...Lean Management In operations, there are several different services that are involved with a company and the way it operates. The operations of a company’s products comes down to the tangibility of its output, production on demand or for inventory, customer-specific production, labor-intensive or automated operations, and the need for a physical production location. However, when developing the products, a company could lose much more money than it gains. This is due to redundancy, waste, and being unorganized. Due to the possibility of losing more money and the possibility of actually saving and making more money, many companies have implemented lean management. Lean management is “an approach to running an organization that supports the concept of continuous improvement, a long-term approach to work that systematically seeks to achieve small, incremental changes in processes in order to improve efficiency and quality” (Rouse). Simply put, lean management is to use minimal resources that are able to produce high quality goods and/or services. Being lean is a company’s ultimate goal. There is a balanced, smooth, and fast paste flow that matches the supply of the customer demand. Through lean management, the company is able to eliminate redundancy, eliminate waste, and make the system much more flexible. The number one benefit of lean management is that the company will make and save much more profit. The history of lean manage goes as far back as the 18th Century when Eli...
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...THE ROLE OF LEAN MANUFACTURING AND LEAN TECHNIQUES IN THE SUCCESS OF AN ORGANIZATION ACKNOWLEDGEMENT Requirements of this project were rather stringent as sufficient knowledge of the topic was not enough. It was also necessary to have abundance of devotion and willpower together with an ability and willingness to perform hard labour for successful completion of this project. It would be unfair on my part not to acknowledge the contribution of all those who had encouraged me all through and kept my spirits from flagging and that include my parents, friends and well wishers. These people, though not directly involved with the project, did most certainly provide the ambience that was sorely needed while undertaking such a strenuous task. I feel extremely fortunate that I had Mr/Ms Xxxx as my project leader and cannot thank him/her more for the unstinted encouragement I had received throughout this period. If his/her suggestions that resulted in necessary and timely course corrections were not there, I doubt very much whether this project would have at all seen the light of the day, let alone being successfully completed within the deadline. ABSTRACT The word that is most significant in Lean Manufacturing process is ‘lean’ which literally means a body or a system that does not have any unnecessary or avoidable flab or float. Such flab or float exists in manufacturing systems and are manifested through unnecessary or nil value movements or costs that do not add to the final...
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...Lean is a logical approach to minimize gap between customer’s expectation and actual outcome at the best speed with the lowest cost. Lean.org defines Lean by a succinct definition “Lean is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources”.1 LEAN addresses new reality: 1 What is Lean? Ref: http://www.lean.org/WhatsLean/ The advent of Lean can be traced to after World War II, when Kiichiro Toyoda and other from the Japanese car manufacturer, Toyota, studied Henry Ford’s car manufacturing Production process to develop its own efficient Toyota Production System, using processes that maximized the value for the customer with lesser resources. Ford was the pioneer in bringing together an entire production process in what he termed Flow production. He was able to revolutionize sequential development, in the form of the moving assembly line systems, use standardized parts, develop fabricated components in the manufacturing process which could be assembled to the vehicle in a matter of minutes, to produce Model T vehicles of one variety only. Using what eventually came to be known as principles of Lean production, Toyota and especially its senior executive Taiichi Ohno was able to dramatically produce automobiles at one third the number of engineering hours, in half the amount of time, with higher quality and lesser cost, than the American and European car manufacturers. When Jim Womack...
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...There is considerable interest to apply the principles of Lean Manufacturing in the Service Industry – sometimes called Lean Services. The motivation comes from the fact that the Toyota Production System – also known as Lean Manufacturing – has been very successful in transforming manufacturing. The popular thought is that those same lean principles that has transformed manufacturing could do the same for services. I have applied the principles of Lean Manufacturing in both services and manufacturing and I’ve learned the subtle difference in both contexts and also how one might apply lean to one versus the other. What is unwise is the blind copying of the tools of lean manufacturing, thinking that they will work in services. The fact is that manufacturing and services are very different. Let me attempt to highlight how a service business is different from a manufacturing business. Service Business Manufacturing Business simultaneous production and consumption (co-creation between producer and consumer) consumption and production at different stages many critical aspects are intangible many critical aspects are tangible concept of inventory may not be material, but can be virtual such as requests and, in healthcare, patients waiting for service can be considered a type of inventory usually has inventory and buffers considerable variability in service delivery some variation open universe in variety of service cases closed set in variety in product manufacturing ...
