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Lean manufacturing

Lean manufacturing is a production method aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. It is closely related to another concept called just-in-time manufacturing (JIT manufacturing in short). Just-in-time manufacturing tries to match production to demand by only supplying goods which have been ordered and focuses on efficiency, productivity (with a commitment to continuous improvement), and reduction of "wastes" for the producer and supplier of goods. Lean manufacturing adopts the just-in-time approach and additionally focuses on reducing cycle, flow, and throughput times by further eliminating activities which do not add any value for the customer.[1] Lean manufacturing also involves people who work outside of the manufacturing process, such as in marketing and customer service.

Lean manufacturing is particularly related to the operational model implemented in the post-war 1950s and 1960s by the Japanese automobile company Toyota called Toyota Production System (TPS), known in the US as "The Toyota Way".[2][3] Toyota's system was erected on the two pillars of just-in-time inventory management and automated quality control. The seven "wastes" (muda in Japanese), first formulated by Toyota engineer Shigeo Shingo, are the waste of superfluous inventory of raw material and finished goods, the waste of overproduction (producing more than what is needed now), the waste of over-processing (processing or making parts beyond the standard expected by customer), the waste of transportation (unnecessary movement of people and goods inside the system), the waste of excess motion (mechanizing or automating before improving the method), the waste of waiting (inactive working periods due to job queues), and the waste of making defective products (reworking to fix avoidable defects in products and processes).[4]

The term Lean was coined in 1988 by American businessman John Krafcik in his article "Triumph of the Lean Production System", and defined in 1996 by American researchers James Womack and Daniel Jones to consist of five key principles: "Precisely specify value by specific product, identify the value stream for each product, make value flow without interruptions, let customer pull value from the producer, and pursue perfection."[5]

Companies employ the strategy to increase efficiency. By receiving goods only as they need them for the production process, it reduces inventory costs and wastage, and increases productivity and profit. The downside is that it requires producers to forecast demand accurately as the benefits can be nullified by minor delays in the supply chain. It may also impact negatively on workers due to added stress and inflexible conditions. A successful operation depends on a company having regular outputs, high-quality processes, and reliable suppliers.

History edit

Fredrick Taylor and Henry Ford documented their observations relating to these topics, and Shigeo Shingo and Taiichi Ohno applied their enhanced thoughts on the subject at Toyota in the late 1940s after the World War II. The resulting methods were researched from the mid-20th century and dubbed Lean by John Krafcik in 1988, and then were defined in The Machine that Changed the World[6] and further detailed by James Womack and Daniel Jones in Lean Thinking (1996).

Japan, the Origins of Lean edit

The exact reasons for adoption of just-in-time manufacturing in Japan are clear, some people suggest it started with a requirement to solve the lack of standardization, which is not the complete story nor the actual reason. Japanese companies needed an immediate solution for the extreme situation they were living after the World War II. American supply chain specialist Gergard Plenert has offered four quite vague reasons, paraphrased here. During Japan's post–World War II rebuilding (of economy, infrastructure, industry, political, and social-emotional stability):

  1. Japan's lack of cash made it difficult for industry to finance the big-batch, large inventory production methods common elsewhere.
  2. Japan lacked space to build big factories loaded with inventory.
  3. The Japanese islands lack natural resources with which to build products.
  4. Japan had high unemployment, which meant that labor efficiency methods were not an obvious pathway to industrial success.

Thus, the Japanese "leaned out" their processes. "They built smaller factories ... in which the only materials housed in the factory were those on which work was currently being done. In this way, inventory levels were kept low, investment in in-process inventories was at a minimum, and the investment in purchased natural resources was quickly turned around so that additional materials were purchased." Plenert goes on to explain Toyota's key role in developing this lean or just-in-time production methodology.[7]

American industrialists recognized the threat of cheap offshore labor to American workers during the 1910s, and explicitly stated the goal of what is now called lean manufacturing as a countermeasure. Henry Towne, past president of the American Society of Mechanical Engineers, wrote in the foreword to Frederick Winslow Taylor's Shop Management (1911), "We are justly proud of the high wage rates which prevail throughout our country, and jealous of any interference with them by the products of the cheaper labor of other countries. To maintain this condition, to strengthen our control of home markets, and, above all, to broaden our opportunities in foreign markets where we must compete with the products of other industrial nations, we should welcome and encourage every influence tending to increase the efficiency of our productive processes."[8]

Continuous production improvement and incentives for such were documented in Taylor's Principles of Scientific Management (1911):

  • "... whenever a workman proposes an improvement, it should be the policy of the management to make a careful analysis of the new method, and if necessary conduct a series of experiments to determine accurately the relative merit of the new suggestion and of the old standard. And whenever the new method is found to be markedly superior to the old, it should be adopted as the standard for the whole establishment."
  • "...after a workman has had the price per piece of the work he is doing lowered two or three times as a result of his having worked harder and increased his output, he is likely entirely to lose sight of his employer's side of the case and become imbued with a grim determination to have no more cuts if soldiering [marking time, just doing what he is told] can prevent it."

Shigeo Shingo cites reading Principles of Scientific Management in 1931 and being "greatly impressed to make the study and practice of scientific management his life's work".[9][need quotation to verify], [10][page needed]

Shingo and Taiichi Ohno were key to the design of Toyota's manufacturing process. Previously a textile company, Toyota moved into building automobiles in 1934. Kiichiro Toyoda, founder of Toyota Motor Corporation, directed the engine casting work and discovered many problems in their manufacturing, with wasted resources on repair of poor-quality castings. Toyota engaged in intense study of each stage of the process. In 1936, when Toyota won its first truck contract with the Japanese government, the processes encountered new problems, to which Toyota responded by developing Kaizen improvement teams, into what has become the Toyota Production System (TPS), and subsequently The Toyota Way.

Levels of demand in the postwar economy of Japan were low; as a result, the focus of mass production on lowest cost per item via economies of scale had little application. Having visited and seen supermarkets in the United States, Ohno recognized that the scheduling of work should not be driven by sales or production targets but by actual sales. Given the financial situation during this period, over-production had to be avoided, and thus the notion of "pull" (or "build-to-order" rather than target-driven "push") came to underpin production scheduling.

Evolution in the rest of the world edit

Just-in-time manufacturing was introduced in Australia in the 1950s by the British Motor Corporation (Australia) at its Victoria Park plant in Sydney, from where the idea later migrated to Toyota.[11] News about just-in-time/Toyota production system reached other western countries from Japan in 1977 in two English-language articles: one referred to the methodology as the "Ohno system", after Taiichi Ohno, who was instrumental in its development within Toyota.[12] The other article, by Toyota authors in an international journal, provided additional details.[13] Finally, those and other publicity were translated into implementations, beginning in 1980 and then quickly multiplying throughout industry in the United States and other developed countries. A seminal 1980 event was a conference in Detroit at Ford World Headquarters co-sponsored by the Repetitive Manufacturing Group (RMG), which had been founded 1979 within the American Production and Inventory Control Society (APICS) to seek advances in manufacturing. The principal speaker, Fujio Cho (later, president of Toyota Motor Corp.), in explaining the Toyota system, stirred up the audience, and led to the RMG's shifting gears from things like automation to just-in-time/Toyota production system.[14]

At least some of audience's stirring had to do with a perceived clash between the new just-in-time regime and manufacturing resource planning (MRP II), a computer software-based system of manufacturing planning and control which had become prominent in industry in the 1960s and 1970s. Debates in professional meetings on just-in-time vs. MRP II were followed by published articles, one of them titled, "The Rise and Fall of Just-in-Time".[15] Less confrontational was Walt Goddard's, "Kanban Versus MRP II—Which Is Best for You?" in 1982.[16] Four years later, Goddard had answered his own question with a book advocating just-in-time.[17] Among the best known of MRP II's advocates was George Plossl, who authored two articles questioning just-in-time's kanban planning method[18] and the "japanning of America".[19] But, as with Goddard, Plossl later wrote that "JIT is a concept whose time has come".[20]

Just-in-time/TPS implementations may be found in many case-study articles from the 1980s and beyond. An article in a 1984 issue of Inc. magazine[21] relates how Omark Industries (chain saws, ammunition, log loaders, etc.) emerged as an extensive just-in-time implementer under its US home-grown name ZIPS (zero inventory production system). At Omark's mother plant in Portland, Oregon, after the work force had received 40 hours of ZIPS training, they were "turned loose" and things began to happen. A first step was to "arbitrarily eliminate a week's lead time [after which] things ran smoother. 'People asked that we try taking another week's worth out.' After that, ZIPS spread throughout the plant's operations 'like an amoeba.'" The article also notes that Omark's 20 other plants were similarly engaged in ZIPS, beginning with pilot projects. For example, at one of Omark's smaller plants making drill bits in Mesabi, Minnesota, "large-size drill inventory was cut by 92%, productivity increased by 30%, scrap and rework ... dropped 20%, and lead time ... from order to finished product was slashed from three weeks to three days." The Inc. article states that companies using just-in-time the most extensively include "the Big Four, Hewlett-Packard, Motorola, Westinghouse Electric, General Electric, Deere & Company, and Black and Decker".[citation needed]

By 1986, a case-study book on just-in-time in the U.S.[22] was able to devote a full chapter to ZIPS at Omark, along with two chapters on just-in-time at several Hewlett-Packard plants, and single chapters for Harley-Davidson, John Deere, IBM-Raleigh, North Carolina, and California-based Apple Inc., a Toyota truck-bed plant, and New United Motor Manufacturing joint venture between Toyota and General Motors.[citation needed]

