Toyota Production System: An Integrated Approach to Just-In-Time, 4th Edition, 4th Edition (Hardback) book cover

Toyota Production System

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

By Yasuhiro Monden

Productivity Press

566 pages | 212 B/W Illus.

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pub: 2011-10-05
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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.

Table of Contents

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

About the Author

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.

Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Quality Control
TECHNOLOGY & ENGINEERING / Industrial Design / General