Lean Thinking: a Product of a Century

Hadassah May R. Cordero

ABSTRACT Lean thinking is a product of a centurys worth of mans search for perfection. However, even if its effectiveness in practice has been proven by several companies especially Toyota, many still do not embrace it. The pursuit of lean demands firm conviction and total dedication from the company. For its successful implementation, first of all there must be unity in mindset and vision from the top executives down to the ordinary worker. Furthermore, that mindset that the members should have must be that of continuous improvement, of never being contented with mediocrity. Keywords: Lean Thinking, continuous improvement, Toyota, waste, value I. Introduction Lean thinking as it is known today is not an idea that was created overnight. It is a product of history in which the passion of persons such as Taichi Ohno drove them to develop practices that aim to bring the manufacturing industry to the next level. In its very essence, the primary objective of lean is to eliminate waste in processes. a. Objectives

The objective of this paper is to present how lean has evolved throughout the centuriesfrom the early craft production to the mass production period. b. Scope This paper covers the historical evolution of lean as well as the key persons involved. The basic elements were discussed but not in-depth. II. Approach of Review The methodology of this literature review is primarily historical. This approach was used because it provides a clearer and more concise presentation of the evolution of Lean Systems. From what would be presented later, it can be seen that the starting point is not the 1900s, in which century Lean System was formally defined and implemented, but in the 1500s, in which a system of Flow production is already in place. III. Historical Systems Evolution of Lean

The Lean Production System as it is known today can be said to have evolved from craft production and mass production. However, even before 1880s, in which the craft production is at its height, and in the 1910s, when mass production took the centerstage

in the manufacturing industry, the machineries or the manufacturing elements that would later be crucial in the realization of lean was already underway. In the 1500s, the early appearance of flow production, where single, standardized, and identical items, flow through an assembly line can already be seen in the Venetian Arsenal in the production of their boats under the watchful eye of King Henry III. This is a glimpse of what would later be the characteristic of flow in the Lean Production System as defined in the book Lean Thinking by Womack and Jones (1996) ; that is, the progressive achievement of tasks along the value stream so that a product proceeds from design to launch, order to delivery, and raw materials in to the hands of the customer with no stoppages, scrap, or backflows (p. 306). Then, around the 1780s the concept of interchangeable parts which would later be very significant in the mass production system of Ford was pioneered in the French Army Ordinance through the French general Jean-Baptiste de Gribeauval. As in Fords automobile, the idea for interchangeable parts was realized when they saw that there is a need to properly facilitate battlefield repairs. Automatic production of parts followed thereafter. In 1799, production for simple parts was done through the devises made by Marc Brunel. However, it was not until more than 20 years later that the complex parts automatic production became possible through Thomas Blanchards efforts. In Blanchards prototype production

process, the parts are moved around the room with several machines. This resembles the cell in the High-Variety JIT Production. Each cell is a miniproduction line, almost a pipeline that similar parts flow through (p.10, Schonberger, 1986) the approach is called group technology or cellular manufacturing. In the 1860s, it was thought that high volume interchangeable parts manufacturing was already achieved and fully implemented at Samuel Colts Armory. However, it was then found out that the regular sale pistols dont have the interchangeable parts quality as the pistols used for sales promotion. This problem troubled industrialist for decades hereafter. The 1880s saw the innovation of the moving disassembly line. These assembly lines used conveyors, and they were first used in meat packaging plants. The 1890s saw the growth scientific management having Frederick Taylor as its main proponent. Taylor, instead of just focusing on the assembly line or the manufacturing part of the plant, also took the liberty to tinker on wages, production paths, and cost accounting. His methods influenced the basic management tools of mass production. Jidoka, Sakichi Toyodas brainchild, was invented in 1902. This is an automated quality control device which automatically stops production of defective cloth if there are already broken threads in the looms.

The late 1800s was also the golden years of craft production as it was applied in the automobile industry. (Note that the automobile industry has a special place in the evolution of the production systems because the turn of the century also saw the great demand for automobiles). It was the European brands who were then the leaders in the industry. Craft production, in a glimpse, is a made to order system. The customers, mostly members of the nobility or commoners belonging to the upper class, would specify the features and characteristics of the car that they want. After having an idea of the cars specifications, the firm would then contact the craft shops to produce the different parts. The role of the firm in this type of production system is not as a manufacturer in the sense that it is understood today, but more of an assembler of parts. The problem with this type of system, other than the high cost, is the elusiveness of consistency and reliability checks, as well as the inability of specialized craftsmen to develop new technologies. The challenges encountered in craft production in Europe inspired Fords founder, Henry Ford, to have a full and faithful implementation of flow production and the assembly line. The secret of mass production is not the assembly line per se, but the complete and consistent interchangeability of parts (an innovation that was already used in the production of The Model T in 1908) and the simplicity and ease of attaching them to each other. Also, the skilled fitters who played important