Two similar, contemporaneous books from the U.K. are more international in scope.[23] One of the books, with both conceptual articles and case studies, includes three sections on just-in-time practices: in Japan (e.g., at Toyota, Mazda, and Tokagawa Electric); in Europe (jmg Bostrom, Lucas Electric, Cummins Engine, IBM, 3M, Datasolve Ltd., Renault, Massey Ferguson); and in the US and Australia (Repco Manufacturing-Australia, Xerox Computer, and two on Hewlett-Packard). The second book, reporting on what was billed as the First International Conference on just-in-time manufacturing,[24] includes case studies in three companies: Repco-Australia, IBM-UK, and 3M-UK. In addition, a day two keynote address discussed just-in-time as applied "across all disciplines, ... from accounting and systems to design and production".[24]: J1–J9 

Rebranding as "lean" edit

John Krafcik coined the term Lean in his 1988 article, "Triumph of the Lean Production System".[25] The article states: (a) Lean manufacturing plants have higher levels of productivity/quality than non-Lean and (b) "The level of plant technology seems to have little effect on operating performance" (page 51). According to the article, risks with implementing Lean can be reduced by: "developing a well-trained, flexible workforce, product designs that are easy to build with high quality, and a supportive, high-performance supplier network" (page 51).

Middle era and to the present edit

Three more books which include just-in-time implementations were published in 1993,[26] 1995,[27] and 1996,[28] which are start-up years of the lean manufacturing/lean management movement that was launched in 1990 with publication of the book, The Machine That Changed the World.[29] That one, along with other books, articles, and case studies on lean, were supplanting just-in-time terminology in the 1990s and beyond. The same period, saw the rise of books and articles with similar concepts and methodologies but with alternative names, including cycle time management,[30] time-based competition,[31] quick-response manufacturing,[32] flow,[33] and pull-based production systems.[34]

There is more to just-in-time than its usual manufacturing-centered explication. Inasmuch as manufacturing ends with order-fulfillment to distributors, retailers, and end users, and also includes remanufacturing, repair, and warranty claims, just-in-time's concepts and methods have application downstream from manufacturing itself. A 1993 book on "world-class distribution logistics" discusses kanban links from factories onward.[35] And a manufacturer-to-retailer model developed in the U.S. in the 1980s, referred to as quick response,[36] has morphed over time to what is called fast fashion.[37][38]

Methodology edit

The strategic elements of lean can be quite complex, and comprise multiple elements. Four different notions of lean have been identified:[39]

  1. Lean as a fixed state or goal (being lean)
  2. Lean as a continuous change process (becoming lean)
  3. Lean as a set of tools or methods (doing lean/toolbox lean)
  4. Lean as a philosophy (lean thinking)

The other way to avoid market risk and control the supply efficiently is to cut down in stock. P&G has completed their goal to co-operate with Walmart and other wholesales companies by building the response system of stocks directly to the suppliers companies.[40]

In 1999, Spear and Bowen[41] identified four rules which characterize the "Toyota DNA":

  1. All work shall be highly specified as to content, sequence, timing, and outcome.
  2. Every customer-supplier connection must be direct, and there must be an unambiguous yes or no way to send requests and receive responses.
  3. The pathway for every product and service must be simple and direct.
  4. Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization.

This is a fundamentally different approach from most improvement methodologies, and requires more persistence than basic application of the tools, which may partially account for its lack of popularity.[42] The implementation of "smooth flow" exposes quality problems that already existed, and waste reduction then happens as a natural consequence, a system-wide perspective rather focusing directly upon the wasteful practices themselves.

Takt time is the rate at which products need to be produced to meet customer demand. The JIT system is designed to produce products at the rate of takt time, which ensures that products are produced just in time to meet customer demand.[43]

Sepheri provides a list of methodologies of just-in-time manufacturing that "are important but not exhaustive":[44]

  • Housekeeping: physical organization and discipline.
  • Make it right the first time: elimination of defects.
  • Setup reduction: flexible changeover approaches.
  • Lot sizes of one: the ultimate lot size and flexibility.
  • Uniform plant load: leveling as a control mechanism.
  • Balanced flow: organizing flow scheduling throughput.
  • Skill diversification: multi-functional workers.
  • Control by visibility: communication media for activity.
  • Preventive maintenance: flawless running, no defects.
  • Fitness for use: producibility, design for process.
  • Compact plant layout: product-oriented design.
  • Streamlining movements: smoothing materials handling.
  • Supplier networks: extensions of the factory.
  • Worker involvement: small group improvement activities.
  • Cellular manufacturing: production methods for flow.
  • Pull system: signal [kanban] replenishment/resupply systems.

Key principles and waste edit

Womack and Jones define Lean as "...a way to do more and more with less and less—less human effort, less equipment, less time, and less space—while coming closer and closer to providing customers exactly what they want" and then translate this into five key principles:[45]

  1. Value: Specify the value desired by the customer. "Form a team for each product to stick with that product during its entire production cycle", "Enter into a dialogue with the customer" (e.g. Voice of the customer)
  2. The Value Stream: Identify the value stream for each product providing that value and challenge all of the wasted steps (generally nine out of ten) currently necessary to provide it
  3. Flow: Make the product flow continuously through the remaining value-added steps
  4. Pull: Introduce pull between all steps where continuous flow is possible
  5. Perfection: Manage toward perfection so that the number of steps and the amount of time and information needed to serve the customer continually falls

Lean is founded on the concept of continuous and incremental improvements on product and process while eliminating redundant activities. "The value of adding activities are simply only those things the customer is willing to pay for, everything else is waste, and should be eliminated, simplified, reduced, or integrated".[46]

On principle 2, waste, see seven basic waste types under The Toyota Way. Additional waste types are:

  • Faulty goods (manufacturing of goods or services that do not meet customer demand or specifications, Womack et al., 2003. See Lean services)
  • Waste of skills (Six Sigma)
  • Under-utilizing capabilities (Six Sigma)
  • Delegating tasks with inadequate training (Six Sigma)
  • Metrics (working to the wrong metrics or no metrics) (Mika Geoffrey, 1999)
  • Participation (not utilizing workers by not allowing them to contribute ideas and suggestions and be part of Participative Management) (Mika Geoffrey, 1999)
  • Computers (improper use of computers: not having the proper software, training on use and time spent surfing, playing games or just wasting time) (Mika Geoffrey, 1999)[47]

Implementation edit

One paper suggests that an organization implementing Lean needs its own Lean plan as developed by the "Lean Leadership". This should enable Lean teams to provide suggestions for their managers who then makes the actual decisions about what to implement. Coaching is recommended when an organization starts off with Lean to impart knowledge and skills to shop-floor staff. Improvement metrics are required for informed decision-making.[48]

Lean philosophy and culture is as important as tools and methodologies. Management should not decide on solutions without understanding the true problem by consulting shop floor personnel.[49]

The solution to a specific problem for a specific company may not have generalized application. The solution must fit the problem.[50]

Value-stream mapping (VSM) and 5S are the most common approaches companies take on their first steps to Lean. Lean can be focused on specific processes, or cover the entire supply chain. Front-line workers should be involved in VSM activities. Implementing a series of small improvements incrementally along the supply chain can bring forth enhanced productivity.[51]

Naming edit

Alternative terms for JIT manufacturing have been used. Motorola's choice was short-cycle manufacturing (SCM).[52][53] IBM's was continuous-flow manufacturing (CFM),[54][55] and demand-flow manufacturing (DFM), a term handed down from consultant John Constanza at his Institute of Technology in Colorado.[56] Still another alternative was mentioned by Goddard, who said that "Toyota Production System is often mistakenly referred to as the 'Kanban System'", and pointed out that kanban is but one element of TPS, as well as JIT production.[17]: 11 

The wide use of the term JIT manufacturing throughout the 1980s faded fast in the 1990s, as the new term lean manufacturing became established[57][page needed], [58][need quotation to verify] as "a more recent name for JIT".[59] As just one testament to the commonality of the two terms, Toyota production system (TPS) has been and is widely used as a synonym for both JIT and lean manufacturing.[60][need quotation to verify], [61]

Objectives and benefits edit

Objectives and benefits of JIT manufacturing may be stated in two primary ways: first, in specific and quantitative terms, via published case studies; second, general listings and discussion.

A case-study summary from Daman Products in 1999 lists the following benefits: reduced cycle times 97%, setup times 50%, lead times from 4 to 8 weeks to 5 to 10 days, flow distance 90%. This was achieved via four focused (cellular) factories, pull scheduling, kanban, visual management, and employee empowerment.[62]

Another study from NCR (Dundee, Scotland) in 1998, a producer of make-to-order automated teller machines, includes some of the same benefits while also focusing on JIT purchasing: In switching to JIT over a weekend in 1998, eliminated buffer inventories, reducing inventory from 47 days to 5 days, flow time from 15 days to 2 days, with 60% of purchased parts arriving JIT and 77% going dock to line, and suppliers reduced from 480 to 165.[63]

Hewlett-Packard, one of western industry's earliest JIT implementers, provides a set of four case studies from four H-P divisions during the mid-1980s.[64] The four divisions, Greeley, Fort Collins, Computer Systems, and Vancouver, employed some but not all of the same measures. At the time about half of H-P's 52 divisions had adopted JIT.

