Page 48 - How To Implement Lean Manufacturing

Lean Manufacturing and the Toyota Pr oduction System 29

• Theory of Constraints (TOC)
• Deming’s Management Technique
• Total Quality Management (TQM)
• Crosby Approach to Zero Defects
• Six Sigma
I will touch on each briefly since there are many books and articles available to
those who wish to research this further.

The Theory of Constraints
The Theory of Constraints (TOC) is a concept developed by Eliyahu Goldratt while he
was trying to create a planning program to make chicken coops for a friend. The TOC
addresses three major concepts. First, it covers process bottlenecks, the logic of problem
solving, and contains a touch of business theory that nicely simplifies the topic of money
in a manufacturing business. His system is strong on inventory reductions, reduced
lead time, and reduced batch sizes, all needed to accelerate cash flow—much as Ohno
discusses. There the similarities end, however. His theory is very weak on quality and
many other aspects of waste. I have found that learning and applying the TOC is often
a solid place to start for many businesses before they embark on a journey into Lean
Manufacturing. On the other hand, if you have a pure make-to-order system, with
multiple routings and highly variant machine cycle times, many tools in the Lean tool
kit, become less effective. Some of the tools and techniques of the TOC become more
effective. Since almost no business is a pure make-to-stock system, it is a good idea to
have an understanding of the TOC as you embark on your Lean journey.

Deming’s Management Technique
Deming’s Management Technique, along with his 14 Obligations of Management and
7 Deadly Sins, is pure gold. The wisdom contained therein is simply wonderful, but the
problem is that few have found a way to turn it into a solid management or business
practice. His writings contain a number of solid thoughts and principles, but it is not
clear that they are woven into an overall philosophy—at least not one that many can
apply. I have found plenty of companies who have embraced many of his teachings, but
only a few who have been able to turn it into a clear business or manufacturing system.
Some have tried to do so under the name of TQM. Most writings about TQM picture it
as a comprehensive philosophy that supports the principle of continuous improvement
in a business. In the design of the TPS, and in Lean, it is easy to see the extensive and
profound influence of Deming, his teachings, and his 14 Obligations of Management.

Crosby’s Approach to Zero Defects
Crosby’s approach to zero defects is an idea that had a great deal of traction in the
1980s, and many companies made improvements based on the concept of quality cost
reductions. At that time, companies could survive with quality levels that were measured
by percents of defects, and rework was a way of life. Today, quality levels have improved
dramatically and are measured in the parts per millions (PPM). Almost no one who is
serious about quality embraces this philosophy today. First, it is based on a fallacy: that