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When the job can be done consistently, then improvement can be made. The scientific methodology is the driving force to quality. The challenge is the need to implement FDA's risk approach.
Process analytical Technology (PAT) is a scientific risk-based framework to help pharmaceutical companies design, develop, and implement new efficient tools for use during product manufacture and quality assurance while maintaining or improving the current level of product quality assurance (FDA). PAT consists of two general components: 1) a set of scientific principles and tools supporting innovation and 2) a new regulatory strategy for accommodating innovation. It includes the PAT team approach. The primary focus of scientific manufacturing is to find new ways to use knowledge acquired during the processes and risk-based decisions. It is important for all team members to fully understand the processes and how they work.
With the team approach, work is standardized so each one knows…
FDA. Pharmaceutical cGMPS for the 21st century -- a Risk-Based Approach: Second Progress Report and Implementation Plan. 17 Aug 2009. Article. 14 May 2013.
Green, a. & O'Rourke, D. "Lean Manufacturing practise in a cGMP environment." Pharmaceutical Technology Europe, Vol 18 Issue 10 (Oct 1, 2006). Article.
Hunt, J. The "Just-in-Time" Method. 2013. Article. 11 May 2013.
Lean Production: A jaguar case study. n.d. Article. 11 May 2013.
Lean Manufacturing/Lean Service
Lean manufacturing and lean service are business techniques that can provide benefits and advantages to both the business owners and their customers. With lean manufacturing and lean service, a business does not only eliminate the unnecessary elements in doing business but similar assures the quality of the products and services that they deliver to customers and clients. There are several elements that compose lean manufacturing and service. From Lean Master Consulting, the following are some of the most important elements.
Elimination of Waste - eliminate those that are not important
Equipment Reliability - steadfast equipments when needed for operation
Process Capability - efficient process from development to production to delivery
Error Proofing - checking the quality of products and services before delivery
Stop the Line Quality System - when bad quality has been found, immediately stop the production
Standard Work - an organized system or…
Basic Elements of Lean Manufacturing.
Retrieved on May 24, 2005, from the Internet.
Web site: http://www.leanmasters.com/elements.html
Kincaid, W. Lean Manufacturing: Unexpected Benefits for Accident Prevention.
Lean production is often seen as a panacea for all levels of production complexity, from the relatively simple assemble-to-stock to the very complex engineering-to-order workflows. The greater percentage of a given product that is specifically tailored to a customers' unique requirements, the higher the level of greater the contribution of lean manufacturing to overall cost reduction (Hallgren, Olhager, 2009). It has often been said in research that the universality of the lean production concept is a chimera and enterprises must make choices as to the best possible production system for their specific strategic business requirements (Cooney, 2002). This is true with the caveat that the greater the level of customization of a given product and the need to ensure a high level of agility in the sourcing, supply chain and production process, the greater the need for a uniquely defined lean manufacturing system (Shetty, Ali, Cummings, 2010).
Chen, H., Lindeke, R.R. & Wyrick, D.A. 2010, "Lean automated manufacturing: avoiding the pitfalls to embrace the opportunities," Assembly Automation, vol. 30, no. 2, pp. 117-123.
Cooney, R. 2002, "Is "lean" a universal production system? Batch production in the automotive industry," International Journal of Operations & Production Management, vol. 22, no. 9, pp. 1130-1147.
Doolen, T.L., Nagarajan, R.D. & Hacker, M.E. 2002, "Lean Manufacturing: An Electronics Manufacturing Perspective," IIE Annual Conference.Proceedings,, pp. 1-7.
Hallgren, M. & Olhager, J. 2009, "Lean and agile manufacturing: external and internal drivers and performance outcomes," International Journal of Operations & Production Management, vol. 29, no. 10, pp. 976-999.
The lack of manufacturing integration to this process was responsible for $60 of the $200 per order processing cost.
Figure 1: Typical order Workflow
Business Process Management analysis showed that there were several iterations of documents at the initial customer design sessions, and each iteration had slightly different input for the manufacturing orders. The analysis of this area through lean manufacturing BPM techniques also showed that by using more of a knowledge management system than just a simple Microsoft Excel database to capture customer requests, the expertise in the company could be better applied to the unique orders. Six Sigma analysis of these initial phases of an order showed that the company was not using any of the accumulated expertise or knowledge it had gained over decades of work in the product area they specialized in, which is heating and cooling equipment.
Using BPM-based workflow tools and techniques the…
Lean Manufacturing and JIT
Evaluate three of the main elements of both lean thinking and JIT. How can these concepts be used for effective planning and control of an operation? How are these two concepts different? How can the differences in each concept be overcome to achieve maximum efficiency benefits of both lean thinking/JIT systems?
Lean thinking was introduced to improve the traditional 'batch-and-queue' manufacturing process. One of the core principles of lean manufacturing is that of 'one-piece flow,' a system that "rearranges production activities in a way that processing steps of different types are conducted immediately adjacent to each other in a continuous flow" (Lean thinking and methods, 2012, EPA). This is designed to eliminate wasteful movements of workers and compress the time required to produce each, individual component of the manufactured product. Lean thinking strives to maximize efficiency of both time and resources. Lean thinking is also…
Lean thinking and methods. (2012). EPA. Retrieved:
Lean thinking and JIT Operations. (n.d). PowerPoint. Retrieved:
These measures of performance vary significantly across manufacturers, yet lean manufacturing initiatives share a common basis in core areas of measurement. These common areas of measurement to evaluate the performance of lean manufacturing initiatives include company-specific, Sales, Quote and Order, Customer Service, and Warranty & eturns (Hallgren, Olhager, 978, 979). Depending on the intersection of lean manufacturing process and level of product customization as defined by to-order strategy a subset of the metrics shown in Table 3: Comparison of Lean Manufacturing Metrics and Performance are often used.
Table 3: Comparison of Lean Manufacturing Metrics and Performance
Areas of Measurement
Baseline: What is Measured
Project costs and expenses
Use as a baseline for defining OI
Number of orders per year
Determine configuration's impact on inventory turns
Current inventory and costs
Inventory turn savings
Lifetime cost per customer; avg. deal size by customer
Order cycle time…
Cavusoglu, Hasan, Huseyin Cavusoglu, and Srinivasan Raghunathan. "Selecting a Customization Strategy Under Competition: Mass Customization, Targeted Mass Customization, and Product Proliferation." IEEE Transactions on Engineering Management 54.1 (2007): 12-28.
Grewal, Chandandeep. "An initiative to implement lean manufacturing using value stream mapping in a small company." International Journal of Manufacturing Technology & Management 15.3/4 (2008): 404-417.
Hallgren, Mattias, and Jan Olhager. "Lean and agile manufacturing: external and internal drivers and performance outcomes." International Journal of Operations & Production Management 29.10 (2009): 976-999.
Kumar, Sameer, and Sarah Craig. "Dell, Inc.'s closed loop supply chain for computer assembly plants." Information Knowledge Systems Management 6.3 (2007): 197-214.
this therefore means that it is important to first clarify the different perspectives represented herein for example creation of multilevel framework including the analysis of well-established literature that is related to this discussion .
Womack, Jones and oos (1990) in their canonical work The Machine that Changed the World were the first ones to formally introduce Lean Product Development. Although they mainly focused on manufacturing and assembly processes, they still describe some tools and methods that are used to achieve Lean performance in Product Development including Concurrent Engineering. Consequently it should be noted that there is a strong connection between Lean Product Development and Concurrent Engineering.
Concurrent Engineering has been defined by Winners et al. (1998) as the systematic approach that integrates the concurrent designs of the different products in relation to their manufacturing and supporting processes with the intention to cause developers of these products to consider all the…
Wiremold's Success With Lean Manufacturing
Evaluating Wiremold's Success with Lean Manufacturing
Wiremold successfully transformed itself from highly inefficient production and manufacturing processes that had centered on batch-and-queue methods of scheduling to be one of the acknowledged global leaders in lean manufacturing. So great were there accomplishments that they were mentioned in the book Lean Thinking and have consistently been used as a case study of how the adoption of lean manufacturing frameworks and principles can transform the financial performance of a company (Fiume, 2004). Previously to implementing lean initiatives, the company earned $100M in revenues and had an enterprise value of $30M. Within just ten years of operating with lean manufacturing processes in place the company had revenues grow to $450M and a value of $770M, which is the price the company was sold at in that year. For a transformation to be this successful and pervasive, a cultural shift…
Nauhria, Y., Wadhwa, S. & Pandey, S. 2009, "ERP Enabled Lean Six Sigma: A Holistic Approach for Competitive Manufacturing," Global Journal of Flexible Systems Management, vol. 10, no. 3, pp. 35-43.
Saurin, T.A., Marodin, G.A. & Ribeiro, J.L.D. 2011, "A framework for assessing the use of lean production practices in manufacturing cells," International Journal of Production Research, vol. 49, no. 11, pp. 3211.
Shetty, D., Ali, A. & Cummings, R. 2010, "Assess Lean Model for Thinking Manufacturing Initiatives," IIE Annual Conference.Proceedings,, pp. 1-6.
