Lean ProductionLean Production

The elimination of waste in the production The elimination of waste in the production processprocess

Craft production has existed for centuries –skilled individuals carrying out complex tasks.

Mass production fully developed during and after World War I by Henry Ford and General Motors’ Alfred SloanMass production systems were based on Taylor’s principles of Scientific Management

Lean production developed in Japan after World War II pioneered by Eiji Toyoda and Taiichi Ohno of Toyota

The Principles of Lean Production

• Elimination of waste• Continuous improvement – kaizan • Customer focus• Reducing Costs• Shortening Cycle times• Eliminate all activities that don’t add value• Produce what the customer wants

What is waste?

Waste is any process within production that does not give valued added to a product – does not make the product worth more.It is also the failure to take full advantage of resources available – for example not fully using the skillsof the workforce

Examples of waste will include

•Finished goods waiting to be delivered•Raw materials and components waiting to be used•Over stocking – large buffer stocks•Long down times on machines or tools•Lack of input from those who understand tasks, driving improvement•Lack of training of workers

To achieve an efficient system of lean production firms will need to use:

Just in time manufacturingContinuous improvement - kaizenFlexible manufacturingTotal quality managementEmpowerment of workersQuality Circles

These are all integral parts of lean production

Lean Production Benefits

• Removal of waste from the production system• Reduced opportunity cost of stock holding – less cash tied up in stock• Increased labour productivity• Reduction in manufacturing times• Improved quality• Reduced time to market• Increased Market Orientation• Motivates Employees

Why Is Lean Production Hard To Implement?

• Business culture• Theory X Managers can prevent the system being efective• Inflexible Workforce• Lack of Investment in Training• No exact model – needs to be adapted to suit each business• Requires good relationships with suppliers• Requires good relationships with customers• Long term commitment required from management