Michelin Case Study

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.

At last, lean production has been adopted by widely in various industries and economic sectors to implement the production system that focus on eliminating

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

Countess firms have taken up lean production in their manufacturing process. This is because the process is known to have countless benefits when effectively implemented. For lean production to be effectively implemented, some principles have to be considered. These principles have been discussed in detail in this paper. The different principled in lean production as well as the different principles in effective business communication. How they are related and hence how they lead better production and hence better output from the firm.

Jaguar is one of the most popular automobile company in the world. The Jaguar Company was earlier owned by Ford Group and now been over taken by Tata Motors. The company manufactures cars and other vehicles that are commercial and non commercial. The most successful model of the Jaguar Company is Jaguar S-type. The company has been applying the change process from last so many decades. The main idea behind applying lean production system is to decline wastage and errors that actually adds to the cost of production. In addition the Jaguar Company applies JIT or Just in Time technique wherein the assembling of automobiles takes place just when the order comes in. Finally Kaizen technique is applied that help in achieving continuous improvement in the business process.

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.

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

This business brief will discuss Autoliv, a Fortune 500 company who manufactures automotive safety components (Krajewski, Ritzman, Malhotra, 2013). Autoliv has over 80 plants in more than 32 countries, all of which run on a lean manufacturing system, which is referred to as “Autoliv Production System (APS) (Krajewski, Ritzman, Malhotra, 2013). Toyota pioneered the principles that the APS is based on (Krajewski, Ritzman, Malhotra, 2013). Another A lean system allows businesses to improve operations, by getting rid of the “unwanted waste”, such as overproduction, transportation, waiting, motion, inventory, defects, etc (Krajewski, Ritzman, Malhotra, 2013).

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 establishment of Lean Six Sigma is to take a gander at items/benefits through the client 's eyes and decide how enhancements can wipe out "waste". Lean Six Sigma takes after a thorough methodology of DEFINE… MEASURE… ANALYZE… IMPROVE… CONTROL. Through this procedure we distinguish the 7 sorts of waste that is, Overproduction, Inventory, Extra Processing, Motion, Defects, Holding up, and Transportation. A group is structured to direct an Action Work Out to actualize changes that will wipe out the waste. Since "Waste makes Waste" we should ceaselessly Kaizen (improve) to streamline and streamline our methodologies. We exceed expectations to model the Toyota Production System (TPS) with the aid of Shingijutsu specialists that show us the

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.

Goodyear tires have been around since 1898. They originated in Akron, Ohio. They not only manufacture vehicles tires, but it manufactures racing, trucking and aircraft fleet tires. They are a publicly traded company. Over the last 60 years they have managed to become multinational. They are in the Asia Pacific, Europe, Middle East and Africa, and Latin America. They also have a subsidiary in Mexico. Goodyear received the highest significant honor, they were was named the world’s most admired company in the motor vehicle part industry by Fortune magazine. Goodyear strives to make great products and give excellent service, so they can be the consumer’s ideal choice.

The Company should include all stakeholders in their manufacturing process and to make it easy for consumers to participate in contributing ideas to product design. It is imperative to customers at all stages of product development, product specification, design, process, and equipment etc. Its primary focus should be the integration of teams of people having a stake in the tire, design tools, techniques and information about the product and the processes used to develop and manufacture

This work is done to study the improvement of the quality in automobile industry. This chapter consists three sections named as “Problem definition”, “Objectives” and “Methodology of the study” respectively. The section 3.1 named as “Problem definition” describes the challenge or difficulty that is to be solved. The solution may be achieved after fulfilling the objective by using some sub-objectives that are described in section 3.2 named as “Objectives”. The methodology described in section 3.3 in details. This methodology has been devised keeping in mind the view of “Problem definition” and the “Objectives” that are suggested for the fulfilment of the solution for the problem.

Michelin SCA (Michelin) is one of the largest manufacturing tire company in the world. The company principally sells and manufactures tires to a variety of vehicles, which include passenger cars, two-wheel vehicles, trucks, aircraft and agricultural equipment. The company also offers travel assistance to various companies across the worlds. As a world's leading manufacturer of tire, Michelin enhances customer enjoyment by providing better mobility solution to million of consumer around the globe. Apart from engaging in the car-manufacturing venture, the company also develops and distributes lifestyle products, which include car and bicycle accessories, gifts and collectables, leisure and work accessories. Michelin is famous in the automotive industry because the company integrates innovative system in tire design making its product to enjoy global competitive market advantages. At the end of the 2011 fiscal year, the company recorded the net sales of 20.7 billion making the company to record 15.8% growth in the net sales between 2010 fiscal year and 2011 fiscal year. Apart from the increase in the net sales that the company recorded between 2010 and 2011, the basic earning per share also increases from 6.78 in 2010 to 8.10 in 2011 fiscal year. The dividends per share also increase from 1.78 in 2010 to 2.10 at the end of the 2011 fiscal year. (Michelin 2011).