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The Seven Deadly Wastes of Logistics: Applying Toyota Production System Principles to Create Logistics Value

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The Seven Deadly Wastes of Logistics: Applying Toyota Production System Principles to Create Logistics Value

Joel Sutherland Managing Director Center for Value Chain Research Lehigh University, 621 Taylor Street, Bethlehem, PA 18015 E-mail: jos206@lehigh.edu

Bob Bennett President Lean Consulting Associates, LLC, and Group Vice President (retired) Toyota Motor Sales USA, Inc. 16 Deerhill Drive Rolling Hills Estates, CA 90274 E-mail: bobben1@cox.net

CVCR White Paper #0701

Abstract A business value chain is an end-to-end set of activities that can be applied to a product or service making it ready for the next activity. Most resources used in an activity add value—some do not. The resources consumed (such as people, time or equipment) that do not add value add cost and should be eliminated. This is the essence of the Toyota Production System, or Lean (the term used in the U.S. for what was originally known as the "Toyota Production System"). This article reviews the evolution of Lean principles from the beginning of Henry Ford’s revolutionary assembly line process for his Model T automobile in the early 1900’s, through Taiichi Ohno’s creation of the famous Toyota Production System in the mid-20th century, to adoption of these principles in addressing today’s logistics and transportation challenges. This paper presents real examples from executives who worked within the Toyota Production System and were effective in expanding these principles beyond the traditional manufacturing/ assembly environment.
Lehigh University Center for Value Chain Research www.lehigh.edu/~inchain

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Introduction Henry Ford said that “Quality means doing it right when no one is looking.” If Henry Ford knew the value of doing it right the first time, then why does this basic practice seem to be missing from so many companies today? The answer is…because

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