Greeley Fort Collins Computer Systems Vancouver
Inventory reduction 2.8 months 75% 75%
Labor cost reduction 30% 15% 50%
Space reduction 50% 30% 33% 40%
WIP stock reduction 22 days to 1 day
Production increase 100%
Quality improvement 30% scrap, 79% rework 80% scrap 30% scrap & rework
Throughput time reduction 50% 17 days to 30 hours
Standard hours reduction 50%
No. of shipments increase 20%

Use in other sectors edit

Lean principles have been successfully applied to various sectors and services, such as call centers and healthcare. In the former, lean's waste reduction practices have been used to reduce handle time, within and between agent variation, accent barriers, as well as attain near perfect process adherence.[65][need quotation to verify] In the latter, several hospitals have adopted the idea of lean hospital, a concept that prioritizes the patient, thus increasing the employee commitment and motivation, as well as boosting medical quality and cost effectiveness.[66][need quotation to verify]

Lean principles also have applications to software development and maintenance as well as other sectors of information technology (IT).[67] More generally, the use of lean in information technology has become known as Lean IT.[citation needed] Lean methods are also applicable to the public sector, but most results have been achieved using a much more restricted range of techniques than lean provides.[68][page needed]

The challenge in moving lean to services is the lack of widely available reference implementations to allow people to see how directly applying lean manufacturing tools and practices can work and the impact it does have. This makes it more difficult to build the level of belief seen as necessary for strong implementation. However, some research does relate widely recognized examples of success in retail and even airlines to the underlying principles of lean.[69] Despite this, it remains the case that the direct manufacturing examples of 'techniques' or 'tools' need to be better 'translated' into a service context to support the more prominent approaches of implementation, which has not yet received the level of work or publicity that would give starting points for implementors. The upshot of this is that each implementation often 'feels its way' along as must the early industrial engineering practices of Toyota. This places huge importance upon sponsorship to encourage and protect these experimental developments.[citation needed]

Lean management is nowadays implemented also in non-manufacturing processes and administrative processes. In non-manufacturing processes is still huge potential for optimization and efficiency increase.[70] Some people have advocated using STEM resources to teach children Lean thinking instead of computer science. [71]

Criticism edit

According to Williams, it becomes necessary to find suppliers that are close by or can supply materials quickly with limited advance notice. When ordering small quantities of materials, suppliers' minimum order policies may pose a problem, though.[72]

Employees are at risk of precarious work when employed by factories that utilize just-in-time and flexible production techniques. A longitudinal study of US workers since 1970 indicates employers seeking to easily adjust their workforce in response to supply and demand conditions respond by creating more nonstandard work arrangements, such as contracting and temporary work.[73]

Natural and human-made disasters will disrupt the flow of energy, goods and services. The down-stream customers of those goods and services will, in turn, not be able to produce their product or render their service because they were counting on incoming deliveries "just in time" and so have little or no inventory to work with. The disruption to the economic system will cascade to some degree depending on the nature and severity of the original disaster and may create shortages.[74] The larger the disaster the worse the effect on just-in-time failures. Electrical power is the ultimate example of just-in-time delivery. A severe geomagnetic storm could disrupt electrical power delivery for hours to years, locally or even globally. Lack of supplies on hand to repair the electrical system would have catastrophic effects.[75]

The COVID-19 pandemic has caused disruption in JIT practices, with various quarantine restrictions on international trade and commercial activity in general interrupting supply while lacking stockpiles to handle the disruption; along with increased demand for medical supplies like personal protective equipment (PPE) and ventilators, and even panic buying, including of various domestically manufactured (and so less vulnerable) products like panic buying of toilet paper, disturbing regular demand. This has led to suggestions that stockpiles and diversification of suppliers should be more heavily focused.[76][77][78][79]

Critics of Lean argue that this management method has significant drawbacks, especially for the employees of companies operating under Lean. Common criticism of Lean is that it fails to take into consideration the employee's safety and well-being. Lean manufacturing is associated with an increased level of stress among employees, who have a small margin of error in their work environment which require perfection. Lean also over-focuses on cutting waste, which may lead management to cut sectors of the company that are not essential to the company's short-term productivity but are nevertheless important to the company's legacy. Lean also over-focuses on the present, which hinders a company's plans for the future.[80]

Critics also make negative comparison of Lean and 19th century scientific management, which had been fought by the labor movement and was considered obsolete by the 1930s. Finally, lean is criticized for lacking a standard methodology: "Lean is more a culture than a method, and there is no standard lean production model."[80]

After years of success of Toyota's Lean Production, the consolidation of supply chain networks has brought Toyota to the position of being the world's biggest carmaker in the rapid expansion. In 2010, the crisis of safety-related problems in Toyota made other carmakers that duplicated Toyota's supply chain system wary that the same recall issue might happen to them. James Womack had warned Toyota that cooperating with single outsourced suppliers might bring unexpected problems.[81]

Lean manufacturing is different from lean enterprise. Recent research reports the existence of several lean manufacturing processes but of few lean enterprises.[82] One distinguishing feature opposes lean accounting and standard cost accounting. For standard cost accounting, SKUs are difficult to grasp. SKUs include too much hypothesis and variance, i.e., SKUs hold too much indeterminacy. Manufacturing may want to consider moving away from traditional accounting and adopting lean accounting. In using lean accounting, one expected gain is activity-based cost visibility, i.e., measuring the direct and indirect costs at each step of an activity rather than traditional cost accounting that limits itself to labor and supplies.[citation needed]

See also edit

Notes edit

  1. ^ According to Kamarudin Abu Bakar; Mohd Fazli Mohd. Sam; M.I. Qureshi (2022), "Lean Manufacturing Design of a Two-Sided Assembly Line Balancing Problem Work Cell", in Mohd Najib Ali Mokhtar; Zamberi Jamaludin; Mohd Sanusi Abdul Aziz; Mohd Nazmin Maslan; Jeeferie Abd Razak (eds.), Intelligent Manufacturing and Mechatronics: Proceedings of SympoSIMM 2021, Springer Nature, p. 250: "While Just-In-Time manufacturing focuses on efficiency of inventory strategy to eliminate waste and enhance productivity, Lean manufacturing uses efficiency in its system setups to reduce cycle, flow, and throughput times being the added values to customers."
  2. ^ Ohno, Taiichi (1988). Toyota Production System: Beyond Large-Scale Production. CRC Press. ISBN 978-0-915299-14-0.
  3. ^ Shingo, Shigeo. 1985. A Revolution in Manufacturing: The SMED System. Stamford, Ct.: Productivity Press
  4. ^ Jonathan Law, ed. (2009), A Dictionary of Business and Management, Oxford University Press
  5. ^ Womack, James P.; Jones, Daniel T. (2003), Lean Thinking: Banish Waste And Create Wealth In Your Corporation, Simon and Schuster, p. 10, ISBN 9781471111006, from the original on October 22, 2021, retrieved October 2, 2020
  6. ^ Womack, James P.; Jones, Daniel T.; Roos, Daniel (1990), Machine that Changed the World, New York: Rawson Associates, pp. 13–15, ISBN 9780892563500, from the original on February 19, 2022, retrieved October 2, 2020
  7. ^ Plenert, G. 2007.Reinventing Lean: Introducing Lean Management into the Supply Chain. Oxford, U.K.: Butterworth-Heinemann. pp. 41–42.
  8. ^ Levinson, William A. (2016). Lean Management System LMS:2012: A Framework for Continual Lean Improvement. CRC Press. p. 11. ISBN 9781466505384. from the original on August 20, 2021. Retrieved May 5, 2019.
  9. ^ Shingo, Shigeo (1987). The Sayings of Shigeo Shingo: Key Strategies for Plant Improvement. Translated by Dillon, Andrew P. New York: Productivity Press. ISBN 0-915299-15-1. from the original on February 19, 2022. Retrieved October 2, 2020.
  10. ^ Shingo, Shigeo (1985). A Revolution In Manufacturing: The SMED System. Portland, Oregon: Productivity Press. ISBN 0-915299-03-8. from the original on August 20, 2021. Retrieved October 2, 2020.
  11. ^ "Archived copy" (PDF). (PDF) from the original on September 4, 2021. Retrieved June 1, 2021.{{cite web}}: CS1 maint: archived copy as title (link)
  12. ^ Ashburn, A., 1977. Toyota's "famous Ohno system", American Machinist, July, 120–123.
  13. ^ Sugimori, Y.; Kusunoki, K.; Cho, F.; Uchikawa, S. (1977). "Toyota Production System and Kanban System: Materialization of Just-in-time and Respect-for-human System". International Journal of Production Research. 15 (6): 553–564. doi:10.1080/00207547708943149. ISSN 0020-7543.
  14. ^ "The Founding of the Association for Manufacturing Excellence: Summarized at a Meeting of its Founders, February 2, 2001" (PDF). Target. Association for Manufacturing Excellence. 17 (3): 23–24. 2001. (PDF) from the original on March 9, 2021. Retrieved June 1, 2021. 1980: At Bendix in Southfield, MI, the mood darkened. John Kinsey, Ken Wantuck, Doc, Larry and others at this meeting had been exposed to "Japanese manufacturing." While we dinked with MRP, the Japanese were eating our lunch; something more significant was needed. Afterward, Mac and Nick visited the APICS president to seek recognition as a special interest group of APICS. We became the Repetitive Manufacturing Group (RMG) of APICS, but to front the next workshop, we opened our own bank account. By APICS rules, we weren't supposed to do that. [...] In October, the Detroit APICS Chapter supported by several members of the Repetitive Manufacturing Group sponsored the first-known conference in the United States on "Japanese Manufacturing" at Ford World Headquarters Auditorium. The featured speaker was Fujio Cho, now president of Toyota.
  15. ^ Landvater, Darryl. 1984. "The rise and fall of just-in-time". Infosystems. November, p 62.
  16. ^ Goddard, W. 1982. "Kanban versus MRP II—which is best for you?" Modern Materials Handling. November 5, 1982, p 40-48.
  17. ^ a b Goddard, Walter E. 1986. Just-in-Time: Surviving by Breaking Tradition. Essex Junction, Vt." Oliver Wight Ltd.
  18. ^ Plossl, G.W. 1981. Japanese productivity: myth vs. reality. P&IM Review and APICS News, September, pp 59–62.
  19. ^ Plossl, G.W. 1984. The redirection of U.S. manufacturing. P&IM Review and APICS News. November, pp 50–53.
  20. ^ Plossl. G.W. 1986. "J.I.T. – fad or fact of life?" P&IM Review and APICS News, February 1986, p. 24.
  21. ^ Walters, C.R. 1984. Why everybody's talking about "just-in-time." Inc. (March 1) 77–90.
  22. ^ Sepehri, Mehran. 1986. Just-in-Time: Not Just in Japan: Case Studies of American Pioneers in JIT Implementation. Falls Church, Va.: American Production and Inventory Control Society
  23. ^ Mortimer, J. (1986). Just-in-Time: An Executive Briefing. Kempston, Bedford, UK: IFS Ltd.
  24. ^ a b Ingersoll Engineers. 1986. Just in Time Manufacturing: Proceedings of the First International Conference. London, UK. April 8–9, 1986.
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References edit

