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ch3_lean_2 - 2.2 Background of Lean The Toyota Production...

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2.2 Background of Lean The Toyota Production System is still a preeminent example of lean manufacturing. Toyota was founded by Sakichi Toyoda in 1926. In 1949, Eiji Toyoda visited Ford Motor in Detroit to gain understanding of their mass production system. Ford’s operation was recognized as the world’s most efficient, with a production rate of 7000 cars per day, while Toyota had only produced 2685 cars in 13 years up to that point. Toyoda and Taichii Ohno , Toyota’s chief engineer, studied Ford’s operation for 3 months and recognized much waste (muda) everywhere in Ford’s operation. For example, they noted that only assembly line workers were adding any value to the production process. The foremen served only to ensure that assembly line workers followed orders, and they in turn simply performed repetitious tasks. 21
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Shigeo Shingo, an industrial engineer at Toyota identified seven wastes in mass production systems, and their financial loss: 1. Overproducing Æ product quantities greater than market need 2. Idle time waste (waiting time/queue time) Æ lost labor 3. Transporting/conveyance waste Æ increased energy costs 4. Processing waste : waste in the work itself Æ requires more inputs than necessary 5. Inventory waste (having unnecessary stock on hand) Æ excessive inventory holding cost 6. Wasted operator motion (using unnecessary motion) Æ nonproductive time 7. Producing defective goods (waste of rejected production) Æ additional labor and material cost 22
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