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Toyota Supply Chain.

The Toyota Supply Chain is one of the best in the world. Toyota has long been benchmarked for their supply chain.  Below you will find a link to “The 14 Principles of the Toyota Way” and highly encourage people to check that out.


Toyota is known for its commitment to Lean principles, which aim to maximize value and minimize waste in business processes. The company has implemented Lean principles throughout its supply chain, including in its production processes, logistics, and distribution.

Some key features of the Toyota supply chain that demonstrate the company’s commitment to Lean principles include:

  1. Just-in-time (JIT) production: Toyota uses a JIT production system, which means that materials and components are delivered to the production line just in time to be used, rather than being stockpiled in advance. This helps to minimize inventory waste and reduce costs.
  2. Kanban: Toyota uses a system called kanban, which is a type of visual signaling system that helps to coordinate production and minimize waste. Kanban cards or bins are used to signal when materials or components are needed on the production line, and when work is complete.
  3. Continuous improvement: Toyota is committed to continuous improvement, which means that the company is always looking for ways to optimize its production processes and reduce waste. The company encourages employees to identify and eliminate waste through the use of tools such as root cause analysis and 5S (sort, set in order, shine, standardize, and sustain).
  4. Collaboration with suppliers: Toyota works closely with its suppliers to optimize production processes and reduce waste. The company uses a system called “kaizen,” which means “improvement” or “change for the better,” to encourage continuous improvement throughout the supply chain.

Overall, the Toyota supply chain is a complex and highly efficient system that is designed to optimize the flow of materials and information, minimize waste, and reduce costs. The company’s commitment to Lean principles has played a key role in its success and competitive advantage in the global automotive market.

Toyota and Quality Quotes:

  • “Make your workplace into showcase that can be understood by everyone at a glance. In terms of quality, it means to make the defects immediately apparent. In terms of quantity, it means that progress or delay, measured against the plan, and is made immediately apparent. When this is done, problems can be discovered immediately, and everyone can initiate improvement plans.”   ~Taiichi Ohno.
  • “For much of Toyota’s history, we have ensured the quality and reliability of our vehicles by placing a device called an andon cord on every production line – and empowering any team member to halt production if there’s an assembly problem. Only when the problem is resolved does the line begin to move again.”  ~Akio Toyoda.
  • “When consumers purchase a Toyota, they are not simply purchasing a car, truck or van. They are placing their trust in our company.”  ~Akio Toyoda.
  • “The key to the Toyota Way and what makes Toyota stand out is not any of the individual elements…But what is important is having all the elements together as a system. It must be practiced every day in a very consistent manner, not in spurts.”  ~Taiichi Ohno.
  • “We have to grasp not only the Know-How but also ‘Know Why’, if we want to master the Toyota Production System.”  ~Shigeo Shingo.
  • “Eighty-five percent of the reasons for failure are deficiencies in the systems and process rather than the employee. The role of management is to change the process rather than badgering individuals to do better.”  ~W. Edwards Deming.

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Toyota Supply Chain
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