In: Finance
What are some examples of Lean or the Toyota Production System in the book "The Missing Links" by Caroline Mondon?
All companies struggle to implement and incorporate different managing and manufacturing processes into their business model. While there are literally thousands of techniques to doing so, there are a few general principles which apply to all manufacturing companies. How do companies use these techniques, and what are the benefits of the process for them?
The lean manufacturing movement started in the 1980s with the Toyota Production System. A key factor in lean manufacturing is getting employee feedback in all areas of production. Those workers directly involved in the manufacturing process often experience the production of waste and have good ideas on ways to prevent it.
Example
A company has a demand for 400 units a day, and operates for 800 minutes = 800 minutes / 400 units = a Takt Time of 2 minutes per unit.
Intel
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.
John Deere
John Deere has also adopted a lean manufacturing approach to their business. Many of their quality control mechanisms are fully automated meaning that more parts can be checked for defects in a shorter period. This means that more supply can get out of the door each day and the product can be offered to the consumer for a lower price. These controls are also used to monitor the production of each part of their products which means that they will never produce more than is needed and expend valuable materials in the process.