2/27/2025

Just-In-Time, TPS, and

Lean Operations
 JIT is a philosophy of continuous and forced problem
solving via a focus on throughput and reduced
LEAN MANUFACTURING Chapter 1 – inventory
Introduction to Lean  TPS emphasizes continuous improvement, respect
for people, and standard work practices
Manufacturing  Lean production supplies the customer with their
exact wants when the customer wants it without
Assoc. Prof. Nguyen Thi Xuan Hoa (PhD.) waste
 JIT emphasizes forced problem solving
Email: hoa.nguyenthixuan@hust.edu.vn
 TPS emphasizes employee learning and
empowerment in an assembly-line environment
 Lean operations emphasize understanding the
customer

1 2 3

1
 2/27/2025

Lean Enterprise Value: The Central Lean Works Everywhere What is Lean Thinking?
Concept • Export licensing:
• 56 steps to 21 steps
• Proposal:
• Cycle time from 30.6 days to 7 days
• 52 handoffs to 5 handoffs • Program support:
• Cycle time from 60 days to 30 days • $3M savings
Lean is a process of eliminating waste with the goal • 50% 1st pass yield to >90% 1st pass yield • Interface management:
• Proposal, contract, billing, and collection
The removal of Muda! Muri and Mura
• Payroll:
of creating value for enterprise stakeholders. • Reduced non-value added steps by 50%
steps Muda- Is a Japanese word for waste
• Generated $21M additional cash
-Lean Enterprise Value, Murman et al • 15 forms to 1 form • Engineering order release: Waste- any activity that absorbs resources & creates no
• Reduced signatures/ approvals by 25% • Cycle time from 76 to 4 days
• Recruiting: • Total queue time from 56 days to 60 minutes value!
• Cycle time from 14 days to 48 hours • Process definition:
• 50% reduction of paper resumes • Work package completion cycle from 4
months to 3 weeks
• Financial reporting:
• 13 weeks to 3 weeks

4 5 6

2
 2/27/2025

Ohno’s Seven Wastes Lean Thinking: Eliminating Waste with Lean Provides Positively-Reinforcing
the Goal of Creating Value
Waste is anything that does not add value from the Concepts, Practices and Tools
customer point of view
Customer-focused: Customer needs and expectations “pull” enterprise activities
Storage, inspection, delay, waiting in queues, and Delivering just-in-time: “Pull” based production
Knowledge-driven: Draws upon knowledge and innovation from everyone - workers,
defective products do not add value and are 100% Striving for perfect quality: Completely defect-free parts must flow to each
suppliers
waste subsequent process; quality designed-in, not based on inspection, mistake
Eliminating waste: Stresses elimination, not just reduction, of all types of waste proofing
 Overproduction
Creating value: Puts premium on “growing the pie”, not just reducing costs, to Flexibility and responsiveness: Small processing sizes and quick set-up times;
 Queues benefit all stakeholders ability to respond to shifts in demand
 Transportation Dynamic and continuous: Pursues on-going systemic as well as incremental Trust-based relationships: Mutual commitments and obligations, internally and
improvement - both innovation and continual improvement externally with suppliers
 Inventory
Continuous improvement (Kaizen): Continuous improvement through work
 Motion standardization, productive maintenance, root cause analysis, and worker
training and empowerment
 Overprocessing
 Defective products

7 8 9

3
 2/27/2025

5 Steps to Becoming Lean Five Lean Fundamentals HW

Specify value: Value is defined by customer in terms of specific products & services
Identify the value stream: Map out all end-to-end linked actions, processes and functions
necessary for transforming inputs to outputs to identify and eliminate waste
1. Define Value Customer Make value flow continuously: Having eliminated waste, make remaining value-creating steps
2.Identify the Value Stream Follow the Product “flow”
Prepare case study about Fast food company/ shop
3.Flow the Product Eliminate Waste Let customers pull value: Customer’s “pull” cascades all the way back to the lowest level to practice VSM
Produce Just-in-Time supplier, enabling just-in-time production
4. Pull
Pursue perfection: Pursue continuous process of improvement striving for perfection
5. Strive for Perfection Continuously Improve

Source: James Womack and Daniel T. Jones, Lean Thinking (New York: Simon & Schuster, 1996).

