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Lean Thinking: Joel Cutcher-Gershenfeld
Lean Thinking: Joel Cutcher-Gershenfeld
Module 1.1
Joel Cutcher-Gershenfeld
Senior Research Scientist, MIT Sloan School of Management and
Executive Director, MIT Engineering Systems Learning Center
Presentation for:
ESD.60 – Lean/Six Sigma Systems
MIT Leaders for Manufacturing Program (LFM)
Summer 2004
These materials were developed as part of MIT's ESD.60 course on "Lean/Six Sigma Systems." In some cases,
the materials were produced by the lead instructor, Joel Cutcher-Gershenfeld, and in some cases by student teams
working with LFM alumni/ae. Where the materials were developed by student teams, additional inputs from the
faculty and from the technical instructor, Chris Musso, are reflected in some of the text or in an appendix
Overview
¾ Learning Objectives ¾ Session Design (60-90 min.)
¾ Part I: Introduction and Learning
¾ Awareness of the contrast
Objectives (1-2 min.)
between “mass” and “lean”
¾ Part II: Key Concept or Principle
mindsets
Defined and Explained (5-7 min.)
¾ Appreciation of the historical ¾ Part III: Exercises and Activities
context for lean thinking Based on Field Data and
¾ Ability to engage in lean Scenarios that Illustrates the
thinking with respect to Concepts or Principles (45-60
application examples (5S’s, 7 min.)
Wastes, and others) ¾ Part IV: Common “Disconnects,”
Relevant Measures of Success,
¾ Increased ability to teach
and Potential Action
others about lean thinking Assignment(s) to Apply Lessons
Learned (15-20 min.)
¾ Part V: Evaluation and
Concluding Comments (2-3 min.)
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Redefining “lean”
Definition:
Source: Lean Enterprise Value: Insights from MIT’s Lean Aerospace Initiative by Earll Murman, Thomas Allen, Kirkor Bozdogan,
Joel Cutcher-Gershenfeld, Hugh McManus, Deborah Nightingale, Eric Rebentisch, Tom Shields, Fred Stahl, Myles Walton,
Joyce Warmkessel, Stanley Weiss, Sheila Widnall, (Palgrave, 2002)
© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 3
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Two mindsets
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Where to begin?
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Historical context: The changing nature of work
1800 and earlier 1900 2000 and beyond
Craft Production
Socio: Decentralized Enterprises
Mastery of Craft
Tech: Custom Manufacture
Specialized Tools
Mass Production
Socio: Vertical Hierarchies
Scientific Management
Tech: Assembly Line
Interchangeable Parts
Knowledge-Driven Work
Socio: Network Alliances
Team-Based Work Systems
Tech: Flexible Specialization
Information Systems
Adapted from: “Knowledge-Driven Work: Unexpected Lessons from Japanese and United States Work Practices” (Oxford
University Press, 1998)
© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 6
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
A Lesson From History
¾ 150 car makers in Indiana since the
turn of the century -- only 3 doing final
assembly of cars in Indiana today
(Honda, Subaru, and Toyota)
¾ Leading manufacturer -- Auburn
Motors -- established an assembly
line, but it was fixed for chassis --
moving manually from one set of saw
Image removed due to copyright considerations. horses to another -- and they resisted
abandoning wood for steel in body
frames
¾ What will people in the future say
about a plant that had some group
meetings, some new measurables,
some preventative maintenance,
some in-station process control, some
reduced in-process inventory, and
some coordination among production,
Source: Auburn & Cord by Lee Beck and Josh B. Malks, Motor Books, Intl., 1996
maintenance and engineering?
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Historical context: Transformation initiatives
Associated
1950s 1960s 1970s 1980s 1990s 2000s
Team Structure
Human Relations Movement Work Redesign Human group
(on line/off line)
Semi-autonomous
Socio-Technical Work Systems (STS)
teams (on-Line)
Work-out events
Re-Engineering
(off-line)
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Historical context: Emergence of lean
Selected Elements of Toyota Production System Discussion Question:
Implemented over Three Decades:
¾ “Pull” vision ¾ It took close to 30 years
¾ Kanban (card) system for Toyota to develop all
¾ Production leveling of the aspects of the
Toyota Production
¾ Reduced set-up time (Shingo) System, including the
¾ Jidoka (people giving wisdom to machines) lean thinking that goes
¾ Statistical Process Control (SPC) with that system. How
¾ Quality Circles long do you think it
¾ Kaizen (continuous improvement based on might take a large
knowledge) aerospace company
¾ Poka-yoke (error proofing) such as Boeing or
Lockheed Martin or
¾ Adnon (visual display) Pratt and Whitney to
build the same
Case Example – Kanban: capability -- 30 years,
1950s First kanban experiments 20 years, 10 years, 5
1960s Kanban introduced company-wide years?
1970s Kanban distributed across suppliers
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Auto industry data: A lean story?
(data from The Machine That Changed the World)
Toyota
20
Chrysler
Auto Production (millions)
Ford
GM
“Lean”
Market Capitalization
15 1998-2001
US
10 Production
5 “Anorexic Lean”
Japanese “Bulimic Lean”
Production
1947 1954 1961 1968 1975 1982 1989
Year
1. Data from Womack, Jones and Roos, The Machine that Changed the World, The Free
Press, 1990.
Source: Ted Piepenbrock 2003, Engineering Systems Division Doctoral Seminar, Massachusetts Institute of Technology
© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 10
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Airline industry data: A lean story?
