2/24/2021
The Origins of Lean
Discovering the Foundations
1
2
Taiichi Ohno’s version of Industrial Engineering
Theory vs Practice
“In theory, theory and practice are the same, in practice they arenot.”
- Author unknown
Taiichi Ohno had a version of Industrial Engineering that he called
“Moukeru Industrial Engineering” or “Making Industrial Engineering”.
In Japanese, “moukeru 儲ける”means “to make money/profits.”
Meaning “The industrial engineering of making money.”
This what drove the development of the Toyota Production System.
Learning by Doing is the most effective way to learn skills.
3
goo.gl/PGK4Ua
Link to Toyota’s original 1973 TPS Manual
4
1
2/24/2021
Lean – Today
Thousands of books about
lean have been published.
2018
Now
Where do you start to learn about lean?
5
6
The Observers Dilemma
What is Lean?
What you see.
What you try to understand.
1/8 is visible
What you write about.
The secret structure of the
system that creates the
effects that you observe.
Thousands of books
7
7/8 is hidden
8
2
2/24/2021
Most of what is written aboutToyota
is what they look like today
Student’s dilemma - learning how to create a production system like Taiichi Ohno did for Toyota
9
John Shook - Executive Chairman,
Lean Enterprise Institute and Lean
Global Network
I believe the spread of lean
has been both a matter of
diffusion and of dilution.
I would add that, along
with the dilution, there’s
been more than a little
delusion, aided by
consultants selling things
under the name of “lean”
that are far from the
original intent of the
thinking, system…
10
Toyota Kata – Invented 2009
Even Toyota Changes
Finish
New Line Layout 2014
The “Toyota Kata’s“ are
a blend of how many
older Toyota experts
apply their skills.
Start
None of the Toyota masters
use the Toyota Kata.
About 1992
Illustrations courtesy of Christoph Roser
11
Behaviors of Sensei’s after
years of using the TWI skills
12
3
2/24/2021
Leader Standard Work – Reinvented about 2005
Toyota’s Expectations for their Leaders
Pages 227-231 in
the Toyota Way
Fieldbook outlines
what Toyota expects
of their employees
for a typical day.
This is refined for
specific positions.
Existed before consultants invented something else to sell managers.
American Insurance Companies developed it about 1950 from the Job
Instruction program and applied it to their management functions.
13
Origins of defining expectations
started with the TWI programs.
14
“Toyota Way 2001”
Value Stream Mapping – Invented 1999
Toyota did not use this
tool inside the factory
Toyota’s 30 page summary in 2001 triggered
Professor Jeffery Liker to write with his
graduate students, their understanding of
Toyota’s principles.
First draft had about 30 principles
defined. Publisher insisted it needed
to be reduced, so they matched
Deming’s 14 Quality Principles.
The Toyota Way 2001 clarifies the values and
business methods that all employees should
embrace in order to carry out the Guiding
Principles at Toyota throughout the
company's global activities.
15
Mike Rother and John Shook
created a new tool for lean better
be able to see materials and
information flows.
The book became a best seller since
publication in 2004.
Adapted from a tool to map
information and material
flows from suppliers
16
4
2/24/2021
Reasons Why
Invention of 5S/6S by Consultants
Ohno complained that the
supervisors had turned 4S into
a “lining up”competition
1973 TPS Manual
1989 TPS Handbook
Ford’s CANDO, probably
invented before 1920.
It originated as
part of a checklist
in Job Methods
Russia – 1920’s
5S training was a ‘money tree’
for consultants
17
18
Ohno’s Wastes List Expands
Easy for them to be
accidently successful
without knowing why.
How your effort is spent:
Adding Value
Makes it easy to look
like an expert.
Poor Layouts
Transforming
Step
Spending Money
and Adding Costs
Poor part presentation
Piling up work
Baby-Sitting
Machines
4 – Wastes1973
These were for helping people discover
the symptoms to disruptions in flow
Looking for part (in
the pile or bin)
1978
Loading tray to move
to next operation
Work-Arounds
(people adapting to quality
and machine issues)
Walking
Rework - Sorting
Lean is not about getting rid of waste,
it is about creating flow
19
7 - Wastes
Unpacking –
unwrapping parts
Repacking
Part of Lean is removing
‘UnnecessaryActivity’
To effectively and efficiently deliver the product or service to the customer.
