TPS (Toyota Production System) an example of microeconomics (economics of the firm)

11/20/2011

San Antonio, Texas

Toyota's much prized production method centered on the philosophy of Kaizen (continuous improvement) and Respect for People.

We engaged in a one hour simulation of production models, one Push and another Pull (TPS) and compared the experience as a whole- from efficiency of production to worker experience. The TPS system was not only more efficient at producing cars but also the workers found the experience more rewarding.

The production process in TPS is centered around the worker. Their input is ongoing and integral to the production process, constantly improving it. The push system, often used in traditional American auto manufacturing process, had the goal of working as fast as possible to produce as many cars as possible. It required more workers and a more fragmented and alienating work process. Whereas, the pull system inherent in TPS responds to dealer demand for particular cars or trucks from the manufacturer.

I commented on the Theory Z premise of the TPS system. It's a concept from organizational theory that describes how Japan's Communal Capitalism engenders commitment in workers by corporations committing in return to worker job security for life. It's a mutual compact and a prerequisite for TPS to work.

Another interesting feature of the TPS system is that workers learn many different functions along the assembly line, giving the crew more flexibility. Line supervisors are well experienced in all aspects of production. Rotation of functions on the line also have ergonomic benefits, so the worker doesn't stay in the same position for too long. The rotations are planned in a manner to give the workers the most appropriate rotation of jobs that makes ergonomic sense.

There was much discussion of Toyota's closing of the NUMMI plant in California. Originally a joint venture between General Motors and Toyota, it came to an end when General Motors, after filing bankruptcy, walked away from the operation. Toyota didn't find any financial incentive to hold on to the plant and transported over a 1000 workers to other facilities.

We visited the San Antonio plant's education facility. There was a showroom with the Tundra and Tacoma trucks, produced at the plant, were models highlighting the technology and Toyota's commitment to innovation and quality. Since it was a Sunday we were unable to go to the production facilities.

There was a brief discussion how the Push system of production resembles the current trend in educational reform (after all we are a bunch of teachers) with the premium on the numbers of graduates, and numbers of passing standardized exams.

Teachable moments arose as the group of Toyota International Teachers were lead in a lesson planning production exercise by Jason Shields, our discussion leader for this trip and Toyota International Teacher alumni. We were put into groups of 4 and asked to have one present speak of a lesson idea for a few minutes, then each other group member would comment for about 1 minute, with the presenter getting the last word. It was an experience potent with idea generation and refinement.

I, for example, discussed my idea of introducing Ecological Footprint to my economics students, ideas from one group member helped me see a social component by working in pairs and having students log their conversation with each other about their findings.

The TPS introduction was a potent experience for thinking about our own processes in and around the classroom.