Its main premise, on which it bases its entire philosophy that we can well call the backbone, is the Elimination of Waste. We refer to Lean Manufacturing. Although its antecedents are located in the 1950s in Japan, it was until the 1990s when the term Lean Manufacturing / Manufactura Esbelta was coined in Spanish, by three American researchers in the work entitled The Machine that changed the World / The machine that changed the world.
Over the years, Lean Manufacturing has proven its high efficiency in the production area as a tool that guarantees the reduction of all types of waste within an entity, and par excellence, high operational efficiency. This time we will focus on defining what is Lean Manufacturing ?, where does it arise ?, its fundamental principles, its tools, applications in various industries and the feasibility of extrapolating its principles to all areas of the company, its natural evolution (Lean Enterprise) and how its tools make it possible to eliminate the waste of all types of resources in organizations, and not only in the manufacturing area as it has been stigmatized.
Lean thinking offers a complete and real alternative for professionals in Mexico and Latin America, companies, organizations, institutions and nations to implement within themselves a philosophy-culture focused on improving their competitive position, achieving high efficiency, reducing waste and continuous improvement.. Undoubtedly, an approach to Lean thinking is a possibility and / or the path towards Lean Companies and Nations, where a better use and administration of financial, material and human resources is made, and use is made, as well as In Lean Manufacturing, of all those production tools existing today, according to the organization's own requirements, such as 5'S, Theory of Restrictions, Kanban, Just in Time, ISO Quality Certification,Total Productive Maintenance (TPM), Six Sigma, Levelized Production (Heijunka), Process Verification (Jidoka), Devices to prevent errors (Poka Yoke), Continuous improvement (Kaizen), which are integrated into the new way of different business thinking, being part of a global concept, but not holistic as is the case of Lean Enterprise.
Evolution
Even today, there are great confrontations between the Americans and the Japanese about who invented or where the concepts-principles on which Lean Manufacturing is based truly arose. Undoubtedly, many of these were developed by Henry Ford with his in-line production system at the beginning of the 20th century, with which he contributed the standardization of parts and common measurement systems, which did not exist in the artisan era, and thereby reducing costs, using low-skilled operators in small operations, and establishing flow (one of the basic concepts of Lean, the process flow). At that time these Henry Ford innovations developed and totally revolutionized the automotive industry,The Model T- showed the optimization of a model and cut costs a lot with its production systems, however, Ford was reluctant to change the model.
At that time another company emerged in the United States, General Motors, which began to offer more varieties of models and took market away from Ford; However, they did not change their large production systems either and they began to have problems such as high inventory costs, highly specialized machines (special and non-general purposes), heavy and expensive tooling that took a long time to change, for which they manufactured very large runs. long that caused many inventories, whose costs began to rise because they had to be stored; they also had high waste, large plant spaces without productive utilization, costly design changes. However, the United States remained in that scheme until the Second World War. At this time the market was in demand.
After the Second World War, in the postwar period, Japan with few resources, but with great specialists such as William Edwards Deming, quality guru, Joseph M. Duran, Taiichi Ohno, Shigeo Shingo, Eiji Toyoda, among others, began to visualize the things in a different way, no longer like the West, and in order to compete in the post-war automotive market, they began to do so with few models and few resources, etc., but they were optimizing their production systems.
At that time, the United States opened its borders and focused on the world market, which is why it was until the late 1980's that it realized that Japan was taking away the market in the automotive industry and the American interest arises in knowing what had made Japan that was finally doing better than them, because until that time the United States continued with the same production methods and systems. The North American automotive industry did not change its methods of production, of managing inventories, of changing tooling quickly to have small batches.
Toyota Production System = Lean Manufacturing
When Americans wondered at the end of the 80's what the Japanese were doing and what they were not doing, which is why they were winning the market in the automotive industry then the Massachusetts Institute of Technology (known as MIT for its acronym in English), created a group of three people: James Womack, Daniel Jones and Daniel Roos who were sent to Japan to study what was happening in the Japanese automotive industry.
From their experience in Japan, these three specialists published a book called The Machine that changed the World / The machine that changed the world, with which the entire history of Lean Manufacturing originated. With this work, the West realized that there was a different way of doing things and the authors coined and / or introduced the Lean Manufacturing concept to refer, of course, to the Toyota Production System (the Japanese do not call it Lean Manufacturing, for them the technique they developed in the automotive industry and shared with the world is the Toyota Production System).
Based on the research carried out on the evolution of the global automotive sector and how the Japanese industry caught up with and surpassed the North American and European industries, primarily making use of many administrative tools in the production plant, many companies around the world incorporate those principles. Since then, knowing or applying Lean Manufacturing concepts is applying Toyota's principles, it is knowing how Toyota is doing it (which is being so successful) and then replicating it in other industries.
