Shift from mass production to lean production in craftsmen industry - Thesis Proposal Example

 Will a shift from mass production to lean production in craftsmen industry lead to the growth of an organization? Background of Research Productionof handicrafts and Craftsmanship can be traced back to the starting of civilizations when items were made to persuade rudimentary human needs. Because no prevalent currency was being used, items were swapped for items, also known as the barter system. Each product was private in abundant separate ways. The introduction and use of money altered how goods were produced, circulated, and marketed (Stewart 2005). As the number of manufacturers increased, so did the possibilities for purchasers to make choices. Excellence, stability, aesthetics, ergonomics, and price, to talk about a couple of, became some basic criteria for variety of goods by customers. In the last 400 years, producers have utilized distinct kinds of production techniques to make their output worthy, persuade their clients, break even, and make a yield. These jobs have not been so straightforward for producers. In the last cited piece of the 18th and 19th centuries, Eli Whitney finalized his transcendence of components as an outcome of employed methods, easiness, and most significantly, the growth and utilization of appliance tools (Womack, Jones, and Roos 1990). The alteration into a lean method of production has more often than not been advanced from a mass manufacturer viewpoint. However, mass output is not the only requirement a business can have (Liker 2004). Many European businesses focus on home wares output to make tailored products for their customers in little quantities. If they conclude to apply lean methods, the distinct requirement has a great concern. The waste-elimination notion of producing in the lean method has conveyed important influences on diverse industries. Frequent devices and methods have been evolved to undertake exact difficulties in alignment to eradicate non-value-added undertakings and turn out to be lean. When the producers started thinking about taking up the leaner procedures, they did not pay much attention and the concept lost importance. Several metrics of lean production have been evolved for assessing the presentation and following the improvements of lean manufacturing systems. However, if we look at each metric individually, focusing on an exact presentation facet will not comprise the general leanness stage (Elliott 2004). On the other hand, people practicing lean methods usually employ self-assessment devices to portray the present rank of their arrangement. However, reviews are prejudiced, and the predefined lean stages of a questionnaire may not adjust every scheme perfectly. Overview of Avandad Trading Company Solid surface fabrication and installation needs a particular knowledge and ability. “Avandad is the first company to have introduced the solid surface products and services into Iran. It is at present dynamically involved into fabricating “solid surface products such as kitchen counter tops, bathroom sinks, commercial counters, etc” (Tab 2009). Avandad was formed in 2003 and in endeavor to present excellence in products; Avandad has selected Polystone as its strategic associate and foremost provider of material. Polystone are renowned and trustworthy solid surface producers, providing to North America and Asia. Avandad’s players has been chosen from the best craftsmen and been taught by the capable trainers from the abroad and are advanced with the newest solid surface techniques and knowledge (Tab 2009). Keeping in mind their craftsmen and their efforts, Avandad needs to think about its efficiency and cost cutting. My outlook of lean production is that it is an attempt to eradicate waste and maximize profits. If the material cost proceeds up by some moving of amounts more than that much cost should be profited somewhere in the whole scheme in alignment to support the shift. We labor with the identical problem. Much of it is hard to assess precisely without expending too much time assembling facts and numbers and analyzing (Elliott 2004). Research Objective The dissertation examines the effects of shifting from traditional styles of production to lean methods of production. Literature reviewed comprises of theories revolving around the companies’ decision making, the reasons and outcomes of the implementation of lean manufacturing in Avandad Company. The research also discusses some strategies for companies which if employed can be fruitful for themselves. The methods of the research entail data obtained from secondary sources and from questionnaires to recognize changes related to lean production patterns. Research Aim The study is founded on a tailored method compared to mass production of stabilized products. If the set about had been to easily imitate lean production in this natural environment of Avandad Trading Company, it would have been an exercise in disappointment. In comparison, by comprehending the genuine position in large minutia and then supplely applying the values that characterize lean production, it might be likely to basically change this craft-based production into a far more creative and profitable procedure. The ethics of production and team engagement in removal of contingencies will be utilized, but the way they should be applied will be modified to fit the natural environment and the peculiar aspects of the organization. The study shows that lean method entails taking into consideration employees and methods directed at conceiving a high-performance discovering organization. Conclusions are made about the effects of lean production on the production capacity of companies with regard to the volume of time, material and labor utilization. Research Questions The research will conclude to answer the following research questions: 1. What are the impacts of moving from mass production to lean production? 2. How does lean production help manufacturers to lessen the impact of market pressures? 