Advanced Manufacturing Approaches - Term Paper Example

Advanced Manufacturing Approaches 1. Describes the major features of the lean approach to manufacturing and manufacturing measurement. Introduction: Lean manufacturing is a leading manufacturing model adopted in various sectors. It is used for increasing the quality of products, diminishing production costs and for making quick delivery in it the market. The beliefs and techniques of this manufacturing concept focus mainly on building a study progress culture which would ensures that employees utilize resources efficiently with minimum wastage as will satisfy customer requirements. The processes and techniques utilized in this concept have resulted in better performance of employees as well to enhance the quality of products. Many case studies conducted in US have shown that the implementation of lean manufacturing has resulted in increased productivity with minimal damage to environment. One of the definitions of lean manufacturing is “Lean Manufacturing is an operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste” (Lean Manufacturing para. 1). By using this method the manufactures can increase profitability throughout their business and also ensure customer satisfaction. This paper also briefly studies about the Theory of Constraints (TOC). “The Theory of Constraints (TOC) is an overall philosophy developed by Dr. Eliyahu M. Goldratt, usually applied to running and improving an organization. TOC consists of Problem Solving and Management/Decision-Making Tools called the Thinking Processes (TP)” (What is Theory of Constraints (TOC) para. 1). This paper mainly focuses on lean manufacturing and the potential for its harmonious usage alongside Goldratts Theory of Constraints approach to manufacturing. More definitions and theories regarding the topics are discussed later. The first part deals with making a report which 1. Describes the major features of the lean approach to manufacturing and manufacturing measurement. The concept of lean manufacturing has achieved wide acceptance in the last decade. The fundamental of this approach is based on the performances of the Toyota Corporation as well as the Toyota Production System (TPS). The TPS manages logistics and manufacturing for the Toyota as it includes dealing both with the customers and the suppliers. TPS is associated with lean manufacturing. Considering the Theory of constraints, it is often compared to a chain with its weakest link. In every multipart structure, at some point of time, there occurs some element which constrains its capability to accomplish its perceived goal. The activities of the structure that would create limitations should be recognized and the entire structure should be controlled in order to a week links constrain. One needs to understand the relation between theories of constraints and lean manufacturing, as well as find out the management aspect of lean manufacturing, associated with TPS. In most companies where this management principle is put into practice, senior executives do not concern themselves with up to date functions or permanent improvements, as they are taken care by the quality of this process itself. It is applied in order to avoid wastage and to manufacture a perfect final product that will easily satisfy the customers. TOC is applied to overcome the weakest aspect of a team or an organization, and thereby sustain its performance well and give maximum results. While thinking more in terms of management literature, both TOC and lean manufacturing are interconnected as they are used to avoid the unwanted or non profiting activities. Various tools under lean manufacturing includes quick equipment switch, regular work, and pull methods are all necessary to generate flow. These strategies are superior to other methods by ensuring better performance in manufacturing world class products with satisfied clients. The main features of lean manufacturing are: Lean manufacturing has a round the clock check on uninterrupted supply of raw materials as well non-stop manufacturing with lowest wastage of time and materials . Its primary function is to endeavor to shorten the time taken by the company to transform raw materials into finished products that have quality value in the market. It helps organizations to methodically avoid wastage as they attempt to attain maximum quality, speedy delivery and affordable cost for their product customers. Lean manufacturing would be able to deliver superior products and quality services and ensures customer satisfaction. Less time is used when compared to traditional system of mass production, and also reduced manual labour along with fewer space and fewer capitals required. The term waste is frequently used in this paper, however, it is important to note that it is related with industrial waste. Wastage takes place mainly through: Excess production – By manufacturing, more quantity than demanded by the customer. Stock- The finished goods that has still not received any value into it. Waiting- Unnecessary wastage of time due to non delivery of goods. Movement- While undergoing manufacturing a procedure, some kind of avoidable delay due to labours or material resulting in to wastage of time and money. Transportation- Unwanted movement of parts or workers oby lack of proper management. Revision- Redoing of the work because it was not done properly or done wrongly in the first place. Excessive processing: The products remain