Lean Manufacturing History

In post-World War II Japan, the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and their chief engineer, Taiichi Ohno, developed the Toyota Production System.

Toyota Production System (TPS) is the philosophy that still organizes manufacturing and logistics at Toyota, including the interaction with suppliers and customers.

These three innovative thinkers from Toyota visited the United States and they observed the great manufacturing empire established by Henry Ford. They were, however, unimpressed. They immediately noticed that while Ford had created a monumental manufacturing machine, he had failed to address what they felt was the key issue for them - waste. They noticed that with Ford's assembly line that tasks were not spaced and timed to enhance work flow. Therefore, the process was often waiting on steps to catch up to other steps, and partially completed work often piled up. In addition, the production system in place continually created a great deal of overproduction, which led to routine shut downs and layoffs and regular restarts and rehires.

Although Toyota (Toyoda) was basically unimpressed with Ford's manufacturing plant, he was very impressed with another US business –- Piggly Wiggly Supermarket. They saw the benefit of only reordering and restocking goods as they were purchased from the customer. They realized that if they were to compete on the world stage in the automotive industry, they would need to apply these same principles to their operation. Thus, JIT, or just-in-time inventory was developed. To do this, Toyota reduced the amount of inventory they would need to hold only to a level that its employees would need for a small period of time, and then subsequently reorder.

Although Toyota is credited with beginning Lean Production with their Toyota Production System, the roots of “lean”date back as far as the 16th century. Lean manufacturing term was coined by a Harvard professor. In 1570, King Henry III of France watched in amazement as the Venice Arsenal built galley ships in less than an hour using continuous flow process. So, as a conceptual idea, we have known for centuries that continuous flow produces results.

Other companies have taken the Toyota Production System even farther. Motorola implemented Lean Production Systems, and almost immediately noticed a decrease in wastes, an increase in productivity and quality and an increased awareness of safety. Their efforts led to the development of Lean Six Sigma. Six Sigma basically, defines quality in degrees of sigma with six being the highest and defined as no more than 3.4 defects per one million opportunities.

Some key terms that will allow you to navigate the Lean world are:
3 Distinct Views of Lean: (Definition below)

1. Structural Change: One of the key principles of Lean is the 5S workplace.
2. Process Implementation: Lean seeks out wastes inhabiting the process we use to complete our tasks, manufacture our products, or provide our services.

3. Philosophical Mindset: The goal of any lean enterprise is to foster creativity and total employee involvement, on principles of employee empowerment.

5 Why's: A simple but effective method of analyzing and solving problems by asking ‘why?’ five times to find the root cause of a problem.

5S: (Definition below) Note: Efforts in 5S almost always improve workplace safety, operator morale, quality, and productivity. It can also be very impressive to visiting customers and prospective clients. Click HERE to view Lean 5S action poster.

1. Sort

2. Straighten

3. Sweep

4. Standardize

5. Sustain

6 Sigma: A scientific/data-driven approach for achieving 6 standard deviations between the mean and nearest specifications limit. Six Sigma methods can be applied to all aspects of manufacturing, transactional processes, and virtually any form of work or processing. Six Sigma basically, defines quality in degrees of sigma with six being the highest and defined as no more than 3.4 defects per one million opportunities.

7 Wastes: The 7 wastes are activities identified and categorized as non-value adding events or processes that limit profitability in a company. The 7 Wastes is also known as the 7 Deadly Wastes of Manufacturing or the 7 Sins of Manufacturing. The 7 Wastes are as follows:

1. Defects: Anything the customer doesn’t want.

2. Overproduction: To produce an item before it is actually required.

3. Transportation: Transporting product between process is a cost incursion that adds no value to the product.

4. Waiting: Whenever goods or services are not moving or being processed, the waste of waiting occurs.

5. Inventory: Excessive, unneeded, inventory increases lead times, consumes productive floor or warehouse space, delays the identification of problem areas, and inhibits communication.

6. Motion: This waste is related to ergonomics and is seen in all in ...