roles in the craft production system were eliminated. As what is practiced in Fords factory, it can be said that what he had done is the use of division of labor to its ultimate extreme. However, it was not only until 1926, that the system done by Ford in his company was defined and given a name- mass production. In 1937, the system or policy that is one of the best characteristic of the lean production system was thought of by Kiichiro Toyoda as he established the Toyota Motor Company. This system is called the Just-in-Time system or the JIT. However, the system was not yet effectively implemented at that time due to problems in production and in supplier relations. The 1930s was also the decade when the Takt Time was used extensively by German aircraft-industry pioneers and the Walter Shewhart established Statistical Methods. The Takt time system ensures that the cycle time of work done in each station is regulated such that it would be precisely below the takt time. From Germany, the technology was introduced to Japan by Mitsubishi and then later on adapted by Toyota. On the other hand, the book published by Shewhart, dealt primarily on statistics as it is applied in quality control in production systems in industries. This is also where the improvement cycle Plan-Do-Study-Act was introduced. During World War II, certain methods of training for employees within the industry were widely implemented by the US Department of War, and after

the war, these were then introduced into the Japanese industries; one of these trainings focused on statistical process control techniques and sampling methods. In the 1950s Kanban implementation, as inspired by the supermarket system, was implemented by Taichi Ohno. In the next decade, the Toyota Motor Company created a new management system that uses lean system principles in their leadership, production operations, product and process development, etc. It was also in the 1960s that the Deming Prize was inaugurated in Japan to promote the practice of using statistical quality control in the industry. In 1973, the first internal Toyota Production Manual was created by Sugimori, Cho, and Ohno. This manual was then published in a UK engineering journal in 1977 for the world to know the logic behind the system. However, it was only in 1982 that a full description of the TPS became available to the global audience through Yasuhiro Mondens book Toyota Production System. The year 1984 was a breakthrough for the TPS since it is the first time that TPS would be implemented outside the Japanese environment. This venture was a joint project between Toyota and General Motors and was named New United Motors Manufacturing. The 90s saw the publication of some of the books that best explain the Lean system: The Machine that Changed the World (1990) and Lean Thinking (1996), both by Jim Womack and Dan Jones.

And in the recent past, in 2007, the effectiveness of Lean was proven when Toyota passed General Motors as the worlds largest motor vehicle manufacturer and as the most successful company in the past 50 years. Furthermore, as a result of the interest of many companies and executives for the past decades, the Lean Global Network was established for the continuous promotion of lean thinking. IV. Discussions of Results Lean Production is a system that can be best described by its objective to minimize the use of resources, with an emphasis on eliminating waste or muda. There are five basic principles in lean: value, value stream, flow, pull, and continuous improvement. In the lean system, the voice of the customer is considered to be very important. It is vital for an organization that aspires to be lean to first assess their definition of value. Value must be specified according to the customers criteria. The old practice involves the use of internal measures to assess factory performance. However, according to Schonberger in World Class Manufacturing, a world-class manufacturer is one that fulfils the customers demands for high quality, low cost, short lead times, and flexibility. From this, it can be seen that there has been a shift of focus from internal measures to customeroriented measures. The next step involves defining value in terms of the whole product because there is a tendency for different departments

involves in the manufacturing process to define value differently- each in their own terms. Lastly, the target cost, that is the amount of resources required to make the product on the assumption that all apparent waste is eliminated, must be set so as to have a concrete ideal goal in waste elimination during the manufacturing process. According to Lean Thinking by Womack and Jones, value stream is the set of all the specific actions required to bring a specific product through: problemsolving task, information management task, and the physical transformation task. The first step involved in this principle is the creation of the value stream map. The map categorizes the actions needed to make a certain product into three: (1) those which create value, (2) those which do not create value but are necessary, and (3) those that do not create value- all of which are considered through the customers perspective. After the identification of value stream it is then necessary to create a flow system for the remaining value-creating processes. However, the concept of flow is counterintuitive to what has been the practice for decades. In the usual setting, before the introduction of lean, manufacturing of a product were done in batches going through different departments. The potential of flow was first realized by Henry Ford in 1913, but what his company had was a special case that is applicable only to high production companies. In the lean enterprise, good are made to flow through the application of both the Just-in-Time (JIT) system and level scheduling. Flow system has three

techniques: (1) focusing on the actual object (design, order, and the product itself) from the beginning to end of the whole process, (2) forming a lean enterprise that through the removal of all impediments to continuous flow, (3) rethinking of work practices and tools. The concept of pull basically means, according to Womack and Jones, that no good or services should be produced until the customer asks for it. In other words, the company manufactures only what has been consumed and what is immediately deliverable. One advantage of using the pull system is the standardization of inventory. This results to less waste in terms of cost and other resources that come with holding unnecessary stocks. The principles of lean thinking that we have now discussed would be of not much use if the goal, that is perfection, is not pursued. For the whole enterprise to be successful, each person, especially managers involved in the production process must think of executing the perfect steps. Furthermore, the company must have a continuous improvement mentality that should motivate them to always find ways to improve their production process. V. Reflections Looking through the history of lean thinking has been both informative and meaningful. If I were to enumerate the three things that have made an impact on me, it would be these. Not in the name of efficiency

