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 red
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