Lean Thinking
Page 42
15: Institutionalizing the Revolution
1. Two of the sensei we most respected and whose work we mentioned briefly in this book have died since the publication of the first edition of Lean Thinking. Yoshiki Iwata, who worked for many years with Wiremold, Pratt & Whitney, and Porsche, died in 2001. Yuzuru Ito, who instilled quality thinking at United Technologies (Pratt & Whitney), died in 2000. Both continued with their kaizen activities right up until their deaths, working long after their age and health suggested that they retire, like Taiichi Ohno and Shigeo Shingo before them.
2. For a detailed description of Value Stream Mapping, see Mike Rother and John Shook, Learning to See (Brookline, Mass.: Lean Enterprise Institute, 1998).
3. Readers with backgrounds in Six Sigma, Total Productive Maintenance, the Theory of Constraints, and the Toyota Production System will recognize that each of these concerns is the starting point for one of the traditions. In the end, we believe that they are all seeking the same goal: a perfect process providing correctly specified value exactly when the customer wants it with no waste, no defects, no breakdowns, no bottlenecks, and no excess capacity.
4. The simplest evidence is that Learning to See has now sold more than 120,000 copies in English and has been translated into a dozen languages. When we walk through facilities in many countries, as we do constantly, we now almost always see value stream maps for the current state and the future state.
5. For example, we are often shown cellularized production and we are grateful that the cells are usually marked by large signs. Otherwise we might not know they are cells, because what we see instead of true cells is a group of adjacent machines with erratic output rather than smooth flow, poor utilization of operators, and piles of inventory between each machine. For an action plan for achieving truly continuous flow in cellularized operations see Mike Rother and Rick Harris, Creating Continuous Flow (Brookline, Mass.: Lean Enterprise Institute, 2002).
6. Recently we’ve tried to introduce some consistency in lean terminology by leading an effort to publish a lean dictionary. See The Lean Lexicon: A Graphical Glossary for Lean Thinkers (Brookline, Mass.: Lean Enterprise Institute, 2003).
7. See Mike Rother and Rick Harris, Creating Continuous Flow, for further insight on best-practice and model cells.
8. We are indebted to John Shook for this point.
9. Dan Jones and Jim Womack, Seeing the Whole: Mapping the Extended Value Stream (Brookline, Mass.: Lean Enterprise Institute, 2002). While the names of the firms sharing this value stream have been disguised, the data we present are precisely what we found on our walk and are completely typical of today’s manufacturing practices around the world.
10. The simple test of value is to ask of a step: “Would the customer pay less or be less satisfied with the product if this step could somehow be left out?” In the example cited, only the eight stamping, painting, and assembly steps actually create value the customer would miss. No customer would complain if the 65 handoff, rework, transport, and storage steps could somehow be eliminated. Indeed, to the extent that these steps stretch out the elapsed time to make the product and thwart the customer’s desire to got just what is wanted just when it is wanted, they actually destroy value.
11. As so often, we are grateful to John Shook for this point.
Bibliography
The following are books and articles we have found particularly helpful in understanding lean thinking and lean techniques.
Arnold, Horace, and Fay Faurote. Ford Methods and the Ford Shops. North Stratford, N.H.: Ayer, 1998 (a reprint of the Engineering Magazine edition of 1915).
Case, John. Open Book Management. New York: Harper Business, 1995.
Clark, Kim, and Takahiro Fujimoto. Product Development Performance. Boston: Harvard Business School Press, 1991.
Clausing, Don. Total Quality Development: A Step-by-Step Guide to World-Class Concurrent Engineering. New York: American Society of Mechanical Engineers Press, 1994.
Cooper, Robin. When Lean Enterprises Collide: Competing Through Confrontation. Boston: Harvard Business School Press, 1995.
Csikzentmihalyi, Mihaly. Flow: The Psychology of Optimal Experience. New York: Harper Perennial, 1990.
———. The Evolving Self: A Psychology for the Third Millennium. New York: Harper Perennial, 1993.
Cusumano, Michael. The Japanese Automobile Industry: Technology and Management at Nissan and Toyota. Cambridge, Mass.: Harvard University Press, 1985.
Fujimoto, Takahiro. The Evolution of a Manufacturing System at Toyota. New York: Oxford University Press, 1999.
Gleick, James. Chaos: Making a New Science. New York: Viking, 1987.
Jones, Dan, and Jim Womack. Seeing the Whole: Mapping the Extended Value Stream. Brookline, Mass.: Lean Enterprise Institute, 2002.
Philip Hauser and Don Clausing, “The House of Quality,” Harvard Business Review, Vol. 66, No. 3, May–June 1988, pp. 63–73.
Hines, Peter. Creating World-Class Suppliers. London: Pitman, 1994.
Hounshell, David. From the American System to Mass Production, 1800–1932. Baltimore: Johns Hopkins University Press, 1984 (revised, expanded, and reissued, 1995).
