Taiichi Ohno

4.1. Core Principles: Just-In-Time (JIT) and Kanban

The core of TPS revolves around the fundamental concepts of Just-In-Time (JIT) production and the Kanban system, both central to its efficiency and operational philosophy. Kiichiro Toyoda's "Just-In-Time" principle emphasized producing only what is needed, when it is needed, and in the amount needed. Ohno further developed this concept into a practical system. He distinguished between "in time," meaning "on time" or "punctual," and "on time," which implies meeting a deadline. For industrial production, which must adapt to constantly fluctuating demand, merely being "on time" is insufficient. Instead, the philosophy of "in time"-ensuring that production is "just in time" to meet demand-is crucial for reducing waste.

Ohno's practical implementation of JIT diverged significantly from the traditional image of modern industrial production, often symbolized by Charlie Chaplin's film Modern Times. For instance, Ohno advocated for immediately stopping the production line when an abnormality occurred, allowing for problem-solving rather than continuing production with defects. Another example of his approach was the principle that any production exceeding 100% of the planned output was considered "over-production," a form of waste. These ideas were integral to the development of the `かんばん方式<sub>Kanban hōshiki</sub><sup>Japanese</sup>` (Kanban system), a scheduling system for Just-In-Time production that uses visual signals to trigger production and delivery.

4.2. Concept of 'Muda' (Waste)

A pivotal aspect of Ohno's work was his systematic identification and elimination of `ムダ<sub>Muda</sub><sup>Japanese</sup>` (waste) within production processes. Ohno believed that any activity that consumes resources without adding value to the product or service from the customer's perspective is waste. This core strategy was aimed at achieving operational excellence, improving efficiency, and enhancing overall workplace conditions by removing non-value-adding activities. His focus on waste reduction not only streamlined production but also contributed to a more efficient and less burdensome working environment.

5.1. The Seven Wastes

Ohno was instrumental in developing the "Seven Wastes" model, which has become a core concept in many academic and practical approaches to efficiency. These seven categories of `ムダ<sub>Muda</sub><sup>Japanese</sup>` (waste) are:

• Delay, waiting, or time spent in a queue with no value being added:** This refers to periods of inactivity for workers or machines due to bottlenecks, material shortages, or inefficient scheduling.
• Producing more than you need (Overproduction):** Creating products or components before they are required by the next process or customer demand. This is often considered the worst waste as it exacerbates other forms of waste.
• Over-processing or undertaking non-value-added activity:** Performing unnecessary steps or using overly complex methods to produce a product, or performing activities that do not add value from the customer's perspective.
• Transportation:** Unnecessary movement of materials, parts, or finished goods between processes. While transportation is sometimes necessary, excessive movement adds no value and increases the risk of damage.
• Unnecessary movement or motion:** Any excessive or non-ergonomic movement by workers that does not directly contribute to value creation. This includes searching for tools, excessive walking, or awkward postures.
• Inventory:** Holding excess raw materials, work-in-progress, or finished goods beyond what is immediately needed. This ties up capital, requires storage space, and can hide other problems.
• Defects in the Product:** Producing items that are faulty or require rework, leading to wasted materials, time, and effort.

5.2. The Ten Precepts

Ohno is also known for his "Ten Precepts," a set of guiding principles for thinking and acting to achieve continuous improvement and problem-solving within the workplace. These precepts emphasize practical engagement and a proactive mindset:

• You are a cost. First, reduce waste.
• First say, "I can do it." And try before everything.
• The workplace is a teacher. You can find answers only in the workplace.
• Do anything immediately. Starting something right now is the only way to win.
• Once you start something, persevere with it. Do not give up until you finish it.
• Explain difficult things in an easy-to-understand manner. Repeat things that are easy to understand.
• Waste is hidden. Do not hide it. Make problems visible.
• Valueless motions are equal to shortening one's life.
• Re-improve what was improved for further improvement.
• Wisdom is given equally to everybody. The point is whether one can exercise it.

6.1. Impact on Lean Manufacturing

The Toyota Production System (TPS), pioneered by Ohno, served as the primary inspiration and foundational blueprint for the global adoption of Lean Manufacturing principles. Lean Manufacturing, a term coined in the United States, encapsulates the core tenets of TPS, focusing on maximizing customer value while minimizing waste. Ohno's emphasis on eliminating the seven wastes and implementing Just-In-Time production became the cornerstone of lean methodologies, leading to significant improvements in productivity, quality, and responsiveness across various industries globally.

6.2. Expansion Beyond Manufacturing

The concepts and methodologies developed by Ohno, initially for automobile manufacturing, have expanded far beyond traditional factory floors. TPS principles, particularly those related to waste reduction and efficiency, have been adapted and applied to various sectors, including service industries, healthcare, software development, and administrative processes. For example, the field of sales process engineering has demonstrated how the Just-In-Time concept can significantly improve processes in sales, marketing, and customer service. Ohno himself provided direct guidance to companies outside Japan, notably assisting First Automotive Works in China, further demonstrating the universal applicability of his system.

6.3. Recognition and Honors

Taiichi Ohno received significant awards and recognitions for his pioneering contributions to industrial engineering and management. These honors underscore the profound impact of his work on global manufacturing.

• October 1973:** Awarded the Order of the Blue Ribbon by the Japanese government. This commendation recognized his long-standing efforts in developing and fostering automobile production management systems, which significantly contributed to the advancement of the automobile industry.
• July 1974:** Received the Minister of Labour Commendation Award.
• May 1982:** Conferred the Order of the Sacred Treasure, Third Class, a prestigious Japanese order.
• June 1990:** Posthumously awarded the Junior Fourth Rank, a high honor in the Japanese court hierarchy.
• 2007:** Inducted into the Japan Automotive Hall of Fame, acknowledging his pivotal role in the history of Japanese automotive innovation.
• 2022:** Inducted into the U.S. Automotive Hall of Fame, recognizing his global influence and enduring legacy in the automotive industry.