Introduction
Lean manufacturing aims at eliminating wastes during the production process. Waste occurs when the activities in an enterprise do not add any value. According to Shah & Ward (2003 pp 129-149), lean manufacturing offers companies an opportunity to improve their practices and eliminate waste. It helps in reducing costs and producing high-quality products. Toyota should practice lean manufacturing to stop losses. Toyota is an automotive company recognized worldwide, therefore makes lots of goods. The company manufactures cars and distributes it to other supplying companies and individuals. The process of eliminating waste is the adaptation of a just-in-time system. The process involves beginning to start the production of a car immediately after the customer requests for it. Lean manufacturing will help in increasing the speed of the production process while reducing costs.
Sources of waste
It is essential to understand exactly where the waste exists and what it is to carry out elimination. In Toyota, the waste may be significant if the operation is not practical. The company should create a plan that eliminates each waste with its effect. The wastes in Toyota include overproduction, transporting, inappropriate processing, defects, and unnecessary inventory. Wahab et al. (2013 pp 1292-1298) pinpoints that overproduction includes manufacturing a product before it’s required. It is highly costly because it prohibits the smooth flow of materials and reduces the quality of products. To reduce overproduction Toyota Company has implemented the Just-in-Time system where products are produced when needed. Transporting products between processes add a cost that does not increase the quality of products. Inappropriate processing refers to the use of expensive tools when cheaper tools would be efficient in production. Toyota should use low-cost automation machines for effectiveness.
Another waste is unnecessary inventory, which consumes productive floor space and delays the company’s detection of problems. These may cause significant loss and is a leading cause of ineffective communication. Defects lead to tremendous effects in an organization. The products cannot be sold or re-used Wahab et al. (2013, pp 1292-1298). To avoid defects, the staff should be careful while using products. Wastes slow down the process of an organization to achieve its goals. Toyota seeks to produce quality goods for its customers around the world. The company needs to lower costs of production since it will maximize profits. Lean manufacturing is an effective strategy.
Implementation of Total People Involvement
Lean manufacturing requires the full commitment of all employees, stakeholders, leaders, and investors. The people operating equipment should be adequate and well-trained. To ensure that lean manufacturing is successful in there should be total involvement from everyone. The team should be motivated and flexible to the changes that positively influence the company. Toyota operators have expertise in manufacturing settings of the cars made. The operators should be allowed to air their ideas since they may help save the cost of production. Ayala et al. (2017 pp 538-553) highlights that lean manufacturing cannot be sustainable without the involvement of employees. The leadership at Toyota should continuously motivate its staff to ensure there are motivated to perform better. The team plays a vital role in maintaining the company’s machine. They know how to maintain and upgrade them; hence their input can be very beneficial.
It is essential to involve everyone in the Toyota Company about lean manufacturing. The leaders should conduct training and awareness sessions on the project and understand what is to be accomplished. The goal should be measurable, visual, and realistic. The employees should work towards improving their performance and adopt the new system. They should also be willing to learn and gain more skills. Implementing lean manufacturing depends on the flexibility of employees since they significantly impact customer demand. Ayala et al. (2017 pp 538-553) pinpoints that flexibility involves the ability of the employees to perform in multiple departments and environments. Toyota requires training its staff to ensure that they are efficient.
Process focus analysis
Lean manufacturing involves the improvement and management of processes and operations in an organization. The decisions to be made in Toyota should be informed and aimed at satisfying the customers. According to Strand & Næss ( 2017 pp 156-167), successful lean manufacturing involves collective efforts from the employees. Therefore there should be an analysis of how to bring positive change in the company. The difference is brought about by the realigning process in multiple departments, which will influence the company in numerous ways. There should be an analysis of the Toyota Company’s leadership team, which will help determine if the leaders respect each other. Management should eliminate departments that are not useful because they increase costs through the use of resources. Another activity is to build on teamwork and problem-solving techniques among leaders and employees. Every member of the organization should understand the vision and mission of the organization. Toyota is likely to face various challenges to become a process-based organization.
There is a need to understand the cycle time, layout type, and several stages to conduct fair process focus analysis. The cycle time involves the amount of time that Toyota will use to manufacture and sell a product. A car takes a period of up to two months to be completed depending on the period. Management can reduce the period of manufacturing by increasing the workforce to increase productivity. The car goes through various stages, such as receiving the order, requesting the resources, production, testing, and selling it to the customer. These processes should be handled strictly to avoid mistakes.
Time reduction and Machine maintenance (TPM)
According to Singh et al. (2013 pp 592-599), total productive maintenance (TPM) is an approach to maintenance that aims to achieve maximum production with no breakdowns, defects accidents and provides a safe environment for work. The system emphasizes preventive measures for maintenance and efficiency in operation. It also insists on education and empowering operators of the machines. By maintaining the appliances, the company can experience time reduction during operations. Toyota should adopt this approach because it helps the company to save on costs on machines and also save time. To successfully implement the approach, there should be shared responsibility for the equipment.
The first step to implement the approach is to evaluate the level of TPM. The next step is to conduct training for the operators on the approach and how to maintain it. They should be educated about the importance of preserving machines in the Toyota Company during cars’ production. There is a need to form a team that will spearhead the maintenance of machines for effectiveness. The next step is to make a plan then train all employees about the approach, then implementation can be done. Singh et al. (2013 pp 592-599) highlights that maintenance of machines helps in time reduction therefore improves the effectiveness of the company. The production of cars will take less time to be manufactured, which is likely to please the clients. Toyota Company should form policies that will help in maintaining the approach. The approach is very beneficial to the company because it reduces the cost of production and saves time. Time reduction leads to the production of more cars, which will in-turn, lead to increased profits. Maintaining machines should be a group effort. Employees should understand the importance of maintenance.
