History
Fredrick Taylor and Henry Ford documented their observations relating to these topics in the 1920s. This was an application of Taylor's Scientific Management Theory and the application of time studies by the work of Frank and Lillian Gilbreth. Shigeo Shingo and Taiichi Ohno applied their enhanced thoughts on the subject at Toyotain the late 1940's through the 1970's under the moniker "Toyota Production System". This was lead in part by Edwards Demming among others. The resulting methods were researched from the mid-20th century and dubbed "Lean" by John Krafcik in 1988, and then were defined in ''The Machine that Changed the World'' and further detailed by James Womack and Daniel Jones in ''Lean Thinking'' (1996).Evolution in Japan
The exact reasons for adoption of just-in-time manufacturing in Japan are unclear, but it has been suggested it started with a requirement to solve the lack of standardization. American supply chain specialist Gergard Plenert has offered four reasons, paraphrased here. During Japan's post–World War II rebuilding of industry: #Japan's lack of cash made it difficult for industry to finance the big-batch, large inventory production methods common elsewhere. #Japan lacked space to build big factories loaded with inventory. #The Japanese islands lack natural resources with which to build products. #Japan had high unemployment, which meant that labor efficiency methods were not an obvious pathway to industrial success. Thus, the Japanese "leaned out" their processes. "They built smaller factories ... in which the only materials housed in the factory were those on which work was currently being done. In this way, inventory levels were kept low, investment in in-process inventories was at a minimum, and the investment in purchased natural resources was quickly turned around so that additional materials were purchased." Plenert goes on to explain Toyota's key role in developing this lean or just-in-time production methodology. American industrialists recognized the threat of cheap offshore labor to American workers during the 1910s, and explicitly stated the goal of what is now called lean manufacturing as a countermeasure. Henry Towne, past President of theEvolution in the rest of the world
Just-in-time manufacturing was introduced in Australia in the 1950s by the British Motor Corporation (Australia) at its Victoria Park plant in Sydney, from where the idea later migrated to Toyota. News about just-in-time/Toyota production system reached other western countries from Japan in 1977 in two English-language articles: one referred to the methodology as the "Ohno system", after Taiichi Ohno, who was instrumental in its development within Toyota. The other article, by Toyota authors in an international journal, provided additional details. Finally, those and other publicity were translated into implementations, beginning in 1980 and then quickly multiplying throughout industry in the United States and other developed countries. A seminal 1980 event was a conference in Detroit at Ford World Headquarters co-sponsored by the Repetitive Manufacturing Group (RMG), which had been founded 1979 within the American Production and Inventory Control Society (APICS) to seek advances in manufacturing. The principal speaker, Fujio Cho (later, president of Toyota Motor Corp.), in explaining the Toyota system, stirred up the audience, and led to the RMG's shifting gears from things like automation to just-in-time/Toyota production system. At least some of audience's stirring had to do with a perceived clash between the new just-in-time regime and manufacturing resource planning (MRP II), a computer software-based system of manufacturing planning and control which had become prominent in industry in the 1960s and 1970s. Debates in professional meetings on just-in-time vs. MRP II were followed by published articles, one of them titled, "The Rise and Fall of Just-in-Time". Less confrontational was Walt Goddard's, "Kanban Versus MRP II—Which Is Best for You?" in 1982. Four years later, Goddard had answered his own question with a book advocating just-in-time. Among the best known of MRP II's advocates was George Plossl, who authored two articles questioning just-in-time's kanban planning method and the "japanning of America". But, as with Goddard, Plossl later wrote that "JIT is a concept whose time has come". Just-in-time/TPS implementations may be found in many case-study articles from the 1980s and beyond. An article in a 1984 issue of ''Inc''. magazine relates howRebranding as "lean"
John Krafcik coined the term "Lean" in his 1988 article, "Triumph of the Lean Production System". The article states: (a) Lean manufacturing plants have higher levels of productivity/quality than non-Lean and (b) "The level of plant technology seems to have little effect on operating performance" (page 51). According to the article, risks with implementing Lean can be reduced by: "developing a well-trained, flexible workforce, product designs that are easy to build with high quality, and a supportive, high-performance supplier network" (page 51).Middle era and to the present
