The Five Principles Of Lean Thinking Essay

The Five Principles Of Lean Thinking Essay

Length: 710 words (2 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

1. Lean thinking is focused on eliminating waste throughout the company. It also places emphasis on looking through the customer’s point of view and providing value to them.

2. The five principles of lean thinking are:
a. Define value – this focuses on defining what the customer’s value in different products and services provided by the company. The emphasis is on the customer and how the company can provide value to them.
b. Identify the value streams – this requires company’s employees to see how the organization functions through the eyes of the customer. The company must identify all value added activities that go into delivering a quality product/service to the customer.
c. Make the value stream flow – rather than the traditional mass production style of operations, a lean approach should be taken. Lean uses a cellular work arrangement that pulls together people and equipment from specialized departments. Employees are trained to perform all steps within the process. This creates a continuous, one piece flow, of production.
d. Implement a pull system – this means that the customer demand mandates production levels. This system is highly automated and does not require any paperwork. When a component bin is empty, the system will signal the corresponding link in the value chain to replenish the item. To implement this system a takt time should be calculated in order to ensure production consistently meets demand
e. Strive for perfection – this give employees empowerment to make decisions for themselves rather than having to rely on upper management. If an employee sees a flaw in the process, they are able to take the means necessary to improve it.

3. Contradiction between lean manufacturing and traditional accounting:
a. Whe...


... middle of paper ...


...ely. These factors can show improvements in company performance.

5. Value stream income statement:
a. More understandable to non-accountants due to simplicity
b. Attaches actual costs to each component of the value stream
c. Isolates the impact of inventory reductions on profits better than absorption accounting method
d. Separates organization sustaining costs and corporate allocation from value stream profitability

6. Cost-pricing may not work in today’s society because it assumes that the customer will pay what a company deems appropriate based on its cost structure. Cost pricing does not allow a company to view its costs as a set of inputs that must be aligned profitably with the expectations of the customer. The solution for this is target costing, which makes the customer’s needs the premise for pricing and continued process improvements within the company.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Long Term Results Of Lean Essay example

- 1. FOCUS ON LONG-TERM RESULTS Lean is not a one- or two-quarter commitment. It takes one to 2 years to build the required momentum, and from there your quest will certainly last for life. Yes, devices such as kaizen can supply very quick and also significant renovation. Yet, without putting in the time to imple- ment a program that yields sustainable advantages, process enhance- ments acquired by lean tools will slowly weaken back to where you started. Significant and also sustainable results will occur with- out the entire procedure, however one of the most profitable returns are realized via a two-to-five year plan....   [tags: Lean manufacturing, Toyota Production System]

Better Essays
1063 words (3 pages)

Essay on Huge Five Theory Of Personality

- Huge Five Theory of Personality Human assets experts regularly utilize the Big Five identity measurements to help place workers. That is on account of these measurements are thought to be the hidden qualities that make up a singular 's general identity. The "enormous five" are general classes of identity characteristics. While there is a critical collection of writing supporting this five-component model of identity, specialists don 't generally concur on the accurate marks for each one measurement....   [tags: Myers-Briggs Type Indicator]

Better Essays
867 words (2.5 pages)

Basic Principles Of Lean Management Essay

- The Toyota Production System represents a manufacturing culture of continuous improvement based on eliminating waste through involving all employees in the process. The objective of the TPS is to reduce the lead-time until the time it is delivered to the actual customer. Basically, TPS aims to produce the highest quality at the lowest cost as much as possible, and with the minimum lead-time possible. Methodologies: Lean management is customer oriented. There are five basic principles of lean management (Arnheiter & Maleyeff, 2005): • Understanding customer value • Value stream analysis • Flow • Pull • Perfection The main elements contributing to the elimination of non-value-added activities...   [tags: Six Sigma, Lean manufacturing, Auditing]

Better Essays
1305 words (3.7 pages)

