Constantly solving fundamental problems stimulates lifelong learning.

Principle 12. To understand the situation, you need to see everything with your own eyes (genchi genbutsu).

· When solving problems and improving processes, you must see what is happening with your own eyes and personally verify the data, and not theorize by listening to other people or looking at a computer monitor.

· Your thoughts and reasoning should be based on data that you have verified yourself.

· Even representatives of the company's senior management and department heads must see the problem with their own eyes, only then the understanding of the situation will be genuine and not superficial.

Principle 13. Make a decision slowly, based on consensus, after weighing all possible options; when implementing it, do not hesitate (nemawashi).

· Do not make a clear decision about a course of action until you have weighed all the alternatives. When you have decided where to go, follow the chosen path without delay, but be careful.

· Nemawashi is a process of collaborative discussion of problems and potential solutions in which everyone participates. His task is to collect all the ideas and develop a common opinion on where to move next. Although this process takes quite a lot of time, it helps to carry out a larger search for solutions and prepare conditions for the prompt implementation of the decision made.

Principle 14. Become a learning structure through relentless self-reflection (hansei) and continuous improvement (kaizen).

· Once the process has stabilized, use continuous improvement tools to identify the root causes of inefficiencies and take effective action.

· Create a process that requires almost no inventory. This will help identify wastage of time and resources. When waste is obvious to everyone, it can be eliminated through continuous improvement (kaizen).

· Protect the knowledge base about the organization of your company, prevent staff turnover, monitor the gradual promotion of employees and the preservation of accumulated experience.

· When completing the main stages and finishing all the work, analyze (hansei) its shortcomings and speak openly about them. Develop measures to prevent the repetition of mistakes.

· Instead of reinventing the wheel when you start a new job or when a new manager comes on board, learn to standardize best practices and methods.

It is possible to use a whole range of Toyota Production System tools, but still follow only a few selected principles of the Toyota approach. This way, you may be able to improve your performance for a while, but the results won't last long. But if a company, when implementing the Toyota Production System, follows all the principles of the Toyota approach, it will definitely achieve sustainable competitive advantages.

The essence of lean manufacturing is not to copy Toyota tools designed for a specific production process. Lean manufacturing means developing principles that are specific to your organization and sticking to them, effectively creating added value for customers and society. This way your company can become profitable and competitive.

Conclusion

Toyota became the second-largest automaker in 2003, overtaking Ford in sales, and at the end of 2007 it was in first place, ahead of General Motors, which held the lead for 77 years. Now, in the context of the global economic crisis, the company is successfully operating an anti-crisis program. How did it happen that the company continues to operate successfully in difficult economic conditions?

The Japanese management system is one of the most successful in the world, and Toyota made a huge contribution to Japanese management. High-quality work of employees is perhaps the basis for the company’s successful activities. It is effective human resource management that ensures the achievement of high quality and competitiveness of Japanese products and technologies in the international market. And that is why so much importance is attached to the education and training of personnel.

Toyota developed 14 management principles and pioneered the 5S system. Having built its system, the company came out on top in the world of automakers. The more you study the Toyota Production System and understand its principles, the more you realize that it is a system that provides people with the tools to continuously improve their work.

Thus, the Toyota control system developed many years ago is today one of the most effective in the world. Many countries that today rank first in production development use the Japanese system. Probably, even after many years, Japanese management principles will remain the most successful.

Conclusion

Toyota has grown to a large multinational corporation from where it started and expanded to different worldwide markets and countries. Toyota was the second motor company in 2003, and in 2007 became the world's largest automobile maker, advanced General Motors, which had been taken the first place during 77 years.

Toyota made a large contribution to Japanese management system. Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms "Lean Manufacturing" and "Just In Time" Production, which it was instrumental in developing. Toyota's managerial values ​​and business methods are known as the Toyota Way.

Under the two headings of Respect for People and Continuous Improvement, Toyota summarizes its values ​​and conduct guidelines with the following five principles:

Kaizen (improvement)

Genchi Genbutsu (go and see)

According to external observers, the Toyota Way has four components:

1. Long-term thinking as a basis for management decisions.

2. A process for problem-solving.

3. Adding value to the organization by developing its people.

4. Recognizing that continuously solving root problems drives organizational learning.

The Toyota Way incorporates the Toyota Production System.

As described by external observers of Toyota, the principles of the Toyota Way are:

1. Base your management decisions on a long-term philosophy, even at the expense of short-term goals

2. Create a continuous process flow to bring problems to the surface

3. Use "pull" systems to avoid overproduction

4. Level out the workload

5. Build a culture of stopping to fix problems, to get quality right the first time

6. Standardized tasks are the foundation for continuous improvement and employee empowerment

7. Use visual control so no problems are hidden

8. Use only reliable, thoroughly tested technology that serves your people and processes

9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others

10. Develop exceptional people and teams who follow your company’s philosophy

11. Respect your extended network of partners and suppliers by challenging them and helping them improve

12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu)

13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly

14. Become a learning organization through relentless reflection and continuous improvement

Thus Toyota management system, which was operated years ago, is the worldwide most advanced system. Many countries use Japanese system. Maybe Japanese control strategy will be the most successful in the future.

2. Liker J., Mayer D. – The Toyota Way: 14 principles of management of the world’s leading company. – M., 2008.

3. Liker J., Morgan J. – Product development system at Toyota. M., 2007.

4. Masaaki Imai. - Kaizen: the key to the success of Japanese companies. – M., 2007.

5. Management model of leading corporations - Kanban and the Just-in-Time system at Toyota. M.: 2008.

6. Monden Y. – Toyota Management System. M.: 2007.

7. [Electronic resource]: http://www.toyota–russia.ru/about_toyota - free

8. [Electronic resource]: http://www.ramboll.ru/news/ - freedom

9. [Electronic resource]: http://www.autoreview.ru/archive/2007/23/toyota_history/index - free

10. [Electronic resource]: http://www.toyota.ru - free

11. [Electronic resource]: http://www.auto-run.ru/toyota.html - free

12. [Electronic resource]: http://www.toyota–russia.ru/about_toyota - free

Http://www.auto-run.ru/toyota.html

Http://www.toyota–russia.ru/about_toyota

http://www.ramboll.ru/news/

Masaaki Imai. - Kaizen: the key to the success of Japanese companies. – M., 2007. – P. 20-37.

The answer to the reasonable question of why “Toyoda” turned into “Toyota” should be sought in the peculiarities of the Japanese language. To write the word Toyoda in hieroglyphs, you had to make so many movements with your hand

History of Toyota 3
"Unlucky" lucky man 3
Recipe - American, model - European 3
Made in Japan 4
Kiishiro Toyoda's Empire 5
Marketing development and strategy in Japan 6
Production management system. 9
Basic principles and structure of the system 9
Just-in-time production 10
Kanban system 10
Ideal production organization 11
Production leveling 11
Problems of organizing equipment changeover 13
Design and organization of technological processes 13
Work rationing 14
Automatic product quality control at the workplace 14
Activating the human factor 15
General information 16
Toyota in the world. 16
Toyota in Europe. 17
Activities of the company in Russia. 17

History of Toyota

"Unlucky" lucky person

One of the advantages of a good car is the ability to perpetuate the name of its creator: in America - Henry Ford, in Japan - Kiishiro Toyoda.
Back in the 20s of our century, our own automobile industry
The Land of the Rising Sun did not, although General Motors, Ford and Chrysler built their assembly plants on its territory. However, this situation did not at all discourage the enterprising Kiishiro Toyoda, who decided to start his own automobile business. His father left him the textile company Toyoda Automatic Loom Works Ltd. The business brought good income, and in 1933, with a capital of 100,000 pounds sterling, proceeds from the sale of patents for spinning machines to English industrialists, Kiishiro opened a new branch in his company. It was supposed to produce cars and trucks.

The lack of our own design and technological experience in this area forced us to resort to borrowing. It is not surprising that the experimental model of the first Japanese car A, produced two years later in only three copies, practically copied one of the most avant-garde and at the same time very unsuccessful American cars
- Chrysler Airflow.

The factory in the town of Koromo, where the main production was located, grew rapidly. Along with her, the city grew, which over time began to be called
Toyota City. Soon the first production car (model
AA), which had a six-cylinder 3.4-liter engine producing 62 hp. Only 150 cars were produced in a month, but Kiishiro’s faith in the bright future of the Japanese automobile industry was so great that he without hesitation donated all his own savings - 45,000,000 yen - for the construction of a new Toyota Motor Co plant in Honsha, which went into operation in 1938 .

The answer to the reasonable question of why “Toyoda” turned into “Toyota” should be sought in the peculiarities of the Japanese language. To write the word Toyoda in hieroglyphs, one had to make such a number of movements with a brush that it was considered “unlucky”. There were disputes about this within the company's management until the name Toyota was finally adopted, making a more favorable impression on buyers. Thus, the owner of the “unlucky” surname became the founder of one of the most prosperous industrial empires in the world, which is still alive today.

Recipe - American, model - European

Due to a shortage in Japan of ores and other minerals needed to make cars, the company had to create new materials and develop related technologies. Significant funds were allocated for the development of electrical engineering and the construction of a research center.
In 1941-1942, Kiishiro created subsidiaries: steel, metalworking machines and automobile components. At the same time, a new VA model was born. It was not an imitation of the Americans: this time the designers “borrowed” the design idea from the Europeans. The next creation was strongly reminiscent of the PV-60 model produced by Volvo.