  • Anderson, Barry (ed.) 2012. Building Cars in Australia: Morris, Austin, BMC and Leyland 1950-1976. Sydney: Halstead Press.
  • Billesbach, Thomas J. 1987. Applicability of Just-in-Time Techniques in the Administrative Area. Doctoral dissertation, University of Nebraska. Ann Arbor, Mich., University Microfilms International.
  • Goddard, W. E. 2001. JIT/TQC—identifying and solving problems. Proceedings of the 20th Electrical Electronics Insulation Conference, Boston, October 7–10, 88–91.
  • Goldratt, Eliyahu M. and Fox, Robert E. (1986), The Race, North River Press, ISBN 0-88427-062-9
  • Hall, Robert W. 1983. Zero Inventories. Homewood, Ill.: Dow Jones-Irwin.
  • Hall, Robert W. 1987. Attaining Manufacturing Excellence: Just-in-Time, Total Quality, Total People Involvement. Homewood, Ill.: Dow Jones-Irwin.
  • Hay, Edward J. 1988. The Just-in-Time Breakthrough: Implementing the New Manufacturing Basics. New York: Wiley.
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  • Hum, Sin-Hoon (1991). "Industrial progress and the strategic significance of JIT and TQC for developing countries". International Journal of Operations & Production Management. 110 (5): 39–46. doi:10.1108/01443579110145320.
  • Hyer, Nancy; Wemmerlov, Urban (2001). Reorganizing the Factory: Competing Through Cellular Manufacturing. CRC Press. ISBN 9781563272288.
  • Jackson, Paul (1991). "White collar JIT at Security Pacific". Target. 7 (1): 32–37.
  • Ker, J. I., Wang, Y., Hajli, M. N., Song, J., Ker, C. W. (2014). Deploying Lean in Healthcare: Evaluating Information Technology Effectiveness in US Hospital Pharmacies
  • Lubben, R. T. 1988. Just-in-Time Manufacturing: An Aggressive Manufacturing Strategy. New York: McGraw-Hill.
  • MacInnes, Richard L. (2002) The Lean Enterprise Memory Jogger.
  • Mika, Geoffrey L. (1999) Kaizen Event Implementation Manual
  • Monden, Yasuhiro. 1982. Toyota Production System. Norcross, Ga: Institute of Industrial Engineers.
  • Ohno, Taiichi (1988), Toyota Production System: Beyond Large-Scale Production, Productivity Press, ISBN 0-915299-14-3
  • Ohno, Taiichi (1988), Just-In-Time for Today and Tomorrow, Productivity Press, ISBN 0-915299-20-8.
  • Page, Julian (2003) Implementing Lean Manufacturing Techniques.
  • Schonberger, Richard J. 1982. Japanese Manufacturing Techniques: Nine Hidden Lessons in Simplicity. New York: Free Press.
  • Shingo, Shingeo; Dillon, Andrew P. (1989). A Study of the Toyota Production System: From an Industrial Engineering Viewpoint. CRC Press. ISBN 9780915299171.
  • Suri, R. 1986. Getting from 'just in case' to 'just in time': insights from a simple model. 6 (3) 295–304.
  • Suzaki, Kyoshi. 1993. The New Shop Floor Management: Empowering People for Continuous Improvement. New York: Free Press.
  • Voss, Chris, and David Clutterbuck. 1989. Just-in-Time: A Global Status Report. UK: IFS Publications.
  • Wadell, William, and Bodek, Norman (2005), The Rebirth of American Industry, PCS Press, ISBN 0-9712436-3-8
  • Womack, James P.; Jones, Daniel T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Simon and Schuster. ISBN 9781471111006. from the original on October 22, 2021. Retrieved October 2, 2020.
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External links edit

