The Origins of Lean

Discovering the Foundations

HUST – Hanoi University of Science and Technology

My background – engines and fuel systems

Turbo subassembly feeding engine line Bosch – typical Rexroth assembly stations and automation
 Manufacturing Variations
Products and Volumes
Very many Many
Many Several One product;
products; products;
products; low products; high very high
single order medium
volumes volumes volume
flow of each volumes
Functional
layout; flow Job
extremely Shop
varied
Layout and Material Flows

Cellular layout;
Batch
flow varied
with patterns Flow

Operator
Toyota’s
Line flow;
operator Paced Production
paced, flow Line System
mostly regular
Flow
Line flow; Equipment
equipment
paced, flow
Paced Line
regular Flow

Continuous Continuous
flow; flow rigid Flow

Source: J. Miltonburg,
“Manufacturing Strategy”, 1995 pg. 31
 Theory vs Practice
“In theory, theory and practice are the same, in practice they are not.”
- Author unknown

Learning by Doing is the most effective way to learn skills.

Taiichi Ohno’s version of Industrial Engineering

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.

goo.gl/PGK4Ua
Link to Toyota’s original 1973 TPS Manual
 Lean – Today

Thousands of books about

lean have been published.
2018

Now

Where do you start to learn about lean?

 What is Lean?

Thousands of books
Modern Lean Books
 The Observers Dilemma
What you see.
What you try to understand.
1/8 is visible
What you write about.

The secret structure of the 7/8 is hidden

system that creates the
effects that you observe.
Most of what is written about Toyota
is what they look like today

Student’s dilemma - learning how to create a production system like Taiichi Ohno did for Toyota
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…
 Even Toyota Changes
Finish

New Line Layout 2014

Start

About 1992
Illustrations courtesy of Christoph Roser
 Toyota Kata – Invented 2009

The “Toyota Kata’s“ are

a blend of how many
older Toyota experts
apply their skills.

None of the Toyota masters

use the Toyota Kata. Behaviors of Sensei’s after
years of using the TWI skills
 Leader Standard Work – Reinvented about 2005

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.
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.
Origins of defining expectations
started with the TWI programs.
Lean Six Sigma – Invented about 2003

Six Sigma Black Belts reinvent

themselves by tacking on the
‘Lean’ label and learning a few
more buzz words.

Earn a Green Belt with 1 project.

Earn a Black Belt with 2-3 projects in a few months.
Master Black Belt has helped 5+ people get their belts.
An experienced engineer can expect to do more than
100 projects in their career.
 “Toyota Way 2001”
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 book became a best seller since
The Toyota Way 2001 clarifies the values and publication in 2004.
business methods that all employees should
embrace in order to carry out the Guiding
Principles at Toyota throughout the
company's global activities.
Value Stream Mapping – Invented 1999
Toyota did not use this
tool inside the factory

Mike Rother and John Shook

created a new tool for lean better
be able to see materials and Adapted from a tool to map
information flows. information and material
flows from suppliers
 Process Mapping

IE standard since the 1950’s

 Invention of 5S/6S by Consultants
Ohno complained that the
supervisors had turned 4S into
a “lining up” competition
Ford’s CANDO, probably
1973 TPS Manual invented before 1920.

1989 TPS Handbook

Russia – 1920’s

5S training was a ‘money tree’

for consultants
 Typical Lean Starting Point
Most companies start with a 5-S program and a few Kaizen events.
You have a clean workplace.
Positions for everything are defined.
Even the place for the operator’s chair.

Your Standard Work is

written by Engineering
or Quality.
It is not easy to train
with, or for operators to
understand.

Congratulations, you ‘look lean’

 Reasons Why

It originated as
part of a checklist
in Job ftethods
 Ohno’s Wastes List Expands
Easy for them to be ftakes it easy to look
accidently successful like an expert.
without knowing why.

4 – Wastes 1973

These were for helping people discover

the symptoms to disruptions in flow

Lean is not about getting rid of waste,

it is about creating flow
 How your effort is spent:
Adding Value Spending ftoney
Poor Layouts and Adding Costs
Transforming
Step Poor part presentation

Piling up work
Baby-Sitting
ftachines
Looking for part (in
7 - Wastes the pile or bin)
Unpacking –
1978
unwrapping parts
Loading tray to move
Work-Arounds to next operation
(people adapting to quality
and machine issues) Walking
Part of Lean is removing
Rework - Sorting Repacking ‘Unnecessary Activity’

To effectively and efficiently deliver the product or service to the customer.

