...White Paper Lean Manufacturing Lean Manufacturing Table of Contents Executive Summary.......................................................................................................................................................................................2 Introduction .......................................................................................................................................................................................................4 Lean Manufacturing—So What? .................................................................................................................................................4 Objectives .................................................................................................................................................................................................6 The Manufacturing Challenge .................................................................................................................................................................7 Globalization and Competitive Pressure ................................................................................................................................7 Mass Production to Mass Customization ...............................................................................................................................7 Shortening Product Life Cycles........................................................................
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...TEKNOLOGI MARA, SHAH ALAM FACULTY OF BUSINESS MANAGEMENT MASTERS OF BUSINESS ASMINISTRATION (BM 770) MANAGERIAL ACCOUNTING (ACC 770) INDIVIDUAL ASSIGNMENT: CONTEMPORARY MANAGERIAL ACCOUNTING (CONCENTRATION AREA: TOTAL QUALITY MANAGEMENT) PREPARED BY: STUDENT ID.: PREPARED FOR: NURWAHIDA BT. MOHD. YAAKUB 2009782101 DR. AZIZAH BT. ABDULLAH SUBMISSOION DATE: 10 FEBRUARY 2010 Table of Contents Contents Chapter One: Introduction to Contemporary Managerial Accounting Concepts 1. 2. Value Chain a. Just in Time (JIT) b. Total Quality Management (TQM) c. Theory of Constraints 3. 4. 5. 6. 7. 8. 9. Target Costing Kaizen Costing Life Cycle Costing (LCC) Pricing Methods Uses and Limitations of Cost-Based and Market-Based Pricing Factors Affecting Prices Pricing Models for Not-for-Profit Organizations 3 4 5 5 6 7 8 9 10 11 11 Page Chapter Two: Total Quality Management (TQM) – an Introduction and Its Applications Chapter Three: Conclusion Appendix 1: References 12 23 CHAPTER ONE: INTRODUCTION TO CONTEMPORARY MANAGERIAL ACCOUNTING CONCEPTS Over the years, the managerial accounting practices had evolved. From the traditional costing method, many firms now have adopted the contemporary managerial practices to achieve better product costing and manufacturing processes. There are many contemporary managerial accounting in practice, some of them being Value Chain, Just-In-Time (JIT) Manufacturing, Total Quality Management (TQM) and the Theory of Constraints (TOC). All...
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...Supply Chain A supply chain consists of all parties involved in receiving and filling a customer request. It requires transformation of components, natural resources and raw materials into a finished product that has to be delivered to the customer. Such activities begin when a customer has placed an order and end when the customer pays for his/her purchase. Most of the supply chains actually work as supply networks. There has to be a constant flow of information and funds between different stages. This makes the supply chains very dynamic in nature. A typical supply chain involves the following stages: * Customers- The primary purpose of any supply chain is to satisfy the customer needs, thus, a customer forms the most integral part of a supply chain. * Manufacturers- They are the producers of the products or goods. * Wholesalers- Wholesalers are persons or firms that purchase large quantities of goods or products from the producers, warehouse them and resell them to the retailers. Wholesalers that carry only non-competing goods are called as distributors. * Retailers- Retailers purchase goods from the wholesalers in large quantities and then sell the smaller quantities to the customers. They can purchase goods directly from the manufacturer. * Raw material/Component suppliers- They supply the primary components or raw materials that are used by the manufacturers for production process. The transformation process converts these into the finished products...
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...TOYOTA’S OPERATIONS STRATEGY Lean Manufacturing Toyota’s lean manufacturing has enabled the company to focus on consistent design and responsive approach to production operation. The company’s workforce is self-directed and motivated by output based measures and customer oriented criteria. The concepts of just in time (JIT), Kanban and respect for employees together with expedited problem solving approach (automated error correcting) has enabled the company to pursue lean innovations. Lean manufacturing has enabled Toyota to successfully develop its production systems to include new types of designs. The principles enables Toyota to manage its value stream, identify customer value, implement a “pull” approach that ropes the flow of scarce materials in operations and the overall development of production capability. The success of this ingenious strategy has enabled the company to rise up to global success in the auto industry. While the company still maintains its impressive performance in the application of lean practices, less of its competitive edge can be traced to TPS, more comes from applying lean product development strategies. As a result, lean best practices provide synergy to Toyota Production System. Supply Chain Management Toyota’s Supply chain management is a perfect combination of Porter’s value chain strategy, Kierestsu strategy, and Eliyahu Goldratt’s theory of constraints. Supply chain involves all activities associated with the transformation of...
