...Lean manufacturing has become an ever increasing necessity in American manufacturing. Companies are striving to make a profit in a wildly fluctuating economy. Added to that; companies are becoming more aware of their responsibility to the environment as global citizens. Competition and innovation introduce new and exciting products to the market place every day. Large global companies have to respond with Lean manufacturing systems that reduce costs, improve their quality and environmental impact. For the purpose of this paper, Boeing will be used as an example. They manufacture airplanes. This company was chosen due to the extent they have shown the capabilities and processes of lean manufacturing. They have implemented lean principles all through their organization. Their quality standards are extremely high; and they continually meet those standards. This is an enormous manufacturer who deals with ongoing manufacturing as well as innovation in the field. They have expressed a concern for the environment and their impact upon it. They also have a track record of high safety standards and programs for their employees. Boeing is the largest air travel manufacturer in the world. They are now experiencing serious competition with Airbus out of Europe. In an effort to compete more effectively with their competition; they have dedicated their focus on the implementation of and continuing improvement through lean manufacturing. Boeing has begun utilizing their...
Words: 1081 - Pages: 5
...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...
Words: 522 - Pages: 3
...Problems faced by Toyota Based on the articles, there are 3 broad issues that Toyota currently faces. These includes (1) Deteriorating quality (2) Inefficient factories and engineering practices (3) Rising vehicle and labour costs Deteriorating quality According to another article, Consumer Reports reported that it will no longer actively recommend Toyota’s car due to the slip in product quality. This was evident from the fact that Toyota recalled more cars than sold in 2005. Subsequently in 2007 after the release of the Consumer’s report, Toyota recalled another 470,000 cars. Toyota’s rapid global expansion was cited as one of the cause of quality problems. The other possible reason for the slip in quality could be due to many components involved in the production of Toyota’s vehicle, as well as the complexity in production, which could have increase errors during the production process. Order qualifier refers to the set of criteria for a firm to do business in a particular market segment. Quality is likely to be regarded as an order qualifier in automobile industry since it would concern the safe use of the vehicle and the users. Toyota also holds the reputation of being able to produce quality cars in previous years. Therefore, quality issues may deter consumers from making Toyota their choice of car, which would result in Toyota losing its competitive edge over time. Inefficient factories and engineering practices Toyota values incremental improvement, yet on top...
Words: 1169 - Pages: 5
...The Principles, Benefits and Compliance of Lean Accounting As a way to reduce costs, manufacturing businesses today are looking for a leaner approach to production and are focusing on the overall process of producing an item to eventually sell to a consumer. This process is called the value stream, which is defined in Cost Accounting: A Managerial Emphasis as “the value-added activities needed to design, manufacture, and deliver a given product or product line to customers” (Horngren, Datar, & Rajan, 2014, p. 635). With the assistance of technology advancements to support with the communication of the different components of the value stream, processes have been developed, like Just in Time (JIT) production, that allow for the lean production of merchandise. Dan Woods describes this lean production process, in an article published in Forbes: “In a lean process, the demand signals pull the materials through the flow processes and the right number of products is created with as little waste as possible. When all the suppliers of materials are also making their processes lean, the result is that the entire supply chain is extremely responsive and efficient. “ (Wood, 2009) To go along with this lean production system, lean accounting was developed as “a costing method that focuses on value streams, as distinguished from individual products or departments, thereby eliminating waste in the accounting process” (Horngren, Datar, & Rajan, 2014, p. 635). This paper will summarize...
Words: 1410 - Pages: 6
...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...
Words: 4468 - Pages: 18
...LSS lean Six Sigma Abstract Purpose – Although research has been undertaken on the implementation of lean within various industries, the many tools and techniques that form the “tool box”, and its integration with Six Sigma (mainly through case studies and action research), there has been little written on the journey towards the integration of the two approaches. This paper aims to examine the integration of lean principles with Six Sigma methodology as a coherent approach to continuous improvement, and provides a conceptual model for their successful integration. Design/methodology/approach – Desk research and a literature review of each separate approach is provided, followed by a view of the literature of the integrated approach. Findings – No standard framework for lean Six Sigma or its implementation exists. A systematic approach needs to be adopted, which optimises systems as a whole, focusing the right strategies in the correct places. Originality/value – This paper contributes to knowledge by providing an insight into the evolution of the lean Six Sigma paradigm. It is suggested that a clear integration of the two approaches must be achieved, with sufficient scientific underpinning. Keywords Lean production, Six sigma Paper type Literature review 1. Introduction The Toyota Production System (TPS) provided the basis for what is now known as lean thinking, as popularised by Womack and Jones (1996). The development of this approach to manufacturing began shortly after...
