How Lean Manufacturing Helps Produce High Output With Low Inventory

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

Prior to Toyota’s Production System, the company was efficient, yet could not compete with large American competitors such as General Motors and Ford. Therefore, management realized that if the company was to be successful not only in Japan, but globally it would need to improve its manufacturing process. Consequently, the company developed Toyota’s lean manufacturing process, which is still used today. The LMP was used to eliminate waste in the entire production process to become more responsive to market demand and produce high quality products economically. In order to provide superior products, Toyota implemented many revolutionary strategies. For example, the company started, or invented, the Just-in-Time Manufacturing process. The JIT process, according to our text, is used to reduce inventory costs by scheduling supplies to arrive just in time to enter the production process or as inventory stock is depleted (Hill et al., 2015). Toyota used the just-in-time system to improve its supply chain management, which drastically decreased costs and increased the company’s production facilities output as compared to its competitors. In addition to JIT, the company introduced a concept known as Kanban that was included within the new JIT system. The Kanban system was developed by Ohno and was used to arrange for components and/or assemblies manufactured at Toyota to be delivered to the assembly floor only when needed, not before (Hill et al., 2015). Essentially the Kanban

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

Lean Manufacturing system pursues optimum streamlining throughout the entire system by the elimination of waste (non-value added/ waste) and aims to build quality into the process while recognizing the importance of cost reduction.

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

Lean is defines the manufacturing philosophy that reduces the time between the shipping and customer demand, which based on the systematic method by eliminating waste, that means giving the customer what they want when they want it, and don 't waste whatever. Rahmana, Sharif and Esa (2013) suggested lean production is mentioned to improve the company 's performance from the philosophy in reducing waste in order. That means, lean system destination is the decrease cost by removing the non-value activities, which they are applying a category of tools and techniques for checking and eliminating defective in the production process. In the Evenort Company should emulate the five overriding principles of lean thinking in terms of implementing lean that there is guarantee the company has been driving correctly in the lean manufacturing (Cardiff 2015) as can show in table 1.

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.

The core objection behind lean systems is to maximize customer value while minimizing waste. Basically, lean is defined by using fewer resources in order to make a perfect value for customers. How lean systems work, they use a highly skilled workforce and flexible equipment in order to make some advantages. Such as mass production which is the high volume and low unit cost. And craft production which is the variety and flexibility, this will help eliminate waste for the producer and consumer. Luckily, this approach has drawn attention to other services. For example, lean systems aren’t only suitable for manufactures but also health cares, offices and shipping and delivery. The misconception that lean is a tactic or cost reduction program is not necessarily true, but it is a process of thinking and acting for the entire company. In order to accomplish lean system thinking changes must refrain from management optimize separate technologies, assets and vertical departments.

And so they implemented Lean in 2004, in their repair division which reduced workplace. Lean manufacturing is applied to get rid of all non-value added steps of the procedure so that providing the best merchandise to clients. Lean was first invented by International Motor Vehicle Program but Taiichi Ohno had already implemented Lean in Toyota Production system. Ohno eliminated seven wastes such as overproduction, over processing, delay, inventories, defective parts, transportation and movements. Lean consists of many tools such as just-in-time, Kanban and etc.

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

Although the principles of lean can be dated back to the early 1900’s with Henry Ford’s development of the assembly line production, it was Kiichiro Toyoda, researching Ford’s innovation, adapted the process and further streamlining it in Toyota’s automobile manufacturing company that came up with what is now known today as the Toyota Production System. A disciplined, process-focused

The Industry of Industries in Transition. they look through the history of the automobile manufacturing by spelling out Henry Ford and Alfred Sloan, who left behind the old-fashioned type of production, craft production, and began a new age of the world manufacture with mass production. Also, they mention about Eiji Toyoda and Taiichi Ohno, who initially started the conception, “lean production”, which, nowadays, has been seeking by manufacturers of all kind of industries on over the world. In addition, the writers provide a quick view in the comparison among craft production, mass production, and lean production in which they point out the drawbacks of craft production, the obstacles of mass production, and the advantages of lean production. The author emphasize that no lean manufacturer has ever reached the ideal target of lean production, but they will continuously attempt to gain the perfections of lean production. This section, additionally, represents the impact of lean production on the professional careers and the working condition of employees these days. In the end of this

The concept of lean manufacturing was introduced in Japan, and Toyota Production System was the first company to use it. Lean manufacturing simply follows the notion that the customer will pay for the value of services they receive and they will not pay for the mistakes. It was stated in Challenges in the transformation to lean production from different manufacturing process choice that for Toyota the focal point is not to make money but to generate value for the customers; money follows automatically if the customers are satisfied.

Lean manufacturing is a method of carefully reducing non-value-adding work during production. Value is defined from customer’s perspective as any action or process that the customer will be willing to pay for. Lean manufacturing has been traced to automobile industry – Ford motors in the United States and Toyota motors in Japan(Singh et al., 2010a; Singh et al., 2010b). These companies simplified the processes of making their products by eliminating non-adding-value works. This also led to standardization.