Lean Manufacturing Implementation in Malaysian Automotive Components Manufacturer

Lean Manufacturing Implementation in Malaysian Automotive Components Manufacturer

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Case Study Topic:
Lean manufacturing implementation in Malaysian Automotive Components Manufacturer
Summary of the Case Study:
The purpose of this case study is to investigate the methods used in implementing lean manufacturing by this successful company namely MJ SDN BHD where this company was awarded by Malaysia Japan Automotive Industries Cooperation (MAJAICO) on its achievement as a Toyota Production System (TPS) Model Company (Muslimen, Yusof and Abidin, 2011). This case study was chosen because it related to our assignment’s central issue in the process of implementing lean production. The issue that may face by the company in the implementation of lean production is that the process is time consuming and high in expenditure (Sandberg, 1995). Despite requiring specific tools and techniques, this long term project also need a clear direction of work progress, proper planning and controlling, and adapted to a company’s environment and needs. Most of the companies failed in implementing lean manufacturing are because they possess an ambiguous project direction, lack of planning and insufficient project sequencing (Bhasin and Burcher, 2006 as cited in Muslimen, et al., 2011).
Lean Manufacturing was distributed across countries and industries and widely acceptable and adoptable as best manufacturing practice for company due to its flexibility, fast respond, cost saving, and superior in quality (Schonberger, 2007 as cited in Muslimen, et al., 2011). Different manufacturing companies used different ways to implement lean manufacturing system. However, it is challenging in finding a suitable approach to implement lean manufacturing because it must be suitable to a particular company’s environment and needs. There is no universal sol...

... middle of paper ...

...petitive force that may face by MJ Company which is a Malaysian base company. MJ Company has to address this problem by keeping track on the pace of advanced technological improvement information and always update its company system in terms of latest design and substitution of other raw materials. In addition, Research and Development (R&D) has to be carried out frequently to make investigation and analyzation in order to follow the pace of other global automotive companies. R&D can be the intangible assets or expenses in a company based on the extent of company capacity and financial situation. Executing R&D in a small firm is pretty difficult due to insufficient time, resources and modal. As a result, R&D has the tendency or probability in leading to overspending and products’ costs increment problems especially for the long term and time consuming R&D project.

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