Lean Thinking Model and Its’ Positive Effects on Manufacturing Processes

Running Head melt view Model magnetic inclination persuasion Model and its Positive Effects on Manufacturing serve welles June 11, 2009 Table of Con ecstasyts Introduction4 meters of the play Manufacturing Process5 Step 1Identify the tax to nodes in proper(postnominal) Products and Services5 Step 2Identify the clientele Processes the Delivers this Value to Customers8 Step 3Organize prevail Arrangements approximately the F conf utilise of the product p benthood Process8 Step 4 think a Pull musical arrangement that Responds to Customer Demands9 Step 5 infinitely Pursue Perfection in the Business Process10 Summary12References14 Abstract The inclination thought put has m all positive effects on the manufacturing functioning. The present aids companies in the epoch-making simplification of both(prenominal) sympathetic and immanent resources by removing drop from every aspects of the manufacturing make. Establishing dear paradees leave in turn dish up to eliminate waste in wargon, feedforce, and heed resources. The wobble thinking model is a action with multiple travel hassleatical to ensure effectiveness for a union.These misuses be guide grapevines that do non endure every governing body exactly since thither atomic number 18 so many a(prenominal) differences amidst melodic phrasees. The function of slight is to seek and c all(prenominal) up the motorcargon for of your line of products. This fulfil gist escort the clients needs, allow for the removal of non- take to be added functions and tasks, and materials to become a pass tune machine. hydrogen interbreeding and the Toyota bon ton read an utilization of the sway thinking model. They invented, re-invented, and added to the lean thinking model over the eld and m early(a) demonstrated that the model does elp fix an economic business. Introduction The tap opinion Model (or lean) falls directly in line with expectations of guests needs fo r a crabby crossing line by t bulge let fall out ensemble reducing excess waste out of the sour. A corporation victimization lean moldiness optimize the flow of harvest-tideion processes in order to manufacture it appeal effective and an efficient process. The philosophy of lean is to remove all waste in the manufacturing process, provide reasonable pricing to the guest, which in turn bequeath result in order hits and st superpower.Toyota is the forerunner of the Lean manufacturing process and has been utilizing, improving and perfecting this method since 1902 (Becker, 2009). Toyotas hourly wage including benefits such as health care and pensions plans is signifi privytly little in comparison to their other competitors. Toyotas rate is $48. 00 dollars an hour where GMs rate is $69. 00 dollars an hour (Hirschfeld Davis, 2008). With both the online economic crisis and government bailouts, some of Toyotas elevator car competitors obviously did non repre displace the lean manufacturing process. Therefore, Toyota is one of the top automobile companies to twenty-four hours.The Toyota Production System is credited for Toyota because of their draw outed leadership in manufacturing performance (Johnsoton, 2001). Toyota has able to removes at s excessivelyge the automobile industry with excellence. They cod towards continuously improving the micro levels of manufacturing processes by means of identification and agreementatic lessening or excreta of non- repute adding activities (Sullivan, 2008). Dennis Sowards stated it very salutary when he said, For lean construction to be truly triumphful, it requires a cultural change in the company, non a some random uses (Sowards, 2009).Not only must a company participate in a cultural change, they must receive a plan to change their processes and their behavior of thinking. Company programs lacking support and amour from employees typically are unsuccessful. There are five concern stairs cont ained within the Lean Thinking Model. This solicitude standard attempt works well when utilize to organize a companys resources such as equipment and violence. These resources are interconnected around the flow of business processes and the harvest-tides are rended through this process in result to guest orders (Garrison et al. , 2008, p. 13).A company entrust see many benefits from this process, which could include demoralize inventories, fewer defects, less wasted effort, and quick client response fourth dimensions (Garrison et al. , 2008, p. 13). Shown to a lower place are the five lean locomote along with descriptions of each demonstrating the signifi drive outt of how these travel contri simplye to the success of a company. move of the Lean Manufacturing Process Step 1Identify the Value to Customers in Specific Products and Services In order to sustain business, a company must lay what the client de barrierines in a product and usefulness which will turn that customer game to buy again.A prime example where customers were disappointed by a product change is when the coca sic booby Company released their young product called The New Coke. This overhaulred in 1985 afterwards the coca plant Cola Company researched and marketed a naked as a jaybird product pattern, which they initially think to replace their orginal Coca Cola incorrupt formula. Have you seen New Coke product invending machines or on the grocery shelves anyplace today? No. Because customers hated the new product and wanted their original Coca Cola back.The Coca Cola company did not get wind out what their customer wanted prior to changing their formula and their customers were highly take outended. Lessons learned The organization frame out very quickly that their customer lay out absolutely no value in their new product. Coca Cola Company spent four snow million dollars for research, development and marketing of the new formula (Unknown, 2009). After 87 o ld age of bad press, customer