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Company Name Toyota Motor Corporation

Date founded August 28, 1937

Main Business
Activities Motor Vehicle Production and Sales

World Ranking 2nd largest Automobile Manufacturer ( Forbes ,2017)

Toyota's managerial values and business methods are known collectively as The Toyota Way.
The company’s core value reflects in "Lean Manufacturing" and Just In Time Production”.
The Toyota Way has 4 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 values and conduct follow five principles:

Challenge Kaizen Genchigenbutsu Repect Teamwork
Lean means manufacturing without waste
 reduce waste in human effort and inventory
 reaching the market on time
 managing manufacturing stocks that are highly responsive to customer demand
 producing quality products in the most efficient and economical manner .
Making only "what is needed, when it is needed, and in the amount needed!

In order to deliver a vehicle ordered by a customer as quickly as possible, the vehicle is efficiently built within
the shortest possible period of time by adhering to the following:
1. When a vehicle order is received, a production instruction is issued to the beginning of the vehicle
production line as soon as possible.
2. The assembly line must be stocked with required number of all needed parts .
3. The assembly line must replace the parts used by retrieving the same number of parts from the parts-
producing process (the preceding process).
4. The preceding process must be stocked with small numbers of all types of parts and produce only the
numbers of parts that were retrieved by an operator from the next process.
Kanban in JIT & Lean Manufacturing
Japanese term to “VISUAL RECORDS”.
JIT is implemented through the Kanban Cards. Kanban is an inventory control system used in
just-in-time manufacturing.
Kanban serves as a tool to control the levels of buffer inventories in the production; in simpler
terms to regulate production quantities.
Toyota line-workers used a kanban (i.e., an actual card) to signal steps in their manufacturing
It also standardized cues and refined processes, which helped to reduce waste and maximize
6 rules of Kanban :
1. Customer (downstream) processes withdraw items in the precise amounts
specified by the Kanban.
2. Supplier (upstream) produces items in the precise amounts and sequences
specified by the Kanban.
3. No items are made or moved without a Kanban.
4. A Kanban should accompany each item, every time.
5. Defects and incorrect amounts are never sent to the next downstream process.
6. The number of Kanbans is reduced carefully to lower inventories and to reveal
It helps organizations reduce risk by fine-tuning inventory demand and requirement processes. Using a
hybrid JIT Kanban system can help manufacturers maintain greater control over their inventory, while
improving operational efficiency and productivity.
Kanban is easy to learn and understand the methodology. It improves the workflow and minimizes the
time cycle. Some major advantages are :

 Kanban methodology increases the process flexibility.

 It reduces the wastes from the process.
 Kanban is easy to understand the methodology.
 It improves the delivery flow.
 It reduces the time cycle of the process.
a Japanese term for incremental improvement process. Through Kaizen key members of the
production process collectively come up with ways to improve quality, efficiency, and the work
environment to improve manufacturing processes. By indoctrinating employees into the
improvement frame of mind, employees are able to identify opportunities for improving their
5S is the foundation of all improvements and is the key component of establishing a Visual
Workplace. Both are a part of Kaizen — a system of continual improvement which is a
component of lean manufacturing.
 Most of the disadvantages of Kanban is due to misuse or mishandling of Kanban board.
Some common disadvantages are given:
 Less Effective in Shared-Resource Situations, Infrequent orders may render the kanban
process ineffective
 Product Mix or Demand Changes May Cause Problems, As the kanban system assumes
stable, repetitive production plans.
 Outdated Kanban board can lead to issues in the development process.
 Sometime Kanban team make the board overcomplicate.
 Lack of timing is another disadvantage because there is no timeframes are associated
with each phase.

 Each production line should have their separate signaling cards

 Kanban should try to increase its efficiency in push strategy as well.
 Kanban boards should be fully updated.
 The board should be clear n simple for others to understand.
 Looking at its numerable advantages, companies should move towards
establishing Lean manufacturing and kanban system as well.