3. How will this transformation help Avandad Inc. in achieving its strategic objectives of providing the best product in lowest cost? Significance of the study The dissertation is especially paying attention to examination of the companies’ actions changing due to increased cost of production. The thesis deduces a figure of suggestions, which were extracted from the conducted secondary and primary research. The developed thesis outlines a variety of thoughts that companies can put together in their production methods in order to achieve their goals successfully. Literature Review As manufacturers advanced on Eli Whitney's expertise of interchangeable components, there was a certain affray started to propel constructing activities. What were not significant were facets of production that did not engage machines. If components, appliances, capital, and persons are integral components of the production method, then it is significant to gaze at every separate activity (Chin 2003). This became likely when Frederick Taylor presented the method of Time Study, Standards of Work and Management in the last cited part of the 1800s to the early part of the 1900s. Frank Gilbreth presented the Motion Study. These expansions have amplified the undertakings of constructing after the concept of appliances and devices to the comprehensive notion of association and organization. This new notion provided increase to the mass production by Henry Ford in 1900s (Womack & Jones 1996). This was an important accomplishment just before the Second World War Products could be produced in huge amounts, thus decreasing their cost at the same time. Henry Ford made vehicles that were inexpensive to the common community because of job specialty by employees and the relentless or mass output of an exact product. By technology the mass production or craftsmanship, Henry Ford made outdated the previous production styles of accomplished craftsmen. With the publication of The Machine that Changed the World (Womack, Jones and Roos 1990) the advantages of thin values have been broadly documented. The dwelling of lean production method is the Japanese car industry, and observers constantly called Toyota as the prodigy of Lean Production (Womack and Jones 1996). Japanese vehicles are constantly suggested as being the best cars available as evident in many magazines and catalogues. Further expansion was witnessed with Edward Deming's theory of TQM, which connected the value of a product to the capability of company’s quality development. Perhaps discovering from the knowledge of all production monsters, Toyota evolved its TPS or Just-In-Time No Inventory Production. Development in both expertise and administration methods proceeded in the production industry, with mechanization and the advent of computers playing a foremost position (Allen 2000). Frederick Taylor and Frank Gilbreth farther examined production methods for instance waste, efficiency, and competence. Toyota Motor Company constructed on these pains and developed a notion of lean production. The aim was to conceive a production environment that is propelled by requirement of the product and that retains only a little allowance of inventory all the time (Bacheldor 2004). Craft, Mass and Lean A thriving way to come to an comprehending of thin output is to contrast it to its ancestors: craft production, glimpsed as the output scheme of the late nineteenth 100 years, and mass output, glimpsed as the production scheme of the twentieth century. So far, investigators have often neglected the connection between the genuine position of a business (being a home wares vs. a mass producer) and the directed aim to become a thin producer (Elliott 2004). With this study, we overwhelm the living need in study by matching a home wares and a mass output beginning issue and drawing from propositions displaying which components have to be taken into account while revising the transformation of thin of a home wares associated business and a mass producer. We thus contrast the obstacles of the transformation from mass to thin, with an in-depth lone case study which displays the implementation of thin from a home wares associated output precondition. Literature presents clues for the assumption that altering from home wares to thin necessitates distinct steps than altering from mass to lean. Comparing the recognized trials a home wares and a mass manufacturer have to face displays the influence of the route dependency and the significance to address this route dependency while revising the transformation to lean (Attia, Seaker and Raathod 2004). Comparing the recognized trials a home wares and a mass manufacturer have to face displays the influence of the route dependency and the significance to address this route dependency while revising the transformation to lean (Bacheldor 2004). The publications on the implementation of thin output are often implicitly or specifically concentrated on the transformation from a mass manufacturer to lean. This is founded on the detail that thin output has its source in the automotive commerce where mass output was common. Nevertheless, the review experiment of Shah and Ward displays that the businesses applying thin output today arise from diverse industries. In this study task, we pursued the inquiry if businesses from a home wares associated output setup and mass manufacturers face alike trials throughout the transformation to lean manufacturing or not. Proponents of lean production showed considerable improvements in the elements such as waste, eradication of excess stock, increase of revenues (Kumar and Yin 2004). It furthermore takes into concern workplace association and administration, change management, and prices (Chaneski 2005). It is these general advantages that have prepared the world to accept that Lean Theory of very attractive in an analogous setting. Traditional or customary methods are constructed on the standard of economies of scale. The large repaired charges of output are