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...ethically aware * Goal Three: Have developed leadership and management capability * Goal Four: Have developed and applied knowledge of international business and management theory * Goal Five: Have developed a range of research skills and project capabilities * Goal Six: (Specialist programmes only) Have developed specialist knowledge about the theory and practice of your programme of study All of the learning that takes place within modules is designed to enable you to achieve the above goals and your assessment tasks are mapped directly to these goals as outlined in each assessment brief. OUTLINE STUDY PLAN 2012/2013 | | Global Supply Chain Management MO0255 | S01 | Week | Lectures | Lecture Topic | Seminar | Recommended Reading | Directed study | 1 | Lecture 1 | Module Introduction | Making the groups of 4-5 studentsCase Study ReviewIntroduction to operation management (Operation Objectives in the Penang Mutiara Hotel) | Slack, N. (2010), sixth Edition, Chapter 2 | -Reading the TLP carefully-Reading stipulated chapters 1, 2 and 3 of the Slack, N. (2010). | | Lecture 2 | Introduction to Global Supply chain and management | | Slack, N. (2010), sixth Edition, Chapter 13 | -Evaluate the supply chain performance in “Siemens”-Evaluate the global sourcing policy within “Levi Strauss” | 2 | Lecture 1 | SC Performance measurement | Case Study ReviewGlobal Supply Chain managementSupplying Fast Fashion (C13, Slack) | Slack, N. (2010)...
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...Managing Internal Cost & Controlling – Developing & Maintaining Quality – Managing Operations JCT2 Supply Chain Task 1 Western Governor’s University Introduction My company name was Arete Sytems. Arete is an ancient Greek term meaning “excellence of any kind”. The choice of name was intended to represent the quality, high-end systems that we would produce. B1. Using Budgets and Pro-Forma Statements to Plan Production Capacity One of my key lessons from this simulation was the importance of working in teams and openly discussing decisions that need to be made before making them. I approached the simulation as the only team member because the simulation didn’t include other participants. In retrospect, I would have assigned other members, at least in my mind, to gain additional team insights. I was not careful enough in setting pricing for my two products correctly in the second quarter when we actually began sales. I priced my high end Mercedes line accidentally at the price I had planned for my mainstream Workhorse line and vice-versa. I did not look closely enough at my pro forma cash flow or income statements to recognize the forecasted loss and as a result did not dig deep enough to see the reasons and to make the adjustments in pricing. I was overly focused on cash at that point to fund production capacity. I discovered the error when evaluating second quarter actuals. Going into third quarter planning, I looked at the pro forma cash flow...
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...Economics, 10(3), 2010, 333-340 333 LEAN MANAGEMENT - THE WAY TO A PERFORMANT ENTERPRISE AMALIA VENERA TODORUŢ, CECILIA IRINA RĂBONŢU, DORU CÎRNU * ABSTRACT: In this work we approached issues related to new methods of production organization such as Lean Management, a method specific for a flexible production of great success which represents the guarantee for a performant enterprise. In this paper we presented the main concepts, the application and adaptation way in different contexts, both in industry and in services. We showed a modern tendency which is taking shape more and more in the contemporary economic context, such as the integration of this concept with the Six Sigma concept, and thus we can talk about Lean Six Sigma, as an integrator method which guarantees high-class quality and lower costs. KEY WORDS: lean management, quality, performances, Six Sigma, the diminution of the defaults JEL CLASSIFICATION: L15, L16, L25, M10, M11, M16 1. INTRODUCTION Researches on production technologies, operations and performance reflect the increasing context of industrial competition in the global economic environment. A key objective is the creation of a systematic knowledge base by applying the systemic approach and quantitative analysis, which will lead to a better understanding of fundamental factors, determinants of growth and industrial decline. An example is the Lean method and the Lean manufacturing principles, concepts and principles outlined after the researches on the...
