All related literatures

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All related literatures are reviewed in this chapter. Lean concept focuses on eliminate waste, while agile concept focuses on flexibility in supply chain. The theories that cite the topic of reducing cycle time in, which related to the lean concept. Detailed topics included in this chapter are 1) Principles of Lean Manufacturing; 2) Product cycle time improvement; and 3) Principles of Agile Manufacturing

2.1 Principles of Lean Manufacturing

The Lean production concept had found by Eiji Toyoda and Taiichi Ohno at the Toyota Motor Company after World War II. Toyota Production System or TPS is the original moving assembly line emerges by Toyota Motor that make material flow continuously (Shingo, 1981; Monden, 1983; Ohno, 1988; Jones, Roos, and Womack, 1991).

In the past, the traditional business in manufacturing industry Lean is a philosophy that is a tool for inventory management and production control (Diana Coggin, 1003). The principle of Lean Manufacturing tries to remove non-value-added activities from the production process. Lean Manufacturing technology focuses on the quality, production, customer service, and profitability. The main concept of Lean Manufacturing is that can be work together to create a streamline, high quality system and produce the product meet the customer demand with no waste (Shah and Ward, 2003). The companies can develop, produce and distribute the products by eliminating unnecessary steps, recombining worker in to cross-functional teams in order to assign that activity, planning all steps in a continuous flow, and continuous attempt to improvement. They can also become more flexible and responsive to customer requirement (Harvard Business School Press, 2000).

The benefits of lean manufacturing is greater productivity, lower cost, shorter delivery times, improved quality and increased customer satisfaction. The objective of lean manufacturing is to deliver orders on time with shortest lead time with minimum inventory and with fewer resources.

2.1.1 Characteristics of a Leans process

The principle of lean manufacturing is to eliminate waste in all the processes; there are seven types of waste: overproduction, inefficient transportation, general delays, inefficient internal materials handling, processing, defects and inventory. The principle of lean can be used to improve productivity driven by workers, based on their skill and knowledge of the work and equipment, with the goal of increasing value added work (Holly and Gaskins, 2004)

The characteristics of Lean process assist to flow of process run as continuously as possible with a rapid cycle time. The precise description of each work station activity specifying cycle time, take-time, the work sequence of specific tasks, and the minimum inventory of parts on hand needed to conduct the activity (Stenzel, 2007).

The characteristics of lean processes are:

  • Make to order
  • Single-piece production
  • Just-In-Time materials/pull scheduling
  • Short cycle times
  • Quick changeover
  • Continuous flow work cells
  • Compressed space
  • Multi-skilled employees
  • High first-pass yields with major reductions in defects

2.2 Product cycle time improvement

2.3 Principles of Agile Manufacturing

The Agile Manufacturing was presented in the first time at the publication in the USA of a report entitled 21st Century Manufacturing Enterprise Strategy (Barutcu, 2007). So, it has been introduced as a method of increasing competitive advantage in response to increasingly competitive global markets. Agile concept focuses on the fast response to changeable of customer demand (Mason-Jones, Naylor, & Towill, 2000). Flexibility is the key component in agile manufacturing (Nagel and Dove, 1991; Goldman, Nagel, & Preiss, 1995). Any size of companies can use the agile manufacturing methods by adjusted and consolidated in order to ensure the growth and success. The changeable of technological and customer requirements that make the manufacturers need to develop agile capabilities in order to be competitive (Barutcu, 2007). So, many companies use the flexibility and agility to respond the customers' requirement and markets demand in real time (Mason-Jones et al., 2000; Yusuf et al., 2004).