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Comparing lean and mass development strategies

The term "lean" has been coined by Wormack and Jones to chacterise the development method of japan car manufacturers as opposed to traditional mass development. Since Toyota creation Engineer Ohno printed his focus on the Toyota Creation System (TPS), production firms the world over have been focusing on implementing lean guidelines. These are however fewer types of lean in service surroundings however Linker (2004, p 269) quoting the Chairman of Toyota expresses that "applying TPS beyond your shop floor can be done but this can take some creativity". To some extent lean has replaced the traditional mass production-line approach and low fat recognises techniques such as six sigma, TQM, ISO 9000 yet others as part of its toolbox of adaptable concepts. The slim principle of flow is thought as the "progressive achievement of responsibilities along the value stream so a product arises from design to establish, order to delivery and recycleables into the hands of the customer with no stoppages, scrap or backflows" Wormack and Jones (p. 306)

Chapter 1 The rationale, evolution, and future of Low fat Developing. Critically discuss the distinctions, using examples, between your Low fat and Mass (Traditional) Production strategies.

Lean manufacturing aims to increase earnings by reducing costs through complete investigation and removal of throw away in the production process. Womack et al. (2003) states that the trim enterprise is more than a production philosophy it includes also product/process design, and the complete value string of a company. They have attempted to create the key guidelines for lean organization and explain that trim thinking can be summarized into five rules namely: specified value; the worthiness stream; flow; move and perfection.

The background and development of slim production however goes back to early management pioneers such as Eli Whitney and his making idea of interchangeable parts in 1799. Whitney had signed a contract to supply muskets to the U. S. Amy and claimed that he'd make every part interchangeable. This cutting edge promise back in those days marked the early start of mass development. The next major part of the introduction of manufacturing history originated from Frederick Taylor in the 1890's. Taylor purported clinical management with a theory that recommended that the most efficient manufacturing theory was one that studied the average person individuals' work solutions to find the optimum way of creation. Following Taylor, Frank and Lillian Gilbreth developed process graphs and motion picture techniques to record and examine work methods. They suggested such innovative tools as advanced working condition including recovery intervals and fostering positive traits to boost morale and production Karwatka (2006). The next major development came from Ford who developed the conveyor belt system and presented the first assembly line for the development the Model T cars with only one model and one shade. This paradigm was the result of worry over dropping sales which pressured Toyota to terminate a large part of its work force Womack (2007). Within their drive to discover ways for improving production Ford thought that they have to eliminate all misuse in the making process. In the USA there was waste materials of manpower, materials, space and time, Dahlgaard (2006). Reducing setups to minutes and seconds allowed small batches and an almost continuous stream which became the initial Ford concept, the delivery of the Toyota Development System (TPS) and in the end lean production Arnheiter, Maleyeff (2005). Recently, agile manufacturing appears to have followed low fat in the evolution of creation techniques. It really is a concept that is designed to make organizations more flexible by gratifying customer needs. Agile manufacturing will includes "leanness" because it suggests free capacity to become able to meet changing customers' needs. This type of versatility is however more fiscally risky.

Together Ohno (1988) and Sinigo (1985) developed the TPS making system. TPS is build on the school of thought that all throw away is unnecessary and really should be taken out The ideas behind Toyota creation can be found as a residence. It is represented in this manner just because a house is a system and only as strong as the weakest part of the system. Which has a weak foundation or

a fragile pillar, the house is not stable even if of other parts are very strong. The parts interact to create the complete, Morgan & Liker (2006). The TPS house has become a culture icon in the making world today.

Ohno (1998) identify that the TPS model means getting rid of waste material and has identified seven major non-value-adding activities in manufacturing procedures: overproduction; waiting; travel or conveyance; over control or incorrect processing; excess inventory; unnecessary activity and defects.

In the booklet "The machine that changed the entire world" Womack, et al (2007) introduced for the first time the term "Lean". Lean creation is "Slim" since it uses less than mass development - fifty percent the human work, half the making space, half the investment in tools, and half the engineering time to development a fresh product in the one half time. The ultimate way to describe this impressive production system is to compare it with other development techniques. Craft production uses very skilled employees and simple but adaptable tools to make products to meet customers' prospects whereas mass providers use narrowly skilled specialists to create products on expensive, single-purpose machines. Low fat suppliers on the other hands combines the benefits of craft and mass production, while avoiding the high costs. It employs teams of combination trained workers whatsoever level of the business and uses highly flexible, increasingly programmed machines to produces quantities of products. The meals industry is often typical of slim organizations as they looks for to reduce waste and spend less while the newer agile manufacturing looks for to fulfill customers even if this implies higher costs. This imply that lean is in fact different from the other concepts and initiative to implement all of these business functions will also have to vary. They fluctuate in school of thought/vision, strategy and processing culture. In trim organizations the target is to be more productive by eliminating misuse and producing top quality products in less time with flatter buildings, that encourages contribution and communication from staff. Mass manufacturing organizations however tend to have taller buildings which can cause alienation between organizational levels.