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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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...the goods are received, verifying the delivery takes 2 hrs and move into the in-store stock room takes 45 minutes. Store shelves are replenished each day, with items being pulled from the stock room and placed on display shelves during times when employees are not directly providing service to customers. Estimated time for customer purchase is based on the time to enter, seek, find, select, and transact for the desired item in-store (Guidon Performance Solutions, 2009). The estimated time for customer purchase in the current state is a lead time of 15 minutes prior to the checkout process and 5 minutes to complete the checkout process. The replenishment process is also shown in Fig.1 with utilization of the inventory management system. Inventory data is entered and stored at the following points: receiving, which enters the total items received during the last shipment; storing, which tracks volumes in the stock room for in-store sale and delivery of online purchases; and checkout, with perpetual tracking of outgoing items for both in- store and online purchases. Physical counts of in-store inventory are conducted at one-month periods and are not included in the process time. The data summary table describes the total time for online and in-store movement of items from the retail supplier to the...
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...BUILDING RESEARCH & INFORMATION (2003) 31(2), 119–133 Lean project management Glenn Ballard1,2 and Gregory A. Howell1 1 Lean Construction Institute, 4536 Fieldbrook Road, Oakland, CA 94619, USA 2 University of California at Berkeley, Berkeley, CA, USA E-mail: gballard@leanconstruction.org Projects are temporary production systems. When those systems are structured to deliver the product while maximizing value and minimizing waste, they are said to be ‘lean’ projects. Lean project management differs from traditional project management not only in the goals it pursues, but also in the structure of its phases, the relationship between phases and the participants in each phase. This paper presents a model of lean project management and contrasts lean and traditional approaches. Four tools or interventions are presented as illustrations of lean concepts in action. Keywords: construction management, Lean Project Delivery System (LPDS), lean project management, project management, value, waste Les projets sont des systemes de production temporaires. Lorsque ces systemes sont organise pour fournir le produit tout ` ` ´s en optimisant la valeur et en minimisant les gaspillages, on dit qu’il s’agit de projets au plus juste . La gestion de ce type de projet differe de celle des projets classiques non seulement au niveau des objectifs vise mais aussi a celui de la ` ´s ` structure des phases, des relations entre les phases et des participants a chaque phase. Cet article propose...
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...Quality Management and Lean Systems In Quality Management there are five concepts. The third is Six Sigma which is a route for the development and allocation of close to perfect products. It is a level of how much a process differs from exactness (Russell & Taylor, 2013). The goal for Six Sigma is equal to or less than 3.4 defects (anything outside of a customer’s specifications) per million opportunities (Russell & Taylor, 2013). Six Sigma has two sub-methodologies (practices, procedures and rules) DMAIC (define, measure, analyze, improve, control) which is a system for improvement of existing processes which fall below standards and looks for improvement, and DMADV (define, measure, analyze, design, verify) which is used to develop new products or procedures at the most highest quality levels (Russell & Taylor, 2013). Both of these processes are achieved by project team members (green belts) and project leaders (black belts) and overseen by supervisors (mater black belts). In Lean Systems there are five concepts. The fifth is Poka-yoke, in short it is the prevention of defects from occurring, also known as “fool-proofing” (Russell & Taylor, 2015, Chap. 16). Poka-yokes create correct conditions prior to executing step, preventing defects from happening in the first place. Any item, action, or worker involved in production can have a defect causing failure of a product, so it is vital to reach a defect free zone. There are two methods for prevention based poka-yokes...
