Implementation of Lean Manufacturing Principles in Auto Industry

Lean manufacturing is defined as a systematic approach to identifying and eliminating waste through continuous improvement, flowing the product at the pull of the customer in pursuit of perfection. This paper describes some learning from the literature and actual practices in USA, UK, and India. Attempts are made to present the gaps between the principles and practices. Some pertinent propositions are put forth to enrich the knowledge base of professionals to make the implementation process more pragmatic and robust in the long run and for furtherance of empirical research by academics. 1. Review of implementation of lean principles in auto industry Lean manufacturing is a performance-based process used in manufacturing organizations to increase competitive advantage. The basics of lean manufacturing employ continuous improvement processes to focus on the elimination of waste or non value added steps within an organization. The challenge to organizations utilizing lean manufacturing is to create a culture that will create and sustain long-term commitment from top management through the entire workforce. Lean manufacturing techniques are based on the application of five principles to guide management’s actions toward success: 1. Value: The foundation for the value stream that defines what the customer is willing to pay for. 2. The Value Stream: The mapping and identifying of all the specific actions required to eliminate the nonvalue activities from design concept to customer usage. 3. Flow: The elimination of all process stoppages to make the value stream “flow” without interruptions. 4. Pull: The ability to streamline products and processes from concept through customer usage. 5. Perfection: The ability to advocate doing things right the first time through the application of continuous improvement efforts. 2. The Four Thrusts of Lean Manufacturing: Lean manufacturing organizations focus on fourthrusts to support their lean manufacturing designs: I. Solid leadership that:  Communicates the vision.  Facilitates and models the behaviors of lean manufacturing.  Sets the standards for the organization. Industrial Engineering Letters www.iiste.org ISSN 2224-6096 (print) ISSN 2225-0581 (online) Vol 1, No.1, 2011 57  Assists the workforce in adapting to the change.  Builds trust and inspires commitment.  Coaches and develops the workforce.  Constantly challenges the system. II. Team-based cultures that:  Use project-oriented, team-based structures that focus on empowerment concepts.   Leverage knowledge by using highly skilled workers.   Promote employee accountability and responsibility for work.   Advocate the continual development of the workforce.   Value diversity.   Believe that employee ownership of the final product is shared throughout the process. III Communication systems that:  Advocate and develop processes to identify critical design issues as early in the process as possible.  Encourage “on-the-spot” decision-making processes that use the fewest resources to resolve critical design issues.  Promote knowledge sharing between hourly workers, management, and design personnel.  Drive the behaviors of internal operations, as well as focus on the behaviors of suppliers and customers.  Accept formal and informal communication behaviors. IV.Simultaneous development and continuous Improvement processes that:  Design the product right the first time.  Use continuous improvement processes to identify the non-value-added problems.  Drive commitment to eliminating problems (controlling them is not enough).  Advocate just-in-time material control systems.  Promote constant improvement throughout the supply chain.  Leverage the knowledge of the organization with the knowledge bases of suppliers and customers.  Continually train and develop highly skilled workers.  Use scoreboards or measurement systems to monitor progress. Industrial Engineering Letters www.iiste.org ISSN 2224-6096 (print) ISSN 2225-0581 (online) Vol 1, No.1, 2011 58 Lean manufacturing processes are being used predominantly in the automotive industry. Toyota Motor Company, considered the leader in lean manufacturing techniques, started using the techniques during the 1950s and 1960s. They have since built their reputation as quality leaders and boast one of the fastest growing market shares in the automotive industry. Manufacturers using lean manufacturing include: Automotive Industry:  Toyota Motor Company Toyota Production System  Ford Motor Company The Ford Production System  Chrysler Chrysler Operating System  Porsche The Porsche Improvement Process  General Motors NUMMI joint venture with Toyota