1. Lean and Scientific Management: Sequel or Substitute?
David S. Hoyte
Nova Southeastern University
Regina A. Greenwood
Southern Management Association
October 30, 2015

2. The Authors Regina A. Greenwood David S. Hoyte
Chair, Management Department, Huizenga College of Business and Entrepreneurship, Nova Southeastern University
Workshop Instructor on Generational Differences, Honda Supplier Network
Ford Lean Advisory Group
Historian, Academy of Management
Historian, Management History Division
Executive in Residence, Decision Sciences Faculty, Huizenga College of Business and Entrepreneurship, Nova Southeastern University
President, Transformation Management LLC
Distinguished Fellow, The Center for Operational Excellence, OSU
Senior Advisor to Honda Supplier Network; Ford Lean Advisor.
Certified Lean Leader and Instructor, OSU
Southern Management Association
October 30, 2015

3. Research Question
Lean Management, based on the Toyota Production System, is transforming today’s business operations with a management philosophy and practices based on continuous pursuit of perfection.
Scientific Management, based on the work of Taylor and the Gilbreths, transformed the industrial world in the early 20th century and is the basis for many traditional management practices today.
While areas of overlap are apparent, is Lean Management built on the foundation of Scientific Management, or is it a unique, revolutionary approach to achieving operational excellence?
Southern Management Association
October 30, 2015

4. What is Lean?
Lean is a Management philosophy for organizing and managing work, using a system of techniques and principles that identify and eliminate waste.
Lean is a way of thinking and operating on a daily basis to engage employees in process optimization, error prevention, and a never ending search for better methods that improve safety, quality, productivity, and cost.
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5. Definitions
VA – value added is activity that converts raw material into characteristics for which the customer is willing to pay
Waste – any activity that consumes time or cost without adding value (also called NVA) – or any activity that the customer will not pay for.
Muri – Overburden
Mura - Fluctuation
Muda - Any of the 7 wastes
Muri (too much)
Muda (waiting)
Mura (work load variation)

6. Muri - Overburden Scientific Management Lean Management
The Gilbreths recognized that a steady pace with breaks was overall more productive than a high pace.
Toyota (NUMMI shown) ensures employees are not over-burdened, using balance boards, done by the team, to tally elemental times in seconds against a target cycle time objective.
Southern Management Association
October 30, 2015

7. Mura - Unevenness Scientific Management Lean Management
The Gilbreths, like management at that time, accepted fluctuation as a routine part of business that simply needed to be accommodated.
Toyota (NUMMI shown) ensures minimal fluctuation by leveling all process rates to ensure that flow is smooth and even, then controlling through visual management.
Southern Management Association
October 30, 2015

8. Muda: Examples of Wastes Observed in Work
Motion (bend)
Motion (walk)
Transportation
Over-production
Waiting
Defectives
Extra processing

9. Typical Related Wastes March 2004 Overproduction, Transportation, Inventory, & Defectives

10. Area of Commonality: Motion
Elemental work, motion, and pace are scrutinized to the smallest detail for opportunity
Southern Management Association
October 30, 2015

11. Similarities within Motion Analysis
Scientific Management
Lean Management
Ergonomics was a significant concern, resulting in special scaffolds for bricklayers
Workplace layout, ergonomics, materials within easy reach all are part of designing a Lean work cell.
Southern Management Association
October 30, 2015

12. Difference: Quality Control
Scientific Management
Lean Management
Inspection-based quality; sort the bad from the good
Prevention-based quality systems or “Poka Yoke” to error proof critical operations.

13. Difference: Improvement
Scientific Management
Lean Management
Management does the improvement
The natural work group (team) is responsible for all improvement
Southern Management Association
October 30, 2015

14. Difference: Production Control
Scientific Management
Lean Management
Stay busy, make more, absorb overhead costs
Production is controlled by a replenishment signal, automatically as stock is consumed

15. Difference: Inventory Control
Scientific Management
Lean Management
Excess stock is good “insurance”
“Limbo Bars” prevent storing excess stock; Min/max is posted, excess is visible
Southern Management Association
October 30, 2015

16. Difference: Transportation
Scientific Management
Lean Management
Conventional transport: One trip one load, low value added
“AGV Train” on standard route “milk run”: One trip, many loads, high effectiveness

17. Comparison Summary Table
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October 30, 2015

18. The Scientific Management stream of thought did not evolve into Lean.
Conclusion
Considerable differences in what is waste and how to eliminate waste
Limited agreement on waste (overburden, transporting, the process itself, unnecessary motion)
Scientific Management and Lean Management have a different philosophy and principles:
Toyota’s early management practice was “production efficiency by consistently and thoroughly eliminating waste,” and “the equally important respect for humanity” (Ohno, 1988)
The Scientific Management stream of thought did not evolve into Lean.
Lean is a Substitute.
Southern Management Association
October 30, 2015

19. Limitations and Further Research
Examined only the writings of Frank and Lillian Gilbreth as examples of Scientific Management Thought
Examined only the trail of Scientific Management in Japan, not the development of Lean at Toyota*
Next steps – examine more Scientific Management writers to determine if any anticipated the insights of Lean
* For a brief history, see Emiliani, R. (2006). Origins of lean management in America: The role of Connecticut businesses, Journal of Management History, 12 (2), 2006,
Southern Management Association
October 30, 2015

20. Questions?
Southern Management Association
October 8, 2015