4 Rules of Toyota Production System TPS
Introduction
The last five decades have seen the evolution of the Toyota Production System from being used as a mere production concept in the manufacturing industry to where it is now being applied even in their industries (Collins & Muthusamy, 2017). By utilizing the TPS, Toyota has managed to maintain a strong competitive advantage in the motor industry, and it is an idea that organizations in different industries can borrow. Today many organizations are trying to replicate the success of Toyota by adopting its 4 TPS rules in their operations. The Toyota Production System has proven to be a very powerful intervention technique that is applicable even in industries that are not familiar with advanced production techniques such as the healthcare and service industries. This discussion captures the process involved in applying 4 Rules the Toyota Production System to different industries.
The 4 Rules of Toyota Production System TPS
The Toyota Production System is considered as a bridge for competitive advantage where organizations utilizing this concept are able to achieve efficiency by eliminating wastage, good customer responsiveness, quality output and innovation (Shingo & Bodek, 2019). These achievements are possible through the adoption of the 4 rules of the TPS.
The first rule of this model requires the specification of all work in such a manner that respects sequence, content, timing and its outcome (Shingo & Bodek, 2019). Toyota recognizes that having many variations in any given process can result in potential quality concerns. To address this challenge, the first rule requires that there is pre-specification of the work to be done because it helps to minimize variations and sets the foundation for future improvement (Shingo & Bodek, 2019). By specifying the expected successful outcome, the staffs of any orgnaisation are aware what is expected of them in order to achieve the set goals and objectives.
The second rule is concerned with addressing the relationship between co-workers or teamwork in a bid to achieve a given set objective. The rule argues that every connection during a production process should be binary, meaning that it should be based on a yes or no response (Shingo & Bodek, 2019). Studies show that direct connections tend to deliver better results with less customer frustrations (Dahlgaard-Park, 2016). As such, communication should always be very clear with no ambiguous communication between the partners involved.
According to the third rule, every service process should flow along a very simple and specified path (Shingo & Bodek, 2019). In this case, a specified should involve only a few simple steps and people with the least delays possible. The idea of continuous flow is important in helping achieve the desired results.
Finally, the fourth rule suggests that any process improvement should be based on applying a scientific method that is close the identified problem (Shingo & Bodek, 2019). This means that employees in any organization are encouraged to improve every day on their tasks, with their supervisors being required to offer them direction and Helpance in what they do.
Looking at these four Toyota Production System rules, it is clear that rule 1 and 3 are concerned with system designs and work while rule 4 advocates for continuous improvement. Today this rules are being applied in different industries successful, to help organizations achieve better results with the production and marketing process, especially in a very competitive business environment.
Applying the Toyota Production System to the Manufacturing Industry
Toyota Production System is what has given Toyota a competitive advantage in the marketplace, making it stand out for decades. By applying the 4 rules of these systems, the company has managed to remain competitive for years. One of the reasons why this is case is because, Toyota customers are able to anticipate what to expect from the company because ass the first rule suggests there is the specification of all work in such a manner that respects sequence, content, timing and its outcome (Dahlgaard-Park, 2016). Adopting such a well defined and clear approach to its production process has helped the company maintain good relationship with is customers and it is an approach being undertaken by other players in the manufacturing industry.
Today manufacturing companies are striving hard to improve on the quality of their produces and meet the market needs through constant and continuous self improvement exercise (Dahlgaard-Park, 2016). This is a quality trait that has helped Toyota to remain one of the best companies in the automobile industries. Adopting this approach described in the further rule of the TPS, manufacturing companies are able to cope in a changing market environment.
Applying the Toyota Production System to the Services Industry
The Toyota production system rule argues that having the right process in place is a recipe for the right results. The manufacturing industry takes a very disciplined approach that is process oriented to achieve the desired results which is a concept that can also be applied in the service industries. Today the service industry has recognized that while their main work has nothing to do with manufacturing, it can still apply the same principles. In this case, the service industries are concerned with executing their service in such a way that follows a well defined process capable of producing the desired results (Chiarini, 2013).
The TPS also advocates for teamwork as a tool to empower and involve workers into achieving a common target through continuous improvement process (Chiarini, 2013). This means that organizations in the service industry can leverage on the TPS to add value to their service directly by developing their employees and partners. Through the TPS, Toyota was able to recognize that a key element for success is its people and partners who in this case refer to suppliers, customers and other relevant stakeholders (Chiarini, 2013). Similarly today organizations in the service industries have recognized that an effective partnership with the relevant stakeholders fosters growth because problems and opportunities can now be easily identified. As such, Chiarini, 2013) argues that today organizations in the service industry have laid emphasis on empowering and supporting its employees and other stakeholders because they now realize it is the best way to identify opportunities and addresses any challenge that could be facing them. The effort to support employees being undertaken by organizations in the service industry includes training them with the aim of Helping them improving on skill sets and improving their performance (Chiarini, 2013). As such, applying the 4 rules of the TPS is an effective tool for enhancing performance in the service industry.
