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Thursday, May 29, 2025

Taiichi Ohno on Industrial Engineering - Toyota Style Industrial Engineering






TPS is Industrial Engineering System of Toyota Motors.

 Taiichi Ohno on Industrial Engineering 





Taiichi Ohno in Toyota Production System: Beyond Large Scale Production,

Advocating Profit-Making Industrial Engineering  



After World War II, the United States influenced Japan greatly in many ways.

Aggressive Japanese businesses imported and adopted America's high-level production and manufacturing technology. In academia and business, a great number of American business management techniques were also studied and discussed. For example, Japanese businesses carefully studied industrial engineering (IE), a company-wide manufacturing technology directly tied to management that was developed and applied in the United States.

Defining industrial engineering seems to be fairly difficult. When first introduced, it was pointed out that the Toyota production system was method engineering (ME), not IE. Don't be confused over the meanings.

To me, IE is not a partial production technology but rather a total manufacturing technology reaching the whole business organization. In other words, IE is a system and the Toyota production system may be regarded as Toyota style IE.

What is the difference between traditional IE and the Toyota system? In brief, Toyota style IE is mekeru or profitmaking IE, known as MIE. 

Unless IE results in cost reductions and profit increases, I think it is meaningless.

There are various definitions of IE. A former head of the American Steel Workers' Union defined its function as that of entering a plant to improve methods and procedures and to reduce costs. And this is exactly so.

"IE is the use of techniques and systems to improve the method of manufacturing. In scope it: ranges from work simplification to large-scale capital investment plans."'

"IE has two meanings. One aims at improving work methods in the plant or in a particular work activity. The other one means the specialized study of time and action. However, this is the work of a technician. Essentially, an industrial engineer studies systematic approaches to improvements. "

I would like to add a definition from the Society for Advancement of Management (SAM), an organization that succeeded the Taylor Society:

Industrial engineering applies engineering knowledge and techniques for the study, improvement, planning, and iniplementation of the following:

1. method and system,
2. qualitative and quantitative planning and various standards including the various procedures in the organization of work,
3. measuring actual results under the standards and taking suitable actions.

This is all done to exercise better management with special consideration for employee welfare, and it does not restrict business to lowering the cost of improved products and services.'

I have listed various IE definitions, each saying good things, because they are useful references. However, in private business, implementing IE effectively is not easy.

The reason I call Toyota's industrial engineering profitmaking IE is my wish that the Toyota production system born and raised at Toyota Motor Company be comparable or superior to the American IE's business management and manufacturing system.

We are very happy that the Toyota production system has become, as I intended, a company-wide manufacturing technology directly tied to management. And, fortunately, it is extending to the outside cooperating firms as well.



Quotes from Above.


Japanese businesses carefully studied industrial engineering (IE), a company-wide manufacturing technology directly tied to management that was developed and applied in the United States.


When first introduced, it was pointed out that the Toyota production system was method engineering (ME), not IE.


TPS is Industrial Engineering System of Toyota Motors.

IE is a system and the Toyota production system may be regarded as Toyota style IE.


Toyota style IE is mekeru or profitmaking IE, known as MIE. 
Unless IE results in cost reductions and profit increases, I think it is meaningless.


Essentially, an industrial engineer studies systematic approaches to improvements.


It is my wish that the Toyota production system born and raised at Toyota Motor Company be comparable or superior to the American IE's business management and manufacturing system.


Industrial engineering (IE), a company-wide manufacturing technology directly tied to management that was developed and applied in the United States.

We are very happy that the Toyota production system has become, as I intended, a company-wide manufacturing technology directly tied to management.



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Taiichi Ohno repeats what Taylor said. Improve every element of an operation/process.


Improve machining processes,  install autonomous systems, improve tools,  rearrange machines,  improve  transportation methods. Examine available resources and  the materials at hand for manufacturing. optimize their use.

Prevent the recurrence of defective products, operational mistakes, and accidents, and by incorporate  workers' ideas."  