  • Lean Enterprise Institute

lean, manufacturing, production, method, aimed, primarily, reducing, times, within, production, system, well, response, times, from, suppliers, customers, closely, related, another, concept, called, just, time, manufacturing, manufacturing, short, just, time, . Lean manufacturing is a production method aimed primarily at reducing times within the production system as well as response times from suppliers and to customers It is closely related to another concept called just in time manufacturing JIT manufacturing in short Just in time manufacturing tries to match production to demand by only supplying goods which have been ordered and focuses on efficiency productivity with a commitment to continuous improvement and reduction of wastes for the producer and supplier of goods Lean manufacturing adopts the just in time approach and additionally focuses on reducing cycle flow and throughput times by further eliminating activities which do not add any value for the customer 1 Lean manufacturing also involves people who work outside of the manufacturing process such as in marketing and customer service Lean manufacturing is particularly related to the operational model implemented in the post war 1950s and 1960s by the Japanese automobile company Toyota called Toyota Production System TPS known in the US as The Toyota Way 2 3 Toyota s system was erected on the two pillars of just in time inventory management and automated quality control The seven wastes muda in Japanese first formulated by Toyota engineer Shigeo Shingo are the waste of superfluous inventory of raw material and finished goods the waste of overproduction producing more than what is needed now the waste of over processing processing or making parts beyond the standard expected by customer the waste of transportation unnecessary movement of people and goods inside the system the waste of excess motion mechanizing or automating before improving the method the waste of waiting inactive working periods due to job queues and the waste of making defective products reworking to fix avoidable defects in products and processes 4 The term Lean was coined in 1988 by American businessman John Krafcik in his article Triumph of the Lean Production System and defined in 1996 by American researchers James Womack and Daniel Jones to consist of five key principles Precisely specify value by specific product identify the value stream for each product make value flow without interruptions let customer pull value from the producer and pursue perfection 5 Companies employ the strategy to increase efficiency By receiving goods only as they need them for the production process it reduces inventory costs and wastage and increases productivity and profit The downside is that it requires producers to forecast demand accurately as the benefits can be nullified by minor delays in the supply chain It may also impact negatively on workers due to added stress and inflexible conditions A successful operation depends on a company having regular outputs high quality processes and reliable suppliers Contents 1 History 1 1 Japan the Origins of Lean 1 2 Evolution in the rest of the world 1 3 Rebranding as lean 1 4 Middle era and to the present 2 Methodology 2 1 Key principles and waste 2 2 Implementation 3 Naming 4 Objectives and benefits 5 Use in other sectors 6 Criticism 7 See also 8 Notes 9 References 10 External linksHistory editFredrick Taylor and Henry Ford documented their observations relating to these topics and Shigeo Shingo and Taiichi Ohno applied their enhanced thoughts on the subject at Toyota in the late 1940s after the World War II The resulting methods were researched from the mid 20th century and dubbed Lean by John Krafcik in 1988 and then were defined in The Machine that Changed the World 6 and further detailed by James Womack and Daniel Jones in Lean Thinking 1996 Japan the Origins of Lean edit The exact reasons for adoption of just in time manufacturing in Japan are clear some people suggest it started with a requirement to solve the lack of standardization which is not the complete story nor the actual reason Japanese companies needed an immediate solution for the extreme situation they were living after the World War II American supply chain specialist Gergard Plenert has offered four quite vague reasons paraphrased here During Japan s post World War II rebuilding of economy infrastructure industry political and social emotional stability Japan s lack of cash made it difficult for industry to finance the big batch large inventory production methods common elsewhere Japan lacked space to build big factories loaded with inventory The Japanese islands lack natural resources with which to build products Japan had high unemployment which meant that labor efficiency methods were not an obvious pathway to industrial success Thus the Japanese leaned out their processes They built smaller factories in which the only materials housed in the factory were those on which work was currently being done In this way inventory levels were kept low investment in in process inventories was at a minimum and the investment in purchased natural resources was quickly turned around so that additional materials were purchased Plenert goes on to explain Toyota s key role in developing this lean or just in time production methodology 7 American industrialists recognized the threat of cheap offshore labor to American workers during the 1910s and explicitly stated the goal of what is now called lean manufacturing as a countermeasure Henry Towne past president of the American Society of Mechanical Engineers wrote in the foreword to Frederick Winslow Taylor s Shop Management 1911 We are justly proud of the high wage rates which prevail throughout our country and jealous of any interference with them by the products of the cheaper labor of other countries To maintain this condition to strengthen our control of home markets and above all to broaden our opportunities in foreign markets where we must compete with the products of other industrial nations we should welcome and encourage every influence tending to increase the efficiency of our productive processes 8 Continuous production improvement and incentives for such were documented in Taylor s Principles of Scientific Management 1911 whenever a workman proposes an improvement it should be the policy of the management to make a careful analysis of the new method and if necessary conduct a series of experiments to determine accurately the relative merit of the new suggestion and of the old standard And whenever the new method is found to be markedly superior to the old it should be adopted as the standard for the whole establishment after a workman has had the price per piece of the work he is doing lowered two or three times as a result of his having worked harder and increased his output he is likely entirely to lose sight of his employer s side of the case and become imbued with a grim determination to have no more cuts if soldiering marking time just doing what he is told can prevent it Shigeo Shingo cites reading Principles of Scientific Management in 1931 and being greatly impressed to make the study and practice of scientific management his life s work 9 need quotation to verify 10 page needed Shingo and Taiichi Ohno were key to the design of Toyota s manufacturing process Previously a textile company Toyota moved into building automobiles in 1934 Kiichiro Toyoda founder of Toyota Motor Corporation directed the engine casting work and discovered many problems in their manufacturing with wasted resources on repair of poor quality castings Toyota engaged in intense study of each stage of the process In 1936 when Toyota won its first truck contract with the Japanese government the processes encountered new problems to which Toyota responded by developing Kaizen improvement teams into what has become the Toyota Production System TPS and subsequently The Toyota Way Levels of demand in the postwar economy of Japan were low as a result the focus of mass production on lowest cost per item via economies of scale had little application Having visited and seen supermarkets in the United States Ohno recognized that the scheduling of work should not be driven by sales or production targets but by actual sales Given the financial situation during this period over production had to be avoided and thus the notion of pull or build to order rather than target driven push came to underpin production scheduling Evolution in the rest of the world edit Just in time manufacturing was introduced in Australia in the 1950s by the British Motor Corporation Australia at its Victoria Park plant in Sydney from where the idea later migrated to Toyota 11 News about just in time Toyota production system reached other western countries from Japan in 1977 in two English language articles one referred to the methodology as the Ohno system after Taiichi Ohno who was instrumental in its development within Toyota 12 The other article by Toyota authors in an international journal provided additional details 13 Finally those and other publicity were translated into implementations beginning in 1980 and then quickly multiplying throughout industry in the United States and other developed countries A seminal 1980 event was a conference in Detroit at Ford World Headquarters co sponsored by the Repetitive Manufacturing Group RMG which had been founded 1979 within the American Production and Inventory Control Society APICS to seek advances in manufacturing The principal speaker Fujio Cho later president of Toyota Motor Corp in explaining the Toyota system stirred up the audience and led to the RMG s shifting gears from things like automation to just in time Toyota production system 14 At least some of audience s stirring had to do with a perceived clash between the new just in time regime and manufacturing resource planning MRP II a computer software based system of manufacturing planning and control which had become prominent in industry in the 1960s and 1970s Debates in professional meetings on just in time vs MRP II were followed by published articles one of them titled The Rise and Fall of Just in Time 15 Less confrontational was Walt Goddard s Kanban Versus MRP II Which Is Best for You in 1982 16 Four years later Goddard had answered his own question with a book advocating just in time 17 Among the best known of MRP II s advocates was George Plossl who authored two articles questioning just in time s kanban planning method 18 and the japanning of America 19 But as with Goddard Plossl later wrote that JIT is a concept whose time has come 20 Just in time TPS implementations may be found in many case study articles from the 1980s and beyond An article in a 1984 issue of Inc magazine 21 relates how Omark Industries chain saws ammunition log loaders etc emerged as an extensive just in time implementer under its US home grown name ZIPS zero inventory production system At Omark s mother plant in Portland Oregon after the work force had received 40 hours of ZIPS training they were turned loose and things began to happen A first step was to arbitrarily eliminate a week s lead time after which things ran smoother People asked that we try taking another week s worth out After that ZIPS spread throughout the plant s operations like an amoeba The article also notes that Omark s 20 other plants were similarly engaged in ZIPS beginning with pilot projects For example at one of Omark s smaller plants making drill bits in Mesabi Minnesota large size drill inventory was cut by 92 productivity increased by 30 scrap and rework dropped 20 and lead time from order to finished product was slashed from three weeks to three days The Inc article states that companies using just in time the most extensively include the Big Four Hewlett Packard Motorola Westinghouse Electric General Electric Deere amp Company and Black and Decker citation needed By 1986 a case study book on just in time in the U S 22 was able to devote a full chapter to ZIPS at Omark along with two chapters on just in time at several Hewlett Packard plants and single