An Important Aspects of Lean Approach in Manufacturing Industry - Literature review Example

? Literature review The following review concerns three important aspects of lean approach in manufacturing industry in general, ly, mass customization, Generation Y and information technology. Various researches and theory related to these three aspects will be explored before concluding with key findings and the possible link between these three elements as per understanding gained from the review. 1. Mass customization in manufacturing: According to Tseng and Jiao, mass customization refers to the production of goods and services according to individual customer’s needs while maintaining high mass production efficiency and saving costs and resources for the firm1. Sissonen’s research based on the fact that large-scale production systems usually employ mass customization processes and activities with large configurability, requiring highly sophisticated approach2. They argue that lack of mistake-proofing or low level of mistake-proofing can result in too many or severe quality issues in mass production systems. However, Da Silveira, Borenstein and Fogliatto argued that it should also be noted that mass customization cannot be adopted for all types of products, processes or consumers3. The ability to identify reasons for mass customization is important from managerial perspective in order to reinforce predictability of demand, which will eventually spell the success of the product/business. Kaplan, Schoder and Haenlein built their research on Frank and Piller’s proposition that mass customization from a consumer’s perspective has critical implications for managers and the business because this decision usually depends on two factors: the value customers gain by using a mass customized product relative to their needs, and secondly, the returns of a process design that gives optimum results4. Squire et al.’s point that highlights price, quality and technical attributes as the most probable value-creating criteria that determine the need and demand for mass-customized products and processes is indicative of the need for mistake-proofing. Mistake-proofing therefore adds great value to the effectiveness of mass-customization in terms of profits, quality, and business growth5. Examples of mistake-proofing in mass-customization6: a) Machinery with warning lights to highlight improper positioning or usage of parts; b) A device to count the number of holes drilled in a work piece to indicate correct/incorrect number of holes drilled; c) Double verification of passwords in IT systems; d) Signals to indicate open or improperly closed doors in cars etc. e) Automated checking and saving Microsoft Office documents. These examples indicate the application of mistake-proofing in mass-customization from product, process, and consumer perspectives. Evans highlights Chase and Stewart’s point that mistake-proofing in mass-customization for services sector should account for both customers’ and service providers’ activities7. Mistake-proofing methods must be set up for various activities involved in providing a particular service, which is characteristic of service industry. For instance, a banking service might provide various facilities to their customers for the same product, like withdrawal of money from ATM, direction transaction with bank, phone, cheque book etc; each of these multiple service options will require efficient mistake-proofing techniques to prevent errors, frauds and losses. Although the error-free activity is the responsibility of the bank, its liaison with manufacturing units is inevitable and the mistake-proofing techniques provided in some of these services are usually fixed by the manufacturers. For instance, for ATM machines to indicate error/fraud, mistake-proofing tools, such as warning lights/signals, need to be incorporated during its manufacturing process. According to Swaminathan, factors in general that necessitate or support mass customization obviously include large scale production and predictable demand, similar products, similar processes, and cost-reduction8. Effectiveness of mass customization is to a certain extent also dependent on human intent, which means that an individual’s attitude, behaviour and intention are very important for efficient use and application of technology for customization, as explained in the theory of reasoned action by Ajzen and Fishbeiin9. Kaplan et al., further extend this theory to the rationale of technology acceptance model (TAM) by Davis that explores the user acceptance of information systems10, which eventually replaced the notions put forth by earlier theories. The TAM identifies two critical constructs, namely, perceived usefulness (PU) and perceived ease of use (PEOU) that influence behaviour and action of individuals; the PEOU has an indirect influence on individual behaviour and also perceived usefulness. Mass customization is employed as it provides low-cost production capabilities including the benefits of high variety as well as customization of goods in order for manufacturing businesses to gain competitive advantage in terms of profits, time, customer satisfaction etc11. However, such demands usually put immense pressures on various other units associated with the manufacturing processes, such as supply chain, operations or production workers, quality department etc. Multiple methods of mistake-proofing required for a particular product or process can incur higher costs for the business, and also more time and advanced skills and knowledge. To the issue of work pressure and demand pressure, Swaminathan recommended various predictability measures as well as standardization and modularization of products12. 