The modern concept of lean management as used today can be traced back to the Toyota Production System (TPS). The manufacturing philosophy was pioneered by Japanese engineers to emphasize the minimization of waste and focus on “doing it right the first time” (Davis and Heineke, 2005). Engineers knew that waste was something that customers were not willing to pay for thus they should try and eliminate it. This led to the discovery that inventory is essentially waste. Keeping parts and products in stock adds no value to a company, and should be eliminated. Although lean production began in Japan, it now has been successfully implemented across the globe (Agus and Hajinoor, 2012). The integrated activity, know as lean production in supply chain management, is designed to achieve high-volume flexible production using very minimal inventories of raw materials. This is based on the idea that nothing will be produced until it is need. The process is implemented throughout the supply chain with the signal essentially moving backwards from the customer all the way back to raw materials. Lean production is an entire new way of thinking which includes the integration of vision, culture, and strategy to serve the customer with high quality, low cost, and short delivery times (Shook and Womack, 2015). Lean production is generally described from two points of view, either from a philosophical perspective related to guiding principles and overarching goals, or from the practical
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.
“Lean is a systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the **product at the pull of the customer in pursuit of perfection.” Lockwood [24].
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 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.
The primary objective of lean is to produce more value for customers with fewer resources. The advantage of lean production is it helps in reducing the cost of production by eliminating unnecessary materials used in production. Disadvantages of lean production are that it depends on the inventory the supplier keeps in his hand of which the suppliers often prefer in keeping a small amount of stock which is not acceptable in a lean production system. The material supply can delay being delivered to the production house due to unavoidable circumstances that may include transportation breakdown, suppliers strike or specific product not available (Theory of Constraints
The lean approach refers to a management philosophy in which the company is constantly pushing towards the ideal system. This is done by attempting to reduce or eliminate to the deviations from the system and adapt to any remaining deviations in place. In short, implementing lean production aims to reach the optimal level of efficiency.
Lean manufacturing is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for. The goal of Lean is to becomes the creation and maintenance of a production system which runs repetitively, day after day, week after week in a manner identical to the previous time period. Lean is actually the set of "tools" that assist in the identification and steady elimination of waste. As waste is eliminated quality
Lean Manufacturing focuses on eliminating non-value added processes and waste and try to produce only to satisfy customer demand.
Todd(2000) defines lean production as “initiative, whose goal is to shrink the waste in human effort, inventory, time to market, and manufacturing space to become highly responsive to customer demand while producing world class quality products in the most efficient and economical manner”. The Lean approach consists of several practices, which aim to improve efficiency, quality, and responsiveness to customers. Lean manufacturing is industrialized by Taiichi Ohno at Toyota Motor Company in the 1950’s (Motwani 2003). It was like “an innovation technique based on the minds and hands philosophy of the
Lean manufacturing is the process of eliminating waste in every area such as production, supply chain, maintenance, quality control and factory management.
Lean is a conspicuous theory and application which expects the use of a wide range of assets for any reason, other than the production of significant worth for the end client to be inefficient, and subsequently an objective for prohibition. The theory and mindset communicated by an arrangement of standards, supplemented by various devices and systems helps for waste abolition, equipped execution change, stock diminishment, and ideal quality level to the end clients. It is one of the principal and far reaching ideas that add to organizations everywhere throughout the globe to increase upper hand and thrive on the global market. (Čiarnienė & Vienažindienė, 2015)
The term ‘lean production’ came about to describe the Toyota production system in the late 1980’s. This came to pass through a research group from MIT who over five years analysed the automotive industry in fourteen countries. It was called ‘lean manufacturing’ rather than the Toyota production system to make it easier for competitors and organizations to adopt this type of system.
The purpose of supply chain management is to manage the flow of goods and services from the procurement of raw material to the point of consumption. Furthermore, it deals with the storing of material, production, and distribution of a product that will maximize customer value and give a company a competitive advantage of the competition. Applying lean gives a company the ability to focus on constraints in the system that inhibit efficient product flow, eliminate waste and improve productivity and quality. For this to be successful its imperative companies seek to include suppliers, distributors and logistics into the process because lean requires integration, coordination and collaboration across the organization and throughout the supply chain (Agus & Hajinoor, 2012). As a result of increased transparency, companies will be more focused on performance and this will create a collective effort to reduce cost by eliminating waste and increasing productivity. Beyond the efforts to eliminate waste lean looks to incorporate customer value from the customers perspective. Simply, everything that is being done that ensures customer satisfaction is a value added step and any activity that fails to achieve customer satisfaction, which is something their willing to pay for, is a non-value added step and should be eliminated from the process. By simply knowing the process and eliminating
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.