Although the idea of lean creation is quite effective in a range of industries in a few organizations that are not typical making it may also be impractical. In firm with a solid management and control ideology including the army, the food and clothing sectors it works quite well, perhaps due to its standardization and technological management origins.

Chapter 2 The organisational, operational and human barriers that might need to be overcome to be able to ensure a successful execution of the Low fat Creation strategy.

There are so benefits to be gained from going lean; however there are also barriers to its successful implementation. Quite evidently, there are problems in practice which are not explored by the theory. A major barrier is certainly the workers resources in an firm. If employees are not focused on the lean key points then businesses can struggle to implement lean initiatives. Employees and management have to be focused on the lean viewpoint and strategy to be able to acquire successful implementation. The trim process will probably fail if the lean initiatives aren't supported, as staff seek to follow other specific agendas. This can cause amount of resistance. The lean initiatives should permeate all the activities and roles within the company as partial implementation won't lead to success but instead create fragile links in the structure. The philosophy of the trim paradigm must be holistically embraced to get commitment and ensure success. The process represents major change and hence must be organized for, involve training and also have change agents prepared to manage unexpected problems. That is transformational change and the lack of trust and insecurity can inhibit the process as individuals develop their own defence device for coping. The trim organization will need to foster whose mental models that are incompatible slim philosophy, which, used can be challenging. Since lean is based on continuous improvement then there should be a learning environment where mistakes can be learnt and distributed to prevent them from repeating.

Although companies of Porsche and Toyota have often boasted with their success in slim techniques, it is clear that if slim is not integrated into the total management system it is likely to are unsuccessful. Further these improvements can actually get worse the organization's business performance leading to low morale, commitment problems and this can trigger the contrary of what trim is meant to achieve. Moreover since lean is about lowering costs and wastage then this often includes laying off personnel and Porsche discovered that during this time period it was difficult to inspire people of improve production.

Flinchbaugh (2010) areas that "lean is a trip that never ends. There's a tendency for companies to declare "We've done it. We've achieved trim. " The truth is, lean is a continuing, never-ending process. Consider Toyota -- no matter how much better they are than their competition, they continue steadily to find more and more opportunities to boost each and every year. Nevertheless this year 2010 there was proof that the lean principles weren't applied properly and leading to safe practices issues which resulted in the recall of several vehicles. The problems appear to have been around in company's engineering department and forces organizations to remember that lean will not necessarily mean lowering cost but rather eliminating waste material.

"Many sizes must work together and in positioning for problem-solving to be successful. Most problem-solving attempts focus on one dimension or the other. Most company-driven problem-solving initiatives concentrate just on the various tools. We roll out another tool, from Six Sigma to 5 Whys to A3s to 8D, each time expecting another type of result. But, much more likely, if the tool is not providing the planned results, it isn't the fault of the tool. It's more likely that the thinking and manners are not in positioning, or the systems aren't suitable. " Flinchbaugh (2010)

3. From a firm of your choice, investigate the problems, issues and problems that it encounters in terms of the quality of its process, service or product. Critically discuss what quality improvement school of thought, strategy or tool (e. g. ISO 9000, TQM, Six Sigma, SPC, etc. ) may help it to beat it and explain why. Furthermore, comment about how it would make it to enhance its quality strategy and market position in the long term.

Stoneferry is a respected manufacturer and company of creating materials in Yorkshire. It really is strongly committed to energy efficiency and environmental sustainability. Their strategy consists of developing IS393 professional energy-management systems to drive energy efficiency. They would like to become authorized to the typical in their three quarries by the end of 2011. Initial data analysis suggested a variability in the quantity of energy required to process batches and that could change by up to +/-10%. This mentioned that the process is not in 'statistical control'. A problemsolving strategy was necessary to reduce the rejection rate of aggregate materials, as this was the most noticeable issue along the way and it experienced a direct affect on energy use. Energy performance indicators (EPIs) are used by Stoneferry to

demonstrate continuous improvement of the power performance of the herb. Six Sigma could not be used as the timeframe did not allow it.

Stoneferry can research an opportunity to perform Deming's plan, do check and act (PDCA). Tague (2004: 390) shows that PDCA "is a four-step model for carrying out change. In the same way a circle has no end, the PDCA routine should be repeated over and over for constant improvement". In planning (Tague: op cit: 392) areas we must identify an opportunity and plan a change. Doing she contributes will test the change by perhaps conducting a small-scale analysis. The checking period will review the test, examine the results and identify what's learnt. Finally, do something. Did it work? What lessons have been learned? How do this be used to plan new advancements. If it did not work then go through the pattern again. PDCA is a continuous-improvement strategy that could allow Stoneferry to measure and analyse to ascertain the key contributor(s) to a problem and its root cause. The situation could be faulty equipment, contaminants, leaks, etc. An action plan is then carried out to correct the challenge, while verification and standardisation steps are setup to check if the change is successful. Data-analysis tools help to highlight the energy invested in each one of the product finding yourself in the reject bin, Quality has a direct bearing on the energy utilization per tonne of creation. Quality techniques such as TQM may be used. An energy-performance-indicator category table enable you to compare how other plant life in the Stoneferry are doing. Plants with less favourable evaluations should be monitored and their ratio rejects solution to make energy-performance advancements. The company's IS393 qualification should play a vital role in making certain the increased energy performance of the plants is maintained in to the future. The execution of best practice can lead towards sustainability. The focus of improvement programs can be broadened to add and embrace sustainability themes. The various tools and techniques of Lean can be used with other techniques to allow Stoneferry improve performance by focusing on techniques that stretching the prominence on misuse elimination to better energy management and the engagement of employees in advancements.

