IGCSE Business Studies Operations management

1. Lean Manufacturing
Prepared and Presented by Yash Bhatt

2. Definition
 Lean manufacturing involves never ending
efforts to eliminate or reduce ‘muda’(Japanese
word for waste or any activity that consumes
resources without adding value) in design,
manufacturing, distribution and custom service
processes.

3. Toyota(Automobile Firm)
 Toyota Industries Corporation was
founded in 1926 by Sakichi Toyoda. It is
the world’s largest vehicle manufacturer.
By conducting its business worldwide.
Toyota’s vehicles are sold in more than
170 countries and regions. It employs
approximately 320,000 people
worldwide. It leads the automobile
industry in environmental technologies
with the success of the hybrid technology
in the Prius and Hybrid Camry

4. Implementation
 Toyota production system or TPS uses the philosophy "the
complete elimination of all waste“ in their production. Toyota
Motor Corporation's vehicle production system is a way of
"making things" that is sometimes referred to as a "lean
manufacturing system" or a "Just-in-Time (JIT) system," and
has come to be well known and studied worldwide. This
production control system has been established based on many
years of continuous improvements, with the objective of
"making the vehicles ordered by customers in the quickest and
most efficient way, in order to deliver the vehicles as quickly as
possible. There are two concepts used in production by Toyota:
1) Jidoka 2) Just in time.

5. Advantages of Lean Manufacturing
 Increased efficiency – Line balancing will ensure each
person in the process is working in the most efficient
manner.
 Easier to manage – The work instructions and
standardized work let people know what they have to do
and when. This makes managing an area much easier.
 Manpower reductions – One of the major benefits of lean
is getting more done with less people. With standardized
work and increased efficiencies, the ability to do the job
with less people becomes a very real possibility.
 Production is quicker and of good quality.

6. Disadvantages of Lean Manufacturing
 Cost- If any mistakes are spotted in lean manufacturing
then to correct those mistakes will cost money. Hence
Maintenance can be costly.
 Initial Labour increase- to implement lean production
business’ need additional resources like labour which will
again cost money as salaries or wages will have to be paid.
 Over-focus on waste- Companies using lean
manufacturing tend to focus more on elimination of waste
overriding other concerns. By using this method
companies ignore other concerns such as employee
wellness and corporate social responsibility.

7. Conclusion
 Lean Manufacturing have many advantages and
disadvantages but like every coin has two sides, this
method is very useful in order to earn more profit, as it
increases productivity and reduces company wastage.
Toyota uses this method to manufacture their cars as
quickly as possible in order to make their customers happy
and satisfied by delivering their orders on time.

8. Bibliography
 http://www.businessdictionary.com/definition/lean-
manufacturing.html#ixzz3gcW75Wgb
 http://toyotaprojectteam.blogspot.in/p/company-
background_6779.html
 http://www.toyota-
global.com/company/vision_philosophy/toyota_productio
n_system/
 http://www.brighthubpm.com/methods-strategies/105933-
criticism-of-lean-manufacturing/

9. Thank You!