One of the best examples of lean
management is the Toyota Production System, or TPS. Originally, TPS
was called Just-in-Time Production. TPS identifies seven different kinds of
waste that must all be identified and addressed in order for a business to run
smoothly. Eliminating waste will ensure that businesses have the highest levels
of production and quality possible.
TPS defines waste as any unnecessary thing. The seven
different kinds of waste under TPS are: over-production, motion, waiting,
conveyance, processing itself, inventory and correction. These factors all
contribute to and create waste. In order for waste to be removed, the production
process must be closely monitored so that changes can be made and production
can be streamlined.
Toyota believe that the correct results are created when
the correct production processes are used. Instead of wasting time on stopping
the production process to fix a problem, the aim should be to start off with a
high level of quality and then to maintain it. This completely takes away any
down time that results from machinery being fixed or adjusted. TPS operates by
only using machinery and technologies that have undergone rigorous testing and
that are proven to work reliably to produce a high quality product.
It is important that the production process should be
monitored and that the standard is constantly checked and maintained. Every
single employee must understand this and it must be reflected in the tasks that
they perform. In turn, the business will be able to increase its level of
production and its overall value.
If any waste if
discovered, eliminating it should be a priority so that the level of production
can be improved upon. Anything that removes value must be eliminated. Toyota
has shown great success with the TPS strategy. Many sectors have adopted their
principles and implemented them in their own companies.