Lean Thinking Model and Its’ Positive Effects on Manufacturing Processes

Running Head sparse Thinking impersonate Lean Thinking Model and its Positive Effects on Manufacturing Processes June 11, 2009 Table of circumscribe Introduction4 tints of the Lean Manufacturing Process5 stair 1Identify the set to Customers in Specific Products and Services5 graduation 2Identify the Business Processes the Delivers this Value to Customers8 Step 3Organize Work Arrangements approximately the Flow of the Business Process8 Step 4 take a shit a Pull transcription that Responds to Customer Demands9 Step 5Continuously Pursue saint in the Business Process10 sum-up12References14 hoist The tip off thinking case has many positive effects on the manufacturing military operation. The model aids companies in the signifi goatt decrement of both homosexual and natural resources by removing scratch off from all aspects of the manufacturing move. Establishing sound lickes pull up stakes in turn help to eliminate take in harvestingion, workforce, and centering re sources. The ladder thinking model is a process with multiple go tortuous to ensure effectiveness for a fraternity.These steps atomic number 18 guidelines that do non fit every organization exactly since there atomic number 18 so many differences between tradinges. The function of ladder is to seek and find the shelter of your business. This process go forth determine the nodes needs, allow for the remotion of non- appreciate added functions and tasks, and materials to become a contention business machine. Henry track and the Toyota confederacy depict an case of the number thinking model. They invented, re-invented, and added to the run thinking model over the years and earn demonstrated that the model does elp create an good business. Introduction The Lean Thinking Model (or lean) falls directly in line with expectations of customers needs for a particular intersection point line by totally reducing excess barbaric protrude of the process. A order using lea n essentialiness optimize the flow of cropion processes in order to make it cost effective and an cost-efficient process. The ism of lean is to remove all waste in the manufacturing process, provide reasonable set to the customer, which in turn leave result in caller gain and stability.Toyota is the forerunner of the Lean manufacturing process and has been utilizing, improving and perfecting this method since 1902 (Becker, 2009). Toyotas periodical wage including benefits such as health c be and pensions plans is significantly slight in simile to their otherwise competitors. Toyotas rate is $48. 00 dollars an hour where GMs rate is $69. 00 dollars an hour (Hirschfeld Davis, 2008). With both the current economic crisis and political science bail outs, some of Toyotas automobile competitors obviously did non follow the lean manufacturing process. Therefore, Toyota is one of the top automobile companies today.The Toyota Production System is credited for Toyota because o f their sustain leadership in manufacturing performance (Johnsoton, 2001). Toyota has adapted to alters within the automobile effort with excellence. They drive towards continuously improving the micro levels of manufacturing processes through identification and taxonomic lessening or elimination of non-value adding activities (Sullivan, 2008). Dennis Sowards stated it very rise up when he said, For lean construction to be truly masteryful, it requires a heathenish switch over in the partnership, not a few random uses (Sowards, 2009).Not only(prenominal) must a company participate in a cultural change, they must develop a plan to change their processes and their way of thinking. bon ton programs lacking support and participation from employees typically argon unsuccessful. There are five management steps contained within the Lean Thinking Model. This management step approach works well when utilise to organize a companys resources such as equipment and personnel. These resources are incorporated nearly the flow of business processes and the fruits are pul take through this process in resolution to customer orders (Garrison et al. , 2008, p. 13).A company volition see many benefits from this process, which could allow lower inventories, fewer defects, less wasted effort, and quicker customer receipt cadences (Garrison et al. , 2008, p. 13). Shown below are the five lean steps on with descriptions of from each one demonstrating the significant of how these steps contri howevere to the success of a company. stairs of the Lean Manufacturing Process Step 1Identify the Value to Customers in Specific Products and Services In order to sustain business, a company must identify what the customer determine in a product and service which will bring that customer back to buy again.A prime example where customers were disappointed by a product change is when the Coca pinhead Company released their parvenu product called The New turn. This occurred in 1985 after the Coca Cola Company researched and marketed a novel product reflection, which they signly int final stageed to replace their orginal Coca Cola continent formula. Have you seen New Coke product invending machines or on the market place shelves anywhere today? No. Because customers hated the unuse product and wanted their original Coca Cola back.The Coca Cola company did not find out what their customer wanted prior to changing their formula and their customers were highly offended. Lessons learned The organization found out very quick that their customer found absolutely no value in their new product. Coca Cola Company spent four hundred million dollars for research, development and marketing of the new formula (Unknown, 2009). After 87 years of bad press, customer letters and phone calls with complaints against the new formula, the Coca Cola Company pulled the New Coke product off the shelves (Unknown, 2009). The organization could overhear prevented this issue.They could have sent out Coca Cola samples to millions of customers rather than the initial two hundred thousand of taste testers (Unknown, 2009). The reason for this anology is that the target base of Coca Cola lovers is in the millions, not in the thousands. To keep prices as low as possible, and create a sustainable competitive advantage, waste must be removed from the manufacturing process (Baker, 2006). This includes the office worker who wastes while with two hours of cooler talk, the keep going worker who is standing idley by delay for the business line to gear back up, or there are missing steps to the design flow process.For an organization to be lean, the fancy must be implemented from top down, not from the bottom up. It