Toyota Lean Management Case Study

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.

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

In the book, The Toyota Way, Jeffery Liker provides an in-depth account of, not only the tools and methods of Toyota’s Production System, but also a broader explanation of the principles at work in the Toyota culture. This philosophy of manufacturing can be summarized through two important pillars: “Continuous Improvement” and “Respect for People.” These pillars help define Toyota’s approach to doing business, were the focus is on continuous learning and embracing change. By incorporating this ideology and its 14 principles into its manufacturing operations, Toyota has become the greatest manufacturer in the world. In this essay, I will provide a synopsis of Toyota’s 14 principles and also offer my own account of lean manufacturing at CNH Industrial.

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

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.

The Just In Time Philosophy (JIT) is simply to eliminate waste, by cutting excess capacity or inventory and removing any activities that do not create value (Krajewski, Ritzman, Malhotra, 2013). As mentioned in the introduction, there are certain items that need to be gotten under control in order to run a neat, lean system. The goals of a lean system are to eliminate eight types of waste (overproduction, inappropriate processing,

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.

In the 1950s, the Toyota Motor Company incorporate Ford production and other techniques into an approach called Toyota Production System. It also has been known as Just In Time or lean production which can provide best quality, lowest cost, and shortest lead time (Kotelnikov, n.d). Lean Production is a modern management philosophy inspired that aims to eliminate waste in the production system (Olofsson, 2009). Lean means doing more with less: less time, inventory, space, labor, and money. The ultimate goal of this methodology is to improve and speed up production by eliminating

Lean methodology allows identifying operational waste in forms of overproducing, waiting times, unnecessary resources and transporting. The waste products can be identified with patient journey map which shows the flow of processes and patient experience. Within the Lean process, the term “value-added” is used to describe any activity that contributes directly to satisfying the needs of the client. “No value-added” refers to any activity that takes up time, space or resources which doesn’t contribute directly to patient satisfaction. The most useful tools in Lean methodology are value stream mapping, time measurement, visual management tools, the 5S system (sort, set in order, shine, standardize, sustain), and process mapping. The core values of Lean management encourages team work and continuous improvement. It is apparent that Lean promotes no punitive culture that avoids casting blame. It uses teamwork to analyse the problems then identify the cause of problems from the root.

Lean is a system that relies heavily on all aspects of the system running flawlessly and efficiently. To achieve this an operation must place extreme emphasis on creating a culture of lean company wide. A popular misconception is that lean is suited only for manufacturing. Not true. Lean applies in every business and every process. It is not a tactic or a cost reduction program, but a way of thinking and acting for an entire organization. Many organizations choose not to use the word lean, but to label what they do

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

In this part, the authors write about the steps of developing lean production by pointing out the assembly plants, the differences between “lean” and Ford’s point of view, production procedures, the supply chain, the scheme of selling automobiles, and what “lean” needs to be perfect.

Lean originally comes from the thought of scarce resources. The Japanese automotive manufacturer called Toyota was the one who introduced this method with innovations such as JIT, and so forth [14; 44; 28]. Lean operations were used as a different method for capital-intensive mass manufacture in order to help firm use resources more effectively and efficiently. As a result, the firm will be able to reduce muda activity and non-value adding tasks. The procedure of lean implementation and research had been widely used by many organizations across the world. Conglomerates found out that the manufacturing process need not only improvement in performance, but also the development must be extended and