How lean manufacturing effects the profitability of organization

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The Silent Gliss and the Downers Design have adapted the Lean production system with in their organizations that has provided the positive impact on the organizational performance level. This research intends to analyse the level of performance and the productivity.

The both of the organizations have objectives and a desire to further develop their business, so that they can increase their gross profitability. From the past few years both organizations have adopted techniques and benefited from their lean manufacturing system. Silent Gliss, one of the well known global companies in the interior design, is a perfect example of a lean manufacturing success story. Downers Design, another name working for interior designers and private clients, is trying to keep up with the pace in this competitive business world. They are looking forward to introducing a lean manufacturing system. The whole idea of this research is to create a perfect lean manufacturing model for this company to increase Downers efficiency, and capture more business.

The adaption of Lean is not the easy task for the originations that works on the small scale. Thus the adaption of Lean processing is the critical task for the organizations to adapt. The realizing the cost of implementation can be the one of major barriers that can hinder the performance. Therefore the organizations take careful measure that can actually implement the lean strategies in the successful manners. Thus the organizations need to realistically implement the strategies.

Thus the factors that are critical to align the strategies are discussed in this research process which will indicate the positive outcomes and how to acquire the performance throughout the process.

Company Background

Silent Gliss

Silent Gliss was established in 1952 by Swiss engineer ALEXANDER WEBER who invented the first curtain track system. They are considered to be the leader in the industry and sell on an international scale. At the moment they are offering a wide range of window treatments and are always innovative in this sector. They operate in more than 50 countries and, yet, still the organization is continually attempting to expand in the market. One of the main reasons for their success is the innovative ideas which are inspired and driven by their customer needs. Their head office is based in Gümligen, Switzerland.


Downers Design

Downers design is one of the growing companies in the soft furnishing industry. The organization offers an advisory service, comprehensive measuring, and supply a fitting service which includes tracks and poles, handmade curtains, panels, blinds, and loose covers. The majority of the business is commissioned by interior designers and the trade clients; the rest comprises smaller residential clients. The business was established in 1991 in Wandsworth by two sisters: SHERI DOWNER and KELLY DOWNER. At that time SHERI had ten years experience working as the fabric technologist at Marks & Spencer and KELLY had good experience in soft furnishings especially in curtain making. KELLY is now the in charge of the loose cover production. At the moment, 15 people are working for the organization. The average monthly sales figure of the company is about £18000. In the recent years there has been a dip in the organizations profit. In 2005 the annual profit was £53797 after tax. But in 2006 the annual profit was -£29760. In 2008 the company made up their profit up to £30224 but, again, in 2009 the profit decreased to £12118. (Source company internal documents)

Lean Manufacturing Facility

Relationships between Organizations

Silent Gliss supplies a wide range of tracks, poles, and roller blinds to Downers Design. Both organizations are in the same field of interior design but supply different, yet complementary, products. The comparison between these two companies will enable us to find a richer understanding of the causes and consequences of preparing and implementing a perfect lean manufacturing model for Downers Design.  (Womack, et al., 1990)

Research Problem

The research problem is to analyse the Lean manufacturing can bring up the efficiency and productivity? This question is the main purpose of the research through which this will be analysed that how Lean processing facilitate the manufacturing process and can be productive and can reduce the cost and benefit the organization.

The research problem is to guide through the process of the Lean processing and how effectively it can bring the efficiency through the process and doest it really benefit the organization at the long range?

Research Question

How does lean manufacturing effect on the profitability of an organization?

A comparative study between DOWNERS DESIGN and SILENT GLISS

Other research questions are;

What can be the benefits of adapting Lean processing in the organization?

How effectively Lean Processing can reduce cost?

How effectively Lean processing can increase the productivity?

Is the long term processing can increase the productivity and profitability?

Is the Lean processing adaptable and feasible for the SILENT GLISS and can be beneficial.


Aims and Objective

The aim of this study is to determine the causes and consequences of introducing lean manufacturing in the small companies and to study if it can increase efficiency and effectiveness in terms of profitability

Thus the aims of this study are to;

Identify the training requirements needed related to lean manufacturing in the organization

Identify the best ways of introducing lean techniques in organization.