must include support from all levels. When individuals are standing around and others are operative excessively, there is an imbalance in the work flow process which could be corrected by implementing cross-training throughout various incis ions (Baker, 2006). Part of the waste reduction process is identifying all pocesses or business cistrons that create waste and then modifying them to reduce that waste.Most organizations think that the lean process is to sluttish and organize an office, for example, or shift personnel around without any popular opinion to reduce non-value added functions. By pulling out those steps that do not add value from the customers point of view and by removing waste, a company may just have a sustainable product on their hands (Baker, 2006). A business that understands the customers values will be able to provide that customer with a product that they need. Remember, the lines of conference must remain open. Customers feedback for products is extremely important.The customer feedback provides an valuable tool to maintain existing quality and steps to improve a product line if needed. The customer inter save is a part of the lean process. This step in the lean process takes constant ma intenance and interaction between both parties on regular bases (Baker, 2006). Companys that value their customer opinions helps the organization improve product lines, reduce waste, and adds value for success. What causes a customer to remain loyal to a particular brand and obtain it repeatedly? It is often that a customer finds value in a specific brand name, not just the item.For instance, some people will only wear Nike tennis shoes, this is specific brand loyalty. The value of a reasonable priced item is typically a good second indicator, save not always. Product price versus the quality of the product is another comparison the customers will make prior to buying. It has been my personnel experience that a cheaper product of lesser quality will often need to replaced because it worn out too soon. If the quality of the product lasts as long as the customer feels it should base on the price of the item, then when it is time to replace it, they are more likely to venture back to the same brand.What the customer values in a particular product must be set to meet their budgets need and keep them coming back as a repeat customer for the company. Customer loyalty is free advertising for the manufacturer. When customers are happy about the products or services that they receive from a business, they burn out about the product and the organization. Bragging is free advertising of products or services. By acknowledging the value of customer feedback, making the customer feel good eon using a particular product, the company may gain a loyal friend for life.Step 2Identify the Business Processes the Delivers this Value to Customers After a business identifies what products and services the customer wants, needs and values, their business processes that deliver these products and services must be identified as well (Garrison, et. al, 2008, p 14). The next step is to lean out those processes to make them more efficient. During this step of the lean process, there are no divisional boundaries in the companys organizational chart when determining what business process will deliver the identified value to the customer (Garrison, et. l, 2008, p 14). This element removes waste from both manufacturing and human resources. This ensures effective processes. Each business department has the opportunity to be lean. Step 3Organize Work Arrangements around the Flow of the Business Process Effective layout for business flow is essentional to an efficient issue line (Sullivan, 2008). The Lean Manufacturing frame organizes process and places them in manufacturing cells found on the product that they are creating. The cellular approach takes employees and equipment from departments that were previously illogical from one another and places them side-by-side in a work space called a cell (Garrison, et. al, 2008 p 14). Every aspect from the equipment process line to the employee lead the machines is organized in a cell. Training the employees to perfor m all the steps in their manufacturing cell ensures accurate and consistent skill training. This step ensures that the manufacturing of the product is completed in a sequential manner that follows detailed process steps.By applying this step, time reduction for an employee in the overall process will take place. For example, the employee would no longer have to run clear crosswise the two-mile plant to obtain the nut for the bolt that was produced in their cell. The bolts and nuts would be in the same cell since it is part of the new process cell. This is a significant cost savings for the company, which is passed directly to the customer. Step 4Create a Pull System that Responds to Customer Demands Creating a pull system to respond to customer demands starts by a customer placing a product or service order.A company reduces inventories to bare minimum levels because intersection will only occur after the customer orders something from the organization. In an specimen situation th e company would only purchase the raw materials needed for each day or shift of operation, with none left at the end of the day and now ship the finished goods to the customer (Garrison, et. al, 2008 p 14). This sometimes can cause a line. This type of workflow pattern can cause work stoppages because when orders are not coming in, workers are postponement for customer orders to perform work (Garrison, et. al, 2008 p 14).This problem can be alleviated by ensuring that cross training is conducted with those employees that may have to appear for orders. Just-in-Time (JIT) is another example of a pull system and is used at many large manufacturing companies such as Northrop Grumman, Ford and Toyota. When the JIT System is applied to a manufacturing process, materials are purchased for what is needed, when they are needed, and the quantities produced are based specifically on what customers order. The JIT system made Henry Ford and Toyota celebrated in their efforts to pick at wast e and organize their manufacturing process successfully.For example, Toyota to this day does not start yield on their vehicles until there is an order from a customer for a vehicle. some other excellent example of a company that uses the JIT process is Northrop Grumman Shipbuilding. They are dictated on the James River in Newport News, Virginia and are the only manufacturer of atomic aircraft carries for the United States Navy. Northrop Grumman Shipbuilding developed the Nimitz class carrier for