Chipotle: Lean Manufacturing
Applying lean manufacturing to the food industry
Even though the food industry faces certain unique challenges regarding manufacturing (such as maintaining appropriate sanitary measures), there are many similarities between it and other industries
Particularly in the fast food industry, where foods are 'assembled' at point-of-purchase with standardized materials the concepts of lean manufacturing can be applied
isk of applying lean in food industry, lean culture
Traditionally, it has been assumed that the food industry did not lend itself to lean manufacturing principles
"Typically these business types sell their product from large distribution or product mixing centers, and are not make-to-order businesses" (Heymans 1).
Fast food companies "manufacture to a forecast, and usually the forecast lead time to production is long, resulting in large differences between the forecast that drives production levels, and actual demand" (Heymans 1).
However, "companies in this industry have the same cost, quality and…
Heymans, B. Lean manufacturing in the food industry. Retrieved from:
classical examples of some of the consequences that globalization has for some American companies. Indicated as one of Orleans's best supplier of different parts and accessories, used in the construction of elevators, Customs Fabricators Inc. faces the cheaper competition from Mexico. Orleans has decided to reduce its production costs and has organized an auction, where suppliers from Mexico are seen as favorites, due to their low costs. On the other hand, one of Customs's main advantages was its presence next to the Bedford plant, where some of the parts it used were produced. If a company from Mexico would be chosen, then there would be no legitimate reason for Orleans not to move the entire production facility to Mexico.
Ben's company crates value by supplying Orleans with parts and accessories. The distinct specialization of Ben's company ensures that the accessories and parts produced respond to the exact requirements from Orleans.…
Though there are an increasing number of manufacturers who are successful in implementing lean principles to the factory floor, using them to the rest of the organization has a long way to go. (Moving lean beyond the factory floor)
To conclude, History has established that Lean Manufacturing is here to settle. The query is, "Will your company adopt Lean Manufacturing and make it an enduring company strategy and eventually a way of life?" The answer to this query will decide whether the company will endure in the ever more aggressive manufacturing environment that we live in. (Timco, 2001)
Becker, onald M. (June, 2001) "Lean Manufacturing and the Toyota Production System" Automotive Manufacturing and Production. pp: 12-16
Chaneski, Wayne S. (February, 2001) "Companies Starting to Think About Lean Manufacturing" Modern machine Shop. pp: 10-15
Clarke, J. (14 July, 2004) "Lean's Benefits are Clear, but Many Manufacturers are Significantly Behind their…
Becker, Ronald M. (June, 2001) "Lean Manufacturing and the Toyota Production System" Automotive Manufacturing and Production. pp: 12-16
Chaneski, Wayne S. (February, 2001) "Companies Starting to Think About Lean Manufacturing" Modern machine Shop. pp: 10-15
Clarke, J. (14 July, 2004) "Lean's Benefits are Clear, but Many Manufacturers are Significantly Behind their Vision for Lean, says Aberdeen Group Report" Business Wire. pp: 5-11
Harbour, Ron. (December, 2001) "Leaders are responsible for lean - Opinion & Analysis: Manufacturing" Automotive Industries. pp: 17-20
In chasing the cost reductions made possible with manufacturing offshore many companies open themselves up to precisely the challenges of illustrated in the Napoli case study. The effects of lean production on new initiatives are that it actually stops the cultural integrative aspects of companies in new nations and regions.
Lean production is a mirage as it states that more can be done with less. The many benefits of lean production come at the expense of longer, more monitored and more stressful hours on workers, and a myopic approach to measuring results. Lean production is often called the elimination of both wasted processes and products from a manufacturing strategy, yet the truth is that lean production is another word for cost reduction in many companies. The need for using an accelerated process management technique, where entire series of business areas are revamped provides an illusion of progress when it…
Alstyne, Marshall van, Erik Brynjolfsson, and Stuart Madnick. "The Matrix of Change: A Tool for Business Process Reengineering." MIT Sloan School Working Papers available on the Internet, accessed on April 2, 2007:
Alstyne, Marshall van, Erik Brynjolfsson, and Stuart Madnick "Why Not One Big Database? Principles for Data Ownership." Decision Support Systems 15.4 (1995): 267-284.
Porter, Micheal. The Competitive Advantage of Nations. The Free Press. Boston, MA, 1998.
..The carts have had a big impact on our setup process. Machine downtime during setup has been reduced by more than 50%. Product quality has improved; we have been able to reduce lot sizes by 50%; and operators can set up machines instead of searching for hardware, tools and documents. As we reduced lot sizes, other opportunities for improvement surfaced. e found it was better to have the material supplier precut the barstock. e now manage precut inventory with a two-bin pull system and an electronic replenishment signal delivered to the material supplier. This has increased inventory turns, reduced manufacturing order pick time from over 3 hours to less than 5 minutes and reduced floor space by over 50%." (Chaneski, 2006, italics mine)
In this example, a quantifiable reduction in time was achieved, with a corresponding improvement in quality, because operators were better able to implement the necessary steps in…
Chaneski, Wayne. (2006) "Company implements lean strategies." MMS Online. Retrieved 16 Aug 2006 at http://www.mmsonline.com/articles/0103ci.html
" In those manufacturers who are attaining lean enterprise-level performance, the cultures of their companies have become incredibly focused on metrics, and in fact the organizations themselves have become so metrically driven that the culture itself embraces the concept of measuring performance and improvement (Nash, Poling 2007).
Lean positioned for cost cutting vs. customer-driven change. This is also a critical mistake many manufacturers make, and often becomes the main focus these companies continue to pursue, as opportunities to better integrate their strategies with customers, suppliers, buyers, and service organizations present themselves.
Evolution of the Lean Enterprise
Manufacturers have continually struggled to gain the advantages of lean manufacturing, starting first with manufacturing processes at the shop floor level and progressing to a vision of implementing an entire lean enterprise. What's become essential in the pursuit of the lean enterprise are the creation of strategies for driving waste of all types (time,…
Aberdeen Group (2005). Best Practices in Strategic Service Management. Aberdeen Group Report. June, 2005. Boston, MA. Executive Summary. Retrieved January 26, 2008.
Aberdeen Group (2006). Best Practices in International Logistics. Aberdeen Group Research Report, January, 2006. Boston, MA.
Retrieved January 31, 2008
Adamides, N Karacapilidis, H Pylarinou, D Koumanakos. (2008). Supporting collaboration in the development and management of lean supply networks. Production Planning & Control, 19(1), 35. Retrieved January 31, 2008, from ABI/INFORM Global database. (Document ID: 1423331461).
Some also wonder where the six sigma term that is used so often in lean manufacturing came from. The sigma is a Greek letter which is used to represent the standard deviation of a targeted population (Gupta, 2003). The six sigma term therefore comes from the idea that, if one has six standard deviations that come between the mean result of any process and the nearest limit for specification, than one will create virtually no items that actually exceed those specifications (Gupta, 2003). This idea is the main basis for what is called the process capability study, which is generally used by quality professionals, and the six sigma term has roots within that particular tool.
In summary, all management theories are very important when it comes to what is appropriate for businesses (Achanga, et al., 2006). The theory of constraints is discussed first because it is the theory that goes…
Achanga, Pius, Shehab, Esam, Roy, Rajkumar, & Nelder, Geoff. (2006). Critical success factors for lean implementation within SMEs. Journal of Manufacturing Technology Management, 17(4).
Cusumano, Michael a. (1998). Thinking beyond lean: How multi-project management is transforming product development at Toyota and other companies. London: Free Press.
Emiliani, M.L. (2000). Supporting small businesses in their transition to lean production. Supply Chain Management: An International Journal, 5(2).
Gupta, Praveen. (2003). Six Sigma Business Scorecard. McGraw-Hill Professional.
Seven Key Elements for Successful Implementation
Norman inette, Jr.
Manufacturing organizations are built on the premise that they possess the ability to provide a wide variety of quality products for their customers. This reputation is dependent upon the constant review of existing processes and the identification of new and innovative methods of production that will enhance and increase the diversification of product lines. One such process that has proven itself as a valuable commodity in recent decades is World Class Manufacturing. This process involves a number of complex steps encompassing a variety of business units that are subject to continuous review and improvement. This process is designed to maximize employee productivity at all levels of the organization, from the assembly line to executive management. A successful World Class Manufacturing strategy will provide the organization with numerous opportunities for growth and will enable a successful transition to unique…
Ahmad, S., and Schroeder, R. (2002). The importance of recruitment and selection process for sustainability of total quality management. International Journal of Quality & Reliability Management, 19(5), 540-550.
Benton, W.C., and Shin, H. (1998). Manufacturing planning and control: the evolution of MRP and JIT integration.
European Journal of Operational Research, 110, 411-
Damiani, A.S.M. Looking for the Gold: A TQM Success Story. POSPublications.
