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ORGANIZATIONAL DOWNSIZING USING LEAN MANUFACTURING WITH IMPLEMENTATION ON REAL LIFE OPERATIONS.
From: Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA Institute of Engineering, Faridabad, Haryana.., Dec 9-10, 2006
Authored by: Anil Shastree1, S A Arundhati2
1Department of Mechanical Engineering ,Professor ,A D Patel Institute of Technology,
New V V Nagar,388121 Gujarat
2Company Secretary,Narmada Chematur Petro-Chemicals Limited,Bharuch,392015 Gujarat
1, 2Email: anilshastree@yahoo.com , arundhati_shastree@yahoo.co.uk
Abstract
Lean manufacturing can be symbolized by transparent ball- the spirit of challenge and the challenge of change. Avoiding waste is the theme. The essence of "lean" is to compress time from the receipt of an order all the way through to the receipt of payment. Shortening cycle by properly aligning all steps in the activity reduces waste and brings improvement. As enterprises have reduced costs and improved quality, the primary competitive measure is the ability to respond to the customer. This directly makes the organization cost conscious. It also helps in becoming customer focused. It is a team oriented approach. Effective communication, flexibility, standardization etc are the accrued benefits of lean manufacturing.
The paper discusses the concept of lean as applied to Indian organization and the issues there off in lean manufacturing, This paper guides through Lean Manufacturing concepts and helps to introduce methods and tools designed to put these concepts to work in a manufacturing environment ; after effect of this strategy - down sizing and its effects are explained. The rules for success of lean and its improvements as experienced by authors are explained.
The paper concludes by giving the details of the live case study in which authors have participated and their experiences about lean implementation. No doubt lean is a strategic tool for competitiveness and down sizing is the effect of strategy decision implementation. Essentially, effects of lean should be accompanied by trust and motivational leadership
Key Words: Lean, Lean Organization, Down Sizing, Experiences With Lean Implementation, Areas For Lean Working .
1.0 Introduction
Organization size reduction strategy is an accepted practice for improving the performance and for bringing change. By eliminating unnecessary steps, aligning all steps in an activity in a continuous flow, recombining labour into cross functional team dedicated to that activity and continually striving for improvement , companies can develop, produce and distribute products half or less of the human effort, space, tools, time and overall expense. They have also become vastly more flexible and responsive to customer desires. Avoiding waste is the theme. It is necessary to have the existing knowledge base if new organizational model is to be made-the model is “LEAN ENTERPRISE”. Lean production tightly integrates product design, supply and distribution, manufacturing accounting, marketing and management. An ideal lean manufacturing system consists of all the parties within the extended manufacturing enterprise sharing information and resources in team oriented ,multifunctional, environment.(European automotive initiative group –EAIG) In short, a lean enterprise is an integrated entity which efficiently creates value for its multiple stakeholders by employing lean principles and practices(Lean Initiative Aerospace, MIT) If properly implemented, lean manufacturing leads to knowledge and not just information of numbers. It is an approach road to organizational learning. It leads to the best alternative under existing situation. It is reframing the existing set up and revalidating the business assumptions. It means training an employee to be employable. Of course, there is change in mind set and attitudes. It is necessary to accrue the benefits and effectively manage the negative consequences. In lean manufacturing, the process is that of “doing it right at the first time”. It is actually changing the way one thinks about manufacturing. That can be a tough shift to make. No wonder there is thinking and rethinking process leading to the path of simplification, standardization, relearning and unlearning. Lean is doing the thing with. CHANGE. Change is not easy. It takes lots of work, dedication, desire to change and above all commitment to change. Change means gaining in depth understanding of the dynamics. It is the effective management .It is an organizational learning. It is change management. It also offers knowledge base and understanding of the turbulence in the market 1
place. It is not myopic research but a strategy for survival for gaining sustainable advantage. It is the accumulated knowledge churned out from experience Accumulated knowledge provides the basis for creating further knowledge, at the core is the corporate renewal package rather than the isolated strategy on its own. It is like providing the fresh look at the traditional ways of conducting existing business. Often companies see bucks in rejuvenating and reinventing old products and gets through LEAN. In principle, down sizing means reducing head count. This usually means managing the potential and negative consequences keeping in mind the expectations that organizations have from down sizing. Adopting the proper strategies for successful downsizing is essential.
