Automobile Industry : The World 's Largest Manufacturing Activity

Lean manufacturing is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment tools and less engineering time to develop a new product. A company becomes lean by continuously increasing its capacity to produce high-quality goods while simultaneously decreasing

Production practices have had an important role in satisfying the dynamic market. Many approaches have being developed in order to respond effectively to specific business requirements. In fact, some areas of management have focused its study on the overseeing, designing, and controlling the process of production in an effort to find the best methodology that ensures the business success and performance. However, complexities arise in this field because many variables such as costs, inventory, scheduling, suppliers, etc have to be considered in any business. Lean approach and the traditional approach are two points of view that aim to address this complexities, and those will be examined in this essay.

The company should also focus on lean manufacturing because it has certain positive points like increase of efficiency, decrease in the waste, improvement of control and also this will create the unique demand and need of the customer in terms of products. It will also offer cost savings strategy and will maximize the high amount of values ​​with high

In the book, The Toyota Way, Jeffery Liker provides an in-depth account of, not only the tools and methods of Toyota’s Production System, but also a broader explanation of the principles at work in the Toyota culture. This philosophy of manufacturing can be summarized through two important pillars: “Continuous Improvement” and “Respect for People.” These pillars help define Toyota’s approach to doing business, were the focus is on continuous learning and embracing change. By incorporating this ideology and its 14 principles into its manufacturing operations, Toyota has become the greatest manufacturer in the world. In this essay, I will provide a synopsis of Toyota’s 14 principles and also offer my own account of lean manufacturing at CNH Industrial.

Lean manufacturing is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment tools and less engineering time to develop a new product. A company becomes lean by continuously increasing its capacity to produce high-quality goods while

Under the lean production approaches, a number of factors are essential to the process for

The Japanese automakers such as Toyota are dangerous competitors for the General Motors Corporation and the have scrambled for quite a large part of market shares if the GM in America and the global markets. The Japanese competitors cut down the cost tremendously by lean production. However, the production cost is still high in the General Motors Corporation. And the inefficiency of production cause the high price of its automobiles and the market share shrinks accordingly. (Coffey, 2005) Especially in face of the financial crisis, the General Motors Corporation has much to learn form lean production to cut down its production prices.

This paper deals with the production systems of two major leaders in the automobile market. Mass production is briefly touched up on and its advantages and disadvantages are discussed. Lean production is the emerging trend, which talks about minimizing waste and increasing production. We have also thrown light on when to use lean and mass

Lean production is known as lean where the aim is to remove waste, which is known as Muda a Japanese word which means waste, where the first company to use lean was Toyota. The company caught the “world attention in 1980” (Liker, 2004) as cars where lasting longer than American cars and Toyotas finical turnover was increased as well its shares increased by 24% when the market was crashing. Toyota production system (TPS) and lean production are similar as the aim is to remove waste and make the best quality product aswel to make the product the most valuable as this will make the production line will only have adding cost to the product none adding value. There is three types of waste the first waste is Mura a waste caused due to variation between products which can cause delay and further costing. The second waste is Muri which is cause by overworking employers to the maximum to the point where they

The concept of Lean Manufacturing was not quickly adopted by the United States manufacturing companies because of the cost incurred by changing the old manufacturing processes; the perceived need did not outweigh the benefits. In the 1970’s and the1980’s manufacturing companies in the United States took a closer look when Japanese and Chinese companies were selling similar products as the United States like cars, trucks, electronics, and toy, but at lower cost to the U.S. consumers. Companies within the United States urgently sought out experts from Japan to understand this new method due to declining revenues and the realization they were being forced out of market share. They learned that the concept of Lean Manufacturing was to change the goals by exposing waste in all areas within the manufacturing process with an increased focus to satisfy

The trend of implementing lean technology has grown into a broader spectrum. The Toyota production the TPS were applied where only manufacturing efficiency was the aim. Later in 1970 and 1980’s supply complexity, market and distribution, service was concentrated when the company became more globalized, and the aim was to improve the quality, control over effective process.

In the 1950s, the Toyota Motor Company incorporate Ford production and other techniques into an approach called Toyota Production System. It also has been known as Just In Time or lean production which can provide best quality, lowest cost, and shortest lead time (Kotelnikov, n.d). Lean Production is a modern management philosophy inspired that aims to eliminate waste in the production system (Olofsson, 2009). Lean means doing more with less: less time, inventory, space, labor, and money. The ultimate goal of this methodology is to improve and speed up production by eliminating

It aims to identify areas of inefficiency and generate ways of cost saving. Post World War II in the 1950’s in Japan, Toyota was able to use Lean as an improvement approach to improve flow and eliminate waste. It occurred that a series of simple innovations might make it more possible to provide both continuity in process flow and a wide variety in product offerings.

The purpose of this literary review is to achieve insight into lean manufacture and how it can be applied within a manufacturing environment. With global contention, it is important for maker to remain competitive in their respective marketplace and to understand the principles of lean manufacturing and the step to implement them to ensure that they are on the leading edge of manufacturing. This literary review describes the below mention principles.

Lean manufacturing originated long before Toyota and Ford, however the thought that it originated with Toyota is flattering since they are the ones who perfected it. By creating the Toyota Production System (TPS), Toyota found a better way to produce large quantities of product efficiently with eliminating the waste factor and while cutting down cost. Taiichi Ohno a former Toyota vice president promoted the idea of JIT (Just-in-Time) which means “producing the necessary units in the necessary quantities at the necessary time.” (Monden) Which leads to Toyota’s ultimate goal in the TPS is to improve productivity for better return in investment. To have continuous flow in a production system Toyota sought out to achieve the concept of JIT and autonomation . Since the TPS is what creates the parts who monitors the JIT system? The kanban system which is an informational system that controls quantities being produce in each process. As the discussion carries on throughout this paper about Toyota and their use of the kanban system the topic