First of all, given a non-IE undergrad, the concept of lean was very much new to me. The first time that I heard about it I had a misconception that the application of lean thinking to a company would compromise the jobs of its employees. I thought that as the company pushes forward to efficiency many people would be out of work. However, as I soon realized, the objective of lean for greater efficiency in its processes brings more jobs instead of eliminating it. Human touch in certain jobs may not be needed anymore due to introduction and use of technology, but the people involved in handling them will instead be given other jobs that are more apt to their abilities. In this way, not only have efficiency is achieved, but the full use of human potential as well. Three is the way For a company to become a lean enterprise, it needs to embrace several elements. However, the three things that I found to be important are: simplicity, flexibility, and unity. Simplicity is the mentality that I think a company needs to realize value in terms of the customers perspective. Based on the examples in the books, companies have the tendency to put much effort in doing things that they think would make their product or services better, without considering if those are what the customer really needs. This wrong mindset most of the time results to loss in profit due to dissatisfaction of customers. Thus, a company must think in simple terms; that is, define value in terms of those who will use it.

Flexibility means that a company is open to suggestions and to possible reorganization. This trait is important because continuous improvement is one of the core elements of lean. The moment that a company thinks that its current practices and facilities are already enough, then it would be no time before it succumbs to mediocrity. However, flexibility doesnt mean instability. An organization must be able to balance flexibility with firmness in terms of always upholding the key values for which it stands and the reason for which it was created. The two previous traits discussed would be useless if the new definition wouldnt be put into practice and if the whole operation of a company does not subscribe to it. Thus, it is important that each person in the organization shares the vision of lean. A house divided cannot stand. In the same way, an organization having members looking to different directions would not be successful in the long run. Up until now, lean is not yet embraced by many companies. The mindset of many may still be much influenced by the principles found in mass production and craft production. Thus, it is vital that for unity to be achieved, principles of lean are properly explained. Perfection The evolution of lean thinking is a testament to mans continual search for perfection. Its history shows us how men have the natural inclination to look for what is better. Thus, the emphasis of lean on aiming for perfection is not counterintuitive to

human nature. Even if total perfection is an ideal that will only be achieved in a perfect environment that does not exist in the real world, having perfection in mind will lead a company to that state wherein defects and waste in production is asymptotic to null. VI. Conclusion Embracing lean thinking is a serious challenge for any organization. Though it has evolved gradually, the mindset that it wants to create is very much novel. First, the company, along with all its employees from the top management to the ordinary worker, must have continual improvement and perfection in mind. Then, it must have the skills, conviction, and dedication to pursue change brought about by lean; sometimes drastic measures may be done along with this. Lastly, the company must have sustainable development. It must assure that lean thinking would still be in place even if changes in management will happen. VII. References
Factory Strategies Group LLC. (n.d.). LEAN MANUFACTURING HISTORY & TIMELINE. Retrieved July 2013, from Superfactory: http://www.superfactory.com/con tent/timeline.html Hopp, W., & Spearman, M. (2008). Factory Physics. New York: McGraw-Hill/Irwin/Irwin. Lean Enterprise Institute, Inc. . (2009). Lean Timeline. Retrieved July 2013, from Lean Enterprise Institute:

http://www.lean.org/WhatsLean/ Timeline.cfm Schonberger, R. (1982). Japanese Manufacturing Techniques: Nine Hidden Lessons in Simplicity . New York: The Free Press. A Division of MacMillan Publishing Co., Inc. Schonberger, R. (1986). World Class Manufacturing : The Lessons of Simplicity Applied. New York: The Free Press COLLIER MACMILLAN. Womack, J., & D., J. (1996). Lean Thinking : Banish Waste and Create Wealth in Your Corporation. New York: Simon & Schuster. Womack, J., Jones, D., & Roos, D. (2007). The Machine That Changed the World: The Story of Lean Production : How Japan s Secret weapon in the Global Auto Wars Will Revolutionize the Western Industry . London: Simon & Schuster Ltd.

Factory Strategies Group LLC. (n.d.). LEAN MANUFACTURING HISTORY & TIMELINE. Retrieved July 2013, from Superfactory: http://www.superfactory.com/con tent/timeline.html Lean Enterprise Institute, Inc. . (2009). Lean Timeline. Retrieved July 2013, from Lean Enterprise Institute: http://www.lean.org/WhatsLean/ Timeline.cfm