Suddenly instead of focusing on price competition American manufactures could ratchet up customer expectations and meet them, winning customer loyalty at a profitable price. In effect American industries that don't go after these process efficiencies are in effect handing their potential for profits to other nations; industry as competing on price is in effect competing to lose profitability over time. Instead American manufacturing must re-center on competing with aggressive intelligence and a focus and intensity to serve the customers they have more than any global competitor. To get to this level of performance against global competitors who are already focused on process efficiencies with customers at the center of them, American manufacturers must embrace lean manufacturing principles, processes and procedures to make their operations more efficient and profitable (Mann, 2009). This needs to get beyond using Six Sigma to simply re-architect specific processes; the focus must be strategic and on…
Michael Burkett. (2005, July). The "Perfect" Product Launch. Supply Chain Management Review, 9(5), 12-13.
Patrick Crampton-Thomas. (2006, May). Enabling Profitable Growth Through Demand Driven Supply Networks. Supply Chain Europe, 15(2), 18-21.
Jeffrey H. Dyer & Kentaro Nobeoka. (2000). Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal: Special Issue: Strategic Networks, 21(3), 345-367.
Kasra Ferdows. (2006). Transfer of Changing Production Know-How. Production and Operations Management, 15(1), 1-9.
LEAN TECHNIQUES APPLIED TO BUSINESS IN TODAY'S WORKFORCE
Simply put, in the business sense of it, lean means creating more value using fewer resources. Therefore, a lean organization is one that focuses more on maximizing customer value with minimal waste. Its key process is mainly to produce its customer value products increasingly. Lean is about standardizing work process to make problems visible and develop the team members' critical thinking ability so that they can solve those problems and improve work processes
Toyota uses lean strategy in such a way that when the vehicle is ordered by a customer they prioritize it and makes the vehicle ordered for in the quickest and most effective way and make sure it is delivered as quick as possible.
Toyota production system is made based on two concepts as follows:
Automation with human touch (JIDOKA)- this is where machines are supposed to stop safely…
Lean Production is an innovative production technique of Japanese origin that aims at bring efficiency in production. The system comprises of various different techniques, all focusing on ensuring best quality and maximum levels outputs in minimum inputs. Minimum inputs here, not only refer to minimum in terms of materials, but also in terms of time and cost thus ensuring minimum wastage (Stevensons, 2008). Methods that are part of Lean Production include Kaizen, Kanban, Cell Production, Just In Time, and Total Quality Management.
Another thing that differentiated companies practicing Lean Production methods is the way they adhere to accounting principles. Also referred to as 'Lean Accounting' this method of cost accounting and managerial accounting allows accountants to efficiently divide their costs in processes and get accurate results rather than crude estimates. One of the pioneers in Lean Production and Lean Accounting System is the renowned automotive company, Toyota Motors.
Wood, F & Sangster, A (1999). Business Accounting 2, UK: Prentice Hall,.
Drury, C (2006). Cost & Management Accounting: An Introduction. USA: Thomson.
Williamson, D (1996(. Cost & Management Accounting. UK: Prentice Hall.
Harper, W (1995). Cost & Management Accounting. UK:Pitman Publishing.
Pencil Manufacturing and Marketing
Production and Marketing of Pencils
Profit and Loss
Principle of Profit
Factors of Production
Economic Conditions Affecting the Business
The Equilibrium Point or Market Price
Competition within the Free Market
Benefits and Limitation of Free Market
Import and Export of Pencils
Strategies for eaching Global Market
Managing Business Ethically and esponsibly
easons for Business Ownership
Development of the Industry
Cross-Functional Semi-Managed Teams
Techniques to Improve Manufacturing
Operation Management Planning
Facility of Location
Motivation of Employees
Training the Employees
Objectives of Compensation and Appraisal
Determining Human esource Needs
Determining Threats to the Industry
This paper discusses the complete process of manufacturing of a…
Coper, L. (2010, July 1). Marketing Week. Five Strategies for a Successful Market Brand.
Dube, L. (1998). The copying Pencil. Composition, History, Conservation and Implications.
Francis, M. (2007, January 20). Changing Minds. Effective Management.
Ingram, D. (2009). Small Business. The Difference Between Process and Product Layout Manufacturing.
Owning a business can be difficult and challenging, but can also be highly rewarding. This paper will address a manufacturing business that will employ a minimum of 20 people. When a person has employees, how he or she operates the business changes drastically as compared to a business where the owner is the only "employee." With that in mind, it is vital to be aware of the issues the business will face and how those issues should be handled in order to allow the business to grow and prosper. The first thing that needs to be done is to create a good strategy by which the business will operate. That will be addressed in the following pages, along with how the strategy impacts the process selection and product design. Additionally, supply chain management and total quality management will also both be discussed, along with just-in-time manufacturing and…
Cooper, M.C., Lambert, D.M., & Pagh, J. (1997) Supply chain management: More than a new name for logistics. The International Journal of Logistics Management, 8(1): 1 -- 14
Cua, K.O., K.E. McKone, K.E., & Schroeder, RG. (2001). Relationships between implementation of TQM, JIT, and TPM and manufacturing performance. Journal of Operations Management, 19(6) 675-694.
Hines, T. (2004). Supply chain strategies: Customer driven and customer focused. Oxford: Elsevier.
Hirano, H. & Makota, F. (2006), JIT Is flow: Practice and principles of lean manufacturing. New York: PCS Press, Inc.
Ayers (2000, p. 4) describes a supply chain as "Life cycle processes supporting physical, information, financial, and knowledge flows for moving products and services from suppliers to end-users." A supply chain can be short, as in the case of a cottage industry, or quite long and complex as in the manufacture, distribution, and sales of automobiles. In fact, the automobile supply chain has its origin in the mining of the iron ore used to make many of its components.
Forward-looking companies and industries are beginning, now, to leverage the communication power of the Internet to improve their supply chain efficiencies. In the same way that early computers offered improved efficiency within the walls of a company, the promise of "Internet Technologies" (IT) now offers potentially far-reaching positive effects throughout a company's entire manufacturing supply chain. If the changes brought about by an "Internet revolution" such as thin-client technology; seamless integration…
Aerospace engineering online (2004). Retrieved December 18, 2004 from http/ / www.sae.org/automag/techupdate_2-00/06.htm.
Andrews, F. (2001). "Dell, it Turns Out, Has a Better Idea than Ford." Lean strategies
Group -Manufacturing and supply chain consultants. Retrieved December 19, 2004 from http/ / www.leanstrategies.com/dell-ford.htm.
Ayers, J.B. (2000). Handbook of Supply Chain Management. Boca Ratan, FL: St. Lucie Press.
Logistics & Transportation Managers Benefit
From the Use of Lean Six Sigma
Given the continual economic turbulence and uncertainty surrounding nearly every industry, the need for stabilizing, securing and growing supply chains has become critically important for the long-term viability of many manufacturing and services-based industries. Lean Six Sigma continues to gain widespread adoption as enterprises look to better manage their supply chains by reducing risk, costs and increasing speed, accuracy and responsiveness to customers' rapidly changing demands (Huehn-Brown, Murray, 2010). The DMAIC Define, Measure, Analyze, Improve and Control) methodology that is foundational to Lean Six Sigma continues to be relied on for bringing the Voice of the Customer (VoC) into new product development initiatives, manufacturing, customer service and order process re-engineering initiatives as well (Found, Harrison, 2012). Lean Six Sigma is critically important for any enterprise looking to streamline its processes and gain greater levels of customer-driven improvements into…
Byrne, G., Lubowe, D., & Blitz, A. (2007). Using a lean six sigma approach to drive innovation. Strategy & Leadership, 35(2), 5.
Found, P., & Harrison, R. (2012). Understanding the lean voice of the customer. International Journal of Lean Six Sigma, 3(3), 251-267.
Hofman, D. (2004). The Hierarchy of Supply Chain Metrics. Supply Chain Management Review, 8(6), 28-37.
Huehn-Brown, W., & Murray, S.L., P.E. (2010). Are companies continuously improving their supply chain? Engineering Management Journal, 22(4), 3-10.
Quality Management System and Continuous Improvement
Six Sigma Strategy for Continuous Improvement
Implementing Six Sigma
Lean Strategy for Continuous Improvement
Lean and Sig Sigma Interrelated
Industrial application of lean / six sigma
Lean / Six Sigma in Service Industry
Lean / Six Sigma in Manufacturing Industry
Lean / Six Sigma in Construction Industry
Lean / Six Sigma in Mining Industry
Effectiveness of the Lean / Six Sigma in the Industry
Population and Sampling
In the business management strategy, quality plays a major role for global organizations that seeks market competitive position through achieving customer satisfaction more successfully, advancing on internal business processes and reducing cost. The process of globalization is shrinking the market place, creating new avenues for business and confronting them with more challenges and international competition. Under such scenario customer expectations are growing as they can find variety and easy substitute of product and service whereas the products…
Antony, J, & Banuelas, R. (2002). Key ingredients for the effective implementation of six sigma program. Measuring Business Excellence, 6(4), 20-27.
Antony, J. (2004). Some pros and cons of six sigma: an academic perspective. The TQM Magazine, 16(4), 303-306.
