Five Great Wastes

Following a conversation with my friend Jim Selman, I decided to dust off my story about the kinds of things that I think are going to be the most important “wastes” of the time that is coming. Taiichi Ohno of Toyota fame was my original inspiration for this line of thinking.

Historic inventions are often built from historic difficulties, and they are always accompanied by new distinctions. At the end of the Second World War, the people of Japan were in terrible trouble, their morale, productive capacity, and international relations demolished. An engineer named Taiichi Ohno, in the enterprise today known as Toyota, began the task of building a new capacity for Japanese production, on top of Henry Ford’s designs, with some important additions. Ford incorporated everything into one plant; Ohno designed for operation in a network. Ford went all out for volume, and minimized variety, in the interpretation that this was the most efficient way to support the US market, and make the money that he needed to support enormous investments and pay his workers enough to buy his cars (roughly doubling the historic pay for that kind of employment). Ohno built a production system that would optimize scarce capital and raw materials, allowing efficient operation with small production runs. The operational heart of Ford’s designs were the way the engineers designed the coordination of the work; Ohno’s design was centered in processes that built the capacity of each person on the production floor to take responsibility for the quality and coordination of their work. Ohno’s inventions became the foundation of the quality movement that swept the world starting in the 1970s and 80s. Continue reading