prone to intense depreciations due to heavy investments of capital and large volume of production. The cost of production is dispersing over large output dimensions to curtail the total cost of production (Sullivan 2002). Globalization is demanding and all production activities in the industry are heavily competing, declining the associated costs, and make profits. Leanness is evolving a rapid recognition for itself, because diverse methods of production have been incorporated into a lean theory. Companies of all dimensions and metaphors are applying this method to decrease waste and charges that in no way add worth to the merchandise from the customer's issue of outlook (Phelps 2004). The scheme makes superior-quality goods in an appropriate latest tendency at the smallest likely cost in a supple manner through a method that usually starts with meeting components that can transform output quickly, so goods can be constructed in larger kind in a nearly personalized latest tendency with no cost retributions for low volume manufacturing (Black 1995). Generally, companies seek a number of key competitive advantages from a lean manufacturing approach. At a time cost reduction was the clear perceived benefit and was three times greater than the second highest benefit of better delivery times (Tinham 2005). The picture in 2004 was somewhat different. The reduction in costs dropped from first place to third place while the removal of waste had climbed to second, which perhaps signals that there was a much better appreciation of lean tools and techniques (Tinham 2005). The benefits that companies associate with the term lean manufacturing have certainly changed the overwhelming benefit was perceived as a reduction in costs, followed by better lead times and increased efficiency (Black 1995). The top three benefits were improved efficiency, removal of waste and reduced costs. It seems that as a company's knowledge and understanding of lean improves, they begin to more fully appreciate that lean offers much more than an approach for just reducing costs (Sousa 2003). Lean manufacturing is a philosophy that requires the upfront briefing and training of management and staff, therefore, there is often a delay between the start of lean and the evidence of the first savings. It is advisable to instigate some form of monitoring system that is capable of monitoring and measuring savings. It is interesting to see what progress has been made to becoming a lean company over the period 2002-2004. As a result, there are some contradictions, as the number who maintain to be very close to attracting lean was slightly down and the number who claim to be quite close to becoming lean was very little. Maybe this was because companies did not fully appreciate that lean is a continuous philosophy (Tinham 2005). The perceived benefits of lean have evolved from a basic desire to reduce costs, to a more systematic approach to becoming more competitive. In 2004, the top two perceived benefits were to improve efficiency and processes, and the removal of waste. Large companies are still the main adopters of lean manufacturing and this may, to some extent, be because they have the infrastructure, such as training programs, in place to support it (Tinham 2005). The barriers to the acceptance of lean have remained much the same over the period. Both the 2002 and the 2004 lean surveys flag up company culture and the attitude of staff as the main barriers. Together, these indicate that the level of staff engagement is not at a sufficiently high level for lean to be accepted or sustained (Chaneski 2005). There are, however, some encouraging signs that the importance of the 'soft side' of lean is beginning to be more fully understood. Investment costs were also identified as a major barrier to lean implementation but it is not clear if this relates to capital investment, such as equipment, or revenue spend, such as training and consultancy. There is evidence that companies are giving much more thought to the implementation of lean with the use of specialist consultants, internally trained lean coaches and help from government agencies. The benefits that the discipline of a lean manufacturing approach brings to improving competitiveness are beginning to be understood more fully by companies (Allen 2000). Ninety per cent of companies reported that they had made tangible cost reductions, although one third reported that they were unable to quantify the benefits that had been achieved. Lean Manufacturing indicates benefits identified in 2004 namely reduction in costs, increased efficiency, shorter lead times, reduced waste and increased profitability which is more than the ones identified in 2002 (Chaneski 2005). Perhaps the most encouraging indication in lean manufacturing is that lean is seen as the best approach to improving productivity. This progression in the process and application of lean is testament to the rapid rise in its use as one of the best vehicles for a robust continuous improvement process (Liker and Meier 2006). The majority of manufacturers now appreciate that lean is important, if not essential, to the future prosperity and competitiveness of their companies. Why Think Lean and Not Conventional Manufacturing? In the past, when manufacturers were faced with falling sales, they rapidly looked to downsizing the workforce to decrease overhead charges for example employee advantages and wages, while expending more on advocating to come to more promise customers. However, such resizing and restructuring does not habitually explain the difficulty of affray on an enduring basis (Bacheldor 2004). When an commerce will not contend competently, the difficulty may not inevitably be an topic of wages and advantages, but could be the value of its goods, inventory and provide difficulties, pointless gear costs, consignment difficulties, over-processing, poor worker administration, or the constructing method, amidst numerous other associated issues (Kumar & Yin, 2004). In the U.S. for