Toyota Management System

Managing Variety Using Standardized Tasks

Most firms have realized the importance of standardizing tasks; however, the degree of standardization often stops at the tasks that directly relate to producing a product or, to a lesser extent, service. For example, how to machine a part is […]

Managing Visibility by Leveling the Workload

Heijunka—the leveling of the workload—serves many purposes. First, it is a prerequisite to having continuous flow and pull production. Second, at the supply chain level, it reduces artificial demand fluctuations, or the bullwhip effect. Third, it provides visibility into systematic […]

The Essential Ingredients of the Toyota Way

The ingredients of the Toyota Way are unique and effective. To sequence their description, this chapter’s layout follows Liker’s approach. Examples specific to how Toyota applies these principles to managing its supply chain are drawn from previous chapters in this […]

Toyota Crisis Management

Why would Toyota need to be concerned about crisis management when it has implemented processes throughout the supply chain that are synchronized and integrated to function like a fine Swiss clock? The reality is that Toyota is not immune to […]

Toyota Dealer and Demand Fulfillment

Dealers use a number of different processes to fulfill retail customer demand. This chapter will explore the major ones; it will be subdivided into three areas: vehicle allocation, demand fulfillment options, and dealer operations. Vehicle Allocation At Toyota, vehicle allocation […]

Toyota Logistics Operation

Logistics is an extremely important component of the supply chain. It has two roles: (1) inbound logistics, which is responsible for transporting parts and materials from the tier 1 suppliers to the OEM plants; (2) outbound logistics, which is responsible […]

Toyota Managing Suppliers

Imagine you are a supplier to Toyota. What is your role in the Toyota supply chain? What is your expected productivity improvement over time? How would your experience as a part of Toyota’s supply chain differ from your experience supplying […]

Toyota Parts Ordering

Toyota adopts different planning methods depending on which types of parts are involved. Some of the planning processes are unique to Toyota and so are worth contrasting with general practice. There are many parts ordering processes for the different categories […]

Toyota Production Scheduling and Operations

Production scheduling requires close coordination between sales and plant operations. In Toyota Learning, we will explain how the production schedule is used to provide consistent and continuous flow of materials and vehicles throughout the supply chain. In Sales and Operations […]

Toyota Sales and Operations Planning

Sales and operations planning (S&OP) is a critical component of the supply chain planning process. It is linked upstream to the mix planning process and downstream to the production scheduling process. The goal of S&OP is to generate a production […]

Toyota Examples of Mix Planning

Mix planning is an important process for companies that manufacture and distribute products to retailers in multiple market areas. For vehicle manufacturers, this decision is extremely important because of the complexity of a vehicle. This complexity creates millions of possible […]

Comprehensive Overview of Supply Chain

The Toyota Production System (TPS) is the benchmark used throughout the world as the foundation for “lean” thinking. At Toyota, the TPS practices and principles extend well beyond the factory walls to include the extended supply chain and require some […]

Toyota Learning Principles and the v4L Framework

Toyota is well known for its approach to problem solving and continuous improvement. Articles by practitioners, researchers, and participants have made the tools and techniques of continuous improvement familiar to every business executive. For example, phrases such as andon, heijunka, […]