2. Generation Y in manufacturing: In the context of generational workforce, Mlodzik and DeMeuse define generation as ‘a group of people or cohorts who share birth years and experiences as they move through time together’13. Business and management has seen immense change through the past years, which to a certain extent can be attributed to the attitudes, ideals and values of employees. The general groups of generations identified in literature include four, as depicted in the figure below: Figure 2.1 Generations of workforce14 The bygone groups, referred to as the Generation X and the contemporary groups, referred to as Generation Y have had profound impact on work and workplace15. Mlodzik and DeMuse attribute a variety of reasons for the different characteristics exhibited by each of these generations. Most importantly, they point at the lower commitment levels shown by Gen Xers and the Ys towards their organisations compared to the previous generations; and motivating factors such as accomplishment, professional growth and learning are characteristic of the Ys, compared to job satisfaction, flexibility, growth, and long-term marketability of the Xers. Research indicates that the Gen Y spent most of its time in social networking and communicating, and has maximum exposure to information16 Waxer identifies that the work ethics and values also vary between the generations. Preferences of work nature also varied among these generations; for instance, manufacturing sector experienced highest numbers of workforce during the Generation Xers’ time, which were eventually lost due to globalization17. Tulgan’s research identified six main factors that would be affected due to the changing generational characteristics, which might have serious implications for the business; these include18: i. Greater demands of work on employees. ii. Less hierarchical structures and greater transactional relationships between employers and employees. iii. Avoiding long-term employment relationships by employers and employees. iv. Lesser employee confidence in long-term rewards and greater expectations from short-term rewards. v. Greater significance given to immediate supervisors. vi. More time and skills required to supervise employees. Other factors that Schramm and Burke attribute to these changes and differences in generations of workforce include advancing technologies, increasing impact of social media and communications, immense competition, changing expectations and life demands, population shifts, changes in regulations etc. These factors are in turn influencing organisations and business in the form of increasing demands for products/services, efficiency, cost-savings as well as higher quality. Globalization resulting in increasing cultural differences and the need to deal with these differences for managers has propounded greater challenges like diverse skills, competencies, and attitudes19. Chase’s work identified that most of the Xers and the Gen y employees prefer the service sector compared to their previous generations, which could have caused serious damages to the manufacturing sector. This is confirmed with Sankey’s news report that highlights the need for employing more numbers of Gen Y workers and the issues affecting manufacturing industry in Canada. Sankey points out that the Gen Y workers prefer flexibility and creativity, which employers must be willing to provide in order to employ the highly talented Gen Y20. Researchers advise that organisations must put serious efforts to hire employees of all age groups because of the diverse attitudes, commitment, learning and experience that each of these age groups bring. Sharing these attributes will help in leveraging each other’s innate skills and uplift the entire organisational value21. On the other hand, Putre also points out that multitasking abilities and the energy that Gen-Y employees possess can offend other generation employees, especially in the usage of technology. Understanding related to commitment differs among generations; for instance, the Xers readily take up work-related activities or issues while they are off work unlike the Ys who prefer to be completely off work after work timings. Moreover, the younger population has more energy and enthusiasm to work long hours unlike the Xers or Baby Boomers. Rubinger identifies that the Gen Y employees are more exposed to technology and tools that strengthen collaboration across cultural, physical and demographic borders, which is the need of this hour in globalized world22. Rubinger asserts that the Gen Y employees are most suited to deal with the pace of activity that is required for organisations to thrive and succeed, which necessitates their employment in technology-dependent industry. He identifies four critical factors of contemporary businesses: firstly, advanced processes for repeatable activities that require training, zero defects and continuous improvement; secondly, selection, implementation and maintenance of efficient equipment and processes; thirdly, mentoring and reporting activities; and lastly, application of statistical methods for future improvements23. Rubinger adds that All