Lean Thinking
Page 44
packaging industry, 304 –5
paint systems, 60 , 61 , 113 , 194 , 204 , 205 –6
palletizers, 305
parking carousels, 225 , 252
partnerships, 327
patents, 103 , 108 , 109
Pentland, Bob, 128 , 129
perfection, 90 –98
action plan for, 250 , 260 , 270
definition of, 350
dreaming about, 285 , 286 –95
flow and, 65 –66, 94
incremental path to, see kaizen
pull and, 85 , 92 , 94
pursuit of, 10 , 12 , 25 –26, 35 , 37 , 49 , 109 , 134 , 139 , 224
radical path to, see kaikaku
pickers, 42 , 73 , 75 , 76 , 77 –79, 82 , 143
Plan-Do-Check-Act problem-solving cycle, 242
platforms, automobile, 237 , 238 , 278
“pogo stick” phenomenon, 81
Point-of-Sale (POS) system, 45
point-to-point services, 18 , 19 , 20
point velocity, 178 , 288
poka-yoke process, 9 , 61 , 203 , 228 , 350 –51, 361 n , 370 n
Poland, 333
Pontiac assembly plant, 170 –71
Porsche, Ferdinand, 189 , 190 , 191 , 193
Porsche AG, 199 –218
batch-and-queue mode used by, 192 , 215
box score of, 212 –13
change agents for, 197 –98, 201 –5, 214
competition of, 192 , 214 , 215
cost reductions in, 197 , 200 , 210
craft culture of, 193 –94, 201 , 206 , 207
creative crisis in, 195 –97
delivery times for, 201
departments of, 192 , 215
engine assembly in, 201 –5, 213
engineers of, 190 , 192 , 194 , 195 , 202 , 206 , 210 , 212 , 213 –14, 215 , 279
expanded operations of, 373 n
family control of, 191 , 195
founding of, 189
hierarchy of, 192 , 193 , 199 –200, 201 , 215
history of, 189 –94
inventory of, 194 , 201 –3, 213 , 215
JIT system used by, 207 , 208 –10
labor unions of, 198 , 199 , 202 , 206 –7
layoffs by, 205 –6
lean production in, 189 , 197 –218, 226 , 229 , 258 , 264 , 302 –4, 338 , 373 n
legal name of, 192
machines used by, 193 , 201 –2, 205 , 206 , 364 n
management of, 191 –92, 194 , 198 –99, 202 , 203 , 207 , 210 –11, 214 , 374 n
market niche of, 195 , 197 , 198 , 202 , 211 , 267
meister system of, 193 , 199 –200, 201 , 215
muda in, 193 , 206 , 210
order processing by, 194
performance standards of, 191 , 193 –94, 211 , 212
plant layout of, 203 , 204
POLE team of, 207 –10
Pre-Delivery Inspection Centers
closed by, 303
product development in, 191 , 192 , 193 –94, 195 , 198 , 206 , 211 –12, 215 , 276 , 302 –4
productivity in, 197 , 198 , 212 –13
profits of, 191 , 198 , 213 , 303 , 304
pull system used by, 208 –9
quality control in, 189 , 193 –94, 198 , 199 , 200 , 202 , 206 , 208
reorganization of, 198 –200
sales of, 195 –97, 206 , 213 , 214 , 303
sensei for, 201 – 5
suppliers of, 192 –93, 194 , 203 –4, 207 –10, 214 , 215 , 252 , 266
value stream of, 195 , 215
Works Council of, 198 , 199 , 202 , 206
Porsche Boxster, 211 , 302 , 369 n
Porsche Carrera, 189 , 201
Porsche Consulting, 210
Porsche Improvement ( Verbesserungs ) Process (PVP), 200 –201, 205 , 206
Porsche 356, 190
Porsche 911, 190 , 191 , 195 , 196 , 197 , 201 , 211 , 302 , 368 n –69 n
