Toyota's production efficiency improvement management: best practice for productivity evaluation and operation improvement

PurposeThe purpose of this study is to introduce an enterprise's productivity management named “Production efficiency improvement - PEFF”. This study shows the way of developing the management system to keep their shop floor “flexible to change” and “continuously controlling and improving” from the different levels and in various factories.Design/methodology/approachThis study refers to Toyota's PEFF management system in the context of productivity enhancement through detailed management processes including yearly management, monthly management, daily management and its application in a case study from another sector as a model case of PEFF expansion. The methodology of this study is to introduce a method for production efficiency analysis, measure and select standard time through PEFF calculation.FindingsToyota's PEFF management can be extremely effective at developing management's ability to conduct day-to-day shop-floor management, know-how sharing and how Toyota applies PEFF to develop the world-standard on manpower efficiency for their factories. Besides, this study shows the applicable of PEFF improvement has successfully conducted in other manufacturers in a flexible way to achieve the improvement targets.Research limitations/implicationsThe results of this study will aid the managers in production lines to find the method of calculating and evaluating production efficiency through Toyota's management techniques such as PEFF, YIP, WVACT and standard time. However, the approach for this paper was from a synchronized system as Toyota is limited to generalized to small and medium-sized enterprises.Originality/valueThis paper is introducing the original Toyota's management technique to sustainable enhance their manpower performance and efficiency and answer the question of why TPS still exists in the age of digital management. PEFF management serves as an example of a value management process to help manufacturers to set guidelines to improve their productivity.