Lean is not about working harder or faster.
 Lean – 1988 to 1990
Public introduced to the term ‘lean’
to describe Japanese methods,
specifically Toyota in 1990.
1988 1990 2018

Now
Thousands of
books about
‘Lean’ have
In 1988 the term of ‘lean’ been published.

coined to describe Toyota’s

production system.
IMVP Study – Phase 1, 1979-90
Only one grad student visited
all 70 factories in the study
 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.

Published “Kaizen: The Key To Japan's Competitive

Success” in 1986 to promote what he had learned
working with Japanese businessmen.

No connections with Toyota

 NUMMI - 1984
John Krafcik – John Shook –
Toyota’s first Toyota’s first
American engineer American employee

Only researcher that Has co=authored many

visited all 70 auto ‘lean’ books.
plants in IMVP study. Toyota turned around GM’s worst plant Was CEO of the Lean
Enterprise Institute (LEI)
starting with Job Instruction
 “Just-in-Time”
Before the mid 1980’s, the world’s focus had been
on Japanese businesses in general, not Toyota. Ford had a ‘just in time’
system before 1920.
The Japanese began to focus on Toyota after the Iron ore to car in 3 ½ days.
1974 oil embargo and financial crisis.
 Lean – 1970’s and 1980’s
The term of

Industrial tourism to try to ‘lean’ coined to

describe Toyota’s
production
understand the Japanese secrets system.

1980 1988 1990 2018

Now
Thousands of
By 1980, it seemed to the Americans and books about
‘Lean’ have
Europeans that the Japanese could take any been published.

market they entered. We struggled to

understand how they were succeeding. Public introduced to
the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
 Lean – 1970 to 1973
The term of
‘lean’ coined to
describe Toyota’s
production
system.

1970 1973 1980 1988 1990 2018

Industrial
tourism to try to
Now
understand the
Japanese secrets Thousands of
books about
‘Lean’ have
been published.
1970 - Toyota’s starts sharing
their production system secrets Public introduced to
Toyota’s first with a select group of suppliers
the term ‘lean’ to
describe Japanese
TPS manual methods, specifically
Toyota.
Toyota shares their system with suppliers
1970 – started assisting
their 1st tier suppliers

1973 –1st TPS Manual

TPS ftanual
1973
We Don’t Know, What We Don’t Know

Shingo was an Outsider

1955 - 1980
 Lean – 1966 to 1968
Toyota’s first
The term of
sharing of their
‘lean’ coined to
production system
describe Toyota’s
secrets with a
production
select group of
system.
suppliers

1967 1970 1973 1980 1988 1990 2018

Industrial
tourism to try to
Now
understand the
Japanese secrets Thousands of
books about
‘Lean’ have
Taiichi Ohno considers his been published.

production to be stable
Toyota’s first Public introduced to
TPS manual the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
 Kanban = Virtual Conveyor
Kanban is one of the tools that make JIT function

1965 - kanban adopted for ordering outside 1962 - kanban adopted company wide Flow where you can,
parts, 100% supply system, began teaching (machining, forging, body assembly, etc.) Pull where you can’t.
Toyota system to affiliates - Taiichi Ohno

Line 1953 - supermarket system

in machine shop Line
Customer
Line
Line

The Kanban is the ‘pull’

Process Grouping - Batch Production system that you implement
where you can’t create flow
Kanban System is a Containment Step
 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 Kanban Rules
suppliers like the lines had been
synchronized.
1962 - Kanban adopted company wide
(machining, forging, body assembly, etc.)
Step by step, additional lines were
setup on the kanban system, then
connected with each other
1953 - Supermarket system in machine shop
There are many more guidelines to setting up a
1948 - Withdrawals by subsequent processes kanban system. It is more than a set of cards, it
(upstream transport) can be any method of communicating and
Starting point… testing the idea limiting the WIP.
 Kanban – getting ready to Synchronize
1949 - Intermediate warehouses abolished (secondary storage
locations)

1950 - Machining and assembly lines synchronized - visual control and

andon system adopted in engine assembly

1955 - Assembly and body plants linked - main plant assembly line
production system (Andon, line stop, mixed load and automation
 autonomation)

1958 - Warehouse withdrawal slips eliminated

 Synchronizing Multiple Operations
This does not show the
external suppliers to each area

Transporting parts to a warehouse between work

areas is an unnecessary activity to be avoided.
This requires synchronizing sequential departments.
Buffers are used when the velocity is different
between operations. Large buffers hide problems.