Porsche 912, 196
Porsche 914, 190 –91, 195 , 196
Porsche 924, 191 , 195 , 196
Porsche 928, 191 , 195 , 196 , 197 , 211
Porsche 944, 191 , 195 , 196 , 197
Porsche 959, 195
Porsche 968, 191 , 196 , 205 , 211
Pratt, Francis, 153 , 154
Pratt & Whitney, 151 –88
American Eagle logo of, 155
batch-and-queue mode used by, 153 , 160 , 165 , 173 , 175 , 177 , 180 , 182
cells used in, 156 –57, 168 , 169 , 173 , 175 , 179 , 183
change agents for, 168 –73, 257
commercial accounts of, 151 –52, 155 , 160 , 161 , 162
competition of, 151 , 157 , 159 , 161 –64
Continuous Improvement Office of, 168 , 184 , 223
cost reductions by, 20 , 26 , 151 , 152 , 179 , 182 , 183 , 187
creative crisis in, 166 –86
delivery times for, 164 , 173 , 174 , 183 , 186
departments of, 155 , 159 , 171 –72, 180 –81
in difficult environment, 305 –9
downsizing plan for, 166 –67
earnings of (1992–2002), 152 , 309 , 373 n –74 n
employees of, 158 , 168 , 172 –73, 174 , 175 , 187
engineers of, 154 –58, 160 –61, 164 –65, 166 , 182 –83, 184 , 186
exit strategy for, 167 , 183
final assembly in, 157 , 160 , 173 , 174 , 180 , 182 , 232
flow in, 156 –57, 164 –65, 167 –69, 173 , 175 , 176 –79, 180 , 182 , 187
founding of, 153
history of, 153 –66
inventory of, 170 –71, 175 , 183
JIT system used by, 179
labor unions of, 158 , 172 –73, 187 , 365 n
layoffs by, 162 , 163 , 172 –73, 175 , 179 , 180
lean production in, 150 , 152 –53, 166 –68, 217 , 226 , 229 , 259 , 338 , 367 n –68 n
machines used by, 153 –54, 160 , 165 , 168 , 175 –80, 183
management of, 155 –56, 158 , 163 , 164 –66, 168 , 173 –74, 180 , 182 –83, 184 , 210 , 260 –61
market share of, 151 , 160 , 162 , 164 , 169
mass production in, 157 –62
Material Review Boards (MRBs) of, 181 , 183
military accounts of, 151 , 155 , 158 –59, 160 , 162 , 306 , 373 n
modular system used by, 180 , 182 , 186
order processing by, 158 , 161 , 167 , 174
plant layout of, 165 , 166 , 168 , 172 , 177 , 178 , 182 –83, 306 –7
Product Centers of, 172 , 184 , 185
product development in, 152 , 154 , 158 –64, 167 , 184 –86, 276 , 308 , 365 n –66 n , 373 n
profits of, 170 , 187
project engineer’s role in, 155 –58
pull in, 182
quality control in, 157 , 163 , 165 , 175 , 179 , 180 –83, 184
reorganization of, 184 –86
return on assets and sales of, 308
sales of, 161 –62, 163 , 169 –70, 171 , 186 , 187 , 306 , 307 , 308
spare parts manufactured by, 151 , 161 , 162 , 169 , 174 –75, 187 , 308
suppliers of, 166 –67, 168 , 172 , 173 , 179 –80, 182 , 183
tools used by, 157 , 158 , 164 , 168 , 180 , 183
value stream of, 20 , 48 , 169 , 172 , 175 , 178
Pratt PW4084 engines, 152
“Pratt Salute,” 159
prices:
competitive, 163 , 251
constant, 82
control of, 17 , 241
as global strategy, 332 –35
reduction of, 35 –36, 218
return on assets and sales vs., 308
supplier’s, 327
targets for, 10 , 267
Prius, 373 n
process:
efficiency and, 50 –51, 52
technology for, 16 –17, 26 , 95
as term, 350 , 351 , 368 n
time for, 62 , 351 , 352
villages for, 128 , 135 , 220 , 232 , 243 , 347 , 351
Procter & Gamble, 282
production,
lean:
acid test of, 151 –88
action plan for, see action plan
cellular assembly in, 10 , 62 , 63 , 112 –15, 117 , 128 –30, 156 –57, 168 , 169 , 173 , 175 , 179 , 183 , 252 , 314 , 323 –26, 347 , 351 , 375 n
conversion to, 10 –11, 12 , 101 –246
cost reductions in, 20 , 26 , 28 , 43 , 45 , 63 , 64 , 80 , 109 , 117 , 217 , 244 , 250 , 251 , 252 , 259 , 266 –67, 268 , 276 , 277 , 280 , 281 –82
egalitarian nature of, 97 , 111 , 268
German example of, 189 –218, 302 –4, 373 n
goals for, 96 –97
hard case for, 125 –50
Japanese examples of, 219 –46, 300 –302, 336 , 373 n
job security and, 115 –16, 122 –23, 133 , 134 , 139 –40, 168 , 179 , 258 , 260
“just do it” approach to, 12 , 129 , 134 , 202 , 261
logistics and, 63 –64
matrix for, 96 –97
“mean” production vs., 16 , 258 , 278 –79
noise and, 59 , 63
order processing in, 24 , 26 , 35 , 44 –47, 52 , 54 –56, 58 , 81 , 194 , 246 , 254 , 255 , 256 , 262 , 268
quality control in, 9 , 27 , 29 , 51 , 54 , 60 –61, 96 , 109 , 115 , 121 , 126 , 134 , 137 , 140 –41, 147 , 149 , 165 , 242 , 249 , 257 , 267 , 268 , 280 , 349 , 351
resources in, 36 , 47 , 85 , 88 , 97 , 144 –47, 179 , 255 , 262
scheduling in, 10 , 58 , 70 , 81 , 186 , 235 , 254 , 256 , 259 , 262 , 348 –49, 351
simple case for, 102 –24
transparency (visual control) in, 21 , 26 , 56 , 61 , 70 , 97 , 117 , 122 , 125 , 139 , 142 , 149 , 180 , 200 , 201 , 217 –18, 228 , 253 , 261 , 263 –64, 268 , 270 , 276 , 353 , 360 n
see also enterprise, lean; lean thinking
production, mass:
automated, 28 , 56 , 60 , 217 , 230 –31, 232 , 239 –41, 243 , 244 , 245 , 268 , 283
batch-and-queue mode used in, 9 , 21 –22, 23 , 27 , 47 , 53 , 65 , 88 , 257 –58, 265 , 267 , 278 , 347 , 352
“brownfields” in, 10 –11, 28 , 261 , 347 , 348
buffers in, 60 , 61 , 112 , 113 , 171
departmentalization in, 10 , 21 , 23 , 24 , 53 , 56 , 112 , 286
errors in, 15 , 27 , 43 , 61 , 96 , 115 , 121 , 137 , 149
final assembly in, 20 , 22 , 23 , 26 , 56 , 80 , 93
“greenfields” in, 10 , 28 , 217 , 347 , 348
inventory in, 67 –68, 72 –74
in lean global strategy, 332 –36
management in, 10 , 16 , 17 –18, 44 , 53 –54, 141 –42, 147 –48, 173 –74
quotas for, 114
scheduling in, 55
volume in, 22 –23, 103 , 104
products:
categories of, 335
customized, 104 –5, 106 , 107 , 118 , 216 , 224 , 225 , 230
definition of, 32 –34
design of, 16 , 24 , 30 –31, 32 , 40 , 52 , 53 –54, 55 , 60 , 63 , 93 , 107 –8, 118 , 119 , 154 , 226 –27
development of, 9 , 10 , 21 , 26 , 27 , 31 –32, 35 , 37 , 47 , 48 , 52 , 53 –54, 102 , 110 , 112 , 118 –21, 140 –42, 147 , 148 , 150 , 242 , 245 –46, 250 , 251 –52, 255 , 256 , 257 , 259 , 262 , 266 , 268 , 301 –2, 308
discounting of, 24
