lean management

Lean is a phenomenon, a mindset a mission statement. Many economic sectors establish the methods and procedures and are aware of the positive effects. But what is the core idea and how did it all start? For some readers of this blog, Lean Management may be new territory. Therefore today a little digression back to the roots of the methods and the pioneers.

Toyota did it

Lean management is an idea that has its origins in Japan in the 80s. The model used was the new serial production of Henry Ford, who laid the foundation stone with his T-model. The production manager Taiichi Ohno was one of the first entrepreneurs to recognize these benefits, optimized them and developed a holistic manufacturing system. In the 1990s, lean knowledge spread to other parts of the world and was constantly evolving.

This TPS-known Toyota production system has always been the cornerstone of lean management.

But what are the factors that make this system so successful?

The core idea behind the mindset often takes a back seat for many companies that want to establish Lean Management today. You lose yourself in the methods and individual measures and run after the efficiency increase, without noticing that you have lost the ultimate goal completely out of sight.

Many experts define three basic pillars of an ideal factory that make up a production system. At these construction sites, we must orientate ourselves to achieve the ideal state.

1. Stability in the production processes

Where there are no fluctuations and failures, ideal conditions prevail.

2. As short set-up times as possible
The more frequently a machine has to be retrofitted, the more expensive the single article becomes.

3. As much capacity as possible
Every production manager dreams of having as many halls, machines, employees and shifts as possible and never again bottlenecks.

The tools of Lean Management basically all focus on optimizing these three pillars, the overall system.

Map value stream and recognize waste as a key factor of lean management

The idea behind the fundamental optimization of the entire system runs through the sustainable elimination of waste, in Japanese, it is the “7 Mudas”. They are the key to continuous improvement and increasing efficiency along the value chain. So, if you examine all parts of your value stream and consistently eliminate all non-value-added activities, then this is the first step towards holistic lean management.

Business technology concept as two hands holding a group of machine gears shaped as a human head as a symbol and metaphor for the transfer of industry information or corporate training.

Crash Course Lean Tools: The most important lean principles for your success

The global benchmark for lean production was and is the TPS Toyota production system. But in theory, lean is understood quite quickly. Only the methods are not always 1: 1 transfer to your own company, it depends on the interaction of the individual methods.

Looking Back: How has Lean Management become what it is today?

When Henry Ford introduced the development of the T-model at the beginning of the 19th century, he probably would not have thought that he laid the foundation for today’s production optimization. In order to meet the high demand, he unified the manufacturing processes at that time and was the first company to introduce the mobile assembly line. Ford became a pioneer in mass production, and the T-model he built was soon the world’s best-selling car.

Toyota followed the pioneer: Checking at Ford allowed!

When the Toyota Motor Company was founded in Japan in 1937, it was still a long way from the standardized processes that had been common practice in the US for many years. The CEO of Toyota, Ejii Toyoda and the production manager, Taiichi Ohno, made in 1956 during a visit to the Ford Motor Company a picture of the production processes. They had already developed their own system, Kanban, in which they wanted to include elements of Ford.

Until the 1980s: Toyota created its own production system.

In contrast to the original concept at Ford, Toyota’s production system has produced smaller sets of parts in series. This system has the disadvantage that a missing component in the chain would have far-reaching consequences for the whole process. In order to meet the new requirements with larger production volumes and limited space, Toyota developed the Kanban method over time and introduced just-in-time processes.

The theory also reached Europe in the 1980s

Just-in-time production and Kanban: Introduction at Toyota company-wide.

Kanban is a method in which production processes are depicted as a self-contained cycle. Automatic information is provided by the consumer to the supplier as soon as a certain quantity of a material has been consumed so that it can be replenished immediately and no bottlenecks occur. The information is in the form of a card, the so-called Kanban card. The advantage is that there is no excessive inventory. All resources are used efficiently and a holistic approach is created. Toyota has thus reformed production processes company-wide, including the involvement of suppliers.

Masaaki Imai’s book “Kaizen: The Japanese Key to Success” (1986) brings the theory of continuous improvement to Europe in 1986. The Japanese is the founder of the Kaizen Institute, which supports companies in implementing and introducing Lean and Kaizen processes. “Kai” means “change”, “Zen” literally means “good / better”. Also, Toyota’s production manager, Taaichi Ohno, summed up his experience to create a book, “The Toyota Production System.” Both contributed to spreading theories further in Europe. This was followed by James P. Womack / Daniel T. Jones / Daniel Roos, “The Machine that Changed the World”, New York and numerous other publications on lean management. It is estimated that between 1990 and 2010 about 700 publications were added, which illustrates the importance of philosophy for the production processes today.

Dissemination of process improvement even outside production.

Since the beginning of the 21st century, the application is also found in administrative areas. It has been recognized that Japanese philosophy provides added value that should be extended to all business sectors. This is the only way to pass on the methods and values to all employees and to profit from the advantages in their entirety.