Monday, 7 January 2013

Case study: How Lean Manufacturing Failed


Case study: How Lean Manufacturing Failed
by
Maizul Afzairizal Bin Mohd Adnan

Lean is a powerful organization and manufacturing model that most experts agree could be the dominant paradigm worldwide in the next five to 10 years. Among the benefit of using lean manufacturing is to lower the production cost, as well as effective use of space and equipment. Benefit of lean can be categorized as;

  •          Improved Customer Service; delivering exactly what the customer wants when they want it.
  •         Improved Productivity; Improvements in throughput and value add per person.
  •         Quality; Reductions in defects and rework.
  •          Innovation; staff are fully involved so improved morale and participation in the business
  •        Reduced Waste; Less transport, moving, waiting, space, and physical waste.
  •          Improved Lead Times; Business able to respond quicker, quicker set ups, fewer delays.
  •         Improved Stock Turns; Less work in progress and Inventory, so less capital tied up.

Lean manufacturing focus on eliminate the seven wastes there are: transportation, overproduction, motion, waiting, inventory, defect and over processing. However, current lean implementation failure rates—well over 50 percent according to many lean advocates and professionals—are much too high for this to happen.