Scribd Logo
Upload

Welcome to Scribd!

  • 286 views

    0 Lean History

    Uploaded by

    Arief Dwi Hartanto
    This document provides a history of cost reduction and lean manufacturing techniques. It begins in the early 1800s with the development of machines to aid production. Henry Ford pioneered efficient assembly lines and mass production in the early 1900s. Taiichi Ohno at Toyota experimented with waste reduction techniques in the 1940s-1950s and helped launch the Lean Manufacturing revolution. Key lean concepts like just-in-time production and continuous improvement were developed. Over subsequent decades, lean spread to other industries and became a major strategy for improving efficiency and reducing costs across various business sectors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    0 Lean History

    Uploaded by

    Arief Dwi Hartanto
    286 views14 pages
    This document provides a history of cost reduction and lean manufacturing techniques. It begins in the early 1800s with the development of machines to aid production. Henry Ford pioneered efficient assembly lines and mass production in the early 1900s. Taiichi Ohno at Toyota experimented with waste reduction techniques in the 1940s-1950s and helped launch the Lean Manufacturing revolution. Key lean concepts like just-in-time production and continuous improvement were developed. Over subsequent decades, lean spread to other industries and became a major strategy for improving efficiency and reducing costs across various business sectors.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides a history of cost reduction and lean manufacturing techniques. It begins in the early 1800s with the development of machines to aid production. Henry Ford pioneered efficient assembly lines and mass production in the early 1900s. Taiichi Ohno at Toyota experimented with waste reduction techniques in the 1940s-1950s and helped launch the Lean Manufacturing revolution. Key lean concepts like just-in-time production and continuous improvement were developed. Over subsequent decades, lean spread to other industries and became a major strategy for improving efficiency and reducing costs across various business sectors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    286 views14 pages

    0 Lean History

    Uploaded by

    Arief Dwi Hartanto
    This document provides a history of cost reduction and lean manufacturing techniques. It begins in the early 1800s with the development of machines to aid production. Henry Ford pioneered efficient assembly lines and mass production in the early 1900s. Taiichi Ohno at Toyota experimented with waste reduction techniques in the 1940s-1950s and helped launch the Lean Manufacturing revolution. Key lean concepts like just-in-time production and continuous improvement were developed. Over subsequent decades, lean spread to other industries and became a major strategy for improving efficiency and reducing costs across various business sectors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 14

    ENGR 344 Cost Reduction in Manufacturing

    A brief history of Manufacturing and developments leading to the present

    Cost Reduction

    Questions

    1. What does cost-reduction (aka lean) mean? 2. When and where did lean originate? What is the history of lean? 3. Where does lean apply in business today? What professions? 4. Who is responsible for lean in companies today?

    Cost Reduction

    Historical Milestones
    1712, Thomas Newcomen develops steam engine 1775, Boring machine developed by Wilkinson (England) to produce

    cylinders for James Watts steam engine


    1785, Concept of interchangeable parts in guns by LeBlanc (France),

    however Eli Whitney (cotton gin, 1794) credited for IP concept in 1798

    1800s gasoline engine, industrial revolution mechanization,

    technology as the primary driver

    Cost Reduction

    Lean Historical Milestones


    Early 1900s, Henry Ford creates efficient assembly lines mass

    production Model-T referenced as first example of lean production with simple design and interchangeable parts
    1913 Ford implements a continuous-flow (moving) assembly line,

    slashing cycle times. For separates skilled trades from assemblers to speed up training.
    1920 Ford produces more than 2 million vehicles per year and cuts

    costs by 2/3

    Cost Reduction

    (mises.org)

    Lean Historical Milestones


    In the 1920s, Ford Motor Companys operation embodied the key

    elements of scientific management (Frederick W. Taylor, 1856-1915): standardized product designs mass production low manufacturing costs mechanized assembly lines specialization of labor interchangeable parts
    1926 Toyoda Loom Works, evolution of Jidoka 1937 TMC born (looms trucks for military finally automobiles)

    Cost Reduction

    Lean Historical Milestones


    Fords centralized management approach (and desire to mass produce

    everything) led to the decline of FMC in the 1930s GM became the auto leader
    WWII Japan attacks Pearl Harbor (Dec. 7, 1941) 1940s - Ohno (Taiichi Ohno, Toyotas chief production engineer)

    experiments with U.S. presses and perfects SMED (quick changeover)