2.0 Understanding Lean
James P Womack, Daniel T Jones and Roods D in their book” The Machine that Changed the World: The Story of Lean Production. New York: Harper Collins Publishers (1990) explained how companies can eliminate unnecessary steps and by continually striving for improvement can develop, produce and distribute products with half or less of human effort, space, tools and over all expense. Toyota implemented the system in true spirit. They have since built their reputation as quality leaders and boast one of the fastest growing market shares in the automotive industry. The theme that stands out is REDUCE CYCLE TIME. Commonly, understanding the concept of lean manufacturing leads to many more opportunities; no doubt the processing time is very small portion of the cycle time. Obviously, benefit of shorter cycle time is the reduced lead-time that gives the competitive edge and reduction in the cost.
Companies need two systems:
1) To run the business and
2) To develop new ideas.
Managers will have to concentrate on the performance of the enterprise rather than on the performance of the individual, functions and companies. Some organizational benefits expected from down sizing includes increase in productivity, improved quality, sustainable competitive advantage and above all standing firm in the future competition. Knowledge is the primary resource for individual and for organization overall. Specialized knowledge by itself produces nothing. It can become productive only when it is integrated into a task. The purpose and function of every organization business and non business alike, is the integration of specialized knowledge into a common task.
The issues involved to become a world trend setter by lean manufacturing are:
1. Lean supply network
2. Lean organization
3. Lean distribution customer service
4. Lean product development
5. Lean accounting
6. Lean information management
7. Lean manufacturing
8. Lean quality management
With Lean thinking at the core (Figure 1)
These results in
1. Converting inventory into cash faster
2. Maintaining less inventory by producing the product faster
3. Less expediting due to proper inventory levels
4. Decreased order processing costs as fever orders are being tracked simultaneously
5. Decreased processing time due to altered focus of entire team
6. Removing non-value addition (waste) - the first step for reducing the cycle time.
To view the whole paper: Click here: https://www.scribd.com/document/400747073/Organizational-Downsizing-Using-Lean-Manufacturing-With-Implementation-on-Real-Life-Operations
ORGANIZATIONAL DOWNSIZING USING LEAN MANUFACTURING WITH IMPLEMENTATION ON REAL LIFE OPERATIONS.
From: Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA Institute of Engineering, Faridabad, Haryana.., Dec 9-10, 2006
Authored by: Anil Shastree1, S A Arundhati2
1Department of Mechanical Engineering ,Professor ,A D Patel Institute of Technology,
New V V Nagar,388121 Gujarat
2Company Secretary,Narmada Chematur Petro-Chemicals Limited,Bharuch,392015 Gujarat
1, 2Email: anilshastree@yahoo.com , arundhati_shastree@yahoo.co.uk
Abstract
Lean manufacturing can be symbolized by transparent ball- the spirit of challenge and the challenge of change. Avoiding waste is the theme. The essence of "lean" is to compress time from the receipt of an order all the way through to the receipt of payment. Shortening cycle by properly aligning all steps in the activity reduces waste and brings improvement. As enterprises have reduced costs and improved quality, the primary competitive measure is the ability to respond to the customer. This directly makes the organization cost conscious. It also helps in becoming customer focused. It is a team oriented approach. Effective communication, flexibility, standardization etc are the accrued benefits of lean manufacturing.
The paper discusses the concept of lean as applied to Indian organization and the issues there off in lean manufacturing, This paper guides through Lean Manufacturing concepts and helps to introduce methods and tools designed to put these concepts to work in a manufacturing environment ; after effect of this strategy - down sizing and its effects are explained. The rules for success of lean and its improvements as experienced by authors are explained.
The paper concludes by giving the details of the live case study in which authors have participated and their experiences about lean implementation. No doubt lean is a strategic tool for competitiveness and down sizing is the effect of strategy decision implementation. Essentially, effects of lean should be accompanied by trust and motivational leadership
Key Words: Lean, Lean Organization, Down Sizing, Experiences With Lean Implementation, Areas For Lean Working .
