...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 concept of lean production in a manufacturing organization basically means to try and maximise the use of materials to achieve optimum customer value and at the same time reducing waste and ensuring the same standard of quality in the finished product. Reducing the resources means it will cheaper for the organization to create the product plus also for the customer to buy it. With regards to a manufacturing organization ‘lean production’ is basically a list of rules, tools and techniques which improves the organization in questions manufacturing processes. The main concept of ‘lean’ in a manufacturing organization is to reduce waste which can be broken down and understood as the seven wastes:- 1. Over-production – One of the worse types of waste which is the manufacture of the product before it is actually needed. This can create excess inventory. 2. Waiting – Time between the manufacturing processes 3. Motion – Time wasted from moving people around 4. Transport – Time wasted from the movement of materials from each manufacturing stage. 5. Inventory – Having too much stock...
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... Introduction Lean Manufacturing 1) Creating continuous process flow, 2) The pull system, 3) Leveling out the workload. Toyota Production System 1) Just In Time 2) Jidoka Long term relationship with suppliers Risk and Challenge 1) Toyota Vehicle Recalls 2) Environmental sensitivity Conclusion Introduction Toyota is one of the world's largest automobile manufacturers, selling over 9 million models in 2006¹on all five continents. A Top 10 Fortune Global 500²enterprise, Toyota ranks among the world's leading global corporations and is proud to be the most admired automaker³ an achievement the company believes stems from its , dedication to customer satisfaction. In early twentieth century, the three big motor companies (the Big 3) – General Motors (GM), Ford & Chrysler almost dominated the global market. In 1994, Toyota replaced Chrysler, and it became the global No. 2 motor manufacturer by squeezing out Ford in 2003. Since 2008, Toyota has replaced GM to be the largest automaker globally. Toyota is a successful corporation and has a very good performance in automotive industry, but it also has some troubles and challenges to face, like the problem of Toyota vehicle recall in the last three years. So we have to ask how did Toyota achieve its success? How Toyota face to the challenge? Toyota is known for its reliable cars among the general public, but it has also been known in manufacturing, management and relationship with suppliers. Toyota’s production...
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...SCHOOL OF BUSINESS University of Aarhus MASTER THESIS Challenges in Lean implementation Successful transformation towards Lean enterprise Ana Valentinova Kovacheva Supervisor: Ana Luiza Lara De Araújo MSc in Strategy, Organization and Leadership January 2010, Aarhus 2 Abstract The paper is based on a systematic literature review that examines how the implementation of Lean could bring value to the organization processes and contribute for achieving an operational excellence. Different organizational factors which have importance in the implementation process, are thoroughly examined. Key success factors that enhance the implementation process are identified - human resource practices, management style, organizational strategic vision, organizational culture, external partnerships. The research outlines the challenges that companies experience when they change their business model towards implementing a new to the company management system – Lean concept. For better understanding of the term the paper suggests definitions from the authors acknowledged in the field. Part of the research considers some critical points that impede the implementation of Lean. The conclusions are drawn upon considering lean as a complete business system, which change the way organization thinks in striving for a competitive advantage. Keywords: lean implementation, lean enterprise, Lean, challenges, process improvement 3 Table of Contents: Introduction...
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...refers to the addition of greater value or worth to a product or service, as a result of all the process that support its production and delivery to the customer: marketing, design, production, customer service, distribution, maintenance and so on. • Improved quality • Reduced prices and total costs • Reducing time to market and achieving deliveries to required timescale • Creating innovation • Reducing risk and supply vulnerability • Consolidation of supply chain • Improved supply chain relationships • Redesigning the organisational structure LEAN AND AGILE SUPPLY CHAIN Lean supply defined by lamming as “the elimination of duplication pf effort and capability in the supply chain combined with a philosophy of continuously increasing the expectations of performance and self-imposed pressure to excel.” • Lean supply chain management represents a new way of thinking about supplier networks • Lean principles require cooperative supplier relationships while balancing cooperation and competition. • Cooperation involves a spectrum of collaborative relationships & coordination mechanisms. • Supplier...
