Although there are many reports of the successes and benefits of lean applications, Cusumano (1994) and Mehri (2006) identify some alleged limitations. Many Japanese and non-Japanese companies attempted to follow the example of Toyota by implementing lean concepts or selected lean practices. Problems and the negative consequences of lean implementation experienced by Nissan and an American engineer in Japan could have a bearing on attempted applications in South Africa´s automotive industry.
Cusumano (1994) reports that Nissan encountered problems in the 1970s, while implementing JIT and Kanban. These problems and limitations are synthesised in Figure 4.5 below. These drawbacks probably explain why some companies are not willing to follow lean principles to their fullest extent. Cusumano’s findings, as summarised in Figure 4.5, could be of assistance in addressing certain problems evident in the South African automotive industry.
89 Figure 4. 5: Lean limitation in Japan in the 1990s
Source: Researcher´s own construction based on Cusumano (1994:29) Figure 4.5 presents problems related to production (in red) and PD (in purple) and solutions (in green). Some of the relevant problems described in Cusumano (1994) will be discussed here. The first which concerns traffic congestions and high environment
pollution is related to ‘Just-in-time’ delivery to assembly lines and needs to be well-
thought out for possible application to the SA automotive industry. Kanban and delivery of small batches of components from suppliers to production lines several times a day are no longer practical owing to physical distances: no new methods such as bar-code readers or electronic tags are available.
Another huge problem that Japanese companies experienced in the early 1990s in Japan was the labour shortage and high employee turnover. This impacted on blue- collar as well as white-collar jobs: a similar problem is also evident in South Africa. To counter this problem Japanese companies have been hiring less-skilled foreigners and have had recourse to seasonal hiring of temporary workers: however this is not in accordance with the basic principles of the lean system which relies on well-trained and experienced people. As a result, many companies suffer quality problems, increases in inspections and rework, and reduced worker flexibility.
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Product variety also became a problem, as it has in South Africa and in other emerging
markets, as the companies offer too many product options to customers. The assembly plants and component factories need to adjust frequently to very small orders, requiring constant equipment and tools setups. Additionally, consumers replace their vehicles every four to five years, which results in a regular introduction of new models: this can lead to environmental concerns and a need for recycling of products.
Japanese managers are strongly concerned about investments into new model
development and model replacements that need to be drastically reduced. The
companies in the automotive sector are reducing numbers of unique parts and product varieties by 30 to 50 percent or more for new models, according to Cusumano (1994:31). Furthermore, they limit budgets, and focus on sharing of key components across models and also on sharing of manufacturing facilities. Finally, Cusumano recommends identifying competitive advantage in new areas, such as innovative product features, new materials and technologies, new levels of manufacturing automation and expansion into the markets of developing countries.
An enlightening article Mehri (2006), reveals the unique perspective of an American engineer working in Japan from 1996 to 1999. The author worked in an automotive company, together with Japanese engineers, on product design teams. He experienced, observed and recorded the impact of the recession in 1997 and the resultant effects of the downturn on factory workers. This firsthand experience reveals the hazards of lean production in the Japanese factory, which contrasts with the ‘corporate welfare’ and ‘family-like’ environment described by many authors.
Mehri (2006:24) sees the TPS as an ‘unhealthy and dangerous’ system that is exploiting workers and does not care about their lives. The author argues that The Machine That
Changed the World (2007) is inaccurate as it portrayed an idyllic life and success in
Japanese companies without any regard to the human costs of lean work implementation. Similarly, Mehri (2006:25) asserts that this book has been criticized by academics and scholars as a ‘gross misrepresentation of the Japanese work system and as a threat to trade unions everywhere’.
Mehri´s criticism is focused on the lean principles of the TPS in terms of factory space, production line speed, lean culture, and PE. Less space results in machines being jammed into factory space, creating a safety hazard. Furthermore, the line speeds are so fast that ‘workers do not even have a second to wipe the sweat of their faces’ (Mehri
91 2006:25). Lean culture is seen as a ‘culture of rules’ that coerces employees to share attitudes, values, and goals. Moreover, employees are expected to follow the rules, while by setting these rules the company seeks to control employees’ behaviour.
Lean in the engineering context means that the engineers are pressed, intimidated and overloaded with tasks to get their job done, Mehri (2006:28) argues. Although the engineers are highly specialized, they are not motivated to leave their company and they are thus stuck in one career path. Indeed, the high specialization becomes an obstacle to applications for a job at another company. Moreover, innovations seldom come from the internal engineering departments and innovative technologies are purchased from outside companies. Mehri (2006:27) further criticizes Japanese companies, arguing that the cultural and organizational structure dampens creativity in the design process. Nonetheless, Toyota is still considered to be one of the most innovative automobile manufacturers in the world.