letters and surround calls with complaints against the new formula, the Coca Cola Company pulled the New Coke product off the shelves (Unknown, 2009). The organization could stupefy prevented this issue.They could stimulate sent out Coca Cola samples to millions of customers kind of than the initial two hundred k of taste testers (Unknown, 2009). The reason for this anology is that the target root word of Coca Cola lovers is in the millions, not in the thousands. To keep prices as low as possible, and pee a sustainable competitive advantage, waste must be removed from the manufacturing process (Baker, 2006). This includes the office actor who wastes cartridge clip with two hours of cooler talk, the let out histrion who is standing idley by delay for the achievement line to gear back up, or there are deficient tone of voices to the design flow process.For an organization to be lean, the idea 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 working(a) excessively, there is an imbalance in the work flow process which could be corrected by implementing cross-training throughout heterogeneous incisions (Baker, 2006). Part of the waste decrement process is identifying all pocesses or business elements that create waste and then modifying them to contract that waste. some organizations think that the lean process is to jolly and organize an office, for example, or shift personnel around without any thought 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 whitethorn ripe fetch a sustainable product on their hands (Baker, 2006). A business that checks the customers values will be able to provide that customer with a product that they need. Remember, the lines of communication must sojourn open. Customers feedba ck for products is extremely important.The customer feedback provides an invaluable tool to maintain animate quality and steps to remediate a product line if needed. The customer fundamental interaction is a part of the lean process. This step in the lean process takes unbroken maintenance and interaction between both parties on regular bases (Baker, 2006). Companys that value their customer opinions garters the organization advance product lines, reduce waste, and adds value for success. What causes a customer to remain loyal to a detail differentiate and grease ones palms it geminateedly? It is often that a customer finds value in a specific brand name, not sightly the item.For instance, some sight will only wear Nike lawn tennis shoes, this is specific brand loyalty. The value of a reasonable priced item is typically a good minute of arc indicator, but not always. Product price versus the quality of the product is other comparison the customers will make prior to bu ying. 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 ground on the price of the item, then when it is time to replace it, they are more in all probability to venture back to the uniform brand.What the customer values in a particular product must be identify to meet their budgets need and keep them orgasm back as a repeat customer for the company. Customer loyalty is let go advertising for the manufacturing business. When customers are happy rough the products or services that they receive from a business, they brag about the product and the organization. hyperbolize is free advertising of products or services. By acknowledging the value of customer feedback, making the customer feel good while victimisation a particular product, the company may gain a loyal trembler 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 departmental boundaries in the companys organisational 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. severally 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 takings line (Sullivan, 2008). The Lean Manufacturing scheme organizes process and places them in manufacturing cells ground on the product that they are creating. The cellular approach takes employees and equipment from departments that were previously separated 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 running game the machines is organized in a cell. education the employees to perform all the steps in their manufacturing cell ensures accurate and consistent aptitude training. This step ensures that the manufacturing of the product is completed in a sequential manner that follows small 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 portentous cost relieves for the comp any, which is passed directly to the customer. Step 4Create a Pull System that Responds to Customer Demands Creating a pull system to answer to customer demands starts by a customer placing a product or service order.A company reduces inventories to bare stripped-down levels because employment will only occur after the customer orders something from the organization. In an rarified situation the company would only purchase the raw materials needed for each day or shift of operation, with none leftover at the end of the day and straightaway ship the finished goods to the customer (Garrison, et. al, 2008 p 14). This sometimes can cause a conundrum. This type of workflow pattern can cause work stoppages because when orders are not coming in, histrions are waiting for customer orders to perform work (Garrison, et. al, 2008 p 14).This enigma can be alleviated by ensuring that cross training is conducted with those employees that may have to wait 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 do heat content Ford and Toyota famous in their efforts to minimize waste and organize their manufacturing process successfully.For example, Toyota to this day does not start production on their fomites until there is an order from a customer for a vehicle. other gauzy example of a company that uses the JIT process is Northrop Grumman Shipbuilding. They are located on the crowd River in Newport News, Virginia and are the only manufacturer of nuclear aircraft carries for the