demonstration, some constructing businesses in latest times have been downsizing their workforce, decreasing advantages in some situations in alignment to decrease the cost of output and contend effectively (Black 1995). Other businesses have shifted to nations where output charges are much smaller due to reduced salaries and advantages paid to workers. Even with these schemes, some constructing businesses still have not endured the affray, while some businesses inside the identical comparable natural environment are managing very well. Although thin notions are not the response to all constructing difficulties, most businesses that taken up the thin scheme are describing boosting results (Kumar and Yin 2004). Applying the thin notion needs restructuring and reinventing every facet of a company's output and administration processes. Thinking thin can be a substantial dispute for any commerce, not because it is tough but because of matters that have more to manage with persons, commerce heritage, change, and seen general efforts (Tinham 2004). For demonstration, a business may have shifted from an expert-based ergonomics scheme to a culture-based scheme where every individual realizes and bears some blame for the output process. This entails all employees are acquainted and empowered to make improvements befitting to their grade of allotted blame (Smith 2003). It is a tough topic for highly accomplished and older grade administration staff to stop a significant facet of their blame to all employees in their unit. Of course, managing so will need heritage change on the part of management. As schemes set about, all methods that consign worth and all methods that support the consignment of worth should be integrated. Skipping any stage of the method will render the scheme ineffective. Management, mechanical constituents, and value-adding undertaking should be balanced, combined, and synchronized in a constructing scheme (Alien 2000). The thin notion should proceed after the restructuring of one or two identifiable flats of the output method, and continue to all facets of the industry. Manufacturers of large and little commerce all over the world have applied the thin notion with important success (Elliott 2004). Research Methods Theoretical framework Through the nature of our research we propose an exploratory approach for this research. Exploratory research provides insights into and comprehension of an issue or situation. In our case the qualitative data that is gathered through review of related literature and survey questionnaire which will undergo our proposed research method for formally are concluding the perspectives of this research which is whether transformation of mass techniques into lean will be advantageous to the craftsmen industry or not (Patton 2002). Proposed Research Methodology We can outline two different research approaches, which can be used in the current dissertation – deductive and inductive. A deductive research approach is recommended to be appropriate for logical research, where the researcher has to develop a hypothesis and test it thus finally examining it and formulating a theory. Additionally, the inductive research approach proves to be more flexible, providing the researcher with a chance to modify the research importance depending on the collected conclusions during the research procedure. In the current study, as it aims to create research questions and through the significant assessment of concluding the findings of the answers to these questions it can be recommended that the present research used will be an inductive one (Patton 2002). This inductive approach will be undertaking the grounded theory of research strategy. In this manner, the researcher will mainly focus on hauling out information through exploration in the current and past literature. The current research proposal is suitable as it is found to be suitable for inductive reasoning or appropriate to explore backgrounds which aspire to progressively answer the research questions. Even though the current research will be basically prejudiced by the grounded theory, the research consequently will take on a primary strategy of interviews to gather data (Patton 2002). Data Collection Method In this research, it is certain that the data will be collected through both secondary and primary sources. Secondary Data The secondary data is gathered from multiple sources. This includes the academic sources. The use of this secondary multiple source data helps the researcher with a chance to formulate an objective and logical study. Also included in this secondary data is the commercial data which entails the outlining current conditions, which are probable to confront the academic ensembles. Primary Data In this research we combine secondary and primary data in the same study. The primary data is hauled out through unstructured questionnaire with open ended questions. Unstructured questionnaires are known to be an apt data collection technique as the information they disclose matches up to the researcher's plan of examining, construing and reacting to new appropriate insight rather than attaining any overviews which are like a law. This is why questionnaires are an ordinary data collection technique in this investigative research processes. Sampling Sampling in primary research process is used for making achievable the results which the researcher deems appropriate for the particular exploration. Sampling is of two types; probability and non-probability. The sampling method in the present dissertation is non-probability sampling. This can also be called the judgmental sampling. This type of sampling is helpful in achieving the desired outcome in an exploratory study like the one required in the present research. The interviewer will question 2 respondents from Avandad Company who are directly involved with the production strategy development. In the present context, the Production Manager and Quality Assurance Manager of Avandad Company will be the target