(1) Focused factory [plant size]: Small, specialized plants that make parts for a single major manufacturer. Keiretsu (large holding companies): maintain close linkage but independent operations.

(2) Group technology [facility layout]: Process all parts with similar operations in the same manufacturing cell that eliminate waiting and moving times.

(3) Quality at the source [quality control]: "Quality is built-in, not inspected-in."

• Workers are responsible for their own works.
• An operator can stop an assembly line if something goes wrong (Jidoka).
• Automated inspection devices are installed wherever appropriate.

(4) Just-in-time production [inventory management]: Maintain minimum inventory level and small lot sizes and make no allowance for contingency. Inventory is the "root of all evils."

(5) Uniform plant loading [level production schedule]:

• Set up a firm production plan with the output rate is frozen for the nearest future.
• Produce the same mix everyday even if the quantities of some items are small.

(6) Kanban system [production control tool]:

• A manual, pull system (vs. computerized, push MRP system).
• The initial pull is exerted by the final assembly schedule (FAS).
• The concept can be extended to vendor: JIT purchasing.

(7) Minimized setup times [work method improvement]:

• Separate setup into internal and external setup procedures.
• Apply the time and motion studies and practice.