Define the expected benefits of introducing lean manufacturing in the organization.

Is there is a viable business case for doing this? Are the likely increases in performance sufficient to justify the financial and organizational costs (e.g. lost management and production time) in such a lean implementation plan?

What are the possible barriers to introducing lean manufacturing at DOWNERS DESIGN?

Research Layout

Chapter Two: Literature Review

The History of Lean

The World War II the Japanese system of Lean manufacturing began to control the origination operational wastages throughout the processing system. The initial system of Japanese manufacturing system was introduced to manage the processing system effectively. The Toyota Motor company is the company from the where the first manufacturing system started. The American companies and the Japanese counterparts became close competitors in about mid of 1940s. However the American and Japanese system of processing determined the close competition through which the Lean was adapted to boost up the efficiency. In order to improve the efficiency Japanese companies such as Toyoda Kiichiro, Shigo and Taiichi Phno implemented the new disciplined process-oriented system. This process is known today as the Toyota Production System., '' or 'Lean Manufacturing'. Holweg, Matthias (2007)

In today's close competitive market the originations require to be more attentive and perceive the close edge of the demanding changes in the market place. Thus every possible effort is made to reduce the wastages and other factors of cost and on other hand the efforts are made to reduce the cost.

The US manufacturers soon realized that the solution to the today's problems in the competitive market place cannot be achieved through the mass production system. Thus the organizations have turned to the lean manufacturing system to maximize the efficiency and reduce the costs.

The research conducted on the Toyota at NUMMI (New United Motor Manufacturer Inc.) that reveals the finding that the huge gap persisted in Japanese and western automotive industry. The idea adapted in the US because the Japanese companies used to produce and distribute the products with half or less human efforts, capital investment , spacing, tools, material, time and other expenses. (Womack et al., 1990)

The companies in today's market have realized that the conventional method of mass marketing system is not an ideal and approachable system to obtain the efficiency.

Lean Manufacturing

According to Radhakrishnan (2008), Lean Manufacturing is the systematic elimination of waste from all aspects of an organization's operations, where waste is seen as any loss of resources, including time, that does not directly lead to creating the product or service that a customer wants at the time of wanting it. In many industrial processes, non value added activities can comprise more than 90 percent of a factories total activity. Bailey, David (2008)

The increasing competitiveness and the demand for the goods and services have determined the new dimensions for the organizations and their management system tod decide upon the production system and the service delivery with efficiency and the effectiveness.

The customer expectations from the companies in such a competitive environment drive the companies to make such decisions that can save them the cost and the time through effective process management through which the competitiveness of the work and the efficiency can be achieved. The acquired benefits have the certain benefits for the organizational life and provide the competitiveness to the companies in the long range through which the sustainable and long term competitiveness can be achieved.

Thus these factors provide the pressure on the companies to alighn the strategies through which the organizations lead to the success and beat the competition in the market place through positive movement on the ladder of success.

The lean manufacturing notion initially started from the Japanese manufacturing system where the organizations wanted to reduce the cost and wastages through effective management of the resources and implementation of the system involving all the factors of production more competitively and greeting the positive outcome from the process.

The approach indicates that the triggering factor and the determinant of the prices is the customers. The indicative of prices actually is determined through the customers. The prices are accepted and rejected by the customers and this is determined through the prices set by the companies for their products. However higher the prices set will have the impact and affect on the prices level. Thus the price level can actually determine the demand level and can determine the organizations position in the competitive environment.

The 'Lean' focuses on the reduction of the wastages and other factors that can hinder the efficiency and boost up the factors that can increase the efficiency.

Normally, different organizations implement lean manufacturing to achieve the highest quality of product or service, at the lowest possible cost, with maximum customer satisfaction. They typically focus on the basic three key goals Firstly: Reduction of requirements of the product or service production in the form of capital and materials. Secondly: An increase in manufacturing velocity and flexibility, and, Thirdly: An improvement in first time product quality.