respondents. Structured Content Analysis Content Analysis aims to disclose worldwide differences in statements and recognize the purpose, focal point or statement trends of a person, cluster or organization which are included in the sample. In this research as mentioned above, the questionnaire results will be presented one by one and then commonalities will be pointed out among the two. Content analysis will then move on to authenticate the conclusion of the research by comparing the deductions of the questionnaires with the literature reviewed. Discussion and Analysis Our research is coupled with a collection of responses from a questionnaire and previous literature in this area of study. Therefore there is a descriptive technique involved and the research will simply analyze the questionnaire responses and the literature in order to answer the case under study that is whether the craftsmen industry will gain advantage by taking over lean production. Research Limitations The researcher will use a broad range of entrenched, believable and modern academic and commercial literature sources. However, this list of academic sources will have to be limited keeping in mind the submission time for this research and there will be numerous other sources which could be used. In this admiration, the current study will be prepared through focusing on a selected number of literature sources. Lastly, the current study is completely reliant on company requirements, which creates definite research limitations. Although the researcher acknowledged incessant academic control and support, and was afflicted with a great wealth of academic knowledge, the thesis was carried out under various research criterions of companies, who are very skeptical about lean production and its results. This resulted in a great amount of restraints such as: time, size of the sample and literature resources. Conclusion The research aims to conclude how the production of standardized products has undergone numerous transformations at distinct times in historical concept, with each scheme integrating one or more values of another. The notion of lean production is not solely new, but is a singular effort by Toyota Manufacturing Company to restructure and reinvent all facets of constructing methods and organization. The concept of lean production tends to give out zero inventories thus eradicating waste at all levels of production, advancing the worth of products and services. In alignment to gain a comparable benefit whether Avandad Trading Company will be benefited by undergoing the transformation of its production methods to leanness. It is a significant truth that there are many advantages that firms experience with this transformation. Whether this system of production is only limited to improvement in processes or does it also affect positively the people of the organization. Whether craftsmen lose their jobs or have better opportunities to advance their skills is another conclusive point of this research. What are the difficulties of this method being implied what can be the effects on the culture of the company? All these secondary questions are aimed at clarifying the points raised by the research question and will also manage towards building a framework for Avandad to undergo the transformation successfully. Time Schedule Chapter 1: Introduction Chapter 2: Literature Review Chapter 3: Research Methodology Chapter 4: Findings Chapter 5: Conclusions Submission of Preliminary Report Submission of Final Report List of References Allen, J. (2000). Make lean manufacturing work for you. Manufacturing Engineering, 124 (6), 8-9. Attia, F., Seaker, R., and Raathod, J. (2004). A lean manufacturing educational model: Flexibility low-cost linking of manufacturing planning to customer requirements. Proceedings of the ASEE Annual Conference and Exposition. 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New York: McGraw-Hill. Liker, J., and Meier, D. (2006). The Toyota Way Fieldbook: A practical guide for implementing Toyota's 4Ps. New York: McGraw Hill. Mottershead, D. (2001). Introducing lean manufacturing at ESI. Proceedings of the Portland International Conference on Management of Engineering and Technology, (p. 448). Portland, Oregon. Owen, C. (2000). How to improve customer service while eliminating waste and implementing lean manufacturing. Paper presented at the IEE Seminar on Customer Focused Manufacturing-Flexibility and Responsiveness are Everything, Birmingham, United Kingdom. Patton, M. Q. "Variety in qualitative inquiry." In Qualitative Research and Evaluation Methods, edited by 3rd ed., 75-142. Thousand Oaks: Sage, 2002. Phelps, T. (2004). Building a lean supply chain. Manufacturing Engineering, 732 (4), 107-114. Shah R, W. P. (2007). Journal of Operations Management, 25 (4), 785-805. Smith, R. (2003). Growing an ergonomic culture in manufacturing. Journal of Engineering Manufacture, 217 (7), 1027-1030. Sousa, R. (2003). Linking quality management to manufacturing strategy: An empirical investigation of customer focus practices. Journal of Operations Management, 21 (1), 1-18. Stewart, N. (. (2005). Lean beyond manufacturing: Competitive advantage for the process industries. Proceeding of the Annual Conference of the American Institute of Chemical Engineers, (p. 3919). Cincinnati, Ohio. Sullivan, W. (2002). Equipment replacement decision and lean manufacturing. Robotics and Computer-Integrated Manufacturing, 78 (3-4), 255-256. Tab, A. (2009). Avandad Company. Retrieved May 27, 2010, from http://avandad.com/company.htm Tinham, B. (2004). Big-picture lean thinking is not always that easy. Manufacturing Computer Solutions, 10 (11), 24-25. Tinham, B. (2005). How to make your supply chain lean. Manufacturing Computer Solutions, 11 (3), 4-7. Womack, J. P., Jones, D. T., and Roos, D. (1990). The Machine that changed the World. New York: Rawson Associates. Womack, J., and Jones, D. (1996). Lean thinking: banish waste and create wealth in your corporation (2nd ed.). New York: Free Press. Read More