Lean is not about working harder or faster.
20
5
2/24/2021
Lean – 1988 to 1990
Kaizen Institute Consulting Group – Founded 1986
Masaaki Imai – worked at the Japanese Productivity
Center in the 1950’s organizing visits by Japanese
businessmen to see American plants.
Public introduced to the term ‘lean’
to describe Japanese methods,
specifically Toyota in 1990.
1988
1990
2018
Now
IMVP Study – Phase 1, 1979-90
Only one grad student visited
all 70 factories in the study
In 1988 the term of ‘lean’
coined to describe Toyota’s
production system.
Published “Kaizen: The Key To Japan's Competitive
Success” in 1986 to promote what he had learned
working with Japanese businessmen.
Thousands of
books about
‘Lean’ have
been published.
No connections with Toyota
21
22
NUMMI - 1984
John Krafcik –
Toyota’s first
American engineer
Lean – 1970’s and 1980’s
John Shook –
Toyota’s first
American employee
The term of
‘lean’ coined to
describe Toyota’s
production
system.
Industrial tourism to try to
understand the Japanese secrets
1980
1988
1990
2018
Now
Only researcher that
visited all 70 auto
plants in IMVP study.
23
Toyota turned around GM’s worst plant
starting with Job Instruction
By 1980, it seemed to the Americans and
Europeans that the Japanese could take any
market they entered. We struggled to
understand how they were succeeding.
Has co=authored many
‘lean’ books.
Was CEO of the Lean
Enterprise Institute (LEI)
Thousands of
books about
‘Lean’ have
been published.
Public introduced to
the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
24
6
2/24/2021
Lean – 1970 to 1973
Toyota shares their system with suppliers
1970 – started assisting
their 1st tier suppliers
The term of
‘lean’ coined to
describe Toyota’s
production
system.
1970
1973
1980
1988
1990
Industrial
tourism to try to
understand the
Japanese secrets
Toyota’s first
TPS manual
1970 - Toyota’s starts sharing
their production system secrets
with a select group of suppliers
1973 –1st TPS Manual
2018
Now
TPSManual
1973
Thousands of
books about
‘Lean’ have
been published.
Public introduced to
the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
25
26
Kanban = Virtual Conveyor
Lean – 1966 to 1968
Toyota’s first
sharing of their
productionsystem
secrets with a
select group of
suppliers
1967
1970
1973
Kanban is one of the tools that make JIT function
1965 - kanban adopted for ordering outside
parts, 100% supply system, began teaching
Toyota system to affiliates
The term of
‘lean’ coined to
describe Toyota’s
production
system.
1980
1988
1990
Industrial
tourism to try to
understand the
Japanese secrets
Flow where you can,
Pull where you can’t.
- Taiichi Ohno
2018
Now
Line
Thousands of
books about
‘Lean’ have
been published.
Taiichi Ohno considers his
production to be stable
1953 - supermarket system
in machine shop
Line
Customer
Line
Line
Toyota’sfirst
TPS manual
27
1962 - kanban adopted company wide
(machining, forging, body assembly, etc.)
Public introduced to
the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
Process Grouping - BatchProduction
The Kanban is the ‘pull’
system that you implement
where you can’t create flow
28
7
2/24/2021
Kanban – getting ready to Synchronize
Progressive Kanban Implementation
1965 - Kanban adopted for ordering outside
parts, 100% supply system, began teaching
Toyota system to affiliates
The next stage was connecting the
suppliers like the lines had been
synchronized.
1949 - Intermediate warehouses abolished (secondary storage
locations)
Kanban Rules
1950 - Machining and assembly lines synchronized - visual control and
andon system adopted in engine assembly
1962 - Kanban adopted company wide
(machining, forging, body assembly, etc.)