During World War II, Toyota produced exclusively military trucks with wooden seats, rear-wheel brakes only, and a single headlight. In the post-war period, the American occupation authorities allowed the production of trucks to continue. But it was possible to resume production of passenger cars much later, and only in 1947 the S prototype of the first post-war series appeared. These were small cars with a backbone frame and suspension on coil springs, which was unusual for the Japanese automobile industry of that period.

Lack of funds brought the company to the brink of bankruptcy. In an effort to maintain production, the company's management tried to maneuver by delaying the payment of wages. But this only caused a series of long strikes, which further aggravated the situation. We had to radically change our financial policy, which led to the emergence of Toyota Motor Sales Co. Lengthy negotiations with unions helped to reach an agreement that suited both sides, although about 2,000 jobs still had to be cut. In the early 50s, the company managed to attract significant investment - Toyota was back on its feet.
A “suggestion system” was introduced, which encouraged company employees who contributed constructive ideas to improve the production cycle and technology.

Made in Japan

Founder of the enterprise and undoubted pioneer of the Japanese automotive industry
Kiishiro Toyoda died in 1952, when the heyday of his brainchild began. By that time, having gained experience, unlike other Japanese automobile companies, Toyota did not buy licenses from Western companies, but was actively developing its own original designs. Research required large funds, but had a positive impact on the image, and most importantly
- provided a technological breakthrough into the future. The range of cars produced expanded: the BJ SUV, later renamed Land Cruiser, and the luxurious Toyopet Crown. In 1957, the Toyota Corona rolled off the assembly line, becoming the first Japanese car exported to the United States. The company had high hopes for him. Specially established Toyota Motor Sales USA
Inc. was supposed to ensure penetration into the American market. But Japanese small cars were not suitable for American highways and long distance travel. Toyota learned its lesson by rushing into a six-year refurbishment program. Its result was the emergence of new models that successfully compete with American ones.

In the sixties, the economic situation in Japan continued to improve. The volume of car sales on the domestic market has increased significantly.
The most popular small car here was the Toyota Publica (1961), and
"the most desirable Japanese passenger car" - Toyota Corolla (1966).
In 1963, Toyota produced 129,000 vehicles. By the end of the decade, it accounted for 46% of Japanese car exports, and 54.4% of Japanese cars sold in America were branded Toyota.
Luxury and practicality

In 1967, Toyota gained control of Hino and Daihatsu. In the seventies, new factories were opened in Mayoshi, Shimoyama, Tsutsumi, Kinyuura and Tahara. By 1978, more than 2 million passenger cars rolled off the company's assembly lines, including the first Japanese car with front-wheel drive
Toyota Tercel. Moreover, the models were constantly being improved: units, originally developed only for the most expensive cars, gradually migrated to cheaper ones. "Cruise control", first installed on the prestigious Toyota Century, a little later moved to mass production.
The electronic fuel injection control system used on the expensive Mark II was soon used on all gasoline-powered Toyotas. The electronic anti-skid system, first installed on the Toyota Crown, later appeared on other models.

In the 70s, the energy crisis became a serious test for the company.
Despite financial difficulties, Toyota continued a flexible policy of encouraging its sales agents, strengthened the “policy of partnership” within the company in every possible way, and resorted to strict economy of raw materials.
Literally from production waste, it was possible to collect material reserves sufficient to produce new Sprinter, Carina and Celica models.
Significant funds had to be allocated to create a more efficient exhaust system, because Back in 1970, the US Congress passed legislation aimed at combating air pollution from exhaust gases, and in the mid-70s Japan passed similar laws.

Empire of Kiishiro Toyoda

With the release of the three-millionth car in the early 80s, Toyota Motor confirmed its status as the largest automobile manufacturing concern.
Japan, which ranks third in the world in terms of production volumes. In 1984, the company's turnover was 5.5 million yen, and exports exceeded a million cars. Toyota was especially popular abroad
Corolla. From 1966 to 1984, over 5.5 million of these machines were exported.

There are three specialized research centers operating under the auspices of Toyota. Toyota Central Research and Development is engaged in research into lubrication and combustion processes, as well as technological analysis and the development of new materials. The Technical Center specializes in “future technologies”, and the Head Office Technical Center introduces new developments and designs into mass production of cars.

One of the most interesting developments of the 80s was the electronic system for full control of the engine and four-speed automatic transmission. Promising models were created, distinguished by technical excellence, aerodynamic design, passenger comfort and thoughtful execution: EX-II (1981), FX-I (1985) and FXV (1985). They were equipped with lightweight bodies, electronic suspension control, all-wheel drive and turbocharged engines.

Toyota is constantly in contact with foreign enterprises. In February
In 1983, a multi-year agreement was signed with General Motors: together with this American giant, Toyota acquired a controlling stake in the largest English manufacturer of sports cars - Lotus. In addition, Toyota has its own plant in Kentucky, producing 200 thousand cars per year. In 1988, an assembly plant with a capacity of 50 thousand cars per year opened in Canada.

Today the Toyota group has 13 parent companies. An important place in this system is occupied by the formally independent Hino and Daihatsu, as well as thousands of medium and small automobile firms. Toyota does not limit the scope of its interests to automobile production, investing in the development of other branches of mechanical engineering.

Marketing development and strategy in Japan

Regarding the history of the development of modern marketing in Japan at industrial enterprises, the following stages can be noted.

Until 1953. This period can be called “pre-marketing”. The country paid a lot of attention to commercial sciences, placing special emphasis on industrial resources, as well as studying the needs of the population in order to improve the production process and improve the quality of products.

1953-1964. The stage in production planning when the first marketing agencies appeared. During this period, attention began to be paid to the study of marketing as a science; various books and articles on marketing issues were published, in which an opinion was expressed on the need for planning as a scientific basis for the development of production.

1964-1970. The stage of the emergence of modern marketing (modern marketing concept), when they began to study the needs of the consumer, his wishes in order to satisfy them as fully as possible. Also, many works on the study of marketing problems have been published in print. The market was divided into spheres of influence, great attention was paid to the process of marketing products, distribution channels were studied, ways to produce new products and improve their quality, as well as ways to familiarize the world market with Japanese products through their exports. Universities opened specialized faculties and departments for the study of marketing as a modern science; There have been major shifts in the development of the concept of modern marketing. All this brought tangible benefits to the country's industrial enterprises in popularizing their products in foreign and domestic markets.

1970-1973. The stage of widespread use of marketing at industrial enterprises in Japan, which contributed to the successful development of enterprises and improvement of the quality of products. The use of marketing played a positive role in the overall rise of industrial production.

1974-present. The period of development of marketing in order to enter goods into international markets, when the policy of international marketing is born. Trade with other countries is developing, and the process of reducing customs barriers is underway. At the same time, the role of national production is being strengthened - limiting the import of similar foreign goods, using modern strategies to plan marketing activities and improve the process of selling goods, to intensify the struggle for spheres of influence, to increase the share of products of Japanese companies in international markets.

During this period, Japanese firms advocated the development of marketing, which, with the help of the most modern technologies, would help counter foreign competition. They are supporters of dividing the common market into spheres of influence, advocating at the same time improving the quality of products, establishing fixed prices, finding the most rational ways of distributing products, and using the most modern methods of advertising and sales. All this helps to increase the share of Japanese companies' products on the world market.

The marketing strategy in Japan is characterized by the fact that it is based on a set of offers declared for the company’s products, as well as a set of measures to provide consumers with quality products.
The implementation of these conditions at a high level allows firms to compete adequately both in the domestic and foreign markets. At the same time, it is necessary to study and forecast the emergence of new markets with constant monitoring of changes in their position over time. To counter fierce competition in the global market, it is advisable to use a system of discounts on different types of products.

In this regard, we can cite the opinion of scientists who formulated the following principles of marketing strategy in the situation of the emergence of new markets:

Detailed acquaintance with the needs and wishes of the consumer;

Dividing the total overall market into sectors;

Finding among them those where there is no competition;

Early identification of those types of products that can satisfy consumer needs through the identified sector;

Entering a new market with products of the highest quality, subject to an appropriate level of customer service, as well as timely use of a discount system;

Selection of the most rational ways to distribute products in sales markets;

Application of effective measures when organizing the sale of goods.

Thus, when Japanese firms penetrate a new market, the primary task is to collect the most extensive information about the needs and wishes of the consumer. Unlike American and European companies, Japanese firms simultaneously take into account a variety of factors when conquering spheres of influence and dividing the market into several sectors. This includes servicing a large number of customers, using product distribution channels, and various forms of product sales specific to each individual type of product. At the same time, if a Japanese enterprise sees a threat to its position in the developed sales market, it gives way to more experienced Japanese firms that are better versed in market conditions.

Japanese firms try not to expose themselves to risk and therefore penetrate new markets not immediately, but gradually. For example, before starting to sell its products in the United States, a company first checks the success of its products, for example, in East Asian countries, by sending only a trial batch to the United States. Only after receiving positive results in other countries does the company increase its supply of products to the United States.

Comparing the strategic policies of American and Japanese firms, the following can be noted. American firms strive to produce high-quality products to sell first in the domestic market, while inferior products are usually sent abroad. In contrast, Japanese firms pay the greatest attention to selling the highest quality goods on the foreign market. As for lower quality goods, they are trying to use them on the domestic market. Thanks to this, Japanese-made goods gradually conquered markets around the world.

When selling products on the domestic market, Japanese enterprises attach great importance to studying consumer demand, as well as opportunities for expanding production. At the same time, the sale of products in large volumes is evidence that Japanese enterprises fully satisfy the needs of the domestic market.

