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0106 LECT THE RISE OF LEAN PRODUCTION 10 P

0106 LECT THE RISE OF LEAN PRODUCTION 10 P - OPERATIONS AND...

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OPERATIONS AND LOGISTICS STRATEGIES. ___________________________ READING: “THE RISE OF LEAN PRODUCTION” ___________________________ Document published exclusively for this course / seminar. It is not permitted reproduce it totally or partially without permission. Document publicat per a ús exclusiu d’aquest curs/seminari. No està permès reproduir-lo totalment o parcialment sense permís. Documento publicado para uso exclusivo de este curso/seminario. No está permitido reproducirlo total o parcialmente sin permiso. Faculty: PhD. August CASANOVAS
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THE RISE OF LEAN PRODUCTION 1 In the spring of 1950, a young Japanese engineer, Eiji Toyoda, set out on a three-month pilgrim to Ford's Rouge plant in Detroit. In fact, the tripmarked a second pilgrimage for the family, since Eiji's uncle, Kiichiro, had visited Ford in 1929. Since that earlier time much had happened to the Toyoda ftily and the Toyota Motor Company they had founded in 1937. 1 (' founding family's name, Toyoda, means "abundant rice field' Japanese, so marketing considerations called for a new name the fledgling company. Accordingly, in 1936, the company held a public contest, which drew 27,000 suggestions. "Toyota," which has no meaning in Japanese, was the winner.) Most of these events had been disastrous for the company: They had been thwarted by the military government in their effort to build passenger cars in the 1930s, and had instead made trucks, largely with craft methods, in the ill-fated war effort. And, at the end of 1949, a collapse in sales forced Toyota to terminate a large part of the workforce, but only after a lengthy strike that didn't end until Kiichiro resigned from the company to accept responsibility for management failures. In thirteen years of effort, the Toyota Motor Company had, by 1950, produced 2,685 automobiles, compared with the 7,000 the Rouge was pouring out in a single day. 2 This was soon to change. Eiji was not an average engineer, either in ability or ambition. After carefully studying every inch of the vast Rouge, then the largest and most efficient manufacturing facility in the world, Eiji wrote back to headquarters that he "thought there were some possibilities to improve the production system." 3 But simply copying and improving the Rouge proved to be hard work. Back at home in Nagoya, Eiji Toyoda and his production genius, TaiichiOhno, soon concluded—for reasons we will explain shortly—that mass production could never work in Japan. From this tentative beginning were born what Toyota came to call the Toyota Production System and, ultimately, lean production. 4 1 The Machine that Change the World, from James P. Womack. Chapter 3: The Rise of Lean Production.
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THE BIRTHPLACE OF LEAN PRODUCTION Toyota is often called the most Japanese of the Japanese auto companies, being located in insular Nagoya rather than cosmopolitan Tokyo.
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