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Chapter1RaceWithoutaFinishLine(eightparts).

1) CompetitiveAdvantage:Better,CheaperFaster,MoreAgile:
Companiesneedtopayattentiontocustomershowever,thekeytocompetitiveness
isproductioncapability:todesignandbuildbetter,cheaper,fasterandmoreagile.For
productdevelopment,traditionalfirmsmoveproductideasthroughfunctionalareaslean
firmsmakeuseofproductiondevelopmentteams.

Makingthings...

Traditionalcompanies

Leanfirms

better

computeraideddesignand
manufacturing.

grouptechnology,
placementofequipment,
focusonimprovement.

cheaper

jobenlargement,
automationandrobotics.

redesigningandsimplifying
productsandprocesses,
standardization.

faster

roboticsflexible
manufacturing,
labormanagement
relations.

reductionofleadandsetup
times,broadeningjobs.

moreagile

technology,processflow
improvements,
crossfunctionalteams

integralpartofqualityand
deliverycapability.

2) LeanProductionandTotalQualityManagement:
Traditionalcompaniesseekimprovementatdiscretetimesleanfirmsinvestsinsmall
andcontinuousimprovements,humancapital,TQM.
Leanproduction(JIT)istocontinuouslyidentifyandremovewaste.TQMistoknow
theneedsandwantsofcustomers.LeanandTQMshouldalwaysworktogether.

3) LeanProductionandtheProductionPipeline:
Theproductionpipelinestartswithrawmaterialsandendswithfinishedproducts.Itis
importantthattheinputsturnintooutputsasfastaspossible.Obstructionstotheflowshould
beidentifiedandeliminated.Theseobstructionscannotbeeliminatedforever:theychange
consistentlythepipelineitselfisalsochangingconstantly.Leanproductionaimsto
continuouslyimprovethepipeline,makingitmoreadaptableandfaster.

4) TheLeanDIfference:
Inleanproduction,everyworkeridentifiesandeliminateobstructionstothepipeline.
Italsoaimstoreduceinventory(asitnarrowstheproductionpipeline,slowingtheflowand
maskingotherobstructions).Inventoryreductionshouldnotbeconsideredtheobjectiveof
leanproduction,butabenefitoffreedupcapital.


5) EvolutionofManufacturing:
Theautomobileisthemachinethatchangedtheworldasitchangedtwicetheway
allproductsaremade.First,withFordimplementingmassproduction.Second,withToyoda
andOhnopioneeringleanproduction.Fromcraftsmanship,manufacturingproceededto
applyindustrialization,withTaylor.Carswereoncealuxury,untilFord'sMassProduction
SystemintroducedtheFordTandmadethecaraccessibleforthemasses.Fordfirstfaced
hardcompetitionwhenGeneralMotorswasintroducedtothemarket,whichhada
manufacturingsystemthatcomplementedFords(dividingmanagementandcreating
marketingandfinancialmanagement).Finally,ToyodaandOhno,inthe50s,devisedthe
ToyotaProductionSystem,whichappliedLeanproductionandJustintimemanufacturing.

6) ToyotaProductionSystemPrototypeforLeanProduction:
frombreaking
traditionalindustrialmethods,ToyodaandOhnodevisedtheTPSwithreducedsetup
times(itusedtotakemonthsandwasnotimportant)smalllotproductionand
onepieceflow(toproduceanything,oneunitatatime)employeeinvolvementand
empowerment(forhousekeepingandminorequipmentrepairs)qualityatthesource
(assigningresponsibilitytoworkers)equipmentmaintenance(preventiveinsteadof
responsive)pullproduction(applyingKanban)standardizingsupplierpartnerships.

7) America'sFallfromManufacturingGrace:
Leanwasnottheonlythingthathelped
Japantoriseinthemanufacturingworld.America'snewexecutives(WhizKids)had
noproductknowhow,allowingfinancialcontrolstodominateandneglecting
marketing,engineeringandmanufacturing.
Moderndevelopments:MRP(materialrequirementsplanning),CAD(computeraided
design),CAM(computeraidedmanufacturing),FMS(flexiblemanufacturingsystems).

8) TheImperative:
Leanhasbeenadoptedeverywhere.Someprogramsaredifficultto
implementandprovokeresistancewithinthecompany.Tonotadoptthesemethods,
howeverispotentiallydisastrous.

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