This includes using less human effort, less manufacturing space, and less investment tools to develop a new product. Lean Manufacturing Pros Lean manufacturing aims to eliminate most if not all forms of waste. Many experts claim that by implementing lean manufacturing techniques and strategies reduce the manufacturing time. As manufacturing lead time is lowered, it is the hope that the operational costs incurred from the use of energy will also be significantly reduced. Lean manufacturing helps companies maintain and increase their profits and earning.
Another tool and technique to achieve organizational objectives is the lean accounting method also known as lean management. “Lean management is a system derived from Toyota’s lean manufacturing methodology, which systematically aims to reduce waste, improve workflows and eliminate non-value-adding activities. This ultimately creates more value for customers, with fewer resources” (CGMA, n.d.). Lean management techniques and lean production has similar benefits. So, activities that is unsuccessful in adding value will be deemed as a waste, including wasted effort.
Article 1: Operations strategy: a firm boundary-based perspective Operations strategy is concerned less with individual processes and more with the total transformation process that is the whole business. It is concerned with how the competitive environment is changing and what the operation has to do in order to meet current and future challenges. It is also concerned with the long-term development of its operations resources and processes so that they can provide the basis for a sustainable advantage (Slack & Lewis, 2011). If a business does not fully appreciate the strategic impact that effective operations and process management can have it is missing an opportunity. Perhaps more significantly, many of the businesses that seem to be
Toyota 's financial and market success is a result of lean manufacturing practices. Ohno 's ideas are applied to many companies in the world under the names Lean Enterprise, Just in Time (JIT) or World Class Manufacturing. In recent years, different methodologies have been developed based on the fundamental process analysis, productivity, statistical process control and problem-solving techniques. Total quality management, six sigma, process management and lean six sigma are some of these methodologies and also lean manufacturing can work in harmony with these methodologies. In the past, the term of “Made in Japan" refers to the cheap and bad quality goods.
Now a day 's global market in the world and all companies are looking up making new improvements that drive bottom line results. In that process all organizations and companies are turning to process improvement methodologies such as Lean six sigma (LSS). Continual improvement, as one of the objectives of a quality management system is achieved by the improvement of all processes and activities at a particular stage of the production cycle. Continual process improvement is also the only way how to survive and succeed among competitors. The management of the company will always be looking for opportunities that will enhance the effectiveness of the company’s processes.
Literature Review Lean manufacturing is a process that was first implemented by the Toyota Company following the defeat of Japan in World War Two. Wanting to enter the car market, they needed to find a way to adequately compete with US car manufacturers in pricing and production without having as established a company. To do this, lean manufacturing was created, allowing them to enter the atmosphere competitively (Paul, 2014). The concept behind lean manufacturing is quite simple: its singular goal being to cut down waste. Waste is defined as anything which doesn’t add value to the product in the customer’s eyes.
However, in 2004, the senior managers at Wipro Technologies came to the opinion that the marginal benefits which were accruing for Wipro from the previous quality initiatives have been exhausted. Effort was made to search for a strategy providing Operations-based advantage and hence providing a barrier to their competitors attempting to imitate them. In mid 2004, in order to translate the ideas present on lean production from manufacturing to software services, Wipro Technologies launched a pilot program. They formed a 10 member core team spending several months visiting different organizations practicing lean manufacturing, read the literature available for lean implementation and also discussed ideas for implementation. Ten projects were selected for pilot implementation.
Especially companies with audacious goals have to hit the market at one point with force (Mougayar, 2013), to “get the rocket into space” (Andreessen, 2012). Lean Startup favors all small steps, incremental innovation and continuous improvements (Ries, The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, 2011). But as one won’t launch a plane until perfectly crafted - some products need to be presented as a whole to convince customers and assert on the market (see inferior products). LSU in Web 2.0 startups If one considers to be a startup manufacturer, Lean Startup makes little sense. The LSU approach stems its advantages from being cheap in failure and iteration.