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Cost-Reduction Mechanism: Lean Manufacturing

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Lean manufacturing is approached as a cost reduction mechanism. Lean is the pursuit of perfection via a systematic approach to identify and minimize waste through continuous improvement of the value stream; enabling the product or information to flow based on a value determined by the customer. Lean thinking targets to eliminate activities that do not add value (NAV) and increase activities that add value (AV); modify the work flow that are not balanced and orchestrate work overload for the team members and the processes as well. Shigeo Shingo expert in manufacturing illustrated that the most dangerous kind of wastes is the waste we do not recognize. For that truth waste should be eradicated by term of value-based planning to avoid any out …show more content…

The planning staff should take into accounts the main mission of green philosophy is to maximize customer’s value and minimize waste as much as they can. According to Wikipedia “Lean is the set of ‘tools’ that assist in the identification and steady elimination of waste (muda), the improvement of quality, and production time and cost reduction. The Japanese terms from Toyota are quite strongly represented in ‘Lean.’ To solve the problem of waste, Lean Manufacturing has several ‘tools’ at its disposal. These include continuous process improvement (kaizen), the ‘5 Whys’ and mistake-proofing (poka-yoke). In this way it can be seen as taking a very similar approach to other improvement methodologies.” The House of Lean is a descriptive metaphor in graphic format that will assist you in understanding how all these aspects work together to describe the mature Lean Manufacturing system. Below figure shows a “House of Lean,” which was developed for use with a specific client based on their individual needs. This is a good tool that gives a graphic description of your Lean initiative to all …show more content…

The design of supply chain implementing the lean system approach is very significant to all functional areas across the organization. Marketing relies on lean systems to deliver products and provide services in timely manner at competitive prices. Human resources relies on lean approach to increase team work and productivity by rewarding employees and train them in order to operate successfully in lean system (Krajewski, Ritzman, & Malhotra). Finance and accounts have been transformed into high-performing customer-focused organizations. Improving workflow lean system provides an operating methodology to enhance processes excellence and continuously improve results; by spotlighting areas that need improvement, lean system lead to a continuous improvement in quality and productivity. Lean manufacturing has been adopted as a potential solution for many organizations, particularly automotive manufacturing industries in Japan. Since Lean and just in time (JIT) was first introduced, implementation has been achieved by many companies such as Ford, General Electric, General Motors, IBM, Honeywell, Mercury Marines, Motorola, Eaton, Hewlett-Packard and many more. Lean manufacturing is a methodology which integrates the tools like Kanban, Kaizan, Poke-yoke, value stream mapping (VSM), etc. some of the Lean benefits implementation has been highly noticed in Auto Industry, lean

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