10 11 12

4
 2/27/2025

Theory vs Practice
Chapter 2: “In theory, theory and practice are the same, in practice they arenot.”
- Author unknown

The Origins of Lean

Discovering the Foundations

Learning by Doing is the most effective way to learn skills.

13 14 15

5
 2/27/2025

Taiichi Ohno’s version of Industrial Engineering Lean – Today

Thousands of books about

Taiichi Ohno had a version of Industrial Engineering that he called
lean have been published.
“Moukeru Industrial Engineering” or “Making Industrial Engineering”.
2018
In Japanese, “moukeru 儲ける”means “to make money/profits.”
Now
Meaning “The industrial engineering of making money.”
This what drove the development of the Toyota Production System.
Where do you start to learn about lean?

goo.gl/PGK4Ua
Link to Toyota’s original 1973 TPS Manual

16 17 18

6
 2/27/2025

The Observers Dilemma Most of what is written aboutToyota

What is Lean? What you see. is what they look like today
What you try to understand.
1/8 is visible
What you write about.

The secret structure of the 7/8 is hidden

system that creates the
effects that you observe.

Thousands of books Student’s dilemma - learning how to create a production system like Taiichi Ohno did for Toyota

19 20 21

7
 2/27/2025

Toyota Kata – Invented 2009

John Shook - Executive Chairman,
Lean Enterprise Institute and Lean
Global Network
Even Toyota Changes
Finish
I believe the spread of lean
has been both a matter of New Line Layout 2014
The “Toyota Kata’s“ are
diffusion and of dilution.
a blend of how many
I would add that, along
older Toyota experts
with the dilution, there’s
been more than a little apply their skills.
delusion, aided by Start

consultants selling things

under the name of “lean”
that are far from the None of the Toyota masters
original intent of the
thinking, system… use the Toyota Kata. Behaviors of Sensei’s after
About 1992
Illustrations courtesy of Christoph Roser
years of using the TWI skills

22 23 24

8
 2/27/2025

Leader Standard Work – Reinvented about 2005 Toyota’s Expectations for their Leaders “Toyota Way2001”
Toyota’s 30 page summary in 2001 triggered
Pages 227-231 in
Professor Jeffery Liker to write with his
the Toyota Way graduate students, their understanding of
Fieldbook outlines Toyota’s principles.
what Toyota expects
of their employees First draft had about 30 principles
for a typical day. defined. Publisher insisted it needed
to be reduced, so they matched
This is refined for Deming’s 14 Quality Principles.
Existed before consultants invented something else to sell managers.
specific positions. The book became a best seller since
American Insurance Companies developed it about 1950 from the Job The Toyota Way 2001 clarifies the values and publication in 2004.
business methods that all employees should
Instruction program and applied it to their management functions. Origins of defining expectations embrace in order to carry out the Guiding
started with the TWI programs. Principles at Toyota throughout the
company's global activities.

25 26 27

9
 2/27/2025

Value Stream Mapping – Invented 1999 Invention of 5S/6S by Consultants Reasons Why
Toyota did not use this
Ohno complained that the
tool inside the factory
supervisors had turned 4S into
a “lining up” competition
Ford’s CANDO, probably
1973 TPS Manual invented before 1920.

1989 TPS Handbook It originated as

Russia – 1920’s
part of a checklist
Mike Rother and John Shook in Job Methods
created a new tool for lean better
be able to see materials and Adapted from a tool to map
information flows. information and material 5S training was a ‘money tree’
flows from suppliers for consultants

28 29 30

10
 2/27/2025

Ohno’s Wastes List Expands How your effort is spent: Lean – 1988 to 1990
Adding Value Spending Money
Easy for them to be Makes it easy to look
accidently successful Poor Layouts and Adding Costs
like an expert. Transforming
without knowing why. Step
Public introduced to the term ‘lean’
Poor part presentation
to describe Japanese methods,
Baby-Sitting
Piling up work specifically Toyota in 1990.
Machines
Looking for part (in 1988 1990 2018
the pile or bin)
4 – Wastes1973 7 - Wastes
Unpacking – Now
1978
unwrapping parts
Loading tray to move Thousands of
These were for helping people discover to next operation books about
Work-Arounds ‘Lean’ have
the symptoms to disruptions in flow (people adapting to quality In 1988 the term of ‘lean’ been published.
and machine issues) Walking
Part of Lean is removing coined to describe Toyota’s
Rework - Sorting Repacking ‘Unnecessary Activity’ production system.
Lean is not about getting rid of waste, IMVP Study – Phase 1, 1979-90
it is about creating flow To effectively and efficiently deliver the product or service to the customer. Only one grad student visited
Lean is not about working harder or faster. all 70 factories in the study