According to Wang (2010), the methodology of lean manufacturing has much in common with the Total Quality Management (TQM) strategy. Both strategies empower workers on the assembly line. In both methods those closest to production must know how the production system should work. In a lean manufacturing system, the suppliers cannot deliver very small lots on daily basis as the machines don't run at full capacity. The lean manufacturing has a primary focus to eliminate waste which can be anything that doesn't add value to the final product. A second major focus is to empower workers, and make decisions for production at the lowest level wherever possible. The supplier chain management factors heavily influence lean manufacturing, and Downers should be in tight partnership with the suppliers as this can facilitate the rapid flow of products to the workshop and, ultimately, to the client.

Lean manufacturing is the critical aspect for the organizations to adapt and to align the strategies accordingly. Thus the resources and the elements are aligned accordingly so that the efficiency can be achieved through the proper placements of the systems. Thus the adaption of the strategies is critically aligned with the lean manufacturing system through which the efficiency is improved.

The following are main categories where the corrective measure through the lean processing can be accomplished.


To avoid access raw materials and scrap. Withholding of excessive raw material may cause the cost.


Keep the balance flow of inventory to customers. Withholding the inventory can cause excessive cost on the firm.


Produce the exact quantity that the demand has made.


The unwanted labour need to be avoided.


Problems requires simple solutions rather than complex solutions


The energy need to be utilized efficiently and in productive way. The unwanted or unrequited consumption of energy need to be avoided.


Reorganize people, equipment and workstation to get a better space utilization.


The efforts need to be done to minimize the defects. The goal of zero defects is the correct method to minimize the defects to the lower level.


The transportation need to be avoided where there is no value addition is added with the product.


Time utilization need be more accurate. The correct timing of assigned task need to be connected with the activity.


Avoid delays in transportation and unexpected downtimes.

The control of waste and efficient utilization of resources can be achieved through many ways. According to  Krafcik, John F. (1988 ) the significant source of waste is the inventory. Work-in-process and the finished goods do not add value to the products. The excessive production can be the cause to wastage and the underutilization of resources. As notified by (Ohno, Taiichi,1988) the inventory requires to be utilized effectively so that it can effectively utilize the resources. The underutilization of inventory is to reduce the level of production and produce the lot size according to the need basis.

In this regard the setup time can be reduced according to the order basis. Through this the level of wastage can be reduced significantly. (Shingo, 1997) however it is significant as according to the  Andrew Dillon, translator, (1987 ) when the wastage is reduced the many factors of production are utilized effectively through which the efficiency can be achieved on the higher level.

The wastage of the space can be another problem through which the efficiency is reduced and the maximization of efficiently could not be achieved through the process. the productive utilization of spacer can be the productive methods of handling resources and the space. In the space there effective handling of Human resources on shifts, the equipments and other resources can be utilized effectively.

Drawing upon the notion developed by  Andrew Dillon, translator, (1987) the utilization of transportation can be the major source of the wastage. The Japanese style of management requires the effective utilization of resources. The movements of the parts from one place to another place can a critical factor through which the wastage of time and space and the transportation can be minimized. Thus the fuel cost and the energy cost can be minimized through this way. The more effective utilization of transportation ensures the less wastage or the damages that occur through the transportation process. Therefore the positive utilization capital resources and the human resources can maximize the efficiency throughout the process.

According to  Ford, Henry; with Crowther, Samuel (1922) the productivity is the essential of the lean processing in today's organization. The organizations tend to implement the procedure that ensures the minimization of wastages. The fewer defects in the product achieve the higher level of customer satisfaction and reduce the cost and improve the efficiency.

The Lean is the Philosophy that requires the implementation in to the organizational activities. The organizational activities related to the major sources of production such as Human resources, Production, stocks, manufacturing, transportation and processing requires the collective philosophy of lean into the system. Thus the results can be obtained of the collective measures are taken. The lean is the collective approach in order to minimize the wastages and cost through the systematic approach.

