The Seven Deadly Wastes of Logistics: Applying Toyota Production System Principles to Create Logistics Value
Introduction
Henry Ford said that “Quality means doing it right when no one is looking.” If Henry Ford knew the value of doing it right the first time, then why does this basic practice seem to be missing from so many companies today? The answer is...because it’s hard. It requires a rigorous approach to problem solving, a relentless effort to identify and eliminate all forms of inefficiency, and a commitment to change the corporate culture that few firms are willing to embrace.
In fact, a recent study by the management consulting firm Bain & Company found that only 19% of companies that have attempted to implement lean are happy with the results.
Early in the twentieth century, Henry Ford took all the elements of a manufacturing system and arranged them in a continuous system for manufacturing the Model T automobile. After World War II, Taiichi Ohno at Toyota Motor Company recognized the benefits of this system and began to incorporate the Ford production system into an approach called the Toyota Production System (TPS), a system even better than Ford’s at doing it right the first time by applying continuous problem solving by every employee to make the system ever stronger.
In the decades that have followed, Toyota has diligently applied these principles and, in the first quarter of 2007, passed General Motors to become the world’s No. 1 auto seller (www.msnbc.msn.com/id/18286221).
Fundamentals of TPS: Muda, Process Focus, Genchi Genbutsu, Kaizen, Mutual Respect
While TPS has been discussed and written about for decades, a precise process has never been documented. An effective manual or a “how to” book has never been created that provides a step-by-step approach for understanding and implementing TPS—nor can such a complex process be adequately documented. Instead, newcomers to TPS are provided a daily lesson by Japanese mentors in the art of identifying and eliminating waste. Much like a child learns and forms habits from every action his or her parents
Henry Ford said that “Quality means doing it right when no one is looking.” If Henry Ford knew the value of doing it right the first time, then why does this basic practice seem to be missing from so many companies today? The answer is...because it’s hard. It requires a rigorous approach to problem solving, a relentless effort to identify and eliminate all forms of inefficiency, and a commitment to change the corporate culture that few firms are willing to embrace.
In fact, a recent study by the management consulting firm Bain & Company found that only 19% of companies that have attempted to implement lean are happy with the results.
Early in the twentieth century, Henry Ford took all the elements of a manufacturing system and arranged them in a continuous system for manufacturing the Model T automobile. After World War II, Taiichi Ohno at Toyota Motor Company recognized the benefits of this system and began to incorporate the Ford production system into an approach called the Toyota Production System (TPS), a system even better than Ford’s at doing it right the first time by applying continuous problem solving by every employee to make the system ever stronger.
In the decades that have followed, Toyota has diligently applied these principles and, in the first quarter of 2007, passed General Motors to become the world’s No. 1 auto seller (www.msnbc.msn.com/id/18286221).
Fundamentals of TPS: Muda, Process Focus, Genchi Genbutsu, Kaizen, Mutual Respect
While TPS has been discussed and written about for decades, a precise process has never been documented. An effective manual or a “how to” book has never been created that provides a step-by-step approach for understanding and implementing TPS—nor can such a complex process be adequately documented. Instead, newcomers to TPS are provided a daily lesson by Japanese mentors in the art of identifying and eliminating waste. Much like a child learns and forms habits from every action his or her parents