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The History of Lean Manufacturing by the view of Toyota-Ford

Article in International Journal of Scientific and Engineering Research · August 2020

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International Journal of Scientific & Engineering Research Volume 11, Issue 8, August-2020 1598
ISSN 2229-5518

The History of Lean Manufacturing by the view of

Toyota-Ford
Pranav Y. Dave

Abstract—Manufacturing sectors and companies worldwide are successfully implementing lean principles within their processes. Nowadays, lean has
become an indispensable part of global players. Recently, lean manufacturing have moved passed the automotive industry and conquered almost all
suitable industries worldwide. Insurance companies, hospitals, even governmental organizations continuously improve their processes using lean
principles. Nevertheless, there was a time when the implementation of lean principles within companies and their processes was not a necessary and/or
competitive advantage. Where did the trend to a lean manufacturing world start and how was it passed through generations and nations? Who played a
role in developing the set of tools offered today by lean principles and where are the origins of this manufacturing change? This paper addresses all of
these questions and settles the roots of lean management. Moreover, it focuses on giving a brief and structured overview over the fundamental points
and key players of the lean history and evolution.

Keywords— lean principles, lean manufacturing, lean management, Toyota, Ford, productivity, Utilization.

——————————  ——————————

1. INTRODUCTION

IJSER
Lean manufacturing, lean production or often simply Lean,
is a production practice that considers the expenditure of
resources for any goal other than the creation of value to be
wasteful and thus a target for elimination. From the
perspective of the customer "value" is defined as the price
for which the customer would be willing to pay for. The
lean concept is not a new one, originating from the end of
19th century and the beginning of the 20th century, with
the development of the production systems by Henry Ford
and other producers. A brief overview over the evolution of
lean management over the years is offered by (Figure 1).
Key contributors to the evolution of the lean concept such
as Eli Whitney, Taylor, Gilbreth, Henry Ford, Shingo and
Ohno will be mentioned and discussed in the following
chapters. In today’s competitive world, there are so many
companies who actually develop their own area with few
resources. And at the end, they need more beneficial from fig. 1 History of the lean manufacturing
the manufacturing of the product department. Means there
are so many businesses, which opted few resources to get 2. THE ROOTS OF LEAN
more benefits from it. One of the best ways to increase the Starting with the 1980s, many models of business have been
effectiveness and efficiency of the product is to adopt the developed to teach and show managers how to run their
lean management technique. The manufacturing service, business. Many of these models have been conceptually
for profit, not for profit, education and health businesses sound; nevertheless just few offered a sustainable and solid
can be improve through the help of this technique. There basis for implementation. For many years before, managers,
are number of businesses, which depend on the small consultants and academics have struggled with the thought
industries. So the big industries are using fundamental of how to change, improve or replace existing business
components to define their importance in a different way. operations and processes. Most of the companies lacked in
Different industries have been implementing the lean a toolbox of techniques on how to improve their businesses
approach for producing better product in less time with and successfully conduct a transformation process [3].
fewer efforts [1],[2]. Therefore, during the late 1980s, many companies have
taken Japan, as a rising manufacturing nation, as an
example. Companies like Toyota, Nissan, Sony or Honda
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started to gain market leadership not only in the Japanese in order to make every piece right. This was due to current
market but also in North America and Europe. The sudden technology at the time, which did not allow the processing
and rapid rise of these companies set a quest for other of hard metals. The army but accepted the costs but the
market players, consultants and academics to find out how clients did not. Yet, no armories were concerned with what
these companies designed, implemented and operated their was happening between processes, how many multiple
manufacturing systems. These processes were to be called processes were taking place in order, how the chain
“lean production” processes. The origins of lean can be processes functions as a system and how each worker went
traced back to the American fears that the Japanese about the task.
manufacturing companies within the car industry would
take over and gain an unbeatable competitive advantage. This operation changed at the end of the 1890’s with work
These fears drove academics and Western competitors to from the first industrial engineers. A representative of these
conduct a series of benchmarking activities in order to engineers was Frederick W. Taylor. Taylor focused on
reach the roots of the Japanese success. The first results analyzing workers individually and their job methods. The
were published altogether in the publication “The Machine result of this analysis was Time Study and Standardized
that Changed the World by Womack, Jones and Roos” in Work. He introduced his ideas in a new management class
1990. For Western manufacturers this text provided the first called, “Scientific Management” or “Taylorism.” The main
written data concentrating on the Japanese success and on purpose of his ideas was economic efficiency improvement,
the huge gaps they would have to overcome in order to especially in the area of productivity [6]. The title of this
reach the Japanese success. The authors found the Japanese practice was controversial because the idea of introducing
manufacturing model to use not only less effort, but also the science in management was revolting. Taylor ignored