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...Chapter 16 The following case study examines an inquiry about lean training from a production manager to a professor. Although the case is short, the responses from both parties imply hidden concerns about lean management and philosophies. It is important to note that numerical data is not present and the analytics of this case is based of behavioral and philosophical indications from the involved parties. The backbone of this paper is to acknowledge the barriers of lean management benefits and implementation. It will consist of a brief introduction on lean philosophy, dissection of the case study, an overview of lean management results, and recommendations for the case situation. Just like a manufacturing plant, lean philosophy is transformative approach to a systematic operation. The general idea is to produce more with less. Rarely has there been an entity that progresses without producing waste. A car, for example, uses gasoline to create combustions within an engine to accelerate the car forward. In doing so it produces emissions from the consumed gasoline. Humans need to eat for functionality. Through the digestive and metabolic systems, food is broken down and the body takes carbohydrates and proteins for energy and then discards what can't be used. Trees, cells, and businesses all have a system that transforms inputs into outputs. All of these systems produce some form of waste. The idea behind lean philosophy is to analyze the systems process and improve waste reduction...
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...“Leading the Lean way: Analyzing the HR role for organizational effectiveness in Lean Management Practices” - Manjunath N Covering Letter for submission: The Editor Subject: Submission of Manuscript. Dear Sir/Madam, Please find my submission of research paper/article for possible publications in your journal. I hereby affirm that the content of this manuscript are original. Furthermore it has been neither published elsewhere fully or partially or any language nor submitted for publication (fully or partially) elsewhere simultaneously. All correspondence henceforth may please be addressed to me. Yours sincerely, Mr.Manjunath N Name of the Author: MANJUNATH N Designation: Asst. Professor, Department of MBA Affiliation: RNS Institute of Technology Mobile Number: +919844985959 Email: nmanjunath1986@gmail.com ABSTRACT Organizations, the world over are facing stiff and diverse challenges with regard to enriching customer value at the appropriate time and appropriate cost. Thus the essence of customer value entails the organizations to structure their activities in such a way that leverages their cost and time potential. An increasing number of organizations are resorting, thus to a more simplified organization design that embodies built in mechanisms to cater to the core activities and embrace a methodology that abhors waste and with a fierce dedication to excellence. This has seen the emergence of “Lean” management practices as a cornerstone...
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...A LEAN PLAN Green Acres will identify a Lean Operations Plan and ways to reduce or the wastes produced in our production or project and service development. To be lean: • Identify customers and specify value, recognize that even a small fraction of our efforts and time adds value for the end customer. • Identify the value stream – the entire set of activities through the stages of our Neighborhood Designs project – and create flow by eliminating wastes. The value stream represents the end-to-end process that delivers value to the customer. • Produce only the products that the customer wants. Value depends of customer's desires and is pulled from the provider by the customer. • Pursue perfection – every action and asset adds value for the end customer. There are several potential wastes involved in the areas of production, project and service development. The first is waiting – long intervals between operations – which would cause a loss of time and add costs if a lot of units of the Neighborhood remain vacant. Another is transportation, as it is an additional concern for our processes, incurs cost and adds no value to the operation. Unnecessary Inventory could also affect our operation or performance. The negative impact on agricultural lands of the project, too, will also add a high cost to the project. Finally, we intend to support the reduction of the burning of fossil fuels by reducing the need for automobiles. (cardiff.ac.uk), (Maltzman 180). Plan...
