Toyota production system is a powerful method for making production since the system is an effective tool to generate the ultimate goal – profit .
The main purpose :
1. Earnings Through Cost Reduction
Cost reduction and productivity improvements achieved by removing waste.
Types of waste in the fabrication operations :
1. Resource production too much
2. Excessive production
3. preparations too much
4. The capital investment unnecessary
Costs in the Toyota production system not only cost fabrication , but also the cost of sales , administrative costs , and capital costs . Therefore, the expenditure of funds to make a profit in the past , present and future , which will be deducted from sales .
2. Removal Product Overload
Four types of waste will also increase the cost admiistrasi , direct material costs , direct labor costs and indirect and overhead costs , for example depreciation etc .
Workforce too much will cause the waste berikkutnya , the first action is very important that reduce or eliminate waste . Moreover , additional costs due to waste a second , third , and fourth can be reduced .
The main subject of the Toyota system is the excessive production control and ensure the product manufacturing process in accordance with the pace of sales in the market .