It should also be noted that the strategy of Japanese enterprises is directly dependent on their specifics and may vary depending on the type of product produced. An example is the situation with the production of computers, which clearly illustrates the marketing strategy of Japanese enterprises.

An example of a marketing strategy for Japanese enterprises is the experience of the automobile company Toyota, which was also able to conquer international markets, achieving significant success in competition with the famous German company Volkswagen. Japanese firms took every measure to prevent Volkswagen products from entering the US markets, although there was a period when German cars were beyond competition.

Japanese experts conduct a thorough study of the reasons for the high competitiveness of the German car and set themselves the task of creating a car that is superior to its competitor in all respects. Avoiding direct conflicts, they pursue flexible and reasonable policies to ensure the introduction of their car into the world market.

For example, on the initiative of the Japanese side, one of the American marketing agencies conducted a survey among car enthusiasts, identifying their complaints about the German car. Summarizing the noted shortcomings, in particular insufficient heating of the car interior in winter, the company
Toyota immediately began converting its vehicle. As a result, a car was created that is in no way inferior to the company’s products.
Volkswagen, and in some respects, for example in price, even superior to it.

In addition, according to the developed strategy, the percentage of profits was increased in favor of employees involved in advertising and sales of products in the United States to stimulate their activities. As a result, the company
Toyota achieved a complete victory over its competitor.

Thus, we can conclude that the directions of the Japanese marketing strategy are correct, according to which one should not attach importance to obtaining immediate benefits, preferring the successful development of the entire industry in the long term. From the above, the following conclusions can be drawn:

Japanese firms are constantly developing and strengthening their positions in all markets available to them;

Offer their clients the most profitable, preferential options;

If possible, satisfy the needs of employees of their company;

They do not strive to make a profit in an unreasonably short time, but conduct systematic, targeted activities to increase the sales volume of products and improve their quality while complying with a flexible pricing policy; at the same time, they allow losses to be incurred at first, knowing that in the future they will be able to fully compensate for them.

Comparing Japan's marketing strategy with other highly developed countries, such as England, the following can be noted. If English firms discover that they have no profit in any market and the company is incurring losses, then they immediately decide to liquidate this market and return their products back. Unlike Japan, prices for British goods are determined only by the level of obtaining a certain profit. There is also a big difference in the development of new markets for their products. The English marketing system focuses mainly on those markets where there is a guarantee of high profits. The use of new markets occurs only when it does not require an increase in costs for marketing and the distribution system. And finally, as noted, the English strategy focuses on making a profit in the shortest possible time, unlike the Japanese one, which relies on the gradual development and improvement of its enterprises in order to achieve guaranteed success in the future.

Production management system.

The Toyota production management system was developed and improved by Toyota Motor Corporation and was adopted by many other Japanese companies after 1973. The main goal of the system is to reduce costs. It also helps to increase the capital turnover rate
(the ratio of total sales to the total cost of fixed assets) and increases the efficiency of the company as a whole. Even during periods of slow growth, Toyota's production management system made it possible to generate profits by reducing prices in an unusual way: by eliminating excess inventory or labor.

It would not be an exaggeration to say that this is a new revolutionary production management system. It is based on F. Taylor's system (scientific production management) and G. Ford's system (conveyor line production).

Basic principles and structure of the system

Toyota's production management system is attractive because, while aiming to reduce production costs, it eliminates unnecessary elements from production. The basic principle is: produce the right parts at the right time and in the right quantity.

The implementation of this concept makes it possible to eliminate intermediate components and finished products that have become unnecessary.

Although reducing production costs is the most important task in
Toyota, it can be achieved by solving three intermediate subtasks:

1) operational regulation of the volume and range of production, which helps the system adapt to daily and monthly changes in the quantity and range of demand;

2) quality assurance, which makes it possible to organize the supply of each subsequent operation with parts of the highest quality from subcontractors;

3) activation of workers, which must be carried out as soon as the system uses labor resources on the way to the main goal.

These three subtasks cannot be accomplished in isolation. The main task, which is to reduce production costs, is unattainable without solving subtasks, and vice versa.

Before examining the structure of the Toyota system in detail, a general overview of the system would be helpful. Here is a block of results (costs, quality, skills of workers) and a block of prerequisites.

Continuity of product flow and adaptation to changes in demand in terms of quantity and product range are achieved using two basic principles: “just in time” and autonomation. These two principles are the pillars of the Toyota system. Just-in-time generally means producing the right type of product in the right quantity at the right time. Autonomy can be simplistically defined as the employee’s independent control over marriage. It supports the accurate delivery of products by eliminating the possibility of defective parts from upstream production processes entering the downstream process and preventing failures.
The other two principles are flexibility in the use of labor, which means changing the number of workers depending on fluctuations in demand, developing creative thinking and introducing constructive ideas.
Taking advantage of employee suggestions will result in significant savings.

To implement these four principles, Toyota has developed the following methods:
1. Kanban system to ensure just-in-time production.
2. Continuous production method to accommodate changes in demand.
3. Reduced equipment changeover time to reduce overall production time.
4. Rationing of work to ensure the balance of production operations.
5. Layout of production equipment and the use of workers with several professions to implement the principle of flexibility.
6. Rationalization activities of quality circles and a system for encouraging proposals to reduce the size of the workforce and increase work morale.
7. Visual inspection system to ensure the principle of automatic product quality control at the workplace.
8. “Functional management” system to ensure quality management throughout the company, etc.

Just-in-time production

The principle of producing the right parts in the right quantities at the right time is referred to as just-in-time. It means, for example, that during the assembly process of a car, the necessary parts produced by other processes must arrive on the assembly line at the required time and in the required quantities. When a JIT system is implemented throughout a firm, it eliminates material inventories that are becoming unnecessary from the plant, rendering warehouse inventory and warehouses useless as well. Inventory holding costs are reduced and capital turnover increases.

However, you cannot rely solely on central planning methods, which determine production schedules for all stages of production at once. Under these conditions, it is difficult to implement the “just in time” principle at all stages of production. Therefore, in the Toyota system, they monitor the production process in reverse order. Workers performing a particular process receive the parts they need from the previous production process at the right time and in the right quantity.
In the previous process, only the amount of product that is necessary to replace the withdrawn quantity should be produced.
The type and quantity of items required are entered on a card called
"kanban". "Kanban" is addressed to the workers of the previous production site. As a result, many areas of the enterprise are directly connected to each other. These connections allow better control of the required quantity of products.

Kanban system

Many people call the Toyota system the “kanban” system. This definition is incorrect. The Toyota system is a method of organizing the production of products, while Kanban is a means of implementing a just-in-time system. In short, Kanban is an information system that allows you to quickly regulate the quantity of products at various stages of production. Without the correct implementation of other conditions of the production system, such as rational organization of production, rationing of work, balancing of production, etc., the just-in-time principle will be difficult to implement, despite the use of the kanban system.

Kanban is usually a rectangular card in a plastic envelope. Two types of cards are common: selection and production order. The selection card indicates the number of parts that should be taken from the previous processing section, while the production order card indicates the number of parts that should be manufactured at the previous production section. These cards circulate both within Toyota enterprises, and between the corporation and companies cooperating with it, as well as at affiliated enterprises. Thus, Kanban cards carry information about the quantities of products consumed and produced, which allows for production according to the principle
"just in time."

Let's assume that we are producing products "A", "B" and "C" on an assembly line. The elements necessary for assembling parts “a” and “b” are manufactured at the previous production site. Parts "a" and "b" produced in this process are stored along the conveyor and kanban order cards are attached to them. A worker from the assembly line producing product “A” arrives at the production site of part “a” with an order card to take the required number of parts “a”. At the warehouse near the conveyor, he receives the number of parts indicated on the card. He then delivers the resulting parts to his assembly line along with selection cards.

At this time, the production order cards remain in the warehouse at production line "a", showing the number of parts taken. They inform the order for the production of new parts on a given production line.
Part “a” is now produced in the quantity corresponding to that indicated on the production order cards.

Ideal production organization

Let's turn to optimizing production using Kanban cards.
Let's say that an engine manufacturing shop must produce 100 engines per day in accordance with the production schedule. According to the selection cards, engines are delivered to subsequent sections in batches of 5 pieces.
There will be 20 such batches, which exactly corresponds to 100 engines per day.

Under the conditions of such a production organization, if there is a need to reduce the number of manufactured engines by 10%, the final process in this case receives only 18 batches per day. Since the engine shop in this case must produce only 90 engines per day, and the time for producing 10 engines is saved. At the same time, if there is a need to increase production by 10%, then the number of batches of engines entering the assembly area will increase to 22. Then 110 units must be manufactured in the previous stage, and an additional 10 engines will be manufactured in overtime.

Thus, although the philosophy of the company's production management system
Toyota provides that each unit of production can be produced without downtime of production facilities (that is, all elements of the system - personnel, machines and materials - are used efficiently), the possibility of changes in product needs still remains. This possibility is compensated by the use of overtime hours and improved labor organization at each production site.

Leveling up production

Leveling production by volume is the most important condition for using the kanban system and minimizing the loss of workers’ time and reducing equipment downtime.

