ADVANTAGES OF TPS by Sachin

ADVANTAGES OF TPS
 The Toyota Production System empowers team members to optimise quality by

constantly improving processes and eliminating unnecessary waste in natural, human
and corporate resources.
 Toyota Production System influences every aspect of Toyota’s organisatio n and includes
a common set of values, knowledge and procedures.
 It
entrusts employees with well-defined responsibilities in each production step and
encourages every team member to strive for overall improvement.
As a result, Toyota Production System delivers the following key benefits:
 Quality inherent in Toyota’s products

 Costs are kept to a minimum thanks to a good return on investment
 Delivery is on time, and to the expected standard, al owing Toyota’s customers to plan
and maintain their operations successfully
 Environmental concerns are shared by Toyota and its customers, from manufacturing
through to recycling at end-of-life
 Safety is Toyota’s constant concern – both for its employees and for those of its
customers.
DISADVANTAGES
•Implementing thorough JIT procedures can involve a major overhaul of business

systems -it may be difficult and expensive to introduce.
•JIT manufacturing also opens businesses to a number of risks, notably those associated
with the supply chain. With no stocks to fall back on, a minor disruption in supplies to
the business from just one supplier could force production to cease at very short notice.
•A real business example: Toyota
•Just-in-time manufacturing system is vulnerable to unexpected disruptions in supply

chain. A production line can quickly come to a halt if essential parts are unavailable.
• Toyota, the developer of JIT, found this out the hard way. One Saturday, a fire
at Aisin Seiki Company’s plant stopped the delivery of all break parts to
Toyota. By Tuesday, Toyota had to close down all of its Japanese assembly
line. By the time the supply of break parts had been restored, Toyota had lost
an estimated $15 billion in sales.
Supply Problems
•Because only a small amount of inventory is kept on hand, lean manufacturing depends heavily
on suppliers that can provide products for the manufacturing process dependably and without
interruption. Problems like employee strikes, transportation delays and quality errors on the part of
suppliers can create manufacturing holdups that can be fatal. Vendors may be unable or unwilling
to supply parts or products on a tighter schedule or in smaller amounts.
•These needs can burden suppliers with unprofitable costs and create tensions that ultimately
affect the manufacturing process and can cause frequent changes of suppliers, or even difficulties
finding suppliers who can provide on the necessary schedule at all.
High Cost of Implementation
•Implementing lean manufacturing often means completely dismantling previous

physical plant setups and systems. Training employees can be lengthy and
acquiring managers experienced in lean manufacturing process can add
considerably to companies payroll expenses. The purchase of machinery that
increases efficiency, and the setup of smaller work cells can add to long-term
debt. Small and medium-sized businesses, in particular, may find the cost of
changeover to lean manufacturing processes prohibitive.
Lack of Acceptance by Employees
•Lean manufacturing processes require a complete overhaul of
manufacturing systems that may cause stress and rejection by employees
who prefer old ways of doing things. Moreover, lean manufacturing
requires constant employee input on quality control, which some
employees may feel disinclined or unqualified to do. Older employees
may prefer previous methods and can cause resistance among others in
the work group.
• This is where good managers become crucial to the changeover to lean
manufacturing. There may also be some difficulty finding managers with
sufficient leadership and persuasion skills to overcome this resistance.
Customer Dissatisfaction Problems

•Because lean manufacturing processes are so dependent on supplier efficiency,
any disruption in the supply chain--and therefore, on production--can be a
problem that adversely affects customers. Delivery delays can cause long-lasting
marketing problems that can be difficult to overcome.
CONCLUSION
•Toyota Production system has always been one of the major reasons
behind the success of the company. It has helped the organization in
many ways: automatic stoppage of the manufacturing process in case
of defects, Well- structured and effective relations with the suppliers,
good quality products, timely delivery to the customers etc. Though
many companies tried to copy the innovation made by the company but
they failed to copy the success of the system developed by the
company. The reason to this is the failure to understand and comprehend
the system. Thus, it has led to an added advantage to the company.

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ADVANTAGES OF TPS

 The Toyota Production System empowers team members to optimise quality by

As a result, Toyota Production System delivers the following key benefits:

 Quality inherent in Toyota’s products

•Implementing thorough JIT procedures can involve a major overhaul of business

•A real business example: Toyota

•Just-in-time manufacturing system is vulnerable to unexpected disruptions in supply

•Implementing lean manufacturing often means completely dismantling previous

Customer Dissatisfaction Problems

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