The management on the top priority require communicating the lean philosophy into the organization thus the Lean processing is not just the introduction of a new method over night but it is the change management of whole culture throughout the process. This is the entire change in the culture. This refers to persuade the management to change the entire system throughout the process. Drawing upon the  Womack, James P.; Daniel T. Jones (2003) the lean is the process of getting or involving the organizational participants into the process of the change management for the positive results and betterment of an organization. the notion of lean system is reiterated by Lathin and Mitchell (2001) suggesting as the need for socio technical system (STS) integration, that the organizations are more integrated technological with the social system that bring up the efficiency through involving the people into the process. Therefore the system suggests the concepts such as the positive interaction in shape of synergies or on the other hand the negative interactions or the tradeoffs and barriers.

Drawing upon the standards and Davis (1999) the effectiveness of lean manufacturing techniques propitious cultural values are blended with the practices. The implementation of lean must involve the technological and the human factor in the equal balance so that the productivity can be obtained through the process.

In classical approach, under the Taylor system of work efficiency where the efficiency was linked with the reward system. This increased the level of participation of workers in the more productivity and efficiency where every worker felt as to acquire the chance of begin selected in the team where higher pay rates can be obtained. Thus the overall efficiency increases through this way.

The scientific methods however faced the level of rising concerns. In this regard the people felt as the Taylor wanted people to leave their brain on the factory gates. Thus the Taylor emphasised that the efforts are made to increase the level of intrinsic motivation in the workers who are just motivate on the monetary basis.

The standardization is an approach that has already been adapted throughout when the Taylor allowed the front line workers to participate in the research process or suggest the issues that take place. The workers were supposed to provide the opinions and suggestions through which the better improvement can be developed.

''the worst mistake that can be made is to refer to any part of the system as being ''on trial'' Once a given step is decided upon, all parties must be made to understand that it will go whether anyone around the place likes it or not. In making changes in a system the things that are given a ''fair trial'' fail, while the things that ;;must go,'' go all right.''

Frederick Winslow Taylor (1911a, 136)

The Frederick W Taylor suggested that the organizational excellence can be obtained through the acceptance of the new ways of productivity and working process. Thus the Bakerjian (1993, 1-13) suggests the management commitment is the essential part of the efficiency that is required to bring the improvement in the organizational efficiency through the process. in the adaption of lean processing the Feigenbaum (1991) warns that the mere lip service cannot obtain the required level of results. However the management can not rush to get the positive results in the matter of days. According to Taylor (1911a, 195) the results may take longer time to come up with positive results. However the management of the large working environment can not expect the complete turnaround of the results within matter of months. This can be extended to the couple of years to bring the efficiency and achieve the positive and favourable out some for the organization through which the efficiency can be achieved.

According to Lathin and Mitchell (2001) every part of organization must be functional and productive. Thus this may be the any resources or factor of production. Thus the bottlenecks shall be removed and the completed performance must be achieved to boost up the efficiency.

The performance measurements must support lean manufacturing system. According to  Ruffa, Stephen A. (2008) the organization must overcome those factors hinders the performance. Thus the performance can be achieved through the participation of employees or the team members.

According to  Hounshell, David A. (1984) the measurement must be objective, precisely and quantifiable. This can be measured in the numbers through which the performance can be actually calculated through the process so that the measures of standard scale can be established


The Taichi Ohno, (1988) measure the performance must be under control of the people or department that is being measured. This is a requirement about what the Joseph Juran calls ''Self-Control.''

The measurement must encourage the behaviour so that the help can be maintained throughout the process to achieve the performance.

The notion can develop as the maximizing the equipment utilization may not be even under departmental control because the slow progress from the proceeding department. Theory of constraint determines the true picture. In this the constraint limits the working space in which the production become limited with certain framework.

The human resources balanced employment can ensure the success of an organization. Through which balanced approach can be adapted through which the HR can be employed according the need basis. Thus the approach can eliminate the excessive job appointment and thus reduce the cost. The demand based human resource deployment always provide more space to the job related activities and maximize the efficiency at work place. Through this the excessive amount of job labour paid throughout in terms of salary can be eliminated. Thus through this at the end of time efficiency can be boosted.

