Ohno Don’t Lean on Me!
A partial Biography on Taiichi Ohno and the Lean System
Topics of Discussion:
-Transportation and Unecessary Inventory -Underutilization of Employees -Defects
-Excess Motion -Overprocessing -Overproduction and Waiting
Operations and supply management
Ohno Don’t Lean on me
Taiichi Ohno ((大野 耐) was born in a Dailina, China on February 29, 1912 and passed away on May 28, 1990 in Toyota City, Japan. Ohno graduated from Nagoya Technical High School in Japan and later became a very prominate buisness man. During his life, Ohno developed somethings that are well known and not overly dificult to impliment. One of the notable things, is obviously The Lean System (Known in the United States) (TLS) or The Toyota Production System as it is known in Japan (TPS). A major factor to the TPS is refered to as Muda (無駄) in Japan or “The Seven Waste” (Buisness) in the U.S. Muda is aconcept that reveils the waste of transportation, inventory, motion, waiting, over-processing, over-production, and defects. All though these concepts seem easily identifiable.In the scope of the everyday operations of a buisness, they are actually easily over looked and harder to eradicate once they have formed. If acomplished these concepts make up a wonderful free flowing buisness, known in Japan as” jidoka (自働化?) (The injection of quality)” (economist). Transportation or unnecessary transportation is the first liability. In the transportation, process each time there is a handling of the goods it increases the cost and risk of damage. This problem, for both the producer and the consumer, is that cost cannot be illiminated entirely. Although, diminishing it to such an insignificant amount so that the price could easily be incorperated to the cost of production without transfering an exuberant price to the end user is the ultimate goal of any buisness. Amazingly enough Taiichi Ohno is given the majority of the credit for this buisness process he had two other men that assisted him, Shigeo Shingo, who at the time was aquality consultant hired by Toyota, to assist in the implementation of quality initiatives; and Edward Deming, a statistician master, brought Statistical Process Control to Japan. Another notable thing that has inspired prominent buisness men of today is supermarket operations in the United States; this observation or idea set found its way to prominance during a visit in 1956. The supermarket plan provided the basis of a continuing supply of materials as the supermarket provided a continuing supply of merchandise on the store shelves. This is commonly refered to as Just in Time buisness process, which has helped make Walmart a strong and inovative company. Just as important in the Lean system is the control of Unecessary Inventory. Which defined is “caused by uncertainty with regard to quality levels, deliveery lead times, and the like.”(Operations) Meaning, keeping the right amount of inventory so the buisness, does not overstock or understock to meet the demands of the consumer. Thusly removing overhead cost, regarding lost or wasted inventory, keeping COGS (Cost of Goods Sold) down to a minimum yielding a maximun profit per unit sold. Underutilization of employees
This waste, added after Taiichi Ohno’s death, is prominent throughout many buisneses. Almost every company these days runs into the problem where it cannot provide enough work for its employees effectively, cannot maintain the optimal benefit from its employees, and cannot brandish its labor force with an iron fist. This is commonly refered to as employee underutilization. There are several interpretations as to what...
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http://www.economist.com/node/13941150 July 3rd. 2009
Bozarth, Cecil C. and Handfield, Robert B.Introduction to Operations and Supply Chain Management. Second Edition.Pearson Custom Publishing, 2008
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