The principles of Toyota Production System (TPS) guides the design, manufacture and delivery of Toyota's products by maximising labour productivity, business efficiency and by minimising waste. Although Toyota does not use the term "Lean" to label its operations, "Lean" and "Just-in-Time" manufacturing accurately describe what Toyota practices. Toyota originally developed these principles and ideas as a manufacturing philosophy, but they are now applied across nearly every industry and type of operation.

The two key ideas that underpin the “Toyota way” of management are Jidoka (automation with a human touch) and Just-in-time, though the system has as many as 13 philosophies behind it. TPS was originally developed back in the latter half of the 20th century and has since seen continuous improvements delivering those that use it, greater speed to market and greater efficiency.

Wondering what makes the Toyota Production System so efficient? It’s the 13 pillars that every person involved in the organisation's business processes abide by. We’ve provided some more explanation, so you can implement lean changes in your own production processes. While some principles are specific to Toyota, others are relevant across all modern organisations. We’ll talk about the ideas you can apply to your own business.
 

The Principles of Toyota Production System​

The Toyota Production System (TPS) revolutionizes production and efficiency worldwide. Organisations across industries adopt its methods to optimise processes and deliver value. Originally rooted in manufacturing, TPS sets the benchmark for operational excellence. Here is the list of TPS:

Jidoka

Adopt the Jidoka concept to quickly identify and correct problems. This concept translates to "automation with a human touch" and lets machines detect errors and safely pause production. Humans then inspect and address the issue. The current trend shifts toward full "lights out" manufacturing, removing humans entirely from the production process. Toyota resists this trend and combines the best aspects of automation with human intellect and problem-solving abilities.

Just-in-Time

A lean workplace produces only what is needed, when it’s needed, reducing waste and maintaining an even production flow. Deliver new jobs or stock only when the current inventory is nearly depleted to save space and prevent disruption. Just-in-time operates with a pull system, not a push system, supplying the exact quantities needed for each phase of production.

This approach allows cars to be built efficiently without wasting money. Non-manufacturing processes, including administrative and service-based operations, also benefit from Just-in-Time principles, saving both time and money.

Poka-Yoke

Translated simply, poka-yoke means avoid mistakes. The TPS employs automatic devices that can stop the system if something goes wrong, to resolve the error before it escalates and leads to large quantities of wastage.

Hansei 

Hansei describes the process of learning from your mistakes. Recognising where things go wrong is essential to avoid it happening again. Toyota regularly holds hansei meetings to get the business team together and reflect on mistakes, to put preventative plans in place for the future. Problems and mistakes are embraced... so long as you learn from them.

Heijunka

Heijunka keeps the production process as smooth as possible. It ensures there are just enough parts to build a specific number of products (or cars, in Toyota’s case). It solves problems caused by sending numerous batches down the assembly line at once. This approach prevents workers from managing varying levels of requirements for different batches.

Kaizen

Kaizen is the Japanese word for continuous improvement, and is at the heart of lean manufacturing and the Toyota Production System. It empowers every individual in the workplace to speak up and make a change where they see room for improvement. Rather than setting aside quarterly production assessment meetings, Kaizen demands small but ongoing improvements.

Genchi Genbutsu

This directly translates as "Actual place, Actual thing". According to this idea: Managers should be present where the work occurs and observe the actual parts being produced.. Managers should not delegate their understanding of what is actually going on, if they want to know how to truly make improvements. Being separated from the manufacturing team stops leaders from seeing problems for themselves, making them unable to come up with the best solution.

Nemawashi

This principle says to openly share the decisions and information in the TPS with all employees. This idea focuses on large decisions that directly impact multiple stakeholders. Those affected should be genuinely involved in the decision-making process. Pushing through changes without consultation is a recipe for wasted effort, suboptimal solutions, and a reduced likelihood of success.

Muda, Muri, Mura

They all describe different forms of waste.

Muda means simply waste, or activities that don’t add value for the customer. There are 9 categories of this: over-processing, overproduction, waiting, motion, inventory, transportation, defects, space and wasted human potential.

Muri means an overburdened that can't keep up. TPS eliminates this to ensure consistent and reliable performance. Teams and customers are happier when work levels are reasonable and consistently achieved.

Mura translates to unevenness. This is one of the principles of Toyota production system​. Toyota's system eliminates this by training workers across a range of machines to ensure balanced work in production.

Ready To Implement principles of Toyota Production System​ (TPS)

Feeling inspired to implement TPS philosophies to your own systems? OE Partners can show you how to make improvements across critical business operations.