31 32 33

11
 2/27/2025

Toyota shares their system with suppliers Lean – 1966 to 1968 Kanban = Virtual Conveyor
Kanban is one of the tools that make JIT function

1970 – started assisting Toyota’s first

The term of 1965 - kanban adopted for ordering outside 1962 - kanban adopted company wide Flow where you can,
sharing of their
their 1st tier suppliers productionsystem
‘lean’ coined to
describe Toyota’s
parts, 100% supply system, began teaching (machining, forging, body assembly, etc.) Pull where you can’t.
secrets with a Toyota system to affiliates - Taiichi Ohno
production
select group of
system.
suppliers

1973 –1st TPS Manual 1967 1970 1973 1980 1988 1990 2018

Industrial 1953 - supermarket system

tourism to try to Now Line
TPSManual understand the
Thousands of
in machine shop Line
Japanese secrets
1973 books about Customer
‘Lean’ have
Taiichi Ohno considers his been published. Line
Line
production to be stable
Toyota’s first Public introduced to The Kanban is the ‘pull’
TPS manual the term ‘lean’ to system that you implement
Process Grouping - BatchProduction
describe Japanese where you can’t create flow
methods, specifically
Toyota.

38 39 40

12
 2/27/2025

Progressive Kanban Implementation Kanban – getting ready to Synchronize Synchronizing Multiple Operations
1965 - Kanban adopted for ordering outside 1949 - Intermediate warehouses abolished (secondary storage
parts, 100% supply system, began teaching This does not show the
Toyota system to affiliates locations)
external suppliers to each area
The next stage was connecting the Kanban Rules
suppliers like the lines had been
synchronized. 1950 - Machining and assembly lines synchronized - visual control and
1962 - Kanban adopted company wide
andon system adopted in engine assembly
(machining, forging, body assembly, etc.)
Step by step, additional lines were 1955 - Assembly and body plants linked - main plant assembly line
setup on the kanban system, then production system (Andon, line stop, mixed load and automation
connected with each other
 autonomation) Transporting parts to a warehouse between work
areas is an unnecessary activity to be avoided.
1953 - Supermarket system in machine shop
There are many more guidelines to setting up a This requires synchronizing sequential departments.
1948 - Withdrawals by subsequent processes
(upstream transport)
kanban system. It is more than a set of cards, it 1958 - Warehouse withdrawal slips eliminated Buffers are used when the velocity is different
between operations. Large buffers hide problems.
can be any method of communicating and
Starting point… testing the idea limiting the WIP.
Ohno’s Kanban tool has the whole factory function asif it is a connected by conveyors. 40

41 42 43

13
 2/27/2025

Quick Die Change (QDC) - 1962 TWI usage about 1960 Lean – 1955 to 1957
Toyota’s first
The term of
sharing of their
‘lean’ coined to
productionsystem
American technology secrets with a
describe Toyota’s
limited demand in the production
TWI programs select group of
suppliers
system.
US, sold well in Japan
start spreading 1956 1967 1970 1973 1980 1988 1990 2018
around the world.
Industrial
Taiichi Ohno tourism to try to Now
Restart again considers his understand the
Thousands of
productionto Japanese secrets
about 2005. be stable books about
‘Lean’ have
Shingo claims to have It took Toyota 5 been published.

Image courtesy of Art Smalley invented the process at years to catch up

Toyota’s first Public introduced to
Toyota in 1970. their productivity
Toyota Brazil contributes to TWI programs in countries as of 1960 TPS manual the term ‘lean’ to
describe Japanese
Names it SMED. to the USA methods, specifically

the improvement process. Toyota.

