Lean Operation -Toyota Case Study

2282 WordsSep 1, 201210 Pages
Introduction One of the most important things in a manufacturing company in order to obtain profit is to have a high level of quality and a minimum level of investment. This is the key that every company wanted to find during the years. In order to maintain a high position on the market and a competitive advantage, the implementation of a manufacturing strategy is very important. LITERATURE REVIEW The history of lean operations One of the first who found a solution in eliminating waste and developing mass production by saving time and money was Frederic Taylor, who invented the concept of scientific management by determining the optimal work model after various experiments. Henry Ford was the first who implemented this concept…show more content…
The second step is the changing of the plant and equipment. The implementation of the Kanban is needed, as well as some changes of the machines from the production line in order to make them more efficient regarding time and waste saving. In case of reducing the lot, the machine changeovers can be doubled with no additional costs. A Material Requirement Planning (MRP) also has to be implemented. It is a computer system that checks the inventories, schedule the productions and administrate inputs. In the third stage some more systems have to be implemented beside the MRP. For example Electronic Data Interchange (EDI) is an Information System that helps connecting the existing inventory with the suppliers. Finally, the fourth step is purchasing, that implies the functioning of the EDI and therefore, saving time through sending automatically information about the inventory to the supplier ( Lorefice, 1998). Lean operation results Regardless of the fact that it may be difficult and expensive the implementation of such a system in a company, the results are impressive. After some researches, it was found that after a period of three to five years after implementation, the inventories can be reduced up to 75 %, the labour productivity increased with 20%, on time delivery improved with 99%, reduction of defects by 20% every year, reaching 0 defects possible and the set up
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