Three more books which include just-in-time implementations were published in 1993, 1995,Jasinowski, Jerry, and Robert Hamrin. 1995. ''Making It in America: Proven Paths to Success from 50 Top Companies''. New York: Simon & Schuster. and 1996, which are start-up years of the lean manufacturing/lean management movement that was launched in 1990 with publication of the book, ''The Machine That Changed the World''.Womack, James P., Jones, Daniel T., and Roos, Daniel. 1990. ''The Machine That Changed the World: The Story of Lean Production''. New York: Rawson Associates. That one, along with other books, articles, and case studies on lean, were supplanting just-in-time terminology in the 1990s and beyond. The same period, saw the rise of books and articles with similar concepts and methodologies but with alternative names, including ''cycle time management'',Thomas, P.R. 1991. ''Getting Competitive: Middle Managers and the Cycle Time Ethic''. New York: McGraw-Hill. ''time-based competition'',Blackburn, Joseph T. 1991. ''Time-based Competition: The Next Battleground in American Manufacturing''. Homewood, Ill.; Business One Irwin, p 28. ''quick-response manufacturing'', flow, and ''pull-based production systems''. There is more to just-in-time than its usual manufacturing-centered explication. Inasmuch as manufacturing ends with order-fulfillment to distributors, retailers, and end users, and also includes remanufacturing, repair, and warranty claims, just-in-time's concepts and methods have application downstream from manufacturing itself. A 1993 book on "world-class distribution logistics" discusses kanban links from factories onward. And a manufacturer-to-retailer model developed in the U.S. in the 1980s, referred to as ''quick response'', has morphed over time to what is called ''Methodology
The strategic elements of lean can be quite complex, and comprise multiple elements. Four different notions of lean have been identified:Pettersen, J., 2009. Defining lean production: some conceptual and practical issues. The TQM Journal, 21(2), 127 - 142. # Lean as a fixed state or goal (being lean) # Lean as a continuous change process (becoming lean) # Lean as a set of tools or methods (doing lean/toolbox lean) # Lean as a philosophy (lean thinking) The other way to avoid market risk and control the supply efficiently is to cut down in stock. P&G has completed their goal to co-operate with Walmart and other wholesales companies by building the response system of stocks directly to the suppliers companies. In 1999, Spear and Bowen identified four rules which characterize the "Toyota DNA": # All work shall be highly specified as to content, sequence, timing, and outcome. # Every customer-supplier connection must be direct, and there must be an unambiguous yes or no way to send requests and receive responses. # The pathway for every product and service must be simple and direct. # Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization. This is a fundamentally different approach from most improvement methodologies, and requires more persistence than basic application of the tools, which may partially account for its lack of popularity. The implementation of "smooth flow" exposes quality problems that already existed, and waste reduction then happens as a natural consequence, a system-wide perspective rather focusing directly upon the wasteful practices themselves. Sepheri provides a list of methodologies of just-in-time manufacturing that "are important but not exhaustive": * Housekeeping: physical organization and discipline. * Make it right the first time: elimination of defects. * Setup reduction: flexible changeover approaches. * Lot sizes of one: the ultimate lot size and flexibility. * Uniform plant load: leveling as a control mechanism. * Balanced flow: organizing flow scheduling throughput. * Skill diversification: multi-functional workers. * Control by visibility: communication media for activity. * Preventive maintenance: flawless running, no defects. * Fitness for use: producibility, design for process. * Compact plant layout: product-oriented design. * Streamlining movements: smoothing materials handling. * Supplier networks: extensions of the factory. * Worker involvement: small group improvement activities. * Cellular manufacturing: production methods for flow. * Pull system: signalKey principles and waste
Womack and Jones define Lean as "...a way to do more and more with less and less—less human effort, less equipment, less time, and less space—while coming closer and closer to providing customers exactly what they want" and then translate this into five key principles: # Value: Specify the value desired by the customer. "Form a team for each product to stick with that product during its entire production cycle", "Enter into a dialogue with the customer" (e.g. Voice of the customer) # The Value Stream: Identify the value stream for each product providing that value and challenge all of the wasted steps (generally nine out of ten) currently necessary to provide it # Flow: Make the product flow continuously through the remaining value-added steps # Pull: Introduce pull between all steps where continuous flow is possible # Perfection: Manage toward perfection so that the number of steps and the amount of time and information needed to serve the customer continually falls Lean is founded on the concept of continuous and incremental improvements on product and process while eliminating redundant activities. "The value of adding activities are simply only those things the customer is willing to pay for, everything else is waste, and should be eliminated, simplified, reduced, or integrated". On principle 2, waste, see seven basic waste types under The Toyota Way. Additional waste types are: * Faulty goods (manufacturing of goods or services that do not meet customer demand or specifications, Womack et al., 2003. SeeImplementation