Ohno’s Kanban tool has the whole factory function as if it is a connected by conveyors. 41
 Quick Die Change (QDC) - 1962

American technology
limited demand in the
US, sold well in Japan

Shingo claims to have

Image courtesy of Art Smalley invented the process at
Toyota in 1970.
Toyota Brazil contributes to
Names it SMED.
the improvement process.
 TWI usage about 1960

TWI programs
start spreading
around the world.
Restart again
about 2005.

TWI programs in countries as of 1960

 Lean – 1955 to 1957
Toyota’s first
The term of
sharing of their
‘lean’ coined to
production system
describe Toyota’s
secrets with a
production
select group of
system.
suppliers

1956 1967 1970 1973 1980 1988 1990 2018

Industrial
Taiichi Ohno tourism to try to
Now
considers his understand the
production to Japanese secrets Thousands of
be stable books about
‘Lean’ have
It took Toyota 5 been published.

years to catch up
Toyota’s first Public introduced to
their productivity TPS manual the term ‘lean’ to
describe Japanese
to the USA methods, specifically
Toyota.
 Catch up Productivity

The goal to catch up was driven by what he

experienced at Ford’s River Rouge Plant
Toyota’s Growth Creates Problems

Learned customer focus

from Gft in the 1930’s

Growth in customer demand strained the

ability of the production system to deliver
 How to Manage the Growth

Shingo starts teaching

P – Course
1955 - 1980

Basic Industrial
Engineering

236,005
First University IE
7,398

Program in Japan
started in 1951
~35% annual compounded increase
 Lean – 1955
Shigeo Shingo starts teaching Toyota’s first
The term of
‘P Course’ at Toyota sharing of their
‘lean’ coined to
production system
1955 - 1980 secrets with a
describe Toyota’s
production
select group of
system.
suppliers

1956 1967 1970 1973 1980 1988 1990 2018

Industrial
Toyota Taiichi Ohno tourism to try to
Now
productivity considers his understand the
catches up to production to Japanese secrets Thousands of
the USA be stable books about
‘Lean’ have
been published.

Toyota’s first Public introduced to

TPS manual the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
Getting to Standard Work
Basic IE skills needed to create standard work

Time Study + Layout + Inventory + TWI

 Lean – 1951
Eiji Toyoda works for
Toyota’s first
3 months at Ford’s sharing of their
The term of
‘lean’ coined to
River Rouge Plant production system
secrets with a
describe Toyota’s
production
select group of
system.
suppliers

1951 1956 1967 1970 1973 1980 1988 1990 2018

Industrial
Toyota Taiichi Ohno tourism to try to
Now
productivity considers his understand the
catches up to production to Japanese secrets Thousands of
the USA be stable books about
‘Lean’ have
been published.

Toyota’s first Public introduced to

TPS manual the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
 Gap between Ford and Toyota - 1950
Productivity Comparison

The Productivity Gap was why

Taiichi Ohno needed to develop
a better production system
Stop Doing List
 Lean – 1951
TWI Programs
Introduced Toyota’s first
The term of
sharing of their
‘lean’ coined to
production system
describe Toyota’s
Eiji Toyoda works for secrets with a
production
3 months at Ford’s select group of
system.
River Rouge Plant suppliers

1951 1956 1967 1970 1973 1980 1988 1990 2018

Industrial
Toyota Taiichi Ohno tourism to try to
Now
productivity considers his understand the
catches up to production to Japanese secrets Thousands of
the USA be stable books about
‘Lean’ have
been published.

Toyota’s first Public introduced to

TPS manual the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
 1951 TWI Introduced
Common Transferable
Needs Skills

Every
Specialized
Organization
Knowledge
is Different
 Building Ohno’s Production System

Principles of Flow TWI skills

1. Put Processes in Sequence

+ =
Job Instruction
2. Synchronize Processes Job Relations
3. Balance Work Content Job Methods
4. Balance Work Pace

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”

The System Evolves
 Lean – 1950
1950 Toyota’s financial
crisis and labor strike Toyota’s first
sharing of their
The term of
‘lean’ coined to
production system
describe Toyota’s
Eiji Toyoda works for secrets with a
production
3 months at Ford’s select group of
system.
River Rouge Plant suppliers

1951 1956 1967 1970 1973 1980 1988 1990 2018

Industrial
TWI introduced. Toyota Taiichi Ohno tourism to try to
Now
Ohno starts strong productivity considers his understand the
catches up to production to Japanese secrets Thousands of
effort to develop
the USA be stable books about
production system.
‘Lean’ have
Focus on catching been published.
up to America

The banks force Toyota to Toyota’s first Public introduced to

TPS manual the term ‘lean’ to
spin off the sales group describe Japanese
Union demands “Respect for People” – methods, specifically
into a separate company
settlement with Toyota adopting the Toyota.

