Lessons from Leading Firms




Vadim Kotelnikov Wei Di China Chinese jourbal cover

Toyota Production System (TPS)
7 Principles

Vadim Kotelnikov, founder of 1000ventures - personal logo VadiK

Inventor Business e-Coach

Author Innoball

Founder Innompic Games icon



Toyota Production System (TPS) is is a part ofThe Toyota Way management philosophy. It is a holistic approach to efficiency, generating sustainable profits, and satisfying the customer with the highest possible quality  at the lowest cost in the shortest lead-time.

  Just-in-Time (JIT) Seven Wastes Lean Manufacturing (or Lean Production) Toyota Production System (case study) Japanese-style Suggestion Systems Key Features of a Lean System The Toyota Way Toyota Production System (TPS) 7 Principles - Lean Manufacturing




7 Principles of Toyota Production System (TPS)




Reduced Setup Times

All setup practices are wasteful because they add no value and they tie up labor and equipment. By organizing procedures, using carts, and training workers to do their own setups, Toyota managed to slash setup times from months to hours and sometimes even minutes.




Small-Lot Production

Producing things in large batches results in huge setup costs, high capital cost of high-speed dedicated machinery, larger inventories, extended lead times, and larger defect costs. Because Toyota has found the way to make setups short and inexpensive, it became possible for them to economically produce a variety of things in small quantities.


5 Features of Lean

Lean Manufacturing vs. Traditional

3 Broad Types of Waste

 7 Wastes To Be Eliminated




Employee Involvement and Empowerment

Toyota organized their workers by forming teams and gave them the responsibility and training to do many specialized tasks. Teams are also given responsibility for housekeeping and minor equipment repair. Each team has a leader who also works as one of them on the line.




Quality at the Source

To eliminate product defects, they must be discovered and corrected as soon as possible. Since workers are at the best position to discover a defect and to immediately fix it, they are assigned this responsibility. If a defect cannot be readily fixed, any worker can halt the entire line by pulling a cord (called Jidoka).


Lean Manufacturing

Key Features

Best Practices

Toyota Problem Solving Techniques

5-Why Process




Equipment Maintenance

Toyota operators are assigned primary responsibility for basic maintenance since they are in the best position to defect signs of malfunctions. Maintenance specialists diagnose and fix only complex problems, improve the performance of equipment, and train workers in maintenance.


Japanese Approach to Total Quality Management

Characteristics of a Lean Enterprise

Kaizen Mindset

Kaizen Culture





Pull Production

To reduce inventory holding costs and lead times, Toyota developed the pull production method wherein the quantity of work performed at each stage of the process is dictated solely by demand for materials from the immediate next stage. The Kamban scheme coordinates the flow of small containers of materials between stages. This is where the term Just-in-Time (JIT) originated.


Just-In-Time (JIT)

JIT Implementation

Humorous Example of Lean Value Chain

Cleaner Production

Design for Environment (DfE)

TQM in Japan




Supplier Involvement

Toyota treats its suppliers as partners, as integral elements of Toyota Production System (TPS). Suppliers are trained in ways to reduce setup times, inventories, defects, machine breakdowns etc., and take responsibility to deliver their best possible parts.


State-of-the-Art Supply Chain

Involve Suppliers as Co-Innovators

Japanese-style Suggestion System