in companies dealing possession as customer not willing to take delivery. All these are different kinds of “wastes” that occur during a manufacturing process, and Lean manufacturing method is used to avoid all these wastes and to deliver high quality products to ensure that customers to their satisfaction. “Lean manufacturing helps organizations to achieve targeted productivity and more by introduction of easy-to-apply and maintainable techniques and tools. Its focus on waste reduction and elimination enables it to be engrained into organization culture and turns every process into a profit center” (Lean Manufacturing: The Practical Approach to Productivity para. 2). Theory of Constraints has a link with Lean manufacturing, because the weakest link in an organization can cause a delay for achieving a set of goal and should be eradicated. These lean management styles should be applied in an efficient manner in order to make sure that all wastes are avoided and good results are maintained. The Theory of Constraints provides an integrated problem solving methodology that addresses not only the constraints but also solutions, for communication and collaboration that successful implementation requires. “They have been used to create powerful generic, "starting-point" solutions for various business functions, including Production, project management, distribution, supplier relations, marketing” (What is the Theory of Constraints? para. 3). Theory of constraints suggests that the aim is to increase profit, and to attain these possibilities are lessening inventory, and decreasing operating costs. Theory of Constraints and lean manufacturing is widely used in thousands of corporations. Because these theories have proved good of outcome, these are widely accepted and adopted around the world. The term lean management means the principles that are used for lean production. The basic thought of the concept of lean manufacturing is to diminish the wastages incurred in any form in the organization. The wastages of the firm can be minimized by adopting lean management principles, such as avoiding defects in manufacture as there is no utility of defective products. Besides, overproduction which leads to excess finished stock, improper inventory control and the inefficient production procedure etc may be avoided. The idea of Lean Management is developed by the Toyota Production Systems. The guiding principle followed by TPS reduces the time gap between the consumers order date and the delivery to the consumer. The 5S is an approach involving 5 steps which can be applied in all factories and firms to facilitate in the recognition of spontaneous stages required to control inventory, the work in progress and dispatch of finished goods. The 5S system focuses on the work place efficiency. It helps to create a steady atmosphere for implementing and continuous development in the organization. Lean Manufacturing and The Theory of Constraints are two accepted management viewpoints that have received wide appreciation in recent years. Their aims and underlying principles are same. “The TOC approach to measuring productivity and turns uses the same three fundamental measures—T, I, and OE. Productivity is measured as T/OE—in essence, the ratio between money generated and money spent. Meanwhile, inventory turns is measured as T/I—the ratio between money generated and level of investment required to generate it” (Moore & Scheinkopf 7). One of the advantages of the TOC approach is that it offers focus on a huge amount of data collected. It directs its practitioners to evolve their companies by problems on the constraints in maintaining profitability. In recent years, the concept of Lean manufacturing derived strength from the ways of successful Japanese automobile producer Toyota, it has also achieved popularity in the circle of manufacturing. It turns out to be globally recognized as a consequence of the reference in Womack & Jones book, The Machine That Altered the World. The Lean approach directs its practitioners to improve their companies by focusing on the removal of waste. Eliminating waste or losing the extra flab of excessive expenditure in an organization is an attractive proposition. On the other hand, in most companies the process of decrease of waste takes concerted attempt over a long period of time. Lean Management approach facilitates retail sellers in achieving the four main objectives, such as: develop excellence, getting rid of waste, decreasing the time taken as well as diminishing full amount required for the manufacturing of the goods etc. These objectives require a novel technique organize action, which is appropriate to businesses far detached from manufacturing. In this paper, more facts and information regarding Lean manufacturing and Theory of constraints are included in the on coming sections. 2. Discuss likely compatibility of the Lean versus the Theory of Constraints (DBR and Throughput Accounting) approaches and also points of potential contradiction. Manufacturing Approaches: The minute deficiencies and manufacturing differences can turn out to be very expensive for business organizations. Numerous organizations have started executing diverse lean development approaches to decrease manufacturing dissimilarities and deficiencies. The total quality management method focuses on decreasing disparity or variation in the manufacturing practice. To sustain or hold on the competitive marketplace, these approaches are vital whether or not the superior cost of manufactured goods is significant in the customary sense or not.  