Lean Production, the Ford Motor Company and the Piggly Wiggly chain of shops
The Lean philosophy has its roots in the “Toyota Production System” based on demand trends. It originated in Japan in the 1950s and 1960s, developed by a number of Toyota managers, including Sakichi Toyoda, Kiichiro Toyoda, and, in particular, the young engineer Taiichi Ohno.
Taichii Ohno made several trips to the United States to study the Fordist model developed in the early 20th century. In his opinion, the way the Ford Motor Company had organised its assembly lines was full of Muda (waste) and therefore it was necessary to break away from that production principle. The idea of what would become lean manufacturing was born instead from observing the organisation of the Piggly Wiggly chain of shops, which set up a mandatory route for their customers, along which products were placed on shelves and could be easily picked up and then paid for at the exit.
…“Combining cars and supermarkets may seem like a strange idea. However, after analysing the organisation of an American supermarket, we studied the similarities between that production organisation and the production of cars using just-in-time methods. A supermarket is a place where customers can get what they need when they need it and in the quantities they want.”
... “From the supermarket, we borrowed the idea of conceiving the process ‘upstream’ in the production line as a sort of shop. The process ‘downstream’ (customer) proceeds towards the initial process (supermarket) to purchase the necessary items (goods) at the desired time and in the desired quantity. It is then that the initial process immediately produces the quantity just picked up (restocking the shelves).’.
(T. Ohno, “The Toyota Way”, 1993, pp. 40–41)
The home of TPS
The Toyota Production System is a method of organising production derived from a different philosophy and, in some respects, an alternative to mass production, i.e. large-scale, series production based on Henry Ford's assembly line. At the heart of TPS is the idea of “doing more with less”, i.e. using the (few) resources available in the most productive way possible with the aim of dramatically increasing factory productivity.
The Toyota Production System is often illustrated with a figure representing a house built on two pillars: the Just-in-time and the Jidoka. The objective of this production system, indicated on the roof of the house, is to achieve the best quality at the lowest price and in the shortest time possible. This system uses a series of tools, described below, which all follow the common thread of hunting down and eliminating waste (Muda).
In order to pursue the elimination of Muda, all aspects of the production process are addressed with an approach based on continuous improvement (Kaizen) and in small steps. The extraordinary results achieved using this new production philosophy led to the success of TPS, also renamed Lean Production to highlight the aspect of eliminating everything that is superfluous and weighs down the system, generating costs rather than value.
Fordism was based on the principles of Taylorism and aimed to increase production efficiency through rigorous planning of individual operations and production stages. It was a production philosophy geared towards a limited range of models designed for long life and ever-increasing quality.
”Every customer can get a car painted any colour they want, as long as it's black.”
H. Ford, My Life and Work, 1922