Bernett, R, & Nentl, N. (2010).Opinions and Expectations about Continuous Improvement Programs. Journal for Quality & Participation, 32(4), 35-38.
Berwick, D. (1989). Continuous improvement as an ideal in health care. The New England Journal of Medicine, 320(1), 53-56.
manufacturing models that appear to be incompatible at first glance. The conclusion is that integration is possible, and that this can be done to the benefit of both the manufacturer and the company as user. The integrated software package, enterprise resource planning, or ERP, has been used by organizations for the part ten years. However, material requirements planning problems resulted in the emergence of a new manufacturing model, known as Lean. The rest of the article considers the viability of using the systems together, since many companies have an investment interest in ERP, while integrating components of Lean to optimize their production efficiency.
The main difference between Lean and ERP is that the former places emphasis upon continual production improvement, while the latter is mostly concerned with planning. The premise is that ERP slows down the production process by unnecessary data tracking, while Lean aims at optimizing production speed.
Bradford, M., CPA, and T. Mayfield. "Does ERP Fit in a Lean World?," 2001.
Lean Principles to Service Processes:
Lean principles have been in existence for hundred years though global interest was fueled by the success of Toyota Company that developed Toyota Production System. The focus of operations based on lean principles is removing waste and lessening lead times that exist between customer demand and fulfillment. These principles are necessary in improving the speed, accuracy, and quality of customer service through continuous identification and elimination of activities, resources, and purchases that are not necessary to service delivery ("Achieving a Lean Service," 2010). While lean principles are applicable to service processes and generate positive results, their adoption in the service sector is relatively low. Actually, lean service shows that the practical imagination used so efficiently in manufacturing can be applicable to service industries with similar positive outcomes (Bowen & Youngdahl, 1998).
As lean principles have been effectively used in manufacturing firms for decades, these principles…
Bowen, D.E. & Youngdahl, W.E. (1998), "Lean" Service: In Defense of a Production-line
Approach, International Journal of Service Industry Management, vol. 9, no. 3, pp. 207-225.
Buggy, J.M. & Nelson, J (2005), Applying Lean Production in Healthcare Facilities,
InformeDesign, viewed 20 July 2012,
There has been much debate and consideration extended towards the major quality and process movements of the last several generations. This is true both in the United States and around the world. Some of the more common ones, and indeed the ones that will be covered in this report, include Six Sigma, Lean Six Sigma and Business Process eengineering (BP). There are also other movements and methods such as CMM, ITIL and ISO 9000. However, the three mentioned prior will be the focus. While no single process method is perfect and usable in all situations, they are all quite impressive in their own rights when chosen and wielded correctly.
Six Sigma is perhaps one of the more notorious and well-known process improvement techniques in the United States and perhaps around the world as well. It was created in 1986 by Motorola Corporation. The clearest and brightest example of a…
George, M.O. (2010). The lean six sigma guide to doing more with less cut costs, reduce waste, and lower your overhead. Hoboken, N.J.: John Wiley & Sons.
Gygi, C., Williams, B., & Gustafson, T. (2006). Six sigma workbook for dummies.
Hoboken, NJ: Wiley Pub..
Klein, M.M. (1994). Reengineering methodologies and tools. Information Systems
Health Care -- Lean Philosophy on Cost Reduction and Quality Improvement
Lean Philosophy is initially traced back to Henry Ford's innovative assembly line, revolutionizing manufacturing while failing to provide true variety. Building on Ford's concepts Toyota management established a Lean Philosophy in the 1930's and 1940's that focused on production flow and waste elimination, resulting in rapid, low cost and high quality processes, along with simpler and more accurate management. These concepts were further elucidated by authors including James omack, who established the Lean Enterprise Institute in 1997.
The essential elements of Lean Philosophy are 5 principles including: defining the value sought by the customer; specifying the value stream of the product satisfying that value while challenging wasted steps; making a continuous flow of product through refined steps; creating "pull" (essentially meaning "customer demand/expectation") from step-to-step for continuous flow wherever possible; continually improve and refine the process to cut the…
Berk & Associates. (2011). Idea: Lean government. Seattle, WA: Washington State Auditor's Office.
Jimmerson, C. (2010). Value stream mapping for healthcare made easy. New York, NY: Productivity Press.
Lean Enterprise Institute. (2009). 5S - Visual workplace. Retrieved October 5, 2012 from www.lean.org Web site: http://www.lean.org/Workshops/WorkshopDescription.cfm?WorkshopId=39
Lean Enterprise Institute. (2009). Lean timeline. Retrieved October 5, 2012 from www.lean.org Web site: http://www.lean.org/WhatsLean/Timeline.cfm
organizations can adhere to simple frameworks structured with a purpose of attaining continuous improvement in its operations or its supply chain. These structured approaches aid and facilitate different aspects such as decision-making, problem solving, as also process enhancement. This paper discusses the existing interrelations between organizations that utilize structured frameworks for improvement together with their operational performance through case studies
General Motors Company
General Motors Company is a multinational company involved in designing, manufacturing, marketing, and distribution of vehicles, vehicular parts, and accessories. The headquarters of the company is situated in Detroit, Michigan. The company founded in the year 1908, is 108 years old today. It is centered in the automotive industry and is one of the major renowned companies in more than thirty nations and operating with about thirteen brands. The business units of General Motors include General Motors Financial, General Motors International Operations, General Motors North America, General…
Burden, M. (2015). GM's new problem-solving focus reaps savings. The Detroit News. Retrieved 27 June 2016 from: http://www.detroitnews.com/story/business/autos/general-motors/2015/09/06/gm-savings/71829946/
Ford Motor Company. (2016). Ford Future Competitiveness. Retrieved 27 June 2016 from:http://corporate.ford.com/microsites/sustainability-report-2013-14/financial-competitiveness.html
Ford Motor Company. (2016). History. Retrieved 27 June 2016 from:http://corporate.ford.com/company/history.html
General Motors. (2016). History and Heritage. Retrieved 27 June 2016 from: http://www.gm.com/company/history-and-heritage.html
STANDARD-ASED COSTING AND PERFORMANCE MEASURES FOR TODAY'S MANUFACTURING ENVIRONMENT
This paper outlines the various defect of the standard-based costing method and how they do not effectively measure manufacturing environment of today. It has 8 sources in Turabian style.
Cost control is needed by businesses to plan the actual cost it might incur on the production of certain commodities. The budget is an overall costing system but sub-division is needed if and when the company requires detailed cost structure of the department. This is necessary for achieving the overall goals of the organization.
In production organizations, such as manufacturing companies, the basic concern of the management is to have smooth operations with the least cost possible. There the existence of cost is measured by the tangible output each component of the department produces. Income is compared to the cost incurred. A system that is set for measuring the performance level of…
Davies, Ieuan, 03-01-1997. Are we going in the right direction? (production management techniques). Vol. 75, Management Accounting (British), pp 52(1). Lucas, Mike, Standard costing and its role in today's manufacturing environment.. Vol. 75, Management Accounting (British), 04-01-1997, pp 32(3).
Bear, Robert; Mills, Roger; Schmid, Felix, 12-01-1994. Product costing in advanced technology environments. (cost accounting in manufacturing environments). Vol. 72, Management Accounting (British), pp 20(3).
Lucas, Mike, 04-01-1997. Standard costing and its role in today's manufacturing environment.. Vol. 75, Management Accounting (British), pp 32(3).
Dugdale, David; Jones, Colwyn, 05-01-1996. Accounting for throughput.(part 2, practice). Vol. 74, Management Accounting (British), pp 38(5).
supply chain operations, the four companies that clearly stand out from the list provided are Apple, Wal-Mart, PepsiCo and Procter & Gamble. The author chose Apple because they are very present or dominant in several major consumers electronics realms including computers, MP3 players and smartphones. Wal-Mart gets a nod because they move a ton of product every year. They are the top retailer in the world and it is not even close. They alone comprise three percent of the GDP of the United States. PepsiCo gets a nod because they are like Apple and Wal-Mart. They are a giant in their field (like Wal-Mart) and they have their tentacles in several different markets including the soft drink market, the energy drink market and, at one time, fast food. egarding the latter, Yum Foods owns KFC, Taco Bell and Pizza Hut and Yum used to be a Pepsi subsidiary. Be it…
Harps, L. (2006). Innovation: A Fresh Eye on the Supply Chain - Inbound Logistics. Inboundlogistics.com. Retrieved 30 January 2016, from http://www.inboundlogistics.com/cms/article/innovation-a-fresh-eye-on-the-supply-chain/
Oracle. (2016). Lean/Six Sigma: The quest for efficiency in manufacturing. Reliableplant.com. Retrieved 30 January 2016, from http://www.reliableplant.com/Read/4674/lean-six-sigma-efficiency
Rice, J. (2016). How Many Supply Chain Innovations Are Truly Revolutionary? - Supply Chain 24/7. Supplychain247.com. Retrieved 30 January 2016, from http://www.supplychain247.com/article/how_many_supply_chain_innovations_are_truly_revolutionary
Yahoo Finance. (2016). Yahoo Finance - Business Finance, Stock Market, Quotes, News. Yahoo Finance. Retrieved 30 January 2016, from http://finance.yahoo.com
Through this, the owner of Ford Motors Corporation was able to increase production levels and to reduce costs. "Even then when the lean manufacturing concept was years away, Ford had a focus on reducing time and material waste, increasing quality, and lowering cycle times, in order to achieve a lower cost vehicle which was reflected in the price reduction of the model T. year on year. This focus allowed him to reduce costs, even though he payed his workers well, and provide a great value product to the customer" (Lean Manufacture Website, 2009).