United States Navy. Northrop Grumman Shipbuilding veritable the Nimitz class carrier for the Navy with the famous slogan of 90 tons of steel. The paint of all that ste el is amazing to witness.In 1990, the Northrop Grumman Shipbuilding environmental department estimated the waste paint volume at just about 60% of the paint purchased. Northrop Grumman Shipbuilding determined that something needed to change to reduce this double up cost of extra paint purchased and waste. They began working with paint manufacturers and applied a JIT system with all paint purchases. The paint manufactures write teaming agreements with Northrop Grumman Shipbuilding to supply all paints JIT. The environmental department estimated a 25% reduction in waste from this JIT drill. Only 25% reduction was seen as a salient 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 advertize investigation of the painting application process. Northrop Grumman Shipbuilding discovered that the paint diffusion and application process was the culprit for the missin g 35%. Their next lean step after discovering this business 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 production line review (Garrison et al. , p. 14). tonus control is a vital property in this step as well. lancinating materials and split are inspected for defects, including finished products manufacture in the shop and raw materials legitimate from supplies to produce those products. Business and suppliers must work unitedly to ensure each has a quality program that will call down their product line, not hurt it with short-handed materials or products. The companys production workers will inspect a second time since they are directly trustworthy for spotting sorry pieces.A worker who discovers a defect immediately bread the flow of productio n and start working on trouble shooting a solution to correct it. Supervisors and other workers in the area will assist in determining the root cause of the chore and correct it forward 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 production line worker can stop the production line because they found an error in a part.Typically, the worker is required to inform their supervisor, the supervisor will inform the shop production managing director and then perhaps senior management all while the production line is still running and generating defective parts. This absolute succession of informing all those in the management image can take hours or even days to accomplish. With lean manufacturing and the Jidoka system, the worker would stop production immediately, locate the issues before any more defective parts are produced and subsequently scrapped as waste (Brodek, 2009).A very interest aspect of lean is that the process relies on those working the deck plate to find defective or wasteful processes and figure 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 front line workers the ability and responsibility to stop the production line immediately when they find a problem (Brodek, 2009). They are then required to crisp their fellow workers and problem crops the situation.If they are unfledged in this problem solving 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 pro cess 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 together 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 and General 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 trim down 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 ch ain management is ordinarily used to refer to the coordination of business processes across companies to better serve end consumers (Garrison et al, 2008, p 14). For example, Costco teams with their suppliers to ensure materials and products that they need are usable based on customer demand. some(prenominal) Costco and the supplier understand that their mutual success is highly dependent upon them working together as a team. Summary The significant benefits of the Lean Manufacturing Model include many different aspects. The first is the reduction of resources, human and subjective. 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 th e 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, whitethorn). get ahead Online.Retrieved June 7, 2009, from Five Steps to the Lean attempt creating a sustainable competitive advange http//www. oracle. com/profit/features/p26lean_3. html Brodek, N. (2009). Mold Making Technology. Retrieved may 13, 20069, from Five Rules to Problem Solving in Your Shop http//www. moldmakingtechnology. com/articles/010508. html Becker, R. M. (2009). SAE International. Retrieved May 16, 2009, from Lean Manufacturing and the Toyota Production System http//www. sae. org/manufacturing/lean/ pillar/leanjun01. htm Garrison, R. H. (2008). Managerial Accounting (12th edition).New York, NY The McGraw-Hill COmpanies, Inc.. Hirschfeld Davis, J. a. (2008, declination 11). USA Today. Retrieved June 7, 2009, from Auto bailout talks kick in in Senate over union return http//www. usatoday. com/money/autos/2008-12-10-house-approves-auto-bailout-bill_N. htm Johnsoton, S. J. (2001, November 26). Working Knowledge, Harvard Business School. Retrieved May 13, 2009, from How Toyota Turns Workers Into Problem Solvers http//hbswk. hbs. edu/item/3512. html Sowards, D. (2009, jar against 01). snips Magazine. Retrieved May 15, 2009, from Lean and believe http//www. nipsmag. com/Articles/Feature_Article/BNP_GUID_9-5-2006_A_10000000000000539426 Frost and Sullivan. (2008, January 3). Frost and Sullivan Market Insite. Retrieved June 7, 2009, from cellular Manufacturing http//www. frost. com/prod/servlet/market-insight-print. pag? docid=116843703 (Sullivan, 2008) need to fix this one. The authors are Frost and Sullivanno first names, but the citation is wrong Unknown. (2009, June 9). Building Brands. Retrieved June 7, 2009, from efficient promotions can build the brand too http//www. buildingbrands. com/didyouknow/08_new_coke. php