Fundamentals of lean Professor Deborah Nightingale September 9, 2002 Deborah Nightingale 2002 Massachusetts Institute of Technology
Deborah Nightingale © 2002 Massachusetts Institute of Technology 1 Fundamentals of Lean Professor Deborah Nightingale September 9, 2002
ean is a New Approach to Managing Enterprises Origin and evolution of lean concepts Core lean principles practices How lean differs from craft and mass production models of industrial organization >Lean implementation steps Value stream mapping Deborah Nightingale 2002 Massachusetts Institute of Technology
Deborah Nightingale © 2002 Massachusetts Institute of Technology 2 Lean is a New Approach to Managing Enterprises ¾ Origin and evolution of lean concepts ¾ Core lean principles & practices ¾ How lean differs from craft and mass production models of industrial organization ¾ Lean implementation steps ¾ Value stream mapping
Lean was Born out of Necessity: How to Withstand the mass production behemoths On August 15, 1945--end of war with Japan- Toyota faced a daunting challenge: How to succeed against Western mass production auto giants poised to enter Japanese market? Kiichiro Toyoda to taichi ohno(father of lean production ): Catch up V Ohr biting cen Jap dep Lean evolved as a coherent response to this challenge over a number of decades-a dynamic process of learning and adaptation later labeled as "lean production by Western observers Deborah Nightingale 2002 Massachusetts Institute of Technology
Deborah Nightingale © 2002 Massachusetts Institute of Technology 3 Lean was Born out of Necessity: How to Withstand the Mass Production Behemoths ¾ On August 15, 1945 -- end of war with Japan -- Toyota faced a daunting challenge: How to succeed against Western mass production auto giants poised to enter Japanese market? ¾ Kiichiro Toyoda to Taiichi Ohno (father of lean production): “Catch up with America in three years.” ¾ Ohno’s challenge: How to design a production system exploiting central weaknesses of mass production model ¾ Japan faced many dilemmas: small & fragmented market, depleted workforce, scarce natural resources, little capital ¾ Lean evolved as a coherent response to this challenge over a number of decades -- a dynamic process of learning and adaptation later labeled as “lean production” by Western observers
Lean Response: Use Less of Everything, Ofer Greater Variety of Higher Quality More Affordable Products in less time Best Japanese auto companies developed a fundamentally different way of making things These companies changed the dynamics of international competition New goals in manufacturing systems combined benefits of craft and mass production Improved quality High productivi Efficiency at low volumes Production flexibility Rapid, efficient development cycle Product mix diversity Lean production contrasts with traditional mass production paradigm Systemic principles are transferable Deborah Nightingale 2002 Massachusetts Institute of Technology
Deborah Nightingale © 2002 Massachusetts Institute of Technology 4 Lean Response: Use Less of Everything, Offer Greater Variety of Higher Quality & More Affordable Products in Less Time ¾ Best Japanese auto companies developed a fundamentally different way of making things ¾ These companies changed the dynamics of international competition ¾ New goals in manufacturing systems -- combined benefits of craft and mass production ¾ Improved quality ¾ High productivity ¾ Efficiency at low volumes ¾ Production flexibility ¾ Rapid, efficient development cycle ¾ Product mix diversity ¾ Lean production contrasts with traditional mass production paradigm ¾ Systemic principles are transferable
What is Lean Thinking? The removal of muda! Muda- Is a Japanese word for waste Waste- any activity that absorbs resources creates no value! Source: Lean Thinking by Womack Jones Deborah Nightingale 2002 Massachusetts Institute of Technology
Deborah Nightingale © 2002 Massachusetts Institute of Technology 5 What The removal of muda! Muda- Is a Japanese word for waste Waste- any activity that absorbs resources & creates no value! Source: by Womack & Jones is Lean Thinking? LeanThinking