...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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...Advantages & Disadvantages of Lean Production by Scott Shpak, Demand Media Lean production originated in the auto industry to address waste and efficiency. Related Articles Advantages & Disadvantages of Licensing the Rights to the Company's Production Process What Emphasis if Any Should Be Placed on Lean Production? Advantages and Disadvantages of Opening a Production Facility in a Foreign Country Advantages and Disadvantages of Market and Product Development Strategies The Advantages & Disadvantages of the Beef Production Industry What Are the Advantages & Disadvantages for Every Company Becoming a Customer-Focused Business? Lean philosophy centers on the elimination of waste in all forms in the workplace. Specific lean methods include just-in-time inventory management, Kanban scheduling systems, 5S workplace organization, Scrum and other "agile" software development methodologies. Many of these concepts and systems were pioneered by automobile manufacturer Toyota dating back to the 1940s and were subsequently adopted as best practices in many industries beyond automotive production. Applying these principles to your production has the potential for both improved profitability and increased complexity. Sponsored Link Lean Manufacturing Implement Lean Manufacturing, Visual Management, 5S & CIwww.corporatepartners.com.au Types of Waste Lean principles aim to minimize all forms of waste, from sources as varied as material defects to worker ergonomics. Many sources...
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...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: As described in the text, ―Project Management is the application of knowledge, skills...
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...LEAN LOGISTICS INTRODUCTION Every class we have had and every paper we have read has shown us that logistic activity involves delivering products and services where they are required at the exact time needed. In order to achieve this, logistics require the correct and precise administration of order processing, inventory, transportation, but also the consolidation of warehousing, materials handling and packaging, all these activities through an integrated network of facilities. We can see in our daily life that it is very difficult to imaging accomplishing a whole variety of operations such as, manufacturing or international commerce without logistics. In an effort to go deeply into the logistics wide and complex world we are willing to investigate an specific area of it, which we believe is the main goal of today’s logistical operations: Lean Logistics. Having a Lean system, without waste, allows us to give better and quicker response to the demand, and makes enterprises improve in many if not all activities. Writing this report represents not only giving definitions, and researching the most possible information that can be extracted from different reliable sources, it is more than that. It is interpreting data, analyzing information, and demonstrating how effective this logistical approach can be inside a company. DISCUSSION Companies are always pushing themselves to improve in order to obtain an advantage over their competitors. They frequently feel...
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...quantity of items while using the fewest resources (such as labourand/or time). Mass production has become popular since the assembly line became prominent in the 1900s, although the process embodies principles of efficiency that have been around much longer. AGİLE MANUFACTURING Agile manufacturing is an approach to manufacturing which is focused on meeting the needs of customers while maintaining high standards of quality and controlling the overall costs involved in the production of a particular product. The goal is to reduce waste as much as possible. In lean manufacturing, the company aims to cut all costs which are not directly related to the production of a product for the consumer. Agile manufacturing can include this concept, but it also adds an additional dimension, the idea that customer demands need to be met rapidly and effectively. In situations where companies integrate both approaches, they are sometimes said to be using “agile and lean manufacturing.” Markets can change very quickly, especially in the global economy. A company which cannot adapt quickly to change may find itself left behind, and once a company starts to lose market share, it can fall rapidly. The goal of agile manufacturing is to keep a company ahead of the competition so that consumers think of that company first, which allows it to continue...
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...I. Lean Accounting Lean accounting often refers to more simplified accounting practices that focuses on eliminating waste, reducing production lead time, and producing products on customer demand. But Lean accounting does not stand alone. It is enabled by lean thinking and lean production methods. And lean accounting not only needs lean manufacturing, it also facilitates lean manufacturing.1 That’s why lean accounting is always related to, but not necessarily have to be associated with lean manufacturing. Here are some specific positive reasons that lean accounting is important. 1. Reduces time, cost, and waste by eliminating wasteful transactions and systems. 2. A better way to understand costs, product costs and value stream costs. 3. Provides information for better lean decision making. 4. Identifies the potential financial benefits of lean manufacturing improvements. 5. Frees up the time for finance people to work on lean improvement. 6. Focuses the business around the value-added activities created for customers. 2 II. Benefits of Implementing a Lean Accounting System in a Lean Manufacturing Environment According to the positive reasons that addressed above, companies can be benefited from implementing a lean accounting system in a lean manufacturing environment in several different ways. 1. Eliminate Waste One of the most important objectives of lean improvement is to eliminate waste from the non-value-added...
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...White Paper Lean Manufacturing Lean Manufacturing Table of Contents Executive Summary.......................................................................................................................................................................................2 Introduction .......................................................................................................................................................................................................4 Lean Manufacturing—So What? .................................................................................................................................................4 Objectives .................................................................................................................................................................................................6 The Manufacturing Challenge .................................................................................................................................................................7 Globalization and Competitive Pressure ................................................................................................................................7 Mass Production to Mass Customization ...............................................................................................................................7 Shortening Product Life Cycles........................................................................
