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  • Essay / Lean Manufacturing generates value with less work by...

    Lean ManufacturingLean Manufacturing is an exercise based on minimizing waste. It considers the use of resources for any activity other than creating value for the customer as waste. Fundamentally, Lean is focused on “Delivering value with less work by eliminating waste” (Liker, 1997). Lean manufacturing philosophy involves endless efforts to reduce or eliminate “muda” (waste) in manufacturing processes. Just-in-time management Just-in-time (JIT) is a production philosophy that attempts to improve company profits by reducing inventory and carrying costs. To achieve this objective, the process relies on signals or “Kanban” between different points. These signals tell production when to make the next part. For example, if the inventory of a material is completed, the JIT system sends a pop-up to the e-procurement team to procure additional material for production. This pop-up on the e-procurement team's screen is a Kanban. When implemented correctly, JIT focuses on continuous improvement and can improve the quality and efficiency of a manufacturing organization's processes. JIT management system is the result of implementing Lean manufacturing systems in your organization (Womack, 2007). The terms Lean manufacturing and just-in-time management come from the Toyota Production System. The organizational reference which will therefore be used to define these two philosophies will be Toyota. Waste or MudaAccording to Toyota, the following waste accounts for 95% of all costs (Abdulmalek, 2007): -Overproduction – Producing more than the customer demands. Anything produced beyond the customer's needs takes up valuable resources as well as time that can be used to meet the needs of other customers who have... middle of paper ... lean systems in an organization also depend on the implementation the same at the provider as well. Toyota's suppliers found it difficult to plan and plan according to requirements, but the effects were greatly reduced due to lack of exposure to similar situations before. Conclusion Lean Manufacturing as a practice is increasingly used by organizations around the world. Toyota Motors has set the benchmark by implementing Lean processes and showing fabulous results to support the Lean philosophy. Organizations that have implemented Lean Manufacturing have become more responsive to dynamic industry trends. They were able to adapt faster and deliver customer value in a short period of time, thereby achieving customer satisfaction and recommendations. This led to increased profitability and productivity growth, and this continues to happen..