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...Design Riordan Manufacturing is considered one of the leading manufacturing companies. They produce plastic containers and parts for fans. The company was owned from a prior company called Riordan and it was purchased when it relocated to Michigan in 1992. About 8 years later it moved to China in which is now where the headquarters are today. In order for Riordan to run smoothly the company forecast the production using the average from the past three years and using the make-to-stock system. This system benefits the customer because they are able to fill the needs of the customers based off the inventory in stock. In this paper Learning Team A will go into more detail on the strategy the company uses, the supplier relationship and the effects on the supply chain, how lean production principles may be used to maximize the efficiency and effectiveness of the electric fan supply chain process, Aggregate Production Plan, Master Schedule, and Materials Requirement Plans for electric fans based off the sales forecast, two metrics to evaluate performance of the electric fan supply chain as well as create a process flow chart. Manufacturing Strategy There are three basic manufacturing strategies: chase, level or combination. For Riordan the manufacturing strategy that works and has the most benefit for the company would be level. With the level strategy it “seeks to produce an aggregate plan that maintains a steady production rate and/or a steady employment level” (Inman, A. 2016)...
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...Pull Strategy 5 Best practices 6 TOYOTA: LOGISTICS AND SUPPLY CHAIN STRATEGY 6 About the Company 6 Supply chain design 7 Key features of Toyota business model 7 Drivers of supply chain 8 Parts Ordering 9 Parts and Supplier Master 9 Forecasting 9 Toyota distribution model 10 Best practices 10 COMPARISON 10 ISSUES 11 RECOMMENDATIONS 12 REFRENCES 13 INTRODUCTION The Indian automotive industry, comprising vehicle and component manufacturers, has grown steadily since the economic liberalization of the early 1990’s. The arrival of major global auto companies has galvanised the domestic sector into adopting Supply Chain best practices. The changing business conditions of the 21st century has led to companies facing issues ranging from globalisation, economic uncertainty to new technologies and increasing consumer demands. In the automobile industry, as manufacturers design and build vehicles globally, their supply chains become increasingly complex with challenges that often stand in the way of profitability and higher shareholder value such as long order-to-delivery lead times, unreliable production schedules, excess inventory across the supply chain, lengthy demand planning cycles and lack of visibility of suppliers. The effect of the global economic meltdown increased the pressure on automotive executives to make right decisions about their supply chain for better performance. In a highly challenging and competitive environment such as today...
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...LEAN SYSTEMS Reduction in inventory because of robots. Quick and faster. Change the layouts and set-ups. Is learning organization approach for designing supply chain system known as lean system. Lean systems are operation systems that maximize the value added by each of the companies activities by removing waste and delays from them. It is making more efficient, more quicker and faster( is lean system). Lean systems develop more efficient manufacturing operations. What is JIT just in time-that incorporates generic elements of lean system by cutting unnecessary capacity or inventory and removing non value added activities in operations. Eliminates waste or muda. 8 types of wastes : 1 over production, 2) in appropriate processing,3) waiting, 8) transportation( Excessive handling during transportation), 4) motion, 5) Inventory , 6) defects and 7) underutilization of employees. JIT system organizes the resources, information flow and decisions that enables firm to realize the benefits of JIT principle. Lean system leads to continuous improvement in quality and productivity. The Japanese term for this approach to process improvement is KAIZEN. Hides underlying problems with processes that produce service or product. Service processes improved : scheduling, billing, order taking, accounting, financial planning . SUPPLY CHAIN CONSIDERATIONS IN LEAN SYSTEMS : 2 characterstics of lean systems that are related to creating nad managing material flows in a supply chain ;...