Hurst, David. Crisis and Renewal. Boston: Harvard Business School Press, 1995.
Kurogane, Kenji, ed., Cross-Functional Management: Principles and Practical Applications. Tokyo: Asian Productivity Organization, 1993.
Lamming, Richard. Beyond Partnership: Strategies for Innovation and Lean Supply. New York: Prentice-Hall, 1993 .
Mather, Hal. Competitive Manufacturing. New York: Prentice-Hall, 1991.
Monden, Yasuhiro. The Toyota Production System. Atlanta: Institute of Industrial Engineers, 1983.
———. Cost Reduction Systems: Target Costing and Kaizen Costing. Portland, Ore.: Productivity Press, 1995.
Nishiguchi, Toshihiro. Strategic Industrial Sourcing: The Japanese Advantage. Oxford: Oxford University Press, 1994.
Ohno, Taiichi. The Toyota Production System: Beyond Large-Scale Production. Portland, Oregon: Productivity Press, 1988.
———. Workplace Management. Portland, Oregon: Productivity Press, 1988.
Rother, Mike, and Rick Harris. Creating Continuous Flow. Brookline, Mass.: Lean Enterprise Institute, 2001.
Rother, Mike, and John Shook. Learning to See. Brookline, Mass.: Lean Enterprise Institute, 1998.
Schonberger, Richard J. Japanese Manufacturing Techniques. New York: Free Press, 1982.
———. World Class Manufacturing: The Lessons of Simplicity Applied. New York: Free Press, 1986.
———. World Class Manufacturing: The Next Decade. New York: Free Press, 1996.
———. Let’s Fix It. New York: Free Press, 2001.
Sewell, Carl and Paul B. Brown. Customers for Life. New York: Pocket Books, 1991.
Shingo, Shigeo. A Study of the Toyota Production System from an Industrial Engineering Viewpoint. Portland, Oregon: Productivity Press, 1989.
Stack, Jack. The Great Game of Business. New York: Harper Business, 1993.
Suzaki, Kiyoshi. The New Manufacturing Challenge. New York: Free Press, 1987.
———. The New Shopfloor Management. New York: Free Press, 1993.
Toyota Motor Corporation. The Toyota Production System. Operations Management Consulting Division and International Public Affairs Division. Toyota City: Toyota Motor Corporation, 1995.
———. Toyota: A History of the First 50 Years. Toyota City: Toyota Motor Corporation, 1988.
Womack, James P., and Daniel T. Jones. How the World Has Changed Since The Machine That Changed the World. Brookline, Mass.: Lean Enterprise Institute, 2000.
Index
accounting systems, 60 , 136 , 262 , 270 , 347 , 352
action plan, 247 –71, 313 –36, 374 n –75 n
batch-and-queue mode vs., 257 –58, 265 , 267
change agents for, 247 –50, 253 , 254 , 256 , 257 , 260 , 261 , 268 , 269 –70, 313 –14
charts and tables for, 257 , 317 , 318 , 3
19 , 320 , 321 , 324 –25, 328 –32
competition and, 250 –51, 336
cost reductions in, 250 , 251 , 252 , 259 , 266 –67, 332 –35
creative crisis and, 250 –51, 258 , 315 –16
customers and, 248 , 327 –32
for flow, 250 , 254 , 255 , 258 , 264
global strategy in, 267 –68, 270 , 332 –35
grand strategy vs., 251 –52
growth strategy in, 258 –59, 270
immediate results for, 253 –54
initiation of, 247 –55, 270
for inventories, 250 , 271
kaikaku in, 247 , 248 , 254 , 255 , 262 , 265 , 270
kaizen in, 248 , 262 , 268 , 315 , 318 , 319
knowledge in, 248 –50, 314 –15, 323
layoffs and, 249 , 258 –59, 260
lean promotion function in, 256 –57, 322 –23, 326 , 336
for management, 248 , 250 , 256 , 257 , 259 –61, 264 , 268 –69, 313 –14, 315 –16, 336
momentum in, 253 , 254 –55, 260 –61
muda eliminated in, 247 , 249 , 251 , 252 , 254 , 255 , 257 , 263 , 269 , 314 , 315 , 323 , 327 , 328 –31
opposition to, 258 , 259 –60, 261
