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The Toyota Production System TPS was developed between 1945 and 1970 and it is still evolving today The 1973 oil crisis hit Japan at least as hard as it hit America and Europe By 1974 Japans economy had collapsed to a state of nought growth At Toyota Motor Company although profits suffered greater earnings were sustained in 1975 1976 and 1977 than at other Japanese companies The widening gaps between Toyota and other Japanese companies opened the eyes of others in Japan to this phenomenon called the Toyota Production System and it began spreading rapidly in Japan Toyota branched off of the Toyoda automatic loom company founded by Sakichi In the 1930s when the Japanese military started fighting in Manchuria they used mainly foreign-made trucks Unfortunately at that time worldwide depression made money in short supply for the Japanese government and mass production of autos within Japan would both reduce costs and provide needed jobs giving them control and independence In 1936 Japan established licensing for automakers in the country demanding that a majority of stockholders and half the ownership as well as the officers had to be Japanese in 1939 imports were practically halted In this atmosphere the Toyoda Automatic Loom Works began to experiment with a prototype ready in 1935 and the sale of patent rights to a weaving machine providing much of the necessary funding for experimentation and tooling Toyodas car operations were placed in the hands of Kiichiro Toyoda Sakichi Toyodas son Many credit Toyotas success to aspects of the Toyota Production System established by Taichi Ohno and Shigeo Shingo from the late 1950s through 1970 when it gained the name It includes aspects of autonomation just-in-time production and continuous improvement reducing both inventories and defects The system is used worldwide but is only one of the
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