Operations Management: Processes and Supply Chains, 12th Edition

Continuous Improvement Using A Lean Systems Approach

One of the most popular systems that incorporate the generic elements of lean systems is the just-in-time (JIT) system. According to Taiichi Ohno, one of the earlier pioneers at Toyota Corporation, the just-in-time (JIT) philosophy is simple but powerful—eliminate waste or “muda” by cutting excess capacity or inventory and removing nonvalue-added activities. Even though traditionally only seven types of waste have been discussed in the literature,1 based on current management thinking we have added an eighth type that focuses on underutilization of employees. Table 6.1 shows the eight types of waste that often occur in firms in an interrelated fashion, and which must be significantly reduced ...