of these activities require communications, which the Gen Y employees have high accessibility and advanced skills to apply suitable technology as well as make use of the available technology24. Rubinger’s observations are echoed by Fairfax who foresees that the Gen Y employees have the potential to turn lean manufacturing on its cyber ear, which will change the complete viewpoint and also ways of manufacturing25. Both, Rubinger and Fairfax point at the inevitable visual aspect involved in lean manufacturing, which will act as an advantage to the Gen Y because of their efficiency in using visual technology and also the ability to develop and apply visual systems and technologies in lean settings. The visual controls and management practices are especially favoured in standardization and mistake-proofing methods to obtain process transparency that facilitates easy communication and efficiency26. Monden explained that visual controls in poka-yoke devices usually comprise instruments for detecting errors, restricting errors or flow of process in case of erroneous activity, and/or signals to warn about errors27. In his article, Rubinger points at various other researchers and engineers’ experiences and viewpoints of transferring and translating these mistake-proofing methods to latest technologies used by the Gen Y, thereby obtaining greater efficiency with ease28. 3. Role of IT in manufacturing: Information technology refers to the combination of tools and techniques using computers and other technological framework that will assist in faster and far-reaching communication, safe and secure systems, information storage and retrieval as per requirement29. Application of information technology (IT) in manufacturing is well known as an element to support processes in order to meet the constantly changing demands from process and customer perspectives. Information technology has enabled simplification and alteration of manufacturing processes core designs; recommended new production strategies like mass customization, lean manufacturing, etc; and in predicting the impact of change on operational constraints such as capacity and resources30. Overall, the impact of information technology in manufacturing industry has been experienced in cost reduction, productivity and quality aspects, with the rate of change only accelerating with time and evolving IT systems and applications. Ake et al., opine that the role of IT has penetrated into almost every component and activity of manufacturing industry, beginning from strategizing to product delivery and servicing. They assert that most of the productivity and efficiency improvements along with profits have been due to the impact that IT brought to manufacturers. IT systems assist in better supervisory control along with data acquisition that helps in eventual improvements, decision making and also cost reduction31. Theorists argue that application of information technology largely depends upon users’ intention and attitudes32. Practically, poka-yoke systems that use automated signalling or visual controls to prevent errors and faulty outputs use the concept of building automated rules into information systems to facilitate mistake-proofing activities33. The use of IT in integrating poka-yoke systems in service-oriented processes is much greater than in manufacturing processes. In either case, usage of IT in building mistake-proofing techniques can find special application in addressing issues of forgetfulness by popping up information related to the ideal process; by helping in avoiding misunderstanding by having a provision for ready-reckoners for information related to processes, tools, resources etc, which will also help the inexperienced workers; by highlighting inadvertent errors caused due to any reason; and by hampering the process for incorrect procedures being followed and for ignoring the rules of standard. Howard, Powell and Vidgen explain that in the automotive industry, changing trends such as mass customization, reduced inventory and build-to-order processes have all necessitated effective communication locally and globally, which in turn depends upon information systems and information technology. They also assert that information systems are required for implementing effective visual controls and also to enable local communication34. I must be kept in mind that these applications of IT are only very few and revolve around mistake-proofing activities; nevertheless, the role of IT in automotive manufacturing is myriad and continues to evolve. However, the challenges involved in effective application and implementation of IT in this industry again relates to skills and knowledge levels of employees, organisational support for innovation and experimentation, as well as employee attitude towards innovation and implementation. As seen earlier, the previous Generations of workforce is either aged and/or lazy and confined to conventional thought-process and knowledge and least interested in innovating or experimenting unlike the Gen Y that is constantly charged up to try new things; the latter group in the present era requires immense support from management besides resources and investment in order to champion new and revolutionary technologies35. 