Learning Objectives
LO 9-1: Summarize the history of the Toyota Production System.
The development of the Toyota Production System began in the 1930s when executives of Toyota visited Detroit to study Ford’s automobile manufacturing system. Over the years they put key principles they observed, such as low-batch production and frequently delivered materials from suppliers, in place in their factories. As Toyota continued to build on these principles, they developed the kanban and poka-yoke concepts. They further enhanced their system by implementing total quality control, later renamed total quality management.
LO 9-2: Identify the major elements of lean.
There are seven elements of lean. Waste reduction includes reducing excess inventories, etc. Lean supply chain relationships focus on developing close relationships with both key suppliers and customers. Lean Layouts are designed to reduce movement of people and materials. Inventory and setup time reduction employs ideas on batch sizes, setup times, and safety stocks. Small batch scheduling enables a level production schedule by utilizing kanbans to pull WIP through the system. Continuous improvement enables companies to address problems quickly and effectively through continual problem-solving and process improvement. Employees’ roles are expanded and they are given top management support and resources resulting in workforce empowerment.
LO 9-3: Explain lean thinking applied to services.
Services has many similarities to manufacturing; therefore, many of the lean concepts can be applied to services. If you think lean, you’ll address key issues such as waste reduction, customers’ needs, improving quality, and improving service delivery.
LO 9-4: Describe how firms create and sustain a lean culture.
Firms create and sustain a lean culture by providing leadership, training, communication, enthusiasm, and resources to employees over a long period of time. These actions drive cultural change; thus, transforming the current culture into a lean culture.
LO 9-5: Describe how lean methods create sustainable supply chains.
Lean methods create sustainable supply chains by enabling the reduction of waste throughout all the supply chain activities. This elimination of waste leads to improved environmental performance and profitability.
LO 9-6: Discuss several of the current trends in lean systems.
The primary current trend is to utilize smart pull. Smart pull encompasses the idea of adding intelligence to lean systems through the use of big data, cloud computing, and mobile access. In addition, lean thinking is being applied to other disciplines such as financial management.
Chapter Outline
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