Summary
In chapters 21 and 22 of “The Toyota Way,” J. Liker dwells upon Toyota’s approach to the technical principles of TPS. It states that the service sector (in terms of administrative and service operations) can gain valuable insights from this approach, particularly from the field of lean manufacturing. The author reveals how to apply the TPS principles of flow and the factors to be considered when applying this approach. The author emphasizes that the company’s people are the key factor in the success of the lean-approach. He noted that all the staff members and business associates ranging from the leaders responsible for any decision-making to ordinary employees, should be involved in this process with full responsibility and awareness.
Main Points
Every company trying to utilize the principles of the lean approach should go through the five stages: the determination of the added value, the determination of repetitive processes, preparation of the flow maps, the composition of the advanced stream mapping, and implementation of the plan. Needless to say that the plan should be implemented following the principles of the PDCA. To demonstrate the effectiveness of the lean approach, the author provides examples of companies that have significantly improved their performance when using this approach. For example, the Canada Post Corporation’s difficulties were connected to the organizations involved in sorting the items; they were mainly storages or warehouses. The main task was to automate the sorting equipment while the value-adding operations were left without proper attention (Liker, 2003). When the company decided to apply the lean approach principle, it was able to speed up its work significantly, empty the space occupied by warehouses, and make the flow processing continuous. After a few years of applying Toyota’s approach, the Canada Post has increased its level of profit and significantly accelerated the operations.
The author emphasizes the importance of mapping the value stream. The map reveals the company’s current operations, the material flows, and important information associated with the current processes. The map defines and evidences distinct losses in the system and helps to develop the intended processes. According to the author, “by developing a big-picture, macro value stream map of the current system, you bring everyone together to agree on all the waste in the processes” (Liker, 2003, p. 274). To eliminate the waste, the organization needs to consider and develop the macro-levels of the desired state of the system processes. It is necessary to divide all processes in 5 to 10 stages and consider the greatest wastes in detail. All the information should be communicated to all the employees to realize how the organization will gradually move to lean manufacturing. All the information mentioned in the scheme has to be updated every month, and it should gradually reduce adverse performance (Gao & Low, 2014). However, one of the most difficult aspects of this approach is defining the value of infrastructure operations. In this regard, the company needs to investigate and determine the basic stream to add value.
Furthermore, in chapter 22, the author discusses the importance of establishing links between all employees and stakeholders’ activities to ensure that they act jointly to achieve the common goal (Liker, 2003). The top management should strive for focusing on the creation of the long-term perspective of the value-added. This process involves all staff members and collaborates to develop the company’s best performance, and it should encourage the continuity of this philosophy. Also, several factors can affect the perception of the concept of lean manufacturing by leaders. First, it is the structure of ownership of the organization. Second, it is the training of their perspective leaders. Third, the influence of external circumstances that are beyond senior management power. Fourth, the presence of the person who has had previous experience of lean manufacturing. Despite these circumstances, the company’s business culture must always lead managers in decision-making.
Conclusion
I was able to draw several conclusions after reading these two chapters. To introduce a systematic and effective system of lean manufacturing, it is necessary to start with the transformation of the technical system. After that, it is important to review and reform the industrial culture. Before upgrading the entire system, it is crucial to test the pilot to add value projects. Also, creating the value stream map for the establishment of future concepts is handy. The map enables reducing waste up to a minimum. If necessary, the leaders should restructure the organizational structure to move to lean manufacturing.
Further, it is essential to understand and make use of favorable circumstances to obtain a financial benefit. All of the organization’s associates and staff should try to bring the performance in line with the value stream’s principles. It is important to note that it will be easier to understand its individual path of development by basing on its history. Finally, the continuity of leadership and involvement of experienced specialists in lean manufacturing will help get the best corporate results.
Answers
Analyzing the current state described in the scheme, it becomes evident that there are several types of waste. For instance, reworking adds cost as well as time spent on productions. Mitigating the errors that appear in the process adds more work and wastes the resources. Further, by producing the failed lots, the company tends to overproduce, which is another waste. The described wastes imply the unnecessary movement of materials that are needed for furnishing an item. While the unnecessary movement is inevitable, the workers are required to commit unneeded motions to fulfill their tasks, as per the scheme, the time spent waiting is another waste, which can also cause delays and should be considered a non-value added step. Due to excessive production and tests, the inventory becomes a waste, too.
Consequently, this type of waste, in its turn, ties up the capital. Also, complexity is one of the most adverse non-value-added points. Taking into consideration all of the previous categories of waste, it becomes evident that the operations require doing excessive work to accomplish the task.
The basic lean tool, which is creating the map, is handy when preparing the future state. It is crucial to determine the customer requirements as well as the scope of modification. The company should optimize the value making stages and choose the most helpful lean-approach. It is advisable to standardize the productions in a simplified manner to avoid the complexity and control the possible variations in the course of implementation. Additionally, the company should conduct regular checks to update the state and inform the staff about the outcomes. Moreover, it will be helpful to estimate the process improvements (regarding the percentage of P/T, L/T); thus, the updated lean value stream is simpler and requires fewer procedural stages.
It should be noted that human resources are the main waste in the organization. Over-relying on the human resource seems to be the biggest problem, while the workforce is involved in the overproduction and overworking. The fact of using more time than needed to perform the tasks should be considered by the company and eliminated as the biggest process waste.
References
Gao, S., & Low, S. (2014). Lean construction management. New York, NY: Springer.
Liker, J. (2003). The Toyota way. New York, NY: McGraw Hill Professional.