chapters for Harley Davidson John Deere IBM Raleigh North Carolina and California based Apple Inc a Toyota truck bed plant and New United Motor Manufacturing joint venture between Toyota and General Motors citation needed Two similar contemporaneous books from the U K are more international in scope 23 One of the books with both conceptual articles and case studies includes three sections on just in time practices in Japan e g at Toyota Mazda and Tokagawa Electric in Europe jmg Bostrom Lucas Electric Cummins Engine IBM 3M Datasolve Ltd Renault Massey Ferguson and in the US and Australia Repco Manufacturing Australia Xerox Computer and two on Hewlett Packard The second book reporting on what was billed as the First International Conference on just in time manufacturing 24 includes case studies in three companies Repco Australia IBM UK and 3M UK In addition a day two keynote address discussed just in time as applied across all disciplines from accounting and systems to design and production 24 J1 J9 Rebranding as lean edit John Krafcik coined the term Lean in his 1988 article Triumph of the Lean Production System 25 The article states a Lean manufacturing plants have higher levels of productivity quality than non Lean and b The level of plant technology seems to have little effect on operating performance page 51 According to the article risks with implementing Lean can be reduced by developing a well trained flexible workforce product designs that are easy to build with high quality and a supportive high performance supplier network page 51 Middle era and to the present edit Three more books which include just in time implementations were published in 1993 26 1995 27 and 1996 28 which are start up years of the lean manufacturing lean management movement that was launched in 1990 with publication of the book The Machine That Changed the World 29 That one along with other books articles and case studies on lean were supplanting just in time terminology in the 1990s and beyond The same period saw the rise of books and articles with similar concepts and methodologies but with alternative names including cycle time management 30 time based competition 31 quick response manufacturing 32 flow 33 and pull based production systems 34 There is more to just in time than its usual manufacturing centered explication Inasmuch as manufacturing ends with order fulfillment to distributors retailers and end users and also includes remanufacturing repair and warranty claims just in time s concepts and methods have application downstream from manufacturing itself A 1993 book on world class distribution logistics discusses kanban links from factories onward 35 And a manufacturer to retailer model developed in the U S in the 1980s referred to as quick response 36 has morphed over time to what is called fast fashion 37 38 Methodology editThe strategic elements of lean can be quite complex and comprise multiple elements Four different notions of lean have been identified 39 Lean as a fixed state or goal being lean Lean as a continuous change process becoming lean Lean as a set of tools or methods doing lean toolbox lean Lean as a philosophy lean thinking The other way to avoid market risk and control the supply efficiently is to cut down in stock P amp G has completed their goal to co operate with Walmart and other wholesales companies by building the response system of stocks directly to the suppliers companies 40 In 1999 Spear and Bowen 41 identified four rules which characterize the Toyota DNA All work shall be highly specified as to content sequence timing and outcome Every customer supplier connection must be direct and there must be an unambiguous yes or no way to send requests and receive responses The pathway for every product and service must be simple and direct Any improvement must be made in accordance with the scientific method under the guidance of a teacher at the lowest possible level in the organization This is a fundamentally different approach from most improvement methodologies and requires more persistence than basic application of the tools which may partially account for its lack of popularity 42 The implementation of smooth flow exposes quality problems that already existed and waste reduction then happens as a natural consequence a system wide perspective rather focusing directly upon the wasteful practices themselves Takt time is the rate at which products need to be produced to meet customer demand The JIT system is designed to produce products at the rate of takt time which ensures that products are produced just in time to meet customer demand 43 Sepheri provides a list of methodologies of just in time manufacturing that are important but not exhaustive 44 Housekeeping physical organization and discipline Make it right the first time elimination of defects Setup reduction flexible changeover approaches Lot sizes of one the ultimate lot size and flexibility Uniform plant load leveling as a control mechanism Balanced flow organizing flow scheduling throughput Skill diversification multi functional workers Control by visibility communication media for activity Preventive maintenance flawless running no defects Fitness for use producibility design for process Compact plant layout product oriented design Streamlining movements smoothing materials handling Supplier networks extensions of the factory Worker involvement small group improvement activities Cellular manufacturing production methods for flow Pull system signal kanban replenishment resupply systems Key principles and waste edit Womack and Jones define Lean as a way to do more and more with less and less less human effort less equipment less time and less space while coming closer and closer to providing customers exactly what they want and then translate this into five key principles 45 Value Specify the value desired by the customer Form a team for each product to stick with that product during its entire production cycle Enter into a dialogue with the customer e g Voice of the customer The Value Stream Identify the value stream for each product providing that value and challenge all of the wasted steps generally nine out of ten currently necessary to provide it Flow Make the product flow continuously through the remaining value added steps Pull Introduce pull between all steps where continuous flow is possible Perfection Manage toward perfection so that the number of steps and the amount of time and information needed to serve the customer continually fallsLean is founded on the concept of continuous and incremental improvements on product and process while eliminating redundant activities The value of adding activities are simply only those things the customer is willing to pay for everything else is waste and should be eliminated simplified reduced or integrated 46 On principle 2 waste see seven basic waste types under The Toyota Way Additional waste types are Faulty goods manufacturing of goods or services that do not meet customer demand or specifications Womack et al 2003 See Lean services Waste of skills Six Sigma Under utilizing capabilities Six Sigma Delegating tasks with inadequate training Six Sigma Metrics working to the wrong metrics or no metrics Mika Geoffrey 1999 Participation not utilizing workers by not allowing them to contribute ideas and suggestions and be part of Participative Management Mika Geoffrey 1999 Computers improper use of computers not having the proper software training on use and time spent surfing playing games or just wasting time Mika Geoffrey 1999 47 Implementation edit One paper suggests that an organization implementing Lean needs its own Lean plan as developed by the Lean Leadership This should enable Lean teams to provide suggestions for their managers who then makes the actual decisions about what to implement Coaching is recommended when an organization starts off with Lean to impart knowledge and skills to shop floor staff Improvement metrics are required for informed decision making 48 Lean philosophy and culture is as important as tools and methodologies Management should not decide on solutions without understanding the true problem by consulting shop floor personnel 49 The solution to a specific problem for a specific company may not have generalized application The solution must fit the problem 50 Value stream mapping VSM and 5S are the most common approaches companies take on their first steps to Lean Lean can be focused on specific processes or cover the entire supply chain Front line workers should be involved in VSM activities Implementing a series of small improvements incrementally along the supply chain can bring forth enhanced productivity 51 Naming editAlternative terms for JIT manufacturing have been used Motorola s choice was short cycle manufacturing SCM 52 53 IBM s was continuous flow manufacturing CFM 54 55 and demand flow manufacturing DFM a term handed down from consultant John Constanza at his Institute of Technology in Colorado 56 Still another alternative was mentioned by Goddard who said that Toyota Production System is often mistakenly referred to as the Kanban System and pointed out that kanban is but one element of TPS as well as JIT production 17 11 The wide use of the term JIT manufacturing throughout the 1980s faded fast in the 1990s as the new term lean manufacturing became established 57 page needed 58 need quotation to verify as a more recent name for JIT 59 As just one testament to the commonality of the two terms Toyota production system TPS has been and is widely used as a synonym for both JIT and lean manufacturing 60 need quotation to verify 61 Objectives and benefits editObjectives and benefits of JIT manufacturing may be stated in two primary ways first in specific and quantitative terms via published case studies second general listings and discussion A case study summary from Daman Products in 1999 lists the following benefits reduced cycle times 97 setup times 50 lead times from 4 to 8 weeks to 5 to 10 days flow distance 90 This was achieved via four focused cellular factories pull scheduling kanban visual management and employee empowerment 62 Another study from NCR Dundee Scotland in 1998 a producer of make to order automated teller machines includes some of the same benefits while also focusing on JIT purchasing In switching to JIT over a weekend in 1998 eliminated buffer inventories reducing inventory from 47 days to 5 days flow time from 15 days to 2 days with 60 of purchased parts arriving JIT and 77 going dock to line and suppliers reduced from 480 to 165 63 Hewlett Packard one of western industry s earliest JIT implementers provides a set of four case studies from four H P divisions during the mid 1980s 64 The four divisions Greeley Fort Collins Computer Systems and Vancouver employed some but not all of the same measures At the time about half of H P s 52 divisions had adopted JIT Greeley Fort Collins Computer Systems VancouverInventory reduction 2 8 months 75 75 Labor cost reduction 30 15 50 Space reduction 50 30 33 40 WIP stock reduction 22 days to 1 dayProduction increase 100 Quality improvement 30 scrap 79 rework 80 scrap 30 scrap amp reworkThroughput time reduction 50 17 days to 30 hoursStandard hours reduction 50 No of shipments increase 20 Use in other sectors editMain articles lean services lean dynamics lean higher education lean product development lean Six Sigma lean software development lean thinking and lean CFP driven Lean principles have been successfully applied to various sectors and services such as call centers and healthcare In the former lean s waste reduction practices have been used to reduce handle time within and between agent variation accent barriers as well as attain near perfect process adherence 65 need quotation to verify In the latter several hospitals have adopted the idea of lean hospital a concept that prioritizes the patient thus increasing the employee commitment and motivation as well as boosting medical quality and cost effectiveness 66 need quotation to verify Lean principles also have applications to software development and maintenance as well as other sectors of information