Lean provides the total solution to the problem of wastage through the human resources, capital resources or information resources. Thus through physical to the logical aspects the lean has the solution to the problems of an organization. According to Jones (2003) lean does not mean the downsizing when lean suggests the balanced approach of human resources. On the other hand Bicheno, John; Matthias Holweg (2009) argued that the lean provide the positive approach to the human resources where they are equally motivated for the positive approach to the maximization of organizational performance rather than taking the aspect through the dimension where employees can become demoralized and think of the organizations taking part into the downsizing of employees by making fewer employees more productive and laying off the rest. However the lean manufacturing provides the positive approach through taking care of existing employees on the job place and making them more productive through satisfying them from internal side. However the management reinforce the dysfunctional behaviour of soldiering or deliberately limiting production to protect jobs. In this regard the William & Raymond (2002) the employees' behaviour has the significant role in the alignment of strategies on the long term process of successful implementation organizational strategies in the practical way. Thus the strategies should be formulated that can bring the positive results in the positive way throughout the process.

As cited by William & Raymond (2002) excerpt taken from the Taylor (1911, 8) states that

After workman has had the price per piece of the work he is doing lowered two or three times as a result of his having worked harder and increased his output, he is likely entirely to lose sight of his employer's side of the case and become imbued with a grim determination to have no more cuts if soldiering can prevent it. (Taylor 1911, 8)

Argued by Radhakrishnan. (2008) Thus the employees motivation is the major issue that need to keep intact throughout the process otherwise the organization may lose to achieve the strategic depth through the process that can be achieved in the case where the motivation of employees is achieved throughout the process.

Thus the treatment of the human resources in the context where the human resources are employed according to the need basis and lay them off when they are no more needed will be the factors that are negating organizational human resources strategies that can bring less positive outcomes that can bring the strategic depth to the organizations.

In this notion as cited by William & Raymond (2002) stated by Taiichi Ohno, Hiring people when business is good and production is high just to lay them off or recruiting early retirees when recession hits are bad practices..On the other hand, eliminating wasteful and meaningless jobs enhances the value of work for workers (Ohno 1988, 20)

In some cases the high wages are not the problem. As Taylor suggests that the high wages can cost more money but at the same time they may produce the better productivity and become more efficient. Thus the realistic approach to the labour is more satisfied labour is the highly productive labour where as less productive labour is the factor that become the outcome of the less satisfied labour.

On the other hand argument presented by the Wang John (2010) as describe by the Taylor system of labour , that can be very risky while layoff people from organization. The risk of important key people lying off is always present there. This may cost the organization more than what it has spending at the movement. Therefore the strategic decision is to take on the key people in the organization and continue the process. Thus this is obvious reason that the organization must carry on with the right sizing process not the downsizing. Thus the strategic depth to achieve performance is the significant factor that can be achieve through the involvement of the correction of process and keeping the resources in the right way throughout the processed. This can bring efficiency in the organization throughout the process.

Womack and Jones (1996) stress this point repeatedly. Don not lay off workers whom productivity improvements make unnecessary. Thus reassigning the improvements plans improve the productivity and reduces the costs significantly. However this reiterate the importance of cross-training procedures that are usually taken in the modern management system through which the required level of efficiency is achieved. Lean manufacturing will certainly get rid off certain jobs that are unusual burden on the management system through which the productivity can be hindered. Thus the lean manufacturing process is adapted according to the management system through which the organizational efficiency is to achieve throughout them process.,

Thus the organizations achieve the high potential of results through the involvement of human resources.

CI* CI Initiatives

The above graphical representation suggests that HR is the key element in the organizational framework through which the work is being performed. Thus te4h HR is the major factor through which the philosophy of an organization is implemented in the practical approach. The involvement of staff begins from the start and ends till the final operation is performed. Thus the results are achieved throughout the process by getting HR involved in the process. Thus this remain the important factor through which the efficiency and productivity is achieved. However ignoring the HR factor can not solve the organizational problems rather it can increase the obstacles throughout the process of achieving the efficiency.