distribution of, 42 , 55 , 72 –82, 85 –87
duplication of, 245
end, 216
expedition of, 55 , 58 , 63 , 67 –68, 71 , 73 , 75 , 83 , 106 –7, 110 , 119 , 140 , 194 , 220
families of, 23 , 62 , 63 , 95 , 111 , 121 , 135 , 136 , 146 , 147 , 225 , 226 , 238 , 241 , 250 , 252 , 254 , 255 , 256 , 259 , 261 , 263 , 270 , 320 –22, 351
fast-moving, 46
global strategy for, 332 –35
“hit rate” of, 54
launching of, 16 , 24 , 47 –48, 63 , 120 –21, 131
lead times for, 30 , 38 , 58 , 85 , 87 , 107 , 110 , 114 , 121 , 165 –66, 167 , 186 , 237 , 251 , 259 , 266 , 268 , 349 , 351 , 352
margins for, 47
market trials for, 47
reengineering of, 53 , 107 –8, 120 , 194 , 216 , 227
services vs., 36 , 51 , 187 , 259 , 286 , 294
standardized, 232
target costs for, 10 , 35 –36, 141 , 149 , 236 , 267 , 277 , 352 , 357 n
teams for, 10 , 19 , 25 , 31 –32, 53 –54, 55 , 60 –61, 63 , 95 , 96 , 109 , 112 , 114 , 119 –20, 135 –36, 137 , 139 , 141 –42, 143 , 148 , 184 –86, 252 , 278 , 279 , 280 , 321 , 322
throughput times for, 24 , 27 , 54 , 60 , 115 , 121 , 150 , 210 , 240 , 349 , 351 , 352
time-to-market for, 27 , 148 , 165 , 222 , 238 , 251 , 268
variety of, 27 , 31 , 41 , 119 , 124 , 140 , 215 , 226 , 268
profits, 16 , 35 , 54 , 109 , 121 , 125 , 127 , 133 , 136 –37, 138 , 144 , 149 , 150 , 161 , 251 , 258 , 263 , 276
profit sharing, 137 , 144 , 150
progress control boards, 78 –79
promotions, special service, 73 , 81 , 82 , 88
publishing industry, 25
pull, 67 –89, 349
action plan for, 250 , 253 , 254 , 255 , 264 , 314 , 323 –26, 328 –31
customer as source of, 10 , 24 , 27 , 67 , 68 , 76 , 77 , 82 , 83 , 84 , 88 , 94
definition of, 67 , 351
implementation of, 24 –25, 26 , 66 , 67 –89, 126 , 134 , 139 , 217 , 276 , 285
mapping of, 77 , 78 , 80
muda and, 82 , 86 , 90
perfection and, 85 , 92 , 94
punch presses, 135 , 149
PW2037 engine, 163
PW4084 engine, 165
P&W J-57 engine, 160
P&W JT3 engine, 160
P&W JT8D engine, 160 , 163 , 164
P&W JT9D engine, 366 n
Q-Plus Management, 165
Quality Circles, 242
Quality Function Deployment (QFD), 9 , 54 , 140 –41, 147 , 249 , 349 , 351
queue time, 351
Rales, Mitchell, 111 , 130
Rales, Steve, 111 , 130
rearview mirrors, 215 –16
recessions, 305 , 311 , 327 , 336 –37
recycling, 38 , 42 , 43
reengineering movement, 23 –24, 28 , 55 , 97 , 249 , 252
Regional Distribution Centers (RDCs), 45 –47, 359 n
rental car industry, 287 , 293 –94
Rentschler, Frederick, 154
retail formats, innovations in, 310
retirement, 140
retrofitting, 110
Reutter, 190
reverse auctions, 327
revolution, institutionalizing of, 313 –37
rework, 51 , 53 , 54 , 107 , 120 , 160 , 193 –94, 227 , 292
Rich, Nick, 37 n
“road warriors,” 305
robotics, 28 , 232 , 243
roll carriages, 102 –3
rolling mills, 40 , 42 –43, 44 , 135 , 149
Rolls-Royce, 152 , 161 , 180 , 306 , 373 n
Rolls-Royce RB211–535 engine, 163
Rother, Mike, 316 , 327 , 374 n , 375 n
