second-tier, 82 , 237 , 239 , 241 , 267
third-tier, 241
surge protectors, 125 , 126
SUVs, 301 , 373 n
Suzumura, Kikuo, 243
“systems integrator,” 167
Takenaka, Akira, 128 , 129 –30
takt time, 55 –56, 63 , 70 , 114 , 117 , 122 , 139 , 149 , 227 –28, 348 , 349 , 352 , 359 n –60 n
TBM, 338
technology:
appropriate, 81
complex, 188
democracy and, 111
development of, 27 –28, 270 , 295
information, 310 , 327
“key,” 146 , 225
process, 16 –17, 26 , 95
Tele-Power Poles, 135 , 136 , 141 , 142
Tesco, 37 –49, 51 , 94 , 357 n –58 n , 359 n , 374 n
titanium, 20 , 55 , 59
“to do” lists, 29 , 30 , 292
tools, see machines
Total Productive Maintenance (TPM), 60 , 149 , 244 , 322 , 353 , 374 n
Total Quality Control (TQC), 242 , 322
Total Quality Management (TQM), 29 , 51 , 109 , 126 , 134 , 141 , 165 , 242 , 322
Toyoda, Eiji, 234
Toyoda, Gosei, 219 , 221 , 235
Toyoda, Kiichiro, 231 , 233 , 236
Toyoda, Sakichi, 231 , 347
Toyoda Spinning and Weaving, 219 , 221
Toyota Corolla, 237
Toyota Corona, 72 , 237
Toyota Crown, 235
Toyota Daily Ordering System (TDOS), 79 , 8 0
Toyota Motor Corporation, 230 –46
automation at, 230 –31, 239 –41, 243 , 244
batch-and-queue mode used by, 231 , 233 , 237 , 241
cells used in, 232
chief engineer at, 322
competition of, 215 , 217 , 251
cost reductions by, 236 , 237 , 241
creative crisis in, 233
customer relations of, 235 , 238 , 241 , 244
Daily Ordering System of, 302
dealerships of, 67 –68, 73 , 74 , 76 , 81 –86
flow in, 240 , 242
Global 10 initiative of, 300
homebuilding by, 372 n
inventory of, 72 –87, 176 , 232 , 237 , 255 , 361 n , 374 n
JIT implemented by, 58 , 70 , 127 , 231 , 234 , 236
labor unions of, 233
layoffs by, 233 , 234
lean production developed by, 9 –10, 49 , 61 , 69 –71, 77 , 82 , 128 , 168 , 219 , 220 , 221 , 230 –46, 271 , 370 n
lean thinking disseminated by, 69 –71, 128 –30, 242 –44
Local Distribution Centers (LDCs) of, 85 –86
management of, 231 , 233 , 234 , 326 , 336
market share of, 237 , 243 , 300 –301
Miyata plant of, 240
modular system used by, 51
Motomachi plant of, 234 , 240
Operations Management Consulting Division (OMCD) of, 236 –37, 268 , 323 , 361 n
order processing by, 231 , 237
Parts Distribution Center (PDCs) of, 72 –82, 83 , 84 , 85 , 86 –87, 255 , 302 , 361 n
Parts Redistribution Center (PRC) of, 74 , 79 , 84 , 85
performance chart for, 239
product development in, 197 , 231 , 234 –35, 237 –38, 301 –2, 352
productivity at, 239
pull in, 67 –68, 231 , 232 , 238 , 339
quality control in, 231 , 238 , 242
sales of, 85 , 233 , 234 , 235 , 237 , 241 , 303
sensei of, 69 –71, 128 –30, 234 , 314 –15
shusa system of, 234 –35, 237 –38, 352
steady advance of, 300 –302, 373 n , 374 n
suppliers of, 194 , 221 , 234 , 235 –37, 239 , 241 , 243 –44, 255 , 266 –67, 302 , 339
Supplier Support Center (TSSC) of, 339
Tahara plant of, 80 , 239 –40
“2010 Global Vision” of, 300
value specification in, 17
value stream of, 232 , 233 , 239 , 241 , 321 –22
Toyota Motor Sales (TMS), 85 , 235 , 237 , 339
Toyota Production System (TPS), 72 , 74 , 128 , 221 , 231 , 234 , 236 , 237 , 240 , 242 –43, 322 , 374 n –75 n
Toyota Publica, 237
Toyota RAV4 vehicle, 240 –41
Toyota RX300, 373 n
Toyota Supra, 197
trade protection, 335
transparency, 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
travel industry, 15 , 32 –34, 43 , 286 –89, 293 –94, 373 n
“treasure hunts,” 83 , 180 , 202
turbine blades, 161 , 164 –65, 174 , 175
turn-back analysis, 182 , 353
Twin Wasp engine, 155
Underwood, Bob, 109 , 114 , 116
unions, labor, 124 , 125 , 129 , 139 , 140 , 150 , 198 , 199 , 202 , 206 –7, 21 6
Unipart Group, 251 , 264 , 339
Unipart University, 264
United Technologies Corporation (UTC), 151 , 152 , 168 , 170 , 182 , 249 , 308 , 338
value, 29 –36
cost and, 218
creation of, 16 , 20 , 23 –24, 25 , 38 , 43 , 93 , 131 , 132 , 133 , 187 , 253 , 265 –66, 276 , 280 , 327 , 349 , 350
customer’s definition of, 16 , 18 , 28 , 29 –36, 93 , 123 , 217 –18, 252 –53, 262 , 291 –92
specification of, 10 , 16 –19, 25 , 28 , 29 –36, 52 , 54 , 89 , 94 , 112 , 217 , 276 , 277 , 291 –92, 293
as term, 353
value stream, 37 –49
action plan and, 252 –53, 254 , 255 –56, 262 , 264 , 270 , 271 , 315 , 316 –22
application of, 48 –49, 85
control of, 47 , 135 –36
created demand in, 72 –73
Current State and, 316 –20, 321 , 323 , 325 , 327 –32