1955 - Assembly and body plants linked - main plant assembly line
production system (Andon, line stop, mixed load and automation
 autonomation)
Step by step, additional lines were
setup on the kanban system, then
connected with each other
1953 - Supermarket system in machine shop
1948 - Withdrawals by subsequent processes
(upstream transport)
Starting point… testing the idea
There are many more guidelines to setting up a
kanban system. It is more than a set of cards, it
can be any method of communicating and
limiting the WIP.
29
1958 - Warehouse withdrawal slips eliminated
30
Synchronizing Multiple Operations
Quick Die Change (QDC) - 1962
This does not show the
external suppliers to each area
American technology
limited demand in the
US, sold well in Japan
Transporting parts to a warehouse between work
areas is an unnecessary activity to be avoided.
This requires synchronizing sequential departments.
Image courtesy of Art Smalley
Buffers are used when the velocity is different
between operations. Large buffers hide problems.
Toyota Brazil contributes to
the improvement process.
Ohno’s Kanban tool has the whole factory function asif it is a connected by conveyors. 40
31
Shingo claims to have
invented the process at
Toyota in 1970.
Names it SMED.
32
8
2/24/2021
Lean – 1955 to 1957
TWI usage about 1960
Toyota’s first
sharing of their
productionsystem
secrets with a
select group of
suppliers
TWI programs
start spreading
around the world.
1956
1970 1973
It took Toyota 5
years to catch up
their productivity
to the USA
TWI programs in countries as of 1960
1980
1988
1990
Industrial
tourism to try to
understand the
Japanese secrets
Taiichi Ohno
considers his
productionto
be stable
Restart again
about 2005.
33
1967
The term of
‘lean’ coined to
describe Toyota’s
production
system.
Toyota’sfirst
TPS manual
2018
Now
Thousands of
books about
‘Lean’ have
been published.
Public introduced to
the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
34
Toyota’s Growth Creates Problems
Catch up Productivity
Learned customer focus
from GM in the1930’s
The goal to catch up was driven by what he
experienced at Ford’s River Rouge Plant
35
Growth in customer demand strained the
ability of the production system to deliver
36
9
2/24/2021
Lean – 1955
How to Manage the Growth
Shigeo Shingo starts teaching
‘P Course’ at Toyota
Shingo starts teaching
P – Course
1955 - 1980
1955 - 1980
236,005
Basic Industrial
Engineering
7,398
Toyota’s first
sharing of their
productionsystem
secrets with a
select group of
suppliers
First University IE
Program in Japan
started in 1951
1956
1967
Toyota
productivity
catches up to
the USA
Taiichi Ohno
considers his
productionto
be stable
1970 1973
The term of
‘lean’ coined to
describe Toyota’s
production
system.
1980
1988
1990
Industrial
tourism to try to
understand the
Japanese secrets
Toyota’sfirst
TPS manual
2018
Now
Thousands of
books about
‘Lean’ have
been published.
Public introduced to
the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
~35% annual compounded increase
37
38
Getting to Standard Work
Basic IE skills needed to create standard work
Time Study + Layout + Inventory + TWI
39
40
10
2/24/2021
Lean – 1951
Eiji Toyoda works for
3 months at Ford’s
River Rouge Plant
1951
Toyota’s first
sharing of their
productionsystem
secrets with a
select group of
suppliers
1970 1973
1956
1967
Toyota
productivity
catches up to
the USA
Taiichi Ohno
considers his
productionto
be stable
Gap between Ford and Toyota - 1950
Productivity Comparison
The term of
‘lean’ coined to
describe Toyota’s
production
system.
1980
1988
1990
Industrial
tourism to try to
understand the
Japanese secrets
2018
Now
Thousands of
books about
‘Lean’ have
been published.
The Productivity Gap was why
Taiichi Ohno needed to develop
a better production system
Public introduced to
the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
Toyota’sfirst
TPS manual
41
42
Lean – 1951
TWI Programs
Introduced
Toyota’s first
sharing of their
productionsystem
secrets with a
select group of
suppliers
Eiji Toyoda works for
3 months at Ford’s
River Rouge Plant
1951
1956
1967
Toyota
productivity
catches up to
the USA
Taiichi Ohno
considers his
productionto
be stable
1970
1973
1951 TWI Introduced
The term of
‘lean’ coined to
describe Toyota’s
production
system.
