4th Edition

Toyota Production System An Integrated Approach to Just-In-Time, 4th Edition

By Yasuhiro Monden Copyright 2012
    566 Pages 212 B/W Illustrations
    by Productivity Press

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    A bestseller for almost three decades, Toyota Production System: An Integrated Approach to Just-In-Time supplies in-depth coverage of Toyota's production practices, including theoretical underpinnings and methods for implementation. Exploring the latest developments in the Toyota Production System (TPS) framework at Toyota, this new edition updates the classic with new material on e-kanban, mini-profit centers, computer-based information systems, and innovative solutions to common obstacles in TPS implementation.

    Yasuhiro Monden, instrumental in introducing the JIT production system to the United States, explains the logic and methodologies of the TPS. Extending the humanized aspect of production introduced in the third edition, Toyota Production System: An Integrated Approach to Just-In-Time, Fourth Edition explains how to cultivate the culture and way of thinking needed to establish the TPS holistically across your organization. Exploring the link between kaizen methods and calculation methods in TPS, this edition includes new chapters on:

    • The goal of TPS
    • One-piece production in practice
    • Kaizen costing
    • Material handling in an assembly plant
    • Smoothing kanban collection
    • Determination of the number of kanban
    • New developments in e-kanban
    • Cultivating the spontaneous kaizen mind

    Following in the footsteps of its bestselling predecessors, the fourth edition provides easy-to-follow guidance for implementing the TPS in your organization. It explains how Toyota has adapted and reacted to recent fluctuations in demand, quality problems, and recalls. It also includes an appendix that considers the recent tsunami in Japan and investigates how to reinforce the JIT system to ensure supply chain flow during sudden stoppages at individual locations within the chain.

    Total Framework of the Toyota Production System
    Primary Purpose
    Kanban System
    Production Smoothing
    Shortening Setup Time
    Process Layout for Shortened Lead Times
    Standardization of Operations
    Improvement Activities
    The Goal of TPS

    Implementation Steps for the Toyota Production System
    Introductory Steps to the Toyota Production System
    Introduction of JIT at Toyo Aluminum— A Case Study


    Adaptable Kanban System Maintains Just-In-Time Production
    Pull System for JIT Production
    What Is a Kanban?
    Kanban Rules
    Other Types of Kanban

    Supplier Kanban and the Sequence Schedule Used by Suppliers
    Monthly Information and Daily Information
    Later Replenishment System by Kanban
    Sequenced Withdrawal System by the Sequence Schedule
    Problems and Countermeasures in Applying the Kanban System to Subcontractors
    Guidance by the Fair Trade Commission Based on the Subcontractors Law and the Anti-monopoly Law
    Supplier Kanban Circulation in the Paternal Manufacturer
    Practical Examples of Delivery System and Delivery Cycle

    Smoothed Production Helps Toyota Adapt to Demand Changes and Reduce Inventory
    Smoothing of the Total Production Quantity
    Demand Fluctuation and Production Capacity Plan
    Smoothing Each Model’s Production Quantity
    Comparison of the Kanban System with MRP
    Summary of the Concept of Production Smoothing

    The Information System for Supply Chain Management between Toyota, Its Dealers, and Parts Manufacturers
    The Order Entry Information System
    Monthly Production System
    The Information System between Toyota and Parts Manufacturers
    New Toyota Network System (TNS)
    Production Planning System at Nissan

    How Toyota Shortened Production Lead Time
    Four Advantages of Shortening Lead Time
    Components of Production Lead Time in a Narrow Sense
    Shortening Processing Time through Single-Unit Production and Conveyance
    Shortening Waiting Time and Conveyance Time
    A Broad Approach to Reducing Production Lead Time

    Machine Layout, Multi-Functional Workers, and Job Rotation Help Realize Flexible Workshops
    Shojinka: Meeting Demand through Flexibility
    Layout Design: The U-Turn Layout
    Attaining Shojinka through Multi-Functional Workers

    One-Piece Production in Practice
    Requirements for One-Piece Production
    Resistance to Working Standing Up
    Resistance to Multi-Skilling
    Barriers to Autonomation
    Attaching Castors
    Smoothed Production
    An Example of Improvement for One-Piece Flow: A Factory Producing Cabinets for Use as Flat-Screen Television Stands

    Standard Operations Can Attain Balanced
    Production with Minimum Labor
    Goals and Elements of Standard Operations
    Determining the Components of Standard Operations
    Proper Training and Follow-Up: The Key to Implementing a Successful System

    Reduction of Setup Time—Concepts and Techniques
    Effects of Shortening the Setup Time
    Setup Concepts
    Concept Application

    5S—Foundation for Improvements
    5S Is to Remove Organizational Slack
    Visual Control
    Practical Rules for Seiton
    Seiso, Seiketsu, Shitsuke
    Promotion of 5S System

