This paper describes the systematic development and evolution of an experiential-based learning environment developed at RIT that facilitates active and collaborative learning of principles related to contemporary production systems, problem solving, continuous improvement, and systemic thinking. Centered around the unique Toyota Production Systems (TPS) Lab, and based on active and collaborative learning, this environment targets a broad range of audiences, including K-12, undergraduate, and graduate students. Cognitive skills for different audiences are taught and reinforced via an innovative instructional delivery framework. In this paper, the laboratory facilities and instructional approach are described. In addition, the assessment, evaluation and continuous improvement methods being applied in the TPS Lab are presented.