The editors at the Lean Manufacturing Guide online implement an approach similar to the editors at the Lean Manufacture Website. From their standpoint, lean manufacturing is an organizational effort by which waste is being reduced with the purpose of creating more value to the final product. In their own words, lean manufacturing is a "systematic approach to…
Blacharski, D., 2010, What is lean manufacturing, Wise Geek, http://www.wisegeek.com/what-is-lean-manufacturing.htm last accessed on September 29, 2010
Deming, W.E., 2000, Out of the crisis, MIT Press, ISBN 0262541157
Hoobs, D.P., 2004, Lean manufacturing implementation: a complete execution manual for any size manufacturer, J. Ross Publishing, ISBN 1932159142
Nilson, K., 2010, Lean manufacturing: adapting as important as adopting, Six Sigma, http://www.isixsigma.com/index.php?option=com_k2&view=item&id=241:lean-manufacturing-adapting-as-important-as-adopting&Itemid=156 last accessed on September 29, 2010
For instance the World Trade Organization reports having "allowed First World countries to raise trade barriers protecting their companies, even as we have served as their forum for insisting that Third World countries lower their trade barriers more and more." (WTO,
The truth is that if richer nations were to open their markets to the LDC countries for increase opportunities of export, generated would be approximately $700 billion in additional trade for developing countries. (UNCTAD Trade and Development Report, 1999; in WTO,
The World Trade Organization relates that no known causal link exists between foreign investment and the reduction of poverty as approximately eighty percent of foreign direct investment in "in the form of mergers and acquisitions, little in the form of productive investment that creates jobs and exports."
WORLD ECONOMY in the LAST TWO DECADES
The work entitled: "The North American Integration Regime and Its Implications for the World…
Sporleder, Thomas L. And Martin, Larry J. (nd) Economic Perspectives on Competitiveness Under WTO, NAFTA, and FTAA.
Abbott, Frederick M. (1999) the North American Integration Regime and Its Implications for the World Trading System - the NAFTA in the WTO System NYU School of law Online available at http://www.jeanmonnetprogram.org/papers/99/990201.html
Answering the Critics: The Myths and Realities of Trade Liberalization. Business Roundtable. Online available at http://trade.businessroundtable.org/trade_basics/answering_critics.html
Trade Liberalization Statistics (2008) World Trade Organization. Online available at http://www.gatt.org/trastat_e.html
It is natural that suppliers forecast their own demand, and where long-term relationships have developed, there is a greater potential for the supplier to make the loan for cost. Furthermore, where Riordan is a major customer for that supplier, there may be a greater willingness to fulfill the order, and put that customer before smaller competing firms in terms of priority. If Riordan are ordering from a firm they do not regularly use, there will not be the same level of forecasting, and a supplier may need to obtain relevant inputs before making a delivery.
The situation of the supply themselves will also be relevant. Smaller organizations are likely to have more cash constraints, and have a lower level of inventory on hand, as inventories tie up capital. This problem may be particularly pertinent where organizations lack financial stability. If the organization is small, the influence of production constraints may…
It is important to ensure that the team for any specific task comprises members who are knowledgeable and posses the required skills needed to carry out the task. Teams should also try to work across organizational boundaries/levels and break down internal barriers and deal with people and issues directly and avoid hidden agendas from both within the group and from external sources.
Prior to selecting team members, the purpose and the reasons for creating the HPWT should be clear to the entire management members deciding on the team creation. Teams without a definite goal and aim, will drift and fail, since no goal and objective is set or a final objective identified. Getting together individuals possessing special skills, talents or expertise in order to build a team is critical. Important skills for a team include: "technical expertise," "problem solving," "decision making," and "interpersonal skills." (Thompson, Aranda, Robbins, & Swenson, 2000)…
Adams, Christopher P. (2002). High Performance Work Systems" in U.S. Manufacturing. Federal Trade Commission,
Berry, L. (1981). The employee as customer. Journal of Retail Banking, 3, 1, pg. 25
Child, John. (2001). Trust -- the fundamental bond in Global Collaboration. Organizational Dynamics, 29, 4, 274-288
Connelly, Julie. (2002). All Together Now. Gallup Management Journal,
There are a variety of techniques utilized for quality improvement, each with its own characteristic role in the completion of the procedure as a whole (Methods for Quality Improvement, 2010).
Product improvement is one of the major methods used. The proposal behind this is that the more goods that are improved, the better they will sell. As time progresses, so do significant features of customer approval. Consumers anticipate the essential alterations to be made and will keep making purchases from a particular corporation if their offers change right along with everything else. Enhancements are therefore made to goods that facilitate them to be prepared with the latest features and basics that will help them persist to sell (Methods for Quality Improvement, 2010).
Process improvement is an additional significant aspect of quality improvement. This technique covers the procedures utilized to carry out everyday business operations. This can be everything from the…
Just in time production (JIT). (n.d.). Retrieved December 4, 2010, from Tutor2U Web site: http://tutor2u.net/business/production/just-in-time.html
Methods for Quality Improvement. (2010). Retrieved December 4, 2010, from Aveta Business Institute Web site: http://www.sixsigmaonline.org/six-sigma-training-certification-information/methods-for-quality-improvement-2.html
Six Sigma. (2010). Retrieved December 4, 2010, from TopBits Web site: http://www.tech-faq.com/six-sigma.html
Statistical Six Sigma Definition. (2010). Retrieved December 4, 2010, from Web site: http://www.isixsigma.com/index.php?option=com_k2&view=item&layout=item&id=1254&Itemid=110
This allows for greater levels of planning and cooperation, and fills in the information gap that currently exists between the factory floor and the rest of the supply chain.
Lexmark provides an example of waste. Recently, the company found itself with more than $1 million in scrap from one lot. Engineers had insufficient information to isolate and fix the problem, so were instead relegated to crisis control. With more accurate data from each step of the operation, the engineers could have been more involved in the process and made improvements along the way before it became a large-scale crisis.
Through web-based business applications, engineers can now examine a defective printer cartridge and then use a thin client to put a hold on the entire batch if necessary, regardless of its physical location (anywhere in the world)
In conclusion, it is apparent that e-business is making its mark on the business…
Alexander, Michael. (2001). Factory Floors Go Online -- Pioneering manufacturers close the final gap in their supply chains. InternetWeek; Manhasset; Mar 12, 2001.
2002) Automotive Design & Production. Cincinnati, 114(8), 70-72.
Steele, a.L. (2001). Cost drivers and other management issues in the JIT supply chain environment. Production and Inventory Management Journal. Alexandria, 42(2), 61-68
Drickhammer, D. (2001, May 21). Peak performance. Industry Week. Cleveland, 250(8) 36-40.
The head office of Dell is at Austin, Texas at the same place where the company was based. Dell Americas is also located in Texas, which is the regional business unit for the United States, Canada and Latin America. The regional headquarters offices of the company are in England, for Europe Middle East and Africa; in Singapore catering to Asia-Pacific; and in Kawasaki, Japan, to serve the market for Japan. The production unit for the manufacture of computers is located in Texas, Tennessee, Brazil, Ireland, Malaysia, and China. Dell Computer Corporation sells products and services meant for Information Technology and the Internet backbone. The proceeds of the company for the previous four quarters were $31.2 billion. (Stories of Entrepreneurs: Michael Dell)
Dell's product, pricing, distribution, and promotion strategies
The Dell product line-up of high performance computer systems comprises of PowerEdge servers, PowerApp server applications, PowerVault storage products,…
Bean, Michael. The Price Strategy Simulator: Anatomy of a Price War Hewlett-Packard / Compaq vs. Dell. Retrieved at http://www.forio.com/pricing20010912.htm . Accessed on 16 October, 2004
Best practice resources enabling lean manufacturing excellence. Retrieved at http://www.superfactory.com/Resources/concepts/demandflow.htm . Accessed on 16 October, 2004
Brief Description of the Product/Service. Retrieved at http://homepages.wmich.edu/~j0karnat/Dell%20Project.htm. Accessed on 16 October, 2004
Build-To-Order Model for Success (Part-II) Retrieved at http://www.themanagementor.com/kuniverse/kmailers_universe/manu_kmailers/scm_build2order2.htm. Accessed on 16 October, 2004
P&G is looking to make the Supplier Environmental Sustainability Scorecard methodology a global standard (P&G, 2010). To support this effort to make the scorecard a global baseline of sustainability measurement, P&G freely distributes Microsoft Excel models of the methodology and baseline analysis tools from their website. The foundations of the methodology can be seen in Figure 2: Procter & Gamble's Supplier Environmental Sustainability Scorecard Methodology. The key metrics measured include energy, emissions, waste, water and an environmental management system performance ranking that can be used for evaluating supplier performance within and across product categories.
