Management of Technology and Innovation in Japan

186 R. Haak
The Toyota production system can be seen as a technology-based, comprehensive
production management system with the primary goals of increasing productivity
and reducing costs (Monden 1983). This is achieved by reducing cycle time,
increasing flexibility, reducing stock levels and shortening machine changeover
times. According to Ohno the basis of the Toyota production system is “the absolute
elimination of waste. The two pillars needed to support the system are:
� just-in-time
� autonomation or autonomation with human touch.
Just-in-time means that, in a flow process, the right parts needed in assembly
reach the assembly line at the time they are needed. A company establishing this
flow throughout can approach zero inventory. The other pillar of the Toyota production
system is called autonomation – not to be confused with simple automation.
It is also know as automation with a human touch. At Toyota, a machine
automated with a human touch is one that is attached to an automatic stopping device.
In all Toyota plans, most machine, new or old, are equipped with such devices
as well as various safety devices, fixed-position stopping, the full-work system,
and baka-yoke foolproofing systems to prevent defective products. In this
way, human intelligence, or human touch, is given to the machines.” (Ohno 1988,
pp. 4-6)
The difference between the concepts of Lean Production and the Toyota production
system is that Lean Production (Jürgens 1994) was coined by the MIT researchers
Womack, Jones and Ross and is used for any company in any branch of
industry, whereas the term Toyota production system refers to the production
management system at Toyota, but includes basically the same elements. In his
latest book “The Toyota Way” (2004) Liker give us an impression of what exactly
a lean enterprise is. “You could say it’s the end result of applying the Toyota production
system to all areas of your business. In their excellent book, Lean Thinking,
James Womack and Daniel Jones define lean manufacturing as a five-step
process: defining customer value, defining the value stream, making it “flow”,
“pulling” from the customer back, and striving for excellence. To be a lean manufacturer
requires a way of thinking that focuses on making the product flow
through value-adding processes without interruption (one-piece flow), a “pull”
system that cascades back from customer demand by replenishing only what the
next operation takes away a short intervals, and a culture in which everyone is
striving continuously to improve.” (Liker 2004, p. 7)
This contribution cannot discuss all the aspects of Toyota production system
mentioned here in high detail. It is more important to highlight key developments,
identify changes and challenges in the Toyota production system and to illustrate
the particular characteristics of this worldwide famous production management
system.
The Toyota production system is unique, or in other words it is Toyota’s unique
approach to manufacturing, and the result is unique in the world of manufacturing.
Toyotas specific production system is the basis for much of the “Lean Production”
movement that has dominated manufacturing trend for the last 15 years. It is clear,
that Toyota’s performance is a direct result of operational excellence. This excel-