IJSER
less of any resource invested in the manufacturing circle: the attitude of those around him, focusing on the workers
fewer inventories, less space, less capital [4]. for better analysis and process time reduction. Shortly after
Taylor’s Time Study another representative figure, Frank
3. THE EVOLUTION OF LEAN MANAGEMENT Gilbreth, added his contribution into Lean history with
– A CULTURAL TRACE Motion Study and Process Maping. Apart from Taylor’s
The evolution and history of lean management can be philosophy, efficiency by reducing the length of the
traced back using different determinants. Nevertheless, the processes, Gilbreth, through Motion Study, intended
following chapter focuses on offering a cultural standpoint reducing the workers movements during the production
of the history of lean management over the years. process (ergonomy). In his vision Gilbreth was after the
workers wellbeing, while Taylor was after the profit.
3.1. The American contribution Gilbreth’s second contribution, Process Maping, focused on
Eli Whitney and his concept of interchangeable parts made all the process elements, even on non-value added ones and
the first step in the Lean production development and Just which usually were classifications of official elements
in Time (JIT). He became famous after inventing the cotton within the process. The main benefits of Process Maping
gin, but this was a minor accomplishment compared with are: waste exposure, revealing the process-flow, defining
the development of interchangeable parts, a concept that and standardization, and encouragement towards a better
would later become the basis of industrial evolution [5]. It understanding of the processes [7].
must be known that not Whitney created this concept of
interchangeable parts, but it is mentioned long before him, F. Gilbreth’s study was closely supported by his wife, Lilian
since the time of Chinese emperor Qin Shi Huangdi (221 Gilbreth, through the introduction of psychology in this
B.C.) who ordered the manufacturing of standardized parts field. By adding psychology to the mixture of ideas, Lilian
for the crossbows, parts that could be quickly changed on studied worker motivation and how it affected attitudes
the battlefield. Whitney improved this concept in 1799 and process results. F.W. Taylor, Frank and Lilian Gilbreth,
when he took a contract from the U.S. Army for the alongside other contributors, created the idea of
manufacture of 10,000 muskets, for the Quasi war, at the “eliminating waste.” This idea stands as one of the
unbelievably low price of $13.40 each. The concept of principles in JIT production system and Lean production.
interchangeable parts was later applied in companies as Henry Ford, the founder of Ford Motor Company, made a
Cadillac, Chrysler and this led to an increase in both major step in the evolution of Lean. Ford’s vision was to
production volume and speed. With the evolution of build a car for the great multitude. Thus the electrification
interchangeable parts concept in America, until 1850, all the of steam engine and the new production and management
armoires were producing standardized metal parts for techniques, allowed him to take the 20th century
standardized weapons but with large effort of manual work production to a whole new level and produce the famous
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“T Model” in only 93 minutes [8]. Therefore, starting with autumn of 1934, the first prototype of Toyota’s engine was
1910, Ford together with his right-hand, vice president manufactured. Also, Kiichiro encouraged the leadership to
Charlie Sorensen, created the first Intelligent Production visit American auto manufacturers in order to improve
Strategy. They took all the elements from the production Toyota’s mass production system with visualization. All
system—people, machines, tools and products—and efforts made by Kiichiro culminated from the introduction
arranged them in a continuous system for the T Model of the first Model A1 car prototype in May 1935. However,
production. We can conclude that this was the first all these efforts made by the Japanese seemed useless when
systematic approach of a process-flow. Ford’s management compared to the development of American the giants. The
approach was strongly influenced by the F.W. Taylor’s American domination ended in 1936 with the introduction
theory of Scientific Management, published in 1911. of the Enterprise Law automobile which planned the
Although Scientific Management allowed Ford to increase closing the Americans factories and subsidized three big
his productivity, this production system wouldn’t survive Japanese trucks producers companies: Toyota, Nissan and
against the future Japanese competition. Ford’s Isuzu. At this point the Japanese automobile industry had
accomplishments had a major impact on competitors, to develop freely without falling behind of U.S. companies.
resulting in many unsuccessful attempts from other Toyota tried to introduce the American mass production
companies. Failure was caused by the inability to system in the factory from Komoro. However, this system
understand the basic principles and apply Ford’s methods. had to be adapted according to both that time period and
the existing production system. The intention was to use
3.2. The Japanese contribution creativity in the development of a Japanese production
While Ford’s mass production system prospered during the system from a cultural and economic perspective. These