Pull production system
A pull production system is a manufacturing strategy that is used to eliminate or reduce waste during production. According to Herakovic et al. (2014 pp 391-526), the pull production system involves replacing resources only after being used; hence, the company makes products that are equal to customers’ demand. The companies resources are there used for production, and the profit is received in a short period. Toyota should adopt this system because it will eliminate waste and tools used have a significant relationship with the market share. The strategy begins with the customer’s demand. The demand determines the speed and resources to be used. These prevent losses and protect the company from the overproduction of cars.
The pull production system has several advantages. The system frees up space in the factory and reduces costs. The cost is mostly gotten from storying excess information. The system increases customer satisfaction since products are made in demand. The strategy also ensures that the products are of high quality since the number of processed products is distributed immediately. It will also help Toyota save time in planning and producing goods that may never reach the market. Herakovic et al. (2014 pp 391-526) highlights that the pull production system increases flexibility since the organization can quickly respond to market changes. The system leads to reduce the cost of production. Every resource that is used brings profit. The company can make inventories and minimizes the possibility of conflicts. The system will help the company to recognize problems at an early stage. Toyota should adopt the approach because it will help in its growth and facilitate achieving its goals.
Quality focus
Lean production emphasizes the elimination of all forms of waste. Resources that do not contribute to the improvement of the value of products are waste. Waste elimination improves the quality of products and customer services, enhancing the relationship between the company and its clients. Toyota should maintain a good relationship with its customers. Toyota Company will develop a focus on customer value. Quality focus involves reducing defects to avoid added costs during production Dos Santos et al. (2015, pp 5947-5954). The company should always focus on what the client wants and needs and seek to improve it continuously. Quality focus is an essential system since it helps the company to build a good reputation.
Production of quality products maintains the client’s satisfaction and reduces risks of replacing defective goods. Toyota should continue building its good reputation for producing quality goods. The focus should be on producing goods that meet the client’s expectations. Customers are attracted to companies that have quality goods. If a customer realizes that the company does not meet the quality standards, they look for alternatives. Toyota should establish its reputation by taking advantage of social media to gain positive opinions and criticism about the cars they manufacture. If the company fulfills its promise to its customers, the customers will be loyal to the company because they are assured of quality goods. Another benefit of focusing on quality is that costs are managed effectively. Dos Santos et al.
(2015 pp. 5947-5954) highlights that low-quality cars’ production leads to defects and the need to retest the vehicle several times.
Toyota requires adapting various behavior to improve the quality of their products. The first behavior is to set clear goals. To produce quality products, a company must first define it and describe its outcome expectation. These give the operators an overview of what is required of them. The next behavior is to learn how to collect and analyze data frequently. Collecting data provide the company with the chance to understand the changing trends in the market. Quality focus is essential in a company since it continuously helps it to improve its services and products.
Lean supplier and customer relationship
Suppliers play a significant role in the management of a company. They can supply products late lead to dissatisfied customers, which will destroy customer relationships and reputation (Martínez-Jurado & Moyano-Fuentes, 2014 pp 134-150). These will, in turn, lead to an increase in the cost of production. Blaming suppliers does not solve the problem. The company should work together to find a solution. Lean manufacturing involves the total involvement of the members of a company. Toyota should continue building strong relationships with its partners, customers, and employees.
Conclusion and recommendations for implementation
Toyota should use a strategic plan during lean manufacturing to avoid confusion and use of unnecessary resources. It is also essential to train operators and other employees on the importance of lean manufacturing. Lean manufacturing facilitates growth and maximizes profits since it reduces the cost of production. It also aims to produce quality goods. Production of quality cars improves the reputation of Toyota Company.
References
Ayala, N.F., Paslauski, C.A., Ghezzi, A. and Frank, A.G., 2017. Knowledge sharing dynamics in service suppliers’ involvement for servitization of manufacturing companies. International Journal of Production Economics, 193, pp.538-553.
Dos Santos, Z.G., Vieira, L. and Balbinotti, G., 2015. Lean Manufacturing and ergonomic working conditions in the automotive industry. Procedia Manufacturing, 3, pp.5947-5954.
Herakovic, N., Metlikovic, P. and Debevec, M., 2014. Motivational lean game to support decision between push and pull production strategy. International journal of simulation modelling, 13(4), pp.391-526.
Martínez-Jurado, P.J. and Moyano-Fuentes, J., 2014. Lean management, supply chain management and sustainability: a literature review. Journal of Cleaner Production, 85, pp.134-150.
Shah, R. and Ward, P.T., 2003. Lean manufacturing: context, practice bundles, and performance. Journal of operations management, 21(2), pp.129-149.
Singh, R., Gohil, A.M., Shah, D.B. and Desai, S., 2013. Total productive maintenance (TPM) implementation in a machine shop: A case study. Procedia Engineering, 51, pp.592-599.
Strand, A. and Næss, P., 2017. Local self-determination, process-focus and subordination of environmental concerns. Journal of Environmental Policy & Planning, 19(2), pp.156-167.
Wahab, A.N.A., Mukhtar, M. and Sulaiman, R., 2013. A conceptual model of lean manufacturing dimensions. Procedia Technology, 11, pp.1292-1298.