One paper suggests that an organization implementing Lean needs its own Lean plan as developed by the "Lean Leadership". This should enable Lean teams to provide suggestions for their managers who then makes the actual decisions about what to implement. Coaching is recommended when an organization starts off with Lean to impart knowledge and skills to shop-floor staff. Improvement metrics are required for informed decision-making. Lean philosophy and culture is as important as tools and methodologies. Management should not decide on solutions without understanding the true problem by consulting shop floor personnel. The solution to a specific problem for a specific company may not have generalised application. The solution must fit the problem. Value-stream mapping (VSM) and 5S are the most common approaches companies take on their first steps to Lean. Lean can be focused on specific processes, or cover the entire supply chain. Front-line workers should be involved in VSM activities. Implementing a series of small improvements incrementally along the supply chain can bring forth enhanced productivity.Naming
Alternative terms for JIT manufacturing have been used. Motorola's choice was short-cycle manufacturing (SCM). IBM's was continuous-flow manufacturing (CFM), and demand-flow manufacturing (DFM), a term handed down from consultant John Constanza at his Institute of Technology in Colorado. Still another alternative was mentioned by Goddard, who said that "Toyota Production System is often mistakenly referred to as the 'Kanban System'", and pointed out that kanban is but one element of TPS, as well as JIT production.Goddard, Walter E. 1986. ''Just-in-Time: Surviving by Breaking Tradition''. Essex Junction, Vt." Oliver Wight Ltd. The wide use of the term ''JIT manufacturing'' throughout the 1980s faded fast in the 1990s, as the new term ''lean manufacturing'' became established, as "a more recent name for JIT". As just one testament to the commonality of the two terms, ''Toyota production system (TPS)'' has been and is widely used as a synonym for both JIT and lean manufacturing.,Objectives and benefits
Objectives and benefits of JIT manufacturing may be stated in two primary ways: first, in specific and quantitative terms, via published case studies; second, general listings and discussion. A case-study summary from Daman Products in 1999 lists the following benefits: reduced cycle times 97%, setup times 50%, lead times from 4 to 8 weeks to 5 to 10 days, flow distance 90%. This was achieved via four focused (cellular) factories, pull scheduling, kanban, visual management, and employee empowerment. Another study from NCR (Dundee, Scotland) in 1998, a producer of make-to-order automated teller machines, includes some of the same benefits while also focusing on JIT purchasing: In switching to JIT over a weekend in 1998, eliminated buffer inventories, reducing inventory from 47 days to 5 days, flow time from 15 days to 2 days, with 60% of purchased parts arriving JIT and 77% going dock to line, and suppliers reduced from 480 to 165. Hewlett-Packard, one of western industry's earliest JIT implementers, provides a set of four case studies from four H-P divisions during the mid-1980s. The four divisions, Greeley, Fort Collins, Computer Systems, and Vancouver, employed some but not all of the same measures. At the time about half of H-P's 52 divisions had adopted JIT.Use in other sectors
Lean principles have been successfully applied to various sectors and services, such as call centers and healthcare. In the former, lean's waste reduction practices have been used to reduce handle time, within and between agent variation, accent barriers, as well as attain near perfect process adherence. In the latter, several hospitals have adopted the idea of ''lean hospital'', a concept that priorizes the patient, thus increasing the employee commitment and motivation, as well as boosting medical quality and cost effectiveness. Lean principles also have applications to software development and maintenance as well as other sectors of information technology (IT). More generally, the use of lean in information technology has become known as Lean IT. Lean methods are also applicable to the public sector, but most results have been achieved using a much more restricted range of techniques than lean provides. The challenge in moving lean to services is the lack of widely available reference implementations to allow people to see how directly applying lean manufacturing tools and practices can work and the impact it does have. This makes it more difficult to build the level of belief seen as necessary for