The Lean system through the modern approach can be more successful in the organizational.

Value Analysis

Cited by William & Raymond (2002) as stated by Juran (1992, 192-93) the value analysis as 'process for evaluating the interrelationships among the function performed by product features and the associated costs are related with the performance. The idea is to generate something of value through which the performance can be achieved an the resources utilization is obtained up to the best standards throughout the process. Thus the essence of idea delivery is design the product so that can actually deliver the expected results to the customers on the lower costs.

Thus the value analysis includes the

Customer requirements and their importance

Corresponding product features that satisfy the customer requirements

The product features essential costs

The information on competitive products their features and their costs

However this is known as the tie-in with quality system through which the management achieve the performance. This is considered as the quality function deployment (QFD) as known as the 'house of quality' (hardesky 1995, 663 cited in the William & Raymond (2002) sections for technical for difficulty and the benchmarking and target values or the requirements. Thus the organization makes efforts to achieve the performance through the involvement of the competitive evaluation.

Implementing 5 S

The implementation of 5S is the systematic approach towards reduction of the wastage and the unwanted process system. Through this the management achieve the results in the optimistic way and the performance is determined throughout the process.

Implementing 5S into the business strategy in the way through which the performance can be achieved. The 5s is a system to reduce the wastage in the organization through which the performance can be maximized in the organization and the productivity through which the maintaining n orderly workplace and using visual cues to achieve the performance more consistence operational results. The implementation of 5s provides the 'cleaning up' and manage the workplace in the manners through which the performance can be achieved through the performance and the management can be achieved through the way the organization can boost up the performance. The results can be achieved through the way that can involve in the systematic approach.

The 5S are the pillars of the organization through whji8ch the organizational efficiency is achieved. The 5S includes the Sort (Seiri), Set in order (Seiton), Shine (seiso), Standardize (Seiketsu) and Sustain (Shitsuke) provide the framework for the organization for the management and the system through which eh performance is achieve through the implementation of the tools in the practical way.

The organizations therefore achieve the methods through which the performance is achieved and made sustainable. Through involvement of 5 factors the achievement of the performance can be made sustainable for the long period of time.

5S are Five Pillars


In the beginning the sorting takes place. The sort out is the important factor to readjust the system of the management in the management process. the focus of this S is to eliminate the items or the activities that are unnecessary and cause the delays in the production process.

The management has the system to identify the unneeded item through red tagging system. However through this the identification of right item in the right place is identified through which the importance of the items is prioritized. In this the technical aspect is to put the red tag on the items that not in the proper location or the quantity.

Once the red tag times are located and identified these items are put on the central location where these items are centralized in the holding areas for the subsequent disposal process. these items are further taken to the reassignment process. the organizations often can management the location more appropriately and accurately through which the space is saved and the unwanted through are managed accordingly. However through this the items are manaqwgemend accordingly though nthose items may be broken or scraps.

Set In Order

the location is set according to

Set In Order focuses on creating efficient and effective storage methods to arrange items so that they are easy to use and to label them so that they are easy to find and put away. Set in Order can only be implemented once the first pillar, Sort, has cleared the work area of unneeded items. Strategies for effective Set In Order include painting floors, affixing labels and placards to designate proper storage locations and methods, outlining work areas and locations, and installing modular shelving and cabinets.


Once the clutter that has been clogging the work areas is eliminated and remaining items are organized, the next step is to thoroughly clean the work area. Daily follow-up cleaning is necessary to sustain this improvement. Working in a clean environment enables workers to notice malfunctions in equipment such as leaks, vibrations, breakages, and misalignments. These changes, if left unattended, could lead to equipment failure and loss of production. Organizations often establish Shine targets, assignments, methods, and tools before beginning the shine pillar.