TWI programs.
 First level skills – Focus on People
Illustration from “People must be
Job Relations treated as
training individuals”

Toyota’s “Respect for

People” originated
with this program
 Leaders must work with others

Illustration from
All results are
Job Relations
through people
training
 TWI (Kaizen) Introduced to Japan
US Army promotional film for
the TWI programs
‘Kaizen eno Yan Danksi’

US Army funds the

TWI training
program in 1951

‘Kaizen includes all TWI programs

 Lean – 1950 - Just-in-Time
Banks controlled
Toyota Motor Sales No sales equaled no
money to buy parts

This forced ‘Just-in-Time’

purchasing of the parts

The ‘Just-in-Time’ idea was

copied from Ford’s Progressive
Production System
 Lean – 1947 to 1950
Japan Ministry of Labour starts pilot
program with Job Instruction
1. Nissan Motor Company TWI programs
established in
2. Train Depot Japan

3. Textile company 1951

First TWI manuals supplied by the British about 1947.

First trainer sent to India to learn Job Instruction
US Army funds the TWI
training program in 1951
 TWI – 1945 - 1947

TWI programs
established in
Japan

1945 1951

TWI programs
start spreading
around the world

TWI use begins to spread as industry and governments

realize it increases their competitiveness
Lean –1940 - 1945

TWI programs
established in
Japan

1940 1945 1951

TWI programs
start spreading
around the world

TWI Service established.

Development of training
programs for industry.
 Lean – 1930 to 1945
Ohno has 15 years of experimenting and
Taiichi Ohno sees his first copying Ford before he adds the TWI skills
factory organized for flow TWI programs
established in
(Nichibo Spinning) Product focused layout, small
lot production, doing things Japan

1935 right the first time 1940 1945 1951

TWI Service
TWI programs
established.
start spreading
Development of
around the world
training programs

Ohno starts experimenting

with introducing Flow at
Toyoda Spinning, then at
Toyota’s machining plant
 Ohno’s Objective is to Create Flow
…to a system that
flowed smoothly

From a system with

disruptions and obstacles
 Lean – Andon developed 1930
Andon not invented in Japan

First recorded ‘Andon’ system

Ohno experiments TWI programs
with introducing established in
Flow at Toyota Japan
1931 1935 1940 1945 1951

Taiichi Ohno sees TWI Service

TWI programs
first factory established.
start spreading
organized for Development of
around the world
flow training programs

Operators instructed to stop the line when

they have problems so supervisors can help.
Central control station has signals showing
which station is stopped.
Manager and maintenance sent to investigate
problems lasting more than 2 cycles.
 Gilbreth’s Work Simplification

Sweating Thinking

‘Speeding up’ the

There is no limit
line is limited to
on our creativity
human strength
 Lean – Reorganizing for Flow
Flow Principles become 1917 - First factory reorganized
for flow in Japan
known around the world
Ohno experiments TWI programs
with introducing established in
Flow at Toyota Japan

1920 1931 1935 1940 1945 1951

Taiichi Ohno sees TWI Service

TWI programs
first factory established.
start spreading
organized for Development of
around the world
flow training programs
Factories around the world
are reorganized as the
technique is publicized.
Germans synchronize
First recorded
‘Andon’ system factories to a ‘beat’ (Takt)
 Principles of Flow

1. Put Processes in Sequence

2. Synchronize Processes
3. Balance Work Content
4. Balance Work Pace
These principles are the foundation for all the lean tools.
Every tool is a containment action to get closer to the ideal of flow.
Principle 1. Put Processes in Sequence

Lean perspective:
Each process is able to hand
off to the next one.
No warehouses, no storage, no
extra handling.
No kanban needed.
Flow Principle #1 - Put Processes in Sequence

Where possible, have subassemblies be added

to the flow where used or just upstream from
where it is needed.