The subsequent production section receives the necessary parts at the right time and in the required quantity. According to this rule, if for any production process parts will arrive at different periods of time or in unequal batches, then at the previous stage of production so many spare parts must be made, so much equipment and labor must be available to satisfy maximum demand. Moreover, where many sequential operations are involved, the number of parts selected for each subsequent operation increases with distance from the primary production process. To avoid large variations in the quantity of parts required at all stages of production, as well as those obtained from external suppliers, it is necessary to minimize fluctuations in output on the final assembly line. Therefore, minimum quantities of each car model will come off the assembly line, which is the final process at Toyota, realizing the ideal of piece production and delivery. In other words, different types of cars will be assembled one after another according to the daily production volume of each type. The assembly line will also receive the necessary parts in small batches from previous sections.

In short, production balance minimizes the variation in required quantities of parts across all stages and operations and thus allows parts to be produced on adjacent lines at a constant speed or in a given quantity within an hour. Let's assume that there is an assembly line with a capacity of 10 thousand cars of the model
“Crown”, which operates 20 days a month for 8 hours. For 10 thousand cars, 5 thousand cars with a body type should be produced
sedan, 2.5 thousand sports cars and 2.5 thousand station wagons.
If we divide this number into 20 work shifts, then 250 sedans, 125 hard-tops and 125 station wagons will be produced daily. This is balanced production, leveled by the daily number of cars of each type. Consequently, cars come off the assembly line
(average assembly time for one car, regardless of model) after 0.96 minutes (480:500), or after 57.5 seconds.
The correct ratio of models and the sequence of their production can be determined by comparing the actual assembly cycle of any body modification of the Crown model with the maximum time allowed for the production of a car of this model. For example, the maximum production time for one model “Crown” (“sedan”) is determined by dividing the time of one shift (480 minutes) by the number of cars produced per shift (250).
In this case, the maximum time required is 1 minute 55 seconds. This means that this model can and will roll off the assembly line in 1 minute 55 seconds.

When comparing the duration of this cycle with the assembly cycle of one car, equal to 57.5 seconds, it becomes clear that a car with any other body type can be assembled in the interval between the completion of assembly of one
“sedan” and the start of assembling the next one. Thus, the manufacturing sequence will be as follows: “sedan”, another body type, “sedan”, another body type, etc.

Maximum assembly time for a station wagon or
“hardtop” is 3 min 50 sec (480:125). Comparing this time with the cycle
57.5 s, we will see that three sedan cars can be assembled in the interval between a station wagon and a hardtop. If the “station wagon” follows the first “sedan” along the conveyor, then the sequence of the stage would be as follows:
"sedan", "station wagon", "sedan", "hardtop", "sedan", "station wagon", "sedan",
“hardtop”, etc. This is an example of balanced production by product range. Real production reveals a conflict between the need to diversify products and the balance of production.
Unless product variety is required, specialized mass production equipment is usually a powerful means of reducing costs. However, Toyota produces cars with various combinations of bodies, tires, and additional accessories in a wide range of colors. An example is the release of three or four thousand types of modifications and configurations of the “Crown” model. To ensure production with such a variety of products, it is necessary to have universal, or flexible, equipment. Using a minimum number of tools and accessories on this equipment, Toyota has organized the production process in such a way that it is operated most efficiently.

The advantage of production leveled in terms of the volume of various products lies in the non-stop adaptation to changes in consumer demand due to a gradual change in the frequency of production of product batches without changing their size. This method is known as “fine-tuning” production using a kanban system. In order to organize work in this mode, it is necessary to reduce production time. Reducing production time requires, in turn, reducing the time for setting up and reconfiguring equipment in order to create a minimum batch of finished parts and assemblies.

Problems of organizing equipment changeover

The most difficult problem in ensuring smooth production is the adjustment and readjustment of equipment. For example, in the stamping process, reduction in production costs can be achieved by using one type of die for a long time. As a result, in stamping the quantity of products in a batch is maximized, and the costs of readjusting the die are reduced. However, when the end process is characterized by high product variety and inventory is kept to a minimum between the stamping press and the downstream body assembly line, the press line must make frequent and rapid changes in order to produce a wide range of parts.

At Toyota, the time for changing a stamp from 1945 to 1954 was about 2-3 hours, in 1955 and 1964. it was cut to a quarter of an hour and then, after 1970, dropped to three minutes.
To reduce the die change time, it is necessary to carefully prepare the necessary tool clamping devices, die and materials in advance, remove the dismantled die and install a new one. This phase of die installation is called external setup. In addition, the worker must pay attention to those operations that occur when the press is stopped. This phase of die installation is called internal setup. The most important thing is to combine internal and external adjustments as much as possible in time.

Design and organization of technological processes

Let's consider the procedure for designing and organizing production processes. Initially, at the plant, all five lathes, milling and drilling machines were installed side by side and each worker operated one machine, for example, a turner - only a lathe, etc. To ensure continuity of production flow at Toyota, the placement of equipment had to be changed. As a result, each worker had to work on three different machines. For example, a worker could service turning, milling and drilling machines, and a press. Such a system is called multifunctional.
In other words, a machine operator who worked on one machine, as was customary at Toyota factories, turned into a multi-machine operator.
On a multi-function line, a worker sequentially operates several machines, and work on each machine will continue until the worker completes his task in a given time cycle. As a result, each part that falls on the line is followed by another part, and strictly after the completion of the previous one. This method is called piece production. These conversions provide the following benefits:
-eliminate inventory that has become unnecessary between production operations;
-the number of workers can be reduced due to increased productivity;
-multi-machine workers can work at any part of the production process, and their professional self-esteem increases;
-each multifunctional worker can be employed in a team, and thus workers can help each other.

Work rationing

Work on standardizing operations at Toyota is somewhat different from usual. They determine mainly the sequence and mode of various operations performed by a multi-machine operator.

Production standards are indicated on two maps - a map of the sequence of technological operations, which looks like a regular technological map of operations performed simultaneously by workers and machines, and a technological map, which is posted for public viewing. It indicates the duration of the part production cycle - piece time, sequence of operations and standard production backlog.

Piece time is a standard time in minutes and seconds, uniform for all lines, during which one product (or part) must be manufactured on the line. This time is calculated using the following two formulas.
Initially, monthly output is calculated, which is determined by the amount of demand.
In the previous month, each production unit was given a daily production target and piece time. Such information is received from the planning office once a month for each subsequent month. Workers should be arranged so that a minimum number of workers are employed at each stage of production.

Kanban is not the only information for each stage of the production process. It is a type of current production information by which the current month's production volume is adjusted, while daily output and piece time are given in advance to create an overall production schedule for the entire plant.

The technological map shows the sequence of operations that must be performed by a multi-machine operator at his production site. It determines the order in which a worker selects a workpiece, installs it on a machine, and processes it. This order of operations is the same for different types of machines that the worker operates. Synchronization of operations on the line can be achieved when each worker implements all operations in accordance with the piece time.

The usual amount of work in progress is minimal, since it consists only of products that are on the machines at any given moment. Without this quantity of workpieces, a predetermined sequence of operations cannot be performed on its line. Theoretically, it can be assumed that if the entire line worked like a conveyor, there would be no need to carry any inventory on the line between production stages.

Automatic product quality control at the workplace

As noted, the two basic principles of a production system
"Toyota" is the principle of "just in time" and autonomy ("jidoka"). For a JIT system to function without failure, 100% of products without defects must be delivered to downstream production areas, and this flow must be continuous. Thus, quality control is so important that it must coexist with the JIT system through the Kanban system.
Automatic quality control means installing devices on the line that could prevent the massive appearance or failure of equipment. The word “autonomization” (“jidoka”) should be understood as the organization and autonomous control of violations of the processing process.

A stand-alone machine is one on which an automatic stop device is installed. At Toyota factories, almost all machines are equipped with automatic stops, which makes it possible to prevent defects in mass production and turn off the equipment in the event of a breakdown. The so-called “protection against careless or inept handling” is one such device that prevents defects in operation.

The idea of ​​autonomous devices has also been extended to manual production lines. If there is any deviation from the norm on the line, the worker stops the entire line by pressing a button. The express scoreboard in the Toyota system plays an important role of visual control. If a worker needs help to eliminate a delay in work, he turns on the yellow light on the display. If he needs to stop the line to troubleshoot a problem, he turns on the red light. In general, autonomation is a mechanism that allows autonomous detection of deviations in the production process.

Activation of the human factor

The Toyota production management system allows you to achieve various goals (operational regulation of production, quality assurance, activation of the worker himself) in the course of achieving its main goal - reducing production costs. Activation of workers makes the system
“Toyotas” are truly vital.
Each worker has the opportunity to make suggestions and suggest improvements at quality circle meetings. Such a process of putting forward proposals leads to improvements in operational production management by changing the sequence of operations when changing the duration of production cycles. Quality is guaranteed by preventing the repetition of defects and malfunctioning machines and, finally, by activating the workers themselves, involving everyone in the management of the production process.

The main goal of the Toyota production system is to increase profits by reducing production costs, that is, by eliminating the costs of unnecessary inventory and labor. The concept of costs in this case is very broad. Typically these are cash expenses in the past, present and future, derived from sales revenue. Thus, costs include not only production costs and distribution costs. In order to achieve cost savings, production must quickly and flexibly adapt to changes in market demand. This ideal is embodied in the just-in-time system, which ensures that the right quantity of the required product is produced at the right time. At Toyota, the kanban system arose as a means of operational management of production during the month and as a mechanism for the just-in-time system. At the same time, to introduce the Kanban system, production must be adapted to changes in the volume and range of parts coming from the assembly line. This organization requires a shorter order fulfillment cycle since different items must be produced every day. This is achieved through small-scale production, as well as one-piece production and delivery. Small-scale production can be achieved by reducing changeover time, and single-piece production can be achieved by using multifunctional workers.

