A BOOK SUMMARY Authors: James P. Womack, Daniel T. Jones and Daniel Roos Brazer Bozlak 6850 CMGT / Fall 2015 Farzad Shahbodaghlou 11/05/2015 Introduction This paper is a summary of the bestselling book about the story of Lean Production, based on a five million dollar study about the future of the automobile done by the MIT Institute of Technology. “The Machine that Changed the World” is written as a summary of this research made by James. P Womack, Daniel T. Jones Daniel Roos and their team. The groundbreaking analysis is telling the story of how Japanese companies in the car industry are sweeping the world competition as they transfer from mass production to lean production. It takes the reader through their in depth study of 90 auto assembly plants in 17 countries and their interactions with individual employees, scholar, and union & government officials. The author of this compelling study uncovers the specific manufacturing techniques behind Japan’s extraordinary success in the car industry and how these innovative techniques can be implemented. “The Machine that Changed the World” guides the reader through the fascinating story about lean production and Manufacturing system that results in a better and more cost efficient product, higher productivity and greater customer loyalty. It tells about how critical the use of efficient team work, good communication and efficient use of resources are to produce remarkable results with cars 1/3 less defects and half the
Production practices have had an important role in satisfying the dynamic market. Many approaches have being developed in order to respond effectively to specific business requirements. In fact, some areas of management have focused its study on the overseeing, designing, and controlling the process of production in an effort to find the best methodology that ensures the business success and performance. However, complexities arise in this field because many variables such as costs, inventory, scheduling, suppliers, etc have to be considered in any business. Lean approach and the traditional approach are two points of view that aim to address this complexities, and those will be examined in this essay.
In the book, The Toyota Way, Jeffery Liker provides an in-depth account of, not only the tools and methods of Toyota’s Production System, but also a broader explanation of the principles at work in the Toyota culture. This philosophy of manufacturing can be summarized through two important pillars: “Continuous Improvement” and “Respect for People.” These pillars help define Toyota’s approach to doing business, were the focus is on continuous learning and embracing change. By incorporating this ideology and its 14 principles into its manufacturing operations, Toyota has become the greatest manufacturer in the world. In this essay, I will provide a synopsis of Toyota’s 14 principles and also offer my own account of lean manufacturing at CNH Industrial.
Lean manufacturing is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment tools and less engineering time to develop a new product. A company becomes lean by continuously increasing its capacity to produce high-quality goods while
Countess firms have taken up lean production in their manufacturing process. This is because the process is known to have countless benefits when effectively implemented. For lean production to be effectively implemented, some principles have to be considered. These principles have been discussed in detail in this paper. The different principled in lean production as well as the different principles in effective business communication. How they are related and hence how they lead better production and hence better output from the firm.
The trend of implementing lean technology has grown into a broader spectrum. The Toyota production the TPS were applied where only manufacturing efficiency was the aim. Later in 1970 and 1980’s supply complexity, market and distribution, service was concentrated when the company became more globalized, and the aim was to improve the quality, control over effective process.
Lean Construction is inspired from the Toyota Production. Toyota production provided the Transform -Flow –Value(TFV) philosophy of production in 1950’s.(Koskela, 1992).According to this philosophy the production is not only transformation of the inputs to outputs but there exists a flow of resources and information which seeks to generate
Literature review The implementation of lean manufacturing like any other productivity improvement initiative is believed to harbour enormous difficulties (Denton and Hodgson,
Lean manufacturing originated long before Toyota and Ford, however the thought that it originated with Toyota is flattering since they are the ones who perfected it. By creating the Toyota Production System (TPS), Toyota found a better way to produce large quantities of product efficiently with eliminating the waste factor and while cutting down cost. Taiichi Ohno a former Toyota vice president promoted the idea of JIT (Just-in-Time) which means “producing the necessary units in the necessary quantities at the necessary time.” (Monden) Which leads to Toyota’s ultimate goal in the TPS is to improve productivity for better return in investment. To have continuous flow in a production system Toyota sought out to achieve the concept of JIT and autonomation . Since the TPS is what creates the parts who monitors the JIT system? The kanban system which is an informational system that controls quantities being produce in each process. As the discussion carries on throughout this paper about Toyota and their use of the kanban system the topic
Lean must be brought into the discussion as a possible means of supplementing and strengthening lean manufacturing in situations where its principles may fall short. In this Project we want to emphasize on three methods
Even with the massive amount of research that has taken place into the Toyota Production System, fifty one years after it was born, Slack et al still refer to Lean Manufacturing as a ‘radical departure from traditional operations practice’.
Lean Manufacturing is an approach taken by manufacturing organization to increase efficiency through optimization and maximize customer value while minimizing waste. Traditionally, Lean principles were applied to manufacturing industries especially automotive companies. However, with the success in automotive industry, it no longer limited to automotive sector and can be applied in other manufacturing sectors as well as services industries (Balle, et al., 2006). The drivers for implementing Lean in both manufacturing and service sectors are customer demands for better quality products and services, managerial demands for cost reduction and sustaining in an increasing market competitiveness.
EijiToyado post World War II aimed to augment Toyota worldwide. According to him the manufacturing systems in America would not satisfy his goals. He established Toyota Production System to achieve good quality, flexible output while reducing waste.In today’s world Toyota Production System is known as ‘Lean Production’, a more improved theory and was first made known through The machine thatchanged the world (Womack et al., 1990). ‘Lean projects’ are project’s that delivers a maximum value while creating minimum waste.Lean production includes teams of worker who are multi skilled and are present at all stages in addition use machines that are highly automated to
The concept of lean manufacturing was introduced in Japan, and Toyota Production System was the first company to use it. Lean manufacturing simply follows the notion that the customer will pay for the value of services they receive and they will not pay for the mistakes. It was stated in Challenges in the transformation to lean production from different manufacturing process choice that for Toyota the focal point is not to make money but to generate value for the customers; money follows automatically if the customers are satisfied.
Lean manufacturing is a method of carefully reducing non-value-adding work during production. Value is defined from customer’s perspective as any action or process that the customer will be willing to pay for. Lean manufacturing has been traced to automobile industry – Ford motors in the United States and Toyota motors in Japan(Singh et al., 2010a; Singh et al., 2010b). These companies simplified the processes of making their products by eliminating non-adding-value works. This also led to standardization.
In this paper we will discuss Toyota’s Production System and how it works with the strategy of their business. We will define their mission and visions goals and their core principles as it applies to their company. This paper will also discuss their basic approaches and general practices. It is also important to understand what the Toyota Production System entails and how Lean operations began.