Skinny Companies
aka Lean Startup
Ford Model T
and Mass Production
In Numbers
Reducing production time from 12.5 hours before to 93 minutes
More than 15 million Model Ts were manufactured in all, reaching a rate of 9,000 to 10,000 cars a day
By the time the 10 millionth car was produced, half of all cars in the world were Fords
At a price of just $260
- Standardization of products, components, equipment, process, tasks and tasks of control
- Incentive schemes based on results
- Extensive reliance on rules and procedures
Any customer can have a car painted any color that he wants so long as it is black.
Henry Ford
Toyota Production System
The lean manufacturing system considers as waste the expenditure of resources for any goal other than the creation of value for the end customer
The main objectives are to design out overburden (muri) and inconsistency (mura), and to eliminate waste (muda).
- Waste of overproduction (largest waste)
- Waste of time on hand (waiting)
- Waste of transportation
- Waste of processing itself
- Waste of stock at hand
- Waste of movement
- Waste of making defective products
- Waste of underutilized workers
Principles
Long-term philosophy
The right process will produce the right results
* Bring problems to the surface.
* Get quality right from the start. (Jidoka)
Add value to the organization by developing your people and partners
* Grow leaders who live the philosophy.
* Extend to partners and suppliers.
Continuously solving root problems drives organizational learning
* Go and see for yourself (Genchi Genbutsu, 現地現物);
* Make decisions considering all options (Nemawashi, 根回し); implement decisions rapidly;
* Relentless reflection (Hansei, 反省)
* Continuous improvement that never stop(Kaizen, 改善).
If you think ... the best you know today, but which is to be improved tomorrow – you get somewhere. But if you think of standards as confining, then progress stops.
Henry Ford
The Lean Startup
"Lean Startup" is a system for developing a business or product in the most efficient way possible to reduce the risk of failure.
Treat all product and business ideas as assumptions (or hypotheses) that must be validated by rapid experimentation in the marketplace.
Rely on scientific experimentation, iterative product releases, and customers feedback to generate validated learning.
Product/Market Fit
The only thing that matters is getting to product/market fit.
Marc Andreesen
We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.
Jeff Bezos
Build
Measure
Learn
Build an MVP
Measure KPIs
Learn & Pivot
A relentless barrage of ‘why’s’ is the best way to prepare your mind to pierce the clouded veil of thinking caused by the status quo. Use it often.
Shigeo Shingo
Thank you.
- https://www.ukessays.com/essays/management/ford-motors-philosophy-vs-toyota-motors-philosophy-management-essay.php
- https://art19.com/shows/business-wars/episodes/a09b348b-d595-4b33-9c01-e6087fe5ef80
- The Startup Way, Eric Ries (Book)
- Lean Startup, Eric Ries (Book)
Skinny Companies
By Boaz Berman
