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In the decade since its launch in the fall of 1990, The Machine That Changed the World has sold more than 600,000 copies in 11 languages and has introduced a whole generation of managers and engineers to lean thinking. No lean library is complete without this groundbreaking book.
"The fundamentals of this system are applicable to every industry across the globea[and] will have a profound effect on human society. It will truly change the world." - New York Times
Paperback / 1990 / 323 pages
Based on MIT's five-million-dollar, five-year study on the future of the automobile, three directors of research deliver a groundbreaking analysis of the worldwide move from mass production to lean production. The authors explain lean production and reveal how it works, why it results in more cost-efficient products, and its significant global impact.
The Industry of Industries in Transition
Forty years ago Peter Drucker dubbed it "the industry of industries."1 Today, automobile manufacturing is still the world's largest manufacturing activity, with nearly 50 million new vehicles produced each year.
Most of us own one, many of us own several, and, although we may be unaware of it, these cars and trucks are an important part of our everyday lives.
Yet the auto industry is even more important to us than it appears. Twice in this century it has changed our most fundamental ideas of how we make things. And how we make things dictates not only how we work but what we buy, how we think, and the way we live.
After World War I, Henry Ford and General Motors' Alfred Sloan moved world manufacture from centuries of craft production--led by European firms--into the age of mass production. Largely as a result, the United States soon dominated the global economy.
After World War II, Eiji Toyoda and Taiichi Ohno at the Toyota Motor Company in Japan pioneered the concept of lean production. The rise of Japan to its current economic preeminence quickly followed, as other Japanese companies and industries copied this remarkable system.
Manufacturers around the world are now trying to embrace lean production, but they're finding the going rough. The companies that first mastered this system were all headquartered in one country--Japan. As lean production has spread to North America and Western Europe under their aegis, trade wars and growing resistance to foreign investment have followed.
Today, we hear constantly that the world faces a massiveovercapacity crisis--estimated by some industry executives at more than 8 million units in excess of current world sales of about 50 million units.2 This is, in fact, a misnomer. The world has an acute shortage of competitive lean-production capacity and a vast glut of uncompetitive mass-production capacity. The crisis is caused by the former threatening the latter.
Many Western companies now understand lean production, and at least one is well along the path to introducing it. However, superimposing lean-production methods on existing mass-production systems causes great pain and dislocation. In the absence of a crisis threatening the very survival of the company, only limited progress seems to be possible.
General Motors is the most striking example. This gigantic company is still the world's largest industrial concern and was without doubt the best at mass production, a system it helped to create. Now, in the age of lean production, it finds itself with too many managers, too many workers, and too many plants. Yet GM has not yet faced a life-or-death crisis, as the Ford Motor Company did in the early 1980s, and thus it has not been able to change.3
This book is an effort to ease the necessary transition from mass production to lean. By focusing on the global auto industry, we explain in simple, concrete terms what lean production is, where it came from, how it really works, and how it can spread to all corners of the globe for everyone's mutual benefit.
But why should we care if world manufacturers jettison decades of mass production to embrace lean production? Because the adoption of lean production, as it inevitably spreads beyond the auto industry, will change everything in almost every industry--choices for consumers, the nature of work, the fortune of companies, and, ultimately, the fate of nations.
What is lean production? Perhaps the best way to describe this innovative production system is to contrast it with craft production and mass production, the two other methods humans have devised to make things.
The craft producer uses highly skilled workers and simple but flexible tools to make exactly what the consumer asks for--one item at a time. Custom furniture, works of decorative art, and a few exotic sports cars provide current-day examples. We all love the idea of craft production, but the problem with it is obvious: Goods produced by the craft method--as automobiles once were exclusively--cost too much for most of us to afford. So mass production was developed at the beginning of the twentieth century as an alternative.
The mass-producer uses narrowly skilled professionals to design products made by unskilled or semiskilled workers tending expensive, single-purpose machines. These churn out standardized products in very high volume. Because the machinery costs so much and is so intolerant of disruption, the mass-producer adds many buffers--extra supplies, extra workers, and extra space--to assure smooth production. Because changing over to a new product costs even more, the mass-producer keeps standard designs in production for as long as possible. The result: The consumer gets lower costs but at the expense of variety and by means of work methods that most employees find boring and dispiriting.
The lean producer, by contrast, combines the advantages of craft and mass production, while avoiding the high cost of the former and the rigidity of the latter. Toward this end, lean producers employ teams of multiskilled workers at all levels of the organization and use highly flexible, increasingly automated machines to produce volumes of products in enormous variety.
Lean production (a term coined by IMVP researcher John Krafcik) is "lean" because it uses less of everything compared with mass production-half the human effort in the factory, half the manufacturing space, half the investment in tools, half the engineering hours to develop a new product in half the time. Also, it requires keeping far less than half the needed inventory on site, results in many fewer defects, and produces a greater and ever growing variety of products.
Perhaps the most striking difference between mass production and lean production lies in their ultimate objectives. Mass-producers set a limited goal for themselves--"good enough," which translates into an acceptable number of defects, a maximum acceptable level of inventories, a narrow range of standardized products. To do better, they argue, would cost too much or exceed inherent human capabilities.
Posted February 22, 2003
I have read the book twice and found it to be very informative with regards to academic knowledge, what you would expect from MIT, but not very useful in practical application, regardless of industry segment. There is just too much detail on detail. If you want to know the history of TPS, Lean or whatever you choose to call the process, this is a great book. But being a senior manufacturing type, I'm looking for text on practical application, training and such. I realize the experts don't want to write a book on the simplicity of application because it might take away from their business of doing just that, training in Lean. However, I as many others will continue to search for the books and businesses that are open to providing me with text books that I can learn from and apply the information through my skills and those associated with my business.Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.