The phrase ‘lean production’ is primarily employed in the machine which changed the world. The new machine which changed the world has been coined by the collective team of the Massachusetts Institute of Technology (MIT). It was a joint synonym for the Toyota Production System (TPS). The team fulfilled the aim of successful production within a five-year worldwide exploration study concluding in the work that initiated the phrase “lean” to the engineering world. The learning evaluated the mass manufacture arrangement innovated by Henry Ford, completed exponentially by Sloan at General Motors, and accomplished by almost each key business in the globe.  Lean Theory:  Value is explained by the consumer. It is articulated in the uniqueness of the manufactured goods or repair (or both) that the client finds attractive. At an extremely fundamental level there may be more consistency, maintainability, and accessibility. At a superior level, worth could signify more than the availability, several functionalities, or eye-catching styling. The description of worth also relates to product blueprint objectives. The accomplishment of the complete lean manufacturing construction philosophy is neither fast nor easy. The inventors, Toyoda and Ohno, required 20 years to accomplish it in their organization. Despite the fact that the ‘template’ for others to do has been recognized, it is no simple task to basically change the method or product design and manufacturing. Reconfiguring from a perpendicularly incorporated supply chain to a straight one cannot also be achieved in taste or in a simple manner. Besides, incorporating the entire requirements may demand a lot of efforts and involve time. Not many companies have the persistence, fortitude, or resolution to pursue engrossing tasks of this magnitude. So it is no wonder that companies usually go for the lean manufacturing option, particularly because the big investment in-conveniences, apparatus and manpower represent fertile ground for recouping the costs. “The ultimate goal for a company that adopts lean manufacturing processes is to reduce waste. An average company will waste a significant amount of resources. In cases where the manufacturing process is outdated the level of waste can be close to 90%. By adopting lean manufacturing processes the waste can be reduced to around 25-35%. Lean Manufacturing processes can improve - Material Handling Inventory Quality Customer Satisfaction” (Murrey para. 5). Lean manufacturing: Five most important components essential to sustain the developing constituent of a lean manufacturing are the industrialized flow, association, procedure control, metrics, and logistics. On the industrialized floor, labor is separated into distinct cells which have the foundation on usual combination of associated responsibilities. “Manufacturing flow concerns the physical changes and design standards deployed as part of each work cell. Organization establishes people’s roles and functions, and trains them in new ways of working and communicating. Process control includes efforts to monitor, control, stabilize, and improve discrete manufacturing process steps. Metrics involves establishing visible, results-based performance measures, determining targets for improvement, and recognizing work teams for their process improvements” (Dettmer 9). Constraint Theory: Constraint theory encompasses the ideology/concept and tools. Much similar to the five main beliefs of lean production, TOC ideologies/concepts offer the general “navigational way” to make sure that corporation labors are aligned in the correct direction. TOC apparatus develops to please the four precise requirements mainly companies should deal on a frequent basis, problem-solving, production, venture management, and metrics. Theory of Constraints: During early 1980s, when America was awakening to the effect of the TPS on developed businesses, Eliyahu M. Goldratt had been concurrently investigating developing processes from a wholly diverse outlook. Goldratt, a physicist by profession, logically saw mechanizing as an essential element for a better system, as do Toyoda and Ohno. However, Goldratt concluded with a similar end by inquiring a diverse set of queries. The set of constraints has further been treated as chains and the chains have been found useful. The chains are the symbols of the interdependency and they also exhibit the various possible outcomes in the study. Much like a procedure map in lean manufacturing, the cuffs distinguish the flow of work throughout the commerce system. Each connection in the sequence has a precise capability, and these capabilities frequently change from one to the other. Goldratt has used the sequence equivalence to highlight the idea of the weakest connection. The potency of the whole chain is incomplete by the strain that the weakest connection can cause. In the same manner, the presentation of a chronological flow system can be incomplete by even a smallest component of that system. The weakest association can crop up anywhere in the series of dependence. For example, incompetent capability on one part of the manufacturing apparatus might limit the output. Similarly, sales power is not sufficient to block up accessible capacity. In the earlier circumstances, the presentation of the complete company (system) is restricted by an objective resource. In the second, it is restricted by inadequate exterior stipulation. The key word is “limited.” It is the fundamental nature of the meaning of restriction, something that confines a system in accomplishing its objective. These five different steps present a system for dynamic effective development of a system: Categorize the system’s constraint which decides what restrictions the system presents. Choose how to overcome the system’s restriction and eliminate inadequacy. Enforce successful management for the accessible limitation as the top priority. Reduce the system’s limitation. Eliminate the limitation by raising its capacity above the level of requirement. When the system procedure is not competitive the steps have to be renewed.    