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Procedia Manufacturing 11 (2017) 1093 – 1101

27th International Conference on Flexible Automation and Intelligent Manufacturing, FAIM2017,

27-30 June 2017, Modena, Italy

Legend and Future Horizon of Lean Concept and Technology

Hiroshi Katayama*
Faculty of Science and Engineering, Waseda University, 3-4-1 Okubo, Shinjuku-ku, Tokyo 169-8555, Japan

Abstract

The one of the bestselling business publications entitled “The Machine that Changed the World” stressed the distinctive feature
of the way of management of Japanese car industry in terms of the name of lean management. It is well known world-wide that
lean management was born in Japan but not quite well recognized on the origin. Essential concept could be formulated during
Japanese turbulent period in 15th to 16th century, of which key point is fighting with an indomitable spirit, and is inherited to the
concept of making unremitting efforts for business. Conceptual legends are perfect elimination of Muri (Strain), Mura
(Variegate), Muda (Waste) on the Plan, Do, Check and Action Cycles (PDCA). This paper tries to figure out historical trend with
remarkable milestone concepts of lean management and its future horizon. These includes white box vs. black box approaches,
proactive vs. reactive operations and similarity-based model analysis.

©
© 2017
2017TheTheAuthors. Published
Authors. by by
Published Elsevier B.V.B.V.
Elsevier This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the scientific committee of the 27th International Conference on Flexible Automation and
Peer-review under responsibility of the scientific committee of the 27th International Conference on Flexible Automation and
IntelligentManufacturing
Intelligent Manufacturing.

Keywords: Contradiction-driven, Management, Kaizen (Continuous Improvement), TPS (Toyota Production System), TPM (Total Productive
Maintenance and Management)

1. Introduction

Back to 1990, “The Machine that Changed the World” was published, which is one bestselling book on the way
of manufacturing businesses that was named “lean production” in this book [49]. It stressed the distinctive feature of
the way of management of Japanese car industry, however, described feature is not necessarily Japanese car industry

* Corresponding author. Tel.: +81-3-5286-3297; fax: +81-3-5286-3297.

E-mail address: kata@waseda.jp

2351-9789 © 2017 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the scientific committee of the 27th International Conference on Flexible Automation and Intelligent Manufacturing
doi:10.1016/j.promfg.2017.07.227
1094 Hiroshi Katayama / Procedia Manufacturing 11 (2017) 1093 – 1101

but also other manufacturing industries in Japan including almost all fabrication and process industries. Lean
management, of which shop floor version is lean production, is actually a tradition of Japanese way of
organisational management. Original concept could be recognized in Japanese turbulent period in 15th to 16th
century. Typical example is “Akazonae: A type of military unit used in feudal Japan” that means Red Colour-armed
Soldiers originated by Takeda and Sanada warriors. The key point of this concept is fighting with an indomitable
spirit and it is inherited to the concept of making unremitting efforts for business called “contradiction-driven
approach” which must be the kernel concept of lean management. From early Meiji era (1868~), Japanese newly
established civilian government conducted to creating industrialized society and encouraging to catch up related
technology from mainly western countries. In early Showa era (1926~), industrialization has been took off gradually
including establishment of Toyota Motor Co. and many relevant methods contributing productivity have been
developed and transferred among industries.
Conceptual legends are perfect elimination of “Muri” (Strain), “Mura” (Variegate) and “Muda” (Waste) on the
platform of Plan, Do, Check and Action Cycles (PDCA). Nowadays, all of these words are well known among
industrial professionals and concerned academicians over the world. Based on the above issues, this paper tries to
figure out historical trend with remarkable milestone concepts of lean management and its future horizon with
related technologies. These includes white box vs. black box approaches, proactive vs. reactive operations and
similarity-based model analysis.

2. Legend of lean concept and technology

2.1. Concept

In this section, concept of lean operations management is discussed [8][9].

(1) Background
In general, manufacturing systems offer conversion process from resource as input to results as output, where the
essence of lean is to realise fewer resources with higher level of results than ordinary manufacturing processes
[6][7].