    Attacks on Japan (August 6 & 9, 1945), Shortly after Assistance to

    broken Japan
    1950 Eiji Toyoda, Japanese engineer, visits FMC with Taiichi Ohno,

    beginning the Lean Manufacturing Revolution

    Cost Reduction

    (totalqualitymanagement.files.wordpress.com)

    Lean Historical Milestones


    In thirteen years of effort, the Toyota Motor Company had, by 1950, produced 2,685 automobiles, compared with the 7000 the Rouge [Ford Rouge Plant in Detroit] was pouring out in a single day. This was soon to change. (Womack, Jones, & Roos, 1990, p. 48)
    Early 1950s U.S. automotive is mighty U.S. and Europe embrace

    mass production and automation (Ohno sees waste)


    1950s 1960, Lean Manufacturing revolution is born While U.S. focuses on mass production, at TMC Ohno institutes defect

    prevention, teamwork, problem signaling, pull production, flow control, small lot sizes, supplier integration

    Cost Reduction

    Lean Historical Milestones


    1961, Unimate, First robot in production part of the automation

    revolution, human replacement concept


    Early 1970s, microprocessor technology developed programmable

    automation made possible


    1973 Fuel prices increase dramatically. Consumers preferences

    change: Want fuel efficiency, compact size


    Ohno and Eiji Toyodas 20-year focus on productivity, quality, and

    responsiveness (aka Just-In-Time) come to play

    Cost Reduction

    Lean Historical Milestones


    1980s - Quality Revolution, 6 born, Toyota grows in popularity, U.S.

    automobile manufacturers begin to see negative shift


    U.S. focuses on technology (automates waste at record rate) 1988 International Motor Vehicle Program (IMVP)/MIT researcher,

    John Krafcik, coined the term Lean: Lean Production uses half the
    human effort, space, tools, engineering hours to develop new products as mass production. Lean production has less inventory, fewer defects, and produces greater variety of products.

    (www.autofieldguide.com)
    Cost Reduction 8

    Lean Historical Milestones


    Late 1980s Toyota is legitimate threat, fuel efficiency and

    customer preferences are critical success factors, JIT and TQM


    become important to U.S
    1990s - Customer focus (customer is always right), Global

    Marketplace: outsourcing and international trade fully embraced, TQM more emphasized
    1990s Evolution of Six Sigma/DMAIC (Motorola), Lean

    manufacturing significantly grows in popularity, but implementation is difficult


    2000 Lean Six Sigma, lean is applied to fields other than

    manufacturing (e.g. construction)

    Cost Reduction

    Now
    Present TMC is worlds largest automobile manufacturer Present Lean applied to all fields, service industries, supply

    chains, business processes.e.g. Lean Office, Lean Healthcare, Lean Farming, Lean Construction, Lean Accounting, Lean Graphic Communications
    Present Lean successes are apparent in some companies, yet

    most companies struggle with implementation


    Present Telecommunications/internet leveled playing field in

    global marketplace, business conducted anywhere @ anytime


    Present - Green emphasis Present Employers want people who are motivated, trainable,

    educated, skilled (but with operations management abilities)


    Cost Reduction 10

    Now
    Present GM automaker (and suppliers) struggle to stay afloat Present Manufacturing/Construction impacted (mfg 9.3-12% of

    U.S. GDP as opposed to about 20% in 1980s)


    Present U.S. is in debt (China) and is losing market share Present Keeping jobs in U.S. a focus: 1 out of 3 college

    graduates lands job (2009 NACE), U.S. education in turmoil, population is aging healthcare in crisis, skills have become specialized, country is divided politically, cost of living increasing while salaries are decreasing, green emphasized while costs are being scrutinized, world population continues to grow

    Cost Reduction

    11

    Future?
    Irony when we look at 70+ years of history

    Much of U.S. problems are seen as consequences of short-term

    planning
    Today, Efficiency as the primary driver, NOT technology

    So, .where do you think the U.S. will we be in 10 years?

    Cost Reduction

    12

    References

    Womack, J. P., Jones, D. T., & Roos, D. (1990). The machine that changed the world: The story of lean production. New York: HarperCollins.

    Image References: John Krafcik - http://www.autofieldguide.com/articles/010502.html Taiichi Ohno http://totalqualitymanagement.files.wordpress.com/2008/11/taiichiohno.jpg Henry Ford - http://mises.org/images4/HenryFord-Model-T.jpg

    Cost Reduction

    13

    You might also like