Lean Concepts

The imperative for the practice of lean manufacturing was, and still is, increasing profitability in low or no-growth markets, together with the ability to respond to peaks of demand when the market recovers.

The concept of lean has evolved from early concepts by Henry Ford and Dr Edward Deming, which heavily influenced the Japanese company Toyota in post-WW2 manufacturing to establish a new model which became known as the “Toyota Production System” or TPS, now synonymous with lean manufacturing.

The model used by Toyota and its suppliers was studied and popularised in a book published in 1990, “The Machine that Changed the World, a study of Japanese car makers” by Professors Womack and Jones of Massachusetts Institute of Technology (MIT). Professor Jones also founded the highly regarded Centre of Manufacturing Research at Cardiff University.

Today Lean Thinking (re-coined again so as to signal that the same techniques can be used in banks, service organisations, hospitals, and all manner of business systems), is being used world-wide in a growing number of organisations. It is applied at the point of contact with customers, as well as back room work. It applies to Engineering & Design offices, as well as traffic flow in urban centres.

Toyota suggests that it takes a smart person at least 20 years to complete full training, attitude, knowledge and comprehension of TPS in their work venue. However, it is widely recognised that significant savings can be achieved in the first 9 months as companies identify and eliminate the most obvious causes of waste. Beyond this early phase, companies require more sophisticated tools and approaches such as an Overall Equipment Effectiveness System that will enable them to identify the more subtle and previously hidden losses.