▪ Human: Meta Resource ▪ Skilled Human

▪ Machine: Manufacturing ▪ Advanced Machine
Resources Activity Outcomes
Performance Improvement by Loss Elimination
▪ Material: ▪ Advanced Material
▪ Method (Technology): ▪ Improved Method (Tech.)
Assets
A
▪ Money: ▪ Reward of Investment Accu
Accumulation
for Human
Hu Life
▪ ……….. ▪ Pollution
throu B2C
through
Businesses
Feedback through B2B Businesses

Environmental Platform

Fig. 1. Relationship among resources and outcomes in manufacturing [28]

That is, it tries to attain ultimate efficiency with business effectiveness, which can bring firms to a world-class
organisation. This particular constitution suggests that business organisations, not only manufacturing systems, must
be trained rigorously for better outcomes with fewer inputs like world-class athletes. Figure 1 illustrates the
particular viewpoint on the relation between resources and results of lean management, where resources consist of
 Hiroshi Katayama / Procedia Manufacturing 11 (2017) 1093 – 1101 1095

human, machine, material, method money etc. that must be converted to skilled human, advanced machine,
advanced material, improved method and reward respectively [28]. Essence of this concept is that the objective of
the business firm is not only the efficient and/or profitable conversion of materials to products but also others.
Here, human resources (HR) is the most important resource among corporate resources as it enables to control
other resources as the meta-resource. It is not only the driving force for formulating best product quality, but also it
can evolve its ability through daily operations, which provides synergic effects among all of the conversion process.
For example, “machine” can be converted to “advanced machine” by corrective maintenance activity by
professional-minded human resources during lasting machine usage. In a lean organisation, this sort of positive
spiral must be constitutionalised [20][27]. From the next paragraph, historical/distinctive issues in lean context are
summarised.

(2) Three major issues for performance improvement

Three important issues traditionally focused are called 1“Muri”, 2“Mura” and 3“Muda”, which are considered
as major causes creating losses. In the early stage of Japanese industrialisation, these are used to be treated
independently. However, relating to the next conceptual stance, “Contradiction-driven Approach”, these must be
tackled by this order for zerotising losses. The reason of “Muri” first is because it is the starting point and the driver
of improvement, “Mura”, in other word fluctuation, second is because it tends to hide where and how big losses
exists [48] and finally, “Muda” in other word loss, can be targeted as it is already visualised by the precedent
procedures.

(3) Contradiction-driven Approach

One essential concept to lead organisation toward lean is “Contradiction-driven Approach”. This means that,
firstly, the leader delivers mission impossible and/or difficult to the followers, then, they are asked to think and act
on the platform of PDCA cycles to close the object as much as possible. This sense of value on tackling problems
links with the concept called “Akazonae” introduced in Section 1. Two examples of this way is described as follows,
which contribute to realise strong organisational constitution.
• Example in TPS (Toyota Production System), one representative lean scheme formulated in car industry
# 1: KANBAN System for visualising bottleneck operations invented by Mr. Taiichi Ohno
“KANBAN System” has an important parameter, the number of KANBAN, of which major role is visualisation of
weak operative functions in supply chain. Operation sequence for this purpose consists of 1 setting enough
number of KANBAN in supply chain loop, 2 suppressing the number of KANBAN one by one, 3 observing the
capability to respond immediately to the query by empty KANBAN, which is the compulsory principle of this
system, 4 launching improvement projects to eliminate bottleneck operations if these are revealed by this way and
5 iterating whole process until all the bottleneck is eliminated. As summary, contradiction-driven approach in this
case is the process of contradiction setting as a mean of making failure (smaller the number of Kanban, then
tighter on time supply) and then countermeasure implementation for overcoming the weakness.
More tradition-based interpretation of this procedure is that creating “Muri” firstly, then launching eliminating
“Mura” secondly followed by “Muda” elimination for zerotising losses.
# 2: Leader’s mission delivered for R&D division
As a famous story in the R&D division of Toyota Motor Co., the former CEO, Mr. Katsuaki Watanabe, talked to
the members “Let’s develop a car which enables to purify air during it run”, which is considered as “Muri” setting
process. Then efforts on “Mura” and “Muda” eliminations have been followed toward environment friendly
technologies, which are now hopeful assets of this company.
• Example in TPM (Total Productive Maintenance & Management), another representative lean scheme formulated
by JIPM (Japan Institute of Plant Maintenance), which focus not only car industry but also others
# 1: Zero break down by PM (Phenomena-Mechanisms) Analysis developed by Mr. Kunio Shirose, one of the
three founders of TPM scheme
This method is applied by the incentive of realising everlasting zero break down, which is apparently “Muri”
setting (contradiction-driven) as it seems to be impossible. Actually, the author has no chance to observe
breakdown-less factory so far. Then, for “Mura” and “Muda” eliminations, causal relation analysis between loss-
1096 Hiroshi Katayama / Procedia Manufacturing 11 (2017) 1093 – 1101

