9.2 Lean Manufacturing and Control

Lean control, or simply lean, has seen a surge in popularity in recent years as businesses strive to improve operational efficiencies and product quality through lean methodologies. Lean control is a refined example of nonfinancial controls in action aimed at enhancing product and service quality while reducing waste. Originally focused on improving manufacturing operations, lean concepts have now expanded to encompass product development, order processing, and various other nonmanufacturing processes, sometimes referred to as “lean in the office.”

The widespread adoption of lean control methodologies is driven by the quest for streamlining processes, eliminating waste, and maximizing productivity. Lean control techniques involve analyzing processes, identifying value-adding activities, and eliminating non-value-adding activities or waste. This process is called Value Steam Mapping (VSM) and is done in three steps:

1. Drawing the current state map (how the operation is currently carried out in an attempt to identify the non-value adding activities (waste) that need to be improved or eliminated)
2. Coming up with ideas of how the non-value added activities can be improved or eliminated (Kaizen) , to outline the future plan (how the operation should be carried out without waste or with less waste (hence with more value-adding activities)
3. Prepare the future plan (how the operation should be carried out without waste or with less waste (hence with more value-adding activities)

This approach is based on the premise that by eliminating waste, whether in the form of excess inventory, overproduction, waiting times, or unnecessary transportation, businesses can enhance their operational efficiencies and product quality. Value Stream Mapping will be further illustrated in details in a video in section 9.4 where we learn about Pull Production System.

Lean control is a multifaceted approach to process improvement and resource optimization. According to James Womack, it involves measuring and reducing inventory, streamlining production, changing performance measurement, and implementing a knowledge-based continuous improvement system. Lean control requires long-term commitment and top management support.

The term “lean” gained popularity after the 1990 book The Machine That Changed the World by Womack, Jones, and Roos. The core principle is using fewer resources like space, inventory, and labour while maintaining or improving output levels. This is achieved by identifying and eliminating non-value-adding activities and waste from processes to increase productivity and quality and reduce costs, ultimately enhancing competitiveness (Womack et al., 1990).

Toyota’s Pioneering Role in Lean Manufacturing

The Toyota Production System (TPS), developed by Toyota Motor Corporation in Japan after World War II, serves as the cornerstone of lean manufacturing principles. This period presented significant challenges for Toyota’s leadership, who aspired to establish the company as a full-fledged car and truck manufacturer. The nascent Japanese automotive market, characterized by a demand for diverse vehicle types despite its small size, necessitated a production strategy that balanced profitability with low-volume, high-variety output. Capital scarcity further compounded these challenges, precluding investments in advanced production equipment. To ensure survival and success, Toyota required a resource-efficient vehicle production system. This critical need led Eiji Toyoda and Taiichi Ohno to spearhead developing and implementing the now-renowned lean production techniques and tools.

To maximize the benefits of lean, managers must determine which specific lean tools and techniques will be effective for their business. This requires a clear understanding of Lean’s primary objectives and core principles. With this understanding, managers can decide which lean tools will work well, which need adaptation, and which are inappropriate.

By aligning lean implementation with lean’s objectives and principles, managers can strategically select and tailor the right lean tools for their business. This targeted approach ensures lean initiatives are tailored to their unique needs, maximizing successful implementation and desired outcomes like improved efficiency, reduced waste, and enhanced quality and productivity. Discerning the suitability of various lean tools is crucial for managers to integrate lean principles and derive maximum benefits effectively.

“9 Just-In-Time and Lean Systems” from Introduction to Operations Management Copyright © by Hamid Faramarzi and Mary Drane is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.—Modifications: used section Lean Manufacturing and Control, some paragraphs rewritten or in some cases removed; added additional explanations; activity removed; video added.