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...Jaskanwal Singh Mand et al., 2013 ISSN 2319-345X www.ijmrbs.com Vol. 2, No. 1, January 2013 © 2013 IJMRBS. All Rights Reserved APPLICATION OF LEAN AND JIT PRINCIPLES IN SUPPLY CHAIN MANAGEMENT Chandan Deep Singh1, Rajdeep Singh1, Jaskanwal Singh Mand1* and Sukhvir Singh1 *Corresponding Author: Jaskanwal Singh Mand, mandjaskanwal@yahoo.com Supply Chain Management is a set of synchronized decisions and activities utilized to efficiently integrate suppliers, manufacturers, warehouses, transporters, retailers, and customers so that the right product or service is distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying customer service level requirements. SCM leads to a proficient way of doing things completely. Lean manufacturing and JIT play an importunate role in better functioning of SCM. Some of the lean manufacturing principles are: JIT inventory principle, JIT production principle, JIT human resource principle, JIT quality principle, JIT supplier relation principle, The present research involves role of lean manufacturing and JIT principles in SCM. Keywords: SCM, JIT, Lean manufacturing origin of the concept of lean or lean thinking cannot be easily assigned to any one person, company, INTRODUCTION Supply Chain Management (SCM) is a set of synchronized decisions and activities utilized to efficiently integrate suppliers, manufacturers, warehouses, transporters...
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...Lean Supply Chain Management Principles and Practices Professor Deborah Nightingale October 3, 2005 Lean Supply Chain Management Learning Points • 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 partnerships & strategic alliances represent a key feature of lean supply chain management ESD.61J / 16.852J: Integrating the Lean Enterprise Page 2 © Deborah Nightingale, 2005 Massachusetts Institute of Technology Theory: Lean Represents a “Hybrid” Approach to Organizing Interfirm Relationships • “Markets” (Armʼs Length): Lower production costs, higher coordination costs • • • Firm buys (all) inputs from outside specialized suppliers Inputs are highly standardized; no transaction-specific assets Prices serve as sole coordination mechanism • “Hierarchies” (Vertical Integration): Higher production costs, lower coordination costs • • Firm produces required inputs in-house (in the extreme, all inputs) Inputs are highly customized, involve high transaction costs or dedicated investments, and require close coordination • “Lean” (Hybrid): Lowest production and coordination costs; economically most efficient choice-- new model • • • Firm buys both customized...
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...These highest-level overarching objectives need to be distilled to real life activities and goals. The typical focus at this point becomes financially-based operational plans. Financial measures alone, however, are not sufficient to prepare the organization for the work to follow, especially keeping in mind that one of the premises of MBP is that learning from the planning and implementation process is as important as the plan itself. Focusing only on financial objectives limits the organization from making critical changes. The concept of strategic learning suggests that the companies that are the most successful in the broadest terms have mastered strategic thinking versus strategic planning.[5] To appropriately define a balanced mix of financial and nonfinancial measures, the use of a Balanced Scorecard[6] is recommended. The Harvard Business Review describes the methods and advantages by which the balanced measures can be selected. These balanced objectives support the overarching goals arising from the MBP process. Using an MPB tool called a goals and action (G&A) matrix,[7] SCM and manufacturing operations managers can clearly articulate their objectives with reference to the overarching goals. The G&A matrix also allows the alignment of potentially conflicting objectives. For example, an SCM objective may be to reduce inbound transportation costs while a manufacturing objective may be to improve inventory turns or increase delivery frequency; the SCM goal would pursue...
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...Research on Lean Project Management Research on Lean Project Management Summary This report explains theories and assumptions of current project management methods, and compares it to the Lean Production Delivery System (LPDS) by showing advantages and disadvantages of each method. This report also includes how the LPDS is more efficient than other methods by eliminating wastes and save cost and duration. Introduction: Client needs nowadays are getting more stylish due to the continuous new challenges in the environment, economy, technology and society for the necessity of creating or upgrading new projects. Meeting these requirements involves changing old methods in managing projects into new ones which are more essential to meet the needs of the market. Moreover, new concepts have been considered in addition for the time, cost and quality to guaranty the success of a project. Many new concepts could be presented for production management, but the Lean Production Delivery System (LPDS) is one of the most successful practices concerning the development of project management. For this matter, this report will include an investigation and discussion comparing the advantages and disadvantages of current project management methods and Lean Production Delivery Systems (LPDS). Current project management methods, Advantages and Disadvantages: ...
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