Where did these fundamental ideas come from? What brought them to life? They were largely determined by the market constraints that characterized the Japanese automobile industry in the early post-war years: high variety with low production volumes. Toyota had consistently held the view since the 1950s that it would be dangerous to blindly copy Ford's system (which could lower average costs by producing products in large quantities). American mass production technology was effective during a period of high growth that lasted until 1973. During the low growth era following the oil crisis, the Toyota production system attracted attention and was applied to various industries in Japan to increase profits by reducing costs and losses. American and European companies may adopt this system, but may encounter difficulties if they use it only partially.

general information

Toyota in the world.

Among the largest automobile companies, Toyota Motor Corporation ranks third in the world in terms of sales. Global sales volumes
Toyota in 2001 totaled 5.94 million vehicles.

As of March 2002, Toyota's production structure included 12 factories in Japan and 54 manufacturing companies in 27 countries that produce components for the Toyota and Lexus brands.

The company currently employs 215,000 people, thanks to whose joint efforts Toyota cars are available to residents of more than 160 countries.

| |
|MAIN MARKETS |
|(data for 2001, sales in thousand units, Toyota |
| and Lexus) |
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| |
| |
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|USA - 1,741.3 |
|Saudi Arabia - 96.3 |
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|Australia - 143.6 |
|Germany - 87.6 |
| |
| |
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|Canada - 127.8 |
|Thailand - 83.5 |
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| |
| |
|UK - 115.4 |
|South Africa - 82.7 |
| |
| |
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|Italy - 100.2 |
|Indonesia - 82.2 |
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| |

The company's sales in Japan alone reached 1.71 million vehicles, while sales outside Japan amounted to 3.54 million.
Favorable conditions in North America, as well as a gradual increase in demand in Asian countries, enabled the company to end the year exceeding the previous year's results for the tenth time in a row.

Having begun its active development in the post-war period, Toyota became the largest automobile company in Japan, where it currently owns more than 40% of the market.

The company has been exporting cars since the late 50s: the first Crown model was exported to the United States in 1957. Since then Toyota Motor
Corporation began to gain a reputation as a serious competitor to local car manufacturers in almost all countries of the world.

Toyota in Europe.

The first Toyota car was imported into Europe in 1963. This was the beginning of a gradual strengthening of the company's position in the European market, which led to the fact that in 2000, Toyota Motor Corporation delivered its 10 millionth car to a buyer in Germany. Word
“Growth” has become firmly established in the vocabulary of European Toyota employees. TO
In 2005, the company's plans include achieving annual sales volumes of
Europe in the amount of 800,000 cars. The company's 25 European distributors and 3,500 dealerships will contribute to the implementation of this task.

In addition, Toyota continues to increase production directly in European countries. To existing plants in the UK, France and
Turkey will soon add factories in Poland and the Czech Republic (a joint project with PSA
Peugeot Citroen, S.A.). In 2001, excellent sales performance allowed the company to finish the year with record numbers for the fifth time in a row. Total sales were 666,035 vehicles, up 1.6% from 2000.

The best-selling models in Europe were the Yaris (241,045 vehicles),
Avensis (115,446) and Corolla (95,238). Toyota now ranks first in terms of the number of cars sold in Norway, Finland and Iceland.

Activities of the company in Russia.

Since the beginning of the 90s, when the first official dealers of the company appeared in Russia, the history of active promotion of the Toyota brand on the Russian market begins.

In 1998, the Moscow representative office of Toyota Motor opened
Corporation, which was created to assess the market situation and help increase sales through trading companies and a network of dealers in the main regions of Russia.

Due to the dynamic development of the automotive market, it was decided to create a national sales and marketing company LLC
"Toyota Motor". This announcement was made in 2001 as part of
Moscow Motor Show.

According to forecasts, the Russian market will soon reach a sales volume of 2 million cars per year. The company's immediate plans
Toyota conquers 10% of the Russian imported car market, which is approximately 20,000 cars per year.

The newly created Toyota Motor LLC will help increase sales and become the basis for achieving the company's goals in Russia.

Currently, in the European part of Russia, car sales
Toyota is handled by 10 official dealers of the company: 5 of them are located in
Moscow, 2 in St. Petersburg, 2 in Yekaterinburg and one in Ufa.

All of them not only sell cars and spare parts, but also provide service in full accordance with Toyota's high quality standards.

In 2001, official Toyota dealers sold 4,461 cars in Russia, and in 2002 – already 8,302 cars.
In Russia, the Land Cruiser 100 and RAV4 SUVs have proven themselves to be excellent. In 2001, a new Camry model was introduced in Russia, and in April 2002, deliveries of one of the most popular models produced by Toyota, the new Corolla, began to the Russian market. In 2003, two premieres will be presented on the Russian market: Avensis and
Land Cruiser Prado.

In Fig. 3.2 these losses are represented on a simple time coordinate for the casting, machining and assembly process. In a traditional process cycle, most of the time spent processing material is waste. This diagram will be familiar to anyone who has attended a Lean Manufacturing or TPS workshop, and I won't waste time commenting in detail. From a lean manufacturing perspective, you first need to map the value stream according to the flow of material (information) through the process of interest. To get the full picture, it's best to walk the route yourself. Draw a diagram of this movement and calculate the time and distance, and you get a diagram called a “spaghetti diagram”. Even those who have worked in production most of their lives are amazed at the results obtained. In Fig. Figure 3.2 shows that we are stretching very simple product processes to such an extent that identifying value-adding activities becomes challenging.

Rice. 3.2. Losses when creating added value

I found a striking example of the above while working as a consultant for a company that manufactured steel nuts. The seminar participants - engineers and managers - assured that lean manufacturing would not bring anything to their company, the process was too simple. Rolled steel is cut into pieces, holes are punched in them, after which the blanks undergo heat treatment and are placed in boxes. Blanks are processed on automatic machines at a speed of hundreds of nuts per minute. When we looked at the value stream (and therefore at the non-value-added activities), it became clear that the company's employees' claim was simply ridiculous. We started from the receiving area, and every time it seemed that the process was already completed, we had to go around the entire plant again to get to where the next stage of processing was taking place. At one point, the nuts were taken away from the factory for several weeks to be heat treated, since management calculated that contracting for this work would be more profitable than processing the nuts themselves. In the end, it turned out that the process of making nuts was delayed for weeks, or even months. Moreover, most technological operations take a few seconds, with the exception of heat treatment, which is carried out over several hours. We calculated the share of time spent on creating added value for different types of products and obtained figures from 0.008% to 2–3%. Everyone's eyes widened! At the same time, the equipment was often idle, the machines were running idle, and deposits of workpieces were piled up around. Some savvy manager decided that it would be cheaper to contract a maintenance contract with another business than to hire full-time people. Thus, when a machine broke down, there was often no one to fix it, let alone perform preventive maintenance. As a result, for the sake of efficiency in one area, the value stream was slowed down and stretched due to work in progress, inventory of finished goods, and time spent identifying problems (defects) that reduce quality. As a result, the company lacked the flexibility to meet changing customer demands.

Process Improvement: Traditional and Lean Approaches

The traditional approach to process improvement focuses primarily on local efficiency - “look at the equipment, at the value-adding activities, and make uptime longer, cycle times shorter, and where possible, replace humans with machines.” As a result, the efficiency of an individual operation increases, but this does not have a tangible impact on the value stream as a whole. It is important to remember that most processes involve very few value-adding activities, and improving just these activities is not critical. When we analyze the process from a lean manufacturing perspective, we see huge reserves that can be used by eliminating waste and eliminating non-value-adding steps.
If you restructure production from a lean thinking perspective, the main potential for improvement is the elimination of a huge number of activities where added value is not created. At the same time, the time spent creating added value is also reduced. This can be seen if you take a process similar to the production of nuts and create a cell that operates on the principle of one-piece flow.
In lean manufacturing cell is a collection of people and machines or workplaces, organized and operating in accordance with a sequence of technological operations. Cells are created to ensure the flow of single products (services), which one after another undergo various technological operations, for example welding, assembly, packaging. The speed of such processing is determined by the needs of the consumer, who cannot be kept waiting.
Let's return to the example of the production of nuts. If we set up a cell where operations are carried out in a linear sequence, and we pass one nut or small batches of nuts from one operator to another in a one-piece flow, then what took weeks could be done in a few hours. This example is not unusual. Companies around the world have demonstrated time and time again how one-piece flow can work wonders: increased productivity, improved quality, reduced inventory, freed up space, and shorter lead times. Every time the results exceed all expectations, and every time it seems like a miracle. This is why the one-piece flow cell is the basis of lean manufacturing. It allowed Toyota to eliminate most of its losses across all eight categories.
In practice, the ultimate goal of lean manufacturing is to organize the flow of one-piece products across all types of work, be it design, order taking, or production itself. Everyone who has learned from their own experience what opportunities the philosophy of lean manufacturing opens up becomes its ardent adherents and strives to save the entire surrounding reality from waste, applying this principle to every process - from management to technology. However, it must be remembered that, just like any other tool or process, such cells should be used wisely. Imagine that a nut factory created a cell for cutting steel and punching holes in workpieces. To do this, the plant purchased expensive computerized equipment, which constantly breaks down. This leads to downtime and lost working time. However, the nuts are still taken out of the factory for heat treatment, and weeks pass before they are returned. There are supplies everywhere, as before. Shop workers, seeing colossal losses, laugh at such a “lean cell”, which has nothing to do with the principles of lean production.

