Japan had faced many challenges in rebuilding its economy post world war 2 which include
1. Economic challenges due to inflation leading to lack of cash to secure raw materials in
bulk
2. Not enough real estate space for a big factory which was a trend during that era
3. Lack of natural resources needed for manufacturing
However, all these obstacles did not stop Japan to advance into a manufacturing economy powerhouse in less than 20 years after the war. They have to use the fundamentals of just-in-time manufacturing by having smaller factories, short turnaround with little inventory build-up. Just in time means making what is needed, when it is needed and the amount that is needed means no inventory build-up.
Toyota had gone one step further by introducing Toyota production system is build on
1. just in time using continuous flow, takt time and pull system to build product base on
customer demand
2. Jidoka where the line is automatic with visual management to inform on production
status and clear segregation of man and machine function. Line are built according to
standards and refined with kaizen
By implementing these two fundamentals, waste such as inventory, waiting and defect are not created. The line is built with Toyota Production System (TPS) had caught the attention of the western world where Dr. Womack and team had adapted the TPS philosophy and term as lean manufacturing.
Fast forward to current covid 19 situation where many manufacturers especially the local SME are facing challenges such as
1. Over reliance of foreign worker
2. Constraint in Supply Chain
3. Poor management system
Perhaps it is high time for management mindset change and look into creating a systematic approach to run a company and adopting Lean management/TPS to turn the situation around. The core of TPS is an eastern philosophy of not to waste any resources given and if there is waste it must eliminate. Waste is equal to throwing money into the drain.
In order to implement TPS and lean management fundamentals which will transform a company ensure that
1. Top management must understand the concept of waste to find waste
2. Top management must have a mindset change of how to look at resources and
operational waste.
3. Top management must be willing to involve and walk the operations and process to
know what is going on
4. Hire lean consultant from a credible source to be the catalyst for transformation
About the author
Evelyn Tan is a trainer, book author and consultant with 3 decades of experience in quality engineering and management in multiple industries which include consumer electronics goods, industrial products, food, and aerospace. Her career has progressed from an engineer to a member of senior quality management. In this role, Evelyn has dedicated almost 30 years of her expertise to various companies, ranging from SMEs to large multinational corporations. She was in supplier quality management working with over 100 suppliers globally using lean and six sigma. This had resulted in supplier process transformation to consistently deliver good parts, amounting to a cost avoidance of millions of USD.
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