Words: 6543 - Pages: 27
...A Lean Start James Swisher, PE Vice President, Project Management & Continuous Improvement Mary Washington Healthcare, Fredericksburg, VA Agenda • • • • • • Background Roadmaps Planning for Lean Self Training Lean Leaders Monthly Meeting Agenda • • • • • • • Yellow Belt Program Results What’s Worked Well Challenges Lessons Learned In Progress / Future Management Buy-in Background – Health System • Mary Washington Healthcare (MWHC) – Since 1899 • Over 40 facilities and services – Mary Washington Hospital – 437 beds – Stafford Hospital – 100 beds – Emergency and Outpatient Center – Snowden at Fredericksburg – Women’s Health Institute • Approximately 5,000 employees Background – Project Management • Consultant engagement – Lean projects identified • Project Management & Continuous Improvement (PMCI) – September 2010 – Project Management Office – Industrial Engineer/Lean Expert • Corporate Efficiency & Operations Committee • Leadership Commitment to Lean – Executive Leadership Training, July 2011 – Executive Office Training, 2011 Envisioned Roadmap for Lean Consultants identify projects PMCI created with initial staff Associates trained as Lean Leaders & Lean Master Leaders Lean Leaders paired with projects Ongoing Lean communication and education to the Organization Planning for Lean • Lean Training Research – Multiple national providers – Institute of Industrial Engineers (IIE) • Trainee Selection • Lean Green Belt Certification...
Words: 721 - Pages: 3
... Executive Summary The objective of this report is to develop Singapore as a premier global hub port and international maritime centre, and to safeguard Singapore strategic maritime objectives. Research for this report includes evaluating the application on Lean and Total Quality Management (TQM) in logistics and supply chain networks to achieve Maritime Port Authority (MPA) objectives such as quality of service, competitiveness, reliability and efficiency. The major findings shows that lean implementation improves processing times achieving more work in less staff time and bringing services up to standard. (Radnor, Walley, Stephens, & Bucci, 2006). It also changes the focus of management from optimizing separate technologies, assets, and vertical departments to optimizing the flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers. Lean helps to eliminate waste along entire value streams, instead of at isolated points, creates processes that need less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects, compared with traditional business systems. Also, it requires keeping far less than half the needed inventory on site, results in many fewer defects and produces a greater and ever growing variety of productions. TQM Management can be a tool to support and create synergy for inducing a more competitive...
Words: 4102 - Pages: 17
...For The Shipping Department at Helical Products Co. By Eric William Walker A Senior Project submitted In partial fulfillment of the requirements for the degree of Bachelor of Science in Industrial Engineering California Polytechnic State University San Luis Obispo Graded by: Checked by: Date of Submission: Approved by: EXECUTIVE SUMMARY Helical Products Company is a business that manufactures flexure products, such as couplings and u-joints. As part of a movement towards lean manufacturing, Helical Products Company of Santa Maria, California is need of a principle that will help them continuously improve their shipping department. A study of 5S, a lean principle focused on waste reduction, will be done to investigate opportunity for implementation. A literature review takes a peek on research of lean manufacturing history, lean workbook/ tutorials and lastly case studies and journal articles. The output of research provides a design plan for Helical using 5S and other lean principles compatible with 5S, such as error proofing and Value Stream Mapping. A list of suggestions based on analysis and feedback from the Helical shipping department is provided. Lastly, a 5S manual catered for Helical Products Company is attached in the appendix. 1 TABLE OF CONTENTS Executive Summary....................................................................................................................................... 1 Introduction ................................
Words: 7060 - Pages: 29
...University of Petroşani, 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...
Words: 3384 - Pages: 14
...doi:10.3926/jiem.2010.v3n1.p11-32 JIEM, 2010 – 3(1): 11-32 – Online ISSN: 2013-0953 Print ISSN: 2013-8423 A case study of lean, sustainable manufacturing Geoff Miller1, Janice Pawloski2, Charles Standridge 3 1 Grand Rapids Chair Company (USA); 2, 3 School of Engineering, Grand Valley State University (USA) geoff@grandrapidschair.com; pawloskj@gvsu.edu; standric@gvsu.edu Received December 2009 Accepted May 2010 Abstract: A small furniture production company has integrated lean tools and sustainability concepts with discrete event simulation modeling and analysis as well as mathematical optimization to make a positive impact on the environment, society and its own financial success. The principles of lean manufacturing that aid in the elimination of waste have helped the company meet ever increasing customer demands while preserving valuable resources for future generations. The implementation of lean and sustainable manufacturing was aided by the use of discrete event simulation and optimization to overcome deficits in lean’s traditional implementation strategies. Lean and green manufacturing can have a more significant, positive impact on multiple measures of operational performance when implemented concurrently rather than separately. These ideas are demonstrated by three applications. Keywords: lean manufacturing, green manufacturing, case-study, discrete event simulation, optimization 1 Introduction Manufacturers are under tremendous pressure...
