Benefits Of Lean Manufacturing

MANAGEMENT AND ORGANISATIONAL ANALYSIS ASSIGNMENT (QUESTION 2)

12J01DMBA024

AFRICA NAZARENE UNIVERSITY

PRESENTED TO DR KABARE The term Lean production is always associated with the term Toyota Production System which dates back to the 1940s. Toyota Production System was the result of studies and subsequent management tools developed by a team that was looking for ways to meet the productivity challenges that Toyota faced when the company first entered the automotive manufacturing industry.

Lean manufacturing is a system that integrates the routine work of producing and delivering services and information with problem identification and process improvement to eliminate waste and reduce production lot sizes. Lean production has emerged

These are explained below:

1. Cost Minimization Stocks are costly to store, move and maintain. By implementing lean production, an organization is able to minimize its stock quantities in its production processes thereby reducing stock associated costs to achieve a better bottom-line.

2. Improved Customer Satisfaction

One of the key principles of lean is identifying value as perceived by the customer. If a manufacturer is always supplying top quality products and services on time, then this will lead to greater customer satisfaction. Lean production enables an organization keep in touch with their customer needs through research and it is therefore able to produce what the customers actually need.

3. Improved Quality

Lean production advocates for continuous improvement. This leads to improved product and service quality. By embracing lean, organizations keep abreast with technology in an attempt to improve the quality of their products. Organizations can stagnate without change and are soon phased out of competition. Lean production enables an organization to be forward looking and open to