P&G has also differentiated this model by rewarding excellent business performance as measured by the key performance indicators (KPIs) first, while also using the methodology to evaluate areas where performance can be improved. The use of incentives and rewards for the top 400 suppliers at P&G have been announced and are actively being applied to supplier…
Jacobs, B., & Jordan, M. (2011). Green is the new color of the supply chain. Area Development Site and Facility Planning, 46(4), 29-31. Retrieved from http://www.areadevelopment.com/logisticsInfrastructure/July2011/collaboration-it-green-supply-chains-33638.shtml
Joseph, D. (2010, Score two for sustainability. Fast Company, (150), 54-54. Retrieved from http://www.fastcompany.com/magazine/150/score-two-for-sustainability.html
Keyes, B.A., & Sykes, B. (2009). Sustainability's triple bottom line. Chief Executive, (243), 43-45,50. Retrieved from http://www.allbusiness.com/environment-natural-resources/pollution-monitoring/13877640-1.html
P&G launches supplier environmental sustainability scorecard. (2010a, May 12). PR Newswire, pp. n/a. Retrieved from http://news.pg.com/press-release/pg-corporate-announcements/pg-launches-supplier-environmental-sustainability-scorecard
Decoding DNA Toyota Production System
Decoding the DNA of the Toyota Production System
In the article Decoding the DNA of the Toyota Production System (Spear, Bowen, 1999) (NOTE: this is OK per Harvard citing conventions to put this citation here, after the article) the authors provide a thorough analysis of what differentiates Toyota from other auto manufacturers specifically, and all manufacturers in general terms. The analysis includes key findings with regard to the Toyota Production System (TPS) lean manufacturing best practices including the findings from Black (2007, p. 3663 which states "lean manufacturing calls for redesigning the mass production system" which is exactly what Toyota did in the development of their TPS. Toyota was also able to instill a very strong reliance on the scientific method of learning and instruction as part of the leadership process while also defining an innate ability of this production system to support the foundational…
Black, J.T. 2007, "Design rules for implementing the Toyota Production System," International Journal of Production Research, vol. 45, no. 16, pp. 3639.
Dyer, J.H. & Nobeoka, K. 2000, "Creating and managing a high-performance knowledge-sharing network: The Toyota case," Strategic Management Journal, vol. 21, no. 3, pp. 345-367.
Liao, N.N.H. 2008, "Performance of Suppliers Logistics in the Toyota Production System in Taiwan," Journal of American Academy of Business, Cambridge, vol. 12, no. 2, pp. 195-200.
Spear, S. & Bowen, H.K. 1999, Decoding the DNA of the Toyota Production System, Boston, United States, Boston.
Gordon and Rutt (2008) attribute the rise of globalization to cheap gas, but that is only part of the story. Cheap gas makes shipping around the world competitive, but does the high cost of doing business in the U.S. relative to other countries. For simple tasks like manufacturing, many countries around the world are capable of leveraging their cheap land and/or cheap labor to produce at a level of quality similar to that of the U.S., but with much lower costs. The cost differential is so great that even the goods are cheaper, even with the additional shipping cost.
Bringing manufacturing back to the U.S. depends on understanding why it left in the first place. The tasks that were offshored, and to a large extent this is still true today, are routine tasks. Grossman (2006) notes that there is a fundamental difference between tasks that are routine and those…
Anderson, J. (2005). Squeeze play. Black Enterprise. Retrieved April 7, 2012 from http://findarticles.com/p/articles/mi_m1365/is_11_35/ai_n14816908/pg_2/
Gordon, B. & Rutt, K. (2008). The short tale. World Trade 100. Retrieved April 7, 2012 from http://www.worldtradewt100.com/articles/the-short-tale
Grossman, G. & Rossi-Hansberg, E. (2006). The rise of offshoring: It's not wine for cloth anymore. Princeton University. Retrieved April 7, 2012 from http://www.princeton.edu/~grossman/TheRiseofOffshoring.pdf
Many businesses in this day and age seek to demonstrate stewardship and resolve to do business within a guideline of corporate social responsibility. In this quest many have chosen to focus on greening their business often including both procurement and manufacture, seeking to reduce the effect of their business on the environment. The different systems approaches that an organization can utilize to demonstrate more effective environmental sustainability are almost as varied as the companies themselves. The utilization of pollution prevention programs depends almost entirely on what it is a company does and what wastes they challenge to control. Additionally companies seek to demonstrate their compliance utilizing various accounting tools that are often made public and become incorporated in their systems designs. These designs will incorporate procurement, logistics, on demand manufacture, i.e. lean manufacture and many other possible systems designs to both demonstrate cost savings and produce a more…
Barrow, C.J. (2005). Environmental Management and Development. London: Routledge.
Eyeontransport, Green Logistics Forum "Download the Green Transportation & Logistics Global Report Now," at http://www.greenlogisticsforum.com/2008/free_report.shtml
Motavalli, J., & Harkinson, J. (2002, September/October). Buying Green: Harnessing the Incredible Procurement Power of Governments, Hospitals, Colleges and America's Biggest Corporations to Protect the Environment. E, 13, 26.
New, S., Green, K., & Morton, B. (2000). 3 Buying the Environment. In The Business of Greening, Fineman, S. (Ed.) (pp. 35-53). London: Routledge.
Use of single version of the truth and single information
Balanced set of strategic metrics (Financial and non-financial).
New methods of cost accounting (ABC, Target Costing).
Internal vs. External Focus (Benchmarking and Self-Assessment).
Process Management and Measures (value delivery).
Stakeholder value measures
Uniform set of measures
Causal relationships between measures across all levels.
Source: Lieberman; (1994; et.al.).
Automotive Industry Analysis
Entering 2007 it is clear that Japanese firms, lead by Toyota, will be at parity with and potentially surpass the Big Three automakers' market share in the U.S. And globally. The Big Three automakers, all in various phases and strategies of restructurings today, will continue to look towards significant cost reduction strategies over time. General Motors and Ford specifically are offering early retirements and incentives to further decrease payroll, pension and healthcare costs. It is anticipated Ford will consider selling Land over, as the sales of Austin Martin is pending.…
Bergman, Rhonda. Electronic medical record makes life simpler for clinic physicians. Information Management. Hospitals and Health Networks. July 20, 1993. Page 60.
Cohen, W.M. & D.A. Levinthal (1990). "Absorptive Capacity: A New Perspective on Learning and Innovation." Administrative Science Quarterly, 35, 128-152.
Columbus and Murphy. Re-orienting your knowledge and content management strategies. AMR Research Report., AMR Research.
October 31, 2002
Alex is facing and evaluate different tools to arrive at the solutions. Moreover, the paper evaluates the newer tools such as lean, six sigma, and the internet to arrive at the solution the problem that Alex is facing. The paper provides the overview of the problems that Alex ogo is asked to solve within three months.
The focus of this paper centers on Alex ogo, a plant manager of the Uniware, a division of Unico. Alex's meeting with his boss, Bill Peach, reveals that the company is facing challenges and Alex is given an ultimatum of three months to improve the performances of the plants. However, Alex is unable to use available outside tools such as surveys and consultant because of the limited time. With narrow channel to follow, Alex remembered Jonah whom he knew in its previous workplace. With the current company's situation, Alex decided to have a conversation…
Resources Planning) technologies to solve the problem. The ERP software assists organization to solve complex problem in planning, manufacturing, inventory, cost planning, and service delivery. (Sheilds, 2005). Essentially, ERP assists organizations to track business resource such as production capacity, and raw materials. Using the ERP, Alex would have facilitated information flow between the business functions. Moreover, ERP would have assisted Alex to deliver error-free in production system, which would have quickly solved the problem that Alex was facing.
This paper evaluates the challenges that Alex is facing within his workplace. Alex is given an assignment to turn inefficient plant to efficient working plant within three months. Alex uses the Goal model to arrive at the solution by identifying that all new orders that create bottleneck for the plant. The paper also identifies Lean manufacturing, Six-Sigma, and ERP as effective solutions to the problem. Evaluation of the paper reveals that Alex did not make use of these newer tools to arrive at the solution and integrating these new tools would have assisted Alex to effective arrive at the solutions.
Goldratt, E.M. (2004). The Goal: A Process of Ongoing Improvement. (Third Edition) Great Barrington, MA: North River Press
Supply Chain Strategy
When it comes to companies sharing business relationships, and occasionally shareholdings, as well, a Keiretsu network is often the best way to integrate and manage that group of companies (Jacoby, 2009). In that way, the relationship between the businesses becomes a partnership instead of only that of buyer-seller (Jacoby, 2009). There are many long-term benefits of this type of network, and these benefits could be carried over to the new company that builds power tools. The Keiretsu network will allow strong relationships to be created with suppliers, and that will help lower the costs of manufacturing (Heizer & ender, 2010; Nagurney, 2006).