4. Conclusions: To conclude this review, it would be appropriate to opine that lean approach has not only its application in cost, wastage and time reduction in manufacturing but has also given birth to various innovative approaches that have improved efficiency and have further added value to customers and the businesses. One such approach is mass customization, which finds wide applicability in standardized products, processes and services. Mass customization adopted in service industry is actually implemented or, in other words, originates during manufacturing of products used for the services; secondly, mass customization provides immense low-cost capabilities, which is largely beneficial in lean approach. However, efficient implementation of mass customization largely depends upon the perceived usefulness and perceived ease of usefulness by the workers. In addition, the manufacturing patterns are largely influenced by the attitudes, behaviour, commitment, values and habits of generations of workforce. Present generation referred to as the Gen Y is regarded as aggressive, innovative, impatient and technology-savvy, which can be advantageous to the current global trend such as increasing competition and changing customer expectations; however, this suitability can be advantageous only in conducive work atmosphere and organisational culture. Thirdly, information technology is the most important component of any lean approach and finds widest applicability in manufacturing and service sectors, especially to store, retrieve and use data and information for effecting continuous improvement, which is critical to lean approach. Specific to poka-yoke, the three aspects reviewed, i.e., mass customization, Generation Y and information technology, can be strongly linked. Information technology will facilitate mass customization by providing information related to past performance, customer demand and potential for improvement; Generation Y’s aggressiveness, innovative thinking, attitude and inclination towards technology can be advantageous in identifying and creating new mistake-proofing techniques as well as introducing newer mass customization methods. In all, human intent and attitude are most important for effectively harnessing technology and human capabilities. Bibliography Ake, K, Clemons, J, Cubine, M and Lilly, B, Information technology for manufacturing: reducing costs and expanding capabilities, CRC Press, Florida, 2003. Daft, R.L., The new era of management, 2nd ed, Thomson Higher Education, Ohio, 2008, pp: 36-67. da Silveira, G, Borenstein, D and Fogliatto, F.S, Mass Customization: Literature Review and Research Directions. International Journal of Production Economics, 2001, vol. 72, no 1, pp:1-13 Evans, J.R, Quality and performance excellence; Management, organisation and strategy, 6th edn, Cengage Learning, Ohio, USA, 2010. Fairfax, J, Lean manufacturing adopts Gen Y communications, Kitchener Executive Consultants, 11 March 2013, Retrieved on 02 May 2013 from, http://kitchenerexecutive.com/lean-manufacturing-adopts-gen-y-communications/, Friedman, B.A., Globalization implications for human resource management roles, Employment Response Rights Journal, 2007, vol. 19, pp: 157-171. Hahn, G.J. and Doganaksoy, N, The role of statistics in business and industry, John Wiley & Sons, New Jersey, Ch.12. Howard, M, Powell, P and Vidgen, R, Automotive industry information systems: From mass production to build-to-order, Automotive industry information systems, Idea Group Inc, 2006, p.89-102. Kaplan, A.M., Schoder, D and Haenlein, M, Factors influencing the adoption of mass customization: The impact of base category consumption frequency and need satisfaction, Journal of Product Innovation Management, vol 24, 2007, pp: 101-116. Liker, J.K, The Toyota Way: 14 Management principles from the world’s greatest manufacturing, 2006, McGrawHill, New York. Mlodzik, K.J and DeMeuse, K.P, A scholarly investigation of generational workforce differences: Debunking the myths, Korn/Ferry International, California, 2009. Retrieved on 01 May 2013 from, http://www.ihrim.org/Pubonline/Wire/Sept12/ScholarlyInvestigationofGenerationalWorkforceDifferences.pdf. Putre, L, Generations in the workplace, H&HN, 2013, pp: 26-31. Retrieved 27 April 2013 from, www.hhnmag.com. Rubinger, J, Lean manufacturing adopts Gen Y communications, Material Handling and Logistics, 2012, p.21-24. Retrieved on 01 May 2013 from, www.mhlnews.com. Sankey, D., Manufacturing sector needs to attract Gen Y, The Calgary Herald, 13 August, 2012. Retrieved on 01 May 2013 from, http://www.vancouversun.com/life/Manufacturing+sector+needs+attract/7082577/story.html. Sissonen, J.T, Poka-yoke for mass customization, Department of Industrial Management, Faculty of Technology Management, Lappeenranta University Of Technology ,UK, 2008, Retrieved 28 April 2013 from, http://www.doria.fi/bitstream/handle/10024/38737/nbnfi-fe200806061524.pdf. Srinivasan, K and Jayaraman, S, The changing role of information technology in manufacturing, IEEE Computer, vol. 32, no. 3, 1999, pp. 40-49. Stoyles, P, Pentland, P and Demant, D, Information technology; Science issues, MacMillan Education, Australia, 2003. Swaminathan, J.M, Enabling customization using standardized operations, California Management Review, vol. 43, no.3, 2001, p.125-135. Tseng, M.M and Jiao, J, Mass customization, in Salvendy, G (ed.) Handbook of Industrial Engineering, 3rd edn, Wiley, New York, pp: 685-710. Zerenler, M & Ozilhan, D, Mass customization manufacturing (MCM): The drivers and concepts, Journal of American Academy of Business, vol. 12, no. 1, 2007, pp: 262-269. Read More