A model for assessing the anticipated relative financial impact of implementing the tools of lean manufacturing on a manufacturing concern

• Main Author: Francis, Merwin
• Format: Others
• Language: English
• Published: Nelson Mandela Metropolitan University 2011
• Subjects: Production management; Manufacturing processes; Production planning; Industrial efficiency; Total productive maintenance
• Online Access: http://hdl.handle.net/10948/1326

Lean manufacturing has seen its creators, Toyota, rise from insignificance in the middle of the previous century, to the biggest selling car manufacturer in the world today. Another Japanese car manufacturer, Honda, which has also been practising the principles of lean avidly during the last few decades, has also made huge strides towards becoming a dominant force in the car market. These Japanese companies‟ adoption of lean has seen many of their mass producing United States (US) and European counterparts struggle for survival. Maynard (2003:10) predicted that by the end of the decade, at least one of the „Big Three‟ auto makers in the US – Chrysler, Ford, and General Motors (GM) – would be forced to undertake significant restructuring to continue in operation. At the time of this writing all indications are that this prediction will come true. GM is in the process of major shareholding restructuring in an attempt to keep the company afloat, having run up insurmountable debts in the face of the current global economic downturn. Adopting the lean methodology has become a matter of necessity. The continued use of mass production methods alone is no longer viable; companies need to also employ lean methods intelligently in order to remain competitive. This study is regarded as a crucial endeavour to assist operations managers of manufacturing concerns in developing lean implementation strategies which will maximise the benefits to the organization.