The TPS House scheme: a holistic structure, not a set of techniques and methods

For decades, Toyota successfully applied and improved TPS without documenting the theory of its production system. Workers and managers constantly learned new methods and improved old ones, putting them into practice. There was a good flow of information within the relatively small company, so that best practices and systems were quickly learned from other plants and then from suppliers. As Toyota's methods continued to improve, it became clear that Toyota would always be challenged with supplier training. Therefore, Fujio Cho, a student of Taiichi Ohno, developed a simple diagram in the form of a house.
The TPS House diagram (see Figure 3.3) is widely known to those involved in manufacturing. Why exactly the house? Because a house is an integral structure. For a house to be strong and durable, the roof, supports and foundation must be strong and durable. A weak link can destroy the entire system. There are different versions of this scheme, but the basic principles are the same. Goals first: excellent quality, low costs and extremely short lead times are the roof. Then there are two external pillars: JIT, which is the best known attribute of TPS, and jidoka, the goal of which is to prevent defective parts from being passed on to the next stage of the process and to free people from machines, that is, to provide automation with human intelligence. People are at the center of the system. And finally, the components that are the foundation: standardized, stable and reliable processes and heijunka, that is, a production schedule in which fluctuations in volumes and assortment will be minimal. Balanced schedule heijunka Maintains system stability by helping to keep inventory to a minimum. Sharp surges in the production of one type of product due to the exclusion of other products from the range will lead to a shortage of parts or will require the creation of significant inventories.

Rice. 3.3. Toyota Production System

Each element of the house is important in itself, but the relationship between them is even more important. The JIT system minimizes inventory, which eliminates many problems in the production process. The flow of single products ensures the sequential production of products at a speed that meets customer needs. Keeping inventory to a minimum means that quality defects are identified immediately. This is facilitated by the method jidoka, which allows you to stop the production process. To resume production, workers must resolve the problem immediately. The foundation of the house is stability. It would seem that working with minimal supplies and the possibility of stopping production creates instability. But such a system forces workers to take urgent action. In mass production, if a machine stops, there is no rush: the time will come, and the maintenance department will fix it, but meanwhile production continues as usual, using a reserve stock of parts. In lean manufacturing, if the operator needs to stop the equipment to solve a problem, the remaining areas stop one by one, and the situation becomes critical. Therefore, all participants in the process strive to jointly solve the problem as quickly as possible in order to get the equipment up and running again. If the problem persists, management concludes that the situation is critical and that it may be time to focus on a Total Productive Maintenance (TPM) system to teach employees how to clean, inspect, and maintain equipment. In order for such a system to operate smoothly, a high level of stability is required. People are at the center of the house, since the necessary stability can only be achieved through their tireless improvement. People should be trained to notice waste and identify the root causes of problems. The method of repeatedly asking the question “Why?” helps to find the original source of the problem. The problem should be dealt with on the spot by seeing the situation with your own eyes (genchi genbutsu).
In some versions of this model, the foundation includes a number of other principles of the Toyota approach, such as respect for people. Toyota itself usually includes only cost, quality and delivery discipline in its list of goals, but in fact, the company's enterprises in Japan practice a broader approach to goals (quality, costs, delivery discipline, safety, morale) with some variations. Toyota never sacrifices worker safety for the sake of production. She simply does not have such a need, since eliminating losses has nothing to do with creating stressful conditions and does not threaten safety. Here is what Ono wrote about this:

Of course, we are interested in any method that allows us to reduce the number of man-hours in production, and therefore reduce costs, but the basis for us is safety. Sometimes improvements do not take into account safety requirements. In this case, you need to return to your starting point and reconsider the task at hand. Inaction is unacceptable. Set the task differently and move forward.

Conclusion

TPS is not just a set of lean manufacturing tools. All the elements of this complex system: JIT, cells, 5S (Sort, Organize, Clean, Standardize, Improve - tools discussed in Chapter 13), kanban etc. - function as parts of a single whole. The main task of the system is to encourage people to constantly improve their work process. Unfortunately, many books on lean manufacturing mislead the reader by describing TPS as a set of tools for improving operational efficiency. The challenge of using these tools is overlooked, as is the fact that people are at the center of the system. More broadly, TPS is about putting the Toyota Way into practice. The focus is on the shop floor, but the principles of this approach are much broader and apply not only to production, but also to design and service delivery.
In the next chapter we will look at the 14 principles of the Toyota Way. This is the foundation of Toyota's culture and is what most of this book is about. In Chapters 5 and 6 we'll see how these principles worked in the creation of Lexus and Prius. You will learn what difficulties Toyota faced and how it overcame them.

Chapter 4
14 principles of the Toyota Way: the quintessence of the manufacturing culture that underpins TPS

Since the founding of Toyota, our guiding principle has been to benefit society by producing high-quality products and services. Doing business based on this principle has shaped the values, beliefs and practices that have enabled us to achieve competitive advantage. The combination of these working methods and value orientations of management represents the Toyota approach.

Fujio Cho, President of Toyota (The Toyota Way, 2001)

The Toyota approach goes beyond tools and technology

So, you have introduced your system kanban. (Kanban in Japanese - “tag”, “card”, “receipt” or “signal”. This is the name of the tool for managing the flow and production of products in the “pull” system adopted by Toyota.) You have connected andon, a device for visual monitoring of a production area that alerts workers to defects, equipment malfunctions or other problems using light, sound and similar signals. Now your workspace looks like a Toyota factory. But gradually everything returns to normal, and work goes on again as before. You call the Toyota Production System consultant, who shakes his head in disapproval. What's the matter?
In fact, the main work of implementing lean manufacturing is just beginning. Your workers have no idea about the work culture behind TPS. They are not ready to work tirelessly to improve the system and engage in self-improvement. The Toyota Tao exists primarily thanks to people who work, communicate with each other, make decisions and develop, improving each other and themselves. If you look at successful Japanese companies that operate under a lean production system, you can immediately see how actively workers make suggestions for improvement. But Toyota's approach doesn't stop there: it encourages, supports and requires everyone to participate.
The more I studied TPS and became immersed in the Toyota Way, the more I realized that it is a system that provides people with the tools to continuously improve their work. The Toyota Way is trust in people. This is a kind of culture, and not a set of techniques and methods for improving and increasing efficiency. Reducing inventory and identifying and solving hidden problems is possible only with the help of workers. If they are not responsible enough, do not understand the task at hand, and do not know how to work as a team, downtime and stockpiling will begin. Every day, engineers, skilled workers, quality specialists, suppliers, team leaders and, most importantly, operators are constantly engaged in solving problems, and this allows everyone to learn how to solve them.
One Lean tool that teaches teamwork is called 5S (Sort, Organize, Clean, Standardize, Improve; see Chapter 13 for more details). We are talking about a set of measures to eliminate losses that lead to errors, defects and injuries. The most difficult component of 5S is, perhaps, the fifth – “improve” (stimulate, maintain self-discipline. – Note scientific ed.). This point is the decisive condition for the success of the other four. Maintenance is impossible without appropriate education and training, and workers must be encouraged to comply with operating rules and improve their work methods and their workplace. The conditions for success in achieving the goals are the commitment of management to these approaches, appropriate training and production culture. Only then will maintenance and improvement become commonplace for everyone, from shop floor workers to management.
This chapter provides a brief overview of the 14 principles that make up the Toyota Way. The principles are grouped into four categories:
1, long-term philosophy;
2, the right process produces the right results (this is about using a range of TPS tools);
3, add value to the organization by developing your employees and partners;
4, Constantly solving fundamental problems stimulates lifelong learning.
The second part of the book is also structured around these four categories, which together represent the four-part model of the Toyota Way presented in Chapter 1. In the next two chapters, I will show how these 14 principles worked in the creation of Lexus and Prius. If you'd like to jump ahead to a detailed look at the 14 principles, you can skip to Chapter 7 right now. However, I strongly recommend that you read what follows first.
You can use a whole range of TPS tools, but still follow only a few selected principles of the Toyota approach. This way, you may be able to improve your performance for a while, but the results won't last long. But if a company follows all the principles of the Toyota approach when implementing TPS, it is sure to achieve sustainable competitive advantage.
When I taught a course on Lean Manufacturing, I often heard the question: “How can I apply TPS in my organization? We do not mass produce cars; we make small batches of customized products" or: "We work in the service industry, so TPS is not for us." Such reasoning suggests that people do not understand the main thing. The essence of lean manufacturing is not to copy Toyota tools designed for a specific production process. Lean manufacturing means developing principles that are specific to your organization and sticking to them, effectively creating added value for customers and society. This way your company can become profitable and competitive. The Toyota Way principles provide the starting point. Toyota uses them not only on assembly lines for mass production. In the next chapter we will see how some of these principles are applied to the organizations that provide Toyota product development services.

Brief description of the 14 principles of the Toyota Way

Section I. Long-term philosophy
Principle 1. Make management decisions with a long-term perspective, even if it is detrimental to short-term financial goals.
Use systematic and strategic approaches when setting goals, and all operational decisions should be subordinated to this approach. Realize your place in the history of the company and try to take it to a higher level. Work on the organization, improve and rebuild it, moving towards the main goal, which is more important than making a profit. A conceptual understanding of your purpose is the foundation of all other principles.
Your main task is to create value for the consumer, society and the economy. When assessing any type of activity in a company, consider whether it solves this problem.
Be responsible. Strive to control your destiny. Believe in your strengths and abilities. Be accountable for what you do, maintain and improve the skills that allow you to produce added value.

