Motion – the wear and tear and the accidents that arise in moving things around a plant.Inventory – holding unnecessary stock and therefore incurring capital costs.Transporting – the wasted time and risks of damage or loss.Overproduction – producing more than is needed.Defective Production – producing defective products.In so doing, he identified the seven categories that are often known as the ‘Seven Wastes’. Ohno waged a systematic campaign to eliminate all possible forms of waste. The first of these – and Ohno’s starting point for his reforms – is the idea of waste, or ‘Muda’. Create one continuous process (the ‘Value Stream’)Īs if the phrase Just in Time has not become well-enough known, it is supported by an idea and a practical tool that have each become central to manufacturing processes world-wide… and, indeed, to other business and organisational processes.Build quality in every part of the process ( ‘Jidoka’).Produce components just in time for their use ( ‘Just in Time’ production).The three principles at the heart of the the Toyota Production System are easy to state: He had first seen, and been captivated by, supermarkets on a visit to the United States in 1956. In doing so, he frequently used the metaphor of a supermarket to describe how Just in Time principles work. Towards the end of his life, Ohno spoke and wrote extensively (most notably: ‘ Toyota Production System: Beyond Large-Scale Production‘) about the TPS – perhaps more than his superiors really felt comfortable with. As he experimented, and took on board Kiichiro Toyoda’s ideas of Just in Time production, he gradually, over the years from 1945 to the mid-1970s, built up a coherent set of principles and practices that has come to be known as the ‘Toyota Production System’. He considered that the significant factor was waste ‘Muda’. In looking at Toyota’s productivity levels shortly after the war, Ohno realised that the gap in performance between Toyota and the top US manufacturers of a factor ten could not be due solely to a poor Japanese workforce. However, it was when Taiichi Ohno was tasked with increasing productivity that the company started to make the breakthroughs which would later form the groundwork for Toyota’s great commercial achievements of the 1960s onwards, under Eiji Toyoda. Kiichiro Toyoda set out to learn from US motor manufacturers, and started manufacturing vehicles in 1936 and it was he who first introduced the idea of ‘Just in Time’. In 1932, he joined the Toyoda Automatic Loom Works, which had been established by Sakichi Toyoda, who was highly innovative in the looms he designed and built. When Toyoda sold off the loom business to a British company, he determined to invest the money in an automobile business, to be headed by his son, Kiichiro Toyoda. Taiichi Ohno was born in China, where his father was working on the Manchuria Railway, in 1912, and grew up in the Aichi prefecture of Japan, attending the Nagoya technical High School. I promised you we’d look at him when we examined the lessons from his boss, Eiji Toyoda, so let’s see what we can learn from Taiichi Ohno. But his influence goes far wider, with many of the management ideas that we take for granted originating as a part of the TPS. The engineer behind many aspects of the Toyota Production System (TPS) can justly be described as instrumental in creating one of the world’s great manufacturing businesses.
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