The Toyota Production System (TPS) was developed by the Japanese in the 1950’s a

Question

The Toyota Production System (TPS) was developed by the Japanese in the 1950’s and became the foundation for Just-in-Time (JIT). By 1970, JIT was being used by most factories in Japan. In the 1980’s JIT was introduced into the USA. Currently, JIT and lean production concepts are widely used and accepted practices.

These three strategies - TPS, JIT and lean operations - have the following distinctions (Heizer, J. and Render, B., p. 642):

1) JIT emphasizes forced problem solving.

2) TPS emphasizes employee learning and empowerment.

3) Lean operations emphasize understanding the customer.

Using your textbook as a guide and using the Online Library, select one of these three strategies above to research. Summarize your research findings to include the following information:

- Illustrate your overall comprehension of the strategy you chose to research.

- Identify and describe ONE component of this strategy and elaborate upon this component.

- What effect does this strategy have on quality?

- Provide one example of organizations that use this strategy.

- Include your own opinions and conclusions about this strategy and how it might be applicable to your place of employment/industry/career path.

- Cite your sources, using APA format.

Explanation / Answer

JIT "Just in Time" inventory method was inventod by Ford Motor Company is United States. This strategy works on demand pull basis rather than production plan basis as per the traditional method. It requires intricate planning in terms of procurement policies and the manufacturing process if its implementation is to be a success.

This inventory strategy is employed by the companies to increase efficiency and decrease waste by ordering and receiving goods as and when they are required in the production process, thereby reducing inventory costs. This method requires acurate demand and production forecast.

Advantages:-

1. As mentioned above, keeps the cost of holding stock to the minimum.

2. Eliminates waste, reduce product expiry and stock loss.

3. Less working capital requirement as only essential products are obtained.

4. Encourages right first time concept there by reducing cosr of rework.

5. Over production is eliminated.

Disadvantages

1. Provides zero tolerance for mistakes.

2. Unexpected demand cannot be met resulting is loss of potential oppurtunity.

3. There is a high reliance on suppliers, whose performance is generally outside the purview of the manufacturer.

4. High transaction cost due to increased number of transactions.

Above points answer most of the questions.

This is being practised by Ford Motors.

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