Once the first three 5S's have been implemented, the next pillar is to standardize the best practices in the work area. Standardize, the method to maintain the first three pillars, creates a consistent approach with which tasks and procedures are done. The three steps in this process are assigning 5S (Sort, Set in Order, Shine) job responsibilities, integrating 5S duties into regular work duties, and checking on the maintenance of 5S. Some of the tools used in standardizing the 5S procedures are: job cycle charts, visual cues (e.g., signs, placards, display scoreboards), scheduling of "five-minute" 5S periods, and check lists. The second part of Standardize is prevention - preventing accumulation of unneeded items, preventing procedures from breaking down, and preventing equipment and materials from getting dirty.


Sustain, making a habit of properly maintaining correct procedures, is often the most difficult S to implement and achieve. Changing entrenched behaviors can be difficult, and the tendency is often to return to the status quo and the comfort zone of the "old way" of doing things. Sustain focuses on defining a new status quo and standard of work place organization. Without the Sustain pillar the achievements of the other pillars will not last long. Tools for sustaining 5S include signs and posters, newsletters, pocket manuals, team and management check-ins, performance reviews, and department tours. Organizations typically seek to reinforce 5S messages in multiple formats until it becomes "the way things are done."

Proper discipline keeps the 5S circle in motion.

Implications for Environmental Performance

Potential Benefits: 

Painting the machines and the equipment light colors and cleaning the windows, often done under the Shine pillar, decreases energy needs associated with lighting.

Painting and cleaning makes it easier for workers to notice spills or leaks quickly, thereby decreasing spill response. This can significantly reduce waste generation from spills and clean-up.

The removal of obstacles and the marking of main thoroughfares decreases the potential of accidents that could lead to spills and associated hazardous waste generation (e.g., spilled material, absorbent pads and clean up materials).

Regular cleaning, as part of the Shine pillar, decreases the accumulation of cuttings, shavings, dirt, and other substances that can contaminate production processes and result in defects. Reduction in defects has significant environmental benefits (e.g., avoided materials, wastes, and energy needed to produce the defective output; avoided need to dispose of defective output).

5S implementation can significant reduce the square footage needed for operations by organizing and disposing of unused equipment and supplies. Less storage space decreases energy needed to heat and light the space.

Organizing equipment, parts, and materials so they are easy to find can significantly reduce unneeded consumption. Employees are more likely to finish one batch of chemicals or materials before opening or ordering more, resulting in less chemicals or materials expiring and needing disposal.

5S visual cues (e.g., signs, placards, scoreboards, laminated procedures in workstations) can be used to raise employee understanding of proper waste handling and management procedures, as well as workplace hazards and appropriate emergency response procedures. 5S techniques can be used to improve labeling of hazardous materials and wastes. In addition, environmental procedures often are separate from operating procedures, and they are not easily accessible to the workstation. 5S implementation often result is easy to read, laminated procedures located in workstations. Integration with 5S visual cues and operating procedures can improve employee environmental management.

Potential Shortcomings: 

Regularly painting and cleaning machines and equipment could lead to increased use of paints and cleaning supplies. Paints and cleaning supplies may contain solvents and/or chemicals that can result in air emissions or increased waste generation.

Disposing of unneeded equipment and supplies creates a short-term surge in waste generation. In some cases, there may be unlabeled wastes that could be hazardous. Failure to involve environmental personnel in waste handling could result in some wastes being disposed improperly or in lost opportunities for reclamation or recycling.

In order to do this, the Value Stream Mapping method visually maps the flow of materials and information from the time products come in the back door as raw material, through all manufacturing process steps, and off the loading dock as finished products.

Mapping out the activities in the manufacturing process with cycle times, down times, in-process inventory, material moves, information flow paths, helps to visualize the current state of the process activities and guides towards the future desired state.

VSM Methodology

Figure Process of Lean

story of VSM: The use of waste removal to drive competitive advantage inside organizations was pioneered in the 1980s by Toyota's chief engineer, Taiichi Ohno, and sensei Shigeo Shingo and is oriented fundamentally to productivity rather than to quality. The reason for this is thought to be that improved productivity leads to leaner operations which help to expose further waste and quality problems in the system. Thus the systematic attack on waste is also a systematic assault on the factors underlying poor quality and fundamental management problems. 

