Posted on Mon, Feb 08, 2010
In a January 30 article, the Wall Street Journal suggests that Toyota's standardization efforts are partly to blame for the massive size of the current recall. Specifically, "... using common parts and designs across multiple product lines, and reducing the number of suppliers to procure parts in greater scale-can backfire when quality-control issues arise."
We strongly disagree with any suggestion that standardization contributes to quality problems. On the contrary, effective standardization coupled with Lean Product Development methods leads to dramatically better designs and final products. (Read our complete article in our Operational Excellence Insight titled Lean Six Sigma and Standardization - Toyota's Recall)
Well we've had our say - what do you think? Post your comments on the causes and consequences of the Toyota recall below.
Posted on Sun, Jan 31, 2010
The headlines are screaming the news that Toyota's stuck accelerator problem has resulted in a number of deaths and an unprecedented recall.
After being an icon of quality. and the flag bearer for Lean, the news is tarnishing Toyota's reputation.
Does this situation expose a fundamental flaw in Lean technology or a momentary lapse in the execution of the Toyota Production System - or something else completely?
Post your thoughts on the matter below.
Posted on Tue, Jan 19, 2010
The battle between the advocates of Lean and those of ERP/MRP has been underway for decades and still shows no sign of being completely settled.
The "Lean Purists" argue that proper use of visually controlled Pull Systems, including Kanban, throughout the supply chain will satisfy business requirements without introducing Non-Value Added systems.
The "ERP Zealots" insist that practically speaking, some system is an absolute requirement to control and manage materials in all but the most simple businesses. They further argue that when properly applied, MRP can support Lean implementation.
The argument recently became quite personal for us while working with a small client in a make-to-order business. They had outgrown their informal production scheduling system and were implementing Lean methods in their plant. Their question to us was "What is the best way to load and manage production orders in the plant?" One faction favored a FIFO based pull system while others wanted to use the Shop Floor Capabilities of their ERP system.
With only this limited information, what are your thoughts on how to proceed? Join in the discussion and we will post what we actually advised the client in the next few days.
Posted on Wed, Jan 06, 2010
Over the holidays I attended a party and found myself in a discussion with another guest. Over a cold, adult beverage we traded the typical small talk about jobs and responsibilities. After explaining that I was a Lean consultant and what that meant, my new acquaintance said (jokingly), "Oh, so you are one of those guys who's shipping jobs to low wage countries".
I explained that in reality our work has saved thousands of jobs in North America by eliminating the wasteful content that encourages some companies to simply move to low cost regions. I don't think the guy meant any offense but, the more I thought about it, the more it bothered me.
I firmly believe that Lean and Six Sigma have kept and created jobs. Furthermore, consumers can buy higher quality products at lower prices as a result of the improvements in manufacturing that these technologies have provided.
But that's just me... What do you think? Are the economies of North America stronger or weaker as a result of Lean and Six Sigma? Do these technologies create net employment or reduce it? Please add your comments.
Posted on Tue, Nov 10, 2009
The concepts of Lean have been formally studied (outside of Japan) for twenty years - and far more if you include early versions of the technology dating all the way back to some of the concepts of Henry Ford. What will happen next?
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The fundamentals of Lean never change and good organizations will continuously apply them to achieve higher and higher levels of performance.
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The principles of Lean will evolve as new technologies and business tools develop
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Like all business improvement methodologies Lean will eventually be replaced by a new approach.
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Something else
We have our strong opinion - but what is yours? Share your thoughts by commenting on this blog and check back for the discussion.