Total
Airline Profits
(1970-2002)
$20 b
“Higher, Faster, Farther”
$15 b Network Carriers
Hub & Spoke Networks
$10 b Wide Body Planes
Southwest
All Others
$5 b
American
Delta
$0 b
“Better, Faster, Cheaper”
-$5 b Low-Fare Carriers
Point-to-Point Networks
Market Capitalization -$10 b Narrow Body Planes
2002
-$15 b
-$20 b
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Airline industry data: Another look at the
picture
Deregulation
$25b
$20b
$15b
$10b
Airline Profitability
$5b
$0b
-$5b
-$10b
-$15b
-$20b
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
Year
Source: Presentation on “Enterprise Design for Dynamic Complexity: Enterprise Product Strategy” by Ted Piepenbrock at the
Lean Aerospace Initiative Product Development Community Meeting, (October, 2003)
© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 12
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Lean thinking: A mental model
Womak and Jones:
¾Specify value
¾Identify the value stream
¾Make value flow continuously
¾Let customers pull value
¾Pursue perfection
Source: James P. Womak and Daniel T. Jones, Lean Thking, New York: Simon and Schuster, 1996.
© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 13
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Exercise: The Seven Wastes and the Five S’s
The Seven Wastes The Five S’s
¾ Over Production ¾ Simplify or Sort (seiri)
¾ Waiting ¾ Straighten or Set
¾ Transportation (seiton)
¾ Inventory ¾ Scrub or Shine (seiso)
¾ Processing ¾ Stabilize or Standardize
¾ Motion (seiketsu)
¾ Defects ¾ Sustain or Self-
Discipline (shitsuke)
What changes are needed in technical/physical systems to address
the Seven Wastes?
What changes are needed in social systems – including what new
ways of thinking?
Do the same analysis with respect to the Five S’s
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Mass Production (“push”):
Auto Assembly Plant
❑❑❑❑❑❑❑❑
M A T E R I A L
STORAGE WELD STORAGE
☞
S☞ ASSEMBLY
RECEIVING WAREHOUSE
T
STAMPING REPAIR
Total Time in Plant : Weeks
Value Add Time : Minutes
Designed to Maximize : Long Production Runs SHIPPING WAREHOUSE
Buffers Against Uncertainty
☞
ORDER CASH
❑❑❑❑❑❑❑❑
M A T E R I A L
Total Time in Plant
Value Add Time
:
:
Hours
Minutes
Designed to Maximize : Elimination of Waste
PULL
Creation of Value
STAMPING
❑❑❑❑❑❑❑❑
M A T E R I A L
ORDER CASH
Multi-plant/Program
Plant
Design and Development Components & Materials Æ Finished Goods Delivery & Sustainment
Diagram from Mike Rother and John Shook (1998). Learning To See: Value Stream Mapping to Add Value and
Eliminate Muda. The Lean Enterprise Institute. ISBN: 0-9667843-0-8. Courtesy of Lean Enterprise
Institute, Inc. Used with permission.
Source: Presentation by Matthias Holweg on “Latest Developments in Lean Thinking,” CMI
© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 18
The Deming Cycle
(what to do;
Plan for improvement)
¾ Full Group
¾ Identify patterns in the data and overall implications
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
What is the Relationship of the
“Disconnects” with this Model?
☞ PULL
INTERDEPENDENCE
☞ FLOW
☞ STABILITY
☞ INFRASTRUCTURE
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 TIME
☞
Adapted from: Materials Developed by WorkMatters, LLC in Collaboration with the Ford Motor Company��
© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT 6/9/04 -- 21
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Conclusion
¾ Return to the Definition:
“Becoming ‘lean’ is a process of eliminating waste with the goal
of creating value.”
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
Selected Sources – Chronological Order
¾ Womack, James P., Daniel T. Jones and Daniel Roos, The Machine that Changed the
World, The Free Press (1990).
¾ Womack, James P. and Daniel T. Jones, Lean Thinking: Banish Waste and Create
Wealth in Your Corporation, Simon & Schuster (1996).
¾ Cutcher-Gershenfeld, Joel, Michio Nitta, Betty Barrett, Nejib Belhedi, Simon Chow,
Takashi Inaba, Iwao Ishino, Wen-Jeng Lin, Michael Moore, William Mothersell,
Jennifer Palthe, Shobha Ramanand, Mark Strolle, and Arthur Wheaton, Knowledge-
Driven Work: Lessons from Japanese and U.S. Work Practices. New York: Oxford
University Press (1998).
¾ Fujimoto, Takahiro, The Evolution of a Manufacturing System at Toyota, Oxford
University Press (1999).
¾ Ohno, Taiichi, Toyota Production System: Beyond Large-Scale Production,
Productivity Press, (1978; English translation,1988).
¾ Murman, Earll, Allen, Thomas, Bozdogan, Kirkor, Cutcher-Gershenfeld, Joel,
McManus, Hugh, Nightingale, Deborah, Rebentisch, Eric, Shields, Tom, Stahl, Fred,
Walton, Myles, Warmkessel, Joyce, Weiss, Stanley, Widnall, Sheila; Lean Enterprise
Value: Insights from MIT’s Lean Aerospace Initiative, London, Palgrave (2002).
¾ Gittel, Jody Hoffer, The Southwest Airlines Way: Using the Power of Relationships to
Achieve High Performance, McGraw-Hill (2003).
¾ Charts and Graphs from Presentations by Ted Piepenbrock in ESD Doctoral Seminar
and other forums (2003).
¾ Charts and Graphs from Presentation by Matthias Holweg on “Latest Developments in
Lean Thinking,” CMI (2004).
Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion