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Lean Manufacturing Business Analysis

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The main target of production business always to produce goods with low cost and high profits. But making high profits low cost very big problems to almost all the business in the world. So, lot of them were focusing to solving this problem. Finally, lean concept has been made as influence of this. Lean Manufacturing was coined in 1991 by James P. Womack, Daniel T. Jones and Daniel Roos from The Massachussets Institute of Technology in their book The Machine That Changed the World, in which they compared Japanese and American companies. The most efficient turned Toyota Motor Company with its Toyota Production System (Dekier, 2012). According to Womack Jones and Roos the term lean represents a system that utilizers fewer inputs in order to create …show more content…

These elements represent the variety of aspects needed to maintain a better manufacturing system. Manufacturing flow represent the design standards and physical changes. Organization represent the people’s functions and communications. Process control is improving the process by monitoring, controlling stabilizing and pursing. Metrics addresses to visible results based performance measures, target improvement and team rewards. Logistics provide definition for operating rules and mechanism for planning and controlling the flow of material (G. Ananda, R …show more content…

And also, it is full deployment of these elements that will propel a company on a path toward becoming world class manufacturer. The core idea of lean manufacturing is actually eliminating waste from the process. According to the lean concept waste elimination is one of the most effective ways to increase the profitability of any organization (Mc Bride. D,2003). Seven wastages originated in Japan. Where it is commonly known as Muda. To eliminate waste, it is important to understand exactly what waste is and where it exists. So these seven wastages can classified in to seven categories according to lean concept. Over production means manufacturing the products before it is actually required. Over production is high cost for the manufacturing plant because it disturbs the smooth flow of productivity. The concept is to schedule and produce only what can be immediately shipped and improve machine changeover capability (Mc Bride. D,2003). Waste of waiting occurs when goods are not being proceed smoothly. This is usually happening because of the poor material flow. Goldratt theory of constraints has stared many times that one hour lost in a bottleneck process in one hour lost to the entire factory’s output, which can never be

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