Lean manufacturing evolved out of leanthinking which means removal of waste. Waste specifically means any activitywhich absorbs resources but creates novalue. Lean manufacturing is a systematicapproach for identifying and eliminatingwaste in operations through continuousimprovement.
Pre 20th century 20th century Ford starts the ball rolling Toyota develops lean thinking
“ A management philosophy which seeks to integrate all organizational functions ( marketing, finance, design, engineering, production, customer service….) to focus on meeting customer needs and organizational objectives.”
Just-in-time(JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated Carrying costs.
KAIZEN is Japanese word for improvement. Kaizen was first implemented in several Japanese businesses during the countrys recovery after World War II, including Toyota, and has since spread to businesses throughout the world.
The term six sigma comes from the field of statistics. Six Sigma approach has broadened to include such things as programme and project management tools and rules all of which are complementary to lean manufacturing.
Kanban means "sign" in Japanese, and is a visualreactive re-order point control system.Another lean manufacturing tool, which is focusedon the objective of zero breakdowns.There are two types of manufacturing system simulation: computer and manual. This approachenables operators to "buy-in" to the design ofthe manufacturing system.
Over productionTransportationWaitingInventoryMotionOrder processingDefects
CASE STUDYIn 1986 Motorola invented Six Sigma, a quality and businessimprovement methodology that is revolutionizingindustry.Two decades and two Malcolm Baldridge Awardslater, Motorola is still finding new ways to reinvent itself usingthis techniques. Dan Tegel, Global Director, Digital Six Sigma BusinessImprovement Motorola
In 1980s US economy was facingdowntrend as companies like Motorolawere experiencing many problems. Like increasing complaints aboutwarranty claims for defective products. Motorola sold its TV division Quasarto Matsushita, which is a Japaneseelectronic company.
They found that Japanese management focused onpreventing errors at the source thereforedramatically reduces the defects and the cost forrectifying them. In 1987 Galvin launched a long term qualityprogram called “The Six Sigma Quality Program”.•By 1992, Motorola aimed to achieve the overallquality level of 5.4 defects per million, a little lessthan Six Sigma which is 3.4 defects per million
Upper management at the time generally thoughtincreasing quality meant increasing cost. The use ofSix Sigma proved the opposite was true. One ofMotorola’s most significant contributions was tochange the discussion of quality from the one wherequality levels were measured in percentages (partsper hundred) to a discussion of parts per million.During inspiration from Motorola, many othercorporates across the world began to adopt the SixSigma methodology and the concept began to beloosely described as “ The Second IndustrialRevolution.”