1980
1988
1990
Industrial
tourism to try to
understand the
Japanese secrets
Toyota’sfirst
TPS manual
43
Stop Doing List
Common
Needs
Transferable
Skills
Every
Organization
is Different
Specialized
Knowledge
2018
Now
Thousands of
books about
‘Lean’ have
been published.
Public introduced to
the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
44
11
2/24/2021
Building Ohno’s Production System
TWI skills
Principles of Flow
1.
2.
3.
4.
The System Evolves
Put Processes in Sequence
Synchronize Processes
Balance Work Content
Balance Work Pace
Job Instruction
Job Relations
Job Methods
+
=
Ohno observed Flow in the 1930’s
Experimented with implementing Flow
Studied Ford’s methods
The objective is to achieve flow = Ohno’s “River System”
45
46
Lean – 1950
1950 Toyota’s financial
crisis and labor strike
Toyota’s first
sharing of their
productionsystem
secrets with a
select group of
suppliers
Eiji Toyoda works for
3 months at Ford’s
River Rouge Plant
1951
1956
1967
TWI introduced.
Toyota
productivity
catches up to
the USA
Taiichi Ohno
considers his
productionto
be stable
Ohno starts strong
effort to develop
productionsystem.
1970
1973
First level skills – Focus on People
Illustration from
Job Relations
training
The term of
‘lean’ coined to
describe Toyota’s
production
system.
1980
1988
1990
Industrial
tourism to try to
understand the
Japanese secrets
47
Toyota’sfirst
TPS manual
Union demands “Respect for People” –
settlement with Toyota adopting the
TWI programs.
2018
Now
Thousands of
books about
‘Lean’ have
been published.
Focus on catching
up to America
The banks force Toyota to
spin off the sales group
into a separate company
“People must be
treated as
individuals”
Toyota’s “Respect for
People” originated
with this program
Public introduced to
the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
48
12
2/24/2021
Leaders must work with others
TWI (Kaizen) Introduced to Japan
US Army promotional film for
the TWI programs
‘Kaizen eno Yan Danksi’
Illustration from
Job Relations
training
All results are
through people
US Army funds the
TWI training
program in 1951
‘Kaizen includes all TWI programs
49
50
Lean – 1947 to 1950
Lean – 1950 - Just-in-Time
Banks controlled
Toyota Motor Sales
Japan Ministry of Labour starts pilot
program with Job Instruction
No sales equaled no
money to buy parts
1.
2.
3.
This forced ‘Just-in-Time’
purchasing of the parts
Nissan Motor Company
Train Depot
Textile company
First TWI manuals supplied by the British about 1947.
First trainer sent to India to learn Job Instruction
TWI programs
established in
Japan
1951
US Army funds the TWI
training program in 1951
The ‘Just-in-Time’ idea was
copied from Ford’s Progressive
Production System
51
52
13
2/24/2021
TWI – 1945 - 1947
Lean –1940 - 1945
TWI programs
established in
Japan
1945
TWI programs
established in
Japan
1951
1945
1940
TWI programs
start spreading
around the world
1951
TWI programs
start spreading
around the world
TWI Service established.
Development of training
programs for industry.
TWI use begins to spread as industry and governments
realize it increases their competitiveness
53
54
Ohno’s Objective is to Create Flow
Lean – 1930 to 1945
Ohno has 15 years of experimenting and
copying Ford before he adds the TWIskills
Taiichi Ohno sees his first
factory organized for flow
(Nichibo Spinning)
1935
Product focused layout, small
lot production, doing things
right the first time
…to a system that
flowed smoothly
TWI programs
established in
Japan
1940
1945
TWI Service
established.