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...LEAN PROJECT MANAGEMENT Assessment of project risk management processes NEUS ALCARAZ BOSCÀ Master of Science Thesis Stockholm, Sweden 2012LEAN PROJECT MANAGEMENT Assessment of project risk management processes by Neus Alcaraz Boscà Master of Science Thesis INDEK 2012:36 KTH Industrial Engineering and Management Industrial Management SE-100 44 STOCKHOLMi ACKNOWLEDGEMENTS Firstly, I would like to thank my supervisor, Johann Packendorff, from the School of Industrial Engineering and Management at the Royal Institute of Technology, for accepting me in his department and for giving me good and useful guide. Secondly, thanks to all my family for being during all this year at the other side of the screen making me much easier the way. Especially, thanks to my sister, Maria, for spending some of her spare time giving me very good advice in the writing of this thesis, and above all, for being such a good example of effort and overcoming during my entire life. Thanks to Marcos, for being always so kind with me, and forsupporting me not only this year but also all these years of study. Finally, I would like to thank all my friends for having always something fun to tell, cheering my day up despite being so far. Thanks especially to Pau and Lidia for coming to visit us and spend wonderful days together, and also to Marta, Patri and Ceci for being always there to me. I would like to dedicate this thesis project to my grandma, for having taken such good...
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...SUPPLY CHAIN MANAGEMENT To begin I should define a core competency as this is related with the Supply Chain in my review, so first, what is a core competency? According to Fitzsimmons (2012), core competency is something that the company does so well that it provides the company a competitive advantage. Core competency gives the company hard-to-imitate advantage. One of the Toyota's core competencies is their production system which is known as Toyota Production System (TPS). This is consists of Lean manufacturing and Just-In-Time (JIT) Production. Lean Manufacturing is the production practice in which it is focusing on the elimination of waste and continuous improvement over long-term. Lean Manufacturing has been proven to be successful in improving productivity and reducing cycle times. On the other hand, Just-In-Time production is the production practice in which it is focusing on synchronizing the material flow so that when one item moves out from a work station, another item is ready to move in. It allows Toyota to keep their inventory to the minimal levels and this can help the company to reduce the cost significantly. Toyota Production System has enable Toyota to gain competitive advantage over their competitors. Many companies viewed Toyota and argued that many of those companies which have studied Toyota Production System for decades and try to imitate their production system but not many companies have not been proven to be successful in imitating their production...
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...Riordan Manufacturing Scott Wissel OPS/571 February 24, 2013 Kristina Limon Riordan, a chemistry professor, found some ways to increase the tensile strength on polymers and patented the ideas. Eventually he was able to get some capital and started to manufacture his product. Riordan Manufacturing is a company that has 550 people. They are also looking to have $46 million of projected annual earnings. Riordan Industries owns the company that is a fortune 1000 enterprise that has over $1 billion in revenue. The company produces containers, custom parts, and fan parts all in plastic. This can be seen in any of their Albany, Georgia; Pontiac, Michigan; and Hangzhou, China manufacturing plants. Their Chinese plant was set up as a joint venture between Riordan and small consortium of Chinese nationals. Capacity planning is a strategy that can be used to identify what is needed to produce what is being asked of the business in the way of demand for the goods and services. A capacity plan depends on accurate input and constructive feedback from the planners that supports the company’s long range strategy ("What Is Capacity Planning?", 2013). The market for fans and custom plastic parts will be affected by the economic conditions people are facing. Riordan has to take in account the economic impact from their customers and this is crucial in determining the future direction of the company. Riordan must avoid a decrease in the manufacturing of electric fans...
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...“Creating Lean Suppliers” a Consider that the new corporate procurement strategy in support of your manufacturing business includes securing purchased critical parts and subassemblies from “lean” practicing suppliers. Your supply chain management in previous years has practiced the strategy of single sourcing as well as long-term partnering for critical purchased material. Prepare a list of bullets showing the advantages and disadvantages of staying with current suppliers (i.e. not switching) that currently do not have a “lean” in place and also define in the response your plan to achieve the new “lean” supplier requirement. I Advantage: * Better relationship – further involved in new production process * Better reputation (ethics) * Knowing the supplier better – its problems, cost-structure, and technology * Supplier may be more responsive * Creating “trust” II Disadvantage: * Cost of the BP team * Require extensive capital investment or extra personnel for suppliers * Time consuming (for the suppler to be lean) * Difficulty to change and sustain In order to achieve the new “lean” supplier requirement, I would want suppliers that have substantial responsibility during product development; the ability to accommodate and respond to the request of changes in product or manufacturing process; extensive capital investment or extra human resources. Also the suppliers that is reliable, and “self-reliant.” b Analyze Honda’s...