4. Over recent years, lots of key solutions have become very significant to organisations instead of manage and enhance their functions and products. Four of the approaches are:

continuous imporvement methods such as

Kaizen

Wang (2011, p7) shows that kaizen events create one pillar in slim production. This creates the bottom for every worker in an firm to participate in the process of decision making. It needs a flatter structure as upward communication route are dependence on contribution and decision making. This fosters commitment. From real life examples, kaizen appears to works on small and continuous advancements as it is easy to implement and creates less or no level of resistance. Perhaps as the changes are small, and triggers less upheaval so there may be much more likely to be support for it. This sort of constant improvement process ensures that systems and operations are current continuously rather than transformationally as the company competes in its products and markets. Kaizen emphasises the individual tool rather than capital investments and must be monitored carefully to ensure trust and determination from staff.

Just-in-Time

Just-in-time developing means producing the required items in necessary quantities at the required time. It is a idea of constant improvement where non-value-adding activities (or wastes) are discovered and removed. Many companies today will never be able to survive without it, particular supermarkets and other processing concerns. With this sense JIT is comparable to Kaizen nonetheless it targets inventory management whereas Kaizen can be organization large but on a small scale.

This systems is a fresh thought process process from standard production functions. As materials are shipped as and when they are prepared. JIT benefits organizations from reduced operating costs, better quality, increased flexibility and greater performance. By streamlining the chain's warehouses Tesco was able to open the lateness of their suppliers. These were then able to control their inventory better to allow them to improve sales and profitability.

Total Quality Management (TQM)

Total Quality Management (TQM) is an strategy used companies to achieve organizational brilliance. However, the TQM books suggests merged success stories across the business world. Reviews on the higher rate of failing are noticeable and the very nature of the procedure makes visible improvements difficult to see. This greatly undermines the idea and some authors like (Shin 1998) state that the high inability rates at a rate of 60% to 67% quoted in the literature has made many companies think that TQM hasn't delivered relating to its assurance (Shin, 1998).

Nevertheless, the majority of the analysts (Black colored and Porter, 1996; Flynn and Saladin, 2006) concur that TQM is a useful philosophy and when properly prepared and implemented properly maybe it's fully built-into the business enterprise.

Many TQM implementation models and frameworks have been designed and suggested but none of the models explicitly identify these individual sets of factors and the connections between them in the framework of enhancing the success rate of TQM execution.

Six Sigma

"during the last 15 years roughly, Six Sigma has been ever more recognized as a approach to achieve business process advancements in both creation and, recently, service and transactional companies, (Hayler and Nicholas 2007, p. 5)

"Today, Six-Sigma is either a trend slashing trillions of us dollars from Corporate inefficiency, or it is the most maddening management gimmick yet devised to keep front-line employees too active collecting data to do their jobs. " (USA Today, 21 July 1998)

Since then six-sigma has created an enormous impact however conflicting views are ripe on the idea. At Basic Electric they have gained a reputation for functional excellence based on six-sigma initiatives. Many are stunned at the success of Six-Sigma in GE which has brough increase in sales and share value. The literature however does indeed show some misunderstandings and unclear restrictions between Six-Sigma and other techniques such as TQM and Low fat sigma.

Six-sigma was however created at Motorola but GE remains the real six-sigma revolution while some such as DuPont and GlaxoSmithKline also have followed.

The Six Sigma standard of 3. 4 problems per million opportunities is response to the increasing anticipations of customers and the increased complexity of modern products and processes, (Pyzdek 2004, p. 3). The key success factors differentiating Six-Sigma from TQM are its emphasis on statistical knowledge and dimension; a strenuous and structured training deployment plan; and a project-focused strategy with an individual set of problem solving techniques.

Six-sigma combines the idea of cutting waste products and the knowledge of the statistical procedures of measurement to accomplish excellence in production. Creators like Juran sometimes comment that six-sigma is TQM on steroid, which is difficult to disagree with.

All these methodologies for improvement require commitment from personnel and management to be able to succeed. Each of them require a series of steps being followed to the end. Lean does not however may actually fit the TQM-six sigma family. JIT and TQM work together perfectly. Neither has stated to be always a successor to the other. This is more organised than JIT, but this technique analysis is the same, to remove the waste in the process.

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