Lean production
Lauri Koskela, a senior research scientist,
VTT Building and Transport, developed the lean production
methodology. He opined that two key concepts form lean production,
Just In Time (JIT) and Total Quality Control (TQC). It is
from these concepts that related fields such as benchmarking,
continuous improvement, and supply chain have emerged. Moreover,
Koskela coined the phrase 'the new production philosophy'
to distinguish lean production thinking from traditional
thinking which he called 'the conventional production philosophy'.
The new production philosophy includes the
idea of documenting flow and value elements besides conversion
activities in a production process. Flow as described by
Koskela means production activities between conversions
that exist in all production systems. Activities such as
waiting, inspecting and moving are different from conversions
as they do not add value to the output but exist in all
production processes. In this context value refers to meeting
customers' requirements.
Lean production is a general term used to describe the concept
of the lean production approach. Authors agree that lean
production is a general term rather than a specific component
of the broader thought while accepting that there is some
assumption on this point.
Lean production versus conventional production
The conventional production methodology implies,
handling the production process by managing the conversion
of an input to an output. Lean production harmonises this
methodology. The methodology of lean production is to manage
the production process by managing the conversion of the
input to output, the manner in which input flows through
conversion to the output, and maximising the value of the
output in the most effective way. Change in methodology
takes place through the introduction of the flow and value
elements for managements' concern on an equivalent par ?to
input, conversion and output. Thus in the earlier management
methods of input, conversion and output management consisted
of flow management and management of value under the lean
production methodology.
The assumptions of efficiency and effectiveness
innate in the conventional methodology are adjusted under
the lean production methodology. Those relevant to this
discussion are considered below:
There have been two reasons for change in
production management. Firstly, under the conventional methodology
it has been found that inappropriate control mechanisms
and performance improvement efforts have been in place.
Secondly, quality is poorly understood and addressed under
the conventional methodology. Both these issues relate to
poor effectiveness and efficiency residing in the production
process and stem from an inadequate understanding of the
production process.
The management methodology of lean production
is based on the new production philosophy. Given the benefits
that have accrued to the automotive manufacturing industries,
it could fairly be argued that the existing conceptualisation
was too simplistic. The solution of lean production was
to augment the existing approach and make it more appropriate
for contemporary and complex production systems.