The research also showed that not all these tools were innovations, but were mainly effective uses of many other existing tools, Eastern and Western, which were adapted to the type of industry and culture in which they should be implemented. The tools covered under the Lean Manufacturing concept range from those focused on the organization of the workplace (5 S's, born in Japan and already adapted by the West) to those that seek almost 100% quality in the processes (6 Sigma, born in the USA and developed by Motorola) but seeking to match the quality indices imposed by Japan, passing through those that focus their attention on the search for efficiency in the management of other resources of the productive apparatus (inventories and machinery),but always seeking to eliminate any vestige of waste (MUDA) generated by the inefficiency existing in the production processes (Just in Time, Kanban, Total Productive Maintenance –TPM-, Level Production –Heijunka-, Process Verification –Jidoka-, Devices for prevent mistakes -Poka Yoke-, Continuous improvement -Kaizen).
When knowing the Toyota Production System, many gurus agree that many of those concepts developed in the automotive industry in the United States since the time of Henry Ford, were adopted by the creators of the Toyota Production System, but that they sublimate them, they perfect them, they make them grow. Toyota Production System (TPS) began in the 1950's, responding to the postwar Japanese automotive market. It was developed mainly by the great specialists William Edwards Deming, Taiichi Ohno, Shigeo Shingo, Eiji Toyoda, among others.
This system has been defined as a methodology - philosophy of excellence and continuous improvement aimed at eliminating waste and activities that do not add value to the processes for the manufacture, distribution and marketing of products and / or services, increasing the value of each activity carried out and eliminating those activities and sub-processes that are not required, allowing companies to reduce costs, improve processes, eliminate waste, increase customer satisfaction and maintain the profit margin. Over the years it has also been called: Flow Manufacturing, Just in Time Production and Demand Flow Technology.
From Lean Manufacturing to Lean Enterprise
Although it was foreseen by its creators, who make mention of the NIA (Not Invented Here) syndrome, and the resistance of people to apply the principles of Lean Manufacturing, considering that it was a system discovered and created in another part of the world., then they don't understand it and they don't accept it. James Womack and Daniel Jones mention that the concepts of Lean Manufacturing (arising from the Toyota Production System) are replicable to what they later called, in their second book Lean Thinking, Lean Enterprise, and in this sense they are applicable in any region of the world, in any industry, company, entity, organization and even nation.
"We believe that the fundamental ideas of lean manufacturing are universal - applicable anywhere by anyone - and many non-Japanese companies have learned this," Womack, Jones and Roos.
Why? Because Lean Manufacturing starts from the principle of eliminating waste, and whenever an activity is done, whatever it is, there is implicit waste. The idea of Lean Enterprise is to reduce or eliminate it. Lean Enterprise is a new way of thinking in organizations to eliminate waste, MUDA, activities that consume resources but do not add value.
Lean Enterprise concepts provide companies with tools to survive in a global market that demands higher quality, faster delivery at a lower price and in the required quantity. Also, being a holistic concept, lean thinking must involve suppliers and customers.
Lean Thinking
The 5 principles of Lean Thinking are:
- Define value from the customer's point of view: Most customers want to buy a solution, not a product or service Identify the value stream: Eliminate waste by finding steps that do not add value, some are unavoidable and others are eliminated immediately.Create flow: Make the whole process flow smoothly and directly from one step that adds value to another, from the raw material to the final consumer. Produce the customer's "pull": Once the flow is done, it is capable of producing by customer orders rather than producing based on long-term sales forecasts. Pursuing perfection: Once a company achieves the first four steps, it becomes clear to those who are involved that adding efficiency is always possible.
The fundamental part in the process of developing a lean strategy is that of the personnel, since it often involves radical changes in the way of working, something that by nature causes distrust and fear. What the Japanese discovered is that more than a technique, it is a good regimen of human relations. In the past, the intelligence and creativity of the worker has been wasted, and he is hired as if he were a machine. It is very common that when an employee at the lower levels of the organization comes up with an idea or proposal, they are criticized and even shut up. Managers sometimes don't understand that every time they 'turn off the light' on a worker, they are wasting money. The concept of Lean Enterprise involves the removal of controls and their replacement by leadership.The word leader is the key.
How to do it
According to Womack et al, the principles of lean thinking include:
- Efficient use of resources and elimination of waste. Teamwork. Communication. Continual improvement.
The goal is the total elimination of waste through:
- Define waste (Muda). Identify the origin. Plan the elimination of waste. Permanently establish a control to prevent recurrence.
To eliminate waste, it must first be identified. There are seven main types of MUDA, according to the classification developed by Ohno (Father of Just in Time):
- Mute of overproduction. Inventory move. Removal of repairs / rejection of defective products. Movement movement. Processing molt. Waiting move. Transport molt.
Once you have identified what type of waste you have, you have to attack it to eliminate it.
Opportunity for Mexico
As we can see, Lean or Lean Enterprise thinking is the logical evolution of Lean Manufacturing; that is to say, it is the application of the principles of the Toyota Production System to a company seen in an integral way, be it a manufacturing, commercial or service company of any nature. A company managed under the Light Company philosophy can achieve benefits such as:
- Reduce the waste chain dramatically. Reduce production costs. Reduce inventory and space on the production floor, storage and points of sale. Create more robust production systems. Create appropriate material delivery systems. Improves plant distribution to increase flexibility. Reduce delivery time (lead time). Improve quality. Optimize labor. Ensures greater team efficiency. Minimize waiting times (delays).