Wastage control

The wastage can be a factor that reduces the productivity of any organization. Through this factor the efficiency is reduced dramatically. Thus the control of wastage effectively is also the technique. The lean manufacturing system provides efficient measures to reduce the wastage and bring up the efficiency. In this regard the theory of constraint provides the notion that the business must not individually measure the operations on efficiency or utilization level. Thus the goal to attain the 100 percent efficiency or utilization is appropriate only for the constraint, or the operations with the lowest capacity.

Waste Types

Figure Wastage identified

The purpose of lean is making job more efficient. Thus the resource utilization must be efficient so that the balance strategy can be formulated. Thus the production and the process must be aligned accordingly. The vital principal of friction as cited in the book written by William & Raymond (2002, p32) suggests that the vital principal of friction is very important factor that the Japanese call muda or waste. Thus this describes the tools that can increase the worker efficiency.

The theory of constraint suggests that the business not measure individual operations on efficiency or utilization. The expectation for the 100 percent efficiency is appropriate for the constraint only, or the operations with the lowest capacity. ( )

The wastage requires to be controlled in many parts of an organization.

As described earlier the labour time per piece of the produce is crucial part in attaining the efficiency throughout the process. According to ( ) shorter cycle times is the time assigned for the individual jobs. This tend to tie in the just in time delivery. The efficiency can be increase throughout the process if the required level of efficiency is achieved through the measures in appropriate fashion through which the efficiency is achieved.

Drawing upon ( ) the lead time is the time between an orders placement and its delivery. According to Schonberger (1986, 191), the Harley-Davidson extended its business to a wide variety of manufactured products. They actually received the payment for the products before the actual process did take place.

The cycle time is the time that starts when the job start and till the end of the job. As determined by Wang John.X. (2010) if the factory makes to order, lead time cannot be less than cycle time. Thus the cost elimination is the important factor. Through the involvement of relevant factors the cost reductions and elimination is very important factor. The notion reiterated by Radhakrishnan. (2008 ) concept that is determined in the earlier discussion as the lean manufacturing is about identifying and eliminating frictions.

The labour balance is emphasised by the Swamidass Paul.M. (2000) excessive emphasis on cheap labour, cheap material and cheap equipment can lead to ruin. Thus the Taylor highlight the 'high-prices' labour as the important factor that need to be eliminated from the process. Thus this elimination can handled in the balanced manor so that the strategic alignment of organizational; policies can be strategically achieved and set throughout the process.

The secret of success for the Henry Ford's philosophy is the management implementation of rules and regulations in the practical ways in the management through which the efficiency can be achieved.

The idea of recognizing the waste is the important thing in the organization so that the realistic approach can be achieved. This can be overemphasised through the way so that the performance can be increased.


The standardization is the process of increasing the level of performance through the way that the management of the way that the manage4ment can achieve the results in the realistic way.

Taylor emphasised on the standardization process. The standardization means the implementation of the best of doing a job on the standards up to the required level. Thus the process shall be implemented in the organization so that the performance can be enhanced through the management system.

Standardization take the organization to the higher level of knowledge management through which the employees get on the level of the knowledge through which the management increase the efficiency.

Action must be taken to ensure that improvements are incorporated into the daily routine and become a permanent part of the standardized procedure. Otherwise the improvement will erode quickly and the benefits will be lost. Improvement without standardization cannot be sustained (standard and Davis 1999, 117)

The standardization process is emphasized by the Williams & Raymond (2002) reduces the variations because everyone does the job the same way. It also supports continue improvement (kaizan) by taking the backward step out of the two-steps-forward-and-one-back effect.

The suggestions are the important things that are always invited in the management system. The management always invite the 'one best way system 'through which the management invite the positive synergy through which the performance is achieved and improvements are invited through the process.

The Taylor encourages the involvement of frontline workers in the management process through which the performance can be achieved.

In this regard the scientific management always invite the management system through which he management system is implemented throughout the systematic approach where the employees are invited to participate in the management philosophy ion the management way.

CI* CI Areas

Figure Improvement Areas in the plant

Department Operations System

Figure Departmental Operational System

Source: RIKGlobal (2006)