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...United States Environmental Protection Agency Solid Waste and Emergency Response (5302W) Policy, Economics & Innovation (1807T) EPA100-R-03-005 October 2003 www.epa.gov/ innovation/lean.htm Lean Manufacturing and the Environment: Research on Advanced Manufacturing Systems and the Environment and Recommendations for Leveraging Better Environmental Performance ACKNOWLEDGMENTS This report was prepared for the U.S. Environmental Protection Agency's Office of Solid Waste and Emergency Response (OSWER) and Office of Policy, Economics, and Innovation (OPEI). Ross & Associates Environmental Consulting, Ltd. prepared this report for U.S. EPA under contract to Industrial Economics, Inc. (U.S. EPA Contract # 68-D9-9018). DISCLAIMER The observations articulated in this report and its appendices represent Ross & Associates’ interpretation of the research, case study information, and interviews with lean experts and do not necessarily represent the opinions of the organizations or lean experts interviewed or researched as part of this effort. U.S. Environmental Protection Agency (EPA) representatives have reviewed and approved this report, but this does not necessarily constitute EPA endorsement of the observations or recommendations presented in this report. Lean Manufacturing and the Environment: Research on Advanced Manufacturing Systems and the Environment and Recommendations for Leveraging Better Environmental Performance Table of Contents Executive Summary...
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...Riordan’s Manufacturing Strategy According to "PWC" (2008), “today, business strategy and talent management are linked as an integrated talent management framework combining organization, business process and technology. Riordan’s Manufacturing manages their human capital and talent as strategic assets. They achieved by aligning the workforce with business objectives and by use performance metrics to drive decisions, monitor and improve results. This strategy shows how Riordan Manufacturing can successfully align their talent management strategy with technology to effectively manage their workforce needs in order to be a marketplace leader of the future” (Creating an agile workforce). Riordan’s Manufacturing has adapted the mixed manufacturing strategy which combines the Stable Workforce—variable work hours and the Level strategy that is most widely applied in many industries. The mix strategy is a planning strategy that uses two or more controllable variables to set a feasible production plan. With two strategies combined Riordan Manufacturing can take advantage of a well-trained workforce because the production rates never changes, lower turnover, lower absenteeism and more experienced workers (Jacobs & Chase, 2011). The Michael (n.d.) website manufacturing performance efficiency is the level to which quality of a product is exercised. This performance efficiency should be exercised in all manufacturing processes in order for a Riordan Manufacturing to avoid wasting of...
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...Brief Background & Definition of Lean: Due to the economic depression in the late 90’s in Thailand, lots of business methodologies changed. PD Aquarium as a manufacturer was not unaffected. It positioned itself to meet customer needs of both ‘made to order’ and ordinary products applying the lean approach as a cost reduction means in avoiding excess production being stored as inventory in a bid to cut down on cost. Lean manufacturing or lean production is basically a production practice that targets the identification and elimination of waste. Lean manufacturing changed the world as innovated by Toyota that is against mass production system (Taj Shahram, 2008).Taj believes lean means manufacturing without waste; here waste includes over production, waste in waiting time, transportation waste, inventory waste, processing waste, waste of motion and waste from production defects. Analyzing Methodology And Effectiveness In Identifying Problems At PD Aquarium: (1) Standard production cycle is five working days. No orders are taken over the weekend and any order received any day outside Monday automatically gets delivered the following Fridays as orders are only shipped for delivery on Fridays. On receipt of these orders from retailers, the administration clerk would check inventory and raw materials only after orders are received. Operating at lower cost to yield greater profits however customers would not be satisfied as serving the customer becomes vital means of differentiation...
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...Executive Summery The benefits of lean manufacturing are evident in factories across the world. With a view to achieve performance improvement both the developed and developing countries are practicing lean. In this study nine garment manufacturing companies were selected as sample. A field survey with a semi-structured questionnaire, interviews and site visits were conducted to get necessary lean information from the respondent. These companies were selected purposively to ensure the best possible scenario of lean practices in Bangladesh. The focus of this study is to investigate the improvement of manufacturing performance through lean practice in the Bangladeshi garment industry. The findings indicate that the selected companies have adopted a wide variety of lean tools and techniques and gained many performance improvements. Findings also identified the business challenges that drive the companies to practice lean as well as the areas where changes have been made. It concludes with suggestions for further work. Introduction Today’s global supply chains are, in effect, highly complex networks. They are increasingly vulnerable to disruption which can have significant impact on profitability and shareholder value. Recent research at Cranfield School of Management has highlighted where the sources of risk in supply chains might lie and how that risk might be mitigated and managed by the application of ‘Six Sigma’ philosophies and procedures. [pic] As Supply Chain...