44 45 46

14
 2/27/2025

Catch up Productivity Toyota’s Growth Creates Problems How to Manage the Growth

Shingo starts teaching

P – Course
1955 - 1980

Basic Industrial
Learned customer focus
from GM in the 1930’s
Engineering
The goal to catch up was driven by what he
First University IE

236,005
7,398
experienced at Ford’s River Rouge Plant Growth in customer demand strained the
Program in Japan
ability of the production system to deliver started in 1951
~35% annual compounded increase

47 48 49

15
 2/27/2025

Lean – 1955 Getting to StandardWork Basic IE skills needed to create standard work
Shigeo Shingo starts teaching Toyota’s first
The term of
‘P Course’ at Toyota sharing of their
‘lean’ coined to
productionsystem
1955 - 1980 secrets with a
describe Toyota’s
production
select group of
system.
suppliers

1956 1967 1970 1973 1980 1988 1990 2018

Industrial
Toyota Taiichi Ohno tourism to try to Now
productivity considers his understand the
catches up to productionto Japanese secrets Thousands of
the USA be stable books about
‘Lean’ have
been published.

Toyota’s first Public introduced to

TPS manual the term ‘lean’ to
describe Japanese
methods, specifically
Toyota.
Time Study + Layout + Inventory + TWI

50 51 52

16
 2/27/2025

Lean – 1951 Gap between Ford and Toyota - 1950 Lean – 1951
TWI Programs
Eiji Toyoda works for
Toyota’s first
Productivity Comparison Introduced Toyota’s first
3 months at Ford’s sharing of their
The term of
sharing of their
The term of
‘lean’ coined to ‘lean’ coined to
River Rouge Plant productionsystem
secrets with a
describe Toyota’s
productionsystem
secrets with a
describe Toyota’s
production Eiji Toyoda works for production
select group of select group of
system. 3 months at Ford’s system.
suppliers suppliers
River Rouge Plant
1951 1956 1967 1970 1973 1980 1988 1990 2018 1951 1956 1967 1970 1973 1980 1988 1990 2018

Industrial Industrial
Toyota Taiichi Ohno tourism to try to Now Toyota Taiichi Ohno tourism to try to Now
productivity considers his understand the productivity considers his understand the
catches up to productionto Japanese secrets Thousands of catches up to productionto Japanese secrets Thousands of
the USA be stable books about the USA be stable books about
‘Lean’ have ‘Lean’ have
been published. been published.

The Productivity Gap was why

Public introduced to Public introduced to
Toyota’s first Taiichi Ohno needed to develop Toyota’s first
TPS manual the term ‘lean’ to
describe Japanese
a better production system
Stop Doing List TPS manual the term ‘lean’ to
describe Japanese
methods, specifically methods, specifically
Toyota. Toyota.

53 54 55

17
 2/27/2025

1951 TWI Introduced Building Ohno’s Production System The System Evolves
Common Transferable
Needs Skills
Principles of Flow TWI skills
1. Put Processes in Sequence

+ =
Job Instruction
2. Synchronize Processes Job Relations
3. Balance Work Content Job Methods
4. Balance Work Pace
Every
Specialized
Organization Ohno observed Flow in the 1930’s
Knowledge
is Different Experimented with implementing Flow
Studied Ford’s methods

The objective is to achieve flow = Ohno’s “River System”

