ABSTRACT

Peter Drucker called the automotive industry “the

industry of the industries” in 1946. Indeed, a great

number of new production and management phi-

losophies first emerged in the automotive industry

and then they diffused into other industries. Lean

production is one of those philosophies. Lean pro-

duction philosophy was first introduced by Toyota

Motor Company. Briefly, lean production aims

at the ideal of 100% value-added work with zero

or minimum waste (Womack et al. 1990, Koskela

1992, Koskela 1997). The automotive industry is

now using half the manufacturing space, half the

human effort in factory, half the product devel-

opment time, and half the investments in tools

because of the successful implementation of lean

production concepts (Womack et al. 1990). After

Toyota Motor Company’s great triumph, lean

production principles were then rapidly employed

by other automotive companies as well as other

industrial sectors (Gann 1996).