Introduction
In the era of globalization, companies need to use as few resources as possible and cut costs. To do so, minimizing waste without compromising productivity is essential, with companies coming up with new ways of optimizing their operations. The introduction of a lean manufacturing system allows producers to improve the quality of their products by lowering costs significantly. However, implementing lean manufacturing is possible by introducing cultural changes, which are challenging.
Cultural Change for Lean Manufacturing
Addressing challenges that exist on manufacturing lines requires significant cultural changes on the part of businesses. To a large degree, these changes make Lean initiatives powerful and effective, which means that despite the issues of their introduction, they are necessary. Although, identifying the way and the sequence in which new techniques are introduced and applied depends on the capabilities of organizations.
The order of implementing Lean strategies is one of the most crucial factors of cultural change because they will call for shutdowns and disruptions, which impact the overall efficiency of production lines. Thus, it is unreasonable that the first step in cultural change is the shutdown. As mentioned by Lonnie Wilson in the book How to Implement Lean Manufacturing, “the production plant must first learn to crawl – it must have a product to sell. Must have good leadership, good problem solvers, and a willingness to change. Only then can it walk and develop a solid quality system with high levels of product stability, good process stability, and deep understanding of variation” (3). This means that cultural change within manufacturers starts with building a foundation, proceeds with further development, and ends with specific changes. Shifting the natural progression of a manufacturer will lead to guaranteed failure because a company may not be prepared for dramatic changes without making small ones.
Since deep cultural changes and strong organizational development are necessary for ensuring the success of Lean manufacturing, the overall process is complex and sometimes unpredictable. Because of this, companies need to evolve and promote internally and implement such changes as effective problem-solving, which makes it easier to prepare for sudden changes. However, the most impactful ability of a manufacturer in terms of changing culture is not associated with accepting change, but rather inviting and encouraging it.
The Toyota Production System (TPS) is the brightest example of a company inviting and encouraging cultural changes. While it may be considered odd and complex, the fact that TPS is looking for changes, and despite striving for chaos, it is far from being chaotic. Cultural changes are desired because they offer some room for improvement through problem-solving. This means that the culture established within Toyota is changing continuously, and how it occurs is not energy-draining compared to organizations that have not developed appropriate structures.
In a typical culture that is not as inviting to change as Toyota, considering the potential outcomes of Lean strategies is essential. In such cultures, change is usually resisted on multiple levels instead of being embraced. This means that typical companies look for stability, and when improvement initiatives are announced, a range of questions from the workforce usually arises. In most cases, the two questions regarding cultural change include “How can we be sure that the change is not another ‘program of the month’”? and “Does the change jeopardize my job?” These questions reflect the lack of preparedness of workers to embrace change as well as hesitation associated with the fact that new advancements may hinder their stability.
Workers ask the mentioned questions because both programs of the month and the loss of jobs occur when cultural changes were introduced. For instance, trying to improve efficiency, companies would invest in technologies to replace some work that employees were doing. Workers get fired and forced to look for other jobs while technologies fail without proper maintenance. Therefore, to avoid such complications when introducing Lean manufacturing, coordinators should allay the fears of their workers and communicate the benefits it may bring.
Lean facilities such as Toyota manage the arising issues and reshape the culture in such a way that it is not only tolerated but promoted. All cultural skills, which are exercised in TPS, separate the system from others because they are associated with creating a reasonable and healthy culture. To develop it, the company has invested time, effort, and management skills. However, even these improvements may not make other companies as successful in Lean manufacturing as Toyota is due to the years of experience and the establishment of a unique culture.
Lean Manufacturing
To understand the concept better, it is important first to explore the definition of Lean manufacturing. It implies the combination of techniques and methods that, when properly developed, will allow producers to eliminate the occurrence of waste. Apart from making a manufacturer leaner, the strategy allows it to become more flexible and responsible to reduce waste. Overall, the lean approach implies the introduction of a set of tools that make it possible “to identify and eliminate waste” (Muda), improve quality, and reduce the time and costs of production (LAI Lean Academy, Lean Thinking Part I 11). The presence of some Japanese terms is associated with the fact that Toyota is a foreign company and has been working with Lean principles. For solving the issue of waste that occurs in the majority of manufacturing systems, Lean manufacturing implies the use of several tools, the most important of which are process improvement (kaizen) and mistake-proofing (poka-yoke).