creating phenomena and related causal mechanisms is launched by using well-defined template which utilises
various scientific assets such as physics, chemistry, mechatronics, statistics etc.
# 2: Zero fluctuation by 4M Analysis and standardisation
This method is, again, applied by the incentive of realising everlasting stable operations, which is apparently
“Muri” setting (contradiction-driven) as it is quite difficult. Here, 4M obviously means Man, Machine, Material
and Method, all of which are the major contributors of operational performance as described in Figure 2. The idea
of this method is on the awareness of that unstable outcomes closely link with fluctuation of resource conditions
and system variables. Therefore, this method is that of investigating resource conditions and maintaining the ideal
parameter values to guarantee stable and quality output, namely “Mura” reduction followed by “Muda”
elimination. DOE (Design of Experiment) is often implemented for this investigation process.

(4) Packaged approach

There are various packaged schemes for performance improvement, all of which can be called lean scheme.
General Scheme
• Total Quality Management (TQM)
• Total Productive Maintenance and Management (TPM) [1][13][41][43][44][45]
• Total Productivity Management (TP-Management)
• Hoshin Kanri (Policy Deployment Process)
• Others

Specific Industry Focused Scheme (developed by company in-house)

• Toyota Production System (TPS) [47]
• Others
Here, outline features of TPM is briefly described as an example. It consists of the following five distinctive
issues.
1) Pillar Teams as organisational driver which consists of 8-9 major pillar teams, i.e. focused, autonomous,
planned, quality, early management, office, training, safety & environment + additional pillars.
2) Loss Analysis as the constitutional logic for effective performance management
3) Improvement Tools as technological actuators (or weapons)
4) Stepwise Approach as procedure enable to guarantee results
5) Six Levels of Programme as entry points for beginner to expert companies
For example, Loss Analysis focuses issues for improvement, i.e. loss elimination, which is durable sense of value
as no one asserts against it. Its procedure consists of definition of losses, formulation of losses by, for instance,
mathematical expressions, these measurement, countermeasure design for improvement, estimation of results and
gap analysis between before and after.

2.2. Technology

In this section, brief category list of some traditional major technologies/methods often used in TPS and TPM is
introduced.
1) Operation Smoothing Techniques, e.g. dispatching method for stable parts consumption and/or man-hour
consumption that is called Target Chasing Method (TCM) [17][33].
2) Just In Time Techniques, e.g. a representative demand-pull logistics called KANBAN System.
3) Lead-time Reduction Methods, e.g. Shingo`s Single Minute Exchange of Die (SMED), One Piece Flow etc.
that were developed by the common way of approach called concurrent and small lot operation design.
4) Effective Facility Layouts, e.g. Function-wise vs Multi-functional Layout etc. that were developed by the
common way of design called capability reinforcement.
5) Standardisation of Operation, e.g. Working Pace Visualisation for Maintenance etc. that were developed by the
common understanding on the effectiveness of visualisation.
 Hiroshi Katayama / Procedia Manufacturing 11 (2017) 1093 – 1101 1097

6) Autonomous Mechanisms, e.g. Various Automatized Facilities that were developed based on the concept of
POKA-YOKE (fool-proof) and KARAKURI (sophisticated mechanical contrivances utilising natural energy)
Contrivances

3. Future horizon of lean management

3.1. Concept

Three big issues of conceptual evolution on lean management are described for discussion.
(1) Structure improvement of current lean scheme
• Current various schemes introduced in Section 2 can be merged with internationalised/other country-based
schemes such as ISO, HACCP, Six Sigma etc. to create multi-wheel vehicle which transport us to the
destination of ideal meta-version of improvement scheme.
• Pillar Teams in TPM feature, especially additional pillars must be added to cover entire corporate
management problems. Currently, SCM and Sales pillars are under implementation by JIPM head-quarters and
award holding advanced companies.
(2) ICT-based self-evolution of lean scheme
The idea of this proposal is to elevate effectiveness of lean scheme by reinforcing the operative structure which
consists of two parts described below.
• Classification of Performance Data
Corporate performance must be evaluated through following four types of criteria. Currently only KPI
indicators are under argument in many cases.
(a) KSC: Key Social Contributors, which is the final objective of going concern organisations.
(b) KMI: Key Management Indicators, which is general outcome factors measured by money dimension
regarded as output.
(c) KPI: Key Performance Indicators, which is general outcome factors measured by physical dimension
regarded as output.
(d) KAI: Key Activity Indicators, which is general resource factors regarded as input.
• Case-base construction of modular improvement projects
(a) VM case-base
(b) POKA-YOKE case-base
(c) KARAKURI case-base
(d) Hybrid case-base of (a)-(c)