1.0 Introduction
Organization size reduction strategy is an accepted practice for improving the performance and for bringing change. By eliminating unnecessary steps, aligning all steps in an activity in a continuous flow, recombining labour into cross functional team dedicated to that activity and continually striving for improvement , companies can develop, produce and distribute products half or less of the human effort, space, tools, time and overall expense. They have also become vastly more flexible and responsive to customer desires. Avoiding waste is the theme. It is necessary to have the existing knowledge base if new organizational model is to be made-the model is “LEAN ENTERPRISE”. Lean production tightly integrates product design, supply and distribution, manufacturing accounting, marketing and management. An ideal lean manufacturing system consists of all the parties within the extended manufacturing enterprise sharing information and resources in team oriented ,multifunctional, environment.(European automotive initiative group –EAIG) In short, a lean enterprise is an integrated entity which efficiently creates value for its multiple stakeholders by employing lean principles and practices(Lean Initiative Aerospace, MIT) If properly implemented, lean manufacturing leads to knowledge and not just information of numbers. It is an approach road to organizational learning. It leads to the best alternative under existing situation. It is reframing the existing set up and revalidating the business assumptions. It means training an employee to be employable. Of course, there is change in mind set and attitudes. It is necessary to accrue the benefits and effectively manage the negative consequences. In lean manufacturing, the process is that of “doing it right at the first time”. It is actually changing the way one thinks about manufacturing. That can be a tough shift to make. No wonder there is thinking and rethinking process leading to the path of simplification, standardization, relearning and unlearning. Lean is doing the thing with. CHANGE. Change is not easy. It takes lots of work, dedication, desire to change and above all commitment to change. Change means gaining in depth understanding of the dynamics. It is the effective management .It is an organizational learning. It is change management. It also offers knowledge base and understanding of the turbulence in the market 1
place. It is not myopic research but a strategy for survival for gaining sustainable advantage. It is the accumulated knowledge churned out from experience Accumulated knowledge provides the basis for creating further knowledge, at the core is the corporate renewal package rather than the isolated strategy on its own. It is like providing the fresh look at the traditional ways of conducting existing business. Often companies see bucks in rejuvenating and reinventing old products and gets through LEAN. In principle, down sizing means reducing head count. This usually means managing the potential and negative consequences keeping in mind the expectations that organizations have from down sizing. Adopting the proper strategies for successful downsizing is essential.
2.0 Understanding Lean
James P Womack, Daniel T Jones and Roods D in their book” The Machine that Changed the World: The Story of Lean Production. New York: Harper Collins Publishers (1990) explained how companies can eliminate unnecessary steps and by continually striving for improvement can develop, produce and distribute products with half or less of human effort, space, tools and over all expense. Toyota implemented the system in true spirit. They have since built their reputation as quality leaders and boast one of the fastest growing market shares in the automotive industry. The theme that stands out is REDUCE CYCLE TIME. Commonly, understanding the concept of lean manufacturing leads to many more opportunities; no doubt the processing time is very small portion of the cycle time. Obviously, benefit of shorter cycle time is the reduced lead-time that gives the competitive edge and reduction in the cost.
Companies need two systems:
1) To run the business and
2) To develop new ideas.
Managers will have to concentrate on the performance of the enterprise rather than on the performance of the individual, functions and companies. Some organizational benefits expected from down sizing includes increase in productivity, improved quality, sustainable competitive advantage and above all standing firm in the future competition. Knowledge is the primary resource for individual and for organization overall. Specialized knowledge by itself produces nothing. It can become productive only when it is integrated into a task. The purpose and function of every organization business and non business alike, is the integration of specialized knowledge into a common task.
The issues involved to become a world trend setter by lean manufacturing are:
1. Lean supply network
2. Lean organization
3. Lean distribution customer service
4. Lean product development
5. Lean accounting
6. Lean information management
7. Lean manufacturing
8. Lean quality management
With Lean thinking at the core (Figure 1)
These results in
1. Converting inventory into cash faster
2. Maintaining less inventory by producing the product faster
3. Less expediting due to proper inventory levels
4. Decreased order processing costs as fever orders are being tracked simultaneously
5. Decreased processing time due to altered focus of entire team
6. Removing non-value addition (waste) - the first step for reducing the cycle time.
To view the whole paper: Click here: https://www.scribd.com/document/400747073/Organizational-Downsizing-Using-Lean-Manufacturing-With-Implementation-on-Real-Life-Operations
Very Good & Informative.
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