Toyoda conducted a study of each stage of the production process and created ‘Kaizen’ improvement teams to address the problems. However, as Kiichiro Toyoda, founder of Toyota Motor Corporation, directed the engine casting work he discovered problems with their manufacturing, including wasted resources on repair of poor-quality castings. Having previously been a textile company, Toyota moved into producing automobiles in 1934 and won a truck contract with the Japanese government in 1936. Shingo revealed that he was "greatly impressed to make the study and practice of scientific management his life's work" after reading Frederick Taylor’s ‘Principles of Scientific Management’ in 1931. However, it was Shigeo Shingo and Taiichi Ohno of the Toyota Motor Corporation who really progressed these views to become what was later dubbed lean manufacturing. To maintain this condition, to strengthen our control of home markets, and, above all, to broaden our opportunities in foreign markets where we must compete with the products of other industrial nations, we should welcome and encourage every influence tending to increase the efficiency of our productive processes." The President of the American Society of Engineers, Henry Towne wrote in the foreword to Frederick Winslow Taylor’s ‘Shop Management’ (1911) that, "We are justly proud of the high wage rates which prevail throughout our country, and jealous of any interference with them by the products of the cheaper labour of other countries. And whenever the new method is found to be markedly superior to the old, it should be adopted as the standard for the whole establishment."Īmerican industrialists of the time, including Henry Ford, saw lean manufacturing as a measure to combat the influx of cheap offshore labour. The basic ideals of lean manufacturing have arguably existed for centuries, but really became solidified with Benjamin Franklin’s writing on reducing waste in his ‘Poor Richard’s Almanack,’ where he wrote that avoiding unnecessary costs could provide more profit than increasing sales.įranklin put down this idea and other concepts in his essay, ‘The Way to Wealth,’ which was then expanded upon by mechanical engineer Frederick Winslow Taylor in his 1911 book, ‘Principles of Scientific Management.’ Taylor codified the process, calling it scientific management and writing, “whenever a workman proposes an improvement, it should be the policy of the management to make a careful analysis of the new method, and if necessary conduct a series of experiments to determine accurately the relative merit of the new suggestion and of the old standard. When and Who Invented Lean Manufacturing? Reducing Time: Wasting time with inefficient working practices is a waste of money too, while more efficient practices create shorter lead times and allow for goods and services to be delivered faster.Reducing Costs: Overproduction or having more materials than is required creates storage costs, which can be reduced through better processes and materials management.Designing processes to meet these expectations and desires keep you ahead of the competition, keeping quality improvement at the forefront Improve Quality: Improved quality allows companies to stay competitive and meet the changing needs and wants of customers.It provides no value to products or services
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