Mutually the methodologies—lean production and the Theory of Constraints—have several things in common. Wherever they do not overlap, each offers some strong points not offered by the other. Moreover, each can compensate and make good the deficiencies of the other. The main dissimilarity between the two is that a lean production seeks to abolish wastages in all the parts of the system concurrently through collaboration. Limitation theory recommends that while waste abolition capacity is essential, it might not be the best thing to do before attaining instantaneous quantum raise in business presentation. TOC primarily seeks to recognize the system constraint (leverage points) in the succession that will create quickest benefits and enable the company to choose suitable strategy to meet demands regarding those points instantly. Lean production ensures benefits to customers and eliminates uneconomical elements from the price stream of manufactured goods. Thus, it can provide the customers goods at prices less than that offered by other systems. In the lean paradigm, wasteful actions are those activities that consume extra resources without generating substantial output. A key intention of lean philosophy is the eradication of non-value adding processes and the related expenses throughout the procedure. By implementing the lean principles, each value stream in the venture or organization can become gradually lean by constantly eradicating waste and its related costs. The theory of constraints addresses the development system of a business by restraining performance. Both theses philosophies focus on development and advocate methods to strengthen the flow of products on the shop floor. Both have registered dramatic accomplishments in productivity lead times, inventories as well as prices. Besides, processes are radically simplified. Simultaneously, both strategies distinguish between the intention of accomplishing and maintaining such development trends. An alternate view suggests that these philosophies need to be extended beyond manufacturing industries. As an outcome, TOC and Lean movements have expanded their scope to include values and practices of the whole system to facilitate continuous system development. Lean manufacturing must be executed in the Enterprise Resource Planning (ERP) system of the company to facilitate the management process in a viable manner. ERP systems like Oracle can be used by organizations so that Lean Management can be completely controlled by using this software. The growth of IT system can facilitate a good balance among maintaining the optimum level of inventory stock, the high turnover of goods as well as accelerating slow movement of products in the business. The use of IT in Lean Management can diminish the material cost and labor cost expenses considerably, as using software is very quick to operate and offers more authentic records rather than when the work is done manually by the employees. The use of Information Systems adds momentum to the speed of operations and the tasks, objectives and achievement ratio is very high. Lean Management helps to get appropriate designing and performing tools for the accurate value flows and procedures for attaining the tasks in hand. TOC’s idea of continuing development by focusing on and directing constraints may not be as motivating as the Lean objective of looking for perfection. On the other hand, the difficulties in modern management techniques and schemes leave managers with unlimited tasks to handle. The magnitude of the work is enough to confuse even the most careful manger. However, in reality, only a handful of those hundreds of potential developments can come through and actually help in accomplishing an organization’s objective. This approach is both practical and logical. Recognizing and addressing the constraints offers the fastest and lowest price tag for growth of any business establishment. Besides, lean manufacturing recommends a different approach to development by reducing the organizational waste by removing unproductive activity at every turn of operation in order to achieve development. Lean Thinking 15 summarizes seven kinds of muda: Human activity soaks up resources but generates no value. Mistakes necessitate rectification. Manufacture of items no one needs so that inventories heap up. Handing out steps that are not required. Movement of workers or merchandise from one place to another without reason. Idle capability of groups waiting downstream for the reason that an upstream action has not delivered on time. Merchandise and services that are not in accordance with the wants of the consumer. In a lean achievement, every examples of muda reduction are distinguished. This method of thinking is extremely appealing to those who desire cost reduction. 