technology IT 67 More generally the use of lean in information technology has become known as Lean IT citation needed Lean methods are also applicable to the public sector but most results have been achieved using a much more restricted range of techniques than lean provides 68 page needed The challenge in moving lean to services is the lack of widely available reference implementations to allow people to see how directly applying lean manufacturing tools and practices can work and the impact it does have This makes it more difficult to build the level of belief seen as necessary for strong implementation However some research does relate widely recognized examples of success in retail and even airlines to the underlying principles of lean 69 Despite this it remains the case that the direct manufacturing examples of techniques or tools need to be better translated into a service context to support the more prominent approaches of implementation which has not yet received the level of work or publicity that would give starting points for implementors The upshot of this is that each implementation often feels its way along as must the early industrial engineering practices of Toyota This places huge importance upon sponsorship to encourage and protect these experimental developments citation needed Lean management is nowadays implemented also in non manufacturing processes and administrative processes In non manufacturing processes is still huge potential for optimization and efficiency increase 70 Some people have advocated using STEM resources to teach children Lean thinking instead of computer science 71 Criticism editThis article s criticism or controversy section may compromise the article s neutrality Please help rewrite or integrate negative information to other sections through discussion on the talk page June 2021 According to Williams it becomes necessary to find suppliers that are close by or can supply materials quickly with limited advance notice When ordering small quantities of materials suppliers minimum order policies may pose a problem though 72 Employees are at risk of precarious work when employed by factories that utilize just in time and flexible production techniques A longitudinal study of US workers since 1970 indicates employers seeking to easily adjust their workforce in response to supply and demand conditions respond by creating more nonstandard work arrangements such as contracting and temporary work 73 Natural and human made disasters will disrupt the flow of energy goods and services The down stream customers of those goods and services will in turn not be able to produce their product or render their service because they were counting on incoming deliveries just in time and so have little or no inventory to work with The disruption to the economic system will cascade to some degree depending on the nature and severity of the original disaster and may create shortages 74 The larger the disaster the worse the effect on just in time failures Electrical power is the ultimate example of just in time delivery A severe geomagnetic storm could disrupt electrical power delivery for hours to years locally or even globally Lack of supplies on hand to repair the electrical system would have catastrophic effects 75 The COVID 19 pandemic has caused disruption in JIT practices with various quarantine restrictions on international trade and commercial activity in general interrupting supply while lacking stockpiles to handle the disruption along with increased demand for medical supplies like personal protective equipment PPE and ventilators and even panic buying including of various domestically manufactured and so less vulnerable products like panic buying of toilet paper disturbing regular demand This has led to suggestions that stockpiles and diversification of suppliers should be more heavily focused 76 77 78 79 Critics of Lean argue that this management method has significant drawbacks especially for the employees of companies operating under Lean Common criticism of Lean is that it fails to take into consideration the employee s safety and well being Lean manufacturing is associated with an increased level of stress among employees who have a small margin of error in their work environment which require perfection Lean also over focuses on cutting waste which may lead management to cut sectors of the company that are not essential to the company s short term productivity but are nevertheless important to the company s legacy Lean also over focuses on the present which hinders a company s plans for the future 80 Critics also make negative comparison of Lean and 19th century scientific management which had been fought by the labor movement and was considered obsolete by the 1930s Finally lean is criticized for lacking a standard methodology Lean is more a culture than a method and there is no standard lean production model 80 After years of success of Toyota s Lean Production the consolidation of supply chain networks has brought Toyota to the position of being the world s biggest carmaker in the rapid expansion In 2010 the crisis of safety related problems in Toyota made other carmakers that duplicated Toyota s supply chain system wary that the same recall issue might happen to them James Womack had warned Toyota that cooperating with single outsourced suppliers might bring unexpected problems 81 Lean manufacturing is different from lean enterprise Recent research reports the existence of several lean manufacturing processes but of few lean enterprises 82 One distinguishing feature opposes lean accounting and standard cost accounting For standard cost accounting SKUs are difficult to grasp SKUs include too much hypothesis and variance i e SKUs hold too much indeterminacy Manufacturing may want to consider moving away from traditional accounting and adopting lean accounting In using lean accounting one expected gain is activity based cost visibility i e measuring the direct and indirect costs at each step of an activity rather than traditional cost accounting that limits itself to labor and supplies citation needed See also editA3 problem solving Cellular manufacturing Computer aided lean management CONWIP Efficiency Movement Just In Case Kaizen Kanban Production flow analysis Takt timeNotes edit According to Kamarudin Abu Bakar Mohd Fazli Mohd Sam M I Qureshi 2022 Lean Manufacturing Design of a Two Sided Assembly Line Balancing Problem Work Cell in Mohd Najib Ali Mokhtar Zamberi Jamaludin Mohd Sanusi Abdul Aziz Mohd Nazmin Maslan Jeeferie Abd Razak eds Intelligent Manufacturing and Mechatronics Proceedings of SympoSIMM 2021 Springer Nature p 250 While Just In Time manufacturing focuses on efficiency of inventory strategy to eliminate waste and enhance productivity Lean manufacturing uses efficiency in its system setups to reduce cycle flow and throughput times being the added values to customers Ohno Taiichi 1988 Toyota Production System Beyond Large Scale Production CRC Press ISBN 978 0 915299 14 0 Shingo Shigeo 1985 A Revolution in Manufacturing The SMED System Stamford Ct Productivity Press Jonathan Law ed 2009 A Dictionary of Business and Management Oxford University Press Womack James P Jones Daniel T 2003 Lean Thinking Banish Waste And Create Wealth In Your Corporation Simon and Schuster p 10 ISBN 9781471111006 archived from the original on October 22 2021 retrieved October 2 2020 Womack James P Jones Daniel T Roos Daniel 1990 Machine that Changed the World New York Rawson Associates pp 13 15 ISBN 9780892563500 archived from the original on February 19 2022 retrieved October 2 2020 Plenert G 2007 Reinventing Lean Introducing Lean Management into the Supply Chain Oxford U K Butterworth Heinemann pp 41 42 Levinson William A 2016 Lean Management System LMS 2012 A Framework for Continual Lean Improvement CRC Press p 11 ISBN 9781466505384 Archived from the original on August 20 2021 Retrieved May 5 2019 Shingo Shigeo 1987 The Sayings of Shigeo Shingo Key Strategies for Plant Improvement Translated by Dillon Andrew P New York Productivity Press ISBN 0 915299 15 1 Archived from the original on February 19 2022 Retrieved October 2 2020 Shingo Shigeo 1985 A Revolution In Manufacturing The SMED System Portland Oregon Productivity Press ISBN 0 915299 03 8 Archived from the original on August 20 2021 Retrieved October 2 2020 Archived copy PDF Archived PDF from the original on September 4 2021 Retrieved June 1 2021 a href Template Cite web html title Template Cite web cite web a CS1 maint archived copy as title link Ashburn A 1977 Toyota s famous Ohno system American Machinist July 120 123 Sugimori Y Kusunoki K Cho F Uchikawa S 1977 Toyota Production System and Kanban System Materialization of Just in time and Respect for human System International Journal of Production Research 15 6 553 564 doi 10 1080 00207547708943149 ISSN 0020 7543 The Founding of the Association for Manufacturing Excellence Summarized at a Meeting of its Founders February 2 2001 PDF Target Association for Manufacturing Excellence 17 3 23 24 2001 Archived PDF from the original on March 9 2021 Retrieved June 1 2021 1980 At Bendix in Southfield MI the mood darkened John Kinsey Ken Wantuck Doc Larry and others at this meeting had been exposed to Japanese manufacturing While we dinked with MRP the Japanese were eating our lunch something more significant was needed Afterward Mac and Nick visited the APICS president to seek recognition as a special interest group of APICS We became the Repetitive Manufacturing Group RMG of APICS but to front the next workshop we opened our own bank account By APICS rules we weren t supposed to do that In October the Detroit APICS Chapter supported by several members of the Repetitive Manufacturing Group sponsored the first known conference in the United States on Japanese Manufacturing at Ford World Headquarters Auditorium The featured speaker was Fujio Cho now president of Toyota Landvater Darryl 1984 The rise and fall of just in time Infosystems November p 62 Goddard W 1982 Kanban versus MRP II which is best for you Modern Materials Handling November 5 1982 p 40 48 a b Goddard Walter E 1986 Just in Time Surviving by Breaking Tradition Essex Junction Vt Oliver Wight Ltd Plossl G W 1981 Japanese productivity myth vs reality P amp IM Review and APICS News September pp 59 62 Plossl G W 1984 The redirection of U S manufacturing P amp IM Review and APICS News November pp 50 53 Plossl G W 1986 J I T fad or fact of life P amp IM Review and APICS News February 1986 p 24 Walters C R 1984 Why everybody s talking about just in time Inc March 1 77 90 Sepehri Mehran 1986 Just in Time Not Just in Japan Case Studies of American Pioneers in JIT Implementation Falls Church Va American Production and Inventory Control Society Mortimer J 1986 Just in Time An Executive Briefing Kempston Bedford UK IFS Ltd a b Ingersoll Engineers 1986 Just in Time Manufacturing Proceedings of the First International Conference London UK April 8 9 1986 Archived copy PDF Archived PDF from the original on February 12 2020 Retrieved February 10 2020 a href Template Cite web html title Template Cite web cite web a CS1 maint archived copy as title link Schniederjans M J 1993 Topics in Just in Time Management Needham Heights Mass Allyn amp Bacon Jasinowski Jerry and Robert Hamrin 1995 Making It in America Proven Paths to Success from 50 Top Companies New York Simon amp Schuster Kinni T B 1996 America s Best Plants Industry Week s Guide to World Class Manufacturing Plants New York Wiley Womack James P Jones Daniel T and Roos Daniel 1990 The Machine That Changed the World The Story of Lean Production New York Rawson Associates Thomas P R 1991 Getting Competitive Middle Managers and the Cycle Time Ethic New York McGraw Hill Blackburn Joseph T 1991 Time based Competition The Next Battleground in American Manufacturing Homewood Ill Business One Irwin p 28 Suri R 1998 Quick Response Manufacturing A Companywide Approach to Reducing Lead Times Portland Ore Productivity Inc Hirano Hiroyuki and Makota Furuya 2006 JIT Is Flow Practice and Principles of Lean Manufacturing Vancouver Wash PCS Press Pettersen