Section II. The right process produces the right results
Principle 2. A continuous flow process helps identify problems.
Reengineer your process to create a continuous flow that effectively adds value. Minimize the amount of time unfinished work sits idle.
Create a flow of products or information and establish connections between processes and people so that any problem is identified immediately.
This flow must become part of the organizational culture, understandable to everyone. This is the key to continuous improvement and development of people.
Principle 3. Use a pull system to avoid overproduction.
Make sure that the internal consumer who accepts your work gets what he needs at the right time and in the right quantity. The basic principle: in a just-in-time system, the stock of products should be replenished only as they are consumed.
Minimize work in progress and inventory storage. Keep a small number of items in stock and replenish these stocks as customers pick them up.
Be sensitive to daily fluctuations in consumer demand, which provide more information than computer systems and charts. This will help avoid losses due to the accumulation of excess inventory.
Principle 4. Distribute the amount of work evenly ( heijunka): work like a tortoise, not like a hare.
Eliminating waste is only one of three conditions for lean manufacturing success. Eliminating overload of people and equipment and smoothing out uneven production schedules are equally important. This is often not understood in companies that are trying to apply lean principles.
Work to distribute the load evenly in all processes related to production and service. This is an alternative to alternating rush jobs and downtime, characteristic of mass production.
Principle 5. Make stopping production to solve problems part of the production culture if quality requires it.

Irina Krokhmal - Head of the Production System Development Department of KAMAZ-Metallurgy OJSC

Basic principles of T - TPS:
. JIDOUKA(Jidoka) - Combined processes, quality (previously they used the definition “Autonomization”)
. JIT (Just in time) - Right on time
. Cost Down- Cost reduction
. Motivation
. KAIZEN- Continuous improvements

T-TPS is an important part of the integrated TMS system, which also includes sales and service of the Toyota concern.
TMS - Toyota Management System
T-TPS -Total Toyota Production System
TDS - Toyota Development System
TSS - Toyota Sales System
TPS - Toyota Production System

Effect of Total Toyota Production System

Until 1980, Toyota was managed according to the “top-down” or Top-dovun Management principle. A top-level manager came to the production site and recommended eliminating the shortcomings; subordinates were given instructions on what exactly to do, and failure to comply entailed punishment. This approach led to overtime work and exhaustion to eliminate comments. Everyone worked ahead of the expectation of the next top check. The workers even created a secret warning system, and where the inspection intended to arrive, the workers scattered. I had to think and change my approach to production management.

Since 1980, the self-study method (Jichuken) has been proposed for production management. This formed the core of the Toyota production system:

• Independent analysis and ranking of problems;
• In-depth study of the causes of problems;
• Independent development of events;
• Improvement of the production site;
• High level of motivation.

This approach required the main thing - the activation of the company's personnel. As production personnel expand their scope of activities, Toyota pays great attention to the education and training of workers. Workers are also assigned functions that are very important to the built-in quality process and the continuous improvement process. Therefore, an important condition when building management using the Jichuken method is the training and development of workers.

When creating T-TPS and managing the Jichuken method, the logistics and quality departments became subordinate to production, and workers are trained and perform the functions of controllers and forwarders: they competently work with the parameters of suitable products and manage kanban cards. Currently, there are no quality control posts at Toyota; control is not needed at all during finishing operations, because Built-in quality is created in production, executed and guaranteed by production. And the quality department performs the functions of constant monitoring of parameters for assessing operations, develops, implements and monitors measures to improve product quality. All these changes made it possible to have 5-6 defective units out of the total number of items per 1,000,000 products. Under previous management, there were 3-4 defective units per 1000 units. Toyota's goal is 0 defective units and they are constantly working on this. Production workers at Toyota are the strongest link.

Differences between the old TPS system (Old TPS) and T - TPS

Emphasis on motivation and kaizen	Modeling the operation of lines and flows	Staff activation, continuous process improvement (kaizen)
Interaction between management and workers	Management through the direction of the manager	Management through independent thinking
Promoting management approaches through motivation	Control and direction from above	Everyone participates in kaizen
Guaranteed quality	Autonomation	Combined processes
Significant effect	Any improvements	Think and earn
Cost reduction	Active Flow Simulation	Process engineering from line design

Power of Company

Toyota experts assess the strength of a company by the level of strength of the company's personnel. To do this, use the formula

n
Company success =( P personality)*( A bility)*( M)
i=1 i i i

n= Works+Staff
Where
. P- personal qualities of a company employee (character)
. A- skills, professionalism of the employee
. M- level of employee motivation
This determines Toyota's success as a company, that is, profit and quality.

The role of a leader, a manager at any level of a company, is to constantly work to raise the level of skills and motivation of staff, in other words, to activate workers in sections, departments and office employees. Toyota management does not consider itself outstanding, but this principle that the company implements produces results and distinguishes it by its main strength; Toyota has very skillful and highly motivated people.

Toyota constantly evaluates itself using Global Benchmarking (GBM) with an emphasis on T - TPS in a five-point system. This helps determine the company's place at the global level. Toyota specialists were invited to evaluate other companies around the world using this system in the USA, Korea, China, and Japan. If the score reaches 3 points, the company is considered competitive in the world. Currently, only Toyota has a rating of 5 points. Most companies in the USA and Korea have 2-3 points and do not have 4-5 points; in China there are only 1-2 points so far.

The assessment is built according to a hexagon diagram, each of the corners means an assessment parameter, and the level from the center means points (from one to five).

Production sites and personnel
. standardization
. staff training
. logistics level
. equipment
. quality (how much can quality be guaranteed)

As already said, Toyota is distinguished from other companies by people with multifunctionality. This is an important advantage and is fully provided and supported. Each production site must have a matrix with a list of jobs (operations) and a list of workers in this site, in which the main indicators of the employee (skills) are reflected in the shaded sectors of the circles.
1 - completed training
2 - know how to perform the operation
3 - I can do quality work
4 - I can teach someone else

This way of assessing site workers and visualizing skills is important. If you need to increase the takt time, the volume of work, and the staff is not very trained, then it is unlikely that the work will speed up and the task will be completed. The more developed the multifunctionality, the easier it is to change takt time and production volume. Toyota always changes the takt time once a month. If qualifications allow, it is also useful to rotate employees.

Training at Toyota is systematized. People learn from the moment they enter. As workers undergo training, they are assigned skill ranks. The highest rank is S, very few people have it. Main ranks A, B, C…. The ranks of workers are also visualized and posted in the workshop areas. The training is carried out one-time, the theory is read and then you can begin to implement it. During training, workers have to grasp everything on the fly, because... The theory is taught only once. But during the construction of T-TPS, this knowledge must be applied in practice, so there are trainings, they are carried out several times. During the training, skills are acquired on how to do it correctly in practice. After listening to information once, it is not possible to remember everything. Therefore, the training step is important: to remember with your body the movements for a specific work operation without errors. Not wasting time repeating information is visualization. This method helps both the worker and the manager. Important: convey information and consolidate it.

The main tool for activating working production sites is “Quality Circles”. This form exists on an ongoing basis, its participants are members of the site team. The main goal of the “quality circle” is an independent analysis of identified problems in the production operations of the site, increasing the level of product quality and seeking to reduce production costs.

There is competition between sections of the enterprise (“quality circles”) on the quality of work performed and on solving production problems. The results are summed up once a month at a general meeting of “quality circles”. The best works are awarded. It is important. At the sites, the level of skills increases, the level of knowledge and motivation increases.

In addition to the basic technological requirements for performing work operations, Toyota’s main requirement is requirement not to make a marriage, not to transfer a marriage. In this direction, Toyota uses the ANDON tool in the production process. Any worker is given the right to stop the production line, if the problems are not corrected within 60 seconds of detecting a deviation in workmanship. As a rule, stopping happens extremely rarely.

Andon - warning system

Toyota is never punished for defects. On the contrary, if it happens that for some reason the marriage is made, discovered and presented, this is encouraged. Each work site plays the role of a quality controller. If a worker detects a deviation in the production process and this could lead to a defect, he immediately acts: he gives a signal using a button or cord, after which the signal lamp for the manager lights up. Each precinct has an Andong scoreboard. This is an electronic display that reflects all operational operations of the site. At the same time, it is a warning system for all workers on the site. The site manager immediately approaches the problem area at the signal of the yellow lamp. He has 60 seconds to solve and, as a rule, the problem is solved in 60 seconds. If they don’t decide, then after 60 seconds the red lamp will light up - this is a signal to everyone to stop the line. It is important.

At Toyota, visualization is very important. Visualization is a way to prevent and control an emergency situation. Visualization is a reminder of important information; it is a form of consolidating the acquired knowledge for a specific operation.

JIDOUKA (Dzhidoka) - Combined processes, quality (previously they used the definition “Automation”)
Built-in quality. Principle: only produce what is suitable. Do not produce defects, do not allow defects to appear, do not transmit defects.

Product quality management is a system of stops and warnings in case of defects. The quality control process is supported by inexpensive instruments and cheap control methods. In-process controllers are production workers who perform work operations. The production department bears full responsibility for quality. At each site, a suitable product is made and only suitable products are transferred from site to site. Therefore, it is customary to talk about combined processes or a combination of processes, and not autonomization, as was previously accepted.

A control matrix is ​​available for a thorough assessment of controls. In traditional control schemes, it is difficult to assess where defects occur, a lot of time is lost, and as a result, stocks of defects are created! In most enterprises, defect data is taken from a personal computer and relies too much on unreliable information. The PC reflects only a small part of reality, so it is customary for Toyota to identify defects at every processing stage. If the cause of the defect is discovered, measures (kaizen) are immediately implemented. The first step is to perform an on-site analysis of the problem. Or as they say in Toyota: a crime is investigated at the crime scene, the weapon used to commit the crime.