3. A key part of your task will be to discuss about the methods that are essential as well as eliminating the undesirable ones. While both TOC and Lean observe the enterprise from the viewpoint of the chain of actions that constitutes the value proposition for a consumer. They differ significantly in how the borders are described in the value stream itself. Lean ventures categorize themselves around specific goods. The threat in this viewpoint surfaces when the companies’ resources are shared for the production of several goods. Taking time out of one phase in a merchandise procedure will not facilitate reduction of inventory in the organization unless time is taken from a resource that was accountable for major fluctuations in the buffer. Taking time out of one phase in a product’s procedure will not facilitate the organization to cut operating costs, unless a laborer is laid off as a result. Both TOC and Lean embrace the value principle in that the customer’s perception of value is crucial. Lean’s perspective is that “Value can only be defined by the ultimate customer.” 15 Similarly, TOC considers that procedure for sale is not completed until a customer’s check for the product has been cleared by the bank. For TOC, the customer’s perception of value is a major determining factor in increasing a product’s throughput” (Moore & Scheinkopf 22). Lean Management makes the job easy to understand, carry out and administer. Lean Management also helps in appropriate designing and performing the correct value flows and procedures for attaining the organizational objectives. Theory of Constraints (TOC) Fundamentals: TOC adopted the general phrase ‘a chain is not stronger than its weak link’ as the latest management model. This means that organization’s activities and processes are susceptible for the simple reason that the weakest part or person can always lead to damage in the products or so little as affect the production unfavorably even by a fraction. The occurrence of inter-dependent basics within the industry creates the network of chains or analogy of a chain, extremely vulnerable to a system’s procedures. As the power of a chain can be affected by its single weak link, the TOC perspective is that the capability of any industry to attain its objective is governed by that single constraint. Whereas the idea of constraints limiting the method or performance is common, it is far from easy to identify. The implications of analyzing industries from the viewpoint of constraints and non-constraints are important. Majority of industries have limited resources and a lot of things that require to be achieved. If it is seen that while owing to wrong perception the constraint is not positively influenced by an action, then it is extremely difficult to meet actual development. Theory of constraints is founded on the basis that the rate of objective achievement is reduced by any one constraining procedure. Only by achieving flow throughout the constraint one can produce more output than before. TOC’s 5-step procedure offers methodical and focused procedures which industries use effectively to follow continuing development: The Five Focusing Steps: 1. Recognize the system’s constraint: This step recognizes the important element determining the value of throughput the industry can generate. 2. Discuss about ways of overcoming the system’s constraint: In step two, decisions and procedures are incorporated in accordance with the organization’s intention to maximize the value of output in the ways possible. 3. Substantiate everything else to the above decisions: In this step, the industry creates and implements the decisions to ensure that its own systems, behaviours and process enable, rather than impede its capacity to exploit the recognized constraint. 4. Raise the system’s constraint. The first three steps symbolize the TOC approach to maximizing the implementation of the opening system. In this step, the constraint itself is enlarged. If the constraint is ability of an interior resource, more of that capacity is obtained including process improvements, additional shifts, purchasing equipment, setup reductions, outsourcing, hiring people, etc. 5. Don’t permit inertia to become the system’s constraint. When a constraint is broken, go back to step one. This step reminds us to create a continuing development process. It also reminds the management that once the constraint is recognized, the nest step is to ensure that there is adequate protective capacity surrounding it. In addition to that, during the constraint alteration, they must enforce efficiency in the systems, strategies and behaviors of the people in the industry. Lean Fundamentals The Lean enterprise is concentrated on the removal of muda waste. Drawing on the history of Japanese manufacturing methods, lean manufacturing also draws round a five step procedure. Below are the five steps of lean thinking: 1. Specify Value from the viewpoint of the consumer: A waste-free procedure is a method that works efficiently throughout the lifetime of the business. It takes time and effort to get the waste reduced while processing, so it is significant to work on procedures that make the procedures cost effective. 2. Recognize the Value Stream: In this step, the goods that go to waste as well as products that are costly are recognized. Then the wastage is recognized and removed through apt procedures that also ensure goods to the consumers at affordable prices. 