Lean Management & Toyota Production System: Principles, Tools, and Case Studies
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/104
There's no tags or description
Looks like no tags are added yet.
105 Terms
What is the bullwhip effect?
Small changes in customer demand grow into bigger swings in orders up the supply chain.
What causes the bullwhip effect?
Ordering decisions by buyers that overreact to fluctuations in downstream demand.
What are the primary reasons for the bullwhip effect?
Artificial demand variations, fear of excess inventory, excess ordering, and inconsistent responses.
What should you do when demand doesn't match the forecast?
Take a deep breath and decide whether to react, as some variation is normal noise.
What is the result of overreacting to demand changes?
Too much or too little inventory due to amplified reactions up the supply chain.
Where did Lean originate?
Post-WWII Japan, built on the legacy of Sakichi Toyoda.
Why did Toyota share its methods openly?
It viewed sharing as a social responsibility.
What are Toyota's core values?
Respect for workers, going to the gemba, problem-solving passion, and customer-first approach.
What does Kaizen mean?
Toyota's philosophy of continuous improvement.
What is Jidoka?
Stopping production when there is a quality problem and fixing it at the source.
What is the role of leaders in a Lean culture?
To act as coaches rather than top-down bosses.
What is Lean fundamentally about?
A culture built on mutual respect.
What is the primary job of workers at Seating Matters?
To improve their job, not just do it.
What is the biggest waste of all according to Seating Matters?
Untapped worker potential.
How does Seating Matters inspire workers?
By promoting continuous improvement and tapping worker potential.
What was NUMMI under GM known for?
20 years of failure due to staffing problems and poor performance.
Who did GM blame for NUMMI's failure?
The workers, citing issues like turnover and absenteeism.
What was the nature of the NUMMI joint venture?
Reopened in 1984 as a GM-Toyota joint venture with Toyota in charge.
What did GM promise Toyota at NUMMI?
Not to rehire any of the old workers blamed for the failure.
What did Toyota demand at NUMMI?
That GM find the original employees and ask them to return.
How did Toyota introduce its system at NUMMI?
Quietly, without announcements or all-hands meetings.
What was the result of NUMMI's joint venture?
It became one of the best plants in the GM system within a year.
Why did NUMMI work?
Respect for employees, education, coaching, and supportive management.
What Lean tools were used at NUMMI?
Kaizen, gemba, PDCA, and kanban.
What is kanban?
A visual pull system that signals when work or parts need replenishing.
Why does Toyota still use kanban?
It's visual and effective even if other systems fail.
What is the bigger lesson of NUMMI?
Changing management culture can significantly improve an organization.
What is a standardized common process?
A process that, once optimized and shared, becomes standardized.
Where are Lean questions asked?
At the gemba, right where the specific work is being done.
What are the buffers in Lean?
Inventory (the primary buffer), time, and capacity; Lean minimizes and optimizes them.
What characterizes resilience in non-Lean systems?
Large, unoptimized buffers that are costly and slow to adapt.
What is anti-fragility in Lean?
Optimized inventory, time, and capacity that allow a business to adapt and thrive after challenges.
Does Lean only work in manufacturing?
No, Lean works in services too.
Is Lean a one-size-fits-all approach?
No, it requires finding what works and adapting it.
Is Lean just about mechanical tools?
No, it encompasses philosophy, culture, and management style.
Does Lean only work in Japanese cultures?
No, NUMMI in California proves it can work elsewhere.
Do Lean workers succeed because they are highly paid?
No, they receive fair pay and normal rewards.
Is Lean only focused on efficiency and cutting inventory?
No, it targets any waste or problem that hinders customer value.
What is waste in Lean?
Anything that doesn't add value or exceeds the minimum needed resources.
Why does waste matter?
Customers will not pay for waste.
What does TIMWOOD stand for in Lean?
Transportation, Inventory, Motion, Waiting, Overproduction, Over-processing, Defects.
What is an example of motion waste?
Walking around a factory unnecessarily due to poor layout.
What is an example of overproduction waste?
Making several cups of coffee that no one ordered.
What are defects considered in Lean?
Time spent creating something the customer doesn't value.
What is value in Lean?
Anything that directly affects the customer and that they are willing to pay for.
What are the three kinds of value?
1) Customer value, 2) Business value, 3) Waste.
Where is value usually created?
When the product actually changes.
What is the biggest improvement opportunity in Lean?
Reducing or eliminating non-value processes.
How does Lean prepare businesses for unknowns?
By keeping them nimble and adaptable.
What does the river and rocks analogy illustrate?
Lowering inventory exposes hidden problems to fix them.
What did researchers find about Lean during COVID?
Lean-heavy companies emerged stronger post-pandemic.
What is the post-COVID trend regarding production?
Many companies are moving production back to the US or closer to home.
What are the Lean principles?
Start with customer value, map a value stream, flow continuously, pull based on demand, pursue perfection.
Who is Taiichi Ohno?
The father of the Toyota Production System.
What is the focus of Taiichi Ohno's quote?
Reducing the timeline from order to cash by eliminating waste.
What mindset should one adopt in Lean?
Think like a scientist; question everything and fix root causes.
What are the Lean book principles?
Custom-fit value, expose problems, pull not push, level the flow, standardize, fix problems at the start.
How does Lean view technology?
Lean welcomes technology to enhance its effectiveness.
What are the two kinds of gemba?
Work gemba (where work happens) and customer gemba (where the customer experiences the product).
What is an empathy map?
A tool used to understand the customer gemba.
What is the Uber gemba example?
The CEO learned that taking care of drivers is key to happy customers.
What does Menlo Innovations do?
Sends anthropologists to observe real users for better design.
What is one-piece flow?
Making and moving one item at a time through every step.
What is the box video example illustrating?
Filling one box completely before starting the next is one-piece flow.
What are the benefits of one-piece flow?
Less inventory, quicker quality checks, and faster finished products.
When is batch production acceptable?
In bakeries or for expensive machines that must run constantly.
What is takt time?
Available production time divided by customer demand.
What does a push system entail?
Producing as much as possible, assuming customers will take it.
What does a pull system entail?
Production driven by actual customer demand.
What is the pizza example illustrating?
Ordering from the menu represents pull, while pre-made pizzas represent push.
What is Heijunka?
Leveling production to work evenly and in sync.
What do muda, mura, and muri refer to?
Muda is waste, mura is unevenness, and muri is overburden.
Why does Lean keep a small buffer?
To manage the interrelation of muda, mura, and muri.
What is changeover/setup time?
A significant issue in manufacturing and services when switching models.
What is the cost of quality?
Investing in quality early to avoid expensive failures later.
What does the United Breaks Guitars video illustrate?
The high cost of quality failures reaching the customer.
What are the benefits of standardization?
Easier adaptation, faster problem-solving, and increased resilience.
What is the standardization paradox?
Standardization isn't boring; it allows for more engagement.
What is coercive bureaucracy?
Tedious rules and procedures that hinder productivity.
What is enabling bureaucracy?
Rules that provide freedom to get work done.
What was Starbucks like before Lean?
Top-down decisions and lagging indicators for decision-making.
What key insight did Starbucks gain?
Sales reports show what sold, but not what could have sold.
What lesson did Starbucks leaders learn?
To be humble, engage with employees, and respect their insights.
What were the results at Starbucks after Lean implementation?
Less tardiness, absenteeism, and increased employee pride.
What is a recurring theme across NUMMI, Uber, and Starbucks?
Leaders blamed workers, but the real issue was the system.