The History of Lean
Summary
TLDRThis script delves into the history and fundamentals of lean thinking, emphasizing its evolution over centuries, not a fleeting trend. It highlights the contributions of Frederick Taylor, Ford Motor Company, and Toyota's Taiichi Ono in developing lean principles. The script underscores the importance of standard work, flow, reducing waste, and focusing on customer value. It also credits Dr. Deming for quality management and the books 'The Machine That Changed the World' and 'Lean Thinking' for consolidating lean concepts. Lean is presented as a business system fostering a learning culture that eliminates waste and adds value to customers.
Takeaways
- 📚 The importance of understanding the history of lean thinking is emphasized to avoid considering it as a passing trend and to recognize its long-term development.
- 🛠️ Frederick Taylor's 'Scientific Management' is identified as the starting point of lean fundamentals, introducing the concept of a 'best way' to do work, which is foundational to standard work.
- 🏭 Ford Motor Company's role in lean thinking is highlighted for pioneering manufacturing systems with interchangeable parts, leading to the creation of flow and optimal manufacturing processes.
- 🔄 The challenges of variety in the automobile industry led to the development of economic order quantity, which inadvertently resulted in overproduction and waste, contrary to customer demand.
- 🚫 The concept of overproduction as the 'grandfather of all waste' is introduced, as it leads to other forms of waste in the manufacturing process.
- 🌟 The Toyota Production System (TPS) is recognized for addressing the complexity of manufacturing variety without the waste associated with overproduction, building on Ford's principles.
- 👷 Taiichi Ohno's leadership in developing TPS is acknowledged, formalizing key lean concepts such as standard work, quality at the source, and error proofing.
- 🔄 The principle of 'Pull replenishment' in TPS is noted for its efficiency in responding to customer demand, reducing waste.
- 🏆 Dr. Deming's influence on lean thinking through quality management is recognized, emphasizing the importance of getting things right the first time to minimize waste.
- 📚 The consolidation of lean thinking is marked by the publication of 'The Machine That Changed the World' and 'Lean Thinking,' summarizing a century of operational excellence.
- 🌱 Lean thinking has evolved beyond manufacturing into a business system, promoting a learning culture that focuses on problem exposure and root cause solutions to eliminate waste.
- 🛑 The script concludes by reinforcing that lean is not a temporary fad but a consolidated body of knowledge aimed at delivering the highest value to customers at the lowest cost.
Q & A
Why is understanding the history of lean thinking important?
-Understanding the history of lean thinking is important to prevent team members from viewing lean as a passing fad and to appreciate its long-term development over centuries, which provides a solid foundation for current practices.
What is the significance of Frederick Taylor's work in the context of lean thinking?
-Frederick Taylor's work, particularly his book 'Scientific Management,' is significant because it introduced the concept of a 'best way' to do work, which laid the groundwork for standard work and continuous improvement in lean thinking.
How did Ford Motor Company contribute to lean thinking?
-Ford Motor Company contributed to lean thinking by engineering manufacturing systems based on interchangeable parts, which allowed for flow and inventory reduction, setting the stage for a waste-free manufacturing process.
What challenges did the automobile industry face as it progressed in the 20th century?
-As the automobile industry progressed, it faced challenges due to customer demand for variety and customization, which introduced complexity and changeovers in the manufacturing process.
What is the economic order quantity and why was it not an effective solution for managing complexity?
-The economic order quantity is a mathematical calculation for determining optimal batch sizes in manufacturing to minimize changeover costs. However, it was not effective because it led to the production of goods not necessarily aligned with customer demand, resulting in overproduction and waste.
How did Toyota Production System address the waste of overproduction?
-Toyota Production System addressed the waste of overproduction by developing methods to manufacture variety and handle complexity without incurring the waste associated with overproduction, focusing on flow, quality, and pull replenishment.
Who is Taiichi Ohno and what is his contribution to lean thinking?
-Taiichi Ohno is a famed engineer at Toyota who was a key figure in the development of the Toyota Production System. His contributions include formalizing concepts like standard work, quality at the source, and error proofing processes.
What is the significance of Dr. Deming's work in the history of lean thinking?
-Dr. Deming's work emphasized quality management, advocating that getting things right the first time is crucial to reducing waste. His philosophy has been integral to lean thinking's focus on quality and continuous improvement.
How did the books by Jim Womack and Dan Jones contribute to the understanding of lean thinking?
-Jim Womack and Dan Jones's books, 'The Machine That Changed the World' and 'Lean Thinking,' consolidated a century of operational excellence thinking into a cohesive framework, popularizing the term 'lean' and its principles.
Why is lean thinking not just a manufacturing concept but also a business system?
-Lean thinking is not just a manufacturing concept because it has evolved into a business system that emphasizes building a learning culture, exposing and solving problems at their root cause, and focusing on delivering the highest value to customers at the lowest cost.
What is the core principle of lean thinking in terms of customer value?
-The core principle of lean thinking in terms of customer value is to focus on what the customer perceives as valuable, eliminating all forms of waste in the process, and ensuring that the business system is designed to deliver this value efficiently.
Outlines
📚 The Evolution of Lean Thinking
This paragraph delves into the historical development of lean principles, emphasizing their long-standing evolution rather than being a recent trend. It highlights the significance of understanding lean's history to appreciate its depth and continuous improvement philosophy. Key contributors like Frederick Taylor and his 'Scientific Management' are mentioned, setting the stage for standard work and efficiency. The Ford Motor Company's role in creating manufacturing systems for flow and reducing waste is acknowledged, as is the challenge of managing variety and the resulting overproduction waste. The paragraph also introduces Taiichi Ohno and the Toyota Production System (TPS), which addressed the issue of overproduction and introduced concepts like standard work, quality at the source, and pull replenishment, all centered around customer value.
🌟 The Consolidation of Lean Thinking
The second paragraph discusses the consolidation of lean thinking in the late 20th century, particularly through the influential works of Jim Womack and Dan Jones, who authored 'The Machine That Changed the World' and 'Lean Thinking.' These books encapsulated a century of operational excellence and manufacturing insights, coining the term 'lean.' The paragraph underscores lean's transition from a manufacturing concept to a comprehensive business system, advocating for a learning culture that identifies and solves problems at their root cause, thereby eliminating waste and focusing on customer value. It concludes by emphasizing lean as a long-term, knowledge-driven approach to business, rather than a fleeting fad, with the goal of delivering the highest value at the lowest cost.
Mindmap
Keywords
💡Lean Thinking
💡Standard Work
💡Ford Motor Company
💡Overproduction
💡Toyota Production System (TPS)
💡Taiichi Ohno
💡Pull Replenishment
💡W. Edwards Deming
💡Value Stream
💡Learning Culture
💡Operational Excellence
Highlights
Understanding the history of lean thinking is crucial to avoid considering it as a temporary trend and to recognize its long-term development.
Frederick Taylor's 'Scientific Management' laid the foundation for the concept of standard work, emphasizing the importance of a baseline for improvement.
Ford Motor Company's early 20th-century manufacturing systems were based on interchangeable parts, contributing to the creation of flow in production.
Ford's focus on inventory reduction and process speed aimed to optimize manufacturing for a waste-free environment.
The economic order quantity concept led to the creation of large batch sizes disconnected from customer demand, resulting in overproduction and waste.
The concept of overproduction as the 'grandfather of all waste' emerged from the realization of the inefficiency of large batch production.
The Toyota Production System (TPS) was developed to manufacture variety without the waste associated with overproduction.
Taiichi Ohno, a key figure in Toyota, played a significant role in developing the principles of TPS, including standard work and error proofing.
TPS introduced and formalized concepts such as quality at the source, flow, and pull replenishment, emphasizing customer value.
Dr. Deming's work on quality management highlighted the importance of getting things right the first time to minimize waste.
The late 1980s and early 1990s saw the consolidation of lean thinking with the publication of 'The Machine That Changed the World' and 'Lean Thinking'.
Lean thinking has evolved from its manufacturing origins to be recognized as a comprehensive business system.
Lean encourages building a learning culture that exposes and solves problems at their root cause, thereby eliminating waste.
Lean is not a temporary program but a consolidation of ideas and practices aimed at delivering the highest value to customers at the lowest cost.
The history of lean thinking is a testament to the continuous improvement and adaptation of business and manufacturing practices over the past century.
Lean principles have been shaped by the expertise of individuals and organizations dedicated to operational excellence.
The body of knowledge in lean thinking provides a framework for building a business system focused on customer value and cost efficiency.
Transcripts
a very important aspect of lean
fundamentals is to understand the
history of lean thinking this is for two
reasons the first is that we do not want
people and team members in our
organization to think that lean is
something new or some flavor of the
month the second reason is that we want
people to understand that lean is
something that has been being developed
for a long time in fact some would argue
over the last hundreds of years however
from a purpose of lean fundamentals it's
important to look back for the last
century one of the first contributions
to lean thinking would be Frederick
Taylor's work and his resultant book
Scientific Management in this work
Frederick Taylor taught us that there is
in fact a best way to do work and that
means that team members need to
understand what is this best way to do
work and from that we create a baseline
from which we can improve upon this
really was the initial starting point of
what we now know as standard work
standard work just being some best way
of doing something in order that we can
all do it that way so that we have a
baseline from which we can improve upon
there is no question that Ford Motor
Company played a role in lean thinking
as well early in the 20th century they
were engineering Manufacturing Systems
that were based on interchangeable parts
and what this allowed them to do was to
create flow even 100 years ago Ford
Motor Company recognized that inventory
reduction and speed through the
manufacturing process will create a
manufacturing process that is optimal
from a waste-free
environment while Ford was focusing on
Flow early in the century as the
automobile industry progressed it did
create some challenges for manufacturing
those challenges were that the customer
wanted variety they wanted different
models they wanted different colors this
created complexity in the manufacturing
process and it also created changeovers
because we had to change lines over from
building one product to building the
next because of the complexity relative
to the variety unfortunately the way
many organizations handled management of
this complexity was to develop the
economic order quantity which was a
mathematical calculation of what a batch
size in manufacturing should be based on
trying to minimize the cost of
changeovers however this was not a good
move as now what was happening was we
were building batch sizes that were not
connected to customer demand in other
words we were Building Product that was
not necessarily wanted from the customer
and what this did was create product and
finished goods inventory that had no
place to go after it was manufactured
and consequently it needed to be
transported it needed to be stored it
needed to be counted and it needed to be
managed and in many cases it would need
to be obsoleted at some point in its
life when we realize that in fact it did
not and would not have any demand from a
customer point of view this was the
first notion of the waste of
overproduction known as the grandfather
of all waste because the waste of
overproduction creates all of the other
Wass as the 20th century progressed
another important player in the history
of lean is Toyota production system
which was developed by Toyota in order
to be able to manufacture variety and
deal with complexity without of the
resultant waste of over production
what's interesting about the Toyota
production system is that many of its
thoughts and principles are based on
Ford's original work from 50 years ago
that were focused on Flow and speed in
the supply chain taiichi Ono is Toyota's
famed engineer with being one of the
leaders really driving the development
of the Toyota production system there's
no question that TPS or the Toyota
production system has its place in the
history of lean thinking as it
introduced and formalized concepts for
us such as standard work quality at the
source and error proofing of processes
flow and and Pull replenishment and
understanding the most critical aspect
of lean fundamentals which is you have
to first focus on value of the customer
relative to the history of lean thinking
it's also important to give some credit
to Dr Deming and his work around quality
management that quality first has to be
the gold standard that if we just make
sure that we get things done the right
way the first time then we will create
an environment that does not have all of
the waste that is created when we are
making mistakes producing errors and
defects and allowing those defects to be
passed through down into the supply
chain the history of lean thinking
really got going as well in the late
1980s and the early 1990s from two books
written by Jim wac and Dan Jones the
first book was the machine that changed
the world and the second book was lean
thinking this is really the first step
where all of the thoughts of Ford Motor
Company and Toyota Motor Manufacturing
and Dr Deming and others all came
together in a Consolidated fashion where
we got to see a hundred years of
thinking relative to operational
excellence relative to speed and
relative to business and Manufacturing
Excellence all in one place and this is
really where the term lean first came
about while it could be argued that lean
thinking really has its origins in
manufacturing the last 20 years however
shows specifically that lean is now
recognized as a business system it is
now recognized as a way that you
actually run your business in that what
lean thinking tells us is that we want
to build a learning culture we want to
build a culture that creates an
environment where every day we go to
work and expose problems that exist and
then we solve those problems at the root
cause therefore eliminating waste inside
our systems and processes and therefore
allowing us to spend more time focusing
on what adds value to the customer lean
is certainly not a flavor of the month
or a new program what this is is a
incredible consolidation of ideas driven
from the expertise of organizations and
individuals who allowed their entire
careers to be focused on implementing
and Design in theories and principles
and tools and what we now have is a body
of knowledge that will allow us to build
a business system that will allow us to
focus on delivering the highest value to
our customer at the lowest possible
total cost
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