Applying the Toyota Production System to Healthcare Economics
Today the healthcare industry is under huge pressure to cut down on the cost of different medical services while at the same time increasing quality and also enhance organizational effectiveness. As the adoption of TPS concepts to the healthcare industry is crucial if these goals are to be achieved. One of the key areas that the TPS has contributed significantly in the healthcare industry is producing products with fewer defects. According to the TPS third rule, every service process should flow along a very simple and specified path (Shingo & Bodek, 2019). In this case, a specified should involve only a few simple steps and people with the least delays possible. The idea of continuous flow is important in helping achieve the desired results. In this case, defects relate to enhancing patient safety standards. Modern medical regulatory bodies have introduced programs that ensure hospitals can effectively deal with an increasing demand for highly specialized services which promotes higher quality hospitals (Newell, Steinmetz–Malato & Dyke, 2011). Adopting these measures will ensue that operations in the healthcare industry are more efficient with minimal defects.
Secondly, the healthcare industry has adopted the TPS first rule which requires the specification of all work in such a manner that respects sequence, content, timing and its outcome (Collins & Muthusamy, 2017). Today hospitals are requiring their service providers to deliver different products one request after another to minimize wastage, and these products has to be delivered immediately once demanded (Lindenau-Stockfisch, 2011). According to Collins and Muthusamy (2017), every patient requires a unique treatment complexity which requires a customize plan for treatment. As such, the healthcare industry has to find solutions that will ensure that treatment and care is given with high levels of efficiency and within a short timeline. This means that today healthcare providers can apply the 4TPS to distinguish themselves from other providers based on the efficiency and speed at which they are able deliver care.
Finally, the Toyota production system is very concerned with minimizing wastages during the production process. The TPS fourth rule suggests that any process improvement should be based on applying a scientific method that is close the identified problem (Shingo & Bodek, 2019). This means that TPS advocates for a process that ensures that products are produced without wasting materials or labor. Today the healthcare industry is faced with the challenge of increasing costs of medicine, labor and technology at a time when hospitals have to ensure that their operations have to be contained within a limited budget that is based on the revenue generated (Chalice & Chalice, 2010). As such adopting the Toyota production mode into the healthcare industry is helping hospitals adopt sophisticated labor and material management systems that can help them with controlling wastage and budgeting costs.
Conclusion
From the foregoing, today many organizations are trying to replicate the success of Toyota by adopting its 4 TPS rules in their operations. Manufacturing companies are striving hard to improve on the quality of their produces and meet the market needs through constant and continuous self improvement exercise. The TPS second rule is concerned with addressing the relationship between co-workers or teamwork in a bid to achieve a given set objective. As such, organizations in the service industry have laid emphasis on empowering and supporting its employees and other stakeholders because they now realize it is the best way to identify opportunities and addresses any challenge that could be facing them. Finally, at time when the healthcare industry is under huge pressure to cut down on the cost of different medical services while at the same time increasing quality and also enhance organizational effectiveness, adoption of TPS rules is seen as viable solution.
References
Chalice, R., & Chalice, R. (2010). Improving healthcare using Toyota lean production methods: 46 steps for improvement. Milwaukee, WI: ASQ Quality Press.
Chiarini, A. (2013). Lean Organization: From the Tools of the Toyota Production System to Lean Office. Milano: Springer.
Collins, K. F., & Muthusamy, S. K. (2017). Applying the Toyota Production System to a Healthcare Organization: A Case Study on a Rural Community Healthcare Provider. Quality Management Journal,14(4), 41-52. doi:10.1080/10686967.2007.11918045
Dahlgaard-Park, S. (2016). Toyota Production System. The SAGE Encyclopedia of Quality and the Service Economy. doi:10.4135/9781483346366.n224
Lindenau-Stockfisch, V. (2011). Lean Management in Hospitals Principles and Key Factors for Successful Implementation. Hamburg: Bachelor Master Publishing.
Newell, T. L., Steinmetz–Malato, L. L., & Dyke, D. L. (2011). Applying Toyota Production System Techniques for Medication Delivery: Improving Hospital Safety and Efficiency. Journal For Healthcare Quality,33(2), 15-22. doi:10.1111/j.1945-1474.2010.00104.x
Shingo, S., & Bodek, N. (2019). The Toyota Production System in Summary. A Study of the Toyota Production System From an Industrial Engineering Viewpoint,225-234. doi:10.4324/9781315136509-13
