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Lean manufacturing automotive case study example
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In the automobile industry, it is very important to have a highly efficient process for achieving target quantities, exactly when they are needed. This concept is known as lean production and holds a key role to a sustainable competitive position. Lean production is most often related with elimination of waste generally held by firms as excess inventory to lighten the effect of inconstancy in supply, processing time or demand. Its association with superior performance and its competence to provide competitive advantage is well established. This report focuses on Toyota Motor Corporation, a Japanese automotive manufacturer which developed the concept of lean manufacturing to increase the efficiency of its production by reducing the stock holding level. The basis of Toyota Production System (TPS) is the sheer elimination of waste. TPS includes standardization of work, uninterrupted work flows, direct links between suppliers and customers, and continuous improvement based on the scientific method (Spear and Bowen, 1999). The four main concepts of TPS are Just in Time (JIT), automation, flexible workforce and capitalizing on workers suggestion. Also, Toyota uses the pull inventory control system where the orders come from the customers and the line reacts to the demand. Ohno (1988) formulated Kanban as a ‘medium to pull material from an upstream station and manage product flow’. This has given Toyota its competitive advantage through the years. TOYOTA PRODUCTION SYSTEM CONCEPT Jidoka As per TPS’s official website quality is deep-seated during the manufacturing process. If equipment flaw or a defective part is spotted, the damaged machine directly stops, and operators halt production and rectify the identified problem. It is essential ... ... middle of paper ... ...porate innovation, a continuous strive for improvement in its processes and its highly efficient asset utilization. The development and implementation of Toyota’s lean production system has set a benchmark in the automobile industry and inspired many other companies in the automobile industry and other industries as well to adopt it. Although, since the recall of more than 7.5 million Toyota cars in North America, Japan, China and Europe by the end of the year 2009 and the beginning of 2010 has because of malfunctioning accelerator pedals and floor mat problems has brought Toyota under severe criticism. Due to this Toyota had to stop production on certain lines for some time to check and coordinate activities. This gave a huge economic blow to Toyota as it was already struggling to cope up from the recession and had then suffered from an aftermath decrease in sales.
In conclusion, “a study of the average benefits among US manufacturers over a five-year time frame revealed 90% reduction in cycle time, 70% reduction in inventory, 50% reduction in labor costs, and 80% reduction in space requirements” (Russell & Taylor, 2011, p. 740). There are many benefits to embracing Lean, and interest is
The paper starts with basic description on Lean Thinking, Toyota way and quality measurements like six sigma. They describes Lean as Lean is commonly understood to be a waste reduction methodology wherever processes square measure examined for seven specific wastes, and also the wastes are for good far from the method. Then they start the real topic of paper using this lean thinking in a donuts company. In this case the company is facing a serious issue in maintaining its service in the peak business hours. The paper explains the total flow of the operations that take place at backend
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...
Since more than 40 years, Toyota Company was thinking how to develop the traditional process costing system and the production system. Some of the companies believe that the increasing of the production is a big profit, while Toyota proved the opposite. The more you increase the products out of the need of the market, the more losses you are going to gain. This kin...
With the objective of manufacturing the vehicles in the most effective way and supplying the vehicles to the customers on time. The Toyota Production System (TPS) governs on two theories, namely "Jidoka" implying humanized automation that discovers process glitches and product shortcomings so that the equipment stops straight away averting further flawed production. The second concept of "Just-in-Time"(JIT) shows in a continuous flow, each procedure will only yield the fixed quantity as required by the succeeding process. During the commencement of Toyota, the market demand was at the peak. They touched a limit where they couldn 't meet these escalating demands. In a conventional way, they positioned all the machines together. However, after the implementation of production simulator with all the support from the people and management, they altered the layout of the entire plant as per their process flow. This made their work easier in terms of carrying parts back and forth in between the processes. With the vision of multi-tasking, each worker was executing on more than one machine. These lead to the
This chapter is discuss and compile information that is related to this final year project which is about the lean production system practice at automotive industry by using one of the lean tool which is standardized work kaizen to improve productivity and reduce production time. In this chapter will briefly discuss about the history and introduction about the Lean Production System. There are 7 type of deadly waste that listed by TPS and with the elaboration of Muda, Mura, Muri. The TPS House Diagram illustrates the manufacturing system and the Malaysia Japan Automotive Industries Cooperation (MAJAICO) program created to improving the Malaysia Automotive Industries. The element in the standardized work is takt time, cycle time,
(Harbour, 2016) As for inventory management is used to describe a business’ level of effectiveness when managing their physical inventory of on-hand products in relation to supply and demand. (Sentell, 2016) Lean inventory management modernizes the amount of stock controlled. The use of effective technique consists of increasing the level of visibility. Harbour further states,” Increasing visibility means increasing transparency across all of the suppliers working with an organization on a daily basis, regardless of where they happen to be and how they integral. In order to increase the company’s overall level of flexibility is by eliminating unnecessary or excessive stock. (Harbour, 2016) Kumar emphasizes that Lean Manufacturing System has emerged greatly and is an important tool for the Indian automotive industry. The implementation Lean Manufacturing has eliminated product defect and increased its production. (Kumar, 2012) According to Kumar, “The variables of lean manufacturing system implementation have been identified from literature review and experts ' opinions. Further, classification of the variables has been carried out based upon the
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.
Toyota is a pioneer of the LEAN manufacturing principle. Lean, as a process, is a way to add value to customers while minimizing waste (LEI, 2011). It can also be thought of in terms of flow, which is how Toyota likes to think of it. It is simply a process of decision making where the problems tend to be thought of in terms of flow, reducing starts and stops or unnecessary motion increases flow, reducing waste.
Just In Time, Toyota Production, and Lean Manufacturing are productions systems intended to reduce costs, and waste associated with inventory and manufacturing.
Lean manufacturing, also referred to as lean production, is the never ending effort to eliminate or reduce unnecessary material or activities from the manufacturing process if those processes consume resources
• While making a methodology is challenging, executing it is considerably more troublesome. Numerous organizations comprehend Toyota Production System now, yet at the same time think that it is troublesome to execute and implement.
Lean production is an approach to production developed in Japan. Toyota, the Japanese car manufacturer was the company that invented lean production. The whole aim of lean production is to reduce the quantity of resources used up in production. By doing this, lean production uses less of - factory space, materials, stocks, suppliers, labour, capital and time. Lean production reduces costs, increases efficiency and output and improves motivation. Lean production involves using a range of practices designed to reduce waste and improve productivity and quality.
Toyota has implemented many different systems such as performance monitoring software, the Just in time (JIT) inventory system, electronic quality control system, communication system and information system thought out their value chain which enable to make correct decision during the manufacturing process. They have identified that having large inventories of spares cost them extensive capital and they have implemented the Just in time (JIT) inventory system which advices the suppliers the exact spares that the product line required and provides a time frame. Toyota adopted continuous learning and embraces change allowing their staff to research and innovation (Toyota
...ce if their ideas are being accepted by the top management. A system of creative suggestions not only stressed on continuous improvement but it also give importance in identifying problem sources and eliminates waste so that organizational performance can be improved.