for order processing, 254 , 255 , 256 , 262 , 268
for perfection, 250 , 260 , 270 , 322 , 323 –26
policy deployment and, 261 –62, 326 , 336 , 349
for product development, 250 , 251 –52, 255 , 256 , 257 , 268
productivity and, 262 –63
for pull, 250 , 253 , 254 , 255 , 264 , 314 , 323 –26, 328 –31
quality control and, 257 , 267 , 268
reorganization in, 255 –62, 265 , 270 , 320 –22
salaries and, 262 –63, 268 , 270
for sales, 254 , 256 , 259 , 262
sensei for, 249 –50, 253 , 254 , 256 , 268 , 269 –70, 314 –15
for suppliers, 248 , 249 , 252 , 265 –67, 268 , 270 , 327 –32, 371 n –72 n
terminology of, 257
time frame for, 269 –70
training in, 264 , 270
transparency and, 253 , 261 , 263 –64, 268 , 270
value stream and, 252 –53, 254 , 255 –56, 262 , 264 , 270 , 271 , 315 , 316 –22, 323 , 327 , 375 n
Activity Based Costing, 136 , 262 , 347 , 352
Advanced Ducted Propfan (ADP), 166
advertising, 48
AEG, 284
aggregated processes, 10 , 23 –24, 37 , 44
Airbus, 18 , 164
Airbus A3XX aircraft, 152
Airbus 320 aircraft, 164
aircraft industry, 18 , 19 , 28 , 164 , 217 , 286 –89, 305 –9, 373 n
airfoils, turbine, 165 , 173
airline industry, 18 –19, 20 , 32 –34, 50 –51, 160 , 161 –62, 163 , 166 , 175 , 182 , 186 , 244 , 286 –89, 305 –6, 356 n –57 n , 373 n
airports, 18 –19, 32 –34, 51 , 175 , 286 –87, 288 , 356 n
Aisin Seiki, 235
aluminum, 38 –41, 59 , 156 , 193 , 241 , 358 n
and on boards, 56 , 61 , 234 , 287 , 347
assembly lines, 23 , 56
Aston Martin, 373 n
Audi, 191 , 205 , 211
automated guided vehicles (AGVs), 176 , 177 , 179
automated storage and retrieval system (ASRS), 176 , 177 , 179
automobile industry:
batch-and-queue mode used in, 68 –69, 70
bicycle industry and, 57
dealerships in, 29 , 35 , 67 –68, 73 , 74 , 76 , 81 –86, 287 , 293 –94, 361 n –62 n
German, 189 –218, 302 –4, 373 n
Japanese, 85 –86, 197 –98, 200 , 211 , 222 , 242 , 300 –302, 336 , 373 n , 374 n
JIT system in, 70
maintenance agreements in, 82 –87, 93
materials revolution in, 28
parts distribution in, 67 , 72 –87, 302
personal mobility and, 286 , 293 –94
pull in, 67 –87
sales in, 29 , 35 , 67 , 73 , 74
in U.S., 22 –23, 218 , 301
availability (uptime), 318 –20, 322 –23
backflow, 52 , 54 , 112 , 119 , 137 , 148 , 180 , 182 , 183 , 202 , 280
back orders, 143
backtracking, 107 –8, 120
Baldrige Award, 29
bankruptcy, 19 , 230 , 231
Barnett, Richard, 71
bauxite, 38 , 39 , 42 , 43 , 44
benchmarking, 9 , 10 , 27 , 48 –49, 238 , 253 –54, 263
B-52 bomber, 160
bicycle industry, 20 , 52 –64, 339
batch-and-queue mode used in, 53 , 57 , 58 , 60
departmentalization in, 53
final assembly in, 53 , 56 –57, 62
frames produced in, 55 , 59 , 62
JIT in, 59
order processing in, 54 –56
part fabrication in, 56 –63
product design in, 53 –54, 58
takt time in, 55 –56
Bill of Materials (BOM), 105
blanking machines, 40 , 70 , 84
BMW, 211 , 212 , 373 n
Boeing, 18
Boeing 707 aircraft, 160 , 305
Boeing 727 aircraft, 160 , 163
Boeing 737 aircraft, 160 , 163 –64
Boeing 757 aircraft, 163
Boeing 777 aircraft, 152
Bohn, Arno, 195
boilers, 219 , 220 , 222 , 224 , 226 , 227
bonuses, 26 , 56 , 58 , 263
bottlenecks, 58 , 114 , 265
bottlers, 39 , 41 –42, 46 , 47 , 48
box scores, 27 , 121 , 148 –50, 212 –13
Brooks, Gary, 126
Brooks Electronics, 126 , 147
“brownfield” plants, 10 –11, 28 , 261 , 347 , 348
Bubble Economy, 80 , 191 , 238 , 299
bumpers, automobile, 67 –72, 73 , 74 , 75 , 83
Bumper Works, 68 –72, 74 , 76 , 84 –85
“bumping-rights” system, 17 2
business cycles, 88 , 109 , 168 , 336
