Kozhukhar 1

Alexander Kozhukhar
Professor Kenneth Dorhout
ENGL 1001
June 28th, 2016
Lean Manufacturing: benefits and challenges.
When thinking of lean manufacturing each one can have a different idea of what that
means. However, each company or industry has a specific way of implementation or utilization
of lean manufacturing procedures.
This paper will examine where and why the concept of lean manufacturing was
introduced. Also, this paper will go over the Toyota lean transformation and how it affected the
lean concept. In addition, the paper will review the most important aspects of lean transformation
success. For instance, this paper will explain why lean transformation is important to the bottom
line of every company across different industries.
The lean was born in Japan in the 1940s within Toyota. Japan has limited resources for
manufacturing and therefore it cannot rely on long production runs. The Toyota Production
System is based on the idea of continuous production flow which ultimately is adding an
enormous value to the end customer (Melton). Unlike Japan, the Western industry has vast
resources, which lead to the use of mass production philosophy based on material resource
planning (MRP) and complex computerized systems. Such philosophy was originally developed
by Henry Ford, who revolutionized the auto making industry and transformed car from luxury
attribute to a piece of a household for everyday use, that most American families are able to
afford. Thanks to Henry Ford, mass producers were able to maintain long productions runs by
using standard designs. This type of mass production gave customers low cost and also less
variety as did the workforce who found this mode of operation tedious (Melton).

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Both strategies of mass production were able to keep up with customer satisfaction and
sales profit. However, things have changed dramatically after the global financial crisis in 2008.
That year Toyota surpassed the worlds largest car manufacturer, General Motors in global car
sales. This fact made worlds leading manufacturers reconsider their attitude about lean. Lean has
become a widely recognized philosophy with its main target of reducing waste and non-value
activities to improve performance in cost-efficiency, performance quality, productivity, and
reduced inventory levels and throughput times (Deflorin).
There are five major tools and techniques that make lean system the best yet known way
of manufacturing thinking:
The Kanban is an inventory-control system to control the supply chain. It uses a visual
signal to support flow by pulling product through the manufacturing process. In other words,
Kanban maintains inventory levels by sending a signal to produce and deliver a new shipment as
a material is used during the manufacturing process. These signals are tracked by suppliers and
buyers which bring astonishing visibility and helps dramatically improve replenishment system
without a need to keep huge inventory (Melton).
The 5S is the technique of visual housekeeping. Workplace organization is an important
aspect of being productive and efficient. The 5S were created from five words beginning with
S: sort, set in order, shine, standardize, sustain (Melton).
Visual control is the method of measuring performance at the shop floor. The key of this
method is to use visual signals to communicate information and avoid using text or other written
instructions (Melton).
Poke Yoke is an error proofing technique. In general, it is a smile mechanism that helps
an equipment operator to avoid mistakes. A good example of Poke Yoke is an Ethernet cable plug

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that is designed to be plugged in only one orientation to avoid cross-polarized connection and
further damaging of equipment. However, we need to understand that there is no solution that
protects against an operators sabotage. Such behavior can be eliminated by education and
cultural principles of the company (Melton).
SMED (single minute exchange of dies) is a system for dramatically reducing the time it
takes to complete equipment changeovers. Its optimal goal is to reduce changeover process to a
single digits of time (under ten minutes). To better understand the SMED technique we can
take a look on a NASCAR pit crew. For many people, changing one tire can take up to fifteen
minutes, but for a NASCAR pit crew, changing four tires takes less than fifteen seconds
(Melton).
The arrival of the global financial crises in 2008 has first of all changed the customers
capabilities and therefore the customers demands. This aspect required many organizations
worldwide to reduce a cost of the products without compromising the quality and become more
responsive to customers demand (Bhamu). The new economic climate has forced manufacturers
to search for an alternative way for organizations of production capabilities. Such circumstances
have been an open door to lean thinkers for the last couple years. With its performance and
waste eliminating ideas, lean production becomes an ultimate choice for survival strategy.
Companies who were able to adapt lean philosophy achieved a tremendous result in releasing
work capital, increasing supply chain speed and reducing manufacturing cost (Melton).
Today we can find several successful stories of lean transformation. Besides Toyota and
Ford, there are many lean companies like John Deere who spent $100 million on transformation
its Iowa plant from mass production to lean manufacturing, Parker Hannifin one of the largest
company in the world in motion control technologies, Textron - the American industrial