Ryerson, 145
Saab, 373 n
sales:
action plan for, 254 , 256 , 259 , 262
bonuses in, 56 , 58
commissions for, 29
department for, 10
forecasts of, 24 , 252
level selling in, 81 –82, 235 , 349 –50
order processing and, 54 –56
tracking of, 45 –46
volume of, 35 –36
scale economies, 17 , 44 , 49 , 106 , 146 , 232
Schonberger, Richard, 374 n
Schrempp, Juergen, 217
Scott, Bob, 67 –68, 72 , 73 , 75 , 76 , 83
scrap, 26 , 27 , 43 , 52 , 92 –93, 137 , 202 , 244
Seeing the Whole: Mapping the Extended Value Stream (Jones and Womack), 327 , 375 n
Senge, Peter, 88 , 369 n
seniority, 172 , 179
sensei , 69 –71, 128 –30, 169 , 201 –5, 234 , 249 –50, 253 , 254 , 256 , 268 , 269 –70, 314 –15, 322 , 339 , 351 , 361 n , 371 n
ser
vices, 11 , 36 , 46 , 51 , 52 , 187 , 259 , 286 –87, 294
Sewell, Carl, 29
Seyler, Judy, 131 , 132 –33
shareholders, 16 , 138 , 144
Sharma, Anand, 115 , 117 , 338
Shingijutsu, 169 , 182 , 201 , 221 , 338
Shingo, Shigeo, 23 , 243 , 249 , 368 n , 374 n
shipment dates, 55 , 71 , 73
shoe manufacturing, 332 –33, 335
Shook, John, 316 , 327 , 374 n , 375 n
“shop hours,” 151 , 169
Showa Manufacturing Company, 219 –30
batch-and-queue mode used by, 220 , 222 , 225 –26
change agents for, 220 –24
Chinese subsidiary of, 228 , 230
cost reductions by, 226 , 227
creative crisis in, 219 –21
final assembly in, 222
inventory of, 220 , 222 , 224 , 229
layoffs by, 220 , 233
lean production in, 221 –30, 246 , 338
machines used by, 222
management of, 222
market share of, 224 , 228 , 229 , 230
order processing by, 227 –28, 23 0
product development by, 222 , 225 –27, 230 , 252 , 259 , 276
production layout of, 220 , 223
Production Research Department of, 223 , 226
productivity in, 222 , 224 , 229
product teams in, 225 –28, 230
profits of, 229
reorganization of, 225 –26, 230
sales of, 224 , 225 , 229
suppliers of, 244
value stream in, 228
shrink-wrapping, 102
shusa system, 234 –35, 237 –38, 352
Single Minute Exchange of Dies (SMED), 352 , 361 n
single-point billing, 287
Sloan, Alfred P., Jr., 302 , 373 n
smelters, 39 , 41 , 42 , 43 , 44
Snecma, 163
Southwest Airlines, 19 , 288
Spaghetti Chart, 104 , 352
specialization, 50 , 54 , 141 –42
Srock, Rainer, 212
stagnation, economic, 27 –28
stamping presses, 68 , 69 –70
standard-cost accounting, 60 , 136 , 352
steel, 59 , 71 , 84 , 85 , 145 , 156 , 193 , 227 , 241
stereolithography, 87
stockers, 72 –73, 75 , 82 , 83
stock-outs, 45 , 291
storage bins, 72 , 75 –76, 77 , 79 , 110
stretch-wrapping, 41 , 102 –3, 112 , 121 , 123
subcontractors, 26 , 29
Suburu, 373 n
supermarkets, 37 –49
suppliers:
action plan for, 248 , 249 , 252 , 265 –67, 268 , 270 , 327 –32, 371 n –72 n
first-tier, 26 , 46 –47, 59 , 194 , 214 , 235 –36, 237 , 239 , 241 , 243 , 267 , 268
in lean enterprise, 277 , 280 , 282
marginal, 140
margins of, 16 , 282
reduction of, 140 , 143 , 144 –45, 173 , 179 –80, 244