Toyota currently sells about 70 different models of cars under its namesake brand. Because they are the market car leader, they are in need to produce large number of cars that will be sold worldwide. The Toyota Production System (TIPS) is an integrated socio-technical system, developed by Toyota that comprises its management philosophy and practices. The TIPS organizes manufacturing and logistics for the automobile manufacturer, Including interaction with suppliers and customers. The system Is a major precursor of the more generic “lean manufacturing.
Tactics Non, Chigoes Shining and Xiii Toyota developed the system between 1948 and 1975. Originally called “just-in-time production,” it builds on the approach created by the founder of Toyota, Chichi Toyota, his son Chicory Toyota, and the engineer Tactics Non. This system, more than any other aspect of the company, Is responsible for having made Toyota the company it is today. Toyota has long been recognized as a leader in the automotive manufacturing, and production Industry. The principles underlying the TIPS are embodied In The Toyota Way. According to external observers, the Toyota Way has four components: 1 .
Long- term thinking as a basis for management decisions 2. A process for problem-solving 3. Adding value to the organization by developing its people 4. Recognizing that continuously solving root problems drives organizational learning The underlying principles, called the Toyota way, It have been outlined by Toyota as follows: 1. Continuous Improvement a) Challenge (We form a long-term vision, meeting challenges with courage and creativity to realize our dreams. ) b) Kamikaze (We improve our business operations mutinously, always driving for Innovation and evolution.