Avoiding the Misconceptions of Lean Production

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This post was last edited by *aojiaoya0546 on 2015-11-25 15:12. Lean Production, abbreviated as “Lean,” is a management philosophy derived from the Toyota Production System. Many companies have misconceptions regarding lean production management, which requires managers to think carefully and strive to improve it. Myth 1: Blindly pursuing flow production. So-called flow production means that only one workpiece is in motion at each processing stage, ensuring that the transformation process from raw material to finished product remains in a continuous state without any delays, accumulations, or bottlenecks. It is a production management approach that aims to reduce the amount of work-in-progress between stages to zero. By pursuing the \"one flow\" approach, various problems, wastes, and contradictions are brought to light, forcing people to proactively address the issues present on site, thereby enabling everyone to utilize their talents to the fullest, making the best use of resources, and making optimal use of time. It also results in a low level of work-in-progress inventory, which helps to ensure product quality. However, flow production has obvious prerequisites or limitations. Firstly, the production line should be arranged according to the product category principle, and ideally in a U-shaped layout. If many companies do not have suitable space, this will significantly reduce the efficiency of their production processes. Secondly, flow production must proceed at a set rhythm; if the production rhythm of a certain piece of equipment is too slow, an additional number of such devices must be added, which actually increases capital costs during periods when capacity is unused ； Again, for certain types of products, especially those that are small accessories, when large batches are produced, both manual and mechanical processing methods see their efficiency reduced due to the time required to change tools ； Finally, even if the operation of a stream is successfully carried out, many employees may feel fatigued and bored due to its continuous operation; human-centered management tends to give operators some time for waiting and reflection. Myth 2: Blindly pursuing zero inventory. The concept of zero inventory management does not mean that the quantity of certain items stored in warehouses is actually zero; rather, it involves minimizing inventory levels by implementing specific inventory control strategies. The goal of achieving zero inventory management is to reduce capital tied up and improve the economic efficiency of logistics operations. However, in actual corporate production, zero inventory management is often a theoretically sound concept; in most cases, it serves as an excuse for manufacturers to delay the payment cycles to their suppliers. The author believes that when a company considers implementing zero-inventory management, it is essential to ensure that production materials are supplied to the production lines in a timely manner, and that suppliers can also be aware of the material consumption levels of the main manufacturer so as to deliver supplies promptly. Although current ERP systems facilitate information transmission, the preparation of materials, logistics, and inspection still require time – this is a factor that production managers must take into account. More importantly, companies must connect with their customers at the beginning of the value chain to achieve accurate order planning. When a company’s marketing department has an effective customer relationship management system and relatively accurate market forecasts, having a certain level of inventory stock is actually better than adopting a zero-inventory approach, as those who act first in the market can seize the opportunities that arise, especially in an era where faster competitors outpace slower ones. Myth 3: Lean management that is implemented on a widespread scale but remains superficial. The lean production system is actually a comprehensive system composed of various management elements such as workshop management, quality management, process management, on-site management, and logistics and supply chain management. Many companies, when implementing lean management, tend to choose a comprehensive approach. However, implementing lean production is a transformation of the production method; it cannot be achieved simply through a few meetings or some training sessions. Without several years of persistent effort and the targeted breakthrough of various aspects, it is almost impossible for a company to develop a standardized lean management platform. Companies must, through sustained on-site management, change employees’ entrenched incorrect attitudes and behaviors in order to promote balance in production and manufacturing ； Companies also need to use models and methods such as ergonomic analysis and motion economy analysis to optimize bottleneck tasks, and extend this to the optimization of logistics management both within and outside the factory ； Furthermore, the implementation of ERP must be aligned with the material flow system, and a vertical silo effect should be avoided in the integration with the supply chain. All of these aspects of lean production management require thorough implementation, followed by gradual refinement over time. Myth 4: Forgetting that people are the foundation of lean production. The establishment of a lean production system follows an ascending logic of: changing mindsets, standardizing the environment, standardizing behaviors, achieving performance goals, and raising employees’ awareness. Many companies, in the process of implementing lean practices, often fail to understand the proper sequence of steps, are unable to proceed methodically, and even end up causing their employees to lose confidence. The core of building a lean production system is team development at the workgroup level; its essence lies in creating workgroup management teams that are capable of self-management and continuously strive for excellence in lean practices. Lean production also emphasizes viewing employees’ wisdom and creativity as valuable assets for the company and as the driving force for its future development. What goes hand in hand with this is ensuring that employees feel the benefits to the company brought about by lean management, while also combining this with performance incentives for the employees themselves, thus creating a positive cycle. In this way, the ultimate goal of the so-called \"unity of man and machine\" is achieved. Therefore, in lean manufacturing enterprises, employees are given great authority, reflecting the principle that they are the owners of the company, and the organizational structure is inclined to be flatter. In this sense, lean production should be defined as a completely new corporate culture, one that serves as a management philosophy embedded in every aspect of production.