This is why in order to face the dynamism of world markets and meet the requirements of their clients, large and medium-sized companies established in Mexico and Latin America in the last five years have implemented methods, philosophies and / or techniques for improvement in their processes of manufacturing and operations in general, many driven by its international corporations, obtaining great benefits in improving quality, productivity, cost reduction and competitiveness.
However, in general, Mexican and Latin American companies have not transformed their corporate cultures, their general management systems to reduce the effects of the lack of competitiveness in our region, improve the productivity and quality of products and services that are developed in our markets, as well as reducing the high operating costs and inefficiencies that greatly affect our competitiveness.
Faced with this panorama, the implementation of the concepts of Lean Manufacturing or Lean Enterprise thinking is a highly feasible alternative for Mexican and Latin American MSMEs, the great base of our industrial and business structure, and mostly suppliers of large transnational manufacturers.
The principles of Lean Enterprise are viable for the management of a nation like ours, where waste is constant in each of our daily activities.
Lean thinking offers a complete and real alternative for Latin American professionals, companies, organizations, institutions and nations to implement within themselves a philosophy-culture focused on improving their competitive position, achieving high efficiency, reducing waste and continuous improvement.
Undoubtedly, an approach to Lean thinking is a possibility and / or the way to Lean Companies and Nations, where a better use and administration of financial, material and human resources is made, and use is made, as well as In Lean Manufacturing, all the production tools existing today such as 5'S, Theory of Constraints, Kanban, Just in Time, ISO Quality Certification, Total Productive Maintenance (TPM), Level Production (Heijunka), Process Verification (Jidoka), Devices to prevent errors (Poka Yoke), Continuous improvement (Kaizen), which are integrated into the new way of different business thinking, being part of a global concept, rather than holistic as is the case of Lean Enterprise. (See Lean Company Model Figure 1).
All these production techniques, methodologies and / or philosophies, as they have been called, are complementary, none replaces the other, on the contrary, they complement and integrate in a great form of business management as Lean Enterprise or Lean Company should be seen., seeking above all to eliminate waste or redundancies of its nature.
In this sense, in recent years there has been an important advance in Mexico regarding the knowledge of the basic principles of LEAN thinking. This has gained importance in the general interest of specialists (administrators and engineers) in charge of global corporate administration, being nowadays a topic of training and constant interest not only for professionals in the area of production and operations, but also extending their influence beyond the walls of the factory and / or production plant, towards all senior management and all company departments, since it is a business philosophy that makes it possible to comprehensively improve the competitive position in a market environment voracious and demanding that,To a greater or lesser extent (depending on the region of the world and the industrial sector in question), it demands from companies higher quality requirements and a variety of products (zero defects, greater reliability and guaranteed functionality), speed in delivery times, development and innovation of new products, deliveries in smaller and more frequent batches, lower prices, and in some cases, manufacturing of custom products.
Deep Cultural Change.
However, although the bibliography and studies on the principles of the Toyota Production System, Lean Manufacturing or Lean Enterprise have been increasing in recent years, as well as the replications in various companies, what the West has not understood and that we want to spread mainly for companies in Mexico and Latin America it is…
“Lean Enterprise is more than a methodology, more than applying tools, it is a way of thinking, it is a culture that implies a cultural change, an integral transformation in the way of doing things and that requires cultural values of the people like the Japanese: dedication, passion in doing things, rectitude, a highly efficient approach to the client, training of human resources, as well as aligning the whole environment to the new culture and vision of continuous improvement ”.
Lean Enterprise is, to a certain extent, an opportunity to show and explain at the business level that the lack of competitiveness of our companies is the sole and direct consequence of factors external to the business units. While it is true that factors such as the lack and adequate development of infrastructures, gaps and legislative deficiencies, lack of reforms in priority sectors, international negotiations and poorly functional and assertive government programs pre-exist in our economic and business environment and indirectly affect the efficient management of economic units, being large MUDAS that as a nation we have to eliminate, it is also true that the greatest areas of opportunity for companies are within them,that eliminating waste and implementing LEAN thinking and management can make them more competitive.
Beyond the old western style of knowing what economic benefits are obtained, or in business terms what will be the benefits that are obtained from implementing a Lean Enterprise philosophy, the essence of LEAN thinking is that it offers a new way of thinking. Later, and as in most areas of life, there are variable ways of defining the savings and cost benefits of the implementation, once the areas where there is waste have been detected, but it must be assumed that the fundamental thing is to Eliminate waste, optimize the use of business resources.
Article prepared in coordination with APICS Mexico Chapter, the Association for Operations Administration (www.apics.org.mx), global leader and main source of knowledge and information on best practices in operations management, including production, inventories, chain supply, material handling, purchasing and logistics, through its international certifications.
