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Outline 5 advantages and disadvantages of lean productions
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The Benefits and the Possible Disadvantages of Lean Production Methods Being Utilised by an Aircraft Manufacturer Lean production is the term given to a range of measures traditionally used by Japanese businesses in an attempt to reduce waste and costs in production. It is aimed at the elimination of waste in every area of production. Its goal is to incorporate less human effort, less time to develop products, less space and to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible. Lean production methods being used within an aircraft manufacturer would have many benefits to the manufacturer, but alongside the benefits there would also be disadvantages in using these lean production techniques. Lean production procedures that the aircraft manufacturer could include Kaizen, the Just-In-Time method also known as JIT, Cell production and Lean quality. Kaizen is the Japanese word for 'continuous improvement'. It is a philosophy that indicates employees have not one job but two, the first is their set job and the second job is to help continually improve the business that they are working for. It is a business strategy that involves everyone in an organization working together to make improvements without large capital investments. An aircraft manufacturer would profit from this method as the small frequent changes would result in less upheaval in training. Also the small, frequent changes would result in low capital expenditure, but in the long term these small, frequent changes would increase costs in both training and capital expenditure, therefore mak... ... middle of paper ... ...and negative aspects, but it must be taken into account that a number of these advantages and disadvantages may balance out in the long term to become the opposite to what they were originally labelled or even irrelevant. The aircraft manufacturer may choose to employ several of the lean production procedures and use them in adjacent to each other. Another suggestion before deciding on one or more methods of lean production is for the aircraft manufacturer to use benchmarking. Benchmarking refers to a business finding the best methods and processes that are used by other businesses, and then trying to emulate these in order to become more efficient in its operations. If this procedure was used by the aircraft manufacturer it could be used not just for production but in all areas and processes in the manufacturer.
Achieving quality of conformance involved conform to specifications that involve providing customers with a quality product at the right price which accounts for the cost of materials. In order for a company to achieve and produce a successful product that customers want and need, it is vital that quality management and lean systems play front row. Quality management helps organizations to reduce waste and inventory. “Lean is about challenging the way things are done and opening our eyes to that waste and inefficiency” (Lean Benefits - Benefits of Lean, Why Lean is Important, 2015). Within each of these concepts are important tool and techniques that organizations can use to achieve a quality product. In this paper I will discuss “cost of quality” from the quality management side and “kaizen’s” from the lean system side, while discussing how each of these concepts are implemented into my own life or
A LEAN Company is our best description and our business philosophy (creating more value for customers with less resources), which pursues to deliver what the customer wants, when they want it, at maximum value with minimum misuse.Through the application of LEAN, we achieve more fulfillment as it helps to reduce the possibility to constantly be fighting a battle against difficulties. Besides, we promote a Continuous Improvement Culture in our performance.
Complete administration of cost is done by lean internal operational functions adopted by the Tesco. Record of accepted salespersons and organizing scheme are upgraded regularly and endlessly. Effectiveness and efficiency of such operations are maintained by these policies adopted by Tesco.
The methodology of Lean Six Sigma is the merger of two business tools that includes Lean Manufacturing and Six Sigma. Six Sigma focuses on improving current business processes and performance while Lean Manufacturing focuses on the improvement of the processes of an organization by using highly skilled employees to increase speed and quality. Combining the two methodologies creates an organization that focuses on quality, efficiency and speed to lower operational costs and increase profits. By following the Lean Six Sigma methodology, many companies have attempted to create a lean, waste-free environment ultimately at the expense of the employee and occasionally at the expense of the organization.
Persoon, T.J., Zaleski, S., & Frerichs, J., (2006) Improving preanalytic processes using the principles of lean production (Toyota Production System). Am J Clin Pathol. 2016 Oct;3(9):278-78. 2006 Jan;125(1):16-25.
According to Christopher and Towill (2001), there are mainly three ways to combine lean and leagile. The first hybrid approach is the Pareto rule, which means that the dominant 20% of products should use leanness and make to stock. While the remaining 80% products with less share of revenue should use agility. The second hybrid approach is about using lean approach for the base level of demand, while for the peak season or flexible demand, manufacturer can use agility
Lean manufacturing refers to systematic identification and elimination of waste through CI processes in pursuit of perfection (Khan et al. 2013; Yang & Yang 2013). Lean production is now used worldwide in manufacturing plants to eliminate waste from all ar...
The 777 would be manufactured differently than previous Boeing aircraft. Various efforts would be undertaken to increase demand and reduce manufacturing costs of the 777 in an attempt to create positive cash flows sooner. To increase demand, the 777 would be the first fly-by-wire Boeing aircraft, a feature Boeing’s competitors already added to their aircraft. Boeing also made an effort to get their large customers involved in the design process from the beginning in an effort to increase its competitive advantage and long-term demand for the 777. As a cost saving measure, the design and manufacturing teams would work together to create a detailed simulation of the manufacturing process that would reduce the cost of “improvements” that were often made during manufacturing thereby reducing the overall manufacturing cost. Furthermore, Boeing would invest in more training for its engineers on the new CAD system. This new manufacturing process would lead to large capital outflows in the short-run. The challenge for Mr. Shrontz is determining whether these capital investments will lead to an increased return on equity for Boeing.
Outsourcing labor and materials in a global market can significantly stretch the supply chain structure. This can have both positive and negative effects. Looking to different countries provides the opportunity to access different markets and find the lowest possible manufacturing costs. Many companies also embraced the Toyota Motor Corp. model of just-in-time inventory and other lean manufacturing techniques that emphasized speed and cost reduction (Bosman, 2006...
Lean startup method helps entrepreneurs to develop businesses and products. This method first developed by Eric Ries in 2008. Eric Ries gained a lot of experience in U.S. startups before developing the Lean Startup method. Ries states that: '' Startups shorten their product development cycle by following businesss hypothesis driven experimentation, repetitive product unleashes and validated learning processes. This method prioritize customers and their needs in order to minimize market risks and some initial costs.
What did Ohno mean by the elimination of waste? As a general term waste refers to time, resources, and material. Over production wastes resources, a worker who spent time idle, waiting on the next item wastes time, and wastes associated with keeping stocks were identified as areas of waste to be eliminated. The concepts consisted of Just In Time meaning that the production system moves items only when and, as they are needed. Autonomation the automating of production systems for inspection sped up this process of eliminating waste by automatically detecting defects.
Improvement in the quality is a continuous process; by discontinuing the continuity will shatter the business competitiveness in the market. Generally, six sigma, lean and Kaizen are being used for continuous improvement by the companies. But in case of manufacturing companies, they need to be more calculative and carful in the continuous improvement is essential but the company should be cautious in not investing in destructive research. It is not possible for implementing the TQM in all process (Ashkenas, 2013).
The main idea is to fulfill the internal or external customer’s wants. Through lean thinking, it is hoping that nonmanufacturing company’s can provides value to the customers with minimum cost, effort and can save time. Thus, it will lead to improve performance and optimum utilization of the company’s additional capacity and resources.
Nicholas, John, Soni, Avi. (2006). The Portal to Lean Production. Boca Raton, NY: Auerach Publications.
In the new global economy, with the improved information technology, and the increased competition, a study by Levy (2007) shows that, many companies have attempted to recognize and implement lean production (LP) systems, established by Toyota, that involve goals such as just-in-time (JIT) delivery, low inventories, zero defects, flexible production in small batches and close practical cooperation with suppliers. Therefore, this paper will present how Kellogg’s has been able to manage its lean production in a very efficient way to create long term value products and competitive advantage.