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conglomerate, Illinois Tool Works employs 65000 people within 365 locations in thirty-four
countries, Intel - the worlds largest computer chip maker, Caterpillar Inc. machinery
manufacturer, Kimberly-Clark Corporation used to suffer with stuff morale, but things changed
after plant was led by lean thinkers, and Nike the super-cool clothing company who saved
money on energy and waste materials after lean transformation (Sheree).
However, the lean transformation is not an easy task. There are some companies who
failed to become lean. Many top managers are still remaining skeptic toward change over. They
think, Why we have to risk the stability and suffer through the change process if the business is
doing well enough? To succeed in lean transformation, companies will have to solve three
major tasks, called paradoxical tensions (Maalouf).
The paradox of performing is the challenge where managers will have to allocate time
and effort between everyday routine tasks (short-term goals) and lean improvement projects,
which are long-term goals. The following citation depict such tensions among actors: When
should we focus on short term results or long term results, and what the balance is? is always a
dilemma (Maalouf).
The paradox of belonging, based on the distribution of new responsibilities between
employees and assigning new tasks to them. New responsibilities lead to an extra workload on
workers and supervisor during transformation. Therefore, such circumstances may lead to a tense
relationship between management and workforce. Specialists are good at what they do; now
they have to change their work process so they dont feel special anymore; this generates a lot of
tensions among them (Maalouf).
The paradox of organizing rotates around tension of strict standards, which support the
elimination of waste a core feature of lean philosophy, and a need for employees autonomy

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and creativity for solving unexpected problems and dealing with future challenges (Maalouf).
People naturally decline to accept new policies, new schedule, and a new way of doing their job.
For instance, companies who were not successful in lean transformation in the majority they
were not well prepared for changes to take over. It is critical to collect and analyze the data.
Before the start, managers need to understand and identify both waste and value, develop
knowledge management base, realize and get ready for a culture of continuous improvement. In
most cases, inability in appealing shop floor employees (including supervisory staff) in lean,
poor supervisory skills in leading workers, and insufficient lean knowledge are some of the
major obstacles in lean transformation (Chay).
Lean transformation, however, can be seen as a huge tool to increase profit and achieve
positive bottom line revenue. As every other change, it can come with obstacles and negative
feedback from the line employees; however, it will prove to everybody that with time and
perseverance the results can be better. Every companys goal is to be financially successful and
results cannot be achieved if lean is not applied. The lean process can be utilized by many
different industries nevertheless, each industry can be improved by using lean standard
manufacturing procedures. The success of lean is in people believing in change and be open to
change.

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Works Cited
Bhamu, Jaiprakash, and Kuldip Singh Sangwan. "Lean Manufacturing: Literature
Review and Research Issues." International Journal of Operations &
Production Management 34.7 (2014): 876-940. Print.
Chay, TickFei, et al. "Towards Lean Transformation: The Analysis of Lean
Implementation Frameworks." Journal of Manufacturing Technology
Management 26.7 (2015): 1031-52. Print.
Deflorin, Patricia, and Maike Scherrer-Rathje. "Challenges in the Transformation to
Lean Production from Different Manufacturing-Process Choices: A PathDependent Perspective." International Journal of Production Research (2012):
3956-73. Print.
Maalouf, Malek, and Britta Gammelgaard. "Managing Paradoxical Tensions during
the Implementation of Lean Capabilities for Improvement." International
Journal of Operations & Production Management 36.6 (2016): 687-709. Print.
Melton, Trish. "The Benefits of Lean Manufacturing: What Lean Thinking has to Offer
the Process Industries." Chemical Engineering Research and Design 83.6 A
(2005): 662-73. Print.
Sheree, Hanna. Top 10: Lean manufacturing companies in the world. 12 June 2014.
Electronic. 28 June 2016.
<http://www.manufacturingglobal.com/top10/38/Top-10:-Lean-manufacturingcompanies-in-the-world>.