The following sections will describe Lean efficiency and effectiveness, and also give examples with real case studies.
1.1 Efficiency of Lean Supply Management
The lean approach can substantially improve the process' efficiency. The objective is to create high quality products at a minimum cost in a short delivery time (Basu and Wright, 2008). This section explains briefly how Lean improves operational efficiency and enhances the competitiveness.
1.1.1 Elimination of waste
In the Lean concept, any non-value adding activity in the process is considered as a waste. The Lean principle tackles this problem by aiming to eliminate the waste from the operation, which will subsequently improve workflow and its efficiency as well as improve inventory
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If raw materials sent to the station are in the right quality, these materials will produce a standard quality output. For example, Seagate Technology improved their lean supply chain by increasing customers’ and stockholders’ value by refining products as an attribute of the Lean Six Sigma objectives. After that, considerable benefits were attained comprising 31 percent of throughputs, 80 percent of authorisation rate on requirements for vacuuming instruments, compared with 40 percent in the past; less operation time and a reduction on investment spending such as machinery, equipment etc. because the current equipment was utilised more powerfully. (Basu (2004) cited by Basu and Wright …show more content…
Another significance of lean supply network is working collaboratively with a fewer sets of suppliers (Trent, 2008). Fewer suppliers mean companies can work more closely and more efficiently towards a common goal by sharing information and creating trust. Moreover, Lean also provides clear benefits in the part of employee productivity enhancement. Caspian company, a Pennsylvania constructor of industrial sensors, accomplished a rise in labour productivity development by of 12 percent over a two-year period after the implementation of Lean (Cooper & Maskell,
TONI, A.D.,TONCHIA, S. (1996) “Lean orgnanisation, management by process and performance measurement”, International Journal of Operations and Production Management, 16(2), pp. 221-236. [Online}. Available at: http://www.emeraldinsight.com (Accessed: 08 December 2011)
There are many people that benefit from Lean Six Sigma which include mainly customers, suppliers, employees, and also stockholders. Lean Six Sigma is a way for businesses to improve, to reduce waste and to become more successful. In the future, more and more organizations will adopt or practice some of the Lean, Six Sigma, or both in order to stay competitive in today’s market. In some cases, blending both Lean and Six Sigma can be costly and difficult; however the end result can create an organization that focuses on quality, accuracy, and speed to meet the goal which is profitability.
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.
One noticeable thing about the lean approach to work force management was the respect and trust invested in the work force as well as the system. The workers were earlier seen as negative necessities of the system rather than contributing members and understandably the workers felt that since they were going to be with the firm for a long time period, things should be done their way.
An organization which implements lean understands customer value and gives attention to its key processes to continuously increase it. The goal of lean organization is to provide perfect value to the customer through a perfect value creation process that has zero waste.
The lean principles respond to changing customer desires and also provide high quality, low cost and faster throughput times. Lean principles eliminate waste along entire value streams thus creating processes that require less human investment, time and effort to come up with products and services at far less costs and with much fewer defects compared with conventional business systems.[1]
Lean Six Sigma is a methodology that creates processes within an organization to cut waste and improve the company’s performance. However, studies have shown that over the past decade applying Lean Manufacturing and Six Sigma can create problems for companies financially and potential problems for employees. Companies should take great care before implementing a Lean Six Sigma solution because in some instances, going lean can do more harm than good both financially for the organization as well as destroying employee loyalty and moral.
The Lean method mainly focuses on eliminating wastes in the organization. Wastes such as any activity that does not add to the final product (i.e. patient care). Also, keeping tabs on inventory of supplies to keep the par consistently filled. Along with using technology to improve day to day functions. And finally, another aspect that is crucial in the working environments
Lean is a comprehensive set of techniques that, when combined and matured, will allow you to reduce and then eliminate the seven wastes, adapting to changes and creating an effective value chain centered into Continuous Improvement and
Companies are continually striving to increase productivity and output of their operations. Their goal is to satisfy the customer with the exact product, quality, quantity, and price in the shortest amount of time. Lean has been originally created and defined as the process of eliminating waste. [1] Toyota along with the support a system to reduce or eliminate waste and non-value added activities from the various processes. [3] A value stream is the set of processes required to transform raw materials into finished goods that customer’s value. Mapping of the value stream aids the identification of value adding and non-value adding activities. [2] Some examples are listed below:
Picture yourself walking into your local mechanic’s auto repair shop. As you approach it, you see tires in random places, there’s muffler hanging awkwardly on a shelf next to a car battery and you can’t distinguish between costumers and mechanics besides the fact that the person with oil spots on his clothes make for a clear give away. What’s your general impression? Do you think you feel comfortable leaving your car with this shop? I know I wouldn’t. My name is Art Garcia, today I will be telling you about the Five S step process of Lean manufacturing and how it can be applied to everything from organizations such as this local business or military unit or office.
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...
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.
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.
Lean production system in applied in the normal manufacturing process and can be explained as follows.