Essay on Lean, Lean And Lean

- Lean is best defined as “a systematic approach to identifying and eliminating waste (non-value added activities) through continuous improvement by flowing the product only when the customer needs it (called pull) in pursuit of perfection” (Sarkar, 2008, p. 1). Lean thinking along with Six Sigma have generated interest all industries. This can be seen by the countless studies and quality improvement efforts undertaken by many corporations, with training and building staff as certified Lean Six Sigma experts. Lean is not a new concept and surfaced as a result of Toyota’s Production System....   [tags: Lean manufacturing, Manufacturing, Problem solving]

Better Essays
1218 words (3.5 pages)

Evaluation of the Lean Thinking Philosophy Essay

- Although lean thinking is the best solution that a business organization can ever have, the implementation of some of its strategies can be a challenge to a few businesses. Firstly, some employees are likely to leave the company in the advanced level of the lean implementation process. This may be due to the pressure of short time goals and limits that the employees are given to ensure that the lean philosophy is followed to the letter. As a recommendation, managers should be patient with lean thinking implementation, as it is a long-term solution....   [tags: business strategies]

Better Essays
1819 words (5.2 pages)

How Lean Manufacturing Has Been The Principle Concerns And Issues Of Numerous Manufacturing Companies All Through The World

- Lean Manufacturing The procedure of Lean Manufacturing has been the principle concerns and issues of numerous manufacturing companies all through the world. Numerous procedures paving the way to lean manufacturing have affected this significantly, for example, Interchangeable parts, Just in Time Production, the Ford Assembly line, and the Toyota Production Systems. Eli Whitney is thought to be the establishing father of this procedure with his concept of interchangeable parts. Later on in the 1900s, Henry Ford presented the thought of the assembly line, which quickly created vehicles....   [tags: Lean manufacturing, Toyota Production System]

Better Essays
940 words (2.7 pages)

Essay about Background Of Lean Manufacturing Concept

- Background of the study- Lean thinking concept was earlier recognized in the 1980s when the American car manufacturing industries realized that Japanese industries have been producing cars at a much cheaper cost with better quality. This realization was a result of Kiichiro Toyoda, Taiichi Ohno, and others revisiting the production system of Ford and thus inventing Toyota Production System. Lean manufacturing concept was presented by (Womack, Jones, and Roos 1992) Womack et al. in 1992. This Lean concept mainly aimed at reducing wastes of all forms recognized namely defects, waiting, over-production, rework, motion, processing, inventory and transport....   [tags: Lean manufacturing, Manufacturing]

Better Essays
728 words (2.1 pages)

Lessons in Lean Essay

- Introduction Lean manufacturing has become a very important aspect of the manufacturing firms as it combines both high service levels and low levels of inventory. Innovation through the use of improved technology and methodology is increasingly becoming very important for the manufacturers. Lean production in a company includes diverse characteristics of the business, which includes the organizational structure, systematic education, use of sound production principles, and training (Reid, & Sanders, 2005)....   [tags: Lean Manufacturing, firms, high service]

Free Essays
1051 words (3 pages)

Lean Production : Supply Chains Essay

- Lean production is built on various effective ideas such as continuous improvement, organizing the business, and just-in-time production, which makes lean production so effective in supply chains. The founding principles of lean production are arranged and incorporated with everything that an effcient business follows. This type of production includes wiping out what might be wasteful and hence utilizing less energy, supplies, capacity and time. Just-In-Time production goes hand in hand with lean production as JIT provides a set of new skillful qualities to the mix by stategizing a schedule and managing a minor but effcient work load....   [tags: Lean manufacturing, Kanban]

Better Essays
1262 words (3.6 pages)

Lean Manufacturing : Home Work Essay

- INEN : 5354 LEAN MANUFACTURING Home Work 2 T.S.R.Sanjay (L20352031) 8/6/2015   1) Investigate and explain in your own words Just-in-Time production (JIT). JIT- Just in Time was an approach used to achieve Lean manufacturing. JIT to explain it shortly it means producing right item at right time and at right quantity. Toyota introduced JIT approach in 1950 when the company facing Tough competition, high capital investment, rapid change in automobile market in terms of price value and technology....   [tags: Lean manufacturing, Kanban, Manufacturing]

Better Essays
1182 words (3.4 pages)