This is a short, approximately three pages, analysis of a company's current process and the benefits of implementing Lean Manufacturing practices. This report is the product of an academic assignment

1. ***The following is a work sample based on an academic assignment. The deliverables of the
assignments were to analyze a particular process and make recommendations for improved
efficiency***
To: Manuel Factor, CEO Manny Production Incorporated
From: DeAndria Hardy
Subject: Lean Manufacturing Research
Date: 13 February 2013
Reviewer: Adrienne Long
Purpose
The intent of this research is to provide Mr. Manuel Factor, CEO of Manny Production
Incorporated, with all necessary and relevant information of Lean Manufacturing practices. This
information is designed to aid Mr. Factor in deciding whether to institute such practices into his
vehicle manufacturing plant.
The concept of Lean Manufacturing has been around for quite some time, approximately 100
years. This idea in the world of manufacturing gained popularity and acclaim in the early 1990s
as companies like Toyota, through superiority of process, saw improvements in production
output without affecting the bottom-line. The basic principles of Lean Manufacturing involve
“trimming the fat” in production to increase output without taxing resources. As a result
companies are making their production sectors more efficient.
Lean Manufacturing is defined as “a business model and collection of tactical methods that
emphasize eliminating non-value added activities while delivering quality products on time at
least cost with greater efficiency” (EPA). In simple terms, Lean Manufacturing is making the
most from the least.
Table 1. Production Comparison
Run 1
Production Desired
Production Achieved
30
11
Run 2
Production Desired
Production Achieved
30
22
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2. ***The following is a work sample based on an academic assignment. The deliverables of the
assignments were to analyze a particular process and make recommendations for improved
efficiency***
Cycle Time
Takt+1.6
Cycle Time
Takt -1.7
As part of a simulation, I have witnessed how the proper application of Lean principles, in an
effort to streamline production, can be incredibly beneficial to a company’s output. The
simulation involved the utilization of Engineering Technology Management (ETM) students to
represent various sectors within a vehicle manufacturer. The group’s goal was to meet a
customer demand of 30 completed vehicles in five minutes with a request from the customer
coming every ten seconds. With only a few minor changes to sector location (Figure 1, Figure 2)
elimination of superfluous job functions, and 5S-ing the workspace the scenarios showed a
doubling of output (Table 1).
Figure 1.
Figure 2.
It is my opinion that if the same principles are expanded and used at Manny Production
Incorporated similar results could be achieved.
Background
Lean principles are not an infant concept. The idea of streamlining a production processes is 100
years old, first appearing in 1913 from the mind of American car manufacturer Henry Ford.
Within his Michigan factor, that produced the Model T, Ford saw the potential for increased
efficiency and a higher volume of product output. To achieve this Ford rearranged his factory so
that instead of having similar processes spread throughout the work floor, these processes were
aligned sequentially. This drastically reduced the time lapse between processes and increased his
production rate per Model T. Unfortunately, his ideas were innovative but not enough. While he
was able to increase his production rate, the Model T lost steam due to its inability to provide
variety to consumers. However Ford did provide the groundwork for other American
manufactures to utilize the process of streamlining production and go a step further and increase
production variety. Despite these improvements in American manufacturing processes, it was not
until approximately 1945 in Japan that the concept of Lean would receive another jolt of vitality.
Post WWII, Kiichiro Toyoda examined the American concept and saw the potential for
additional improvements to the manufacturing process. Toyoda’s ideas involved not only
streamlining but adding variety without negating the streamline. His innovations eventually lead
to the creation of the Toyota Production System (Table 2).
Table 2. Toyota Production System, Abbreviated Explanation
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3. ***The following is a work sample based on an academic assignment. The deliverables of the
assignments were to analyze a particular process and make recommendations for improved
efficiency***
1
2
3
4
5
6
Continuous Improvement
Respect for People/Personnel
Focus on Long-Term Philosophy
Right process, Right Results
Company Value Increased Through Personnel Development
Focus on Solving Root Problems
Unlike Ford, Toyoda focused on streamlining the process as a whole unit and not merely
streamlining individual processes. He also instituted the idea of continuous improvements
throughout the process to reduce waste and increase overall efficiency. At present, continually
building on Toyoda’s legacy, Toyota is the leader in Lean Principles application utilizing his
ideas to become the leading vehicle manufacturer worldwide.
