Category: Business and Management
I have been extremely busy with my full time job lately. I had to go on visits to contract manufacturers that manufacture apparel products for my company that in turn exports them to European...
The current economic crisis has brought a downturn in almost every industry the world over. First the USA and its banking companies came across the subprime lending crisis leading to the fall of some leading financial institutions that had gone deep into the lending space without taking all the necessary precautions and becoming too liberal to lure the customers from the competitors. Then came the fall of an insurance giant. This had repercussions throughout the banking industry across Europe and Asia too. This was also felt by the banking industry in India.
What ever may happen in Toyota’s case, one thing is sure that minimum inventory is the way to go and that is one of the basic things Lean Management comprises of. Hence IT is time to be LEAN during the MEAN Economic crisis.
This term ‘Lean Management’ was coined after a study conducted by the MIT research team as it found out that the TPS was based on the basic principle of taking maximum output by wasting the minimum resources. So, Lean Management basically means reducing waste from all the walks of work involved in the work place.
Given the records of the Indian Manufacturing Industry, their resource utilization has always been among the lowest worldwide. This is the primary reason for the Indian Manufacturing Industry being left behind the competition in many sectors although the quality of products are at par with others in many cases.
Lean Manufacturing is a manufacturing system and philosophy that was originally developed by Toyota and is now used by many manufacturers throughout the world. At Toyota the system is referred to as the Toyota Production System very well described in the world famous New York Times best seller – ‘The Toyota Way’.
The term Lean is very apt because in Lean Manufacturing the emphasis is to cut out the “fat” or waste in the manufacturing process. Waste is defined as anything that does not add value to the customer. It could also be defined as anything the customer is unwilling to pay for.