IJSER
period economic growth in America, Toyota Production efforts suffered resistance from employees, whom were still
System (TPS) was proposing another system of standards guided by the traditional production techniques with the
for obtaining maximum economic efficiency with minimal Ford system.
resources. The TPS’s key was to eliminate any kind of
waste. This meant any activity that didn’t add value to the The crucial moment in LEAN concept evolution was the
product: overproduction, stocks, transport, waiting time, decision made by Toyota to improve productivity from the
stocking space, maintenance/errors, and supply time. The inside. This decision was made due to the financial
approach of this basic TPS principle was made by situation after the Second World War, which meant
continuous improvement of the standards. Significant cancelling the modernizing of production equipment. To
differences between the two companies were the means by achieve an internal improvement, Toyota combined
which they would alter the standards. Ford was using his Taylorism elements (standardization) with specific
industrial engineers to define work standards, while Toyota company. These elements included production flow,
was passing this responsibility to the workers in Gemba multitasking and establishment of the production system.
(the production area) [9]. Taiichi Ohno, Shigeo Shingo and The results were better than expected. Production had
Eiji Toyoda developed the Toyota Production System grown so much that it reached overproduction. This lead to
between 1948-1975; originally it is being called Just-In-Time a production of waste, that TPS personally tried to
Production. However, for a better understanding how eliminate and place the company into possible bankruptcy.
Toyota came to this system, the company must be analyzed The company solved this issue by delivering automobiles to
from the beginning. In the first decades of the 20th century, the American army during the Korean War. Another step
the local automobile industry in Japan was poorly towards progression made by Toyota was the arrival of two
developed, so the production was relatively small. This great Quality Management parents in Japan: Edwards W.
changed in 1925, at the same time with the entry of the Deming (1950) and Joseph M. Juran (1954). Deming made
Japanese market as automotive Ford Company and also himself known in Japan with top management instruction
with General Motors in 1927. U.S. automobile companies in by introducing Statistic Quality Control (SQC) and defining
a short time (to 1934) covered Japanese automobile demand the famous “Deming circle”: Plan, Do, Check and Act. In
with 92%, while Toyota owned a percentage of only 3%. the eyes of the Japanese, Deming was a hero by putting a
solid foundation on Japanese quality [10]. Juran, the second
In order to fix this situation, the Toyota automotive branch player on the Japanese quality scene, made his appearance
(Toyoda Automatic Loom Works Ltd. at the time and later in 1954 bringing essential contribution in the areas of:
became Toyota Motor Co. Ltd.), led by Kiichiro Toyoda, the  Defining the Quality Management System, which
son of the founder of Toyota, Sakichi Toyoda. He is a basic requirement for every company
performed research in automotive engines and in the producing material goods and services?
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 Using the Pareto principal in control quality. It challenge nowadays remains the managerial question of
must be remembered the Pareto principal was what tools and principles to use and how to apply them.
created in 1906 by the Italian Vilfredo Pareto who Differences in culture, industry and infrastructures make it
observed that 20% of Italy`s population owned impossible for managers worldwide to implement the same
80% of its territory. lean tools and principles that once worked in Japan. The
 Non-quality cost study: “Juran Trilogy” defined approach must be held under continuous improvement and
quality components like planning, control and must be tailored to the realities of each specific company,
quality improvement [11]. industry and country.

At the end of the 1950s, Toyota introduced a stock gestation Currently in Europe the great promoters of this
system named Kanban, in translation “card” which was manufacturing system are companies like Porsche or
supposed to reduce the waste created in stocks [12]. As a Daimler. Suppliers of these companies already entered the
result of the TPS success, Toyota was supposed to invade Eastern European markets. Moreover, there is valid market
the American automobile market and place themselves information about further investment strategies of
amongst top companies like Ford and General Motors. automotive suppliers in countries from Eastern Europe.
Another factor that contributed to Toyota`s company When looking at a country like Romania, the increasing
development and the LEAN Management, was the concerns of the industry for lean manufacturing is
Japanese engineer Shigeo Shingo. Shingo created the SMED underlined not only through the increasingly lean
method and the “Non-Stock Production” system. This implementations in manufacturing companies but also
system was created in 1975 and means cutting the strings of through the emphasis on empirical research in this field.

IJSER
the stock products and the necessary space and their cost Higher education institutions in Romania and Eastern
[13]. Single Minute Exchange of Die (SMED) is a method Europe are adding lean management disciplines to their
applied for the first time in Toyota Company and follows a curricula in order to educate specialists. Last but not least,
reduction in the setting time of equipment. The method was the number of conferences in the area of lean management
successful, with the setting time being reduced from 1-2 and manufacturing, as well as the number of consultancy
hours to just a few minutes. Related to this method is the “6 companies is increasing rapidly throughout all Eastern
Sigma” concept developed by Motorola in 1985, which Europe.
came to the world`s attention in 1995 when it was
introduced by General Electric company via Jack Welch. 6 5. REFERENCES
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[2] M. Del Rocio Quesada Castro and J. G. A. Posada,
“implementation of lean manufacturing techniques in the
4. CONCLUSIONS bakery industry in medellin,” gest. E prod., vol. 26, 27 no. 2,
Comparing the Japanese and the American contributions, pp. 1–9, 2019.
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[10] Deming, “The man”,

https://www.deming.org/theman/overview (accessed October
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[11] VectorStudy, “Joseph M. Juran”,
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