Byrne, Art, 125 , 127 , 128 , 129 , 130 –36, 139 , 140 , 142 , 144 , 145 , 146 , 147 –48, 152 , 168 , 169 , 171 , 181 , 299 , 312 , 373 n
call-back rates, 181
Canada, 333 , 335
cans, aluminum, 38 –41, 358 n
capability (first-time quality), 318 –20, 322 –23
careers, 245 , 271 , 275 , 278 –79, 284
Carrier, 170 , 171
castings, ornamental, 220 , 225 , 226
CFM, 163 –64
chaku-chaku (load-load) cells, 179 , 232 , 347 –48
change agents, 97 –98, 111 –12, 115 , 124 , 127 , 130 –31, 133 –34, 247 –50, 253 , 254 , 256 , 257 , 260 , 261 , 268 , 269 –70, 313 –14
chaos, 81 , 87 –88
Chericoni, Roger, 181 , 182
Chicago Pneumatic Tool Company, 127
China, People’s Republic of, 228 , 230 , 243 , 333
chrome, 68 , 70 , 71
Chrome Craft, 71 , 72 , 84 , 85
Chrysler, 238 , 267 , 278 , 300
Chubu Industrial Engineering Association, 242
Claramunt, Dennis, 129 , 130
Clarke, Philip, 374 n
Clausing, Don, 141
cola, 38 –48, 374 n
Cold War, 17 , 151 , 164 , 276 –78, 280 , 306
Colt, Samuel, 153 , 364 n
Comet, 305
computer-aided design (CAD), 30 , 148 , 283
computer industry, 21 , 28 , 252
Computer Integrated Manufacturing, 216 , 283
computer systems, 30 , 45 –46, 100 , 110 –11, 117 , 121 , 148 , 175 , 177 , 179 , 226 –27, 261 , 283
Concept of the Corporation, The (Drucker), 12
“concrete heads,” 112 , 129 , 130 , 140 , 269
Condeco, Joe, 135
construction industry, 28 , 29 –31, 51 , 286 , 291 –92, 372 n
Coran, Mark, 151 , 152 , 167 , 168 , 172 , 173 , 175 , 184 , 248 , 260 –61
corporations, virtual, 21 , 87
Cosentino, John, 130
crash parts, 68 , 69 –71, 73 , 75 , 81 , 83 , 85 , 93
“created demand,” 72 –73
credit cards, 287 , 288
credit checks, 55 , 117 , 292
Csikszentmihalyi, Mihaly, 65
currency risks, 335
Current State, 316 –20, 321 , 323 , 325 , 327 –32
Curtiss Liberty engine, 155
Curtiss-Wright, 159
customers:
cancellations by, 58
in global strategy, 332 –35
“for life,” 29 , 235
passivity of, 51
pull directed by, 10 , 24 , 27 , 67 , 68 , 76 , 77 , 82 , 83 , 84 , 88 , 94
satisfaction of, 9 , 15 , 26 , 29 , 105 , 106 , 107 , 118 , 121 , 123 , 126 , 127 , 137 , 216 , 235 , 259
value defined by, 16 , 18 , 28 , 29 –36, 93 , 123 , 217 –18, 252 –53, 262 , 291 –92
Customers for Life (Sewell), 29
cycle time, 348 , 352 , 360 n
Daimler-Benz, 189 , 217
D’Amore, Bob, 167 –68, 169 , 184 , 248
Danaher Corporation, 111 , 127 , 128 , 129 , 130 –31, 133 , 134 , 168 , 171
Daniell, Bob, 151
data control, 110 –11
David, George, 152 , 168 –69, 170 , 171 , 172 –73, 181 –82, 184 , 24 9
Day, Joe, 90 , 338
de-encapsulation, 176 , 179
Deming, W. Edwards, 29 , 126 , 127 , 242
Deming Prize, 242
deselection, project, 97 , 119 , 141 , 262
Directly Responsible Individual (DRI), 119 , 321 , 322
Dodge Line, 233
Douglas DC-7 aircraft, 159
Douglas DC-8 aircraft, 160
Douglas DC-9 aircraft, 160
Doyle Wilson Homebuilder, 29 –31, 32 , 51 , 276 , 356 n
Drucker, Peter, 12
“early adopters,” 260
“economic order quantities,” 73
efficiency, 15 , 16 , 18 –19, 21 –22, 34 , 50 –51, 52 , 289
electrostatic discharge machines (EDMs), 178
employees:
bonuses for, 26 , 56 , 58 , 263
concentration of, 65 –66
cooperation of, 129 , 138 , 168 , 269 , 278 –79
dress code for, 135
fatigue and stress of, 240
feedback for, 15 , 26 , 65 , 122 , 263 , 295
injuries of, 27 , 149
job security of, 17 , 62 , 77 , 115 –16, 122 –23, 133 , 134 , 139 –40, 168 , 179 , 253 , 258 , 260 , 271 , 275 , 280
layoffs of, 15 , 16 , 24 , 28 , 109 , 131 –33, 138 , 140 , 172 –73, 175 , 179 , 180 , 205 –6, 220 , 233 , 234 , 249 , 258 –59, 260