Lean Thinking Development

Overview

This lecture outlines the history and evolution of Lean Thinking, highlighting significant milestones, influential figures, and foundational concepts that have shaped modern lean manufacturing and management practices. It traces the development of lean from its early origins to its global adoption and adaptation across various industries.

Early Origins of Lean Thinking

• The Venetian Arsenal, established in 1104 in Venice, was an early example of standardized production. The Arsenal built warships for the Venetian Navy using a standard design and pioneered the use of interchangeable parts.
• Ships were assembled along a narrow channel, with the hull completed first and then moved past stations where each component was added. By 1570, this process was so advanced that a complete galley could be constructed in less than an hour.
• The Arsenal’s practices laid the groundwork for later developments in efficient, flow-based production and the concept of interchangeable parts.

Key Figures and Innovations

• Eli Whitney: Known for inventing the cotton gin, Whitney is also credited with promoting interchangeable parts during the production of 10,000 muskets for the US Army in 1798. This innovation was later recognized as a key factor in the North’s victory in the American Civil War.
• Frederick W. Taylor: Developed the principles of scientific management, focusing on analyzing work methods, measuring task times, and eliminating wasteful activities to improve efficiency. His 1911 book, "Principles of Scientific Management," became foundational, though his disregard for worker well-being made him controversial.
• Frank and Lillian Gilbreth: Advanced the study of motion efficiency and invented process mapping. Frank focused on reducing unnecessary motions, while Lillian introduced workplace psychology, emphasizing the impact of worker motivation on process outcomes. Their approach differed from Taylor’s by prioritizing worker welfare.
• Key Terms:
  • Interchangeable Parts: Standardized components that can be used in any assembly of the same type.
  • Scientific Management: A systematic approach to improving efficiency by analyzing workflows and removing waste.

The Era of Mass Production

• Henry Ford: Along with Charles E. Sorensen, Ford developed the first comprehensive manufacturing strategy for the Model T, integrating people, machines, tools, and products into a continuous assembly system. This approach is considered an early form of just-in-time (JIT) production, aligning output with customer demand.
• Ford’s system was highly successful but struggled to adapt to increased product variety, labor unions, and changing market demands. His refusal to modify the system led to its decline as competitors adapted more flexible approaches.
• Key Terms:
  • Just-in-Time (JIT): Producing only what is needed, when it is needed, to minimize waste and align with demand.
  • Continuous Flow: A production process where items move smoothly from one step to the next without interruption.

General Motors and Further Developments

• Alfred P. Sloan at General Motors introduced flexible business and manufacturing strategies to manage large enterprises and meet diverse customer demands. GM adapted effective elements of Ford’s methods to suit a broader product range.
• By the mid-1930s, GM had surpassed Ford in the automotive market by reinterpreting and improving upon Ford’s production techniques.
• Key Terms:
  • Flexible Manufacturing: The ability to adapt production processes to accommodate different products and changing customer needs.

Japanese Adoption and the Toyota Production System (TPS)

• After World War II, Japanese industrialists studied Western production methods, including Ford’s system, Deming’s statistical process control, Juran’s quality management, and Ishikawa’s quality control tools (such as the cause-and-effect diagram).
• At Toyota, Taiichi Ohno and Shigeo Shingo integrated these Western techniques with scientific management principles to create the Toyota Production System (TPS).
• TPS addressed the shortcomings of earlier systems by emphasizing worker engagement, team development, and multi-skilling. The approach recognized that workers could contribute more than just manual labor, leading to innovations like quality circles and cellular manufacturing.
• From 1949 to the mid-1970s, TPS was adopted by other Japanese companies, resulting in significant productivity and quality improvements.
• Key Terms:
  • Toyota Production System (TPS): A management system combining JIT, worker involvement, and continuous improvement.
  • Quality Circles: Teams of workers who meet to discuss and solve workplace problems.
  • Cellular Manufacturing: Organizing work into small teams or cells to improve efficiency and flexibility.

Globalization and Evolution of Lean Thinking

• As the benefits of TPS became evident, American companies and consultants began adopting and adapting its concepts. This led to widespread implementation of lean practices in manufacturing and beyond.
• The five key principles of Lean Thinking, rooted in Toyota’s approach, became widely recognized but require careful adaptation to each industry. Many organizations outside manufacturing struggled with lean due to superficial or incomplete adoption.
• By the 1980s, lean concepts had spread globally, with branded implementations and a growing body of knowledge and experience.
• Key Terms:
  • Lean Thinking: A philosophy focused on maximizing value and minimizing waste through continuous improvement and respect for people.
  • Five Principles of Lean: Define value, map the value stream, create flow, establish pull, and pursue perfection.

Modern Lean Concepts

• The term "lean" was popularized by James Womack, Daniel T. Jones, and Daniel Roos in their 1990 book, "The Machine That Changed the World," which analyzed global automotive manufacturing and introduced lean to a wider audience.
• In the mid-1990s, interest in lean spread to service and public sector organizations, though successful application required careful adaptation of tools and techniques.
• In 2003, John Seddon introduced the concepts of "value demand" (the customer’s actual request or need) and "failure demand" (work caused by not meeting the need correctly the first time). Seddon’s approach led to significant improvements in organizations like the Portsmouth Housing Authority.
• Key Terms:
  • Value Demand: The customer’s original request or need for a service.
  • Failure Demand: Additional work resulting from not meeting the customer’s need correctly the first time.
  • Continuous Improvement (Kaizen): Ongoing efforts to improve products, services, or processes.

Key Terms & Definitions

• Lean Thinking: A management philosophy focused on waste reduction, efficiency, and value creation.
• Interchangeable Parts: Standardized components designed to fit in any assembly of the same type.
• Scientific Management: Taylor’s system for analyzing and improving workflows for efficiency.
• Just-in-Time (JIT): Producing only what is needed, when needed, to reduce waste.
• Toyota Production System (TPS): Toyota’s approach combining JIT, worker engagement, and quality improvement.
• Value Demand: Customer’s original request or need for a service.
• Failure Demand: Additional work caused by not meeting the customer's need right the first time.
• Quality Circles: Worker teams focused on solving workplace problems.
• Cellular Manufacturing: Organizing production into small, flexible teams or cells.
• Continuous Flow: Smooth, uninterrupted movement of products through the production process.
• Flexible Manufacturing: Adapting production to meet changing demands.
• Continuous Improvement (Kaizen): Ongoing, incremental improvements in processes.

Action Items / Next Steps

• Review the five key Lean principles and consider how they apply to your sector or organization.
• Read "The Machine That Changed the World" for a deeper understanding of lean history and its global impact.
• Analyze how value demand and failure demand manifest in your organization, and identify opportunities for improvement.
• Explore the application of lean tools such as value stream mapping, quality circles, and continuous improvement in your context.
• Assess the level of worker engagement and team development in your processes, and consider strategies for increasing involvement and multi-skilling.