Engineer Taiichi Ohno at Toyota, is credited with developing the principles of lean production also known as JIT (Just In Time production) after World War II. His philosophy, which focused on eliminating waste and empowering workers, reduced inventory and improved productivity. Instead of maintaining resources in anticipation of what might be required for future manufacturing, as Henry Ford did with his production line, the management team at Toyota built partnerships with suppliers. In effect, under the direction of Engineer Ohno, Toyota automobiles became made-to-order. By maximizing the use of multi-skilled employees, the company was able to flatten their management structure and focus resources in a flexible manner. Because the company was able make changes quickly, they were often able to respond faster to market demands than their competitors could.

Many industries, including software development such as JGID business management software, have adopted the principles of lean production. The ten rules of lean production can be summarized:

  1. Eliminate waste
    2. Minimize inventory
    3. Maximize flow
    4. Pull production from customer demand
    5. Meet customer requirements
    6. Do it right the first time
    7. Empower workers
    8. Design for rapid changeover
    9. Partner with suppliers
    10. Create a culture of continuous improvement