Lean production is an assembly-line methodology developed originally for Toyota and the manufacturing of automobiles. It is also known as the Toyota Production System or just-in-time production. Lean production principles are also referred to as lean management or lean thinking.
There are two major pillars of lean production system. One is Just-in-Time system and other is
Kaizen. Just-in-Time System was developed as a result of adoption and adaptation of Mass
Production Techniques. Kaizen is a lean manufacturing tool that improves quality, productivity, safety, and workplace culture. Kaizen focuses on applying small, daily changes that result in major improvements over time.
The ten rules of lean production can be summarized:
1. Eliminate waste
2. Minimize inventory
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His philosophy, which focused on eliminating waste and empowering workers, reduced inventory and improved productivity. Instead of maintaining resources in anticipation of what might be required for future manufacturing, as Henry Ford did with his production line, the management team at Toyota built partnerships with suppliers. In effect, under the direction of Engineer Ohno,
Toyota automobiles became made-to-order. By maximizing the use of multiskilled employees, the company was able to flatten their management structure and focus resources in a flexible manner.
Because the company was able make changes quickly, they were often able to respond faster to market demands than their competitors could.
1
Ford Motor Company produced “A-Bomber an Hour” at Willow Run Plan during WWII for USAF using mass production methods
2 Henry Ford introduced the concept of standardized interchangeable components in auto assembly process
When it comes to waste, the lean philosophy has a very broad definition that includes anything that doesn't add value to the product. A lean product development team should focus on learning
Setting demonstrates the reasoning behind why Maycomb is so prejudice. Scout Finch described the setting with the following words towards the beginning of the novel, “Maycomb was the county seat of Maycomb County… Atticus’ office in the courthouse contained a checkerboard and an unsullied code of Alabama” (Lee 5). The quote reveals the setting, which is located in Alabama, a southern region of the United States. Southern states tended to support slavery and were often regarded as racist. Alabama was especially notorious for hating African Americans.
Under the lean production approaches, a number of factors are essential to the process for
Another change to implement is in the receiving of raw materials and the shipping of their finished goods. In China, the suppliers’ on-time delivery rate is only 93%. This rate will not work in a lean production planning environment. To increase this percentage, the plant will need to have deliveries more frequent so materials are always on hand. This would eliminate a potential bottleneck due to a lack of inventory having a negative effect on production times. Either way, it creates waste and will not maximize the efficiency of lean production.
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
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.
Toyota and Honda succeeded in constructing effective supplier relationships because of the methods they used for it. In article they were the following:
There are seven fundamentals to reduce waste. These fundamentals consist of focused factory networks, quality at the source, JIT
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.
There are different types of waste which result from over production, unnecessary motion, and wasted inventory, production of defective components, transportation and also over processing. The main aim is to eliminate all these kinds of waste.
Ortiz (2006) states that “a company kaizen program helps create a foundation for change that will enable a company to sustain process improvements for the life of the company” (Ortiz, 2006, p. 31).
The operational systems of organizations can be viewed as open systems, which interact with their respective environments on a continuous basis. In this context, these systems comprise synergetic and interdependent subsystems of input, process and output with the main objective of these systems being to efficiently and effectively deliver goods and/or services to their demanding customers (Yasin and Wafa, 2002). Confronting the challenges of global competition, companies have to reduce costs, improve quality, and meet their customers’ ever-changing needs (Canel et al., 2000). Even though lean techniques were developed for the manufacturing firms and
The company has a flat decentralized organizational structure, with less supervision and more independency of managers.
One factor that adds to the success of Toyota’s supply chain is their relationship with their suppliers and how they do business with those suppliers. Toyota does not simply give their supply contracts to the highest bidder; instead they work incredibly closely with their suppliers so that they can get the highest quality products possible. Toyota uses long-term, just-in-time contracts with all of their suppliers (Winfield & Hay, 1997). Toyota does not engage in any kind of mutual contracts, such as buy-back or revenue-sharing; however, they do take multiple steps to ensure a mutual benefit when they pair up with a supplier. Toyota invests in their suppliers to help them develop products (Liker & Choi, 2004). They also ensure that they share information with their suppliers in a structured fashion. They believe that targeted information leads to results and they ensure that specific communication is relayed to their suppliers at set times and in set ways (Liker & Choi, 2004). Perhaps the most unique aspect of Toyota’s relationships with their suppliers is that they embark on joint improvement ventures together. They set up study groups with suppliers to help both parties learn how to improve operations and send executives and engineers to the supply plants to help them improve processes (Liker & Choi, 2004). These kinds of benefits are described in the contracts Toyota keeps with their suppliers (Toyota Supplier, 2011). The close relationships that
In the past decades of the 70s and 80s, companies had the idea that the best way to get good pricing and service from a supplier, was to “beat up” on them. Then Toyota revolutionized the supply chain world with their lean manufacturing methodologies and total quality management systems that focused on eliminating waste to create value, while improving the quality of products. They also created a revolutionary corporate mindset– be nice to your suppliers and you will get more business. By working openly and closely with suppliers, and seeing them as true partners and collaborators, your business will operate better and more
Toyota is committed in developing its supplier base, which more closely reflects the diversity of its customers and the diversity of its team members who build Toyota vehicles. Having a diverse supplier base enables it to contribute to the economic well being of all its segments. Also, it recognize that partnering with suppliers who provide a diversity of ideas in addition to delivering manufacturing support, goods and services that creates a significant competitive advantage for Toyota.