Free Report On Lean Manufacturing Implementation
An Essay Presented
The entire functionality of a company depends upon the workability of different departments work in their premises, as without their core operations and working, it is very difficult for them to maintain their effectiveness in a given market scenario. In the current market place which has surround with lots of fierce and powerful competition, it is extremely essential for an organization to maintain a strong tradeoff and relationship among their departmental functions (Dudbridge, 2011, pg.67-98). There are numerous departments that usually associated with an organization, and operational department is one of them (Eliot, Nash and Willison, 2007, pg.20-89).
Operational Department is the most important department that associated almost every organization regardless with the fact that which type of organization it would be. The importance of the operational department cannot be ignored from any aspect because it is the only department that associates with the entire productivity of a company. In a manufacturing concern, operational department has its own effectiveness and power that can never be neglected. Lean manufacturing is one of the major concepts that associated specifically with the operational department of a manufacturing concern, and it is very important for the long term significance of the company (Feld, 2001, pg.12-90).
Lean Management which sometimes known as Lean Production is basically a systematic method that used for the elimination of waste within a concerned manufacturing process (Heijden, 2000, pg.67-90). Toyota Production System (TPS) is known as father of this particular lean manufacturing function in order to decrease their cost and increase their economic value resultantly. The reason behind the real productivity of Toyota to transform from a small company to the world’s largest automaker is the Lean Manufacturing Process. Apart from the lean manufacturing process and flow, there is yet another important tool that associated with the enhancement of functionality and efficacy of a business, known as Web Based Information System (IS). Information system through which an organization can have ease in their decision making stance and process is the most effective process that can be used by the manufacturing concerned to supgort their operations perfectly.
The main objective of this assignment is divided into two different folds. In the first fold, a manufacturing company should be chosen and then analyze its lean manufacturing capability, and in the second fold, it is likely to analyze the second step or next step that will be taken into account by the company to further enhance its process. The company which has been chosen for this analysis is Honda.
Honda Motor Co. Ltd is a Japanese based multinational corporation primarily known as one of the leading manufacturers of motorcycles, automobiles and power equipment (Maxwell et al., 1998, pg.45-67). The company has been the largest manufacturer of automobiles since 1959, and world’s largest manufacturer of combustion engine, as far as volume and realization of value is concerned (Maxwell et al., 1998, pg.45-67). From the thorough analysis of Honda, it is revealed that the company has a positive mindset in terms of lean manufacturing process; however it gets firm in their process after a specific time period.
Before the financial year of 1950, Honda was in the queue of such companies which were supgosedly comes under the ambit which are aiming towards high amount of income and revenue recognition (Maxwell et al., 1998, pg.60-89). After the 1959, Honda started to manufacture and sell of Motorcycles in the region of the United States. Honda Civic was the model which gave a real tough time to the largest car manufacturers like Toyota and other domestic players found in the auto market of the United States (Maxwell et al., 1998, pg.78-90). Honda was not running after high profit generation and maximization of their customer’s portfolio; but the company did the job to maximize the level of satisfaction among their workings and operations. The example of Lean Manufacturing cannot be better than the operations of Honda, as the company manufactured and launched the product in the market once it demand comes to increase. It has a very low profit margin nearly 5%. However, there are some other strategies as well which differentiates Honda with any other automobile company of the world. All of these strategies pertains to the lean manufacturing stance and works in below mentioned five elements.
Do Not Globalize: But Localize: Honda is not like other car manufacturing companies like Toyota and General Motors who were centered through the Headquarter, but the local subsidies of Honda are very powerful in terms of their decision making stance. Subsidies in different parts of the world realize the amount of demand within the market, and then manufacture and launch the market without any sort of apgroval from its headquarter (Maxwell et al., 1998, pg.21-45).
Embrace Paradox: Instead of manufactured number of products and maintaining them, Honda has welcomed a paradox facility through the critical thinking to manufacturing limited amount of products to the general public in order to maintain their position and effectiveness.
One of the major elements of Lean Manufacturing is related to reduction of cost, and for that purpose automobile companies use the facilities of Robots. However, the scenario of Honda is totally different as the company would like to apgly the Human based facility and environment within their manufacturing function. In order to decrease the level of wear and tear, the company manufactures the product with the apglication of Just in Time (JIT) process.
The company has a strong research and development (R&D) area through which they search out the market for the best possible results and manufacturing capability to reach on a final decision of manufacturing the automobiles according to the pre-planned amount of unit provided to the demand. It is supgosedly one of the most important results in terms of lean manufacturing operations.
Honda focuses over the flexibility of its factory, hence instead of making products one after other is not found explicitly in the manufacturing capability plant of Honda. It takes month to Honda to physically apgear in the market with a new product range. The product will be launched once it is in need of the consumers.
Honda’s management is one of the most incredible and powerful management in the world as they have the power of efficiency from which they can take powerful and vital decisions for the sake of the company. Honda use powerful and intact Information Systems (IS) to take powerful and timely decisions for their demand and supgly functionality.
Next Steps of Honda
Honda has a clear cut strategy in terms of manufacturing, as they are not running after revenues and profits (Taylor and Dudbridge, 1999, pg.67-123). The thing which matters for Honda is the effectiveness of their operations with competition. Honda initiated a “First to get it Right” policy from the very early for of their operations which is one of the most important and volatile strategies that associated with an organization, and Honda is in the queue to initiate this strategy with their perfect lean manufacturing capability and capacity Standridge, Miller and Pawloski, 2010, p.56-90).
With the help of this particular policy, the stance of getting the things in the right manner will become possible for them, and it is also enables them to compete some largest automobile manufacturing companies of the world with a positive mindset and attitude. First to get it right policy is very important policy for an organization who wants to get one step ahead over its major competitors, and it is equally apglied over the workings and workability of Honda, as the company researched very hard to reach on a final conclusion to launch such a product in the market (Zylstra, 1988, pg.67-90).
After apglying the lean manufacturing system and the IS of JIT, Honda became able to manufactures the product according to the core demand function of the consumers (Zylstra, 2006, pg.12-45). Meeting the customer demand is not an easy asked for the management and the companies; however Honda is doing an exceptional job as far as fulfilling the demand of their customers through powerful research and executions. Toyota is also found very elegant and perfect as far as managing the wastes and mitigate their cost of production accordingly, but the company launches the products so often, which sometimes didn’t comply with the demand of the market (Ohno, 1988, pg.67-90). Corolla X was one of the disasters for Toyota as the model was totally failed because it was launched in the market without any prior decision and research, and it was not complying the standards which the customers were expecting from Toyota. Lots of buyers are now diverting their minds towards the utilization of Honda from Toyota merely because of their innovative products and comparatively lower prices in terms of luxurious cars than any company of the world operating like the same.
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