Lean Manufacturing Pros & Cons
Lean production got its start as a technique in the automotive industry with the Toyota Production System. It has grown globally since then, and many companies are adopting the principles of lean. There are pros and cons to its implementation.
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Definition
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Lean manufacturing focuses on the overall process with an eye on waste elimination and value-added components. "Value added" is often defined as anything the end user is willing to pay for. If there is a process or component in the system that does not add true value to the end product, it is eliminated. The goal of lean manufacturing is reduction of inventory and expedited customer order lead times. Both lead to bottom line increases.
Cellular Production
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Cellular production is probably the most widely used and successful component of lean manufacturing in the United States. Cellular production, or work cells, are units larger than a single individual or machine but smaller than an entire department. Because of their small size, work cells tend to expedite the flow of activity and units. Ideally, work cells are completely self-sufficient, having their own equipment and resources, and are responsible for a very narrow range of similar products or services.
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Value Stream Mapping
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One of the main benefits of lean manufacturing is efficiency gained through the value-stream mapping process that takes place as part of its implementation. In this process, flow charts are created for every activity throughout the company. These charts show where bottlenecks and waste occur along the production line, making them easier to eliminate.
Waste Reduction
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Another benefit of lean manufacturing is the overall elimination of waste. Examples of waste include movement of goods that has no value to the end product, excess inventory, over-production and over-processing caused by poor design, time spent waiting in queue for value to be added, wasted motion and defects. Eliminating all or as much waste as possible creates efficiency and, ultimately, profitability gains.
Time Investment
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The time investment required to implement lean manufacturing techniques throughout an organization is one of its big drawbacks. Successful implementation requires the participation of employees throughout the company to ensure that the cells integrate well with one another. Although value-stream mapping affords many benefits, it also takes time to work through completely. Some managers feel they cannot displace workers from production lines in order to participate on the lean implementation process. It is not something that can be put in place overnight.
Duplication of Resources
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Because various work cells may require the same resources, lean plants may have duplications of positions and equipment. Although this repetition ultimately leads to savings of time and money in a lean environment, there is a capital investment required, and the return on investment (ROI) may not be as fast as some company leaders would like. In fact, many companies frown on this sort of duplication.
Culture Shift
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Finally, the adoption of lean manufacturing practices often creates a culture shift in many companies that may have adverse effects. Without the complete "buy-in" by the shop floor operators and those responsible for doing the work, lean manufacturing is bound to fail, and the implementation effort becomes a waste of time and money. Many companies who have attempted the process because of a directive from upper management have experienced this issue firsthand.
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