When a company is planning to introduce Lean principles into its manufacturing, it is important to understand what specific processes should be followed. First, companies are required to use fewer materials, investing less to save resources, take less inventory, having fewer employees, and consume less space. In most systems, including TPS, there is a sense of predictability and flow, which contributes to reducing uncertainties and the instability that is inherent to most manufacturing sites. In Lean manufacturing, it is expected that employees do their job with confidence, ease, and peace if compared with traditional systems.
Toyota Production System
The Toyota Production System is the most advanced Lean manufacturing system that has shown to bring success to the manufacturer. It should be mentioned that it may not be the best Lean system ever to exist; however, it is the most efficient ever to be documented. According to Wilson, the TPS is “a production system which is a quantity control system, based on a foundation of quality, whose goal is cost reductions, and the means to reduce cost is the absolute elimination of waste” (10). Further, the TPS will be explored in greater detail to address it is positive and limiting aspects.
The TPS implies a way of manufacturing automotive vehicles by focusing on the control of quality for reducing waste and decreasing costs. Also, the system is developed based on a strong foundation of product and process quality. The TPS is changing and improving all the time, it is fully integrated into existing processes, and is supported by a strong and supportive culture that is managed “continuously, consistently, and consciously” (Wilson 11).
The two pillars of TPS include Just in Time (JIT) inventory and Jidoka. The former implies the control of quantity – supplying specifically the right amount of materials at a specific time and location to avoid excess. Technically, JIT is the core of Lean manufacturing because it is much more than a system of inventory since it implies deep control and understanding of variation. The latter implies considerations of technical and cultural issues associated with the collaboration between humans and machines. To be more specific, people in manufacturing are used to perform unique tasks white machinery regulates the quality of these tasks. Jidoka implies the use of such tactics as poka-yoke, which is a way of foolproofing a process.
Since the TPS is the primary example of Lean manufacturing implementation, several important aspects set it apart from others. The aspects in which the system is different from others include the management of line availability, the management of cycle time variations, dealing with quality, handling the variations in supply and demand, and so on. These technical issues are important to handle within a Lean manufacturing system because they will guarantee the use of less time and resources to optimize the complex side of production.
Handling different models of one product is another unique aspect of Lean manufacturing. In the less unique systems of mass production, multiple models are manufactured in large batches because of the need for changeovers in switching models. However, the Lean solution implies that different models are produced in lower quantities because of the application of model mix leveling. Some parts of models will be the same, which allows one manufacturing plant to produce several models at the same time without having to make large batches.
Pull production technology is another important aspect of lean manufacturing because it is crucial for avoiding manufacturing in excess. Customer consumption is considered a trigger for production, which means that to implement the strategy, businesses should invest in dramatic cultural changes to respond to what a customer wants. Pull production is associated with the replenishment of inventory using not producing anything until consumption occurs. Storehouses are often used in this case because of the possible mismatched rates of stock and consumption. The production of new items takes place when the next downstream customer comes to get his product.
When a company wants to establish a Lean manufacturing system such as TPS, it should be prepared to adopt a philosophy of continuous improvements. Changes and improvements take place regularly, and workers and their supervisors should be trained to be prepared to adapt to these changes. The minute the training stops, the company stops improving and thus cannot adhere to Lean principles. The culture of consciousness becomes the forefront of such systems to ensure that workers know what is going on in their companies at all times.
Supply of Value to Clients
What sets the TPS apart from other systems of manufacturing is that the producer focuses on addressing the needs of customers as well as the needs of production plants. Value is considered something that both customers and plants need and want, which is why the TPS adopted the principle of supplying values as one of the most revolutionary. The value-added work that manufacturers do is something that contributes to the function, form, and fit of the final product. Also, it is something that a customer will find interesting and thus for which he or she will be willing to pay.
Because of the integration of the value principle as the core of Lean manufacturing, producers are forced to question everything they do in their plants to make sure that the idea works. From packaging to transportation, it is advised to evaluate the existing processes as they contribute to the added value for customers. The customer may not care about how materials are transported from a foreign country to produce an item; rather, it is the costs of transportation that will be considered when developing a price for a product. This means that an unreasonably high price will not bring value to customers, which is why Lean is essential. Therefore, a manufacturer should consider all aspects contributing to the final output of the product to ensure that the produced items are appealing to customers.
