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Business Lesson (Lean Production)

learn more about lean production in business studies

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fh.kassih
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19 views21 pages

Business Lesson (Lean Production)

learn more about lean production in business studies

Uploaded by

fh.kassih
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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LEAN

PRODUCTION
Objectives:
- Defi ne lean production, kaizen, just-in-time
and cell production.
- Understand how each method contributes to
reducing waste.
- Provide examples on companies that use lean
production.
- Recognize the advantages and disadvantages
of lean production.
Purpose, Focus and Types of
Lean Production
Lean Production: a number of interrelated
concepts can be used to help create value.
It involves:
Pay attention to the examples in
the video.
TIMWOOD
P.7
Methods of Lean Production

Cell
Just-in-Time
Production
Kaizen
How does it work?
DID YOU KNOW!!
◦Many companies have adopted the kaizen
concept. Most notably, Toyota employs the kaizen
meaning and philosophy within its organization.
It esteems kaizen as one of
its core values. To improve
its production system,
Toyota encourages and
empowers all employees to
identify areas of potential
improvement and create
Just in
Time
(JIT)
Example of JIT
◦ Famous for its JIT inventory system, Toyota Motor Corporation orders parts only
when it receives new car orders. Although the company installed this method in
the 1970s, it took 20 years to perfect it.
◦ Sadly, Toyota's JIT inventory system nearly caused the company to come to a halt
in February 1997, after a fire at Japanese-owned automotive parts supplier Aisin
decimated its capacity to produce P-valves for Toyota's vehicles. Because Aisin is
the sole supplier of this part, its weeks-long shutdown caused Toyota to halt
production for several days.
◦ This caused a ripple effect, where other Toyota parts suppliers likewise had to
temporarily shut down because the automaker had no need for their parts during
that time period. Consequently, this fire cost Toyota 160 billion yen in revenue.
Remember COVID?
◦At the start of the COVID-19 pandemic and its
ripple effect on the economy and supply chain,
things like paper surgical masks, toilet paper,
and hand sanitizer experienced disruption.
This was because inputs from overseas
factories and warehouses could not be
delivered in time to meet the surge in demand
caused by the pandemic.
Cell Production
What difference does it make?
Example on Cell Production

◦Toyota is a leader in cellular


manufacturing, as part of its Toyota
Production System (TPS). This system
organizes assembly lines into cells, each
consisting of a team of workers and a set
of machines and tools.
Guess who uses LEAN
PRODUCTION METHODS?
Known for their computer processors, Intel adopted
the lean manufacturing techniques to provide a
higher quality product to an industry that demands
zero bugs. This ideology has helped reduce the
time to bring a microchip to the factory from more
than three months in the past to less than ten days
. With items so precise and technical, Intel quickly
realized that producing a higher quantity of lower
quality was not the way to improve profits and
increase customer satisfaction. Instead, by
implementing quality control factors and waste
reduction techniques, both parties benefit. This is
even more so true in the tech industry where
products are changing and being upgraded so
frequently.
Guess who uses LEAN
PRODUCTION METHODS?
The famous shoe and clothing
giant has also adopted lean
manufacturing techniques. Much
like other businesses, Nike saw
less waste and higher customer
value, but also some unforeseen
benefits. Lean manufacturing was
shown to
reduce poor labor practices in
their overseas manufacturing plant
by up to fifteen percent. This was
mainly due to lean manufacturing
valuing the worker more than
Research what companies use LEAN
PRODUCTION METHODS in Jordan…
◦Lean manufacturing is a process that more
businesses will continue to adopt well into the
future. By reducing waste and maximizing value to
the customer, both consumers and companies can
handsomely benefit from its implementation. Most
companies have seen the genius of the lean
manufacturing system, and have attempted to
implement the system in their own processes with
various beneficial effects.
In Summary:

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