3 Flow: In order to document the procedure, lean teams will physically check the procedure, noting the distance the product has to travel starting from its manufacture to the place of its sale. The process-specific muda is recognized and ways to remove the constraints are identified. The purpose of this step is to promote industries to concentrate on fast product flow among typical functional departments. 4. Pull: In the lean venture, inventory is considered to be a waste. Consequently, creating anything that is not sold is a waste also. This is so because if something is produced but not sold, it continues as finished goods stock. Therefore, these processes entail demand pull. This is in stark contrast with the usual push approach to producing where the method promotes each resource to produce as much as possible, thereby, pushing goods through. 5. Perfection: The achievements that are attained as an outcome of implementing the four steps show new chances for development in reduced time, effort, cost, space, cost effective products and hassle free services that the consumers really want. This step serves for continuous development activity to the entire satisfaction of employees and consumers. TOC and Lean – Areas of Agreement: There are a lot of areas of agreement among the advocates of TOC and lean. Value together TOC and Lean embrace the rate principle in that the consumer’s awareness of value is essential. Lean’s viewpoint is that “Value may only be described by the ultimate consumer.” TOC proposes that throughput is not created until a consumer’s check for the goods has been cleared by the bank. The Value Stream: Whether named a value stream by TOC or a value-added way by lean, the idea is similar to an explicit recognition that consumer value is formed by a chain of interdependencies that extend beyond the walls of the producing plant. Both approaches also intrinsically identify that the job of all people in the industry is to turn stock into output. Flow: Flow has long been an exhortation with respect to enhancing manufacturing process. “Schonberger’s 1982 book Japanese Manufacturing Techniques: Nine Hidden Lessons in Simplicity10 stressed the importance of flow in a chapter entitled Simplify, and goods will flow like water. Synchronous Manufacturing 11 devotes a section to “a river analogy” which describes the flow of goods through the system” (Moore & Scheinkopf 16). Pull: Lean and TOC embrace the pull rule, and offer methods to manage the flow of products based on pull from the marketplace. Lean approaches the pull idea in sequence, meaning that no one upstream should produce goods or service in anticipation of the consumer downstream inquires for it. Pull is the driving power behind TOC’s Drum-Buffer-Rope (DBR) method as the marketplace demand gives the basis for scheduling the constraint, which is the foundation for discharging any material into the manufacturing procedures. Some of the basic relationships among TOC and Lean: Both support process to protect due date performance, using a ‘pull’ system. Both methods identify that development must encompass and continue within the company. The procedure of flow stream has to be correctly mapped at the start of the plan. Developments must improve the cost of the manufactured goods from the customer’s point f view. Conclusion: Lean manufacturing is a leading manufacturing model being applied in a lot of sectors. It helps organizations to attain targeted output by opening easy-to-apply and maintainable tools and techniques. It concentrates on waste elimination, which allows it to be engrained into industry customs and make all processes efficient. TOC’s model of continuing development by managing and focusing on constraints may not be as encouraging as the Lean objective of seeking perfection. On the other hand, the difficulty faced by new organizations and methods leaves managers with an additional number of things to take care of, maintain and improve as well as develop. The importance of the task can easily confuse most conscientious mangers. Meanwhile, in reality, only a handful of those hundreds of possible developments will create an actual difference in attaining an organization’s objective. TOC’s constraint concentrated method is both pragmatic and logical. Recognizing and addressing the constraints gives the lowest and fastest cost means for raising the output of any business. Work Cited Dettmer, William. Beyond Lean Manufacturing: Combining Lean and the Theory of Constraints for Higher Performance. Goal System International. n.d. Web. 11 November 2011. Lean Manufacturing. RCG University. 1999. Web. 11 November 2011. Lean Manufacturing: The Practical Approach to Productivity. Reliable Plant. n.d. Web. 11 November 2011. < http://www.reliableplant.com/Read/7320/lean-manufacturing-productivity> Moore, Richard. & Scheinkopf, Lisa. Theory of Constraints and Lean Manufacturing: Friends or Foes? Chesapeake Consulting, Inc. 1998. Web. 11 November 2011. Murrey, Martim. Origins and Principles of Lean Manufacturing. About.com. 2011. Web. 11 November 2011. What is Theory of Constraints (TOC). Science of Business. 2002. Web. 11 November 2011. < http://www.scienceofbusiness.com/home/what-is-theory-of-constraints-toc/> What is the Theory of Constraints? Focused Performance. n.d. Web. 11 November 2011. < http://www.focusedperformance.com/toc01.html> Read More