In demand management, the system allows to make unbiased predictions and act in regards to maximizing the value delivered to customers. In product design, the CPS is used for continuous innovation and adaptation to the needs of customers and the environment. In 2010, the company increased its revenues by 31% compared to 2009 and earned $42.59 billion while its profit per share was $4.15 in 2010 compared to $1.43 in 2009 (“Analyzing the Caterpillar Production System”). Even during the downturn of 2009-2010, CAT managed to reach its objectives through the implementation of CPS. Between 20, “Caterpillar capitalized on the economic boom,” with sales and revenues topping $51 billion, “exceeding the 2010 goal of $50 billion much ahead of schedule” (“Analyzing the Caterpillar Production System”). The integration of CPS allowed the company to reach unprecedented results. Importantly, CPS is implemented not only in factories but also at stages of product design and development, supply chain management, and purchasing. Based on the TPS framework, CPS also incorporates such concepts as Poka Yoke, pull production, continuous improvements, and numerous others. The Caterpillar Production System (CPS) has been established for monitoring the quality of manufactured products, meet the established cost goals, retain staff, and reduce waste (“Continuous Product Improvement”). It has also differentiated the business into producing travel accessories and footwear. Lean Manufacturing: CaterpillarĬaterpillar (CAT) is among the leading producers and constructors of mining machinery, natural gas and diesel engines, diesel-electric locomotives. The combination of the mentioned principles makes it possible for Toyota to reduce the errors in construction, reduce waste, and foster a positive environment in which workers are valued and supported. They include continuous improvement, respect for workers, long-term philosophy, producing the right results with the right processes, adding value, and organizational learning. The TPS incorporates a range a set of underlying principles, otherwise known as the Toyota Way. Unlike other companies that are wary of any advancements, the TPS is welcoming of change because it encourages the company to improve and adapt. This means that Toyota’s Lean system is more than just an approach to manufacturing – it is a social philosophy in which the mutual trust between workers and personal growth is stimulated. It is essential to note that the TPS is a socio-technical system that pays a great deal of attention to respect for employees and teamwork (“Toyota Production System”). The latter is associated with producing only what is needed within a continuous manufacturing flow. The former implies the elimination of defective products by stopping equipment as soon as an error occurs. TPS incorporates the two Lean concepts: Jidoka and Just-in-Time. Prior to establishing the system, Toyota has worked on continuous improvements and ensuring that customers get their vehicles in the most efficient and the quickest way possible (“Toyota Production System”). The Toyota Production System (TPS) has embraced the philosophy of the “complete elimination of all waste imbuing all aspects of production in pursuit of the most efficient methods” (“Toyota Production System”). Toyota’s manufacturing approach is the most prominent example of Lean since the company’s founder was the first to develop the system.
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