the Navy with the famous slogan of 90 tons of steel. The caying of all that steel is terrible to witness.In 1990, the Northrop Grumman Shipbuilding environmental department estimated the waste paint sight at nearly 60% of the paint purchased. Northrop Grumman Shipbuilding decided that something needed to change to reduce this double cost of extra paint purchased and waste. They began operative with paint manufacturers and applied a JIT system with all paint purchases. The paint manufa ctures signed teaming agreements with Northrop Grumman Shipbuilding to supply all paints JIT. The environmental department estimated a 25% reduction in waste from this JIT application. Only 25% reduction was seen as a great feat, but it was also disturbing.The environmental department with Northrop Grumman Shipbuilding was concerned that there was not a 60% reduction. This led the company to further investigation of the painting application process. Northrop Grumman Shipbuilding discovered that the paint distribution and application process was the culprit for the missing 35%. Their next lean step after discovering this problem was to eliminate it and they have since created processes to do just that. Step 5Continuously Pursue Perfection in the Business Process A company must continuously review all aspects of their business in order for it to improve in the pursuit of perfection.This is not just payoff line review (Garrison et al. , p. 14). part control is a vital attribute in t his step as well. Raw materials and part are inspected for defects, including finished products manufactured in the shop and raw materials received from supplies to produce those products. Business and suppliers must work in concert to ensure each has a quality program that will kindle their product line, not hurt it with inadequate materials or products. The companys production workers will inspect a second time since they are directly responsible for spotting unfit pieces.A worker who discovers a defect immediately stops the flow of production and start working on trouble shooting a solution to correct it. Supervisors and other workers in the area will assist in determining the bow cause of the problem and correct it before any further defective units are produced (Garrison et al. , p. 14). This way of thinking allows the company to ensure quick problem identification and solutions in their business process. It is not a common philosophy in manufacturing processes where the p roduction line worker can stop the production line because they found an error in a part.Typically, the worker is needful to inform their supervisor, the supervisor will inform the shop production coach-and-four and then perhaps senior management all while the production line is still running and generating defective parts. This entire succession of communicate all those in the management range can take hours or even long time to accomplish. With lean manufacturing and the Jidoka system, the worker would stop production immediately, descend the issues before any more defective parts are produced and afterward scrapped as waste (Brodek, 2009).A very interesting aspect of lean is that the process relies on those working the deck plate to find defective or wasteful processes and solve the problem. Traditionally, an individual would go up the chain of management and those in upper management would make the corrective action decision. The Jidoka system is a process established by the Japanese that provides reckon line workers the ability and responsibility to stop the production line immediately when they find a problem (Brodek, 2009). They are then required to festive their fellow workers and problem solves the situation.If they are inexperienced in this problem answer process, other works or supervision may make suggestions for correction, but not before the individual that stopped the process attempts to solve it. This forces the new employee to acquire learned problem solving skills, which is invaluable in a manufacturing process line. Permanent and perfect solutions are expected result of the Jidoka system. Employees must understand that the Band-Aid approach is not acceptable in correcting company production or process problems.The entire company must pull unitedly and problem solve, because by using the lean process, repeat defective parts are not acceptable. In 1926, Henry Ford could manufacture a car in four days and at that same time, Toyota an d usual Motors needed ten weeks to produce just one vehicle. Henry Fords Jidoka system vehicle manufacturing process is a great example of how reducing waste worked for Ford. Toyota studied the Ford process and applied lean manufacturing to their processes and reduced their vehicle manufacturing process from ten weeks to just two days (Brodek, 2009).That is impressive for any company. Another Application for the Lean Thinking Model The lean thinking model can also be used to improve the business processes that link companies together. The term supply chain management is commonly used to refer to the coordination of business processes across companies to better act end consumers (Garrison et al, 2008, p 14). For example, Costco teams with their suppliers to ensure materials and products that they need are available based on customer demand.Both Costco and the supplier understand that their mutual success is highly dependent upon them working together as a team. Summary The signific ant benefits of the Lean Manufacturing Model include many different aspects. The starting line is the reduction of resources, human and natural. By removing waste from work scopes, production lines and management, the company will save money. Another significant benefit is the reduction of time for an employee and a given product on the production line will result in additional cost savings.By leaning out an organizations processes, human resources, and materials in the production process, this elimination of non-value added steps would add the benefit of saving the company time and money. Other examples of the reduction in resources used include electricity, natural resources (metal, gas, electricity, and fabric) and personnel. Truly honing in on what the customer wants, needs and values will help create a process that defines those values. This is a key function of lean manufacturing. References Baker, W. H. (2006, May). Profit Online.Retrieved June 7, 2009, from atomic number 2 3 Steps to the Lean Enterprise creating a sustainable competitive advange http//www. oracle. com/ increase/features/p26lean_3. hypertext markup language Brodek, N. (2009). Mold Making Technology. 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