All useful information on defects is posted in the “Quality Corner” at each site. A marriage sample and documents for this marriage are required. This is supported by the production department, not the quality control department. Built-in quality is created by those who produce, guarantee and ensure quality. The quality control department is assigned the function of supporting the production department. The quality control department performs various timing and time measurements.

There are tools to identify defects:
. In case of marriage STOP!
. Do not accept or transfer marriage!
. Quality check card with 5 levels: poor quality (BACK), slightly better, tolerable, good, very good.

The product defect level is represented by a matrix. This matrix is ​​filled in for each section. There are operations on the site. All of them are recorded in a matrix. Operations are rated on a 5-point scale.

Table for rough example

(a) - assessment that the details of the required parameters and ease of execution
(b) - assessment based on checking the technical conditions of the operation

The parameters and characteristics of the required quality are included in the matrix being developed in relation to a specific site. For all low matrix scores, urgent measures (kaizen) are carried out. This improvement has significantly increased the level of quality.

Now at Toyota, such a quality report is also used in auxiliary production when improving processes at each workplace. People are encouraged to acknowledge the detected defect, the problem is urgently sorted out and the causes are eliminated.

Cost Down - Cost reduction

At Toyota, everyone thinks every day about reducing product costs. It is important not to do anything unnecessary! Do not create excess inventory, do not do work that no one ordered. They are engaged in cost reduction with the involvement of all personnel, starting with the design of new products. Production is actively engaged in cost reduction. Cost control is carried out by a dedicated foreman. He controls the cost of raw materials, energy costs, and labor costs.

Previously, information on cost at Toyota was closed, but today information on cost is transferred to production departments in order to reduce it. Every production department specialist must think about cost and look for ways to reduce it. With the previous approach, management was: heads of departments and workshops controlled work processes and gave instructions. Now, in addition to this, there is a requirement to reduce costs, be in contact with employees, activate workers, instill skills in introducing improvements, train staff, increase productivity and quality.

An important tool in achieving cost reduction is improvement (kaizen)
. 5 S =4 S +1 S (improvement)
. Visualization
. Execution of STANDARD operations
The effect is the activation of employees and a high level of motivation.

5 S assessment: conscious and subconscious

Toyota believes that it is necessary to grade each work site. It is necessary to clearly evaluate the effect of the 5 S - this is the activation of employees and areas. Grades improve skills and motivation. Toita is constantly working to improve workers' skills and motivation. As a rule, a group of people works at each site. The goals that the group sets for itself are achievable. If the group achieves the goal, then the participants are satisfied. It is important to maintain an atmosphere of joy. Scientists have concluded that the brain perceives joy as an addiction and strives to repeat it. The concept of 5 S ratings is built on these dependencies at Toyota. It is important to constantly influence the site group and move the group up to the real goal. There is no need to stabilize grades 2 and 3. This leads to a decrease in results and a decrease in the level of motivation. Any score can be good, but it can also improve. The manager must be well aware of the peculiarities of working with the group and be sure to praise the workers even for minor improvements. Promotion of improvements is especially necessary and important.

Thinking works with theory; it is important to build a transition from planning to action. For what reason do we not take action if we know everything well? It is required to influence the conscious and subconscious mind and, in particular, to increase motivation. Often the subconscious is not ready, even if the conscious mind determines the need for action. In order to transfer information from consciousness to the subconscious, it is necessary to increase motivation. Part of the brain is responsible for motivation. Managers must understand how to influence a person’s spiritual state and be able to increase motivation.

All activities of the previous Toyota production system were aimed at reducing inventories, reducing costs, and improving quality, that is, management did not think about the happiness of employees and the company. Total - TPS sets a goal: to achieve the level of happiness of each employee and thereby increase their level through the 5 S, “quality circles”, TPM and other tools.

If the purpose of TPS was to reduce workers, then today in T - TPS this is not relevant. We need to start building a production system by activating staff and increasing motivation.

Statistics also show that in the course of daily work, workers become more aware and aware of the causes of equipment failure. The workers themselves make proposals for improving the maintenance of equipment and improving the process using the equipment. Essential workers perform maintenance work on operating equipment: know how to perform maintenance and perform inspections, cleaning, and minor repairs. This is done everywhere at Toyota, which is why this practice is called universal TRM equipment maintenance. But major repairs and scheduled maintenance are performed by service departments.

Work site crews regularly participate in meetings to evaluate TRM performance. Such meetings are called Bu-ay. Bu-ay is assessed by all teams (for example, at 2 factories there are 100 teams of 7 people per team). During the assessment, a list of 200 teams is compiled (from best to least good). At Bu-ay meetings, it is revealed which brigades are more active and which are less active. The meetings are attended by workers and plant management. The assessment affects crew salaries starting next month. That is, it can change every month depending on Bu-ay's assessment. Such a system creates healthy competition and a constant desire to work to improve the process. The meetings are very necessary and are a positive tool for Toyota.

JIT (Just in time) - Just in time

An important element of the Toyota production system is organized internal and external logistics.

The movement of diesel forklifts is prohibited in Toyota production buildings. Only electric vehicles with trailed trolleys are allowed. Paths are marked for the movement of electric vehicles and people: red for electric cars and trolleys, green for workers. Marked tape is placed along the supply route as a guide. The “agevi” system works (carts and movable structures, such structures are developed by the workers themselves). All Toyota employees think about reducing costs and impeccably carry out standard work and measures to reduce costs, including in logistics. Workers do not make unnecessary movements and do not perform work that does not bring value. Toyota racks are no more than 1.5 meters high, the level of the racks is tilted, allows you to visually view products, flows, traffic and does not block contact with managers.

An important achievement at Toyota is the elimination of interoperable inventories. In order not to create inventories of work in progress, much attention is paid to logistics and the KANBAN tool with kanban cards (quantity information for the delivery of components to the operation). The layout of the equipment is handled by production workers. They optimally arrange workplaces and create routes for the delivery of components. The logistics department is also part of production. This allows you to optimize logistics schemes.

The entire production process is visualized by an electronic display. It necessarily shows areas and processes, takt time, plan, fact, deviation, % of equipment utilization.

There are markings along the movement of the conveyor that allow you to evaluate the actions being performed in 12 seconds. In preparatory operations, a set of modifications is used for the main process, observing the necessary sequence. Parts assembly diagrams are used. Previously, assembled components lay on racks next to work stations, but now they are constantly delivered. Inventories from wheels are only multiples of the operation takt time. Essentially there are no reserves. The pull system is working. To organize your work this way, you need to constantly work with the plan and make timely adjustments. If production areas do not comply with the rhythm of plan implementation, then problems arise and confusion is created in accounting at processing stages. The KANBAN system works from the last section and does not create inventories, because the previous section does not do anything that is not required by the subsequent one.

KANBAN is also the movement of information. A Kanban card is a record. Toyota doesn't do anything unless there is confirmed information. The plan must be managed. Visual kanban cards are used as a tool at the boundaries of areas. In Toyota production, 90% of operations are organized using kanban cards and the kanban card is considered the most successful tool for adjusting production planning. Each previous section serves the next one. The container has a multiplicity of packaging spaces for the required order quantity. The card received with the container is transferred to a box and sent with information for the previous operation: delivery time, quantity (min, max), and other clarifications if necessary. Red and green cards are used. Red for transportation, green for production order (manufacturing). If manufactured parts are awaiting delivery they have a green card, and before transportation the green card is replaced with a red one. There are also

Kanban, it is used for batch management. If the supplier is in a remote area, then an electronic kanban is used, the supplier prints it, executes it and glues it into the container with the delivery of the ordered cargo.

To implement work with Kanban cards, serious training is required for both workers and managers. If you miss this, then kanban doesn't work.

In 2007, Toyota's profit amounted to $20 billion.

In 2008, Toyota's loss amounted to $5 billion

Toyota concluded that the reason was not the financial crisis, but that the company stopped paying special attention to inventory control. Any company needs to work with inventory management activities on an ongoing basis.

To reduce inventory levels, Toyota uses multiple deliveries: the more often we deliver, the better. Transport delivering goods must be equipped taking into account the production takt time, various necessary inventory items from different suppliers. It is important that inventories do not create excess storage and intermediate warehouses. If we compare the cost of transport and warehouse operations and excess inventory, it is more profitable to transport more often. When ordering to a supplier, the order is delivered in the order in which it is needed for production.

If the level of inventories of components and materials in production drops to a minimum, then the system operates in a similar way to ANDON; after sending an automatic signal to the supply service, it is triggered. This is how the pull system works. As for small parts, there is a place for them next to the operation (warehouse rack with hardware, washers, rivets, plugs...).

As a result, when working with supplies, a matrix for providing components, raw materials and materials is also created.

The level of logistics at Toyota is the highest in the world. And this level is provided by Toyota people. System JIT(Just in time) Just in time works due to high levels of motivation, skillful management of plans and well-trained personnel.

KAIZEN - Continuous Improvements

Kaizen at Toyota is a consequence of any analysis and study of the causes of problems. Staff activation is the main thing. Much attention is paid to production processes, improvement is an endless process. The T-TPS principles take Toyota to a development stage with an emphasis on improvement (kaizen) in the design of new lines before product release. The new approach to Toyota management is all kaizen. Previously, Toyota assessed both the submission and implementation of proposals. Now they only pay for implementation.