    Autonomous Defect Control Ensures Product Quality
    Development of Quality Management Activities
    Statistical Quality Control
    Autonomation and the Toyota Production System
    Company-Wide Quality Control

    Cross-Functional Management to Promote Company-Wide Quality Assurance and Cost Management
    Quality Assurance
    Cost Management
    Organization of the Cross-Functional Management System

    Kaizen Costing
    Concept of Kaizen Costing
    Two Types of Kaizen Costing
    Preparing the Budget
    Determination of the Target Amount of Cost Reduction
    Kaizen Costing through Management by Objectives
    Measurement and Analysis of Kaizen Costing Variances

    Material Handling in an Assembly Plant
    The Parts Supply System in an Assembly Plant
    A System for Supplying Parts in Sets (the SPS, or Set Parts System)
    "Empty-Handed" Transportation

    Further Practical Study of the Kanban System
    Maximum Number of Production Kanban to be Stored
    Triangular Kanban and Material Requisition Kanban on a Press Line
    Control of Tools and Jigs through the Kanban System
    JIT Delivery System Can Ease Traffic Congestion and the Labor Shortage

    Smoothing Kanban Collection
    Obstacles to Collecting Smoothed Numbers of Kanban
    Relationship between Smoothed Collection of Kanban and Parts Delivery
    Smoothing Schedule for the Timing of Kanban Collection
    Inventions of Kanban Posts at the Production Site
    Post-Office Mechanism for Outgoing Supplier Kanaban

    Applying the Toyota Production System Overseas
    Conditions for Internationalizing the Japanese
    Production System
    Advantages of the Japanese Maker-Supplier Relationship
    Reorganization of External Parts Makers in the United States
    Solution for Geographical Problems Involving External Transactions
    External Transactions of NUMMI
    Industrial Relations Innovations


    Sequencing Method for the Mixed-Model Assembly Line to Realize Smoothed Production
    Goals of Controlling the Assembly Line
    Goal-Chasing Method: A Numerical Example
    The Toyota Approach: A Simplified Algorithm
    Simultaneous Achievement of Two Simplifying Goals
    New Sequence Scheduling Method for Smoothing
    Basic Logic of Sequence Scheduling
    Sequence Scheduling Using Artificial Intelligence
    Diminishing Differences between Product Lead Times
    Computation of the Number of Kanban
    Computation of the Number of Kanban
    The Constant-Cycle Withdrawal System for Computing the Number of Inter-Process Withdrawal Kanban
    Computation of the Number of Supplier Kanban
    Constant-Quantity Withdrawal System for Computing the Number of Inter-Process Withdrawal Kanban
    Computation of the Number of Production-Ordering Kanban
    Computation of the Re-order Point
    Determination of Lot-Size
    Changes in the Number of Kanban
    Maintaining the Necessary Number of Kanban


    Yasuhiro Monden is professor emeritus at the University of Tsukuba, Japan. He also currently serves as visiting professor in the graduate program of the Nagoya University of Commerce and Business. Monden held the position of professor at Tsukuba University from 1983 to 2004. Before coming to Tsukuba, he was an associate professor in the School of Economics at Osaka Prefecture University (1971–83) and a research associate and assistant professor in the School of Law and Economics at Aichi University (1966–71).

    He received his Ph.D. in Management Science and Engineering from the University of Tsukuba, where he also served as dean of the Graduate Program of Management Sciences and Public Policy Studies and as chairperson of the Institute of Policy and Planning Sciences. He received his MBA from Kobe University, Japan, and his Bachelor of Economics from Kwansei Gakuin University, Japan. Dr. Monden has gained valuable practical knowledge and experience from his research and related activities in the Japanese automobile industry.

    He was instrumental in introducing the JIT production system to the United States. Toyota Production System is recognized as a JIT classic and was awarded the 1984 Nikkei Prize by the Nikkei Economic Journal. However, his research fields are wide, covering not only production and operations management but also managerial and financial accounting, corporate finance, and business economics. His dissertation title was "Basic Research on Transfer Pricing and Profit Allocation in Decentralized Organizations," and his recent research includes Management of Inter-Firm Networks Based on Incentive Prices."

    Dr. Monden’s international activities have included visiting professorships at the State University of New York at Buffalo (1980–81), California State University in Los Angeles (1991–92), and Stockholm School of Economics in Sweden (1996). He was also regional director of the Production and Operations Management Society (POMS), and has acted as international director of the Management Accounting Section of the American Accounting Association (AAA). In the business world he served as a JICA (Japan International Cooperation Agency) expert in Singapore for guiding TPS in 1987. Also he acted as a JICA expert in Thailand for guiding Strategic Cost Management, in 1998. Dr. Monden also served as Second Examination Committee Member of the Japan Certified Public Accountant (2000–2003).

    He founded the Japan Society of Organization and Accounting and currently serves as its editor in chief for the English-language book series entitled Japanese Management and International Studies, published by World Scientific Publishing Company in Singapore.