Toyota Industrial Engineering that is Ohno's Industrial Engineering is improving every element of the process and reducing every delay, defect and machine breakdown (Naryana Rao)


Toyota style Industrial Engineering - Ohno


"We have eliminated waste by examining available resources, rearranging machines, improving machining processes, installing autonomous systems, improving tools, analyzing transportation methods and optimizing the materials at hand for manufacturing. High production efficiency has also been maintained by preventing the recurrence of defective products, operational mistakes, and accidents, and by incorporating workers' ideas." Taiichi Ohno (P. 21)

Source: Taiichi Ohno, Toyota Production System: Beyond Large Scale Production, pp. 21-22.


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Japanese businesses carefully studied industrial engineering (IE), a company wide manufacturing technology improvement discipline that is directly tied to management.

The success of Toyota in cost reduction, productivity improvement, and international competitiveness and its celebrated Toyota Production System, fulfilled the dream of Yoichi Ueno (that Japan can guide US in improved practices of efficiency improvement). The success of #Toyota and the World Class #TPS was  built on the sustained efforts many Japanese persons who understood Taylor and Gilbreth's writings and improvised them in implementing them in Japanese companies.


Summarized from Taiichi Ohno's Book - Toyota Production System: Beyond Large Scale Production,

IE is not a partial technology improvement discipline but it is a total manufacturing technology improvement discipline reaching the whole organization. Toyota production system utilizes Toyota-style IE.


                    Jun. 17, 2020. Toyota Launches New Model Harrier in Japan                       

What is Toyota style Industrial Engineering?


Toyota style industrial engineering is mokeru or profit-making industrial engineerng (MIE). Unless IE results in cost reductions and profit increases, I (Taiichi Ohno) think it is meaningless.

A former head of the American Steel Workers' Union defined IE's function as that of entering a plant to improve methods and procedures and to reduce costs.

"IE is the use of techniques and systems to improve the method of manufacturing. In scope it ranges from work simplifications to large-scale capital investment plans"

IE aims at improving work methods in the plant or in a particular work activity. An industrial engineer studies systematic approaches to improvements.

Definition of IE according to Society for Advancement of Management (Successor to Taylor Society)


Industrial engineering applies engineering knowledge and techniques for the study, improvement, planning and implementation of the following:

1. Method and system
2. Qualitative and quantitative planning and various standards including the various procedures in the organization of work.
3. Measuring actual results under the standards and taking suitable actions.

This is all done to exercise better management with special consideration for employee welfare, and it does not restrict business to lowering the cost of improved products and services.

Ohno said he included various definitions as each is good description. But he indicated that implementing IE effectively is not easy.

Ohno made a wish that IE as used in Toyota will be superior to the IE used in American Business.

Toyota style Industrial Engineering - Ohno


"We have eliminated waste by examining available resources, rearranging machines, improving machining processes, installing autonomous systems, improving tools, analyzing transportation methods and optimizing the materials at hand for manufacturing. High production efficiency has also been maintained by preventing the recurrence of defective products, operational mistakes, and accidents, and by incorporating workers' ideas." Taiichi Ohno (P. 21)

Source: Taiichi Ohno, Toyota Production System: Beyond Large Scale Production, pp. 71-72.

Japanese Leaders in Efficiency - Productivity Movement - Industrial Engineering.
#IndustrialEngineering #Productivity #CostReduction  #Japanese


Yoichi Ueno - Japanese Leader in Efficiency - Productivity Movement

Rear Admiral Takuo Godo - Productivity Promoter in Japan


Shigeo Shingo - The Japanese Industrial Engineer - Contribution to Industrial Engineering

Taiichi Ohno on Industrial Engineering - Toyota Style Industrial Engineering


Takeshi Kawase - Industrial Engineering - Definition. IE  deals  with the efficiency of systems that include humans.






Updated on 28.5.2025,  10.7.2024, 26 June 2020, 12 November 2013









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