Watch for situations where you have

people working in random locations on
the line and the materials they
produce must be transported to the
station where it is used.
Or temporary processes where
operators do not have proper working
areas… or tools
72
Principle 2. Synchronize Processes

Lean perspective:
All processes are producing to
the same beat (Takt).
Synchronization supports close
coupling of processes where
they can hand off to the next.
 Transformation – Team 5 Packing Line
Their first step towards lean.
Piling Up System Flow Line (day 1)
Step 1 – Unload most of the
materials from line.
Step 2 – Start line and adjust
speed where part arrival rate
matches operator capacity.
Step 3 – Identify steps where
people have extra time or cannot
keep up.
Step 4 – Balance work evenly
along the line. Add activities to
positions that have extra time,
make job easier for operator that
cannot keep up. Or move some
work details to another operator.
Step 5 – Set line speed to match
production targets. This may
involve adding or removing
operators and rebalancing work.
Step 6 – Make the work easier,
People expend effort to find part to Parts come to people, no searching required.
remove unnecessary activities.
work on and pile back on line. The conveyor is helping the operator.
Principle 3. Balance Work Content

Lean perspective: Heijunka

Cycle time required is equal to

the synchronized time needed
(takt)
Ohno converted all wastes to
waiting to focus imbalance of
this principle.
Principle 4. Balance Work Pace

Lean perspective:
This is best driven externally –
with marketing, sales and
planning leveling demand on
the production system.
 Lean – 1910 to 1920

Flow Principles Ohno experiments TWI programs

become known with introducing established in
around the world Flow at Toyota Japan

1913 1920 1931 1935 1940 1945 1951

Taiichi Ohno sees TWI Service

TWI programs
first factory established.
start spreading
organized for Development of
around the world
flow training programs

10x productivity Flow experiments continued

increase First recorded
‘Andon’ system
– 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
 Lean – 1906-8
10x
productivity
Walter Flanders arrives at Ford’s plant – reorganizes for flow
increase First 12 months increases production from 1,600 to 10,000 cars
Flow Principles Ohno experiments TWI programs
become known with introducing established in
around the world Flow at Toyota Japan

1906 1913 1920 1931 1935 1940 1945 1951

Taiichi Ohno sees TWI Service

TWI programs
first factory established.
start spreading
organized for Development of
around the world
1907 – Sold flow training programs

14,000 cars!

Walter Flanders taught a small group of people the

Flow experiments First recorded principles of flow.
continue – assembly ‘Andon’ system
line introduced They were responsible for the continuing productivity
gains and developing the assembly line,
 Lean – 1903
Ford loses 2nd car company, Ford starts his
It is renamed Cadillac 3rd car company

Walter Flanders Flow Principles Ohno experiments TWI programs

arrives at Ford’s plant become known with introducing established in
– reorganizes for flow around the world Flow at Toyota Japan

1903 1906 1913 1920 1931 1935 1940 1945 1951

Taiichi Ohno sees TWI Service

TWI programs
first factory established.
start spreading
organized for Development of
around the world
flow training programs

Flow experiments First recorded

continue – assembly ‘Andon’ system
line introduced
The Beginning of Lean Thinking
Rationalization
(Systems Thinking)
1. Productivity of critical skills
2. Reduce skill required
3. Reduce variation
4. Reduce transport

Categories of barriers that rationalization disrupted.

Rationalization evolved into thinking of the whole factory

as a single machine to be synchronized by about 1880
Lean is about organizing space and time
to produce the greatest results with the
least effort.
(with resources like time, money, materials, labor)
• Creating Flow was Ohno’s original objective
• It was desired as a ‘competitive advantage’
• Principle of Least Action

Nature has developed

efficient systems
Like the ant or bee
paths that over time
discover optimal routes
Successful Improvement Programs
Have a leader that creates an environment where innovation can happen

Henry Ford Taiichi Ohno

James Couzens Yukio Arima
Charles Sorensen Itsuo Mamiya
Max Wollering Kikuo Suzumura
Harold Wills Takeo Watanabe
Oscar Barnholdt Masanobu Morita
List courtesy of Art Smalley
Carl Emde
Key men in Ohno’s machine shops
William Knudsen

A successful Industrial Engineer is part of a team.

Success is a team sport

Next Series – 12 Steps to Building a Production System

Building a Production System

Performance
Simplicity

Create Stability
People build
your system

Building Structure
Talent
Discovery
Time &
Effort