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...global maritime logistics and the MPA. In this report, the utilisation as well as impacts of Lean and Six Sigma strategies will be analysed. In addition to this, the two strategies will be compared and contrasted. Lean and Six Sigma assist in working efficiently and reducing wastes. In recent times, IT has proven to be a vital tool in assisting organisations and global maritime logistics. This report will examine the relationship between IT and quality (TQM), efficiency (Lean) and collaboration and has shown assist them in their objectives and gain a competitive edge. This report has shown that IT has proven to be effective in helping organisations and global supply networks work and communicate among one another effectively and efficiently. 1.0 INTRODUCTION In this report, its main focus is on determining the most optimal cost reduction strategies in the implementation of green strategies in global maritime logistics such as the Singapore maritime logistics network or Maritime and Port Authority of Singapore (MPA) and for this particular paper, the researcher has chosen two specific cost reduction strategies specifically: Six Sigma and Lean. Container ports the world over are increasing at an alarming rate and ports have to take into account of its efficiency, throughput and green performance. TASK 1 2.0 COST REDUCTION STRATEGIES TO ACHIEVE OBJECTIVES Six Sigma and Lean are the strategies that will be critically examined and analysed to be implemented in the global...
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...rotation(employee is allowed to move from one specified job to another) and job enrichment/ employee empowerment. • Psychological components- it suggested that jobs should include the following characteristics, to wit: skill variety, job identity, job significance, an autonomy and feedback. • Self directed teams- a group of empowered individuals working together to reach a common goal. • Motivation and Incentive System-Money often serves as a psychological as financial motivator. It can be in the form of bonuses, profit and gain sharing and incentive systems. 2. Enumerate and discuss at least 4 supply chain strategies. • Supply Contracts. In traditional supply chain strategies, each party in the chain focuses on its own profit and hence makes decisions with little regard to their impact on other supply chain partners. Relationships between suppliers and buyers are established by means of supply contracts that specify pricing and volume discounts, delivery lead times,...
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...Action Plan – Implementing a Lean Transformation’ LEAN Final Project Alex Scholfield February 29, 2012 Summary Lean manufacturing can add significantly value to an organization by streamlining processes through the identification and elimination of muda or waste. Introduced by Toyota, Lean is more than just a tool, but a philosophy that needs to be adopted and incorporated into the culture of the organization. It is very important that the organization can see that leadership have bought in to the approach and are willing to support Lean. Numerous examples exist that demonstrate failed attempts at implementing Lean. It is important that organizations appreciate that they cannot simply wake up one day and choose to introduce Lean. It took Toyota many years to develop their culture into one of continuous improvement. For organizations that are new to Lean, the effort required will be significant in order to realize the true value associated with Lean principles. Poor planning will almost certainly result in disappointment and leave a strong negative association with any future Lean attempts along with a big investment with little to no return. With a focus on continuous improvement and continuous flow, manufacturing based on pull rather than push demand will assist organizations in becoming Lean. While Lean is a long journey, it can be one that returns significant value to an organization. What follows is a view of the history of Lean, some of the tools such as...
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...Lean Management In Automobile Industry Lean Management In Automobile Industry Arvinder Singh, Bargavi Poloju, Inderpreet Kaur, Inderjeet Kaur, Jaskaran Singh Gill Eastern Institute of Technology September 10, 2015 Abstract Lean and six sigma are widely known business improvement processes for industries /organisations these days for achieving drastic results, which are majorly cost cutting, quality maintenance and time management by specializing in processes to boost performance. Nowadays, There are some industries that are even integrating lean and six sigma into a more cohesive strategy i.e., lean sigma in order to establish even more powerful and effective process which focuses at eliminating wasteful activities and retaining most of the strengths of each activity. Lean Sigma aims to combine waste eliminating strategies of Lean Thinking with variability reducing techniques of six sigma to promote growth and increase revenue from the bottom line of organisations(M. Kumara). Lean management is outlined as a consistent and a methodical approach to determining and eliminating waste through continuous improvement, flowing the merchandise at the pull of the client in pursuit of perfection. The idea of lean management was developed for maximizing the resource utilization through reduction of waste, and eventually lean was developed in response to the unsteady and ever-competitive business organisations. For organisations to face major challenges and competition can be...