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...BUS307- Operations Management & Quantitative Techniques Ashford University Student: Tyrone A. Neal Instructor: Judith Ray Date: 6/3/2012 Introduction Case 15 is titled The Realco Breadmaster while case 16 is titled A Bumpy Road for Toyota. According to case 15, Johnny Chang, the owner of Realco Company developed a new bread maker which became a big success across the U. S because of its competitive features and pricing. The major issue revolving around the case is that the product lacked formal planning. According to case 15, the issue revolves around the fact that Toyota Company has a highly ambitious growth agenda that seems to strain the technical and human resources as well as undercutting quality. Other additional issues include language barriers and lack of time, which have resulted to production problems. An examination of the two cases and responses to specific questions will be presented. Case 15: The Realco Breadmaster 1. Develop a master production schedule for the breadmaker. What do the projected ending inventory and available-to-promise numbers look like? Has Realco “overpromised”? In your view, should Realco update either the forecast or the production numbers? A master production schedule for the bread-maker will be presented below. Demand Management Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Weekly demand for bread-maker 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Working days in a week 6 6 6 6 6 6...
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...International American University Shaping tomorrow’s leaders today! General Course Policies supplement this syllabus and are available through IAU Online as a digital soft copy. Please make sure that you review the General Course Policies so that you can be successful in this course. 4201 Wilshire Blvd., Suite #610 ♦ Los Angeles, CA 90010, CA, U.S.A. ♦ T: (323) 938-4428 ♦ F: (323) 938-4-4429 ♦ E: www.iau.la MGT 620a Operations Management & Supply Chain Syllabus Class Details Name: Email: Phone: Room: Method: Steve B. Young, Ph.D. (A.B.D.) syoung18@verizon.net (818) 360-6115 LA-Classroom C Hybrid Term/Year: Days: Time: Start Date: End Date: Spring Session 1 / 2015 Wednesdays 6:00pm-10:00pm January 05, 2015 February 27, 2015 Instructor’s Biography Steve Young graduated from Western Michigan University with a Bachelor of Science in Engineering and Business. He spent time as an HR director and consultant with many Aerospace firms. Steve has worked in numerous management positions for Boeing, Lockheed Martin, Eco Polymers, Hughes, and PM-10 Consultants specializing in the area of Human resource, business management, and business operations. Steve received his MBA from West Coast University with an emphasis in management and is looking to receive his PhD from Walden University in Applied Management and Decision Making with specializations in Organizational Change and Leadership in 2008. Steve is a senior faculty member and has been teaching for the University of Phoenix...
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...Rashmi Deshpande 008158722 Rashmi Deshpande 008158722 Financial Performance measures in a traditional business system Measuring the financial ability is a very important approach for any business entity in order to enhance its overall performance, profits and to maintain a financial stability. Financial performance measures are done in order to depict the company’s overall performance. This is done by performing some simple mathematical calculations. The most common way of measuring one’s financial measures is by calculating the financial ratios. These financial ratios can be used to compare the financial abilities of different companies. Thus these ratios are kind of scores based on which the companies are rated. These ratios can also help the company management in creating business plans and creating presentations for their customers and investors. Some of the common financial ratios used as financial measures are: The liquidity Ratios: These ratios are used to find out “how much ready cash or near cash a company has?” Some of the liquidity ratios are 1) Current ratio 2) Quick ratio The Profitability Ratios: These ratios measure the return on investment or the profitability. The most common profitability ratios are 1) Profit ratio 2) Earning power 3) Return on investment of Assets 4) Return on common equity. Asset Ratios: These ratios are used to measure the asset management ability. Some of the common asset ratios are 1) Inventory turnover 2) Days of receivable...
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...Operations Management Jana K. Adams BUS 307: Operations Management and Quantitive Techniques Instructor Amy Schoeppner February 6, 2012 When working for any business, it is vital that one keeps up with their day to day inventories and demand. By doing this, it allows management will follow a technique called master scheduling. The master scheduling permits management to establish targets for the demand, production and ending inventories. Having these targets will direct the companies to keep track of forecasted demands, booked orders, projected inventory levels, production quantities and units still available to meet customer needs otherwise known as available to promise. (Bozarth & Handfield, 2008, p.479) While viewing the Realco Breadmaster, the first thing that should have been completed was a master schedule such as the one below. Looking at the projected ending inventory, the inventory levels are running high. If the breadmaster production line continues to produce 40,000 breadmasters every other week while the customer demands continue to drop off, the management will need to re-strategize their production numbers. In my opinion I do not feel that Realco “overpromised”. The management however, should update their production numbers. If the production lines continue to over produce above the forecast, then the company runs the risk of over producing and the production lines will have to be shut down until some inventories can be sold. The management will...
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