Jan Arne 2010 Pull Based Production Systems Performance Modeling and Analysis doctoral thesis Lulea Sweden Lulea University of Technology Harmon R L 1993 Reinventing the Warehouse World Class Distribution Logistics New York Free Press Lowson B R King and A Hunter 1999 Quick Response Managing the Supply Chain to Meet Consumer Demand Chichester UK Wiley Hines T 2001 From analogue to digital supply chains Implications for fashion marketing in Fashion Marketing Contemporary Issues eds T Hines and M Bruce Oxford Butterworth Heinemann 26 47 Hines T 2004 Supply Chain Strategies Customer Driven and Customer Focused Oxford UK Elsevier Pettersen J 2009 Defining lean production some conceptual and practical issues The TQM Journal 21 2 127 142 Shining examples Special report Logistics The Economist June 15 2006 Archived from the original on February 20 2018 Retrieved June 13 2017 Spear Steven Bowen H Kent September 1999 Decoding the DNA of the Toyota Production System Harvard Business Review Archived from the original on March 7 2016 Retrieved February 20 2013 Liker Jeffrey K and Michael Hoseus 2008 Toyota Culture The Heart and Soul of The Toyota Way McGraw Hill New York p 3 5 ISBN 978 0 07 149217 1 Jaiswal Vishal Just in Time JIT Principle Components Revolution Advantages amp Disadvantages Retrieved May 6 2023 Sepheri M p 277 full citation needed James P Womack Daniel T Jones Lean Thinking 2nd Edition ISBN 978 0 7432 4927 0 March 1 2003 D Rizzardo R Brooks Understanding Lean Manufacturing Maryland Technology Enterprise Institute 2003 Bicheno John Holweg Matthias 2009 The Lean Toolbox PICSIE ISBN 978 0 9541244 5 8 Dombrowski U Mielke T 2014 Lean Leadership 15 Rules for a Sustainable Lean Implementation Procedia CIRP 17 565 570 doi 10 1016 j procir 2014 01 146 Hopp Wallace Spearman Mark 2008 Factory Physics Foundations of Manufacturing Management 3rd ed McGraw Hill Companies Incorporated ISBN 978 0 07 282403 2 archived from the original on May 20 2019 retrieved January 5 2014 Pederson Joseph Author the business dude WordPress com Archived from the original on April 27 2014 Retrieved April 27 2014 Merrill Douglas June 2013 The Lean Supply Chain Watch Your Waste Line inboundlogistics Archived from the original on March 27 2019 Retrieved February 22 2017 Heard Ed 1987 Short cycle manufacturing the route to JIT Target 2 3 fall 22 24 High W 1987 Short cycle manufacturing SCM implementation an approach taken at Motorola Target 3 4 Winter 19 24 Barkman William E 1989 In Process Quality Control for Manufacturing Boca Raton Fl CRC Press Bowers G H Jr 1991 Continuous flow manufacturing Proc SPIE1496 10th Annual Symposium on Microlithography March 1 1991 239 246 Roebuck Kevin 2011 Business Process Modeling High impact Emerging Technology What You Need to Know Definitions Adoptions Impact Benefits Maturity Vendors Tebbo p 32 Womack James P Jones Daniel T Roos Daniel 2007 The Machine That Changed the World The Story of Lean Production Simon and Schuster ISBN 9781416554523 Archived from the original on June 2 2021 Retrieved May 24 2017 Black J Temple Hunter Steve L 2003 Lean Manufacturing Systems and Cell Design Society of Manufacturing Engineers p 41 ISBN 9780872636477 Archived from the original on June 2 2021 Retrieved June 1 2021 a href Template Cite book html title Template Cite book cite book a CS1 maint multiple names authors list link Hyer Nancy Wemmerlov Urban 2001 Reorganizing the Factory Competing Through Cellular Manufacturing CRC Press p 41 ISBN 9781563272288 Archived from the original on June 2 2021 Retrieved June 1 2021 Lean manufacturing is a more recent name for JIT As with JIT lean manufacturing is deeply rooted in the automotive industry and focuses mostly on repetitive manufacturing situations Monden Yasuhiro ed 1986 Applying Just in Time The American Japanese Experience Norcross Ga Institute of Industrial Engineers This collection of JIT articles includes multiple references to TPS Womack J P and D Jones 2003 Lean Thinking Banish Waste and Create Wealth in Your Corporation Revised New York Free Press Numerous references to both lean and TPS Grahovec D and Bernie Ducan Jerry Stevenson Colin Noone 1999 How lean focused factories enabled Daman to regain responsiveness and become more agile Target 4th quarter pp 47 51 Caulkin Simon 1990 Britain s best factories Management Today November 60 89 Simpson Alex Effective just in time manufacture at Hewlett Packard In Mortimer 1986 pp 123 128 Adsit Dennis June 11 2007 Cutting Edge Methods Help Target Real Call Center Waste iSixSigma com Archived from the original on April 14 2008 Alkalay M Angerer A Drews T Jaggi C Kampfer M Lenherr I Valentin J Vetterli C Walker D 2015 Walker Daniel ed The Better Hospital Excellence Through Leadership And Innovation Medizinisch Wissenschaftliche verlagsgesellschaft ISBN 9783954662241 Hanna Julia Bringing Lean Principles to Service Industries Archived August 1 2015 at the Wayback Machine HBS Working Knowledge October 22 2007 Summary article based on published research of Professor David Upton of Harvard Business School and doctoral student Bradley Staats Staats Bradley R and David M Upton Lean Principles Learning and Software Production Evidence from Indian Software Services Harvard Business School Working Paper No 08 001 July 2007 Revised July 2008 March 2009 Radnor Zoe Walley Paul Stephens Andrew Bucci Giovanni 2006 Evaluation of the Lean Approach to Business Management and ITs Use in the Public Sector PDF Scottish Executive Social Research ISBN 0755960564 Archived PDF from the original on January 28 2018 Retrieved June 13 2017 Ruffa Stephen A 2008 Going Lean How the Best Companies Apply Lean Manufacturing Principles to Shatter Uncertainty Drive Innovation and Maximize Profits AMACOM ISBN 978 0 8144 1057 8 Archived from the original on March 2 2017 Retrieved September 24 2016 JANUSKA M STASTNA L Industrial Engineering in the Non Manufacturing Processes In Proceedings of the 22nd International Business Information Management Association Conference neuveden International Business Information Management Association IBIMA 2013 s 747 766 ISBN 978 0 9860419 1 4 We need to teach our kids to think Lean Opinion February 3 2022 Williams John T Pros amp Cons of the JIT Inventory System Houston Chronicle Archived from the original on June 3 2021 Retrieved June 1 2021 Supply chain relationships require retooling that involves multiple suppliers closer locations or companies that can supply materials with little advance notice Companies ordering smaller amounts of goods may encounter difficulty meeting minimum orders requiring a different contract or a way to break up a large order over time or among several smaller manufacturers L Kalleberg A 2009 Precarious Work Insecure Workers Employment Relations in Transition American Sociological Review 74 1 1 22 CiteSeerX 10 1 1 1030 231 doi 10 1177 000312240907400101 ISSN 0003 1224 S2CID 29915373 Archived from the original on August 19 2021 Retrieved June 1 2021 a href Template Cite journal html title Template Cite journal cite journal a CS1 maint multiple names authors list link Krolicki Nick Carey Noel Randewich Kevin March 21 2011 Special Report Disasters show flaws in just in time production Reuters Archived from the original on June 2 2021 Retrieved June 1 2021 via www reuters com a href Template Cite news html title Template Cite news cite news a CS1 maint multiple names authors list link Severe Space Weather Social and Economic Impacts Science Mission Directorate science nasa gov Archived from the original on June 2 2021 Retrieved June 1 2021 Just in time economy out of time as pandemic exposes fatal flaws www abc net au May 1 2020 Archived from the original on May 20 2020 Retrieved May 21 2020 Companies should shift from just in time to just in case Financial Times April 22 2020 Archived from the original on May 4 2020 Retrieved May 21 2020 Evans Dave Coronavirus Shows That Supply Chains are Outdated and Unfit For Modern Manufacturing Forbes Archived from the original on July 22 2020 Retrieved May 21 2020 Skidelky Robert April 22 2020 The coronavirus pandemic shows why the West must transform its economic logic newstatesman Archived from the original on June 2 2021 Retrieved September 30 2020 a b What Is the Criticism of Lean Manufacturing www brighthubpm com February 8 2011 Archived from the original on August 15 2020 Retrieved May 20 2020 The Economist 2010 Toyota s overstretched supply chain The machine that ran too hot The woes of the world s biggest carmaker are a warning for rivals Nash Hoff Michele November 14 2014 Why Lean Manufacturers Are Not Lean Enterprises Industryweek com Archived from the original on March 27 2019 Retrieved May 1 2015 References editAnderson Barry ed 2012 Building Cars in Australia Morris Austin BMC and Leyland 1950 1976 Sydney Halstead Press Billesbach Thomas J 1987 Applicability of Just in Time Techniques in the Administrative Area Doctoral dissertation University of Nebraska Ann Arbor Mich University Microfilms International Goddard W E 2001 JIT TQC identifying and solving problems Proceedings of the 20th Electrical Electronics Insulation Conference Boston October 7 10 88 91 Goldratt Eliyahu M and Fox Robert E 1986 The Race North River Press ISBN 0 88427 062 9 Hall Robert W 1983 Zero Inventories Homewood Ill Dow Jones Irwin Hall Robert W 1987 Attaining Manufacturing Excellence Just in Time Total Quality Total People Involvement Homewood Ill Dow Jones Irwin Hay Edward J 1988 The Just in Time Breakthrough Implementing the New Manufacturing Basics New York Wiley Hohner Gregory 1988 JIT TQC integrating product design with shop floor effectiveness Industrial Engineering 20 9 42 48 Hum Sin Hoon 1991 Industrial progress and the strategic significance of JIT and TQC for developing countries International Journal of Operations amp Production Management 110 5 39 46 doi 10 1108 01443579110145320 Hyer Nancy Wemmerlov Urban 2001 Reorganizing the Factory Competing Through Cellular Manufacturing CRC Press ISBN 9781563272288 Jackson Paul 1991 White collar JIT at Security Pacific Target 7 1 32 37 Ker J I Wang Y Hajli M N Song J Ker C W 2014 Deploying Lean in Healthcare Evaluating Information Technology Effectiveness in US Hospital Pharmacies Lubben R T 1988 Just in Time Manufacturing An Aggressive Manufacturing Strategy New York McGraw Hill MacInnes Richard L 2002 The Lean Enterprise Memory Jogger Mika Geoffrey L 1999 Kaizen Event Implementation Manual Monden Yasuhiro 1982 Toyota Production System Norcross Ga Institute of Industrial Engineers Ohno Taiichi 1988 Toyota Production System Beyond Large Scale Production Productivity Press ISBN 0 915299 14 3 Ohno Taiichi 1988 Just In Time for Today and Tomorrow Productivity Press ISBN 0 915299 20 8 Page Julian 2003 Implementing Lean Manufacturing Techniques Schonberger Richard J 1982 Japanese Manufacturing Techniques Nine Hidden Lessons in Simplicity New York Free Press Shingo Shingeo Dillon Andrew P 1989 A Study of the Toyota Production System From an Industrial Engineering Viewpoint CRC Press ISBN 9780915299171 Suri R 1986 Getting from just in case to just in time insights from a simple model 6 3 295 304 Suzaki Kyoshi 1993 The New Shop Floor Management Empowering People for Continuous Improvement New York Free Press Voss Chris and David Clutterbuck 1989 Just in Time A Global Status Report UK IFS Publications Wadell William and Bodek Norman 2005 The Rebirth of American Industry PCS Press ISBN 0 9712436 3 8 Womack James P Jones Daniel T 2003 Lean Thinking Banish Waste and Create Wealth in Your Corporation Simon and Schuster ISBN 9781471111006 Archived from the original on October 22 2021 Retrieved October 2 2020 Womack James P Jones Daniel T Roos Daniel 1990 The Machine that Changed the World New York Rawson Associates ISBN 9780892563500 Archived from the original on February 19 2022 Retrieved October 2 2020 External links edit nbsp Wikimedia Commons has media related to Lean manufacturing Lean Enterprise Institute Retrieved from https en wikipedia org w index php title Lean manufacturing amp oldid 1206522672, wikipedia, wiki, book, books, library,

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