definition of, 19 , 353 , 355 n –56 n
extended, 327 –31
firm-to-firm relations in, 20 –21, 93
functional needs and, 54
Future State and, 318 –20, 321 , 323 , 328 –30
Ideal State and, 331 –32
identification of, 10 , 11 , 19 –21, 25 , 36 , 37 –49, 52 , 89 , 94 , 112 , 139 , 217
in lean enterprise, 275 , 277 , 278 , 281 , 283 , 285
management of, 321 –22, 323
mapping of, 37 –38, 39 , 42 , 315 , 316 –20, 327 –32, 353 , 375 n
perfecting of, 319
realignment of, 12 , 25 , 42 –43, 85 , 93 , 94 , 134 –36, 292
reorganization by, 320 –23
variance analysis, 137
vehicle off road (VOR) system, 73 , 75
Vietnam, 333
visual control, 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
Volkswagen, 49 , 191 , 215 , 216 , 277
Volkswagen Beetle, 189 , 190
Volkswagen Golf, 216
Volvo, 337 n
wage costs, in global strategy, 332 –34
Wal-Mart, 55 , 282
Ward, Carlton, 164 , 166
Wasp engine, 155 , 156 , 365 n
Wasp Junior engine, 155
Wasp Major engine, 365 n –66 n
Weiner, Bob, 174 , 180 , 368 n
welding, 20 , 70 , 113 , 160 , 227
Westinghouse, 159
Whitney, Amos, 153 , 154
Wiedeking, Wendelin, 189 , 197 –201, 202 –3, 205 , 210 –11, 214 , 248 , 313
Wilson, Doyle, 29 –31, 51 , 292 , 356 n
wire guides, 31 –32, 51
Wiremold Company, 125 –50, 373 n , 374 n
acquisitions of, 126 , 146 , 147
batch-and-queue mode used by, 126 , 127 , 131 , 137 , 142 –43, 145 , 146 , 147
box score of, 148 –50
buyout offer accepted by, 299
change agent for, 125 , 269
cost reductions by, 32 , 1
27 , 136 , 137 –38, 145
customer satisfaction and, 126 , 127 , 137
“de-layering” of, 131 –33, 135
delivery times for, 137 , 142 , 143 –44, 148
departments of, 31 , 131 , 135 , 139 , 141 –42
employees of, 125 , 131 , 133 , 134 , 137 , 144 , 150 , 263
engineers of, 31 , 32 , 142 , 146
growth strategy of, 145 –48, 149
inventories of, 137 –40, 143 , 146 –47
JIT Promotion Office (JPO) of, 139 , 223
JIT system used by, 126 –27, 139 , 144 , 145 , 149 , 223
labor unions of, 125 , 139 , 140 , 150
lean production in, 127 –50, 153 , 168 –69, 217 , 226 , 363 n
management of, 131 –32, 147
market share of, 259
muda eliminated by, 134 , 146 –47
order processing by, 131 , 142 –44, 147 , 148 , 149
product development in, 31 –32, 51 , 131 , 135 –36, 140 –42, 147 , 148 , 149 , 150
production layout of, 132 , 133 , 135 , 147
sales of, 125 , 127 , 131 , 137 , 140 , 146 , 147 , 149 , 150
scoreboards used by, 136 –37
space reductions by, 147 , 149 , 150
steady advance of, 299
work:
flow of, 64 –66, 78 –79, 120 , 122 –23
rethinking of, 52
standardization of, 54 , 60 , 113 , 114 , 115 , 122 , 139 , 142 , 180 , 352 , 360 n
work-in-process (WIP), 363 n
World War II, 158 –59, 164
Wright Aeronautical Corporation, 154
Wright Whirlwind engine, 154 , 155
www.lean.org , 340
www.leanuk.org , 340
Yamamoto, Tetsuo, 219 , 220 –21, 225
yen, 17 , 225 , 243 , 372 n
Zabaneh, Jose, 110 –11, 115
zero setup, 352
About the Authors
JAMES P. WOMACK is president and founder of the Lean Enterprise Institute (www.lean.org ), a nonprofit education and research organization based in Brookline, Massachusetts. LEI is devoted to promoting lean thinking by presenting lean knowledge in workbook formats and teaching this knowledge in a variety of venues.
DANIEL T. JONES is chairman and founder of the Lean Enterprise Academy (www.leanuk.org ), a nonprofit education and research organization based in the U.K. The Academy shares the mission of the Lean Enterprise Institute in the U.S. of raising lean consciousness and making lean knowledge available in a variety of formats.
* This chapter is based largely on a case study developed by Nick Rich of the Lean Enterprise Research Centre, Cardiff Business School. We are grateful for his help.
* In preparing this chapter we are deeply indebted to George Koenigsaecker, president of the Hon Company, for sharing his experiences and his unpublished essay, “Lean Production—The Challenge of Multi-Dimensional Change” (1995). Because Koenigsaecker has now implemented lean techniques in a number of organizations in different industries, his perspective has been invaluable.
* This chapter elaborates on ideas first presented in James P. Womack and Daniel T. Jones, “From Lean Production to the Lean Enterprise,”Havard Business Review, March–April 1994, pp. 93–103 .
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