Reducing lead times is another crucial aspect of Lean manufacturing that companies like Toyota take very seriously. Lead time is among the methods in which manufacturers can measure time (LAI Lean Academy, Lean Thinking Part II 5). The TPS is an example of continuously reducing and optimizing lead times, and it does so through the reduction of waste. However, the benefits of reducing waste go far beyond the elimination of waste. One of the key advantages of reducing lead times can “be seen in a wide range of activities within the context of typical businesses” (Wilson 13). For instance, when lead times are reduced, plants become more effective in being flexible and responsive to the tasks that must accomplish. In terms of responsiveness, a manufacturer can have the ability to change in the case when the timetables of their customers change. Importantly, responsiveness also implies that there will be no issues with adapting to the volume or the model mix of a product. With reduced lead times, a manufacturer is better capable of making any kind of change.
Elimination of Waste
As mentioned earlier, the reduction and complete elimination of waste in a production system is the main aspect of Lean manufacturing. In combination with lead times reduction, changing the culture, adding value, continuous improvements, and other technical considerations, waste elimination allows companies to be more efficient in their production. To implement Lean manufacturing procedures, it is necessary to address such issues as overproduction, transportation, waiting, overprocessing, movement, inventory, and defective parts (LAI Lean Academy, Lean Thinking Part I 17).
Overproduction is one of the most tedious aspects of waste because it aggravates the appearance of even more unnecessary resources. For instance, when an item is produced in excess, it then should be transported, stored, and checked for defective materials. The issue with overproduction is that it is planned most of the time, and sometimes for good-sounding reasons. In terms of waiting, the problem arises when employees are not working for some reason. From machinery failures to stock-outs, waiting for leads to an unbalanced line.
Transportation problems occur when a manufacturer has to move parts and products from one location to another. They can take place between processing lines, steps, as well as when the final product is being delivered to customers. Overprocessing implies the waste of processing an item beyond what customers want. In most cases, this waste issue is associated with engineers making unnecessary specifications create waste at the stage of design. Movement is a problem that arises when there is an unnecessary movement of people that look for materials and tools. Too often, movement is overlooked as waste because of the increase in activity: workers are busy and active and do not have to wait around.
Inventory excess is the classic representation of waste at manufacturing companies. Because of this, companies should be cautious of the number of products or materials they store and adjust to the demand for them. Lastly, defective parts are another waste problem that occurs due to the lack of attention to the quality of produced items. Defective parts should not be considered “scrap” because they also imply the use of time, materials, and human resources.
When Lean Does Not Work
In considering the implementation of Lean manufacturing, it should be understood that the system may not work in all companies. Limitations and disadvantages still exist, and manufacturers should be prepared for them. For instance, Lean systems will never work in sports teams because they are predominantly focused on short-term attainments. Thus, the philosophy of introducing Lean systems is the following:
- An organization should be operated in a competitive environment of a free market;
- There should be a clear orientation on the customer;
- When a value is being supplied to a customer, the main thing is the elimination of waste;
- An organization has a focus on long-term goals, sometimes at the expense of short-term ones.
If a manufacturer does not meet the criteria mentioned above, it is unlikely that the Lean approach works. Apart from the example of sports teams, charities may not work effectively when combined with Lean. When there is a problem of not spending the grant money, and charities look for ways in which they can spend it, fearing that they will get less money next year. Thus, instead of reducing waste, they often create it. In the healthcare industry, Lean systems may not always be effective because the principle of customer orientation is often misunderstood: patients are not customers because they do not shop for health care services as if they would for a new car. Also, finding the best value for the services they get because most people go where their doctors send them.
Conclusion
In summary, it should be mentioned that the implementation of Lean manufacturing systems requires companies to be attentive to how they use resources and produce waste. Cultural changes are required for introducing Lean because they will allow manufacturers to be prepared for unpredicted situations and use both material and human resources to their advantage. The Toyota Production System is a bright example of Lean manufacturing, which has a unique culture that invites and promotes change, of which not many companies can boast.
Works Cited
LAI Lean Academy. Lean Thinking Part I, Web.
Lean Thinking Part II, Web.
Wilson, Lonnie. How to Implement Lean Manufacturing. McGraw-Hill, 2010.