The Toyota Way

About TPS and Lean

The Lean method, as we know it today, has its roots in Toyota's revolutionary approach to production and process optimization. This approach, known as the Toyota Production System (TPS), was developed to increase efficiency and eliminate waste. Today, Lean has become a global standard for companies aiming to optimize their processes. This page explores the journey from Toyota's innovative production system to the evolution of Lean.


Toyota: The Pioneer of Efficient Production

Toyota Motor Corporation, founded in Japan in 1937, is renowned for its innovative approach to car manufacturing. After World War II, Toyota faced challenges due to limited resources and the need to compete with large Western manufacturers. To overcome these challenges, the company developed a unique method to minimize waste and maximize productivity. This method later became known as the Toyota Production System (TPS).


What is TPS?

The Toyota Production System, often abbreviated as TPS, is the cornerstone of Toyota's success and a vital element in the development of Lean. TPS is based on two fundamental principles:

  • Jidoka (Autonomation): Integrating quality assurance into the production process. Machines automatically stop if a defect is detected, preventing faulty products from reaching the customer.
  • Just-in-Time (JIT): Producing the exact quantity of goods required, precisely when needed, to reduce inventory and waste.

TPS also includes tools such as Kanban, which helps manage workflow, and Kaizen, which focuses on continuous improvement.


The Transition from TPS to Lean

Lean gained popularity outside Japan when researchers from the Massachusetts Institute of Technology (MIT) studied Toyota's production methods in the 1980s. Their findings were presented in the 1990 book The Machine That Changed the World, where the term "Lean" was first used to describe Toyota's approach.

Lean is an evolution of TPS and focuses on five key principles:

  1. Define Value: Identify what the customer perceives as value.
  2. Map Value Streams: Visualize all steps in the process to identify and eliminate waste.
  3. Create Flow: Remove bottlenecks to ensure smooth workflows.
  4. Pull by Demand: Deliver products as needed rather than producing for inventory.
  5. Pursue Perfection: Continuously improve processes.


Toyota’s Influence on Lean

Toyota’s legacy is evident in the Lean method. The company’s emphasis on quality, efficiency, and employee engagement has made Lean a universal approach adaptable to various industries. Lean is not just a production method but also a philosophy fostering a culture of improvement and innovation.


Why TPS and Lean Remain Relevant Today

TPS and Lean continue to be relevant as they address modern challenges such as sustainability, digitalization, and global competition. Many companies apply Lean principles to reduce their carbon footprint, enhance customer experiences, and create more flexible work processes.


KaizenTour and TPS/Lean

On the KaizenTour, we observe how TPS is applied in its original form. Additionally, participants are trained by experienced Toyota leaders to implement concrete improvements themselves – The Toyota Way.