UNIVERSIY OF CEBU LAPU-LAPU AND MANDAUE CAMPUS

COLLEGE OF BUSINESS ADMINISTRATION

OPERATIONS MANAGEMENT AND TOTAL QIALITY MANAGEMENT

NAME: Faye Nicole D. de Loyola

1. Lean Manufacturing
ASSIGNED TOPIC

CONTENT AND DISCUSSION:

Brief Overview of Lean Manufacturing:

Lean this methodology refers to the continuous improvement of work processes, purposes, and
people.

Two Main Pillars of Lean Methodology:

 Respect for People
 Continuous Improvement

Lean manufacturing
 It is a concept that is widely adopted across various industries.
 This concept is derived from the Toyota Production System, that was established around 70
years ago.
 The basic ideals of lean manufacturing have arguably existed for centuries, but really
became solidified with Benjamin Franklin’s writing on reducing waste in his ‘Poor Richard’s
Almanack,’ where he wrote that avoiding unnecessary costs could provide more profit than
increasing sales.
 According to its definition, lean manufacturing refers to a production process based on an
ideology of maximizing productivity while simultaneously minimizing waste within a
manufacturing operation. Its principles are used by many manufacturers to eliminate waste,
optimize processes, cut costs, boost innovation, and reduce time to market in a fast-paced,
volatile, ever-changing global marketplace. Moreover, the lean principle sees waste as
anything that doesn’t add value that the customers are willing to pay for.
Waste in industry, whether that is idle workers, poor processes or unused materials are a drain
on productivity, and lean manufacturing aims to eliminate these. The motives behind this vary
depending on opinion, from increasing profits to providing benefits to customers.

Four (4) Key Benefits to Lean Manufacturing:

1. Eliminate Waste - Waste is a negative factor for cost, deadlines and resources. It provides no
value to products or services. This benefit has a great impact to the successive benefits under
lean manufacturing concept.
2. Improve Quality - This benefit is a result of the elimination of waste. The customers will
experience and received high quality products and services. Apart from that, improved quality
allows companies to stay competitive and meet the changing needs and wants of customers.
Designing processes to meet these expectations and desires keep you ahead of the competition,
keeping quality improvement at the forefront.
3. Reducing Costs - Overproduction or having more materials than is required creates storage
costs, which can be reduced through better processes and materials management. In addition,
it is not just focused on the operation aspect, but also reduces unnecessary activities, work
spaces, and man power which results to lesser cost and increase in efficiency.
4. Reducing Time - Wasting time with inefficient working practices is a waste of money too,
while more efficient practices create shorter lead times and allow for goods and services to be
delivered faster. Moreover, it reduces time for all of the non value added steps are removed.