Development of
trainingprograms
TWI programs
start spreading
around the world
1951
Ohno starts experimenting
with introducing Flow at
Toyoda Spinning, then at
Toyota’s machining plant
55
From a system with
disruptions and obstacles
56
14
2/24/2021
Lean – Andon developed 1930
Gilbreth’s Work Simplification
Andon not invented in Japan
First recorded ‘Andon’ system
Ohno experiments
with introducing
Flow at Toyota
1931
TWI programs
established in
Japan
1935
1940
1945
Taiichi Ohno sees
first factory
organized for
flow
TWI Service
established.
Development of
trainingprograms
TWI programs
start spreading
around the world
Sweating
1951
Operators instructed to stop the line when
they have problems so supervisors can help.
Thinking
‘Speeding up’ the
line is limited to
human strength
Central control station has signals showing
which station is stopped.
There is no limit
on our creativity
Manager and maintenance sent to investigate
problems lasting more than 2 cycles.
57
58
Lean – Reorganizing for Flow
Lean – 1910 to 1920
1917 - First factoryreorganized
for flow in Japan
Flow Principles become
known around the world
Ohno experiments
with introducing
Flow at Toyota
1920
1931
Factories around the world
are reorganized asthe
technique is publicized.
First recorded
‘Andon’system
59
TWI programs
established in
Japan
1935
1940
1945
Taiichi Ohno sees
first factory
organized for
flow
TWI Service
established.
Development of
trainingprograms
TWI programs
start spreading
around the world
Germans synchronize
factories to a ‘beat’ (Takt)
Flow Principles
become known
around the world
1913
1951
10x productivity
increase
1920
Ohno experiments
with introducing
Flow at Toyota
1931
First recorded
‘Andon’system
TWI programs
established in
Japan
1935
1940
1945
Taiichi Ohno sees
first factory
organized for
flow
TWI Service
established.
Development of
training programs
TWI programs
start spreading
around the world
1951
Flow experiments continued
– assembly line introduced
Earlier production lines existed
Westinghouse had a powered production line for casting operations – 1890’s
A railroad car manufacturer had a rolling production line – 1880’s
60
15
2/24/2021
Lean – 1903
Lean – 1906-8
10x
productivity
increase
Walter Flanders arrives at Ford’s plant – reorganizes for flow
First 12 months increases production from 1,600 to 10,000 cars
Flow Principles
become known
around the world
1906
1913
1920
Ohno experiments
with introducing
Flow at Toyota
1931
1907 – Sold
14,000 cars!
Flow experiments
continue – assembly
line introduced
First recorded
‘Andon’system
TWI programs
established in
Japan
1935
1940
1945
Taiichi Ohno sees
first factory
organized for
flow
TWI Service
established.
Development of
trainingprograms
TWI programs
start spreading
around the world
Walter Flanders
arrives at Ford’s plant
– reorganizes for flow
1951
1903 1906
Walter Flanders taught a small group of people the
principles of flow.
They were responsible for the continuing productivity
gains and developing the assembly line,
61
Flow Principles
become known
around the world
1913
Flow experiments
continue – assembly
line introduced
1920
Ohno experiments
with introducing
Flow at Toyota
1931
TWI programs
established in
Japan
1935
1940
1945
Taiichi Ohno sees
first factory
organized for
flow
TWI Service
established.
Development of
training programs
TWI programs
start spreading
around the world
1951
First recorded
‘Andon’system
62
Lean is about organizing space and time
to produce the greatest results with the
least effort.
Successful Improvement Programs
Have a leader thatcreates an environment where innovation can happen
Henry Ford
(with resources like time, money, materials,labor)
James Couzens
Charles Sorensen
Max Wollering
Harold Wills
Oscar Barnholdt
Carl Emde
William Knudsen
• Creating Flow was Ohno’s original objective
• It was desired as a ‘competitive advantage’
• Principle of Least Action
Nature has developed
efficient systems
Taiichi Ohno
Yukio Arima
Itsuo Mamiya
Kikuo Suzumura
Takeo Watanabe
Masanobu Morita
List courtesy of Art Smalley
Key men in Ohno’s machine shops
A successful Industrial Engineer is part of a team.
Like the ant or bee
paths that over time
discover optimal routes
63
Ford starts his
3rd car company
Ford loses 2nd car company,
It is renamed Cadillac
Success is a team sport
64
16