56 57 58

18
 2/27/2025

Lean is about organizing space and time Successful Improvement Programs

Lean – 1950
to produce the greatest results with the Havea leader thatcreates an environment where innovation can happen
1950 Toyota’s financial
crisis and labor strike Toyota’s first
sharing of their
productionsystem
The term of
‘lean’ coined to
least effort. Henry Ford Taiichi Ohno
describe Toyota’s
Eiji Toyoda works for
3 months at Ford’s
secrets with a
select group of
suppliers
production
system.
(with resources like time, money, materials, labor) Yukio Arima
River Rouge Plant James Couzens
1951 1967 1970 1988 Charles Sorensen Itsuo Mamiya
1956 1973 1980 1990 2018
• Creating Flow was Ohno’s original objective Max Wollering Kikuo Suzumura
Harold Wills Takeo Watanabe
TWI introduced. Toyota Taiichi Ohno
Industrial
tourism to try to Now • It was desired as a ‘competitive advantage’ Oscar Barnholdt Masanobu Morita
productivity considers his
Ohno starts strong
effort to develop catches up to productionto
understand the
Japanese secrets Thousands of • Principle of Least Action Carl Emde List courtesy of Art Smalley
Key men in Ohno’s machine shops
productionsystem. the USA be stable books about William Knudsen
‘Lean’ have
Focus on catching been published. Nature has developed
up to America
efficient systems A successful Industrial Engineer is part of a team.
The banks force Toyota to Toyota’s first Public introduced to Like the ant or bee
TPS manual the term ‘lean’ to paths that over time
spin off the sales group
into a separate company
Union demands “Respect for People” –
settlement with Toyota adopting the
describe Japanese
methods, specifically
Toyota.
discover optimal routes
Success is a team sport
TWI programs.

59 75 76

19
 2/27/2025

Creating a Lean Supply Chain

77 78 79

20
 2/27/2025

Creating a Lean Supply JIT Purchasing

Elements of a Lean Supply Chain
Chain
Characteristics of JIT Purchasing--
What is lean? Purchase in small lots with frequent deliveries
“A philosophy that seeks to shorten the time between the JIT Purchasing Mutual, consistent improvement by the buyer and supplier
customer order and the shipment to customer by JIT Transportation Collaborative efforts between buyer and supplier
eliminating waste” John Shook Efficient point-to-point communication linkages
JIT Operations The “rights”--
We can reduce lean to three elements (Womack and right quantity
Jones)-- right time
Flow right quality
Pull
Striving for excellence

80 81 82

21
 2/27/2025

Traditional Point-to-Point
JIT Purchasing Communication Linkages Communication Linkages
Engineering Engineering Engineering Engineering

Quality Quality Quality Quality

Control Control Control Control

What kind of items are best suited for a just-in-time Purchasing Sales Purchasing Sales
purchasing system?
Production Production Production
Production
Planning Planning Planning
Planning

Transportation Transportation
Transportation Transportation

83 84 85

22
 2/27/2025

JIT Purchasing JIT Purchasing--Supplier JIT Transportation

Expectations Production Supplier Production
Challenges facing U.S. firms when pursuing JIT
Inspection
Purchasing with suppliers-- A longer-term business Correct and firm material
Size of supply base arrangement and product Packing

Geographic dispersion Fair financial return specifications Storage

Incomplete communication and information sharing Adequate time for planning Parts designed to match Shipping
Inconsistent supplier quality Accurate forecasts the supplier’s process
Poor relationship between buyers and sellers capability
Transport Trucking Transport

Smoothly timed order Receiving

How can firms counter these challenges?
releases Inspection
Minimum number of Storage
change orders
Production
Customer Production

Traditional Just-in-Time

86 87 88

23
 2/27/2025

JIT Transportation JIT Transportation Designing a JIT

Transportation System
Long-term dedicated contract carriage replaces
Replacement of expendable packaging commercial carriage as the primary mode of Organizational Structure:
Change the organization
transportation
with reusable containers to meet JIT requirements
Focus on frequent deliveries of small quantities of many
Frequent deliveries made to the point of parts versus large quantities of fewer parts
use Modified shipping and handling equipment Number of Carriers:
Reduce the number of carriers to four
Side loading trucks or fewer--one for each region
Regular and repeatable delivery schedules Smaller trucks (similar to beverage trucks)
(closed loop systems) Point of use doors at production facilities Contract Basis:
Put 100 percent of transportation
services on a contract basis

89 90 91

24
 2/27/2025

Designing a JIT
JIT Operations
Transportation System
Inventory pull systems/visible signals
Facility layout changes/work cells
Computer Interface:
Establish extensive computer interface
Set up reductions
with all contracted carriers Level build schedules
Uniform loading
Total quality and continuous improvement
Regular Pick up and Delivery:
Pick up all freight from suppliers and Standardized material handling/containers
deliver on a scheduled basis Product and process simplification
Total preventive maintenance
Efficient Handling Equipment: Flexible workforce
Use state-of-the-art technology Teamwork
and handling equipment
Right performance measures

92 93

25