Overview:
Lean thinking is the name given by Western academics to the Toyota
Production System. It is acknowledged by many as the source of competitive
advantage of Toyota. Lean Thinking came to the West following an US
study that resulted in the publication of “The Machine that
Changed the World” in 1990.
Lean Thinking has two main themes: it is customer driven and there
is a focus on waste reduction.
Lean Thinking is often defined as a four-step process where:
- Top Level Commitment- towards a mid-to long term vision (with
budget)
- Process and Procedures - check for waste and ineffectiveness
- Respect for People - develop the workforce and encourage
innovation at work
- Continuous Improvement - waste reduction, process improvement
Lean Thinking is now moving beyond manufacturing to construction,
customer service, financial services, supply chains and the public
sector.
The popularity of Lean Thinking (“... 30% cost savings!”)
has resulted in a plethora of acronyms (much to the delight of consultants)
as well as jargon that uses Japanese terms (“Type 1 muda” -
or “waste” to you and me).
Lean Thinking actually comprises quite a bit common sense -
- If the workplace is tidy and neat, you are more likely to
spot problems early.
- Go to where the problem is, instead of trying to solve it
sitting in the office.
- If you respect your workforce, they will repay this with
innovations.
- When you are driven by customer demands, you will not produce
stuff nobody wants to buy (This assumes your customer knows the market).
Lean Thinking has a large range of tools now familiar to many in industry,
including:
- Just-in-Time / Kanban
- Kaizen (Continuous Improvement)
- 5S / 5C / CAN DO - workplace organisation
Poke-Yoke (Fool proofing by design / Designing out problems)
- Visual Management - systems that highlight problems visually
(empty box = no stock)
- Andon - a stop/go light system in manufacturing
- SMED (Single Minute Exchange of Die) - moving from one product
to another on the same production line with minimal delays and defects
- Value Stream Analysis - a system analysis tool where the
value-added can be shown from raw materials to finished products
Origins:
The Toyota Production System (TPS) was invented by Toyota in the late
1940's to enable it to compete with General Motors and Ford. It took
Toyota several decades to develop the entire suite of tools.
“Lean Thinking” was coined by Womack and Jones in their
1996 book entitled “Lean Thinking”. It is
also called Lean Manufacturing, Lean Processes, Lean
Operations and Lean Enterprise.
Deploying Lean Thinking:
To maximise the benefits of Lean Thinking, the commitment needs to
be total. It is a long haul (it took Toyota several decades, remember).
Short term commitment to Lean Thinking usually involves deploying
tools like 5S or some form of Kaizen. These all deliver results but
are unlikely to deliver sustainable cost savings and quality improvements
unless they are backed with top level commitment, staff training
and development.
Issues about Lean Thinking:
Lean Thinking is occasionally contentious because it can result in
reducing staff numbers when the processes are improved. Theoretically,
the surplus labour should be retrained and redeployed to jobs but
often, employers are glad to be rid of the surplus workforce.
Occasionally, the Lean mantra of minimal inventory (save money, save
storage space etc) can be counterproductive. After the Kansai earthquake
in Japan (1995), Toyota found that some of its suppliers could no longer
deliver parts in the Just-in-Time system. Toyota was so “lean” that
it did not have additional suppliers and the factories had to shut
down for a considerable period of time.
Resources:
The Lean Enterprise Institute
The Lean Enterprise
Academy
Ohno, T., The Toyota Production System, Productivity Press 1988
Womack, J., Jones, D. & Roos, D., The Machine that Changed the
World, Macmillan 1990
Womack, J. & Jones, D, Lean Thinking, Simon & Shuster, 2003
Liker, J., The Toyota Way, McGraw-Hill, 2004 |