Figure 2 represents the structure of activated PDCA scheme with improvement case-base and performance data-
base, which utilises the above issues [31][35].
1098 Hiroshi Katayama / Procedia Manufacturing 11 (2017) 1093 – 1101

Causal linkage between activities and performance

Knowledge transfer for next planning phase





Performance

 




evaluation support


 

Plan Action
  
KAI/KPI/KMI
Data-base
Causal
Analysis

Improvement KAI/KPI/KMI
Case-base Do Check Data transfer for evaluation of
Improvement activity and problem identification
Support
KAI: Key Activity Indicators
KPI: Key Performance Indicators
Accumulation of new
KMI:Key Management Indicators
cases/methodology

Fig. 2. Structure of activated PDCA scheme with improvement case-base and performance data-base [31]

(3) Lean Activity Transfer [10][11][15][18]

For these decades, substantial efforts on transferring lean management have been made by industrial
professionals over the world [28]. First category of this effort is spatial transfer including that from domestic
factories to offshore factories, among offshore factories within the same countries and among countries
[14][16][22]. Second category is functional transfer including that from manufacturing sites to other business
functions such as R&D, system design and operations preparatory divisions, sales, supply, delivery and furthermore,
inter-transfer among these functions [19][23][24]. Third category is inter-industry transfer including from
manufacturing industry to other industries such as medical industries, transportation industries, public services and
furthermore, inter-transfer among these industries [2][21][32][38][40].
There are various contents having to transfer which includes way of thinking and/or sense of value,
organisational driving force, technological issues, way of human resource development etc., and in this paper, the
first and second issues are briefly discussed followed by the third issue as the main portion. Regarding to the first
issue, the way of thinking and/or sense of value, “contradiction-driven thinking” with “Muri”, “Mura” and “Muda”
as discussed in Section 2 must be the distinctive item to transfer. It is the compulsory issue to share among people in
an organisation. Therefore its transferability must be reinforced through human resource development activities.
Transfer vehicles are also necessary for effective and reliable transfer. On the second issue, the argument is provided
in the next section. As lean schemes especially TPM was constructed in terms of general format, it provides wide
range of applicability such as from car industry to food industry and multi-national companies to local SMEs.
Therefore, its transferability is also quite high.

3.2. Technology

The author’s view on the further issues of lean technologies to be developed and applied are listed here.
1) Reinforcement of performance evaluation and improvement system
2) Reinforcement of modular improvement technologies such as VM [34][36][37][39], POKAYOKE and
KARAKURI [3][4][5][25][26][29][30][42][46]
3) Development of synergetic loss reduction procedure such as methodology to detect root causes which
contribute many types of loss occurrence (e.g. FTA+FMEA combined analysis)
4) Development of decomposition logic of overall target by AHP etc. [12]
5) ROI performance improvement of KAIZEN project
 Hiroshi Katayama / Procedia Manufacturing 11 (2017) 1093 – 1101 1099

Related technology will be the way of improvement of ratio of cost reduction (low cost automation etc.) and
estimated Kaizen outcomes (simulative approach).
6) KAIZEN method of human-hour reduction with human-resource shift
The latter means exploration and settlement of more value-added jobs.
7) Case base development of green lean activities and their horizontal deployment
8) Other related technologies such as balancing so-called white box and black box approaches which mean open-
based and closed-based intellectual property managements, combination of proactive and reactive operations
which are planning phase-focused and recovery phase-focused styles respectively, similarity-based model
building/analysis that is transferability-attended way of thinking by referring to other useful cases and green
technology combined lean tools, which is for responding world-wide movement on green operations being
encouraged through COPs, COP1 in Berlin in 1995 followed by, for example, COP3 as Kyoto Protocol in
1997, up to recent COP conferences.

4. Concluding Remarks

This paper attempted to figure out historical trend with remarkable milestone concepts of lean management and
its future horizon with related technologies. Especially, as a future horizon of lean management, evolution of its
concept, reinforcement of its technology and transfer of best practices of lean management to immature sites,
functions and industries are discussed, where the last issue is one of the most important perspectives for elevating
the capability of industrial assets invented by humankind.

Acknowledgements

This work is partially supported by JIPM, the head-quarter of TPM Scheme, and many lean companies which
support this research by arranging the author’s visit with investigation of their lean activities.

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