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...Logistical Strategies within the Supply Chain La’Trice L. Watson American Military University Abstract Logisticians continually make strategic level decisions in order to manage uncertainty, customer service and cost. Clients such as manufacturers, raw materials suppliers, distributors, retailers and shippers are provided a service by logistic service providers within the supply chain which makes it necessary to formulate strategies (Davenport, Jarvenpa, & Beers, 1996). Logistics is a part of the supply chain, which plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet the clients’ needs (Butterworth-Heinemann, 2004). A number of logistical strategies exist from company to company, each claiming to be more efficient, faster, and better than their competitors. Any logistical strategy should contain some common components that supports the company’s overall logistics strategy (Waters, 2003). An effective strategy can be established for any logistical situation utilizing these four components: Agile logistics, lean management, a good relationship with vendors and effective technology systems. Logistical Strategies within the Supply Chain Because supply chain strategy depends on the type of supply chain a company uses, the type of functional strategies chosen should complement the type of supply...
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...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 which are finally delivered to the end customers. It’s not necessary that all these stages have to be present in a supply chain system. There are firms like Dell that do not have a distributor, wholesaler or a retailer in their supply chain. Some Industries where SCM plays an important role: * Automobile industry * Mining industry * Retail industry Executive Summary In...
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...us by providing us with all necessary facilities. We are thankful to him, for his expert advice and help which has always been source of inspiration for us. Above all, we owe everything to the Almighty and well-wishers for their valuable contribution and insights. However, we have taken utmost care in preparing this project report, mistakes would have crept though. (12010121196) Ms. N AMULYA REDDY (12010121213) Ms. NIKITA SINGHANIA (12010121276) Mr. REUBEN JOSEPH (12010121032) Mr. AMIT KUMAR JENA (12010121057) Ms. ARPITA DEB (12010121316) Ms. SAYONEE DATTA 1 Topic. Case Summary Q1: Toyota's revolutionary lean production Q2: Compare and contrast the arm's length relationships Q3: Development of Toyota's revolutionary "lean production system" Q4: Toyota enter into the NUMMI Q5: Toyota's subsequent expansion Q6: Role of national culture in shaping Toyota's lean production system Q7: Toyota is becoming more of a global corporation Page No. 03 05 07 08 09 10 12 13 2 SUMMARY Background Toyota is a multinational automobile manufacturing corporation headquartered in Japan. The company was founded by Kiichiro Toyoda in 1937 as a spin-off from...
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...ESD Working Paper Series Towards An Integration Of The Lean Enterprise System, Total Quality Management, Six Sigma And Related Enterprise Process Improvement Methods Kirkor Bozdogan Center for Technology, Policy and Industrial Development Massachusetts Institute of Technology Cambridge, MA USA 02139 Tel. 617 253-8540 bozdogan mit.edu ESD-WP-2010-05 August 2010 esd.mit.edu/wps ESD Working Paper Series Towards An Integration Of The Lean Enterprise System, Total Quality Management, Six Sigma And Related Enterprise Process Improvement Methods Kirkor Bozdogan Center for Technology, Policy and Industrial Development Massachusetts Institute of Technology Cambridge, MA USA 02139 Tel. 617 253-8540 bozdogan mit.edu ESD-WP-2010-05 August 2010 esd.mit.edu/wps TOWARDS AN INTEGRATION OF THE LEAN ENTERPRISE SYSTEM, TOTAL QUALITY MANAGEMENT, SIX SIGMA AND RELATED + ENTERPRISE PROCESS IMPROVEMENT METHODS Kirkor Bozdogan # Center for Technology, Policy and Industrial Development, Massachusetts Institute of Technology, Cambridge, MA USA 02139 August 5, 2010 Key Words: Lean manufacturing; just-in-time-production (JIT); Toyota Production System (TPS); lean enterprise system; total quality management (TQM); six sigma; lean six sigma; theory of constraints (TOC); agile manufacturing; business process reengineering (BPR); enterprise change and transformation; evidence-based management practices Abstract: The lean enterprise system, total quality management, six sigma...
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