Words: 6715 - Pages: 27
...present many enterprises with a challenge to limit the production period in a bid to maintain the supply in an ever-innovative market setting. The purpose of this paper, therefore, is to dissect the nature of lean thinking, by investigating the definition of the term lean production and the methods and goals that associate with this concept. In addition to that, this essay will explain into detail how the lean management style differs from the other popular management concepts. As such, the article aims at giving a clear presentation of lean thinking and production and the manner in which they influence the business operations. This will happen through a review of the contemporary literature on the term lean, and a summary of the principles and practises associated with lean thinking as well as the stated purpose of the management style in event management operation. Based on this an in depth evaluation of the validity of lean thinking will be made in line with effective event management operations. Literature review Lean is often a short-term waste reduction and cost cutting technique. Lean thinking, therefore, is set of cost reduction toolkits that form the basis of a programme or initiative. The fundamental concept of creating a successful lean business system lies in achieving the desires of customers at the time they need it (Womack and Jones, 1996). As such, this implies the pursuit of perfect...
Words: 2580 - Pages: 11
...Final Current Trends and Issues in Operations Management Presented To Operations Management Respectfully Submitted By Introduction 3 A Brief History of Operations Management 4 Current Trends and Issues in Operations Management 6 Lean Operations (Just-in-time) 6 Shrinking Product Life Cycles 7 Employee Empowerment and Training 8 Globalization 9 Total Quality Management 9 Advances in Technology 10 Insourcing 10 Conclusion 11 References 12 Introduction Operations is the part of a business organization that is responsible for producing goods and services (Stevenson, 2012, p. 4). In this definition, goods are tangible items. Goods can be finished items that are sold to end consumers such as a chair, a car, a computer, or a house. Goods can also be the raw materials, parts, and subassemblies that comprise the finished goods described above. These raw materials are sold as well, but not to end consumers. They are sold to the producers of the finished products. Services, for the most part, are not tangible, but are activities that provide some combination of time, location, form, or psychological value (Stevenson, 2012, p. 4). Services such as the ability to place a cell phone call, electricity in a home, advice from a financial planner, traveling on an airline, receiving medical treatment, or staying in a hotel are all considered services directed at an end consumer. One definition for the word management is “the person or persons controlling...
Words: 2745 - Pages: 11
...Autoliv is a world class example of lean manufacturing. This Fortune 500 Company makes automotive safety components such as seat belt, airbags, and steering wheels, and has over 80 plants in more than 32 countries. Revenue in 2007 topped $6.7 billion. Autoliv’s lean manufacturing environment is called the Autoliv Production System (APS), and is based on the world’s largest automobile manufacturers, and embodied in its Toyota Production System (TPS). At the heart of Autoliv is a system that focuses on continuous improvement. Based on the “House of Toyota”, Autoliv Ogden, Utah, air bag plants put the concepts embodied in the house to work every day. The only difference between the Toyota house and the one at Autoliv is that the company has added a third pillar to its house to represent employee involvement while the norm in Japan not always found in the United States Autoliv started its journey back in 1995 at the time the ogden plant was manufacturing capacity with 22work cells company managers acknowledge that back then Autoliv was “broken” and in need of significant and immediate change if it was to survive. This meant that everyone from senior management to employees and suppliers needed to be on board with rebuilding the company. It was not that the company could not fulfill the needs of its automaker customers however with increasing demand for both reliable and cost effective component supplies pressure to change become obvious. Recognizing the value of Toyotas approach...
Words: 1432 - Pages: 6
...CONTROL SYSTEM TOPIC: LEAN ACCOUNTING- An Emerging Concept SUB CODE: 10MBA32 NAME: SPOORTHI.K USN: 1PB11MBA33 CONTENTS 1. ABSTRACT WITH KEY WORDS 2. INTRODUCTION 3. THERORATICAL BACKGROUND 4. DISCUSSION 5. CONCLUSION 6. REFERENCE ABSTRACT WITH KEYWORDS From the last two decades of the 20th Century on, many companies have adopted production strategies that could be termed “lean manufacturing”. Lean team leaders state that traditional costing systems fail to properly assess their operational improvements and therefore ask for new cost accounting methods. The search for a new accounting paradigm has led to important applied research and several accounting methods. With the diversification of customer demand and competition of globalization, mass production is being replaced by lean production. In this background, the traditional accounting system is no longer applicable to lean production, and lean accounting supporting lean production comes into being. This paper introduces the background of lean accounting and the content of lean accounting, gives the measures of implementing lean accounting, finally compares lean accounting with traditional accounting and summarizes obstacles in the process of implementing lean accounting. The research and application of lean accounting...
Words: 4166 - Pages: 17