strong implementation. However, some research does relate widely recognized examples of success in retail and even airlines to the underlying principles of lean. Despite this, it remains the case that the direct manufacturing examples of 'techniques' or 'tools' need to be better 'translated' into a service context to support the more prominent approaches of implementation, which has not yet received the level of work or publicity that would give starting points for implementors. The upshot of this is that each implementation often 'feels its way' along as must the early industrial engineering practices of Toyota. This places huge importance upon sponsorship to encourage and protect these experimental developments. Lean management is nowadays implemented also in non-manufacturing processes and administrative processes. In non-manufacturing processes is still huge potential for optimization and efficiency increase. Some people have advocated using STEM resources to teach children Lean thinking instead of computer science.Criticism
According to Williams, it becomes necessary to find suppliers that are close by or can supply materials quickly with limited advance notice. When ordering small quantities of materials, suppliers' minimum order policies may pose a problem, though. Employees are at risk of precarious work when employed by factories that utilize just-in-time and flexible production techniques. A longitudinal study of US workers since 1970 indicates employers seeking to easily adjust their workforce in response to supply and demand conditions respond by creating more nonstandard work arrangements, such as contracting and temporary work. Natural and man-made disasters will disrupt the flow of energy, goods and services. The down-stream customers of those goods and services will, in turn, not be able to produce their product or render their service because they were counting on incoming deliveries "just in time" and so have little or no inventory to work with. The disruption to the economic system will cascade to some degree depending on the nature and severity of the original disaster. The larger the disaster the worse the effect on just-in-time failures. Electrical power is the ultimate example of just-in-time delivery. A severe geomagnetic storm could disrupt electrical power delivery for hours to years, locally or even globally. Lack of supplies on hand to repair the electrical system would have catastrophic effects. The COVID-19 pandemic has caused disruption in JIT practices, with various quarantine restrictions on international trade and commercial activity in general interrupting supply while lacking stockpiles to handle the disruption; along with increased demand for medical supplies like personal protective equipment (PPE) and ventilators, and even panic buying, including of various domestically manufactured (and so less vulnerable products) likeSee also
Notes
References
* * * * Ker, J.I., Wang, Y., Hajli, M.N., Song, J., Ker, C.W. (2014) ''Deploying Lean in Healthcare: Evaluating Information Technology Effectiveness in US Hospital Pharmacies'' * MacInnes, Richard L. (2002) ''The Lean Enterprise Memory Jogger''. * Mika, Geoffrey L. (1999) ''Kaizen Event Implementation Manual'' * Page, Julian (2003) ''Implementing Lean Manufacturing Techniques''. * Anderson, Barry (ed.) 2012. ''Building Cars in Australia: Morris, Austin, BMC and Leyland 1950-1976''. Sydney: Halstead Press. * Billesbach, Thomas J. 1987. ''Applicability of Just-in-Time Techniques in the Administrative Area''. Doctoral dissertation, University of Nebraska. Ann Arbor, Mich., University Microfilms International. * Goddard, W.E. 2001. JIT/TQC—identifying and solving problems. ''Proceedings of the 20th Electrical Electronics Insulation Conference'', Boston, October 7–10, 88–91. * Goldratt, Eliyahu M. and Fox, Robert E. (1986), ''The Race'', North River Press, * Hall, Robert W. 1983. ''Zero Inventories''. Homewood, Ill.: Dow Jones-Irwin. * Hall, Robert W. 1987. ''Attaining Manufacturing Excellence: Just-in-Time, Total Quality, Total People Involvement''. Homewood, Ill.: Dow Jones-Irwin. * Hay, Edward J. 1988. ''The Just-in-Time Breakthrough: Implementing the New Manufacturing Basics''. New York: Wiley. * * * * * Lubben, R.T. 1988. ''Just-in-Time Manufacturing: An Aggressive Manufacturing Strategy''. New York: McGraw-Hill. * Monden, Yasuhiro. 1982. ''Toyota Production System''. Norcross, Ga: Institute of Industrial Engineers. * Ohno, Taiichi (1988), ''Toyota Production System: Beyond Large-Scale Production'', Productivity Press, * Ohno, Taiichi (1988), ''Just-In-Time for Today and Tomorrow'', Productivity Press, . * Schonberger, Richard J. 1982. ''Japanese Manufacturing Techniques: Nine Hidden Lessons in Simplicity''. New York: Free Press. * * Suri, R. 1986. Getting from 'just in case' to 'just in time': insights from a simple model. 6 (3) 295–304. * Suzaki, Kyoshi. 1993. ''The New Shop Floor Management: Empowering People for Continuous Improvement''. New York: Free Press. * Voss, Chris, and David Clutterbuck. 1989. ''Just-in-Time: A Global Status Report''. UK: IFS Publications. * Wadell, William, and Bodek, Norman (2005), ''The Rebirth of American Industry'', PCS Press,External links