These lowered costs are very important, as is the lean manufacturing that can be created through proper coordination with various suppliers (Heizer & ender, 2010). However, there is some risk to the Keiretsu network in that the closeness of all the companies may make shopping…
Heizer, J. & Render, B. (2010). Operations management (10th ed). NY: Prentice Hall.
Jacoby, D. (2009). Guide to supply chain management: How getting it right boosts corporate performance. The Economist Books (1st ed.). NY: Bloomberg Press.
Nagurney, A. (2006). Supply chain network economics: Dynamics of prices, flows, and profits. Cheltenham, UK: Edward Elgar.
Oliver, R.K. & Webber, M.D. (1992) . Supply-chain management: Logistics catches up with strategy. In Christopher, M. Logistics: The strategic issues. London: Chapman Hall. pp. 63 -- 75.
Sulzer Metco/Sulzer Eldim Division
Sulzer Eldim is a division of Sulzer Metco, a company under the Sulzer Metaplas umbrella. The company is a leader in the aerospace and industrial gas turbine industries, having developed long-term relationships with OEM manufacturers. Their technological, financial, and human resources have facilitated a long history of success. ecently, they have implemented a cellular manufacturing strategy, with a Zero Defects policy, which has greatly increased efficiency. They are now looking to implement a similar strategy across other departments. Their concerns regarding reduced efficiencies for low-volume orders are invalid. In addition, the concerns regarding reduced autonomy within divisions, will simply be transferred autonomy to core groups, as the semiautonomous manufacturing cells currently experience. A timeline for implementation of this strategy is provided.
For several decades, Sulzer Metaplas GmbH has been a leader in the coating services and thin film equipment industry. Sulzer Metaplas was founded under…
'About us,' 2010, Sulzer Metco, [Online], Retrieved 18 August 2011, from: http://thinfilm.sulzermetco.com/l_ueber_uns_gb.html .
'Cellular manufacturing,' Sulzer Metco, [Online], Retrieved 31 August 2011, from
In the case of Toyota they have focused on supply chain integration, collaboration and collaborative forecasting and replenishment (CPF) workflows. What emerges from this SWOT analysis from a competitive analysis standpoint is that while Fiat was concentrating on product-driven strategies for differentiation, its competitors had embraced and were well on their way to making processes their core competitive advantage, especially those augmenting personal productivity (Porter, 2008).
Fiat's opportunities however are significant. There is growing truck market demand, increasing demand for manufacturing equipment in BIC nations and growing need fro construction vehicles in China and India. As Tata Motors has worked to dominate the passenger car market in India, there is no company focused on construction vehicle development. For Fiat, this presents a unique and highly differentiated opportunity.
The threats Fiat faces are comparable to many other global auto manufacturers, including the continued contraction of credit and therefore the entire auto…
Markus C. Becker, and Francesco Zirpoli. 2003. Knowledge integration in new product development: The FIAT Autocase. International Journal of Automotive Technology and Management 3, no. 1,2, (January 1): 30-46.
Giuseppe Calabrese. 2000. Fiat Auto hands the wheel to its employees. Human Resource Management International Digest 8, no. 1, (January 1): 13-15.
Mauro Caputo and Francesco Zirpoli. 2001. A new organization for supplier involvement in vehicle design: The Italian automotive industry case. International Journal of Automotive Technology and Management 1, no. 2,3, (January 1): 301-320.
Jeffrey H. Dyer, and Kentaro Nobeoka. 2000. Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal: Special Issue: Strategic Networks 21, no. 3, (March 1): 345-367.
While their backgrounds and personal beliefs are very different, they never take each other for granted. They are encouraged to express their thoughts and ideas and to treat each other with dignity.
Service to their Customers -- customers are the reason that they are in business, so they believe that they should treat them that way. They offer quality merchandise at the lowest prices, and do it with the best customer service possible. They look for every opportunity where they can exceed their customers' expectations. They believed that this is when they are at their very best.
Striving for Excellence -- They are proud of their accomplishments but are never satisfied. They constantly reach further to bring new ideas and goals to life. They model themselves after Sam Walton, who was never satisfied until prices were as low as they could be. They believe that a product's quality is as…
3 Basic Beliefs & Values. (2009). Retrieved September 29, 2009, form Wal-Mart Web site:
Crosby, Tim. (2009). Retrieved September 29, 2009, from How stuff works Web site:
Figure 1: Analysis of the Johnson & Johnson Value Chain
Sources: (Atherton, Kleiner, 1998) (Johnson & Johnson Investor Relations, 2012)
Variability in capacity planning and constraint-based modeling of demand has also led Johnson & Johnson to adopt and standardize on ean Six Sigma as part of its quality management and constraint-based planning strategies (Hunter, Schmitt, 1999). Based on an analysis of their annual reports and filings with the Securities and Exchange (SEC) Commission and (Johnson & Johnson Investor Relations, 2012) the following analysis of the lean manufacturing, Six Sigma and Design for Six Sigma initiatives in the company are profiled. Taken together these form the Johnson & Johnson Enterprise Compliance and Quality Management (ECQM) framework the company relies on for ensuring speed, accuracy, consistency and customer-focused innovation throughout its value chain processes. Figure 2 provides an analysis of how Johnson & Johnson has organized these initiatives as a three-phased approach…
Larsen, R.S. (1993). A prescription for U.S. health care. Strategic Finance, 75(5), 35-35.
Slobodow, B., Abdullah, O., & Babuschak, W.C. (2008). When supplier partnerships aren't. MIT Sloan Management Review, 49(2), 77-83.
Williams, S. (2004). Delivering strategic business value. Strategic Finance, 86(2), 40-48.
Management 4 course book written Chuck William scenario assignment provided professor. Decision Making Case Assignment #2 - What Would You Do? Management Decision Making Case #2 Interface, Inc.
Interface, Inc. -- Implementing Sustainability
Which level of social responsibility best describes the company's current operations?
At present, the company is operating on a totally unsustainable model -- it generates waste in the production of the carpets it sells and the carpet materials are non-recyclable and simply fill up landfills. The company's business is "turning petrochemicals into textiles" which means using petroleum "which took millions of years to make, [and] is irreplaceable" and turning it into carpet which will not decompose and yet which is usually discarded within ten years (Fishman 1998). The factories which produce the carpets also generate pollutants.
Q2. What environmental vision do you communicate to your task force? In other words, what social responsiveness strategy will you adopt…
Climate. (2012). Interface Sustainability. Retrieved:
Fishman, Charles. (1998). Sustainable growth: Interface, Inc. Fast Company. Retrieved:
Financial resources are also crucial to the procurement of more equipment to enhance the process of service delivery at Talent Dry-Cleaning Company. The equipment would allow the company to reduce the number of turnaround to lower than the three to four days. This makes financial resources critical to the provision of services by the company hence the adoption of the three or four-day turnaround. The manual ironing system and insufficient financial systems would not support the two or one-day turnaround (Plenert, 2009).
The company has the capacity to reduce the turnaround to two or less by focusing on the crucial aspects of the organization. The company needs to address the shortcomings such as financial resources and plant utilization in order to facilitate reduction of the turnaround to two or one. This would allow the company to increase the number of daily drops in relation to garments thus improvement in the…
Ruffa, S.A. (2008). Going lean: How the best companies apply lean manufacturing principles to shatter uncertainty, drive innovation, and maximize profits. New York: American
Drew, J., McCallum, B., & Roggenhofer, S. (2004). Journey to lean: Making operational change stick. New York: Palgrave Macmillan.
Plenert, G., Dey, R., & Banerji, a. (2009). Lean management principles for Information technology. Boca Raton FL: CRC Press.
These dealers have high levels of credibility with their customers due to their backgrounds, yet do not have the experience or interest in learning the depths of a quoting system. Cincom has created an quoting, pricing and product configuration system that allows for uploading of images directly from smartphones as a result.
Another factor is the optimization of pricing (Bilek, 2010) and the use of the Cincom Acquire suite of applications for creating more effective customer loyalty programs within dealer channels. There are several manufacturers now using the Acquire platform to complete pricing loyalty programs as well. In conjunction with all of these factors is the streamlining of the product configuration system within Acquire, to allow for constraint-based optimization of product models, a dominant factor in the growth of lean manufacturing today (Banaszak, Zaremba, & Muszy-ski, 2009). The pricing optimization, product configuration and constraint-based modeling aspects of Cincom Acquire have…
Ahmed, D., Sundaram, D., & Piramuthu, S. (2010). Knowledge-based scenario management - Process and support. Decision Support Systems, 49(4), 507.
Banaszak, Z., Zaremba, M., & Muszy-ski, W.. (2009). Constraint programming for project-driven manufacturing. International Journal of Production Economics, 120(2), 463.
Bilek, G.. (2010). The Value of Information Sharing in a Build-to-Order Supply Chain. The Business Review, Cambridge, 15(1), 131-136.
