In the automotive industry, it is very important to have a highly efficient process to achieve target quantities, exactly when they are needed. This concept is known as lean manufacturing and plays a key role in a sustainable competitive position. Lean manufacturing is most often related to the elimination of waste typically held by businesses in the form of excess inventory in order to mitigate the effect of inconstancy in supply, processing time or demand . Its association with superior performance and its ability to provide competitive advantage is well established. This report focuses on Toyota Motor Corporation, a Japanese automobile manufacturer that developed the concept of lean manufacturing to increase its production efficiency by reducing inventory level. The basis of the Toyota Production System (TPS) is the pure and simple elimination of waste. TPS includes standardization of work, uninterrupted workflows, direct links between suppliers and customers, and continuous improvement based on the scientific method (Spear and Bowen, 1999). The four main concepts of TPS are just-in-time (JIT), automation, labor flexibility, and capitalizing on worker suggestions. Additionally, Toyota uses the pull stock control system in which orders come from customers and the line reacts to demand. Ohno (1988) formulated Kanban as a “means of extracting materials from an upstream station and managing the flow of products.” This has given Toyota its competitive advantage over the years. TOYOTA Jidoka PRODUCTION SYSTEM CONCEPT According to the official TPS website, quality is deeply ingrained during the manufacturing process. If an equipment defect or defective part is spotted, the damaged machine shuts down directly and operators stop production and correct the identified problem. It is essential...... middle of paper ...... innovation, a continuous effort to improve its processes and its highly efficient use of assets. The development and implementation of Toyota's lean production system set a benchmark in the automotive industry and inspired many other companies in the automotive industry and other sectors to adopt it. However, since the recall of more than 7.5 million Toyota cars in North America, Japan, China and Europe in late 2009 and early 2010 has earned Toyota severe critical due to gas pedal malfunctions and floor mat problems. For this reason, Toyota had to stop production on some lines for a period of time to check and coordinate activities. This dealt a major economic blow to Toyota, which was already struggling to cope with the recession and subsequently suffered from falling sales..