In: Operations Management
A study by Agus and Hajinoor into the adoption of lean management among 200 (non-food) manufacturing companies in the Malay Peninsula identified that reducing setup times, shortening lead times and focusing on pull factors (such as maintaining production at levels commensurate to consumption) helped reduce costs and improve profitability.
Use at least 3 scientific references to support your answers. Follow APA-style when referencing.
Lean production is a strategy for improving productivity by eliminating or reducing wastes. Wastes are of seven types:Transportation, Inventory, Motion, Waiting, Over-production, Over-processing and Defects. Lately, an eighth waste - Skills i.e. inadequate or improper usage of manpower, has been added to the list of types of wastes.
In addition to Lean production strategy, Six Sigma , Kaizen and TPM (Total Productive Maintenance) could be implemented by the companies to improve quality and productivity.
Six Sigma is a methodology implemented which focuses on reducing the number of variations, such that the probability of error occurrence is minimized. Standardized work procedures and practices along with minimizing the variation leads to reduction in defects. A six sigma process is one in which there are only 3.4 defects per million opportunities.
Kaizen is a Japanese term which means continuous improvements. This strategy is used such that small improvements are made on a regular basis such that they cause a long-lasting impact on the overall productivity and performance. These improvements are mostly done on a continual basis i.e. improve then sustain, then improve and sustain. and so on.
TPM is a methodology which comprises of various steps taken by the company to improve the productivity by improving the reliability, safety and quality of the equipment, machinery, processes, manpower and tools which contribute towards adding value for the customers.