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...that affected braking in some models were some of the problem areas (Trudell, 2014). Over time, the safety related recalls continued growing. In fact, by May 2011, the automaker had recalled close to 20 million vehicles (Trudell, 2014). Naturally, the numerous recalls and lawsuits that ensued threatened to damage Toyota’s image; thus, to rectify this the company should organize its decision processes more efficiently. Keywords: organizational change, recall, total quality management Introduction For decades, Toyota set the standard for quality and reliability in the automotive industry. In fact, the Toyota brand has been touted as the pinnacle of automotive excellence by rating industries and industry consultants (Piotrowski & Gray, 2010). The automaker founded in 1937, has strived over the years to manufacture superior quality automobiles (Rajasekera, 2013). Toyota has built a global reputation for engineering affordable, quality vehicles, capitalizing on the principles of Just-In-Time (JIT), the Total Production System (TPS), and the Japanese concept of Kaizen, or continuous improvement (Rajasekera, 2013). Known...
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...JIT Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. Just-in-time production method is also called the Toyota Production System. To meet JIT objectives, the process relies on signals or Kanban (看板 Kanban?) between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality. Quick notice that stock depletion requires personnel to order new stock is critical to the inventory reduction at the center of JIT. This saves warehouse space and costs. However, the complete mechanism for making this work is often misunderstood. For instance, its effective application cannot be independent of other key components of a lean manufacturing system or it can "...end up with the opposite of the desired result." In recent years manufacturers have continued to try to hone forecasting methods such as applying a trailing 13 week average as a better predictor for JIT planning; however, some research demonstrates that basing JIT on the presumption of stability is inherently flawed. ------------------------------------------------- ...
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...------------------------------------------------- Quality Focus Paper Just-in-Time Production and Lean Manufacturing Keller Graduate School of Management Spring Semester, May 2010 Session GM588: Managing Quality (online) Instructor: Robert Lee 5 June 2010 Table of Contents I. Introduction 3 What is it? 3 Background 5 History 7 II. Literature Review 9 Significance in Practice 9 JIT and Lean Thought Processes 10 JIT & Lean Thinking – General Principles 10 Advantages/Benefits of JIT/lean 10 Major Advantages/Benefits of JIT 11 Major Advantages/Benefits of Lean Productions 11 Relevance of JIT/lean in Today’s Businesses 11 Mistakes of Implementation 13 Additional Challenges 13 III. Demonstrations and Applications in the Business World 16 Survival Strategy for Business 16 List of Companies that use JIT/lean production techniques 18 Best Practices & Successful Implementation 18 IV. Conclusion and Reflection 20 References 22 Introduction * What is it? Just-in-Time (JIT) production is a set of principles applied to manufacturing and inventory to control the purchase of materials to produce units on a need-basis. JIT is set on the philosophy that controlling raw materials purchased for production to bring them into the manufacturing process as they are needed leads to cost savings and production efficiencies. JIT focuses on realizing that holding little or no inventory has economic and quality values for the organization. Manufactures receive...
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...production scheduling software application to strategy production for each period of time which consists of purchasing the appropriate stock. “JUST IN TIME” production is the timely production of the minimum essential products. JIT production is frequently described as “product on need” or “stockless production”. Successful execution of a JIT production system needs the production facility to have the following characteristics. Just-In-Time Production Now, it has actually come to mean producing with minimum waste. “Waste” is taken in its most general sense and includes time and resources along with products. This needs a thoroughly prepared scheduling and circulation of resources through the production procedure. Modern production business makes use of complicated production scheduling software application to method production for all time duration which consists of purchasing the ideal stock. When people do (and JIT assists them to do this) they can be very responsive to consumer orders – after all, people have no stake in “compelling” customers to have one particular product, simply since they have a storage facility filled with parts that have to be used up. However, it is sitting in stock, and people have no stake in attempting to convince customers to take an outdated model only. The important advantages of JIT are: • Low wastage • High-quality production • Low inventory • High consumer responsiveness. Just in time (JIT) stock is a management system where products or...
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