2nd Journal Entry

Chapter 3:

Toyota Production System (TPS)

1. What does the customer want from this process?

  • Include internal customers at the next step of the production line and the final external customer
  • The answer = value

Liker (2004) states that anything else is “non-value added” (pg. 27).

Liker lists eight major types of non-value-added waste in business or manufacturing processes. Liker credits Toyota for the first 7 and the last #8 as his own. They are:

  1. Overproduction
  2. Waiting (time on hand)
  3. Unnecessary transport or conveyance
  4. Overprocessing or incorrect processing
  5. Excess Inventory
  6. Unnecessary movement
  7. Defects
  8. Unused employee creativity

(Liker, 2004, pg 28-29)

Many of the items on the list are no brainers. Number two for example is obvious, time = money. If you have staff or employees waiting there is no productivity. Since I am not in manufacturing, here is an off the cuff thought for the business world- managers start your meetings on time!

Number six is called out for “wasted motion employees have to perform during the course of their work” Liker even tells us that walking is a waste of time. While walking and movement may be a waste of time, sometimes when you have a desk job it is important for your health to get up and move a little bit. I can see in a manufacturing job where number six is important, but in a business setting and in today’s world where we are sledging extra weight and barely active enough o keep our blood flowing I wouldn’t implement number six in the work place.

Liker continues on to describe a “spaghetti diagram” where you go through the process of walking through and mapping your value stream.  (pg. 29-30). I am trying really hard to relate this to business and not have it be so “manufactury”. I suppose it could work to map all the entry points a customer comes into the organization and follow the life cycle of a sale, and then the account management . . .

Liker reiterates that Lean Improvement is different from traditional process improvement, because you are taking out the non-value-added steps, not just improving certain steps (pg. 31).

As Toyota grew the standards that Toyota used in TPS needed to be communicated.  Here is a link to another blog that shows the “House” that Toyota Built: http://business901.com/blog1/the-toyota-lean-house-re-built-for-marketing/ this is actually an interesting interpretation of how to use TPS in a more business role.


More coming soon. . .


Liker, J. K. (2004). The Toyota Way: 14 management principles from the world’s greatest manufacturer. New York: McGraw-Hill.

2 thoughts on “2nd Journal Entry

  1. Thanks for the comments about how to apply the Toyota/Lean wastes to administrative work. It is not always easy. I agree with you that the “waste of transportation” doesn’t really apply literally to desk jobs. It is good to get up and “walk around.” However, excessive loops in a business process and lots of rerouting of documents for approvals and reviews that are excessive might be good examples of “transportation” waste in our offices. There are also some sources that have redefined these wastes for the office environment (see Lean.org if you are interested).

  2. Pingback: Lindsey Rae's MBA

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