Analysis Method
To accomplish the desired research for Mr. Factor a combination of resources were utilized. A
portion of the research was completed through the aid of internet, both government and
commercial, sites. Also a combination of the ETM textbook and other printed sources were used
to provide the most complete and accurate database.
Analysis and Results
Part 1: Terms
Table 3. Lean Manufacturing Terms
Term
5S
Just-in-Time
Kanban
Pull flow
Takt
Kaizen
Muda
Jidoka
Poke-Yoke
Definition
Derived from 5 Japanese principles (seiri,
seiton, seiso, seiketsu, shitsuke) that provide
guideline for clean and orderly workspace
Production strategy that involves reducing inprocess inventory
Signal to work
Schedule of inventory pulls
Set pace/time for production of each new unit
Continuous improvements
Waste
Principle of Correction and Elimination of Unit
Defects
Error Proofing Personnel Through Training to
Eliminate Mistakes
Part 2: Company Profile- Nike, Inc.
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4. ***The following is a work sample based on an academic assignment. The deliverables of the
assignments were to analyze a particular process and make recommendations for improved
efficiency***
During the 2005/2006 fiscal year Nike, Inc. made the decision to switch their current
manufacturing practices to those that included Lean principles. This decision to switch came as a
result of previous years in which Nike, Inc. was in the midst of very negative press associated
with it labor practices. The biggest issue being that many of the laborers were unskilled and
underpaid, essentially Nike, Inc was accused of utilizing “sweatshop” labor to produce its goods.
In an effort to alleviate this stigma and increase the quality of worker within the company Nike,
Inc devised a conjoined plan which involved integrating Lean practices into a new Human
Resource Management Program.
The new Human Resources Management (HRM) Program involved increased training of
personnel both in the technical aspects of their jobs and how to apply practices within their
sectors to reduce waste. The HRM program was a ten module program based on Toyota’s
Human Systems Model and involved a four year projection from 2007 to 2011 to fully
implement the new Lean program strategies.
As a result of instituting the new Lean centered HRM programs Nike, Inc has seen an increase in
work competency and employment satisfaction. In addition, since the inception of the new
practices in 2007 Nike, Inc has seen as steady increase both in annual revenue and annual gross
profit and only the first two years saw decrease in operation overhead expenses.
Conclusion
Based on the research, it is my recommendation that Mr. Factor proceed with instituting Lean
practices into his production. The history of Lean and its positive effects on numerous companies
lends to reason that the same positive effects will occur within Manny Production, Inc. The next
step in the process should be to create training protocols so that all workers get familiarized with
the new practices. The major potential risk to the switch from the current production system to
Lean will be the resistance to change. This however can be mitigated with proper training of
personnel and explanation that Leaning production and jobs will only improve the company’s
overall economic standing and not severely impact employment status.
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5. ***The following is a work sample based on an academic assignment. The deliverables of the
assignments were to analyze a particular process and make recommendations for improved
efficiency***
Works Cited
Ellis, Tim. ETM Report Template and Guidelines. Web. 27 Jan 2013.
<https://blackboard.uscupstate.edu>
EPA .Lean Manufacturing and the Environment. Web. 25 Jan 2013 <www.epa.gov/lean/
Environment>
Frievalds, A., Liker, J., & Niebel, B. Engineering Work Analysis. N.p.: McGraw Hill, 2013. Print
Lean Enterprise Institute. A Brief History of Lean. Web. 25 Jan 2013. <www.lean.org/Whats
Lean/History.cfm>
Nike, Inc. 3.9.1 Our Approach. Web. 25 Jan 2013 <http://www.nikebiz.com/crreport/content/
workers-and-factories/3-9-1-our-approach.php?cat=hr>
Security and Exchanges Commission. Form 10-K for Nike, Inc. Web. 28 Jan 2013.
< http://www.sec.gov/Archives/edgar/data/320187/000119312512312306/
d341264d10k.htm>
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