The efficiency gains from PM and PR must be oriented towards a specific strategic objective to be effective (Attaran, 2004).
While processes are often continually monitored to see how they can be made more efficient to save on costs, it is has been shown that re-orienting processes to be more customer-centric can transform entire companies. The concept of a Demand-Driven Supply Network (DDSN) (O'Marah, 2004) specifically focuses on this level and focus of interprocess integration and re-orientation. As with the Toyota Production System (TPS) the concept of a DDSN in the context of any organization is to create higher levels of transparency and trust through shared process ownership. From this context both the Toyota Production System and DDSN model share the attribute of collaborative workflows that ensure higher levels of adoption and higher levels of accuracy as well (O'Marah, 2004).
Like the Toyota Production System, DDSNs are capable of becoming…
AMR Research (2003) -- Configuration is the Heart of Customer Fulfillment for Complex Product Manufacturers. AMR Research Report. Monday March 31, 2003.
Mohsen Attaran. (2004). Exploring the relationship between information technology and business process reengineering. Information & Management, 41(5), 585-596.
Ganesh D. Bhatt. (2000). Exploring the relationship between information technology, infrastructure and business process re-engineering. Business Process Management Journal, 6(2), 139.
Marianne Broadbent, Peter Weill, Don St. Clair. (1999). The implications of information technology infrastructure for business process redesign. MIS Quarterly, 23(2), 159-182.
The demand pulls the manufacturing processes, rather than the supply.
JIT has required a new approach to accounting, as "traditional and standard costing systems track costs as products pass from raw materials, to work in progress, to finished goods, and finally to sales" (Johnson 2004). JIT has resulted in the creation of so-called "backflush accounting' which focuses on the output of an organization and then works "backwards" when allocating costs between cost of goods sold and the cost of available inventories (Johnson 2004).
Product vs. period classification
Product costs are the relatively stable material costs that are involved in making the product, such as input materials, labor, and overhead (Product cost vs. period cost. (2010). Accounting for Management). Period costs include the more variable and less predicable costs of manufacturing such as administrative costs and marketing and sales costs.
Value chain analysis, first popularized by Michael Porter, strives…
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Gibson, Scott. (2001). LIFO vs. FIFO: a return to the basics. RMA Journal.
Over time, GM put a variety of learning mechanisms in place and a systematic approach to alliance learning and knowledge transfer emerged. These mechanisms include managerial assignments to NUMMI, visits and tours to NUMMI, a technical liaison office for managing learning activities, leadership commitment and involvement in the learning process, and a learning network to articulate and spread the knowledge." (Inkpen 2005-page 115)
The absence of these mechanisms early in the alliance was a key factor affecting how the alliance developed. Many of the individuals in management at GM throughout the early years of the alliance felt that it was a waste of time, and that environment did not change until the early 1990's when Jack Smith (one of the individuals responsible for the initial agreement between Toyota and GM) achieved a high enough level at GM to begin to implement some of the changes spoken about earlier in this…
Maxwell, John C., (2003) Relationships 101. Nashville: Thomas Nelson Publishers
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Strategic Alliance Definition (2005)
http://www.investorwords.com/4772/strategic_alliance.html , Accessed October 20, 2006
Businesses strive to influence product and service differentiation -- fully aware that the phenomenon occurs in the mind of the customer. Additive to differentiation of brands, products, and services, retailers are increasingly focused on differentiation of their stores as shopper destinations (Flint, 2010). Indeed, differentiation is a key element in the microbrewery industry, in which the customers' capacity for making product distinctions is foundational to competitive strategy. As a case in point, this paper will discuss the relation between differentiation and service-supply chain management in the microbrewery industry.
Service-dominant logic. As businesses move away from a product-focused to a customer-centric orientation, a service dominant logic has developed into a throughline (Flint, 2010). That is to say that, upon close examination of business configurations, service and servicing emerge as primary components of the value proposition -- fundamental components of the value chain. For their part, supply chain managers (SCM)…
Clarke, J. (2012, May). Who is the new beer consumer? Beverage Media Group. Retrieved http://www.beveragemedia.com/index.php/2012/05/who-is-the-new-beer-consumer-brewers-ready-to-say-ihola-and-more-to-expand-reach/
Crammer, L.J. & Wegfahrt, A.M., (2006). Ranked #9 Proximity to Major Markets. Area Development Site and Facility Planning; Easton, 41(5).
Cohen, M.A., Agrawal, N., Agrawal, V., (2006). Achieving Breakthrough Service Delivery Through Dynamic Asset Deployment Strategies Interfaces. Linthicum: 36(3), 259-273.
Flint, D.J. (2010, November 8). The Service Side of Supply Chain Management.
Replicating the performance of a complex system through the use of systems simulation provides invaluable insight into the constraints, workflows and processes that determine its optimal level of performance. The use of systems simulation in oil refineries, process manufacturing, discrete and complex manufacturing including constraint-based modeling of customized equipment all provide valuable insights into how to continually improve process performance. The use of systems simulation is becoming commonplace in determining the optimal performance of individual and groups of machines combined to complete complex manufacturing and process tasks .
Analysis of Systems Simulation Scenarios
From process-centric systems that are involved in oil refining and process-related goods to the reliance on systems simulation to continually improve lean manufacturing processes across a discrete manufacturer's production floor, all share a series of common attributes. These common attributes include the modeling of specific constraints that are often dynamic and in turn…
 Andradottir S., Optimization of transient and steady-state behavior of discrete event systems, Management Science, 42, 717-737, 1996.
 R.P. Schulz. "Synchronous Machine Modeling. Symposium on Adequency and Philosophy of Modeling System Dynamic Performance." In IEEE Pub. 75 CH
ole-based EP systems are critical for the siloed, highly inefficient architectures of legacy EP systems to be made more relevant, contribute greater financial performance, and lead to higher levels of overall customer satisfaction.
c. Purpose of the study
The purpose the study is evaluate how enterprises who adopt role-based EP system implementations are able to attain higher levels of financial and operations-based performance vs. those that rely on silo-based, more functionally defined EP structures. ole-based EP systems have been proven to lead to greater order accuracy, velocity and customer satisfaction as a result. The ability to gain greater visibility throughout supply chains, better manage pricing, discounts, implement and maintain contract management systems, and also deliver consistently high customer service have all been attributed to role-based EP systems. Conversely siloed EP systems that are managed strictly to functional areas have been shown to severely limit the ability of enterprises to be…
Aberdeen Research (2005) -- New Product Development: Profiting from Innovation. Aberdeen Research. Boston, MA. December 2005
Abrams and Andrews 2005, Management Update: Client Issues for Service-Oriented Business Applications, 2005. Gartner Group. 20 July 2005.
Aimi, G. (2005).- AMR Research (2005, October 25). Retailers Save Money by Controlling in-Bound Logistics. (Alert). Boston, MA
Akkermans, H., & van Helden, K. 2002. Vicious and virtuous cycles in ERP
falling into a functional rut. This is exemplified in the approach Kuiper Leda also takes with regard to optimizing lead times throughout the productions scheduling and fulfillment processes as well.
In summary, Kuiper Leda has many of the foundational processes, systems and roles in place to enable an efficient demand-driven supply chain network (Barrett, 2007), including the ability to synchronize suppliers, inbound quality management and inspection, production scheduling, manufacturing, and fulfillment. The maturation from MP to EP is evident in the same factors which illustrate how the company is becoming more adept at accomplishing its lean manufacturing objectives, beginning with attainment of JIT. Outsourcing excess demand for the ECUs also indicates a relatively high level of process maturity, knowledge management (Ferdows, 2006) and quality management expertise as well (Yamazaki, 2003). Kuiper Leda shows the potential to scale into more collaborative processes with their suppliers, opening up the opportunity to create…
Jane Barrett. (2007, November). Demand-Driven is an Operational Strategy. Industrial Management, 49(6), 14-19,5.
R Bhagwat, MK Sharma. (2007). Performance measurement of supply chain management using the analytical hierarchy process. Production Planning & Control, 18(8), 666.
Anjan Chatterjee, Aurobind Satpathy, Neal Ganguli, TV Kumaresh. (2002). Collaboration: Key to world class quality. Quality, 41(6), 50-53.
Debra Hofman. (2004, September). The Hierarchy of Supply Chain Metrics, Supply Chain Management Review, 8(6), 28-37.
The automotive industry segment within the economy of the United States is a fundamental employer as well as a key donor of the American Gross National Product. The automotive industry segment is one that faces intense and comprehensive competition not only locally but also internationally. In recent times, the automotive industry has experienced deterioration in the revenues and profits generated and a decline in the market share as well as a lack of major employment opportunities. Within this similar timespan, the automotive industry has experienced major problems owing to the increases in the level of importation of vehicles and their corresponding parts from Europe and Asia as they have attained a greater market share as well as sales volumes. The purpose of this report to is to examine the different strategies and tactics employed by General Motors and Toyota Motor Corporation. These two companies are some of the biggest…